The Poor Man’s Option to Luxury
Many people wouldn’t touch electronics made in China with a long pole in the 90’s. They were known for their poor packaging and less than average quality control. My dad boasted about his German made cars and Japanese/American household electronics. Only the less financially capable bought Made in China products in the society.
Over the years, China went to work and mastered the art of making very good ‘copies’. It was a solution that adhered the products to a young teeming population in the developing world. I remembered buying a Chinese DVD player that cost less than 5,000naira($12). I wasn’t so big on the aesthetic and the loud speakers. The device got the work done and that’s all that matters.
To be fair, Chinese companies make alternative tech products available at insanely low costs.
A New Dawn
The advent of smartphones and the mass commercialization of handheld devices definitely contributed to a phase that sees China securing its space. Chinese made products went from being formless, loud volume, transistor radio like phones to beautiful handheld devices.
The designs were arguably ‘copycat’ formats of other leading brands but the value were no longer debatable. The journey to being commercially acceptable may have been long but it created giants. China’s tech companies have come a long way from being the go to option for the poor and optionless. Made in China is no longer the code name for fake or substandard. The world has been forced to come to a place of respect with companies like Huawei, Lenovo, ZTE, Alibaba and more recently ByteDance taking their place in the global space.
World Class Companies
Huawei was on its way to becoming the best-selling phone brand, having outsold Apple by about 42million units in 2019. It was tailing Samsung and may have toppled the Korean brand if not for its recent issues. The company had 91 5G contracts from countries around the world. 47 of those contracts were European countries. Huawei is well positioned as the world’s leading telecoms equipment company as well as foremost phone company.
Another major player is ZTE which has about 46 5G contracts from Asian and European countries.
Alibaba which is referred to as the Amazon of China has evolved from an ecommerce firm to a tech giant with interest in cloud, internet browser, among other tech fields. It is a homegrown Chinese company with world dominance and very popular outside of China.
ByteDance is estimated to be worth about $100billion making it the most valuable startup in the world. It broke all the odds by creating TikTok, an app that was good enough to break the dominance of US owned social media apps like Facebook and Messenger. Since its inception in 2016, TikTok is set to cross the 2billion download mark.
These companies are few of the major tech companies. There are other big players like Tencent, Lenovo, Baidu , just to mention a few. The value this companies bring to the table is in no way debatable. Seeing how well positioned these companies are in global conversation, it is a shame that they are still targets of the Chinese Stigma.
Renewed Worries
It is important to note that the Made in China tag is no longer about product standards, it is now about the Chinese communist government and how it interacts with other governments. The Chinese government is viewed with utmost suspicion. At a time when data is the biggest commodity on the planet, it has become important that it doesn’t fall in the wrong hands.
Made in China now raises questions with regards to data breach. Government agencies and everyday users want to be sure that their information are not being intercepted. Huawei has been rumoured to have installed equipment that allowed the Chinese government to eavesdrop on the African Union. They have also been known to have installed equipment that allowed African leaders spy on their opponents.
President Trump is one of the loudest critics decrying the strides made by Chinese government backed companies especially Huawei. He and other top US officials believe that the company is capable of intercepting sensitive information and using same for the advantage of the Chinese government.
More Data Breaches and Security Issues.
A feud between the Chinese government and Indian government has also led to the purging out of all Chinese apps. The Indian government cited privacy issues. It is important to note that India is one of the biggest markets for Tik-Tok. These data breach issues are not farfetched. Apple recently discovered that Tik-Tok was spying on millions of users.
Zoom is hit by the Chinese Stigma because it is owned by a Chinese American. Also, it is the only one out of the prominent ‘West owned’ apps allowed in China. This also brings its affiliation with China into question. The company has come under huge scrutiny and has been banned by some countries and companies. This is in spite of its recent successes.
Struggling To Save Face
Zoom has had to release statements stating that it is American owned to wade off the distrust.
Huawei has struggled to keep some of its contracts with countries developing cold feet. The US has declared ZTE and Huawei as national security threat.This announcement is coupled with several sanctions that has set the company back in many ways .
Tik-Tok has committed to moving its headquarters to London and Dublin. The Bytedance owned company made this move to distant itself from China and alleviate security concerns.
Verdict
Made in China may not fit into the west with its well developed economy but it will always have a home in Asia and Africa. Also, China is strong and so are some of these companies. Many people can’t even remember that Lenovo is a Chinese company. Huawei with its long tentacles may have also had us all fooled before its recent issues.
I believe that with the right strategy and positioning, these companies ought to be shake off the stigma. Afterall, no one is a saint. Allegations of datamining and government eavesdropping isn’t peculiar to China alone.
