4 Facts You May Not Know About Why China Has Emerged as a Tech Leader

1. Silicon Valley seems to be increasingly viewing China as a laboratory for future innovation.

  • Google established an AI lab in Beijing in 2017.
  • In 2018, Google formed an alliance with Tencent on cloud services.

2. Since 2013, the growth of China’s “Big Three” tech companies has far eclipsed that of the US’ Big Three.1

In 2013:

Since then:

  • Amazon, Facebook & Google had a combined market cap of $500B.  
  • China’s Tencent and Baidu had a market cap of $100B (Alibaba’s IPO was still a year away).
  • The combined value of Amazon, Google and Facebook has risen 5x.
  • The combined value of Alibaba, Baidu and Tencent has risen 9x.

3. In 2017, China was responsible for 32% of the world’s new unicorns (private companies valued at $1B+). See Figure 1.

Figure 1: China’s share of global unicorn formation is growing
Percent of global unicorns (companies valued about $1 billion) founded in China

China’s share of global unicorn formation is growing
Sources: CB Insights, Technode, China Money Network, as of February 2019

4. Several Chinese tech companies are the world’s largest in their space — and they have diverse businesses.2

  • Alibaba is the world’s largest e-commerce platform, dwarfing Amazon’s global market value by 3X, as of calendar year 2018. It’s also the world’s third-largest advertising platform after Google and Facebook.
  • Tencent may be the world’s largest gaming company, but it also has more than a billion monthly active users on its social networking platforms, as of June 2019.
  • Meituan is China’s largest food delivery platform, and it is also the largest domestic hotel booking service by volume, as of June 2019.

the full Why
China is a new nexus of innovation and creativity


As of 9/30/19, Alibaba represented
7.2% of Invesco Oppenheimer Developing Markets Fund’s assets; Baidu, 0%;
Meituan, 2.4 %; and Tencent, 2.94%. The fund has zero assets in Amazon,
Facebook, and Google.

  1. Source:
    Bloomberg L.P. Companies’ current capitalization is the average for calendar
    years 2013 and 2018.
  2. Source:
    Bloomberg L.P., Alibaba data is for calendar year 2018, Tencent and Meituan
    data as of June 2019.

Blog Header Image: DuKai / Getty Images

The opinions
expressed are those of Justin Leverenz and
Bhavtosh Vajpayee.
Their views are based on
current market conditions and are subject to change without notice. These
opinions may differ from those of other Invesco investment professionals.

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subject to change and are not buy/sell recommendations.

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