The China Business Conundrum: Lessons from Silicon Valley Bank’s China Experiment

In the inaugural episode of "The Art of Dealing with China," Ken Wilcox, former CEO and chairman of Silicon Valley Bank, shares his experiences and insights on navigating the complexities of doing business in China. He recounts Silicon Valley Bank's journey to establish a joint venture in China, highlighting the challenges and misjudgments encountered along the way, including navigating bureaucratic hurdles and cultural differences. Wilcox introduces the concept of the "arc" experienced by foreign companies in China—an initial rise in optimism followed by a peak and subsequent decline—illustrated by his own experiences with government officials and licensing processes. He emphasizes the importance of understanding China's political system, building relationships across various socioeconomic groups, and recognizing the evolving dynamics of China's business and political environment, particularly under Xi Jinping's leadership. Wilcox also advises executives to prepare thoroughly, learn the Chinese negotiation style, and identify their leverage when engaging with Chinese counterparts.