Chinese Big Tech’s walled gardens continue opening up

Business & Technology

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In a major shift akin to Netflix allowing Disney+ content onto its site, Alibaba now offers WeChat Pay, rival Tencent’s payment system, on some of its ecommerce apps.

The context: On September 9, China’s Ministry of Industry and Information Technology summoned tech executives to demand they dismantle barriers between their platforms. A major goal is to weaken the biggest platforms’ hold on customer data.

  • For now, the market is cornered: Tencent has 1.9 billion monthly active users, Alibaba has 1.6 billion, and ByteDance has 640 million.
  • On Sept. 17, Tencent was first to relent, allowing users to share links to rival platforms on WeChat.

Why it matters: Imagine if iPhone users couldn’t share YouTube videos via text message. That’s what the Chinese government wants to change.