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To those who are interested in startups in China: I personally know some people who worked on start ups in China. From their experience, I see no hope for star
by dengnan 13y ago
To those who are interested in startups in China:
I personally know some people who worked on start ups in China. From their experience, I see no hope for start ups without connection with government. I will show you some facts and some real examples here.
Here are some basic facts:
Chinese government controls Internet content tightly. Note that it is not the same level as NSA's surveillance. NSA's surveillance is bad. But it won't, or rarely, (directly) change/delete the content. The Chinese government, on the other hand, can even shut down a whole datacenter without telling the administrator with no reason --- By "no reason", I mean absolutely no explanation.
I had a blog and I know the service provider personally (It was a website hosting blogs like myspace). My blog was a high ranked one on their website. I posted some content discussing related to democracy/free speech in China and the whole website was down for a day. My friend received a call from network management department after they cut the network. They forced my friend to delete my blog entirely (the whole blog including posts for years.)
Chinese website was required to control any content on their website, otherwise, like the case I mentioned above, their website might be shutdown before telling you the reason. This is especially true for small startups.
Here is another example: during the early age of twitter (around 2008.), there were several startups in China trying to make a copycat of twitter in China. We call it micro-blogs and there are companies like hainei, jiwai, etc. working on twitter-like services. As we all know, content on such websites generated very fast. Much faster than traditional blogs. This makes the filtering work extremely hard --- those websites has to identify contents which are "politically incorrect" and delete them before any government officer found them (And yes, we DO have government employees who are dedicated to found those contents and report it to their higher authorities.) Such filtering work is impossible for a startup with tens of employees -- They used some filtering algorithms but people can always use other words to bypass the filter. Such micro-blogs (or twitter-like services) grows so fast with too much "unwanted" content, that finally, by mid-May 2009, they were all shut down by the government for half a year. Imagine a startup running without a live service for half a year, you know how hard it would be.
During this time, large companies with government connections like sina, tencent, 163, ect, prepared their own micro-blog services and finally put it on line. Such companies has large teams who dedicated themselves to filter content on their websites. Nowadays, the micro-blogs are only run by those large companies and none of the startups survived.
I told these stories to those who do not familiar with Chinese Internet Policy and intent to do some startups in China. My advise is: do not run a content-based startups, otherwise you can hardly afford the cost of filtering the users' contents.
EDIT 1: changed some spellings and expressions.
- WaterSponge 13y agoSo I think the world understands that doing business in china requires some special attention. Despite all of that they are doing business in China. Serious dollars are being made and value being delivered to millions of users. We should want in on that or to at least have some understanding of how its being done in comparison to US/EU.
- seanmcdirmid 13y agoYou assume the Chinese market is free, which it is not. The barriers are high, and the government just doesn't want you getting in on the business.
- 1stop 13y agoThe last 30 years of Chinese economic growth (fuelled by foreign investment) disagrees with you.
- seanmcdirmid 13y agoThe Chinese are totally ok with taking our foreign money (or HK, Taiwan), they just don't want us to get rich off of it (at least very easily). The economy is still very protectionist and you have to be very careful when investing here; many industries are just completely off limits and even those that are left open are often hobbled by protectionist ownership rules (e.g. 51% must be owned by a well connected Chinese company).
- itchitawa 13y agoMegaUpload, Silk Road shut down by US government. Piracy, drugs, child porn, online gambling. These are things Americans feel are OK to silence. Inciting violence (they have deadly anti-government riots), destabilizing the government. These are things Chinese feel are OK to silence. Different stokes for different folks. In either case you need enough staff to monitor for such illegal content.
- 13y ago