American tech companies struggling to establish in ChinaThe app is becoming popular among American teens which is a sign that the next big social media company may come out of China. If the Chinese apps cut into profits and markets share of American tech companies then there is a likelihood that Silicon Valley may turn into protectionist policies which will be a threat to the current US political alliances. American companies have had challenges in trying to capitalize on the Chinese Market. For instance companies like eBay considered China to be the biggest market opportunity but it was matched by Taobao. In China Facebook is blocked while Google continues to struggle to get back after its search engine was shut down following censorship issues.
Only Apple has had success in ChinaThe only success story in the Chinese market is Apple which has had billions of dollars annually in revenue although in the most recent quarter it reported a decline in revenue. Silicon Valley has been advocating for free trade and there is hope that American tech companies will soon capitalize on the huge profits in China as they remain unconcerned about the growing popularity of Chinese companies in the US. Media companies stand to lose market share to Chinese companies such as TikTok as second spent on the app is one not spent on Google, Facebook or Netflix. If the US companies begin losing markets share the will turn to innovation to win it back or they can take an easier route of petitioning Congress to come up with protectionist laws to shield them from the unhealthy competition. It could be unfair for TikTok to steal a market share of US media companies like Facebook when they are not permitted to operate in China.
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