We have been bringing to you constant developments following the recent executive orders to ban TikTok and WeChat from the US.
In observing recent developments, we saw rising concerns from the best Chinese technology companies on globalization. This may cause further reorientation, perhaps even a pause, of their globalization strategies. These tech companies are not SOEs and they should rightfully respond to political risk adjustments.
We would like to leave these two questions for your thoughts:
Should Chinese tech companies continue to globalize?
What would be the best strategic advice to Tencent or Bytedance, and all the Chinese tech up-and-comers?
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One of the bright spots of confidence in China is how investment in the yuan has gone up. These investors may not be willing to stand up for China in an increasingly anti-China West; however, this does show a proven path to cooperation, win-win, and mutual respect.
However, to most Americans at large, the Chinese stock market is very opaque. A major effort to facilitate investment in Chinese stocks, or comparisons between the benefits of investing in Chinese stocks and American stocks, would be a way to reach the intellectuals and knowledge workers of the US who don't have a financial interest in China and stand by in the sidelines. Many people view stocks like they view sports and learn a great deal about the company so they can make an informed decision.
Working together on this kind of effort could generate more knowledge about China and lead to goodwill that could effect the overall relationship between US and China. China must continue to open up even more, and tech companies must play their role in this effort. It's lose-lose to give up too soon.
There is no way China invested so many big resources into this tech innovation to the point of global leadership without expecting this response from the USA, who promised what they have done, in many defence white papers. China may be interested in opinions but the scientific method would never have done this without a plan b c and d. The obvious one is to continue eith the biggest market for chinese goods bigger than anyone else’s fully open market - China 1.4 billion, and access to its biggest external market - the new silk roads bri. And many of those not signed up to bri who want to trade with China. It is the USA who is closing it’s huge China market and encouraging innovation there to replace them. It is fascinating to consider how far progressed China is towards replacing the USA. But it is the USA forcing China.
One of the bright spots of confidence in China is how investment in the yuan has gone up. These investors may not be willing to stand up for China in an increasingly anti-China West; however, this does show a proven path to cooperation, win-win, and mutual respect.
However, to most Americans at large, the Chinese stock market is very opaque. A major effort to facilitate investment in Chinese stocks, or comparisons between the benefits of investing in Chinese stocks and American stocks, would be a way to reach the intellectuals and knowledge workers of the US who don't have a financial interest in China and stand by in the sidelines. Many people view stocks like they view sports and learn a great deal about the company so they can make an informed decision.
Working together on this kind of effort could generate more knowledge about China and lead to goodwill that could effect the overall relationship between US and China. China must continue to open up even more, and tech companies must play their role in this effort. It's lose-lose to give up too soon.
There is no way China invested so many big resources into this tech innovation to the point of global leadership without expecting this response from the USA, who promised what they have done, in many defence white papers. China may be interested in opinions but the scientific method would never have done this without a plan b c and d. The obvious one is to continue eith the biggest market for chinese goods bigger than anyone else’s fully open market - China 1.4 billion, and access to its biggest external market - the new silk roads bri. And many of those not signed up to bri who want to trade with China. It is the USA who is closing it’s huge China market and encouraging innovation there to replace them. It is fascinating to consider how far progressed China is towards replacing the USA. But it is the USA forcing China.