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US-China tech war
TechBig Tech

Chinese tech firms can’t win trust in the West, but the companies aren’t the biggest culprit

  • Foreign suspicions over Beijing’s relations with Chinese tech companies are unlikely to go away soon, analysts say
  • Chinese firms such as ByteDance, Xiaomi and DJI, which have found global success, are struggling to ease data privacy concerns

Reading Time:5 minutes
Why you can trust SCMP
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The Chinese national flag is seen in Beijing, China, on April 29, 2020. Photo: Reuters
Masha Borak

The most daunting challenge Chinese tech firms faced abroad used to be convincing consumers of the quality of their products. But the rapid rise of big names such as TikTok and Xiaomi has given way to a new obstacle that experts say is harder to beat: persuading foreign governments that Chinese businesses are only trying to pursue profits rather than Beijing’s political agenda. 

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Around the world, suspicions have been rising about Chinese tech companies’ relations with authorities at home.

The new US administration under President Joe Biden is reviewing the country’s policy towards ByteDance, the Chinese firm that was given an ultimatum by the Trump administration last year to sell its American TikTok operations. In India, the short video app remains banned along with dozens of other Chinese apps. Both the US and Indian governments have cited national security as a reason for their actions. 
Smartphone maker Xiaomi is trying to clear its name after the US Department of Defence designated the Chinese company an affiliate of the People’s Liberation Army. The move, which would bar Xiaomi from receiving American investments, is currently on hold.
A view of the TikTok building in Culver City, California, on November 17, 2020. Photo: AFP
A view of the TikTok building in Culver City, California, on November 17, 2020. Photo: AFP
These developments – along with US scrutiny of Chinese drone manufacturer DJI and Zoom, the videoconferencing tool launched by Chinese-born American entrepreneur Eric Yuan – are some of the most prominent examples of growing foreign mistrust against tech companies with any Chinese ties.
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While these businesses have repeatedly denied that they share user data with Chinese authorities, the country’s state-led economy and laws are not helping their case, according to analysts. 

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