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ADG China Insights - December 2017

Western technology companies can and must leverage China’s innovation and globalization explosion.

Innovation by China technology companies is accelerating driven by multiple converging factors.  It’s happening across key consumer and enterprise technology sectors in areas such as mobile payments, IoT, AI, drones, robotics, smartphones, electric vehicles, and many more.  With so many aggressive China companies and entrepreneurs backed by plenty of capital and government support – the challenges for Western technology are mounting.  And while this may concern many – this China innovation is providing unprecedented opportunities for the Western technology companies.

It is no longer just about China companies looking to leverage the best technology from Western companies, which despite the headlines, continues to grow as China companies expand.  But now China companies are aggressively looking to find highly strategic partners that can help them execute around their most ambitious strategies across both mature and emerging markets. Whether developing cross-border alliances or joint ventures, licensing IP or technology, the scale of the opportunity for Western technology companies is massive.

 

Follow this link to read more about the specific areas of China innovation and opportunities to leverage China's expansion.


China’s Didi's has raised $19 Billion, cumulatively - The Most Ever by a Technology Startup!

"With its new financial power, Didi is in a better position to develop intelligent driving technologies against deep-pocketed competitors like Alphabet Inc.’s Waymo, Tesla Inc. and Chinese internet giant Baidu. Didi is rapidly escalating its efforts, aided by the vast amount of data it collects from its more than 450 million active users. “The penetration of the average user is so much greater in China than in the U.S. so you actually could argue Didi is much better positioned from a perspective of training autonomous vehicles,” said Chris DeAngelis, GM at Alliance Development Group." WSJ

How China's Tech Giants Alibaba And Tencent Want To Shape How The World Pays 

In recent years, Alibaba and Tencent have taken their payment apps abroad for fresh growth, announcing billions of dollars in deals to partner with foreign payment networks, and acquiring stakes in local financial technology startups. Their ultimate goal: convince shoppers worldwide -- starting with Asia and eventually in the U.S. -- to use digital wallets under their control for all sorts of purchases, paving the way for them to provide more lucrative offerings such as online loans, insurance and wealth management products. – Forbes 

"My trip to China shattered my biases about developing nations" 

There is an ongoing debate between India and China on their development paths.  Having been to both countries I sometime find it hard to fathom how anyone can see India in the same league as China.  This is a fascinating piece written from the perspective of a person who grew up in India and now lives in the UK.  A must read for anyone trying to get their head around the two countries. – QUARTZ 

These 6 Chinese Tech Giants Are Ramping Up The Pace Of Innovation For The World

U.S. tech companies have long dreamed of building that kind of universal experience on a single platform, and they’re now scrambling to re-create what’s become standard in China. – Alibaba, Tencent, Xiaomi, Vivo, Huawei, and Wanda are changing the products and services used, whether you know it or not. But whether or not a specific product or brand from China ever becomes ubiquitous in the U.S., the underlying innovations are already being imported and exported, impacting Americans regardless. You can see it reflected in the design and build of your phone, in the way you interact with friends and businesses, and in the entertainment you consume. – FAST COMPANY 


Attending CES?  Looking to discuss how you can accelerate your China strategy? 

Contact ADG here to set up a time to meet at CES


More interesting Stories you may have missed

Top 2017 trends in China's Internet development – Global Times

5 Things to Know About Tencent, the Chinese Internet Giant That's Now Worth More Than Facebook - GIZMODO

Alibaba Vs. Amazon: Cloud Wars – Seeking Alpha

Alibaba's Singles' Day Sales Smash Record With $25 Billion Haul. Alibaba lets AI, robots and drones do the heavy lifting on Singles’ Day – South China Morning Post

China's tech firms go west – Financial Times

Amazon, Take Note: How China's E-Commerce Kings Will Create Totally New Ways To Shop – Forbes