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. ®

Choosing a cloud hosting partner with confidence

More from The Register

next story
Facebook pays INFINITELY MORE UK corp tax than in 2012
Thanks for the £3k, Zuck. Doh! you're IN CREDIT. Guess not
Google Glassholes are UNDATEABLE – HP exec
You need an emotional connection, says touchy-feely MD... We can do that
Lawyers mobilise angry mob against Apple over alleged 2011 Macbook Pro crapness
We suffered 'random bouts of graphical distortion' - fanbois
Just don't blame Bono! Apple iTunes music sales PLUMMET
Cupertino revenue hit by cheapo downloads, says report
US court SHUTS DOWN 'scammers posing as Microsoft, Facebook support staff'
Netizens allegedly duped into paying for bogus tech advice
Feds seek potential 'second Snowden' gov doc leaker – report
Hang on, Ed wasn't here when we compiled THIS document
Verizon bankrolls tech news site, bans tech's biggest stories
No agenda here. Just don't ever mention Net neutrality or spying, ok?
Inside the EYE of the TORnado: From Navy spooks to Silk Road
It's hard enough to peel the onion, are you hard enough to eat the core?
prev story

Whitepapers

Why and how to choose the right cloud vendor
The benefits of cloud-based storage in your processes. Eliminate onsite, disk-based backup and archiving in favor of cloud-based data protection.
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.
Reg Reader Research: SaaS based Email and Office Productivity Tools
Read this Reg reader report which provides advice and guidance for SMBs towards the use of SaaS based email and Office productivity tools.
New hybrid storage solutions
Tackling data challenges through emerging hybrid storage solutions that enable optimum database performance whilst managing costs and increasingly large data stores.
The Heartbleed Bug: how to protect your business with Symantec
What happens when the next Heartbleed (or worse) comes along, and what can you do to weather another chapter in an all-too-familiar string of debilitating attacks?