Despite global headwinds Chinese HW grow

#Discussion(Startup) [ via IoTGroup ]

“We are not really aiming at Chinese consumers at this point ” said Zhang who started Balanx in 2014. Prospects for hardware makers were looking bright until two years ago when the Trump administration began setting trade barriers on China. Chinese entrepreneurs don’t expect relationships between the countries to warm up anytime soon but many do believe the new administration will make “less erratic” and “more rational” policy decisions according to conversations TechCrunch had with seven Chinese hardware startups. Chinese tech businesses big or small are adapting swiftly in the new era of U.S.-China competition as they continue to woo overseas customers. For Donny Zhang a Shenzhen-based electronics parts supplier to hardware companies businesses have been shrinking as soon as the trade war began. Once the goal of brand building is clear they often come to us because they need marketing help as a first step to establish themselves as a global consumer brand.” The trend dubbed “direct-to-consumers ” or D2C also plays into China’s national plan to encourage manufacturing upgrades and homegrown innovations to compete globally an initiative that began to take shape around 2015. Ever-changing trade policies and geopolitics have forced many Chinese businesses to localize seriously whether that means setting up a foreign entity or building a local team. For Tuya which provides IoT solutions to device makers around the world the trade war’s effect has been “minimal” since it has operated a U.S. entity since 2015 which employs its local sales and technical support staff. Many opted to set up a Hong Kong entity to tap the city’s status as a global financial hub and evade trade restrictions on China an advantage of the territory that began to crumble following Beijing’s implementation of the national security law. We are in a business that’s neither threatening nor aggressive ” said Zhang Bohan founder of PopuMusic which counts the U.S. as one of its biggest overseas markets.

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