The internet as we know it is about to become a lot more fragmented, as countries take varying approaches to regulate tech platforms and protect data privacy. The development of the so-called “Splinternet” provides an opportunity for China to expand the border of its internet and enhance the international reach of its digital ecosystem.
The world has already seen the meteoric rise of TikTok, which has taken over the short-form video space by storm. Created and owned by Chinese software company ByteDance, TikTok shares the same UI and infrastructure as its Chinese counterpart Douyin. Although they are being managed by separate entities and don’t cross-share data or content, their features and formats are evolving in lockstep. This might set a template for platforms moving forward, providing global brands with some much-needed respite from localizing their marketing creatives from scratch in every region.
Looking ahead, the development of the splinternet presents an opportunity for China’s tech giants, such as Tencent, Alibaba, and the aforementioned ByteDance, to extend their reach beyond China to compete with the likes of Facebook, Google, and Amazon in international markets, especially in regions like Southeast Asia and sub-Saharan Africa where China is already heavily invested in infrastructure building.
Some Chinese technology sectors, such as 5G network equipment and mobile games, are already expanding overseas. Sensor Tower data shows that a total of 37 Chinese mobile games earned more than $100 million abroad in 2020, up from 25 games the year before.
Although at the moment most consumer brands in China are focused on the domestic market, there will come a time when they may need to explore international territories. But the digital landscape outside of China is very different from the Chinese digital ecosystem that Chinese marketers are familiar with. Instead of activating on WeChat and Tmall live streams, they will have to navigate a world dominated by U.S. tech giants such as Facebook and Google.
