What happened: Chinese tech companies are migrating away from global software service providers Oracle and IBM and towards homegrown tech companies amid a trade war with the US. One of the companies seeing tremendous growth opportunities in this area is Beijing-based data management startup PingCAP. The company, which develops open-source database software that enables enterprises to analyze and manage data, now serves big-name clients include Meituan, Mobike, iQiyi, and Xiaomi.
Why it’s important: China has been looking to reduce its reliance on foreign technologies amid escalating trade tensions with the US, which has pushed domestic tech giants like Tencent and Alibaba to accelerate their own software capabilities including cloud services. Chinese software firms will likely see an uptick in demand as enterprises from industries such as finance and manufacturing modernize their systems. The global market of database management systems is expected to grow at CAGR of 8% annually through 2022, according to a report by Market Research Future. Growth is especially rapid in China, where heavy investment has been poured into database system development.