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This article is missing the key part where China blocked and limited products by major foreign tech giants such as Google, Facebook, Microsoft et al so homegrow

This article is missing the key part where China blocked and limited products by major foreign tech giants such as Google, Facebook, Microsoft et al so homegrown Chinese variants could flourish.

aikinai 9y ago
When I first saw the headline, that’s specifically what I assumed it would be about!
yadongwen 9y ago
Google, M$ and Amazon were not successful when they were not blocked in China.. Amazon China is still not blocked but far behind JD, Alibaba, etc. In some areas like fintech, drones, consumer apps and games China is clearly the leader. If FB is unblocked I doubt it can compete with Tencent at all. Tencent has a higher market cap than FB and understands the Chinese so much more..
- Zafira 9y ago
  I don't think this concedes how much a factor Chinese regionalism plays into the dominance of Chinese companies in China. The government has had a much stronger hand in shaping what technologies and companies flourish than in the rest of the developed world. How the market would have looked if the government was less heavy-handed is an open question, but I think it is misleading to omit this factor. Also, there are things that foreign companies simply will not concede to Beijing. Tencent allows full access to their networks to the government. Ephemeral criticisms of the government can get you a warning from the state. This is unconscionable behavior in a lot of other countries, but it's a concession Chinese companies have made time and again.
  - kochthesecond 9y ago
    Well, I did not know that. Are there any sources where I can read more? I know Google fought a lot over similar issues and eventually withdrew their hardware from China. Also, the Chinese are building a citizen scoring card system, that will rate your standing with the government from birth to death.
- ghostcluster 9y ago
  > In some areas like fintech, drones, consumer apps and games China is clearly the leader Maybe vaping/e-cigarette technology too. > BIS Research estimates that the global electronic cigarette industry will exhibit a growth of over 22.36% (CAGR) from 2015 to 2025, to reach a total market value of $50 Billion by 2025 https://bisresearch.com/industry-report/electronic-cigarette-market-size-forecast.html https://bisresearch.com/industry-report/electronic-cigarette...
Arn_Thor 9y ago
The classic 'East Asian growth model' tactic. It's classic because it works, almost every time
- intended 9y ago
  Also its not like the west managed its growth solely out of the strength of their intellect and labor. It seems that all major ladders to the top have some dark rungs the victors are happy to hide when they reach the top.
tinyrick2 9y ago
Don't you think that by limiting foreign companies' products the local companies would operate less efficiently since there is no competition? I think I was taught about this in my econ 101 class. Why does it work differently this time?
- seanmcdirmid 9y ago
  No, it’s still true. Chinese companies in protected industries are as inefficient as expected.
  - coldtea 9y ago
    Really, Weibo, TaiBao, Alibaba and co are "inefficient"?
    - seanmcdirmid 9y ago
      Taibao and Alibaba aren’t really protected. As for Tencent, look at its success in other countries when competing against google and Facebook....
- tqkxzugoaupvwqr 9y ago
  > Don't you think that by limiting foreign companies' products the local companies would operate less efficiently since there is no competition? There is no foreign competition but Chinese companies still have competition from other Chinese companies. Even if the Chinese market is less efficient because competition is limited to China: The goal is to foster a healthy national economy, create knowledge, and most importantly keep total control over technologies and communication channels.
- dogma1138 9y ago
  Not necessarily the same things happened also in Russia. Competition can still happen just locally and while competition is good when the scale is unbalanced it can be just as bad or worse than no competition at all. Almost no one is developing a Google search competitor because it’s near impossible to do so while people have access to Google the need isn’t there and you can’t compete unless you are actually better there isn’t as much niche to search as people think. You also have the problem of resource imbalance where Google can just go and buy out the local competition at ease due to their wealth this what has happened with dating and P2P commerce sites all over the world.
coldtea 9y ago
If brands like Google, Facebook, Microsoft et al were Chinese owned and controlled, the US would have done much of the same. Only third and fourth tier players (like what the European countries have become now) let others control such key infrastructure.

This article is missing the key part where China blocked and limited products by major foreign tech giants such as Google, Facebook, Microsoft et al so homegrown Chinese variants could flourish.

aikinai 9y ago

When I first saw the headline, that’s specifically what I assumed it would be about!

yadongwen 9y ago

Google, M$ and Amazon were not successful when they were not blocked in China.. Amazon China is still not blocked but far behind JD, Alibaba, etc. In some areas like fintech, drones, consumer apps and games China is clearly the leader. If FB is unblocked I doubt it can compete with Tencent at all. Tencent has a higher market cap than FB and understands the Chinese so much more..

Zafira 9y ago
I don't think this concedes how much a factor Chinese regionalism plays into the dominance of Chinese companies in China. The government has had a much stronger hand in shaping what technologies and companies flourish than in the rest of the developed world. How the market would have looked if the government was less heavy-handed is an open question, but I think it is misleading to omit this factor. Also, there are things that foreign companies simply will not concede to Beijing. Tencent allows full access to their networks to the government. Ephemeral criticisms of the government can get you a warning from the state. This is unconscionable behavior in a lot of other countries, but it's a concession Chinese companies have made time and again.
- kochthesecond 9y ago
  Well, I did not know that. Are there any sources where I can read more? I know Google fought a lot over similar issues and eventually withdrew their hardware from China. Also, the Chinese are building a citizen scoring card system, that will rate your standing with the government from birth to death.
ghostcluster 9y ago
> In some areas like fintech, drones, consumer apps and games China is clearly the leader Maybe vaping/e-cigarette technology too. > BIS Research estimates that the global electronic cigarette industry will exhibit a growth of over 22.36% (CAGR) from 2015 to 2025, to reach a total market value of $50 Billion by 2025 https://bisresearch.com/industry-report/electronic-cigarette-market-size-forecast.html https://bisresearch.com/industry-report/electronic-cigarette...

Arn_Thor 9y ago

The classic 'East Asian growth model' tactic. It's classic because it works, almost every time

intended 9y ago
Also its not like the west managed its growth solely out of the strength of their intellect and labor. It seems that all major ladders to the top have some dark rungs the victors are happy to hide when they reach the top.

tinyrick2 9y ago

Don't you think that by limiting foreign companies' products the local companies would operate less efficiently since there is no competition? I think I was taught about this in my econ 101 class. Why does it work differently this time?

seanmcdirmid 9y ago
No, it’s still true. Chinese companies in protected industries are as inefficient as expected.
- coldtea 9y ago
  Really, Weibo, TaiBao, Alibaba and co are "inefficient"?
  - seanmcdirmid 9y ago
    Taibao and Alibaba aren’t really protected. As for Tencent, look at its success in other countries when competing against google and Facebook....
tqkxzugoaupvwqr 9y ago
> Don't you think that by limiting foreign companies' products the local companies would operate less efficiently since there is no competition? There is no foreign competition but Chinese companies still have competition from other Chinese companies. Even if the Chinese market is less efficient because competition is limited to China: The goal is to foster a healthy national economy, create knowledge, and most importantly keep total control over technologies and communication channels.
dogma1138 9y ago
Not necessarily the same things happened also in Russia. Competition can still happen just locally and while competition is good when the scale is unbalanced it can be just as bad or worse than no competition at all. Almost no one is developing a Google search competitor because it’s near impossible to do so while people have access to Google the need isn’t there and you can’t compete unless you are actually better there isn’t as much niche to search as people think. You also have the problem of resource imbalance where Google can just go and buy out the local competition at ease due to their wealth this what has happened with dating and P2P commerce sites all over the world.

coldtea 9y ago

If brands like Google, Facebook, Microsoft et al were Chinese owned and controlled, the US would have done much of the same. Only third and fourth tier players (like what the European countries have become now) let others control such key infrastructure.