Inside China Tech: who wins from India’s pushback on Chinese technology?
- Analysts say a backlash against China tech in India has created opportunities for US firms to fill the void
- Chinese smartphone brands are still dominating the market, at least for now, although shipments on the whole have suffered due to Covid-19
Good morning, this is Melissa Zhu from SCMP’s tech desk in Hong Kong rounding up some of our most important stories this week.
US firms, which already have a strong foundation in India, are among the most well-positioned to benefit from the backlash against Chinese technology.
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Analysts say US firms’ big expansion into the Indian market was bound to happen anyway, with the Google and Facebook investments in Jio Platforms just two recent examples of that trend.
The fact that India’s policymakers became wary of Chinese tech and gravitated towards the US did not come as a surprise to some analysts. “A lot of Chinese thinking is around the fact that India is going to move towards the US anyway,” said Dev Lewis, a fellow at Hong Kong-based think tank Digital Asia Hub.
“When you look at the last few months, it's very clear that the Indian tech ecosystem is a natural partner with the US. And no matter how much Chinese investment has come in so far, that's not going to change that dynamic,” he added.
However, some analysts said Chinese venture capitalists tend to understand the challenges of developing market economies better than US capital – so some Indian start-ups may still prefer working with Chinese investors.
Read the analysis by Josh Ye:
China tech’s setbacks in India create opportunities for US firms
Chinese smartphones still top
Overall, Covid-19 has hit the Indian smartphone market hard: shipments fell 48 per cent to 17.3 million units in the second quarter of 2020 amid an unprecedented shutdown of the economy from March to mid-May.
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Canalys research analyst Adwait Mardikar said local vendors are driving a “Made in India” message to consumers and eager to position their brands as “India-first”.
However, he added: “Despite the sentiment, the effect on Xiaomi, Oppo, Vivo and Realme is likely to be minimal, as alternatives by Samsung, Nokia, or even Apple are hardly price-competitive.”
The full story, by Jane Zhang:
India smartphone market shrinks by nearly 50 per cent amid pandemic
TikTok courting US creators
The fund, open to applications from US creators above 18 starting in August, will initially target influencers such as teachers and livestreamers and help all video makers collaborate on paid campaigns with brands, the company said Thursday.
The US is TikTok’s third-largest market, contributing 8.2 per cent of new installations from January to June, after India and Brazil, which accounted for 27.6 and 9.6 per cent respectively, according to Sensor Tower.
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TikTok has long been accused of lacking in rewards for content creators. Unlike YouTube which allows creators to monetise content from ads on the platform, TikTok influencers only receive tips during live streams, which is a very small part of the video content.
The new fund aims to “realise additional earnings” for creators and “encourage those who dream of using their voices and creativity to spark inspirational careers,” TikTok’s US general manager Vanessa Pappas wrote in a post on its website.
Coco Feng has more:
TikTok offers US creators a US$200 million fund amid political backlash
