9 of the 20 largest technology companies in the world come from China

techtrader (47)in #news • 6 years ago

Who thinks of technology companies, think of names like Apple, Google, Amazon, Netflix, ... The United States dominates the technology world. But that dominance is slowly coming to an end. Based on market capitalization, there are already 9 technology companies from China in the top 20. Big absent in the list: Europe.
The United States dominates with 11 of the 20 largest technology companies. China has 9, Europe: 0. The US is still the supplier of the top 5. But beyond that, China is beginning to profile itself more and more.
In the top 10 there are already 3 Chinese internet giants.

The Chinese Tencent was the first Chinese company to enter the top-5 in November last year. Afterwards, Tencent fell back to place 7 and was passed by Alibaba as the largest Chinese technology company.
It is still striking that 7 of the 9 Chinese technology companies did not even have a stock exchange listing 5 years ago. The technology sector is therefore growing particularly fast in China.

Where does that growth come from Chinese technology companies?

Firstly, there is economic growth and especially the growth of the domestic economy. China has been an export country for years, but makes the transition to an economy that is fueled by consumption.
In 2003, consumption accounted for 35% of economic growth, today it is 62%.
The use of mobile internet is also exploding.

Chinese people spend much more mobile data in recent years. Especially short videos of less than 5 minutes are popular.
And Chinese people just want to pay for good online content. The online video platform iQiyi already counts more than 50 million users, Tencent Video more than 60 million.
Finally, it is noticeable that the Chinese do not have a problem with sharing their data. 38% of Chinese people are willing to share their data in order to get personalized ads instead, in the US it is only 25%. The global average is 27%.
It therefore looks as if the dominance of Chinese technology companies will only increase in the future.