There are a few major differences in how China is doing tech that are a little terrifying if you’re a Silicon Valley company that wants to compete (thread)
1. They work harder.
The standard schedule of a Chinese tech employee is what they call “9-9-6”; 9 AM to 9 PM, 6 days a week
If you even joked about requiring 9-9-6 in Silicon Valley you would have people running for the exits
wsj.com/articles/long-…
The standard schedule of a Chinese tech employee is what they call “9-9-6”; 9 AM to 9 PM, 6 days a week
If you even joked about requiring 9-9-6 in Silicon Valley you would have people running for the exits
wsj.com/articles/long-…
2. Regulation is not an issue
In the US one of the most likely killers of revolutionary tech startups is regulation.
In China the government is often a first investor, first customer, and is the entity that pushes companies forward as much as anything else
In the US one of the most likely killers of revolutionary tech startups is regulation.
In China the government is often a first investor, first customer, and is the entity that pushes companies forward as much as anything else
3. They take a hyper-analytical viewpoint and don’t worry about copying
When I was in Beijing we met with the Chinese Airbnb. When they noticed that Airbnb was working they hired 100 people and cranked out feature parity in a few months, and were unashamed of that
When I was in Beijing we met with the Chinese Airbnb. When they noticed that Airbnb was working they hired 100 people and cranked out feature parity in a few months, and were unashamed of that
4. They have a much, much greater supply of STEM workers
China has 4x the population but 10x the tech employees. Ordinary software engineers get paid living salaries but not what they get paid in the US.
China has 4x the population but 10x the tech employees. Ordinary software engineers get paid living salaries but not what they get paid in the US.
5. There’s a lot of capital with nowhere else to go
This is true in the US as well, but in China you not only have practically zero interest but a law that makes it difficult to get money out.
Every VC backed company has an investment arm, and multiples are *higher* in China
This is true in the US as well, but in China you not only have practically zero interest but a law that makes it difficult to get money out.
Every VC backed company has an investment arm, and multiples are *higher* in China
6. They have incredible ecosystems to build into
I’ve never seen anything like WeChat. You use it for literally everything, from paying bills to connecting with friends.
QR codes are everywhere and actually used, and people expect it
I’ve never seen anything like WeChat. You use it for literally everything, from paying bills to connecting with friends.
QR codes are everywhere and actually used, and people expect it
7. They don’t fear hardware (or atoms generally)
Companies were baffled that SV has such a hard time with hardware. It’s no more difficult in their eyes to ship atoms than bits.
Companies were baffled that SV has such a hard time with hardware. It’s no more difficult in their eyes to ship atoms than bits.
Put all those things together with good ol’ regulatory uncertainty, and it’s difficult to imagine any US company winning a Chinese market.
Then you remember that the market is bigger there and growing, and it will likely always be the case that their tech scene is bigger
Then you remember that the market is bigger there and growing, and it will likely always be the case that their tech scene is bigger
