Broadly speaking there are two types of Chinese companies. there is one type which is owned by the state, so state-owned enterprises, and then there's another type that is privately owned, so owned by, normally, private entrepreneurs. The way that they operate is quite different.

The state owned enterprises, the most successful state owned are typically large enterprises. They operate in industries that are somewhat protected, if not entirely, protected by the Chinese government, so they can be large and quite powerful in their own right. I'm talking about companies in, for example, telecommunications and energy, and utilities and so on and so forth, and banks and so on. And these are some of the largest enterprises in China, but they're SOEs, they're state-owned enterprises, so they have to follow a certain way that the Chinese state dictates to them.

The other type, the privately owned companies are, in my opinion, much more interesting, because they are… Many of them actually start with nothing, they start as very small companies, but the very successful, privately owned companies, they have been growing very fast. And, typically, they are led by one entrepreneur, or a small group of entrepreneurs, and these people are, typically, they are very flexible, they are very ambitious, they are quite visionary, typically, and they usually make decisions very fast, because they see the market, both in China, as well as, the relevant market outside of China moving very fast, so, they themselves, are very fast in making decisions.

They are a believer in a lot of experimentation. They don't necessarily want to get everything sort of precise and right. They'd much rather try something, if it's 80% right, try something and see how the market responds and then adapt. So, they work at a rhythm that is much faster than the usual competitor in western multinationals. Whereas typical multinationals would typically operate in this manner, the Chinese would typically operate in a much faster rhythm. So, by the time the multinationals are ready to make decisions, the Chinese have already made cycles of decisions and have learned a great deal through their experimentation. So it's very dynamic, but we've seen more and more Chinese companies who are able to leverage this kind of model to grow very fast and more and more of them have become bonafide competitors to the multinationals. And the multinationals actually have found it, in many cases, very surprising to see this kind of new competitor which operates in a very different way than the traditional multinational competitor.