China has a sitting online community of 649 million* Chinese more than double the number of American internet users. China's current population of 1.3 billion are propelling the world's second largest economy forward at an incredible pace. It is estimated that the Information Technology and Communications market will be worth USD $465 bn this year, according to market intelligence firm IDC, 40% of total global growth. By 2018, Morgan Stanley estimates more online transactions will occur in China than in the rest of the world combined. To quote Jeremy Goldkorn, who runs a media research company focused on China "We're basically living in the world of the Chinese Intranet." E-commerce king Alibaba scored the largest IPO in Wall Street; Taobao, serviced by the Alipay payment system outsells Amazon and eBay combined and Tencent, Alibaba's rival and designer of games and messaging service WeChat, reached a market cap of USD $185 bn (more than IBM's to put it in perspective. In Dec 2014, Xiaomi was valued at approximately USD $45 bn making it one of the most valuable tech start up.
The internet and e-commerce market is estimated to be around USD $2 tn and still growing.
EAST vs. WEST ONLINE (see Chart)
China's domestic champions fast catching up to US tech companies and in some cases like Alibaba , taking the lead. Here are some of the leading Market cap sizes:
|Baidu USD $ 71 bn||Google USD $359 bn|
|Tencent USD $185 bn||Facebook USD $226 bn|
|Alibaba USD $219 bn||Amazon USD $198 bn|
References: * Reuters article Feb 3 2015 China Internet Network Information Centre (CNNIC) Feb 2015 Report Sources: Time Magazine June 22 2015 “The Other Side of the Great Firewall” Hannah Beech, Beijing http://www.reuters.com/article/2015/02/03/us-china-internet-idUSKBN0L713L20150203