China’s Tech Startup Scene Is Booming
China’s startup scene is booming. China has the second-largest tech ecosystem in the world, after the US.
Venture capital investment in Chinese startups reached a record $131 billion in 2021, according to Preqin data cited by Bloomberg. That is about 50 percent higher than the level of startup funding in 2020.
China has a number of technology giants. They include Huawei, a telecommunications provider; JD.com, an online retailer; China Mobile, a mobile service provider; Alibaba, an online retailer; Tencent, which owns the social networking service WeChat; Baidu, a search engine platform; Xiaomi, a consumer electronics company; ByteDance, which owns TikTok; and DiDi, a ride-hailing company.
The Chinese government also is giving support to thousands of startups in strategically important industries like semiconductors, machinery, and pharmaceuticals, according to Bloomberg. These “little giants” get tax cuts, generous loans, and more.
China has 301 unicorns, or private tech companies worth more than $1 billion, according to Shanghai’s Hurun Research Institute, cited by Nikkei. 74 new Chinese unicorns were added to the list in 2021. The US and China account for nearly three-quarters of the world’s unicorns.
Chinese unicorns include ByteDance, worth $140 billion; Xiaohongshu, a social media and e-commerce platform worth $20 billion; Yuanfudao, an online course platform worth $15.5 billion; DJI Innovations, a drone company worth $15 billion; Chehaoduo, a car-trading platform worth $9 billion; and Xingshing Selected, a fresh produce chain worth $8 billion, according to CB Insights.
China is now leading the world in AI, robots, computer vision, and other technological sectors, according to the World Economic Forum. Innovation-friendly policies, industry collaboration with academia, and market size, speed, and culture all have contributed to China becoming a technology powerhouse.
In 2021, Chinese regulators cracked down on tech companies including Alibaba and Tencent over antitrust and cybersecurity concerns, according to Protocol. But the tech sector in China is still thriving.
If you’re building a technology company in China that’s made for the world, let’s talk. At Alariss Global, we work with Chinese tech companies including TAL (Tomorrow Advancing Life). We match top US sales and business development talent with global tech companies to help them expand into the US. If you’re ready to work with us, book a call with us today.