China Hidden Competitive Advantage – China Owns Key Technology Media Firms
China Hidden Competitive Advantage – Should the US be concerned that key technology firms and publications are now owned by China? In March of 2017, China Oceanwide completed its acquisition of IDG. China Oceanwide is an international conglomerate founded by Chairman Zhiqiang Lu. Headquartered in Beijing, China and include operations in financial services, real estate, media, technology and strategic investment. Following the acquisition, China Oceanwide has nearly 20,000 employees worldwide.
Within two months of the acquisition, there were extensive layoffs in the IDG’s US staffs of both writers and editors. It has been estimated that between 90 t0 100 seasoned professionals were laid off.
IDG was founded in 1964 and the publications that were included in this acquisition were CIO, Computerworld, PCWorld, and Macworld. IDG also has its own international news agency, IDG News Service. It is headquartered in Boston and has bureaus in cities such as New York, Beijing, Amsterdam, and Brussels. It provides news, images, video and other editorial content to IDG’s web sites and print publications worldwide.
The insight that IDG has in the technology market is very high. With this level of access to the technology market, should US based corporations be concerned? Will China based enterprises get a competitive advantage over US based enterprises?