Distinctive Business Models of Chinese Software

For the vendor side — product standardization: Make clients believe the software is baked into the chip or circuit board, making change costs seem prohibitively high so they’re reluctant to request customization. It also keeps their IT department from casually tweaking software configurations, ensuring the system runs stably.

For the client side — executive visits: There’s a tangible, touchable product that feels like high-tech, which can be used to justify approvals for tax rebates, incentives, and subsidies.

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