A strong shift from real estate tycoons to IT-giants marks a shift at China’s economy in the ongoing political meetings in Beijing, says author Shaun Rein of The War for China’s Wallet: Profiting from the New World Order to the South China Morning Post. “China is picking five to 10 private technology companies to make them national champions.”
The South China Morning Post:
Technology is already a major contributor to China’s economy, underscored by the dominance of internet-based businesses and online advertising. China accounts for US$1 out of every US$4 dollar generated globally across application stores, according to analytics company AppAnnie, with Chinese app users spending more than 200 billion hours in apps in the fourth quarter of 2017, more than 4.5 times more than the next largest market India, and way ahead of the US in third place.
“China is picking five to 10 private technology companies to make them national champions, while also giving them the roles that were formerly assigned to state companies, including the collection of information, big data sharing, and censorship,” said Shaun Rein, the managing director of Shanghai-based market intelligence company China Market Research and author of The War for China’s Wallet: Profiting from the New World Order.
More than 20 property tycoons have dropped out as delegates to China’s legislative and consultative conference this year.
Among them are Hu Baosen, chairman of construction firm Jianye Group, Longfor Properties’ chairman Wu Yajun, Yuexiu Group’s chairman Zhang Zhaoxing, New World Development’s chairman Henry Cheng Kar-shun, Shui On Group’s chairman Henry Lo Hong-sui, and Fosun Group’s chairman Guo Guangchang, whose conglomerate includes a property business.
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