There is a saying that innovation in the Chinese IT industry stopped after 05. When you compare the value of Chinese companies and the United States market, it is clear that iT companies in the United States continuously emerge over time. These companies respond to consumer needs and wants in a variety of niche and market segments even after giants like Google, Amazon and Facebook have entered the market. In China, however, the market is dominated by a few big players - Baidu, Alibaba and Tencent, also known as giant BAT - and no significant new companies have entered since 05.
What happened in 05?
is now you have probably heard of the Great Firewall (GFW), a barrier that prevents Chinese Internet users to easily interact with the outside world. Unfortunately, the great firewall is just part of the overall control strategy of the Chinese government. The official name for the entire complex infrastructure monitoring and censorship is called the "Golden Shield", which is apparently a way to keep hackers and other rogue elements to harm the Chinese Internet. The Golden Shield project aims to monitor all levels of information flow in the country and across the borders of China. It was in 05 that the great firewall completed his first term building and started full operation, which is identical to the timing when new companies have ceased to enter the market.
So how the Great Firewall is the influence of the Chinese IT industry?
Web censorship pushes competition from powerful international companies and gives local actors some room to maneuver, but an alarming result of censorship is that the giants of home computing form monopolies. These monopolies control the market and acquire startups when they spot a good idea, making it very difficult for new firms to enter. For example, Baidu now dominates 80% market share of search engines from Google left China because of censorship. Youku has prevailed since YouTube is blocked. And it is in the same situation with Weibo, because Twitter is blocked. The Internet connection was strangled Dropbox that nobody uses, and accordingly Seasun has become the leader in storage service providers online. So every startup business must ask a question: What would I do if one of the giants of BAT comes after my ideas and my copy products
Monopoly is not entirely made following online censorship, of course. Chinese regulations are still in the process of exploration and development, and are not effective to prohibit monopolies and discern the violation of copyright. On the other hand, not being able to access the latest information and exchange ideas in the world, because of censorship, finally will be a huge loss for entrepreneurs from home. In January 2013, the Chinese government blocked temporarily GitHub, an open-source website where programmers around the world create and discuss projects, which is also home to many Wall Software escape. "GitHub is the main tool that programmers learn and keep track of international trends ... censor Chinese programmers only result being left, losing competitive edge and vision," said Lee Kaifu by, founder of Innovation Works Beijing-based-has innovation incubator. at various times, the Chinese government has blocked similar technical websites, including Python, Google Code and Mashable. GitHub was released a few days later, after the huge protest on Internet, but the potential to be blocked always exist for each and every site.
the pervasive web censorship in China also increases the operating cost of startup businesses. It does not affect the common costs such as equipment, lease or rental, but greatly increases the costs associated with research workarounds to bypass the huge censorship of the national Internet of China.
huge impact
the impact of the Great Firewall is beyond imagination. Access to an open and free Internet in the country is necessary, especially as the Chinese government plans to achieve industrial transformation and relies on the growth of high-tech companies. It is imperative that people are able to escape the Internet restrictions in China that have harmful effects on individuals and businesses.
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