Here's Why You Should Care About Chinese Startups
Startups out of China don't want to merely dominate the local market — they want their products and services to be used across the world as part of the country's "Going Out" initiative.
According to a CNBC report, the Chinese government is encouraging domestic companies to look beyond its own borders. This marks a notable shift from years ago when the creation of a Chinese company was intended to just serve the local market.
Chinese companies, large and small, have seen tremendous success in the international market. Most recently, Alibaba Group Holding Ltd (NYSE: BABA)'s and its financial arm Ant Financial offered to acquire Moneygram International Inc (NASDAQ: MGI) while Tencent Holdings continues to acquire stakes in many Western companies.
Redefining The 'Made In China' Label
The CNBC report found that many Chinese entrepreneurs hold a similar philosophy: Innovation and technology have no borders. Also, while China is a large company, the world is a much bigger market.
Wang Mengqiu, the founder of a company that manufacturers an autonomous flying camera, told CNBC that the "adoption of new technology and new products like ours may be faster in other markets so we shouldn't confine ourselves."
Given the new global mindset of Chinese companies, Western investors may be forced to change their reception of the "Made in China" label that used to be associated with low quality.
"The international development of start-ups is accompanied with demonstration of high-tech products, which shows the world that 'Made in China' products are also innovative and user-friendly," Neil Wang, the global partner and China managing director at Frost & Sullivan, told CNBC.
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