Feeds

Silicon Valley comes to China to spur tech innovation

Yeah, that's probably going to take a while...

Internet Security Threat Report 2014

China’s attempts to rebrand itself as a technology innovator received a boost last week when US lender Silicon Valley Bank (SVB) announced a joint venture with Shanghai Pudong Development Bank (SPDB) which will provide capital to budding tech entrepreneurs.

The 50:50 partnership is the first to win approval by China’s Banking Regulatory Commission since 1997, and has been made possible thanks to a hefty one billion yuan investment by the two parties, according to local news service Xinhua.

Former SPDB vice president, Fu Jianhua, will serve as chairman of the new SPD Silicon Valley Bank, while Ken Wilcox, chairman of the SVB, serves as its president.

It is set to focus on lending to tech businesses in the Shanghai region to begin with, before turning attention to helping out tech innovators in other Chinese cities, according to the report.

The announcement can be seen as part of the government’s attempts to turn China into an “innovation-oriented country” by 2020, as it promised earlier this year.

The global reputation of Chinese tech companies is that historically they have prospered by copying the designs of western rivals, whether by ‘localising’ them – for example Baidu vs Google or Sina Weibo vs Twitter – or covertly stealing their IP.

Whether this is a fully justified stereotype is open to debate, but the analysts seem to think that China’s progress towards an innovation-driven technology industry will take decades and require a move away from the classic risk averse, consensus-driven philosophy of typical local companies today.

Another barrier that could stand in the way of web start-ups in the region is the high cost associated with self-regulation of user-generated content as required by China’s strict censorship regime. ®

Providing a secure and efficient Helpdesk

More from The Register

next story
Scrapping the Human Rights Act: What about privacy and freedom of expression?
Justice minister's attack to destroy ability to challenge state
WHY did Sunday Mirror stoop to slurping selfies for smut sting?
Tabloid splashes, MP resigns - but there's a BIG copyright issue here
Google hits back at 'Dear Rupert' over search dominance claims
Choc Factory sniffs: 'We're not pirate-lovers - also, you publish The Sun'
EU to accuse Ireland of giving Apple an overly peachy tax deal – report
Probe expected to say single-digit rate was unlawful
Inequality increasing? BOLLOCKS! You heard me: 'Screw the 1%'
There's morality and then there's economics ...
Hey Brit taxpayers. You just spent £4m on Central London ‘innovation playground’
Catapult me a Mojito, I feel an Digital Innovation coming on
While you queued for an iPhone 6, Apple's Cook sold shares worth $35m
Right before the stock took a 3.8% dive amid bent and broken mobe drama
EU probes Google’s Android omerta again: Talk now, or else
Spill those Android secrets, or we’ll fine you
prev story

Whitepapers

Forging a new future with identity relationship management
Learn about ForgeRock's next generation IRM platform and how it is designed to empower CEOS's and enterprises to engage with consumers.
Storage capacity and performance optimization at Mizuno USA
Mizuno USA turn to Tegile storage technology to solve both their SAN and backup issues.
The next step in data security
With recent increased privacy concerns and computers becoming more powerful, the chance of hackers being able to crack smaller-sized RSA keys increases.
Security for virtualized datacentres
Legacy security solutions are inefficient due to the architectural differences between physical and virtual environments.
A strategic approach to identity relationship management
ForgeRock commissioned Forrester to evaluate companies’ IAM practices and requirements when it comes to customer-facing scenarios versus employee-facing ones.