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The fundamental government are not the only problem. Companies indigence to cultivate cordial relations with local potentates, too. Gucci T shirts Often the provincial governor’s say-so is needed to obtain land, employment licences and a stack of other bits of paper a firm needs to operate. Local party bosses tend to favour local Chinese firms—another reason why tie-ups can be helpful.
Another big challenge for Western multinationals is that their Chinese rivals are catching up fast. “Domestic players will be ferocious competitors,” predicts Derek Sulger at Lunar Capital, a private-equity firm in Shanghai.
For now, Western firms enjoy a lucrative reputation for quality and safety. Lead pollution from local tinfoil-making workshops in 

Lebron James Shoes  Zhejiang province recently injured 103 children and scores of adults. Chinese consumers are as averse as anyone else to being poisoned, so such incidents persuade many to buy Western brands. But domestic companies can make things much more cheaply, and their quality is improving.

Some Western consumer-goods firms that are also-rans at home do surprisingly well in China. Back in America, Kentucky Fried Chicken (KFC, part of  Nike Shox NZ   Yum! Brands) is dwarfed by McDonald’s. In China it has 3,300 restaurants—more than three times as many as its rival—and opens a new one each day. The secret of its popularity is local managers with the freedom to adapt KFC’s offerings to the Chinese palate. That means fewer bargain buckets of wings and more congee, a rice porridge with pork, pickles or mushrooms.
Other Western firms can’t cope. Home Depot, an American DIY chain, is retreating from China after trying for years to persuade middle-class Chinese people to decorate their own homes.
Home Depot “didn’t understand the market for home decoration,” says Ben Cavender at China Market Research in Shanghai. Chinese people typically have no garages in which to store tools. And there are legions of poor people  Cheap Nikes  who will paint and decorate for low wages. The middle classes tend to hire decoration companies, which subcontract to whichever construction firm pays the best kickbacks. At the beginning of this year Home Depot closed its last shop in Beijing. It now has only seven stores on the Chinese mainland.