December 2013
Internet Companies: A Trinity Of Equals?
CEQ examines the state of the Chinese internet, with a focus on the Big Three internet companies: Alibaba, Tencent and Baidu. Despite continued government crackdowns on online discussion, China’s internet is booming: 600m people are online, including approximately 450m using mobile devices, and ecommerce may account for close to 10% of total retail sales in 2013. Nearly all this economic activity flows through private companies, including more than 20 firms listed overseas with a combined market capitalization approaching US$300bn. When Alibaba eventually follows, probably in the spring or summer of next year, it will join Tencent and Baidu as one of the most valuable internet companies in the world. We assess the individual strengths and weaknesses of China’s trinity of internet companies, and predict which are best placed to benefit from the shift to mobile devices.
Also in this issue:
- Andrew Batson and Thomas Gatley contend that income inequality is narrowing
- Michael Komesaroff explains why we should care about China’s potash deal with Russia
- Paul French argues that traditional retailers must find an online strategy or die
- Rosealea Yao predicts that the volume of demolitions is set to decrease
- Chao Gupiao is optimistic about stock-market reform
- Professor Ran Tao argues that healthy GDP growth is a prerequisite of economic reform
- Tom Miller reports both on Shenzhen’s land reforms and on ghostly developments in small cities
- Simon Cartledge reviews a revealing, on-the-ground account of the messy world of Chinese shadow banking