ADG China Insights February 2019

By ADG | 2/21/19 10:45 PM

US-China tensions but positive signs for 2019

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

By David Sullivan | 12/21/17 10:11 AM

Innovation in China is accelerating and being driven by multiple converging factors including:

  • VC investment is pouring in and is getting close to US VC investment levels
  • A huge domestic, mobile first market and user base – to build a launch pad for new business model innovation and global expansion
  • A large hungry educated young generation seeking to be the next Jack Ma (Alibaba) or Pony Ma (Tencent)
  • Government reforms and support for innovation, entrepreneurs, and “going global”
  • Years of accumulating knowledge via cooperation and competition with the global players – including hardware leadership, which is becoming critical for connected devices and Internet of Things (IoT)

With the world’s largest population (~1.4B), second largest economy ($11.2T vs US’s $18.6T), and a mobile internet population of over 800 million users, the challenges and opportunities posed by China for Western technology companies have never been greater.

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