Did you know that the technology world is approximated worth around $400 billion? This list includes well-known American firms such as Amazon, Facebook, Microsoft, Google and Apple. Chinese companies also contribute a substantial amount to the $400 billion. For instance, two Chinese companies that used to dominate the home market are now rising to become worldwide entities. These two companies are Tencent Holdings and Alibaba Group. At the moment, these two companies are the most highly valued companies that are publicly owned in the world. This means that they are twice valuable compared to some American companies such as IBM, Cisco and Intel. These two companies have made their fortune by concentrating their activities in homeland China. This is unlike American entities that operate across the globe. However, these Chinese companies serve a huge population of close to 700 million internet users. Compared to the United States, the Chinese population spends more money on the internet than Americans. The rise of Alibaba and Tencent has taken place in a market that has a controlled internet. For instance, China does not allow its citizens to access Facebook. Over the years, China has recorded a stable growing economy.
However, it has emerged that the Chinese market also has its own problems such as reliance on steel and heavy debts. Despite these problems, Alibaba and Tencent were able to record results that left the investors amused. All cities around the world have been expected to produce the next Silicon Valley. From the look of things, this mantle is likely to be passed to China due to the number of successful start-ups that are being launched in the country. Hans Tung who is the managing partner at a company called GGV Capital says that China has reached the point where they have matched the US on aspects of internet space. Alibaba and Tencent have been able to record this growth as there are few options where the Chinese can do some shopping or entertainment. This is unlike the US where they are spoilt for choices. At the moment, Tencent is rivalling Facebook on the number of users. At the moment, WeChat, which is a messaging app by Tencent has a monthly active user base of 960 million people. As for Alibaba, it has over 500 million monthly users. These two companies are recording fast growths compared to Alphabet and Facebook. Alphabet is a subsidiary of Google.