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This is the first of a three-case series (502-039-1 to 502-041-1). This short case offers students an opportunity to draw their own conclusions about market entry into China and the regulatory and policy-making processes in China. Students should consider the potential implications of these processes for the viability of a project. The case reflects the optimism and excitement engendered by the excellent achievement, against all odds, of government approval for the proposed venture. Case (B) brings students back to earth where actual operations must generate real profits. Students should realise that a license to operate is not a license to make money. From the identification of the opportunity to start-up the operation, a very long time of seven years had passed and BP managers in charge of negotiating the project may have become more focused on approval than on the eventual success of the venture.