US-China tech war: geopolitical tension haunts tech start-ups seeking to be the next TikTok
- Geopolitical tension between the world’s two largest economies is going to become more pronounced, according to investors and analysts
- Chinese tech start-ups should avoid the United States and consider alternative markets if they can, one venture capitalist said
Mainland technology companies and entrepreneurs should brace for rising geopolitical tension between China and the US, and look for opportunities in new markets, investors and analysts warned.
Chinese internet companies venturing abroad need to broaden their geographical diversity to hedge against risks in the US market, Ben Harburg, managing partner of MSA Capital, said in an interview with the Post on the sidelines of the Fortune Forum on Thursday in Guangzhou, the capital of eastern Guangdong province.
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“A lot of the actions that the US government has taken started off under the umbrella of national security, but the reality is that a lot of them are more about protectionism and protecting American incumbents.”
Beijing-based MSA Capital has advised its portfolio companies to avoid the US market as early as six years ago, and to explore new markets such as Southeast Asia and Europe, Harburg said.