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

Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons.

Joseph Corr

2018-07-13 09:41:00 Friday ET

Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons.

Yale economist Stephen Roach warns that America has much to lose from the current trade war with China for a few reasons. First, America is highly dependent

+See More

Buffett discusses Berkshire's cash ambition, its reinsurance business, and his succession plan.

Becky Berkman

2018-02-23 09:35:00 Friday ET

Buffett discusses Berkshire's cash ambition, its reinsurance business, and his succession plan.

Warren Buffett releases his annual letter to Berkshire Hathaway shareholders as of February 2018. Buffett discusses Berkshire's core cash ambition, its

+See More

AYA finbuzz podcast offers fresh insights into the latest stock market issues and economic trends for better and wiser investment decisions.

Daphne Basel

2019-07-31 11:34:00 Wednesday ET

AYA finbuzz podcast offers fresh insights into the latest stock market issues and economic trends for better and wiser investment decisions.

AYA Analytica finbuzz podcast channel on YouTube July 2019 In this podcast, we discuss several topical issues as of July 2019: (1) All 18 systemical

+See More

CEO overconfidence and corporate performance

Laura Hermes

2022-11-05 11:32:00 Saturday ET

CEO overconfidence and corporate performance

CEO overconfidence and corporate performance Malmendier and Tate (JFE 2008, JF 2005) argue that overconfident CEOs are more likely to initiate mergers an

+See More

President Trump floats generous 10% tax cuts for the U.S. middle class ahead of the November 2018 mid-term elections.

Jacob Miramar

2018-10-21 14:40:00 Sunday ET

President Trump floats generous 10% tax cuts for the U.S. middle class ahead of the November 2018 mid-term elections.

President Trump floats generous 10% tax cuts for the U.S. middle class ahead of the November 2018 mid-term elections. Republican senators, congressmen, and

+See More

AYA fintech finbuzz analytic report on the global macro economic outlook Summer-Fall 2019

Andy Yeh Alpha

2019-08-07 08:32:00 Wednesday ET

AYA fintech finbuzz analytic report on the global macro economic outlook Summer-Fall 2019

Our fintech finbuzz analytic report shines fresh light on the current global economic outlook. As of Summer-Fall 2019, the current analytic report focuses o

+See More