• Home
  • Latest
  • Fortune 500
  • Finance
  • Tech
  • Leadership
  • Lifestyle
  • Rankings
  • Multimedia

Trendingnow

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales

1

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens

2

Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year

3

As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
TechChina

Uber’s Surrender to Didi Shows the Steep Odds U.S. Tech Faces in China

By
Scott Cendrowski
Scott Cendrowski
Down Arrow Button Icon
By
Scott Cendrowski
Scott Cendrowski
Down Arrow Button Icon
August 3, 2016, 5:43 AM ET
Key Speakers at WEF Annual Meeting of the New Champions
Travis Kalanick, billionaire and chief executive officer of Uber Technologies Inc., listens during a session at the World Economic Forum (WEF) Annual Meeting of the New Champions in Tianjin, China, on Sunday, June 26, 2016. The meeting runs through June 28. Photographer: Qilai Shen/Bloomberg via Getty ImagesPhoto by Qilai Shen/Bloomberg via Getty Images

If Uber couldn’t make it in China after doing almost everything right—hiring local, cozing up to governments, earmarking billions for the fight—can any U.S. technology company?

Not with the dominance Uber envisioned. That’s not how China is designed.

Even before China president Xi Jinping’s latest strongman campaign to wean China off foreign technology under the guise of national security, the government has insisted on information control befitting a one-party state. That led to the blocking of Google (GOOGL), Facebook (FB), and Twitter (TWTR), and the rise of Chinese alternatives that would abide by censorship demands. After the U.S. tech firms were expunged around 2009, this new Chinese tech order took shape.

Baidu and Tencent were the biggest beneficiaries. Baidu’s censored search now controls 80% of the Chinese market, while Tencent’s WeChat social network and QQ messenger—also censored, sometimes heavily—enjoy dominant market shares.

China’s tech market is shaped and controlled by four big players: Baidu, Alibaba, Tencent, and the government. The big three tech companies have spent billions expanding into every conceivable new tech vertical in the country: payments, autonomous cars, health care, insurance, and of course ridesharing. The government, meanwhile, sets the rules and has amassed its own $340 billion venture capital fund.

So when Uber came to China in 2014, it was not only going up against local ridesharing competitors, but also this government-supported group of tech giants. Tencent was an early backer of Didi, and Alibaba (BABA) had become one after betting on a competitor that merged with Didi last year.

Uber knew what it was up against. Founder Travis Kalanick tried to allay government concerns with repeated country visits and promises of employment and efficiency improvements in cities. He even got Uber backing from Baidu (BIDU), the one company of the big three tech giants that wasn’t already betting on a ridesharing winner.

But even if foreign tech companies don’t experience overt government discrimination—as Uber did not—they are faced with a government-aligned group with deep pockets to support homegrown startups. Tencent (TCEHY) invested $15 million into Didi back in 2013 and has been funneling hundreds of millions into it since.

Tencent especially wasn’t shy about pushing its agenda supporting Didi. On WeChat, Uber’s public accounts for hiring and services were shut down three separate times last year, starting in the spring. By August, Uber was gone from WeChat. Tencent might be able to pass it off as a glitch, however improbable, except something similar happened two weeks ago when another Baidu-backed ridesharing startup called Yidao unveiled a price comparison tool aimed at undercutting Didi. WeChat immediately blocked its website. Tencent later said the company broke WeChat’s rules, prompting Yidao founder Zhou Hang to conclude, “Only Didi is an exception [to the rule].”

 

China’s tech giants joining proxy wars makes the Chinese market tough to win for outsiders. This, combined with the difficulty of beating Chinese competitors who understand their home market better—Didi never lost its market share lead to Uber thanks in part to local executives who understood there was a big market for ridesharing on buses, for instance—makes outsiders’ chances at success today near impossible.

Almost any foreign tech company trying to expand to China faces this dynamic. Deep-pocketed Chinese tech companies like Tencent can play the long game. After all, it was Uber’s local investors who were clamoring to get out of China—out from under the $1-billion a year Uber was losing in its fight against Didi.

That’s how China is now stacked up.

About the Author
By Scott Cendrowski
See full bioRight Arrow Button Icon

Latest in Tech

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025

Most Popular

Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Finance
Lorem ipsum dolor sit amet, consectetur adipiscing elit, sed do eiusmod tempor incididunt ut labore et dolore magna aliqua. Ut enim ad minim veniam
By Fortune Editors
October 20, 2025
Fortune Secondary Logo
Rankings
  • 100 Best Companies
  • Fortune 500
  • Global 500
  • Fortune 500 Europe
  • Most Powerful Women
  • World's Most Admired Companies
  • See All Rankings
  • Lists Calendar
Sections
  • Finance
  • Fortune Crypto
  • Features
  • Leadership
  • Health
  • Commentary
  • Success
  • Retail
  • Mpw
  • Tech
  • Lifestyle
  • CEO Initiative
  • Asia
  • Politics
  • Conferences
  • Europe
  • Newsletters
  • Personal Finance
  • Environment
  • Magazine
  • Education
Customer Support
  • Frequently Asked Questions
  • Customer Service Portal
  • Privacy Policy
  • Terms Of Use
  • Single Issues For Purchase
  • International Print
Commercial Services
  • Advertising
  • Fortune Brand Studio
  • Fortune Analytics
  • Fortune Conferences
  • Business Development
  • Group Subscriptions
About Us
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • About Us
  • Press Center
  • Work At Fortune
  • Terms And Conditions
  • Site Map
  • Facebook icon
  • Twitter icon
  • LinkedIn icon
  • Instagram icon
  • Pinterest icon

Latest in Tech

Dan Rogers speaking on stage.
AIAsana
Asana was battered by the AI boom. Now it’s betting its future on humans and agents working together.
By Beatrice NolanMay 29, 2026
6 hours ago
Exclusive: Microsoft is building a super app that combines coding, chat, and other Copilot AI tools
AIMicrosoft
Exclusive: Microsoft is building a super app that combines coding, chat, and other Copilot AI tools
By Sebastian HerreraMay 29, 2026
8 hours ago
Claude Mythos shown on a smartphone screen.
AIAnthropic
Anthropic leapfrogs OpenAI with a record $965 billion valuation and says its ‘Mythos’ AI model is coming soon 
By Beatrice NolanMay 29, 2026
8 hours ago
Why Meta hired Dina Powell McCormick
NewslettersMPW Daily
Why Meta hired Dina Powell McCormick
By Ellie AustinMay 29, 2026
9 hours ago
The AI arms race in cybersecurity has started. Most companies aren’t ready
Cryptocyber
The AI arms race in cybersecurity has started. Most companies aren’t ready
By Philip MartinMay 29, 2026
9 hours ago
Kalshi adds perpetual futures for U.S. traders following thumbs-up from key regulator
CryptoBitcoin
Kalshi adds perpetual futures for U.S. traders following thumbs-up from key regulator
By Jack KubinecMay 29, 2026
9 hours ago

Most Popular

As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
Magazine
As CEO of the $96 billion Sam’s Club, Latriece Watkins is testing her mettle at the warehouse retailer that produced CEOs for Walmart, Target, and Walgreens
By Emma HinchliffeMay 27, 2026
3 days ago
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
Success
Jeff Bezos wants the bottom half of earners to pay zero income tax—he says nurses making just $75K should save $12K a year
By Preston ForeMay 21, 2026
8 days ago
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
Success
As AI slashes white-collar jobs, Salesforce CEO Marc Benioff says almost no one is being hired—except in sales
By Emma BurleighMay 28, 2026
1 day ago
Current price of oil as of May 28, 2026
Personal Finance
Current price of oil as of May 28, 2026
By Joseph HostetlerMay 28, 2026
2 days ago
The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
Environment
The river that supplies 40 million Americans is down to 23% — and about to make a $25 million bet on one fish
By Dorany Pineda, Brittany Peterson and The Associated PressMay 27, 2026
2 days ago
Jamie Dimon said the American Dream was slipping away. JPMorgan just put $40 million on the table to fix it
Banking
Jamie Dimon said the American Dream was slipping away. JPMorgan just put $40 million on the table to fix it
By Nick LichtenbergMay 27, 2026
3 days ago

© 2026 Fortune Media IP Limited. All Rights Reserved. Use of this site constitutes acceptance of our Terms of Use and Privacy Policy | CA Notice at Collection and Privacy Notice | Do Not Sell/Share My Personal Information
FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.