There is a clear indication that the United States is worried about the growing presence of Chinese technology firms even as the biggest economy is trying to restrict its dominance. Among the top twenty technology companies in the world, nine are from China and is trying to catch up with the U.S., which is having 11 other companies. The interesting data came amidst tensions between the two countries over the arrest of a top executive of Huawei in Canada.
Based on the market cap of public and private internet companies, the top five companies are from the United States. The leader among them is Apple followed by Amazon, Microsoft, Alphabet or Google, and Facebook. According to a Kleiner Perkins Caufield & Byers partner Mary Meeker’s chart, the sixth and seventh position is held by Alibaba and Tencent. The two companies have made big strides in the last five-year period.
For instance, the market cap of Alibaba has reached more than $500 billion in 2018 from nowhere in 2013 while Tencent market cap is over $480 billion from mere $71 billion in the same period. Ant Financial, which belonged to Alibaba Group, is another company that came within the top ten. Therefore, seven enterprises among the top ten were from the United States leaving the three to China. This would mean that six companies fall under the bracket of top 11 to 20 firms and five of them came from nowhere in May 2013.
Restricted To Domestic
Baidu and Xiaomi, which are ranked 13th and 14th technology firms, are growing steadily. Similar is the case in respect of other Chinese firms like JD.com or Didi Chuxing or Toutiiiao. The big difference between the United States and China are that while American firms have a global presence, Chinese firms are restricted to the domestic circuit. It was only in November that Xiaomi has filed for an IPO even as the company is expected to be valued $70 – $80 billion.
One of the primary reasons for such phenomenal growth is retail innovation and entertainment. Internet usage on mobile is also helping to fuel the entertainment space as the growth in data usage is tremendous in the current year from the level seen in 2017. That demonstrated the fact that people are spending more time on their smartphones to watch videos. This was also evident when Tencent and iQiyi have indicated that their subscriber base has crossed 50 million mark. The key factor is that Chinese internet users are not scared of sharing their data relative to the Americans.