A blog by @ooak
It's a place for me to give birth to my thoughts. Meta thoughts about "Steemit", external thoughts about life and experiences. My aim is to bring value to people, entertain the audience and craft my writing skills all at the same time. I will write short to medium size blogs because I believe that today more than ever time is money and attention is hard to get.
I just read that Uber the multi-billion dollars start up is selling its business in China to its Chinese rival "Didi Chuxing". Uber and Didi had a vicious battle to control the hugh Chinese market. It is told that Uber lost $2 billion. They decided to cut their losses and pull out of China.
For me it shows that china is a closed Eco-system. Almost no outside business can succeed there. And if they will try than they will get a local copy-cat. It will receive funds from other big Chinese VC's or businesses such as Alibaba and Tencent or maybe even the government. Eventually out lasting their opponents.
It reminded me of a story where around 2010 there was a big battle between solar panel manufactures around the world to control the industry. The Chinese government decided they want to control the market. They decided with the help of local banks to start subsidizing the local market of solar panels manufactures. According to US officials the government subsidized amounted to about $30 Billion. With that money manufactures started flooding the worlds markets with cheap solar panels. So cheap that European or NA manufactures couldn't compete with those costs driving them to close doors. It worked. the Chinese government kept subsidizing until it had world domination. They protected the growth of local manufactures.
There are many examples of Chinese companies beating foreign companies who seeks a piece of the Chinese market. Alibaba, Tencent, Huawei and now Didi are just examples of big Chinese companies that beaten U.S companies who dominated the world's markets.
My opinion companies needs to stop and learn from others and just partner with local companies to win a piece of the Chinese pie. Many companies are affected by hubris where they think that if they control other market they can win the closed Eco-system of the China.
Shower Thought: Can Steemit win the Chinese market or will it will be copied there.
