The results of my research on the Internationalization of the Chinese Internet industry have showed that a few of China’s prominent Internet companies in different segments have climbed up the value chain. They are now – just like ie Lenovo, TCL and Haier were a while ago – entering the next phase in China’s development: they are establishing co-operations with international partners, licensing their services, and some of them are even in the phase of initiating overseas operations. This study has foremost shown that as a result of the extremely skewed situation of the Chinese Internet market, diverse Internet industries are in different stages of development. An important conclusion is that, besides services that are international from nature (think Alibaba or Ctrip), it is primarily the entertainment industry that has caught up with advanced markets such as Japan, South Korea, the U.S. and Europe. As a result various game companies are taking the lead in international expansion.

Why Going Overseas ?

An interesting outcome of this research has been that the reason for going abroad is generally not unilateral. Above and beyond the obvious financial incentive, I have found that in practice the choice to enter another country depends on many factors that can vary per industry. In addition the strategy that companies have used in their effort to internationalize differs greatly among different online service areas. Findings have shown that the decision to go overseas and the international strategy of a company heavily depends on the domestic market outlook, saturation of the market both domestically and overseas, whether a company is listed or even the sentiment of the person in charge, to name a few.

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