You are right. There are several main reasons why US-based firms fail in China market.
1. Government regulation: China government and other centralized power governments such as Vietnam, and Russia always try to keep their eyes on Internet activities, audit informations on the Internet. These government's activities may put automated systems (algorithms) of US-based firms in difficult. It seem to violate the notion of free speech that US-based firms follow.
2. Illegal activities of these local firms: Does any US-based firm dare to share illegal documents, videos on their platform? This may be a big difference between US-based companies and Chinese's ones. Another aspect is under-table money, US companies are more more and more strictly regulated by law that prohibits them from giving under table money to local governors. There is ton of unethical ways that Chine firms can do to beat you.
3. Localization
There is vast, majority people in developing countries who can't speak English;therefore, blocking them from approach US products. It turns to be a great opportunities copy-cat model for Chinese firms.
4. In some countries such as China, citizens more and more pride of their nation. Chinese are great in this aspect since they usually are member of various social guilds that respect and help each other. This tendency is in contrast to US culture that promotes individual. Thus, Chinese tend to use local products than US's one.
5. A firm in centralized governments such as China not only act as a business that seeks for profit but also act as a political tool for government. So, they receive a lot of support from government such as infrastructure, money, ...
For those above reasons, I totally think that Chinese firms are in great advantage to the competition in compare to US's ones. What I put in my consideration is how these Chinese firms can succeed in global, or Western market. If they win, what I cited above maybe wrong.
2. Illegal activities of these local firms: Does any US-based firm dare to share illegal documents, videos on their platform? This may be a big difference between US-based companies and Chinese's ones. Another aspect is under-table money, US companies are more more and more strictly regulated by law that prohibits them from giving under table money to local governors. There is ton of unethical ways that Chine firms can do to beat you.
3. Localization There is vast, majority people in developing countries who can't speak English;therefore, blocking them from approach US products. It turns to be a great opportunities copy-cat model for Chinese firms.
4. In some countries such as China, citizens more and more pride of their nation. Chinese are great in this aspect since they usually are member of various social guilds that respect and help each other. This tendency is in contrast to US culture that promotes individual. Thus, Chinese tend to use local products than US's one.
5. A firm in centralized governments such as China not only act as a business that seeks for profit but also act as a political tool for government. So, they receive a lot of support from government such as infrastructure, money, ...
For those above reasons, I totally think that Chinese firms are in great advantage to the competition in compare to US's ones. What I put in my consideration is how these Chinese firms can succeed in global, or Western market. If they win, what I cited above maybe wrong.