Inshort,
In this modern world.The internet and the online content is highly regulated in China or we can say world wide . This has limited the entry of the global social networks in the country. The censorship has resulted in protectionism and elimination of the competition for the home grown companies from international entities. This enabled Chinese social networks to be as profitable as the dominant players globally. However, China is a huge and the most popular nation in the world. Thus, due to its enormous size and population, it has the highest number of internet users in the world and the competition is expected to intensify amid social networking companies in the nation.
China the land of opportunities for internet based businesses
Use of internet is increasing day by day.The internet based businesses such as social media and networking, search engines, web-based emails, etc. And are mainly dependent on advertisement revenues and subscription fees from users. Hence, the number of internet users is a key parameter to determine the attractiveness of a country for such businesses. China has 700 million internet users, which is highest in the world. Though India and the United States occupy the 2nd and the 3rd positions, but the number of users in these countries is less than half of China.
A user spending time on a particular network is a loss of opportunity for other networks. Thus, it can be concluded that although networks in China are protected from global competition the country is the world within, where competition for survival is increasing day by day. Additionally, existing players are facing challenges for growth and thus, gainful innovation is the key to success.