The times have changed

Chinese companies are more competitive than ever – and some MNCs just can't cut it.

That's according to Jiang Xiaojuan – a well-respected technocrat who served as a deputy secretary-general of the State Council from 2011 to 2018.

At an economic forum Friday, Jiang argued that the narrative that MNCs are pulling out of China due to the policy and regulatory challenges is misleading.

• What's really driving MNCs to leave China is the fact that, in many cases, they are getting outcompeted by Chinese companies.

Jiang was blunt:

• “It has become very difficult for many multinational companies to compete with our leading companies in China.”

Jiang had some advice for officials. While noting that that improving the business environment to attract MNCs is important, she said that policymakers shouldn't go out of their way to appease foreign companies.

Get smart: Jiang's just saying out loud what officials say behind closed doors.

Get smarter: For MNCs, success in China relies more than ever on figuring out their unique value proposition in the market.

• A nuanced understanding of China's strategic goals and evolving policy is essential in an environment where the lines of competition and collaboration are being redrawn.