fbpx
Finance

Local Chinese Startups Leave IBM And Oracle In The Dust

Smarter_way_USA

The trade war between the United States and China is expected to continue for the foreseeable future and it has had far-reaching effects across a range of industries so far. One of the most interesting developments in that regard is the way in which local Chinese tech startups have now managed to upstage global behemoths like International Business Machines (IBM) and Oracle. In this regard, it needs to be pointed out that both these US companies had spent considerably over the years to win business from companies in China, but now they are being schooled by a Chinese startup named PingCAP.

Chinese tech giants, startups, Fintech companies, and financial behemoths have decided to go for the services of PingCAP in the past few months. This has definitely made life far more difficult for IBM and Oracle, who had tried to gain a foothold in one of the world’s most lucrative markets over the past few years. On top of that, the use of the technical services provided by a Chinese company is of paramount importance to Chine as it tries to become much more self-sufficient when it comes to tech services. The blacklisting of Chinese tech giant Huawei had been a body blow for the tech industry in the country and many of the biggest companies in the country had felt under siege as the US could cut off its technical services contracts with American companies with the stroke of a pen.

The development of home growth technology has been a running theme in the country for many years since the country had gone highly dependent on key imports. For instance, it is one of the biggest importers of semiconductors and other products which are essential for making technical products. Perhaps the unraveling of the trade war has given Chinese tech companies the motivation to support homegrown tech service providers. Julia Pan, who is an analyst in Shanghai, spoke about the issue and stated,

China has always wanted to use domestic tech and in areas like cloud, it’s been very successful.  While it wants to use Chinese chips, its technology is just not there, but when it’s mature enough, they very likely will replace overseas chips with domestic ones.

Tags

Jodie Miller

Jodie Miller is experienced journalist. She holds double degree in journalism and communication. She joined our team as a content curator. She enjoys writing and curating contents related to finance and forex world.
Event Information
Event Information
Back to top button