Why is no Silicon Valley company ever able to win China?
In the 1970s the world went through a revolution with the invention of semiconductors. These small chips changed the world of electronics forever. They helped to make devices which are more compact, efficient and cheaper. The area in northern California, where these silicon chips were earlier manufactured became a technology hub and gained the title of Silicon Valley. Silicon Valley has served as a home to many tech giants and startups. Many renowned companies like Adobe, Apple, Google, HP, eBay, etc. have established themselves in this tech hub. With time companies of Silicon Valley gained more popularity and established themselves in the international market. Developing countries which lacked behind in technology became their major market. But with every business there comes a competitor. China being a country which aims to dominate the world started to copy Silicon Valley. The companies of Silicon Valley tried to establish themselves in China as well but got curbed by Chinese strategies.
China has always given a cold shoulder to foreign countries. Foreign companies are under strict scrutiny in China. Renowned companies like Facebook, Twitter and YouTube, etc. are banned by the Chinese government. The Chinese government put several restrictions on foreign companies. Many companies find it hard to comply with these restrictions and give up even before starting. Some companies which dare to enter the Chinese market, face competition from Chinese companies. China loves to copy from others. Chinese are quick to develop their own alternatives of foreign companies. Companies like Google, HP, Dell, Nike , etc. decided to withdraw from the Chinese market either due to tough competition or due to China’s unfair international acts and policies. Chinese companies like Alibaba, Baidu, Huawei, Tencent, WeChat, etc. gave international companies tough competition. Chinese policies promote unfair competition between the Chinese and international companies.
China is one of the fastest developing countries and promotes research and innovation. Over the years, the Chinese government has funded many research programs in various fields. China does not lack market demand but it lacks creativity. Most Chinese companies copy foreign ideas. China is known for cheap copies of original products. These cheaper copies make it difficult for original products to sell.
China’s foreign policies are not exactly friendly. Many international companies withdrew from China after the Covid pandemic. This further made the Chinese local market stronger. The Chinese companies are largely localised because of China’s attitude towards other countries. Foreign companies find it hard to deal with China and hence are not able to enter the Chinese market.