Best of the Week
Most Popular
1.Canada Real Estate Bubble - Harry_Dent
2.UK House Prices ‘On Brink’ Of Massive 40% Collapse - GoldCore
3.Best Cash ISA for Soaring Inflation, Kent Reliance Illustrates the Great ISA Rip Off - Nadeem_Walayat
4.Understanding true money, Pound Sterling must make another historic low, Euro and Gold outlook! - Marc_Horn
5.5 Maps That Explain The Modern Middle East - GEORGE FRIEDMAN
6.Gold Back With A Vengeance As Bitcoin Bubble Bursts - OilPrice_Com
7.Gold Summer Doldrums - Zeal_LLC
8.Crude Oil Trade & Nasdaq QQQ Update - Plunger
9.Gold And Silver – Why No Rally? Lies, Lies, And More Lies - Michael_Noonan
10.UK Election 2017 Disaster, Fake BrExit Chaos, Forecasting Lessons for Next Time - Nadeem_Walayat
Last 7 days
Students, It’s Time to Prepare Your Finances for the Years Ahead - 25th Jul 17
Stock Market and Gold Stocks Trend Forecast Update - 25th Jul 17
Saving Illinois: Getting More Bang for Its Bucks - 24th Jul 17
3 Stocks Sectors That Will Win in The Fed’s Great Balance-Sheet Unwind - 24th Jul 17
Activist Investors Are Taking Over Wall Street, Procter and Gamble Might Never Remain the Same - 24th Jul 17
Stock Market Still on Track - 24th Jul 17
Last Chance For US Dollar To Rally - 24th Jul 17
UK House Prices Momentum Crash Warns of 2017 Bear Market - Video - 22nd Jul 17
Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts - 22nd Jul 17
Warning: The Fed Is Preparing to Crash the Financial System Again - 21st Jul 17
Gold / Silver Shorts Extreme - 21st Jul 17
GBP/USD Bearish Factors - 21st Jul 17
Gold Hedges Against Currency Devaluation and Cost Of Fuel, Food, Beer and Housing - 21st Jul 17
Is It Worth Investing in Palladium? - 21st Jul 17
UK House Prices Momentum Crash Threatens Mini Bear Market 2017 - 21st Jul 17
The Fed May Show Trump No Love - 20th Jul 17
The 3 Best Asset Classes To Brace Your Portfolio For The Next Financial Crisis - 20th Jul 17
Gold Stocks and Bonds - Preparing for THE Bottom - 20th Jul 17
Millennials Can Punt On Bitcoin, Own Safe Haven Gold For Long Term - 20th Jul 17
Trump Has Found A Loophole To Rewrite Trade Agreements Without Anyone’s Permission - 20th Jul 17
Basic Materials and Commodities Analysis and Trend Forecasts - 20th Jul 17
Bitcoin PullBack Is Over (For Now): Cryptocurrencies Gain Nearly A 50% In Last 48 Hours - 19th Jul 17
AAPL's 6% June slide - When Prices Are Falling, TWO Numbers Matter Most - 19th Jul 17
Discover Why A Major American Revolution Is Brewing - 19th Jul 17
iGaming – Stock Prices - 19th Jul 17
The Socionomic Theory of Finance By Robert Prechter - Book Review - 18th Jul 17
Ethereum Versus Bitcoin – Which Cryptocurrency Will Win The War? - 18th Jul 17
Accepting a Society of Government Tyranny - 18th Jul 17
Gold Cheaper Than Buying Greek Villas in 2012 - 18th Jul 17
Why & How to Hedge the Growing Risks of Holding Stocks - 18th Jul 17
Relocation: Everything You Need to do for a Smooth Transition Abroad - 17th Jul 17
A Former Lehman Brothers Trader: It’s Time To Buy Brick And Mortar Retailers - 17th Jul 17
Bank Of England Warns “Bigger Systemic Risk” Now Than 2008 - 17th Jul 17
Bitcoin Price “Deja Vu” Corrective Sequence - 17th Jul 17
Charting New Low in Speculation in Gold and Silver Markets - 17th Jul 17
Bitcoin Crash - Is This The End of Cryptocurrencies? - 17th Jul 17
The Fed's Inflation Nightmare Scenario - 17th Jul 17
Billionaire Investors Backing A Marijuana Boom In 2017 - 17th Jul 17
Perfect Storm - This Fourth Turning has Over a Decade of Continuous Storms to Come - 17th Jul 17
Gold and Silver Biggest Opportunity Since Late 2015, Last Chance at These Prices - 17th Jul 17
Stock Market More to Go - 17th Jul 17
Emerging Markets & Basic Materials Stocks Breaking Out Together - 16th Jul 17
Stock Market SPX Uptrending Again After Microscopic Correction - 15th Jul 17

Market Oracle FREE Newsletter

Crude Oil, Gold, ETFs & more: Pro-grade Market Forecasts

Chinese Internet Leaders Will Shake the World 

Companies / Internet Apr 24, 2017 - 06:14 AM GMT

By: Dan_Steinbock

Companies A decade ago, Chinese internet companies were still marginal internationally. Today, they are world-class industry innovators. In the internet economy, the leadership is shifting from the advanced West to the emerging East.

Today, China’s leading internet companies rival their counterparts in the West in terms of scale, value and innovation. Yet, their impact outside of China is still relatively limited. Even the international leader Alibaba generates less than 10% of its revenue outside China.


But things are changing. Chinese internet players are already expanding in other emerging economies particularly in Asia but also in Brazil and Latin America, as well as Africa. And as Chinese foreign investment has recently taken off, it is the internet companies that are pushing outbound investment and mergers and acquisitions. Third, these companies are exporting their disruptive business models.

And this is just the beginning.

From the US internet revolution to Chinese e-commerce revolution

In the late 1990s, the United States was amidst a technology revolution and I interviewed most pioneers of the early internet. It was an exciting time. America was the pioneer of the new cyberspace frontier.

Some 15 years later, I saw the coming of another transformation that would subvert the internet economy from within. That’s when I predicted that “China's e-commerce explosion will shake the world.”  

Before 2008, there were barely 250 million internet users in China, but the internet penetration was still growing at 35% annually. Today, there are almost 700 million users, and the penetration is still growing at some 7% per year. Today, most Chinese spend a third of their time on mobile internet with WeChat and a tenth with QQ, while three giant companies - Tencent, Alibaba and Baidu - accounting for more than 70% of mobile time spent, according to US industry data.

In the process. Chinese e-commerce companies have become as big or bigger as their peers in America. If the US has its Wal-Mart, CVS, Kroger and Walgreens, China has its Alibaba, JD.com, China Resources and Suning.

In just one decade, China’s leading internet companies have shifted the center of gravity in the global internet economy to the East. Investors are following in the footprints. In 2015, venture capital investment value in China-based internet businesses was estimated at $20 billion, which exceeded comparable VC investment in the US ($16 billion), for the first time.

From imitators to innovators

In the US and Europe, Chinese success is often explained as a simple result of a huge domestic market. While the latter has facilitated the drastic expansion of Chinese Internet giants, it does not explain their success, particularly the extensive ecosystems, disruptive business models and unique services of the Big Three - Baidu, Alibaba and Tencent.

In the past, US and European multinationals crafted their global strategies for the Chinese marketplace. The idea was that what works internationally will succeed in China. That was predicated on two assumptions: global services can be cloned for China and that Chinese companies pose no competition.

Those assumptions no longer apply. Today, Chinese Internet giants are fast globalizing their services. In the coming years, they will complement multinational leaders in one industry after another. Chinese Internet companies are no longer local imitators but global innovators.

Dr. Dan Steinbock is an internationally recognised expert of the nascent multipolar world. He is the CEO of Difference Group and has served as Research Director at the India, China and America Institute (USA) and visiting fellow at the Shanghai Institutes for International Studies (China) and the EU Centre (Singapore). For more, see www.differencegroup.net   

© 2017 Copyright Dan Steinbock - All Rights Reserved

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.


© 2005-2017 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Catching a Falling Financial Knife