China's Technology Giants Look Outside China for Future Growth

Posted 2021-04-29 GermanChamberSH

As China's economy enters a more mature phase of growth, its technology all-stars are looking at new markets to drive growth and are specifcally looking closely at China's neighbors in Southeast Asia and India.

By BEN CAVENDER

Over the past two decades, China has evolved from an economy with very low consumer spending power and access to technology (compared to developed economies in Europe and North America), to one in which there are now more than 500 million middle class consumers and more than 660 million smart phones in circulation. In 2017, e-commerce sales in China grew to USD 1.1 trillion a 30% increase, over 2016.The market capitalizations of China’s technology Big 3 have also surged over the last five years and now rival the largest players in the west. For comparative purposes, Alibaba and Tencent both saw their valuations increase to over USD 500 billion in 2018, a feat that means their companies are valued similarly to Facebook and Amazon, or even more, depending on how their stocks perform on a given day. Government policies have largely kept the Chinese internet market closed to investment and acquisition by foreign firms looking to profit from China's rise, but this does not mean that European companies should ignore China's technology space...

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