The Chinese tech sector has been underestimated by many Americans, who put themselves at risk for taking the sector for granted, according to venture investors Kai-Fu Lee and Jim Breyer at a global technology conference on Wednesday, Oct. 26, sponsored by the Wall Street Journal.
"A lot of people in the U.S. just don't realize how strong the Chinese entrepreneurial, engineering, product, research capabilities are," Lee, chairman and chief executive of the early stage venture firm Sinovation Ventures, said.
According to Lee, Chinese Internet giants Tencent Holdings Ltd And Alibaba Group Holding Ltd are nearing the same market capitalization as their American counterparts, Facebook Inc. and Amazon Inc, including research on advanced artificial intelligence from China.
"Anyone here who thinks China is a copycat. That's just wrong," Lee said. He pointed out that China may surpass the U.S. if it continues to ignore the efforts made by China's technology sector.
Meanwhile, Jim Breyer, a long-time investor in Chinese companies and known for being an early investor in Facebook, said that historically, American companies have been "darn too arrogant" by attempting to enter the Chinese market and sell products and services that were developed for U.S. consumers, not the Chinese market.
In July, Breyer and IDG Capital, announced that they have put up $1 billion, which will be invested in growing companies, both in China and those seeking to enter the country. The fund is considered one of the largest funds allocated for the Chinese market.
Mark Zuckerberg, Facebook founder and chief executive, has been making efforts to help its social network gain entry into China as he taught himself Mandarin and is often seen visiting the country. Facebook is currently blocked in China due to censorship.
In a China Daily report in August, a DJI executive was quoted as saying that the Chinese tech companies' success may be attributed to its ability to move fast and adapt.
"Chinese tech companies used to copy what western firms were producing but then they started improving on it and now they are breaking new ground on their own," the unnamed executive was quoted as saying.