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  • Among the top 10 most valuable tech companies globally are two China tech giants

  • with many more up and coming startups making their presence felt.

  • The industry has become a serious rival to Silicon Valley, but there are political hurdles ahead.

  • This is your Bloomberg QuickTake on China's tech giants.

  • Early on, Chinese companies like Tencent had a reputation for being copycats.

  • Its QQ instant messaging app originally looked a lot like icq - a popular messaging app used in the U.S.

  • I would say 90% of them all got their original aspiration from a U.S. equivalent.

  • Sina, for example, their portal business was an equivalent of Yahoo.

  • Weibo was an equivalent of Twitter.

  • Alibaba- people would say that their model was a hybrid of eBay and Amazon.

  • And so the list goes on.

  • Comparisons are now harder to make.

  • Tencent's 1 billion strong messaging app WeChat has grown from simply a texting app,

  • to a platform for shopping, flirting, dating, watching videos, playing games, and ordering food and taxis

  • There's no U.S. equivalent.

  • Since the introduction of the internet in China,

  • the government has controlled the web with a complex system of censors and gateways known as The Great Firewall.

  • This has effectively quarantined China's technology ecosystem,

  • blocking access to the likes of Facebook, Twitter, and Instagram.

  • That's enabled locals to develop services without competition from abroad and build platforms with a uniquely Chinese flavor.

  • And because of China's large population, whose internet users more than double the entire U.S. population...

  • the companies grew to be massive.

  • They became so successful that some U.S. companies are taking note.

  • I think a lot of people would point to Facebook trying to copy the WeChat model,

  • where they are allowing third parties to open e-commerce stores,

  • third-party games being introduced to the platform.

  • But there's increasing pushback.

  • Donald Trump: “China...they're draining us, they're taking our money, they're rebuilding themselves...”

  • President Donald Trump says China is stealing overseas know-how and has imposed tariffs.

  • Bloomberg Businessweek uncovered that the Chinese even planted chips in computers for potential hardware hacks.

  • Two years ago we were seeing a lot of investment M&A activity into technology in Silicon Valley from Chinese companies.

  • That's all been put on brakes ever since the trade war.

  • Yet Chinese tech company names that only recently drew blank stares outside China are becoming increasingly familiar.

  • Take Huawei,

  • it reached a pinnacle in 2018 by overtaking Apple in smartphone share globally.

  • But for China's big tech companies to keep expanding,

  • they'll need to convince other nations that they mean no harm.

Among the top 10 most valuable tech companies globally are two China tech giants

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