China’s Tech Expansion: Beyond TikTok, a Global Strategy Takes Shape
TikTok’s recent deal to avoid a U.S. Ban—creating a new entity to manage U.S. User data and algorithms—may be a turning point, but it’s just one piece of a much larger story. China’s tech companies are increasingly looking beyond their domestic market, with Southeast Asia emerging as a key testing ground and a new model for global expansion.
Southeast Asia: The New Frontier
While concerns over data privacy and national security continue to loom large in Western markets, Chinese tech firms are finding a more receptive audience in Southeast Asia. Malaysia, in particular, has develop into the second-largest market for Xiaohongshu (RedNote) outside of China, demonstrating the platform’s growing appeal. This region offers a young, mobile-savvy consumer base and a less restrictive regulatory environment.
This expansion isn’t limited to social media. Companies like ByteDance and Tencent are also investing heavily in e-sports, e-commerce, and artificial intelligence within the region. The appeal is mutual; Southeast Asia is becoming more open to adopting Chinese tech, partly due to existing trade and migration patterns and a significant Chinese diaspora.
A Surge in Digital Exports
China’s digital exports reached a record high of $33 billion in 2025, signaling a “structural transformation” in the country’s tech ecosystem. Historically focused on manufacturing and hardware, China is now exporting service-based infrastructure that influences global flows of information and commerce. This shift is evident in the success of platforms like Xiaohongshu, Taobao, Temu, and Shein.
Temu, for example, has rapidly gained market share, achieving a 24% share of the global e-commerce market in 2025—matching Amazon’s reach. TikTok Shop is also experiencing explosive growth, with its gross merchandise value reaching $64.3 billion last year, nearly doubling from the previous year. Southeast Asia accounted for $45.6 billion of that total.
Navigating Regulatory Hurdles
Though, expansion isn’t without its challenges. TikTok Shop faced temporary suspension in Indonesia in 2023 due to regulatory concerns, highlighting the need for adaptability. TikTok addressed this by acquiring a 75% stake in local e-commerce platform Tokopedia. This demonstrates a willingness to partner with local entities to overcome regulatory obstacles.
Experts suggest Chinese tech firms will likely adopt a more cautious approach in Western markets, mindful of the scrutiny TikTok faced. Jian Xu, an expert on Chinese media studies, notes that these companies are “wary of attracting the same level of political and regulatory scrutiny” and may prioritize regional markets over full-scale global dominance.
Data Security and Language as Considerations
Security concerns remain a key issue, particularly regarding data handling practices. Some Chinese apps, like Xiaohongshu, adhere to Beijing’s regulations requiring data storage and processing within the country. While many Chinese apps offer separate international versions with different security protocols, this isn’t universally the case.
Language barriers also present a temporary hurdle, but the increasing availability of translation tools is expected to mitigate this issue over time. As media exposure grows and translation technology improves, adoption among non-Chinese users is likely to increase.
FAQ
Q: Is RedNote the same as TikTok?
A: No, RedNote (Xiaohongshu) is a social media and e-commerce platform often described as “China’s Instagram.” It focuses on lifestyle content and product reviews.
Q: What is driving the growth of Chinese tech in Southeast Asia?
A: A young, mobile-savvy population, lighter regulation, and cultural proximity are key factors.
Q: Are there security risks associated with using Chinese tech platforms?
A: Some concerns exist regarding data privacy and compliance with Chinese regulations, but companies are adapting to address these issues.
Q: What is China doing to support its tech companies’ global expansion?
A: The Chinese government has pledged support for exporting digital offerings and promoting win-win cooperation.
Did you know? China’s digital trade surplus surged to $33 billion in 2025, demonstrating the growing economic impact of its tech sector.
Pro Tip: Keep an eye on Temu and Shein – they are rapidly disrupting the global e-commerce landscape.
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