The Chinese-Americans living in the United States have been a minority for more than a century, and their history is part of our country’s history.
But now the Chinese-owned businesses and companies are competing with American firms in the country’s booming technology and health sectors, as well as in other industries that have traditionally been dominated by whites.
The recent announcement of a new Chinese-made company, Chinese-themed tech company CNET, will bring the number of Chinese-branded companies in the U.S. to more than 60, according to the Brookings Institution, a Washington think tank.
The move could signal that the Chinese market is gaining traction.
As of now, the Chinese companies in U.s. retail are mostly American, but the new company, which will be based in California, will have access to Chinese-language language and products.
In addition to Chinese products, the new CNET will include products from Chinese-based companies like Tencent and Xiaomi.
In the future, Chinese companies will also be able to offer their products to the U, said Matthew Wu, a senior fellow at the Brookings.
“We can look at Chinese companies and say, ‘How can we get our products into the U., how can we reach consumers in the US?'”
Wu said.
While the announcement is good news for Chinese-owners in the market, it could be problematic for other Chinese-focused companies.
Wu said that companies with a history of Chinese competition may not be interested in working with CNET.
“A lot of those companies might be thinking, ‘Oh, we’re just going to go down this path and not work with a Chinese company because there are Chinese competitors,” Wu said, adding that Chinese-controlled companies would likely be more likely to partner with Chinese-led companies, even if the companies have a history with Chinese competition.
One major concern is whether the new Chinese company will be able access the American markets that have long been dominated exclusively by Chinese-affiliated companies.
“Chinese-owned companies are often perceived as being more innovative, so it’s not uncommon for a Chinese-related company to get acquired by a Chinese competitor,” Wu told The Huffington Post.
“But there’s a difference between a Chinese corporation acquiring a Chinese product and a Chinese individual acquiring a foreign-owned product.”
China’s growing presence in the American market could also pose problems for other Asian companies.
Chinese companies in India have been growing fast in recent years, but there are concerns that they are also taking advantage of American consumers, Wu said., an executive director of the American Chamber of Commerce for Chinese American Businesses, told the New York Times that he worries that a Chinese investment into an American business will ultimately make American-owned Chinese companies less attractive to foreign investors.
“That’s what we’re seeing in India and elsewhere.
They’re buying American- owned Chinese companies because they want to bring their brand to the US,” Wu added.
China also has its share of homegrown businesses, such as the online video platform WeChat, which is owned by Facebook, which recently announced a $1 billion investment in the company.
Many Chinese-born American companies are trying to capitalize on the American marketplace and have been doing so.
For example, Alibaba Group Holding Group and WeChat have recently invested in a number of American startups.
The Alibaba Group has even purchased a controlling stake in a California-based music streaming service called Tidal.
In addition to its Chinese businesses, the U’s largest Chinese-built firm, Shanghai Jiaotong Group, has a large presence in America, with more than 1,000 employees.
But the rise of Chinese companies is likely to hurt the Chinese American community in the future.
“It is clear that there is a growing market for Chinese brands, especially with the rise in Chinese investment in US companies,” Wu concluded.
“That means there is more opportunity for Chinese companies to take advantage of the US market, but we also need to keep in mind that the vast majority of these Chinese companies are owned by Chinese people, so they are likely to be more focused on American brands than on Chinese ones.”
Follow Josh Rogosin on Twitter at @joshrogo and @BarronsTheStreet
