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China’s Venture Capital Funds Began Focusing on Southeast Asian Markets

Situating in between China and India, Southeast Asia’s importance to Chinese enterprises is self-evident. Since the beginning of 2010, in addition to political and economic competitions, Southeast Asia has become a contesting ground for different countries. The competition between Chinese-developed messaging Apps like WeChat and Whatsapp developed by the California-based company of the same name is becoming stiffer, while Chinese IT and mobile companies like Huawei, Xiaomi and Lenovo are constantly competing with Samsung and Apple. Even the entertainment industry can not be spared of the competition ; The Korean series Descendant of the Sun are vying with the Chinese series Nirvana in Fire for fans in Southeast Asia.

To set up a training school in Myanmar, Lenovo Malaysia will enter the Middle East as a stronghold, ASUS mobile phone for 20% Of the Indonesian market.

Similarly, cultural and consumer premium are catalyzing the Chinese technology giants to plan their strategies in Southeast Asia, for instance Huawei has set up a training school in Myanmar while Lenovo plans to expand to the Middle East with Malaysia as its base.

For the industrial players, there are several places in the Southeast Asian market. First of all, the aging species in China and Japan need to find vitality in the young Southeast Asia. Past in the Internet transparency rate is low in Southeast Asia, the need To access to the internet in this region is expanding. Thirdly, Southeast Asia’s economic development is slower than China’s, and just like China in the past, it has the opportunity to achieve leap development. Take Indonesia, the world’s largest archipelagic country as an example, the country has 250 million people, with high mobile phone penetration Rate where mobile internet users account for more than 30% of the populations, reaching more than 80 million users. It can be said that the majority of Indonesians’ first internet contact is through mobile phones.

In addition, in order to find a new breakthrough in this region situated between China and India, Southeast Asian countries are sparing no effort in attracting more investors. For example, MDEC (Malaysia Digital Economy Corporation) is the Malaysian government-led service platform for Science and technology. It is committed to the adoption of such measures to transform the country into a regional e-commerce center by 2020. In Malaysia, MDEC has more than 40 agency outlets, with the main duty to help foreign companies investing in Malaysia.

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