中国在国际数字经济中的竞争力（英）-ITIF-2020.11-24页_268kb

Summary of Chinese Competitiveness in the International Digital Economy

Core Content

This report discusses the rapid growth and global expansion of Chinese digital firms, highlighting their state-backed strategies and the implications for the U.S. digital economy. It emphasizes how China's approach to digital innovation—copying foreign technologies, restricting foreign firms' access, and supporting domestic champions—has enabled its firms to dominate the domestic market and begin capturing international market share.

Main Points

1. China's Digital Strategy

• China's "China First" strategy involves copying foreign technology, restricting foreign firms, and supporting domestic companies with subsidies, favorable policies, and access to data.
• This approach has been highly successful, leading to the emergence of powerful domestic firms like Baidu, Alibaba, and Tencent (BAT).
• Chinese firms are now expanding globally, threatening U.S. economic interests such as jobs, exports, and GDP.

2. U.S. Response

• The U.S. should adopt a principle of reciprocity, granting Chinese firms access to its digital markets only if China provides equal access to U.S. firms.
• U.S. regulators should also reconsider antitrust actions that may hinder U.S. firms' global competitiveness.

3. Digital Economy Overview

• The digital economy is a key driver of growth and innovation, with U.S. firms historically leading in this space.
• China's digital economy is massive, with online retail transactions reaching $1.5 trillion in 2019, which is 25% of the nation's total retail transactions.

4. Chinese Tech Giants: BAT

• Baidu, Alibaba, and Tencent are the dominant players in China's digital economy.
• They have made significant acquisitions, primarily within China, with only a few non-Chinese targets.
• These firms have also developed "super apps" with integrated mini programs and payment systems, enhancing user engagement and data collection.

5. International Market Share

• Chinese firms have made inroads into international markets, especially in e-commerce, cloud computing, and financial services.
• In e-commerce, Alibaba has expanded through acquisitions and partnerships, particularly in APAC and Europe.
• In cloud computing, Alibaba and Tencent have focused on the Asia-Pacific region, with Alibaba securing a significant presence in several countries.
• In financial services, Alipay and WeChat Pay have expanded globally, with Alipay operating in 56 markets and WeChat Pay in 49 countries and 17 currencies.

6. Challenges and Barriers

• Chinese firms face challenges in expanding into Western markets due to regulatory and national security concerns.
• The U.S. has blocked some Chinese acquisitions, such as Ant Financial's attempt to buy MoneyGram in 2017.
• Despite these hurdles, Chinese firms continue to invest in international markets, especially in developing economies.

Key Information

• E-commerce Growth: China's e-commerce market is significantly larger than the U.S., with Alibaba leading the charge internationally.
• Super Apps: WeChat and Alipay are prime examples of "super apps" that integrate multiple services and dominate the digital landscape in China.
• Cloud Computing: Alibaba leads in China's cloud infrastructure market, but its global market share is much smaller than AWS.
• Financial Services: Alipay and WeChat Pay have expanded into numerous international markets, supported by strategic investments and partnerships.
• Reciprocity Principle: The report recommends that the U.S. and its allies adopt a reciprocal approach to digital market access to counter Chinese expansion.
• State Support: Chinese firms receive extensive support from the government, including financial incentives, favorable policies, and data advantages.

Conclusion

While Chinese digital firms have dominated their domestic market through a combination of copying foreign technology and state-backed support, their international expansion is still in its early stages. The U.S. faces a significant challenge in maintaining its global leadership in the digital economy, as Chinese firms increasingly compete in international markets. The report calls for a strategic and reciprocal response to safeguard U.S. economic interests.