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Atlas China Top 8 #24 - We Are The Good Guys

Imagine you're a top executive at a Western tech giant. You need to make strategic bets on new produc

Atlas China Top 8

November 24 · Issue #24 · View online
China + global technology, business, and innovation trends, 8 items at a time.

Imagine you’re a top executive at a Western tech giant.
You need to make strategic bets on new products and technologies to keep your shareholders happy and stay viable. You’re jostling for position with powerful domestic competitors.
At the same time, your business is facing regulatory challenges from governments around the world, and there are rising calls for your firm to be broken up on antitrust grounds.
Your users are uneasy about what’s happening with their data. Even some of your employees are rebelling over initiatives that don’t fit with their personal ethics.
Then to top it off, you’re losing ground in emerging markets and emerging technologies to Chinese firms expanding internationally and winning in your home market with new products – to the point that you’re pressed to copy their innovation.
The landscape looks different for rising Chinese tech giants, which are thriving domestically and increasingly competitive abroad:
–Tencent’s valuation has taken a hit from gaming revenues, but “WeChat is on over four of every five Chinese smartphones” and more necessary than ever.
–WeChat has always been more than a messaging app, and Tencent’s bet on mini programs is paying off, with one million mini programs and 200 million daily users.
–China’s AI facial recognition companies have customers around the world while their Western counterparts might not be able to get domestic contracts.
–The global economy won’t wait for the West to adapt its principles for the Fourth Industrial Revolution. Politicians might want to “reborder” but consumers want the best experience and capital wants the best ROI.
–Chinese companies are using these market forces to outpace their competitors. Tencent backed Epic Games before Fortnite and now owns the world’s most popular PC games.
The world’s most valuable startup and its #1 App Store hit won over Jimmy Fallon, who’s using TikTok to create a new “challenges” viral content segment on The Tonight Show.
–Now, even leading MNCs like Starbucks are looking to China for commercial innovations that they can apply to their global operations.
–And the Western tech giants’ China engagement strategies only seem to make their domestic challenges worse without solving their long-term competitive problems.
What do you think? How do you see this playing out? Hit reply and let me know.
Welcome to our many new subscribers thanks to Jeremy Goldkorn’s shoutout in SupChina! Hope you enjoyed this issue. If anyone reading isn’t also on SupChina and Bill Bishop’s Sinocism, click through and sign up!
Catch you in two weeks,

Who writes this newsletter?
Atlas China helps SMEs and multinationals in China find talent and grow revenues through recruitment, events, and strategy. Contact Abe Sorock.
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