Office workers have increasingly recognized the importance of video conferencing software, a lesson reinforced by the Covid pandemic. Globally, platforms like Cisco's WebEx, Microsoft Teams, and Zoom have dominated the market. In China, however, Alibaba (NYSE:BABA/SEHK:9988) with DingTalk, and Tencent (SEHK:700) with Tencent Meeting—and its international version, VooV—have established their own robust platforms and are protected from foreign competition.
However, some providers of these alternatives, like Huawei’s HarmonyOS and the state-led Unity OS, are not publicly listed, limiting investment opportunities.
Nevertheless, there are other companies investors can consider as a starting point for potential investments. For example, Kingsoft (SEHK:3888) offers an alternative to Microsoft's Office suite and Adobe Acrobat with WPS Office, which has received positive reviews.
This step towards technological independence, aimed at avoiding future US bans, shows China isn't fully prepared across all software sectors.
Some successes, like WeChat and its integrated payment systems and mini-programs, demonstrate China's capability to innovate independently, creating unique solutions that have even garnered envy from the West.
However, technologies that merely mimic Western ones, adapted for China, tend to be less innovative. Still, having a credible alternative is sufficient for China's pursuit of operational independence.
We are particularly interested in publicly listed companies providing these software alternatives, as this allows for investment and potential financial gains.
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