After interning in a tech company for several months, I came up with some reflection of the current situation of tech companies in China…

Unconventional Chinese Tech Company

During my internship, in addition to technical learning, I had the opportunity to hear many experts’ perspectives and complaints while having lunch. After integrating their insights with my own understanding of the industry, I have come up with some new ideas.

Firstly, let’s examine the major internet techn companies in China. Many of their businesses are primarily focused on service-related industries and lack substantial technological elements. For example, Alibaba’s major product, Taobao, and JD’s main business are in the e-commerce sector. ByteDance’s popular app, TikTok, and other short video platforms primarily operate in the content domain. Tencent and NetEase, well-known companies, are mainly focused on e-entertainment. These are essentially products that utilize the internet as a medium to provide services rather than being true high-tech products. Therefore, in my opinion, these large Chinese companies are better described as internet companies rather than tech companies.

Furthermore, let’s consider the current trend of large language models (LLMs). Although these leading companies are actively seeking to apply them, concerns about information leakage have prompted many of them to develop their own LLMs. This, to some extent, has slowed down the pace of Chinese internet companies aligning with mainstream global technologies.

Looking at the diverse range of businesses operated by Chinese tech giants, they are unique in some ways. For instance, you can watch short videos on shopping apps like Taobao or order food delivery on short video platforms like TikTok. This phenomenon reflects, to a certain extent, that the products of Chinese internet giants are a blend of various service industries, sometimes too many.

As for why this phenomenon occurs in China, I have my own relatively simplistic views. I believe the fundamental reason is that seizing the market is the top priority for these companies. In such a massive domestic market, even if they capture a small share, they can still have a large customer base, resulting in significant profits. The service industry, being closely tied to the general public, is the easiest industry to exploit the market. Additionally, the characteristic of blending various services is precisely because major internet companies have a market-seizing demand. For them, having a broader range of apps often leads people to rely on a single app, making it easier for them to dominate the market.

Of course, the views expressed above are from a shallow perspective of a university student who has only interned in the tech industry for several months. Therefore, those may be subjective and lack comprehensive insights. They should be taken as a reference and I welcome further discussion on the topic.