May 6, 2017

Will America’s Tech Giants Ever Be Overtaken by Their Chinese Counterparts on the World Stage?

   May 6, 2017

Will America’s Tech Giants Ever Be Overtaken by Their Chinese Counterparts on the World Stage?

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Editor’s Remarks:
It could be billed as the battle of BAT versus FANG – but no, it’s nothing to do with flying rodents. The four giants Facebook, Amazon, Netflix and Google have been some of the best-performing stocks in recent times, something which is emblematic of how the tech world is dominated by America’s internet giants – in the Western hemisphere, at least. In the East, it’s all about Baidu, Alibaba and Tencent. When it comes to the international market, American tech companies on the whole have led the way for quite some time, but the next phase of the Internet Age could see this change. Many countries have their own homegrown challengers, like India’s Flipkart which is holding off Amazon’s dominance, but if anyone is going to beat FANG at their own game, it would probably be China’s Big Three or similar. A report from Barclays internet analysts argues we are entering the ‘Golden Years of mobile’ and, in particular, that “China is arguably the most advanced market in terms of the pace of mobile innovation.” Potential future Chinese tech dominance could come from more than just the smartphone industry: Baidu is investing aggressively in VR and AR technologies, while Alibaba affiliate Ant Financial has been making major acquisitions and investments in FinTech. China could also leverage its growing influence in emerging markets in Africa and Southeast Asia to help its internet giants make lasting success beyond the mainland. However, our readers weren’t convinced that either of these factors will be enough to unseat American dominance. With Google and Facebook ubiquitous in so many corners of the world and seemingly unstoppable growth from others like Amazon and Netflix, it’s easy to wonder whether companies like BAT would even be around if it hadn’t been for China’s carefully handled internet censorship.

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