“American versus domestic digital companies in the Chinese market”, Katalin Völgyi et al. (IWE CERS, Hungary)

The digital economy has become an increasingly important part of the  world  economy.  It  is  vastly  concentrated  in  two  economies,  namely,  the United States and China. The main aim  of our study is to  investigate Chinese digital companies and government policy enabling the rapid  development of the country’s digital economy and the largest American digital companies’ performance  in  the  Chinese  market.  Our  findings  show  that  the  largest American digital companies, which are globally active players, usually have a very limited market share in different segments of the Chinese digital economy or  have  been  forced  to  leave  the  Chinese  market  after  a  short  period  of operation. In the future, Chinese government policy will continue to ensure the priority  role  of  domestic  digital  companies  in  the  upgrading  and  structural transformation of the Chinese economy  driven by services, high-tech sectors, and consumption while limiting the role of American digital companies.

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