In China, Western firms keep secrets close

Western companies are changing the way they do business in China, as they become more focused on protecting their intellectual property. For years, part of the cost of entry to China in certain industries has been pairing up with a Chinese company to form a joint venture, which meant that Western companies had to share their technology or intellectual property. Concerns about the Chinese partners abusing these trade secretes are growing. Companies "are definitely much more careful, and they are not just willy-nilly going and making partnerships in China," says Mark Gottfredson, a senior partner at Bain & Company. "From our advising clients perspective, the whole thing has changed. It's no longer about getting into China, it's about how you do China."