The top Sino-U.S. tech titans now reach the trademark total market capitalization of $4 trillion as of July 2018.

Fiona Sydney

2018-07-07 10:33:00 Sat ET

The east-west tech rivalry intensifies between BATs (Baidu, Alibaba, and Tencent) and FAANGs (Facebook, Apple, Amazon, Netflix, and Google). These Sino-U.S. tech titans now reach the trademark total market capitalization of $4 trillion as of July 2018. The U.S. tech giants aim to achieve digital supremacy worldwide; yet, only Apple and Amazon receive open access to the Chinese market. The Chinese tech leaders, Baidu, Alibaba, and Tencent dominate in Mandarin online search, e-commerce, mobile payment encryption, social media, and digital communication.

These Sino-American tech titans avoid each other in their home markets, and the recent bilateral trade frictions make it less likely for a fundamental clash to happen in these respective markets. In light of tariffs, quotas, and other trade barriers, the Trump administration bans China Mobile from acquiring access to the U.S. market due to national security concerns. In response to the recent M&A request of Ant Financial Group (an affiliate of Alibaba in China), the Trump administration vetoes Ant's acquisition of a U.S. payment firm. Several investment restrictions prevent Sino-U.S. tech titans from entering the uncharted territory on the other side of the northern hemisphere.

For this reason, these Sino-U.S. tech titans expand their reach and impact in third countries with high population dividends, such as Brazil, India, and Indonesia etc. FAANGs and BATs are now aggressively seeking both domestic and foreign M&A targets, especially unicorns or tech startups each with $1 billion market valuation. These unicorns tend to specialize in specific R&D innovations in order to package themselves for lucrative takeover deals.

As global income and wealth increasingly concentrate in the Sino-U.S. tech titans, consumer benefits manifest in the form of technological improvements. Whether this pecuniary concentration would exacerbate global economic inequality remains an open controversy. Rampant socioeconomic polarization and inequality may be the inevitable by-product of this income and wealth concentration in the Sino-U.S. tech titans. This trend raises a red alert due to grave antitrust concerns, and both U.S. and Chinese regulators and policymakers must attend to the key implications for better economic reform. The law of inadvertent consequences counsels caution.

 


If any of our AYA Analytica financial health memos (FHM), blog posts, ebooks, newsletters, and notifications etc, or any other form of online content curation, involves potential copyright concerns, please feel free to contact us at service@ayafintech.network so that we can remove relevant content in response to any such request within a reasonable time frame.

Blog+More

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Apple Boston

2020-05-21 11:30:00 Thursday ET

Blue-ocean strategists shift focus from current competitors to alternative non-customers with new market space.

Most blue-ocean strategists shift fundamental focus from current competitors to alternative non-customers with new market space. W. Chan Kim and Renee Ma

+See More

Warren Buffett places his $58 billion stock bets on Apple, American Express, and Goldman Sachs.

Rose Prince

2019-04-05 08:25:00 Friday ET

Warren Buffett places his $58 billion stock bets on Apple, American Express, and Goldman Sachs.

Warren Buffett places his $58 billion stock bets on Apple, American Express, and Goldman Sachs. Berkshire Hathaway owns $18 billion equity stakes in America

+See More

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022.

Peter Prince

2022-02-02 10:33:00 Wednesday ET

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022.

Our proprietary alpha investment model outperforms most stock market indices from 2017 to 2022. As of early-January 2023, the U.S. Patent and Trademark O

+See More

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America.

Olivia London

2018-09-11 18:36:00 Tuesday ET

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America.

President Trump tweets that Apple can avoid tariff consequences by shifting its primary supply chain from China to America. These Trump tariffs on another $

+See More

Federal Reserve institutes the third interest rate cut with a rare pause signal.

Daisy Harvey

2019-12-10 09:30:00 Tuesday ET

Federal Reserve institutes the third interest rate cut with a rare pause signal.

Federal Reserve institutes the third interest rate cut with a rare pause signal. The Federal Open Market Committee (FOMC) reduces the benchmark interest rat

+See More

Macro economic innovations and asset alphas show significant mutual causation.

Olivia London

2023-12-03 11:33:00 Sunday ET

Macro economic innovations and asset alphas show significant mutual causation.

Macro innovations and asset alphas show significant mutual causation. April 2023   This brief article draws from the recent research publicati

+See More