China recorded an increasing trend of convergence in the technology, media and entertainment and telecommunications (TMT) sector as Chinese TMT companies are transforming to seek new growth points, said experts from global consultancy EY recently.
The comments came as an array of Chinese tech companies, including Tencent Holdings Ltd and Alibaba Group Holding Ltd, scramble to seek out cross-sector deals to make deeper dives into other industries.
“Convergence is blurring the lines between industries and business models as we move toward a truly digital economy at lightning speed,” said Greg Cudahy, global TMT leader of at EY.
During this process, it’s evitable that TMT companies are making some impact on traditional companies but collaboration will be a trend at the end of the day, he noted.
“Whether it’s TMT or traditional companies, whoever has capital, creativity or desire to win will gain a lead,” he added.
The trend also came as Chinese TMT companies become more globalized and are expected to be stronger in the future despite the current trade tension between China and the US.
“It is rather a matter of balance than a ‘trade war’,” said Greg, adding that it hurts in the long-term undoubtedly.
“However, competition brings companies greater exposure to the international stage and will make Chinese companies much stronger,” he added.
