Seeing the Unseen

CHAPTER 10Connecting the Dots

OUR EARLIER CHAPTERS LARGELY take the perspective of Chinese tech firms, but in this chapter, we switch the perspective to local players to understand the potential externalities or spillover effects caused by investments from Chinese tech firms and their global presence.

On the one hand, local regulators and communities may be concerned about the potential “crowding out” effect on local indigenous firms due to the Chinese firms' stronger technology, greater resources, branding, and human capital. On the other hand, we should not forget that these foreign investments also create positive externalities through knowledge diffusion, technology transfer, and improvement of local infrastructure.

Currently, we see a large number of Chinese companies stepping out of their domestic market. While many are struggling in their global expansion, their entry has created new opportunities.

What are the implications of these Chinese players for local players? How can one replicate Chinese business models in their specific market? What is the validity of the Chinese players' operations and boundaries of applications? How can we connect the dots to draw lessons relevant to all of us as the readers of this book?

REPLICATING ALIPAY IN SOUTHEAST ASIA

Since 2016, Ant Group has invested in a number of e-wallets and mobile payment joint ventures across different countries in Southeast Asia. The strategy at that time was clear: Ant would provide the technological, ...