Over the last decade or so, many global companies have established profitable businesses in China. The pay off came from achieving approval from the Chinese government to enter the market, picking the right Chinese joint venture partner, and selling existing products to affluent customers in select cities. It was all about privileged access—through government relations and partners—and first mover advantage.

That era is over. Today, China is open for business. Government is no longer the main driver of deals. Barriers to entry have fallen. Joint venture partners and acquisition targets are available to the highest (or at least most suitable) bidder. Business licenses are readily available.

Many multinational companies are expanding across the country to ever-smaller cities and towns, establishing positions to serve fast-growing segments of the Chinese middle class and small and midsize businesses—but incurring greater marketing and distribution costs, as well.

In sector after sector, domestic Chinese rivals have become fierce competitors. In this intensely competitive environment, strategies based on creating and sustaining privileged access look more and more outdated.

In other words, China is maturing as a market. Winning now depends on great execution—effectively and efficiently developing, marketing, producing, and channeling goods and services to customers, and attracting and retaining a talent base. Multinational companies get this done by taking global best practices and adapting them to a Chinese context.