Rise of Chinese Companies

Alibaba is one of the most valuable companies in the world, and while for the past few years the largest companies in the world have been American - Google, Apple, Facebook, McDonald's, etc - Chinese companies are on the rise. Companies like Tencent, which specializes in apps like mobile games and online payments and messaging services, or Baidu, or Xiaomi, yes it goes on. So how did this happen to a country famous for its cheap "Made in China" products?

The producers in the various industries China operates in have increased the complexity of their operations and have maximized their potential for making money. The companies in the production belt of Shenzhen were contractors or original equipment manufacturers (OEM). Yes, this leads us to Chinese knockoffs and clones. There's a reason why they make so many good knockoffs of things like phones, toys, and even cars. But here's the thing: these manufacturers were not stuck with those same old machines and kept on churning out these products for others. Instead, the innovated and developed more sophistication. They started moving to original design manufacturers (ODM) and started designing things to the point where other companies would only slap their logo on the product. Imagine putting the Apple logo on a phone that was completely designed and made by some other company.

After the European crisis, demand for Chinese products waned, and so these manufacturers decided they needed to put their own names on their products and sell them. So now instead of factories making fake Gucci bags, factories make their own bags and launch their own labels. This has been the trend the past few years.

Now, Huawei is the largest telecom provider in the world, Lenovo sells the most laptops, and 6 of top 10 smartphone brands in the world are Chinese.

Top 10 Companies in the world:
  1. Google
  2. Apple
  3. Amazon
  4. Microsoft
  5. Tencent
  6. Facebook
  7. Visa
  8. McDonald's
  9. Alibaba
  10. AT&T
See the source imageTop Cell Phone Brands:
1. Samsung
2. Apple
3. Huawei
4. Oppo
5. Xiaomi
6. Lenovo
7. LG
8. TCL Communications
9. ZTE
10. Micromax

https://www.forbes.com/sites/wadeshepard/2016/05/23/why-chinas-manufacturers-started-building-their-own-brands/#4b414ce731b5
http://money.cnn.com/2018/05/28/news/companies/biggest-brands-ranking-2018-alibaba-tencent/index.html

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