Feeds

Silicon Valley comes to China to spur tech innovation

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

Boost IT visibility and business value

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. ®

The Power of One Brief: Top reasons to choose HP BladeSystem

More from The Register

next story
Stick a 4K in them: Super high-res TVs are DONE
4,000 pixels is niche now... Don't say we didn't warn you
BBC goes offline in MASSIVE COCKUP: Stephen Fry partly muzzled
Auntie tight-lipped as major outage rolls on
Philip K Dick 'Nazi alternate reality' story to be made into TV series
Amazon Studios, Ridley Scott firm to produce The Man in the High Castle
iPad? More like iFAD: We reveal why Apple fell into IBM's arms
But never fear fanbois, you're still lapping up iPhones, Macs
Bose says today is F*** With Dre Day: Beats sued in patent battle
Music gear giant seeks some of that sweet, sweet Apple pie
There's NOTHING on TV in Europe – American video DOMINATES
Even France's mega subsidies don't stop US content onslaught
You! Pirate! Stop pirating, or we shall admonish you politely. Repeatedly, if necessary
And we shall go about telling people you smell. No, not really
Too many IT conferences to cover? MICROSOFT to the RESCUE!
Yet more word of cuts emerges from Redmond
Joe Average isn't worth $10 a year to Mark Zuckerberg
The Social Network deflates the PC resurgence with mobile-only usage prediction
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
Application security programs and practises
Follow a few strategies and your organization can gain the full benefits of open source and the cloud without compromising the security of your applications.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
Securing Web Applications Made Simple and Scalable
Learn how automated security testing can provide a simple and scalable way to protect your web applications.