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

Internal capital markets and financial constraints

Charlene Vos

2022-10-15 09:34:00 Saturday ET

Internal capital markets and financial constraints

Internal capital markets and financial constraints Duchin (JF 2010) empirically finds that multidivisional firms with robust internal capital markets ret

+See More

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy.

Dan Rochefort

2019-01-02 06:28:00 Wednesday ET

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy.

New York Fed CEO John Williams listens to sharp share price declines as part of the data-dependent interest rate policy. The Federal Reserve can respond to

+See More

Can the Chinese renminbi become the next dual global reserve currency in addition to the American dollar?

Daphne Basel

2020-08-01 07:28:00 Saturday ET

Can the Chinese renminbi become the next dual global reserve currency in addition to the American dollar?

Technological advances, geopolitical risks, and pandemic outbreaks cannot shake investor confidence in the American dollar as the global reserve currency.

+See More

Foxconn invests $10 billion in a new manufacturing plant for LCD display panels in Wisconsin.

Chanel Holden

2017-07-13 08:35:00 Thursday ET

Foxconn invests $10 billion in a new manufacturing plant for LCD display panels in Wisconsin.

President Donald Trump has announced that a major Apple iPhone upstream supplier, Foxconn Technology Group (aka Hon Hai Precision Group), will invest $10 bi

+See More

American allies assist AT&T and Verizon in implementing 5G telecommunication technology.

Daisy Harvey

2019-01-01 03:34:48 Tuesday ET

American allies assist AT&T and Verizon in implementing 5G telecommunication technology.

American allies assist AT&T and Verizon in implementing 5G telecommunication technology in the U.S. as such allies ban the use of HuaWei 5G telecom equi

+See More

The Trump $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike.

Joseph Corr

2018-03-15 07:41:00 Thursday ET

The Trump $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike.

The Trump administration's $1.5 trillion hefty tax cuts and $1 trillion infrastructure expenditures may speed up the Federal Reserve interest rate hike

+See More