"Tech Titans of China" (Rebecca A. Fannin)

TITLE: Tech Titans of China: How China's Tech Sector is challenging the world by innovating faster, working harder, and going global
AUTHOR: Rebecca A. Fannin
PUBLISHER: Boston, MA: Nicholas Brealey Publishing, 2019, (256 pages).

Those of us who live in the West would be familiar with the Tech Titans of America, in particular, the Silicon Valley of California. At the end of the Millenium, there were the AOLs, Blackberrys, IBMs, the HPs, the Ciscos, the Dells, Yahoo, and so on. Today, these companies have been eclipsed by Amazon, Apple, Facebook, Google, Microsoft, Netflix, and so on. Like the common saying that the big will eat up the small, the new threat to these Western Tech Titans are coming from East Asia, namely, China. Calling them the BATs of China, these rising tech titans of China (Baidu, Alibaba, and Tencent) are challenging the FANGS (Facebook, Amazon/Apple, Netflix, Google) in the search, e-commerce, social networking, and many other technology domains. WeChat's userbase has surpassed WhatsApp. China's Silicon Dragon is China's emerging equivalent of Silicon Valley. In fact, China has grown from copying to innovating. If imitation is the biggest form of flattery, the successes of many Chinese tech firms have been validated with Western firms doing the copying instead. Facebook imitates WeChat's messaging features. Amazon has to play catchup in some areas too. Even the giant Apple are copying some of Xiaomi's business model. It is not just the speed of innovation that is catching up, it is also about the super-quick time that these Chinese corporations need to overtake their Western counterparts. Like the words of Gary Rieschel, "China is going to eat Silicon Valley's lunch." While it is true that some areas of advancement are due to government protectionist measures, a sizable chunk of innovation is due to the relentless entrepreneurial spirit and hardworking culture so synonymous with the Chinese. Not only that, the work rate of the Chinese is unmatched. Working over 12 hours per day, six days a week, and having meetings on weekends. Many of these are all-nighters that reflect a workaholic culture not often seen in America. With an enormous domestic market, a relentless entrepreneurial spirit, a workaholic culture, and a protectionist government, all signs point to inevitable domination within China first, and the world next. 

Part One gives us many reasons why China is winning the tech wars. The BATs are now playing on the leading edge advantage. Baidu leads the Chinese search market. Alibaba dominates online shopping and Tencent (best known for WeChat) majors on social media and digital networking. They however are not alone. They are being pursued by the chasing pack TMD (Toutian, Meituan, and Didi). Not only that, the Chinese titans are shrewd acquisitors of startups and investors in many venture capital firms in the US. Not only are they big, but their ambitions are also bigger. They target other countries in  South East Asia, India, and others. For US companies trying to enter China, they face an uphill task, making them late or rare entrants to a dynamic domestic Chinese market. Only a few like Starbucks and AirBnB managed to crack the China code. Fannin gives us some tips on how to do business in China, making this book less about fear of China's titans, but a gateway into how to work within the limitations of Chinese society. Part Two is about the financial resources to enable these companies to grow big and go international. From ambitious investments to fund-raising initiatives, IPOs to venture capitalists, money, and thirst are driving them to attain world domination at all costs. Many of the major venture capital companies are co-owned by Chinese and US power players. With top management talent trained in prestigious universities in America, brilliant minds are also powering the titans. Parts Three and Four show us the future battlegrounds to be fought on. This includes AI in a wide range of sectors; breakthroughs via ride-sharing transportation; e-commerce, online shopping, electric vehicles, drones, robots, as well as communications technologies. 

My Thoughts

The growth of the Chinese economy is a miracle in itself. Not only has China grown from follower to leading-edge, but she has also managed to pull herself out of poverty. The country no longer talks about surviving but thriving. Fueled by domestic demand and widespread competition, these tech titans can only grow bigger, faster, and better. A confident China is now competing with the US in not just technology but in every sector. This includes Automobiles, Energy, Food, and Space Exploration. At this rate, they will overtake America in many traditional strongholds of the West. Does this mean one should fear the tech titans of China? Not really. The author writes in a way in the hope that American leaders will wake up from any complacency and pay attention to a changing new world. This world is no longer just about American power, but a domain that needs to be shared. Inter-dependence is the way forward. Both China and the US need each other to prosper. There is no joy in seeing anyone stumble. That is probably the best way to maintain synergy, not on the basis of nationalistic stances or political pride, but shared success for the sake of human advancement. While it is good to learn to overtake rivals, at the end of it all, we need to reflect on the purpose of what we all are doing. Together, we can do more. Hopefully, this mantra will be incorporated more through joint initiatives and common projects. Healthy competition is best. Suspicions should be minimal. Cooperation upheld. 

This book gives readers in the West many insights into the dynamism of the Chinese economy. Many of the household names are still unknown outside of China. Plus, the names of Chinese companies tend to be too language-limited, making it hard to pronounce by Westerners. Even the author has to show us how to explicitly say the names. Maybe, it is time for the West to wake up to the challenge. More importantly, they could maximize the talent they have within their institutions. For instance, there are Americans who are fluent in both Sino-US cultures, languages, and common interests. Why not enable them to build bridges toward mutual benefit? It is better to make friends than to foster enemies. I would urge readers not to be afraid of China. They are simply learning the ropes of growth. Many of the entrepreneurs are young and desperate to learn. Perhaps, humility should be the guiding principle of all working relationships. See the big picture of mutual benefits instead of mere competition. See the bigger picture of shared profits as we use our shared resources on this earth. There are a lot of global problems that need all of our attention. Issues like Global Warming, World Poverty, Intellectual Property, and so on. If there is any single thing to be afraid of, it is not about winning or losing. It is about failing to learn the lessons played out before us. 

Rebecca A. Fannin is a leading expert on global innovation. As a technology writer, author and media entrepreneur, she began her career as a journalist covering venture capital from Silicon Valley. She speaks frequently at major business, tech, and policy forums, and has provided testimony to a US Congressional panel about China's Internet.

Rating: 4.5 stars of 5.

conrade

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This book has been provided courtesy of Nicholas Brealey Publishing and NetGalley without requiring a positive review. All opinions offered above are mine unless otherwise stated or implied.