A comparable decline has occurred in the fundraising efforts of Chinese venture capital firms, which has led to a reduction in the number of new businesses that are established in China on an annual basis.
The Chinese startup scene was portrayed in a recent media piece as being in a grave state, with founders, investors, and venture capitalists expressing negative remarks.
According to a report citing information from a Beijing-based executive, the entire industry has recently perished before our eyes. There is no longer any spirit of entrepreneurship. The entire sector is saddened to see this.
IT Juzi’s Data Reveals a Sad Story
Data from IT Juzi, which was quoted in the research, indicates that the number of firms that have been established in China up to this point in 2024 is just 260. This figure is on course to go below the goal of 1,202 in 2023 and represents a 99% decrease from the highest point of 51,302 in 2018.
It was stated by the CEO of IT Juzi in comments that were published on X that the data do not represent all companies. He also stated that despite the fact that China’s venture capitalists and founders have been facing issues in recent times, the country still possesses “great creativity and entrepreneurial spirit.”
On the other hand, venture capital fundraising has experienced a comparable decline. Since the beginning of the year, funds denominated in Yuan have raised the equivalent of $5.38 billion, which is a significant decrease from the peak of about $125 billion in 2017. According to Preqin, a privately held London-based investment data company, dollar-denominated funds have raised less than one billion dollars, which is a significant decrease from the high of $17.3 billion dollars in 2022.
The Present Scenario
The collapse of China’s startup scene occurs at a time when the country’s economy is still slowing down and continues to cool overall, according to new data released recently.
In the meantime, Beijing’s industrial policies have contributed to the worsening of economic imbalances, which in turn are contributing to the current economic downturn. In addition, the anti-corruption campaign, the “common prosperity” drive, and the crackdown on the private sector that President Xi Jinping has implemented have all contributed to a reduction in entrepreneurial activity.
According to the research, state-run funds have assumed a more significant role as a result of an increase in the number of investors’ withdrawals, and they currently account for around 80 percent of the total capital in the market.
The investment managers of these funds are also required to guarantee returns, which encourages them to look for opportunities with low risk or to steer money to Beijing’s designated priorities.
The world has about 775 crore people living on its surface. If you look at the population graph, you will notice a straight line facing the sky. The rate at which the population is growing makes a steep graph.
The world is divided into continents and countries. Most people live in china. China is the most populous country in the world. In fact, China has been the most populous for a long time now. When we write ‘for a long time, it means centuries. The first census showed the Chinese population at 583 million and by the fifth census, it had risen to double at 1.2 billion. The Chinese population now has crossed a mark of 1.4 billion people. It also covers most geographical time zones after that of Russia. This means that the country is not just big in population but also huge in the area.
A big country like that of China needs a lot of products and services. They need a lot of goods to meet the needs of people residing in that country. Some of the goods can be imported and the rest have to be produced in the home country. In fact, most goods that they can’t import or the goods that are not economical to import, they have to manufacture by themselves.
Not to mention that China is one of the cheapest labour countries out there. In this article, we are gonna cover the economy of this country. We will discuss what comprises the most in this economy and what are its driving factors. Read on to know more about the second-biggest economy in the world.
China or the Republic of China (official name) is a country in East Asia. As we mentioned earlier it is the biggest, in terms of population. It contains the largest number of people than any country. This country also spans and covers most geographical time zones after Russia.
The country has 23 provinces, 4 municipalities, 5 autonomous regions and 2 SARs (Special administrative regions). The capital of China is Beijing. The largest city in China, which is also the financial centre, is Shanghai. In terms of technological and innovative approaches, the city of Shenzhen tops the chart in this country.
China at its inception emerged as one of the very first civilisations. It was the fertile land basin of a river named Yellow that marked its beginning. After the civilization boom, China also emerged as one of the first economically strong countries. Their time as a strong economic power also remained for almost most of the two millennia (thousand years).
Also, the political system of this country is based on monarchies. It has been this way for almost a thousand years (Millenia). This means that for those many years, China’s political system was controlled by rulers and then their heirs and then their heirs. This is what we call an absolute hereditary monarchy. This system of political control began from the ‘Xia dynasty in about the 21st Century BCE. Moreover, since then the country of China has seen multiple expansions, fractions and re-unities.
China: The Culture
The culture of such a big country is expected to be special and unique. Since very ancient times, the culture has been heavily influenced by the philosophy of Confucianism. Which is a tenet in philosophy. This is also known as a truism and inspires people to live a humanistic, rationalistic and very simple life.
The culture there in the past also offered examinations, tests. Those exams were to be passed by a person to get a highly prestigious and better status in society. This is one of the reasons why China has a long history of writing and calligraphy. In fact, calligraphy, writing poetry and painting are more celebrated than other forms of art like dancing or dramatics. Its culture also inspires people to be diving deep into the lanes of history to know about their past. This also invokes the trait of an inward-looking behaviour of Chinese people in the past, this ran at a national level of thought process.
China: The Economy
It is an aforementioned fact that China is big and has a lot of people. It has to cater to about 1.4 billion people for its sustenance. This really marks that the economy must be big and effective. However, this is not as easy as it seems.
Even though China is the largest in terms of population, we cannot really say that it is the biggest when it comes to the economy. It is second in terms of magnitude just after the United States. It is important to note that economies are weighed in terms of GDPs. GDP stands for the gross domestic product. That is in simpler terms, the sum total of all the valuable products or services that a country produces in a financial year.
According to the GDPs, in the pandemic year 2020, China is seen to have the second-largest GDP in the world. Here are the top five countries according to the GDP ranks.
Highest-ranking countries in the world in nominal GDP
When we talk in terms of GDP, we measure it in dollars. We can also notice that China may be the second largest in GDP but it is the largest in terms of PPP.
PPP stands for purchasing power parity. PPP is a popular macroeconomic analysis metric that is used to compare economic productivity and standards of living between countries in purchasing power. The theory follows a theory known as the “Basket of goods” for comparing the purchasing power of different countries.
China tops the list when we see through the lens of purchasing power parity. This shows us the fact that even if the Chinese economy is the second-largest, the citizens of China are better in purchasing power and economic productivity than that most countries. Please note that PPP here does not mean a paycheck protection program, made by the CARES Act.
China’s growth rate (In annual terms) is displacing that of the United States of America. Many think that China’s rate will overtake the United States in terms of Nominal GDP too in the upcoming years. Don’t get scared of the terminology “Nominal GDP”. Nominal GDP is a form of GDP that is in the current rates, without accounting for the effect of inflation on the GDP. So, this is a GDP at the current market price.
There are many reasons for china that made this country get this spot of a top tier pacer in the economic race. We will discuss more in a second. But let us get some overview, China has progressively opened its economy with the whole world, continuously for more than forty years. This reveals a good reason why its economy is on a paced growth and why the standards of people there have been improving vastly.
The Chinese government has gradually phased out collectivised agriculture too. It means the type of agriculture in which multiple farmers can hold land and share workloads of the agriculture activity. Thus, it helps in sharing Profits and losses among farmers and makes farming a little more smooth sailing.
Collectivised farming has also boosted flexibility for market prices and increased the autonomy of businesses. When a country’s agriculture is doing well, it can then pay more attention to the industrial sector and thus China’s domestic and foreign trade magnitudes are also rising at a good rate of growth.
By far we have discussed China and its economy. We have seen that it is a rapidly growing economy with such a behemoth sort of population. This might interest you in how this big country is fostering growth with such a huge number of people and how it is able to raise citizens’ standard of living. This is the part of the article where we discuss the reasons for such growth in China. How it is becoming, what it is becoming and what are the main drivers of growth for this economy.
The Manufacturing Hub of the world
China, if you don’t know, is the manufacturing hub of the world. If you are using a product that is sold by a brand or even a local product then it is a good possibility that the product would be manufactured in China.
Yes, look around yourself. Your favourite Apple products are assembled in china, your favourite Converse or Nike sneakers are made in China, and most things that you can think of are manufactured in China. Do you ask for a reason? The reason is obviously cheap labour.
With such a big population, China has some special benefits over any other country in the world. It can provide a good basis for cheap labour. For that one reason, it has emerged as the global capital of manufacturing items.
Besides its large hands on the textile industry, the economy also is big on machinery, processing of food items, Cement for infrastructure, consumer goods and many many more fields.
Moreover, China is not a huge hub only for domestic manufacturing plants, it also caters to the needs of foreign companies to come and manufacture there or assemble items. Famous examples may include Apple. Apple designs their products in California and they are assembled in China. Adding to this, The Chinese software and IT industry grew by over 14.2% from 2018 to 2019, generating revenue of approximately $940 billion.
Apple Factory in China
Heavy Focus on Industries
Another reason which makes this country a big economy is its industries. As any normal developing country, China knows that for growing its economy, it needs to pay attention to the industries that are set in its territory. So they focus extensively on that.
China is a super friendly nation when it comes to industries wanting to set up manufacturing plants there. Results of which are the fact that China is the world’s biggest steel manufacturer. This shows a strong will of steel.
The Chinese government began opening up the economy for the whole world in 1978. Which is also known as globalisation. So it began its reforms for economic development under the leader named Deng Xiaoping. That was a turning point in the history of this big country, after the reforms it went on to become the fastest-growing major country globally.
According to a report, the growth rates were averaging 10% over 30 years. China also has three of the ten largest stock exchanges in India. They are located in prime cities like Shanghai, Hong Kong and Shenzhen. They are big in terms of market capitalisation and trading volume. All these factors establish that China is an industrial hub.
The Medicines industry
Abbreviated as Pharmaceutical industry. China has one of the best, state of the art medical supply chains. The growth trends in this industry copy the whole of China. It grows almost as China grows, which is rapid. China had the second-largest pharmaceutical market in the world as of 2017.
The pharmaceutical industry follows the same structure as most of the world. They have manufacturers at the top and then middlemen or distributors and then retail stores communicate directly to the general public. However, the global share of China’s medicines is seen less. With a big population, it is forecasted to grow even more and is still one of the biggest in terms of scale.
The Population’s Demand-pull
As mentioned earlier, China is very populous. Which makes it a generator of huge demands. Brands all over the world try to target this demand to get some share of this market. So this has become one of the most important drivers of economic growth for that country. It is a consumer paradise with all types of demands for goods, be it normal or luxury items.
China has some of the biggest shopping malls in the world. They, not to mention, stimulate growth in a good direction. The retail lines of China contributed about 1.8 trillion dollars to the Gross domestic product.
China Global Center Mall
China is also the home to the E-Commerce giant Alibaba. It is responsible for giving a lasting boost to the already big consumerism in China. A report said that Alibaba on a shopping festival achieved something sort of called a miraculous sale. It touched a sales record of 540.3 billion Yuan (it is about 84.5 billion dollars), which is a huge record for such a huge country. This gave a much-needed boost to the consumer sector. Even today it is one of the benchmarks for sales all over the world.
Alibaba Logo
Tourism and travel is also big sector in China. It reportedly contributed 992 billion dollars to the Chinese GDP in the year 2019. Other sectors that are the prime demand pullers are transportation, construction and estate.
What can go wrong with China?
China, however big it may seem from the outside, can go weak from the inside. There can be many premises on which the country is not doing well. For example, China uses a lot of Non-renewable resources to produce power, electricity. The population needs it and the shift in this sector seems impossible. This marks the country as a huge member of the world’s pollution and a big emitter of greenhouse gases.
As we discussed previously, the China government is a monarch at its core. This makes enough space for corruption. The government is however trying to curb corruption and make the country more flexible and friendly for the world’s businesses. This can take time and if not done correctly can leave a bad impression on the image of China. This problem is not just one faced. It is a multifaceted problem, as it can lead to fewer industries in China and thus low employment rates in the country.
Speaking of that, China also faces the problem of unemployment. It needs to place people with enough skillsets for employment. Which is also a big deal in a country as big as China.
In addition to the political and the internal housing issue, one more issue lurks there. The recent downward trend of the labour industry. This means that China is slowly losing the crown of the cheapest labour in the world. The reason for this can be inflation and the digitalised working models and economy. China is losing its position to other cheap labour countries like Pakistan, India etcetera. For India, it is good news but if China has to retain its manufacturing position then it needs to be more ready for this changing technological world.
As we discussed above, China is a big country with a huge population and big demands. It is important to note that it, obviously, also has some cracks. Some cracks in the economy that are not severe but if not cured could sink a big ship.
The recent Evergrande fail was one such big example of how things can go wrong. China has seen real estate bubbles in its history too. The previous bubble burst and hit the whole world’s market, more recently the Evergrande crisis made the investors scared of investing in China.
It is a good point to say that “With great powers comes great responsibilities”. China has a load of the most people on the globe, which can be overwhelming to the government. In these times of pandemic, the future remains random and uncertain.
The fact that the Covid 19 pandemic originated from the heart of China also is affecting the Chinese economy in the wrong manner. It has defamed China in some sense. This is the reason that some industries are looking to shift base to developing countries like India.
For China, it remains a tough call to tackle a pandemic and the future of its economy. Again, it is not supposed to be easy to handle such a big and populous economy.
FAQ
Is China a developed country?
Yes, China is one of the largest developing countries in the world.
What is China’s GDP?
The gross domestic product (GDP) of China is around 14.87 trillion U.S. dollars as of 2020.
Is China the fastest growing economy?
Yes, China ranks second in the world’s fastest-growing economy.
There is a unique kick in Unboxing something new, a new gadget, a new parcel because it has a sense of surprise in it. India is a country of festivals and we absolutely love to shop but have you ever wondered how these goods are made ? How do they land in the package ready to be used ? How are we able to get dreamy-deals that save us money ? There is a lot of behind the scenes of making a product, packaging the value in a box.
In a world as fast as ours, we tend to forget the process and focus mainly on the outcome. This article talks about a product process and how a brand manages to save costs with countries with cheap labour. We will also discuss Pakistan as an emerging nation with cheap labour.
It is said that Labour is handicapped without capital, and our capital is handicapped without labour. The word labour has direct relations with inputs that we put in to get some final product.
Labour can have many dynamics like mental, physical or social efforts that are required to manufacture something. Essentially on the basis of skillset, labour are of two types – Skilled, Unskilled and in some cases even Semi-skilled.
As the name suggests they are categorised on the basis of skills and training required to make them work effectively. Unskilled labour is the cheapest form of labour and is required to do work that does not require any sort of training.
Global sourcing of Labour
The initial motive of global sourcing of labour is cost savings. With the progress of globalisation, product differentiation in contemporary markets is not that remarkable anymore, to some extent, which leads to a greater emphasis being placed on price competition.
This has especially been the case with consumer products. Besides cost savings, plenty of studies have also identified quality and availability as critical aspects for global sourcing
Cheap Labour and its History
In every society around the globe, employers try to follow the downward trend of cost of labour. Thus, saving themselves the most capital. They pinpoint some stratum of people who are the most vulnerable and employ them with low wages.
This topic can go further to the ‘apartheid’ faced by the South Africans in contrast to white population. Their wages were as low as one-fourteenth of white counterparts even when they comprised around 80 percent of the total population.
Government implementing racist policies, commended employers with greater power over this section of workers. Which in turn employed discrimination among the general public.
Another method employers follow is ‘De-Skilling’ which means to eliminate a skill that is required for a job. Making it easy for a worker to be replaced. This drives down labour cost.
New technologies are also a way to increase competition among workers resulting in less wages. This makes the labour cheap and employers end up with more surplus. These are the usual cases in the world of manufacturing but there are some more natural ways on how labour can be cheap.
Factors like economic development, growth of a nation and per capita income of citizens of the country matters in determining the cost of labour. China has been a global player.
China: The world’s factory
China is considered as a factory for the whole world, the reason being the huge population and cheap availability of labour. This trend was followed for a long time and now it is up for a spin. The world demographics are changing and we are witnessing a downward trend in the employability of labour, the prime reason is rising labour costs.
Due to rising demands of people and rising cost of goods, China is not prized as the ‘cheapest’ country to produce goods anymore. Moreover this phenomenon has led some foreign countries to exit the country and find their nest somewhere else. There are several reports on how the trend is moving.
According to one Report, it is observed that hourly rates in Mexico are lower than that of China. This might not be good news for monopolist China but it is surely good for developing countries where labour is relatively low.
Cheapest Countries in Asia
When the world’s factories are becoming a little expensive, the biggest players in the manufacturing sector are looking for a shift. The new home should obviously be cost effective. To answer this question satisfactorily, we will have to look through a lens of cost. The cheapest countries in the largest continent of the world i.e. Asia are listed below –
India
Pakistan
Nepal
Sri Lanka
Included a Forbes article. This essentially shows where the manufacturing giants could move their base to. The list coincides with the trends that we see every other day, like Tesla coming to India, Apple pondering over ideas to start a manufacturing unit in India, Pakistan becoming the next hub for cheap labour in the world and much more. These are the hotspots where new industries are eyeing for better sustainability.
The land of Pakistan
Pakistan is the fifth most populous country in the world with a population of over 200 million. These statistics make it an important player in the world. Several studies have concluded that the country entails a good number of workers and manpower. With these numbers we can safely say that the country is rich in workforce.
Is Pakistan the new heir?
A populous country as Pakistan with abundance of labour seems a good choice for industries all over the world. The abundance can be a signal of cheap labour that can be used to produce goods and services with ease and with better efficiency.
Salman Shah of ‘Taskforce on Textile’ during the TEXPO-2019 seminar mentioned that a recent survey concluded that the labour unit in their work in this domain is much cheaper than that of the dominant China. The textile expo (TEXPO) also witnessed clothing brands‘ total presence and active participation during the event.
Moreover, rather than dismissing it as an impediment, we can use this unique aspect as a benefit for our nation. He also mentioned that this trait can become very useful when we talk about China-Pakistan economic corridor projects. Cheap labour in Pakistan can help build a soft spot for the country in the world where it already faces other economic and relational issues.
What is digital labour? How is it different from online labour ? these questions might be popping in your head. The funny thing is that it is easier to understand. There is a famous quote that goes like this – “Software is eating the world”
Almost all people on this planet are witnessing this (Except fewest of third world places) phenomena. We live in a digital era and we work digitally. You are reading this blog on a mobile or other device digitally. So you can easily see the blanket of technology that the world is wearing right now. It’s beautiful and gives us a sense of abundance.
Examples of digital labor might include on-demand platforms, micro level of working and data generated by users of digital platforms like our favourite, social media. Digital labor generally describes work that entails a variety of online tasks. If a country has the structure to maintain this kind of digital economy, then this form of labour can incubate income for citizens without the limits of physical obstacles.
Christian Fuchs cites that of the world’s 2,000 largest transnational corporations 11.6% fell under the umbrella of communications and digital media. Tech companies like Google, Amazon, etc. are shaping the economy in exciting ways.
Pakistan and Digital Labour
Online Labour Supply
A report by the International labour organisation concluded that Pakistan already is the third largest provider of labour for digital or online platforms globally. The report also mentioned that India is the biggest labour supplier. Digital labour can be categorised in two types, location based and online web based.
The web-based platforms are defined in which tasks are performed online or remotely by workers without being physically present. “These tasks may include translation, legal work, financial and patent services, designing and software and freelancing.
Location-based platforms on the other hand are those done in person in specified physical locations by employees. These can include taxi driving, delivery services and home improvement (plumber or electrician), domestic labour and caretakers.
Conclusion
We are witnessing a decline in the Chinese empire of cheap labour. This is true for sure. While companies search for alternatives for meeting their manufacturing demands, Pakistan is going to be seen.
On the other hand, India is a big player and it will shine in the search of manufacturers to find a better place. However, the filter of cheap labour is sharp enough to cut India from the picture and put Pakistan in the spotlight. Who will rule this industry is hard to say because there are a lot of variables involved.
Variables like globe conditions, Pakistan’s relations with the world and need shifts of brands. We live in a beautiful world of change and numerous probabilities. We can study numbers to tell a story but the reality may unfold in its own fashion.
FAQ
Is China still the Low Labour cost country?
No, due to the rising demands of people and the increase in the cost of goods, China is no longer regarded as the ‘cheapest’ country to manufacture goods anymore.
Is Indian Labour cheaper than China?
The hourly wages in India are five times less than in China.
Can Pakistan become the next cheap labour country for the world?
Yes, Cheap labour force in Pakistan can help attract foreign industrialists.
Over the years, China’s Gaming Industry has grown exponentially and now houses a few of the best gaming companies in the world. The country gaming industry generated over $32 billion total revenue only in 2020, while E-sports earned more than $20.8 billion. When it comes to PC games, the Chinese gaming companies earn over $8.5 billion.
China also has the best e-sports players in the world and is among the top in the most significant game development market in the world. China is known to have over 665 million players who also spend more than 278 billion yuan on video games. Because of numerous strict regulations imposed by the Chinese Government, many Chinese gaming companies now want to focus on moving overseas markets.
China is called the gaming capital of the world as its gaming companies have provided innovative solutions at a high cost to value ratio. China currently has over 778 gaming startups in the country in 2021. The Chinese gaming companies are known to have a skilled workforce that aims in delivering quality, unique and engaging content.
These are the top ten gaming startups in China. The Chinese online game streaming industry is expected to grow to a height of a CAGR of 9% from 2021 to 2026, which means China has the potential to dominate the market with its gaming startups.
Tencent Holdings is one of the top gaming companies that was founded in 1998, with its headquarters based in Shenzhen, China. Besides gaming, Tencent also has its foothold in the sectors of entertainment, AI, advanced technology, and other internet-related services and products. Tencent Games has the largest online gaming community in China, it also is the largest digital entertainment platform in the world.
The company reportedly generated over $14.86 billion total revenue in 2019 revenue, making it the world’s largest games publisher the same year. Its most well-known games are PUBG Mobile and Honor of Kings. Both PUBG Mobile and Honor of Kings are globally renowned free-to-play multiplayer action games.
NetEase Games
Company
NetEase
Founded Year
1997
Headquarters
Hangzhou (China)
Funding
–
Investors
SoftBank Group
NetEase Logo
NetEase is another top IT company in China that operates and develops online PC and mobile games. The company was founded by William Ding in 1997 with headquarters based in Hangzhou, China. NetEase is now a global gaming company as it has collaborated with Blizzard Entertainment, Mojang AB and other leading global game developers.
Besides gaming, the company has also ventured into the industries of advertising, email and e-commerce services in China. The top games the NetEase has developed are Westward Journey, Tianxia III, Nostos, Onmyoji, among others.
Besides that, the company has also operated the Chinese versions of Blizzard Entertainment games like World of Warcraft, Overwatch, etc. NetEase is now ranked second place among the top mobile gaming companies in terms of its global revenue and has high ratings on both Apple and Google app stores.
Tencent, Ping An, Engage Capital, David Li, 5Y Capital, Rongjie Dong and Gaorong Capital
Huya Logo
Huya is a live game broadcasting platform that was founded in 2014 with its headquarters based in Guangzhou, China. The company provides a broadcasting software platform that allows its users to stream and take videos while playing the game.
It helps connects broadcasters to their audience and is also the provider for a wide variety of media ranging from talent shows, cooking, sports, animes, online movies, etc. Huya is also the official broadcaster of top e-sports competitions.
Hero Entertainment
Company
Hero Entertainment
Founded year
2015
Headquarters
Beijing (China)
Funding
$539 million
Investors
Huayi Brothers Media Group, Prometheus Capital, ZhenFund, etc
Hero entertainment also known as Yxgyu.com is a mobile game developer that was founded in 2015. The company has its headquarters based in Beijing, China. Hero entertainment is the developer of the Battlefield series, which is a MMA fight show. Besides game development that company is also into combat sports and mixed martial arts promotions in their country.
Giant Interactive Group is one of the best Chinese online game developers and operators of many well-known multiplayer online games. The company was founded in 2004 and has its headquarters based in Shanghai, China. Giant Interactive Group is currently one of the leading online game developers and operators in terms of revenue.
Their game ZT online is the most popular game in China in 2006, after the success of that game the company came up with Road Bin and Street Basket for android and iOS. Besides that, it has also come up with Jianghu and Xian Xia World both of which are MMORPG games. The company was also named“2016 Top Ten Most Anticipated Versatile Game Honor” by Road Crate.
Cushou TV is another leading mobile video live streaming platform with its headquarters in Hangzhou, China. Besides being an eSports video streaming platform, the company has also developed popular games like Counter-Strike and League of Legends that are well known around the world.
The company is now planning to improve its user network and expand its live video host’s network. Cushou TV has is well known for its live video-streaming platform that provides interaction sites and games, which enables E- gamers to stream their mobile phone game activities live.
Zhen Fund, Chen Hai Capital, Hanfor, Lighthouse Capital
Panda Tv Logo
Panda TV is a Shanghai-based E-sports live streaming platform that specializes in broadcasting e-sports events live. The company allows its users to stream live e-sports games, events, it also streams video and news content related to esports.
It main competitors are Douyu TV and Twitch. However, in 2019, Panda TV announced that it will end its services because it had failed to raise funds in order to keep the operations going.
Zeus Interactive is a leading game and web developer with headquarters based in Beijing, China. The company was started in 2011 and focuses on developing online mobile games.
Zeus Interactive so far has over 15 plus games and specializes in role-playing games for both mobile and PC. The company has raised more than $132 million in funding. Currently Zeus Interactive is planning to turn its games into live-action movies.
Qualcomm Ventures, GGV Capital, Steamboat Ventures, New Horizon Capital, Creaturk, Sequoia Capital China
Chukong Technologies Logo
Chukong Technologies is a well-known mobile entertainment platform with its headquarters based in Beijing, China. Besides developing mobile games, the company also has its foothold in publishing and game engine development.
The company has more than 60 published titles and its most successful game has been Fishing Joy which was launched in 2011, this game gained over 12 million downloads within a year of its launch.
Madhead App
Company
Madheads
Founded year
2013
Headquarters
Hong Kong (China)
Funding
$70 million
Investors
Forgame
Madhead App is a popular game developer with its headquarters based in Hong Kong. The company is known for its Role-playing games, its most well-known games are Tower of Saviors in need and Chronos Entryway. Their games like Tower of Saviors had over 19,00,000 downloads as of 2016.
The company’s games are popular in Taiwan, Hong Kong, Malaysia and other South Asian countries. It game Tower of Saviors so far has over global downloads of over 23 million. Madheads is known for providing the best user experience for all mobile gamers.
Frequently Asked Questions
What are the top gaming startups in China?
The top gaming startups in China are Hero Entertainment, Huya Inc, Madhead App, Chukong Technologies, Zeus Interactive, Cushou TV, Panda TV, Giant Interactive Group, Tencent and Netease.
How many gaming startups are in China?
China currently has over 778 gaming startups in the country in 2021.
How much revenue does China generate from Gaming companies?
The country’s gaming industry generated over $32 billion total revenue only in 2020, while E-sports earned more than $20.8 billion.
Fintech is one of the leading industries in the world because of many emerging unicorns in the sector. The fintech industry has become a game-changer for banking services industries as it has been tremendously impacted by Technology enterprises. Most Fintech startups offer financial services such as mobile payment, digital banking, insurance, crowdfunding, wealth management, or recently even digital currencies like cryptocurrency.
Fintech companies nowadays have to rely on advanced technology like datasets, Internet of Things (IoT) artificial intelligence (AI), cloud computing, or even blockchain in order to provide their services. Fintech currently has over 79 Unicorns globally making it the largest sector with the most number of Unicorns, while there are more upcoming fintech startups that will be added to the list.
The global Fintech market was said to be valued at $111 billion, while it is now expected to grow to more than $158 billion by 2023. China is often considered one of the leading countries in the sector of financial technology. The country so far has over 2,160 Fintech startups out of which over 18 are already unicorns. According to some studies over half of the world’s digital payments were made in the country using apps like Alipay and WeChat in 2017.
In 2018, China received over $25.5 billion investments into its fintech industry making it the leader in this sector. Even to this date china continues to be the leader in the industry because it completed over 600 plus deals in 2018 alone, the country also has the highest fintech adoption rate of 69% in the world.
China went through a Fintech boom because many startups wanted to fill the gap of traditional banking which lacked in the country by introducing fintech services that fulfilled the needs of ordinary people and SMEs. Because of the growth of the fraudulent practices in the Chinese sector in China, the Government has come up with rules and regulations including 65 national financial standards and 252 financial industry standards to control them.
The fintech startups in China are targeting the middle class in the sectors of wealth management, different types of insurance and private banking as the services like mobile payment is already popular in the country.
Tencent is considered to be one of the largest gaming companies in the world, but also has a foothold in the Fintech industry. Over the years the company has come up with top-notch payment services through WeChat, which was considered to be the first online-only bank offering wealth management and other financial services in China. Through WeChat Pay the company has made many strategic investments and third-party marketplaces, increasing its valuation to $21 billion in 2018.
The company was initially founded by Ma Huateng, Tony Zhang, Xu Chenye, Chen Yidan and Zeng Liqing in 1998, with its headquarters based in Shenzhen, China. The main competitor to Tencent in the fintech sector is Alipay which is under Alibaba. By the end of 2019, WeChat had is estimated 800 million users and 50 million merchants on the platform every month. This is why Tencent is one of the most financially valuable companies in the world.
Ant Financial
Company
Ant Financial
Founded year
2014
Headquarters
Hangzhou (China)
Funding
$22 Billion
Investors
General Atlantic, Meros Equity Global Management, Warburg Pincus, The Carayle Group, Credit Suisse, Temasek Holdings, Sequoia Capital, Khazanah Nasional, Silver Lake
Ant Financial Logo
Ant Financial is one of the top fintech startups in China that was founded in 2014 with its headquarters in Hangzhou, China. Ant Financial provides various digital payment services for both customers and businesses.
Ant Financial is known for its Alipay mobile wallets which offer financial services like transferring money to bank accounts, bill payments, online or offline mobile bill payments, among others. The brands under Ant Financial are Alipay, Ant Fortune, Yu’e Bao, Zhima Credit, MYbank and Ant Financial Cloud.
Alipay also allows SMEs to accept online payments from customers through cards, corporate credit solutions and Bank transfers. Ant Financial Group is a subsidiary of the Alibaba Group which is a Chinese eCommerce giant and is also said to be the world’s most valuable Unicorn Company.
As of 2018, the company has over 87 million users across the world along with JV partners, currently, it has over 1.2 billion users worldwide. Besides its mobile wallet services, Ant Financial is also a leading fundraising company in the country.
Lufax is a popular online wealth management and P2P lending platform for personal loans. The company provides insurance services to both individuals and institutions with advanced technology like AI and Cloud. Lufax was founded by 2011 in Shanghai, China and was originally set up by Ping An as an incubation project.
It currently is the second-largest P2P lender in the country and is planning to branch out its business gradually to work with funds and insurance companies. In 2018, the company also expanded its services to Singapore, the same year it also came out with a new blockchain solution that identifies users and tracks transactions, especially between borrowers and lenders. Lufax is said to be the best Internet financing industry in China as it has accelerated the marketing process.
Bitmain
Company
Bitmain
Founded year
2013
Headquarters
Beijing (China)
Funding
$764.7 million
Investors
Temasek Holdings, Crimson Ventures, Noris Capital, Newegg, Coatue, Sequoia Capital China, CAS Investment Management, Jumbo Sheen Group, HuangPu River Capital
Bitmain Logo
Bitcoin is a well-known Edtech startup that provides hardware-based mining solutions for Cryptocurrencies. The company was started by Micree Zhan, Jihan Wu in 2013 with its headquarters based in Beijing, China. Bitmain is known for providing hardware-based mining (ASIC) solutions for bitcoin mining. By 2018, the company became the largest designer of ASIC chips for bitcoin mining.
Besides ASIC chips the company also makes servers, simple routers, AI applications, mining tools and other services & products for blockchain. Bitmain also operates BTC.com and Antpool which became the biggest pool for bitcoin. Bitcoin introduced Bitmain Technology in 2013 that successfully engaged with the field of AI and increased power consumption speed.
Simon Investment Managers, EG Capital Advisors, Affirma Capital, ORIX Asia Capital, CITIC Securities, China Minsheng Investment Group, GIC
Dianrong Logo
Dianrong is a leading peer to peer platform for personal loans. The company was founded in 2012 with its headquarters in Shanghai, China. Dianrong provides products and service offerings like credit ratings, investment products, marketplace lending solutions risk management and operation tools.
In 2018, the company created a supply chain finance solution designed especially for finance and business. The company provides a well planned and secure infrastructure for industry data and insights.
Ping An
Company
Ping An
Founded year
1988
Headquarters
Shenzhen (China)
Funding
$4.8 billion
Investors
–
Ping An Logo
Ping An Technology is the main subsidiary of Ping An Group a multinational conglomerate. The company is in charge of the financial sector that provides services like insurance, banking, investment, and numerous other internet businesses. The company went on to create Lufax and Oneconnect which are both well-known fintech companies in China.
The company was founded in 2008 and initially provided IT services to firms within the Ping An Insurance Group. Ping An also allows its customers to use its P2P lending services over AI technology. Ping An was the first insurance company to be selected on the index and is currently the World’s top global insurance brand in 2020.
CICC, COFCO, APOFCO, Sequoia Capital China, China Creation Ventures, China Taiping Insurance, Intonation Ventures, Harvest Global Investments
JD Finance is one of the leading Chinese fintech companies that was started by the JD Group in 2013. JD Group is one of the biggest B2C online retailers in China. The company has its headquarters in Beijing, China and aims to become the most trustworthy internet investment and funding platform. The company provides its customers with services for investment and financial management, which are easy, high yielding and safe.
The company uses advanced technology big data, AI, cloud computing, blockchain and IoT for providing its financial services. JD Finance is estimated to be $20 billion as it raised over $1.9 billion in 2018. The company comprises 10 business divisions that cover different types of covering corporate and consumer finance needs.
Renrenxing Technology
Company
Renrenxing Technology
Founded year
2014
Headquarters
Beijing (China)
Funding
CN¥ 4.5 billion
Renrenxing Technology is another popular Chinese Edtech startup that is known for developing applications for borrowing and lending money. The company started Jiedaibao in 2015 which has its headquarters in Beijing, China. Jiedaibao is a leader in providing peer to peer services for lending and borrowing money, besides that it also offers services like matching, registration, collection and other services for small loans for customers and SMEs.
The company is now known to be the country’s top tech unicorn company as its valuation is estimated to be over $10 billion. Through Jiedaibao, Renrenxing Technology has come up with an app that helps in deciding interest rates independently and based on that it generates an electronic contract that is legal. This enables their customers to get personal loans at a fixed price and get reminded of the repayment or expiry of the contract.
Ria Puneyani
