Competition Between Chinese and United States Companies in the Internet Market

Authors

  • Tomasz Bieliński University of Gdansk, Institute of International Business, Faculty of Economics, Department of International Economic Relations

DOI:

https://doi.org/10.18778/1641-4233.22.09

Keywords:

Internet, China, discrimination in trade, internet censorship

Abstract

World’s Internet market is dominated by the companies based in United States, but fast growing Chinese companies try to challenge them, and already took the second position. Their success is based on economies of scale and network effects gained thanks to their operations in the Chinese market. This two strategic advantages enable Chinese companies to successfully compete in the global Internet market. Research presented in this paper positively verifies hypothesis that PRC authorities contribute to the success of its companies through discriminatory practices, that do not allow foreign corporations to expand their operations in the Chinese market.

Downloads

Download data is not yet available.

Author Biography

Tomasz Bieliński, University of Gdansk, Institute of International Business, Faculty of Economics, Department of International Economic Relations

Tomasz Bieliński, Ph.D. is an adjunct in the Faculty of Economics of the University of Gdansk. He works for the Department of International Economic Relations in the Institute of International Business since 2009. His major scientific interests are: human capital, educational policy and innovation in China. In 2008 Tomasz Bieliński took part in the project of opening a new factory for the company Lipco in Guangzhou, China. In summer semester of 2014 participated in Chinese Min­istry of Education scholarship in Beijing Institute of Technology. In 2016 took part in the One Road One Belt scientific exchange programme at Shanghai International Studies University. Tomasz Bieliński is an author and co-author of 14 publications in Polish and English concerning the issues of international economic relations, human capital and innovation. He is also a co-worker of the Centre for East Asian Studies of the University of Gdansk.

References

Alibaba 2015 Annual Report. Shanghai: Alibaba Group Holding Limited, 2016.
Google Scholar

Amazon.com 2014 Annual Report. Seattle: Amazon.com Inc., 2015.
Google Scholar

Barak, Sylvie. China uncensors Wikipedia, “The Inquirer”. Web. 9 September 2016, http://www.theinquirer.net
Google Scholar

Bieliński, T., Chinese video game market as an opportunity for Polish game producers, “International Business and Global Economy”, no. 32 (2013), pp. 25–39.
Google Scholar

Bieliński, T., Potencjał konkurencyjności chińskich firm sektora Internetu, „Gdańskie Studia Azji Wschodniej”, no. 8 (2015), pp. 173–183.
Google Scholar

Cendrowski, Scott. Humbled Amazon turns to rival Alibaba for help in China, “Fortune”. Web. 6 March 2015, http://fortune.com/2015/03/06/humbled-amazon-turns-to-rival-alibaba-for-help-in-china/
Google Scholar

Dodson, Bill. China Fast Forward: The Technologies, Green Industries and Innovations Driving the Mainland’s Future. London: Wiley, 2012.
Google Scholar

eBay Inc. 2015 Annual Report. San Jose: eBay Inc., 2016.
Google Scholar

Erixon, Fredrik, and Hosuk Lee-Makiyama. Digital Authoritarianism: Human Rights, Geopolitics and Commerce, “Ecipe Occasional Paper”, no. 5 (2011), pp. 1–23
Google Scholar

Froman, Michael B.G., 2016 National Trade Estimate Report on Foreign Trade Barriers. Washington: Office of the United States Trade Representative, 2016.
Google Scholar

General Agreement on Tariffs and Trade (GATT 1947), 20 October 2016. Web. https://www.wto.org/English/docs_e/legal_e/gatt47_01_e.htm
Google Scholar

General Agreement on Trade in Services, 20 October 2016. Web. https://www.wto.org/English/docs_e/legal_e/26-gats_01_e.htm#articleXVII
Google Scholar

Greengard, S., Censored!, “Communications of the ACM”, no. 53.7 (2010), pp. 16–18.
Google Scholar

Holden, Kevin. Breaking Through China’s Great Firewall, “The Diplomat”. Web. 30 April 2014, http://thediplomat.com/2014/07/breaking-through-chinas-great-firewall/
Google Scholar

Hua, X., Xi stresses Internet innovation, security, “Xinhua”, 10 October 2016. Web. http://news.xinhuanet.com/english/2016–10/10/c_135741436.htm
Google Scholar

Kopp, C., Amazon faces hurdles in Chinese e-reader market, “USA Today”. Web. 11 June 2015, http://www.usatoday.com/story/tech/2013/06/11/amazon-chinakindle-yahoo-tmall/2411259/
Google Scholar

Lagerkvist, Johan. After the Internet, Before Democracy: Competing Norms in Chinese Media and Society. Bern: Peter Lang, 2010.
Google Scholar

Millward, Steven. Twitter is now worth less than its Chinese clone, “Tech in Asia”. Web. 26 October 2016, https://www.techinasia.com/twitter-worth-less-than-weibo-ouch
Google Scholar

Minter, A., Who Lost China? Amazon, “Bloomberg View”. Web. 10 September 2016, https://www.bloomberg.com/view/articles/2015–09–10/amazon-struggles-with-china-market-a-case-study
Google Scholar

Miranda, E., Chinese Internet Regulator: The Great Firewall Not a ‘Trade Barrier’, “Yibada”, 12 April 2016. Web. http://en.yibada.com/articles/115714/20160412/chinese-internet-regulator-the-great-firewall-not-a-trade-barier.htm#ixzz49tAdiJPV
Google Scholar

Rosencrance, Linda. Google says its Chinese searches were redirected to Baidu, “Computerworld”. Web. 14 September 2015, http://www.computerworld.com/article/2539441/networking/google-says-its-chinese-searches-were-redirected-to-baidu.html
Google Scholar

Santoro, Michael A., China 2020: How Western Business Can- and Should- Influence Social and Political Change in the Coming Decade. Ithaca, NY: Cornell University Press, 2009.
Google Scholar

Shirk, Susan, Bethany Allen-Ebrahimian, Emily Parker. It’s Official: Washington Thinks Chinese Internet Censorship Is a ‘Trade Barrier’, “Foreign Policy”. Web. 14 September 2016, http://foreignpolicy.com/2016/04/14/chinese-censorship-trade-barrier-great-firewall-ustr-business-trade-internet
Google Scholar

Tan, Jing and Stephan Ludwig. Regional Adoption of Business-to-Business Electronic Commerce in China, “International Journal of Electronic Commerce”, no. 20.3 (2016), pp. 408–39.
Google Scholar

Tan, Justin and Anna E. Tan. Business Under Threat, Technology Under Attack, Ethics Under Fire: The Experience of Google in China, “Journal of Business Ethics”, no. 110.4 (2012), pp. 469–79.
Google Scholar

TRIPS Part I – General Provisions and Basic Principles, 20 October 2016. Web. https://www.wto.org/English/docs_e/legal_e/27-trips_03_e.htm#art3
Google Scholar

Tung, Liam. Baidu taps Nokia’s Here for maps outside of China, “ZDNet”. Web: 15 December 2014, http://www.zdnet.com/article/baidu-taps-nokias-here-for-maps-outside-of-china/
Google Scholar

Wang, H.H., How EBay Failed In China, “Forbes”. Web. 9 September 2016, http://www.forbes.com/sites/china/2010/09/12/how-ebay-failed-in-china/#2eb28a697abf
Google Scholar

Wang, Wei. China’s Banking Law and the National Treatment of Foreign-Funded Banks. Abingdon: Routledge, 2013.
Google Scholar

Westland Christopher J. and Sherman So. Red Wired: China’s Internet Revolution. Singapore: Marshall Cavendish, 2010.
Google Scholar

Wong, John, Ling Kim, Seok Nah. China’s Emerging New Economy: The Internet and E-Commerce. Singapore: Singapore University Press, 2000.
Google Scholar DOI: https://doi.org/10.1142/4588

Statistical Report on Internet Development in China February 2015. China Internet Network Information Center, 2015.
Google Scholar

Baidu Baike. Web. 24 October 2016 http://baike.baidu.com/
Google Scholar

China E-Commerce Q1 2015 Market Stats, “Social Brand Watch”. Web. 14 September 2016, http://socialbrandwatch.com/china-e-commerce-q1–2015-market-stats/
Google Scholar

China Search Engine Market Overview 2015. “China Internet Watch”. Web. 18 April 2016, http://www.chinainternetwatch.com/17415/search-engine-2012–2018e/
Google Scholar

Google Finance, “Google”. Web. 5 March 2016, https://www.google.com/finance
Google Scholar

Google Will Take 55% of Search Ad Dollars Globally in 2015, “Emarketer”. Web. 31 March 2015, http://www.emarketer.com/Article/Google-Will-Take-55-of-Search-Ad-Dollars-Globally-2015/1012294
Google Scholar

Hudong. Web. 16 September 2015, http://www.baike.com/
Google Scholar

Most famous social network sites worldwide as of September 2016, ranked by number of active users (in millions), “Statista”. Web. 27 October 2016, http://www.statista.com/statistics/272014/global-social-networks-ranked-by-number-of-users/
Google Scholar

Report: What’s behind the global success of Alibaba’s AliExpress, “Evigo”. Web: 27 May 2016, https://evigo.com/16165-report-whats-behind-global-success-alibabas-aliexpress
Google Scholar

Statistics, “Wikipedia”. Web. 9 September 2015, http://en.wikipedia.org/wiki/Main_Page
Google Scholar

The top 500 sites on the web, “Alexa”. Web. 25 October 2016, http://www.alexa.com/topsites
Google Scholar

Youkou Tudou, “Google Finance”. Web. 10 October 2016, https://www.google.com/financ
Google Scholar

Downloads

Published

2018-11-09

How to Cite

Bieliński, T. (2018). Competition Between Chinese and United States Companies in the Internet Market. International Studies. Interdisciplinary Political and Cultural Journal, 22(1), 137–152. https://doi.org/10.18778/1641-4233.22.09