My friend asked me a question:
It is stupid to ignore China market for any startup. What is your suggest for startups to enter China market?
My quick answer is: Don’t.
My alternative suggestion is, enter China market by putting your headquarter in China.
I have many successful entrepreneur friends in the Silicon Valley, who don’t have China presence yet (and I suggested them not to do it), and I also know some great American in Shanghai who have amazing business in China. In contrary, I also know many of my local friends who were laid off after working for the Shanghai branch offices for startups in US, or Europe.
Why is that?
Startups are constrained by resources. With resources, I mean in terms of people and money. It is NOT constrained by market size. Either US or China is big enough, way to big for a startup to explore. Concentrate in one market, and setup the model before expansion.
The more important question to ask is, whether you want to start up the company in US, or in China.