The communist Chinese regime's heavy-handed supervision of China's high-tech industries has greatly hindered its domestic tech innovation, prompting many Chinese tech firms and industry professionals to seek development overseas.
Web 3.0 is referred to as the next internet revolution or the third-generation Internet that is based on blockchain technology and cryptocurrencies. It is being developed based on the philosophy of decentralization, promising a new era where users have more control over how their data is collected.
The next-generation Internet is developing rapidly in the United States. However, Chinese tech companies and investors are casting a less optimistic eye over its development prospects in China due to the regime's regulations.
Compared with the current second-generation Internet (Web 2.0), Web 3.0 aims to be fully decentralized, meaning that platform owners can’t collect or monopolize users’ data and personal content, allowing users to be in control of their own creations.
Meanwhile, Web 3.0 aims to execute real-world financial transactions on the blockchain without the help of banks or the government, allowing users to conduct direct financial activities without intermediaries.
On April 29, a major Chinese scientific research publishing platform named Quantum School published an article titled “Web 3.0 has nothing to do with China.” The article was shared on many Chinese social media platforms and received millions of views but it was later taken down from those platforms.
The article said that the United States has led the world in the past three decades with its advanced internet technologies and that China’s internet industry has also developed rapidly in the past ten years. However, the next decisive battle is Web 3.0; whoever develops and establishes a complete Web 3.0 exosystem first will likely lead the era of the next 20 years.
It added that the Chinese Communist Party’s (CCP) strict regulation of blockchain-related technologies had hindered the domestic development of Web 3.0 in China, and that many of the country's entrepreneurs are now seeking to develop the technologies overseas.
As a result, major internet giants such as Tencent and Alibaba lost over $1 trillion in their combined market value as of March 15, the Chinese edition of The Epoch Times reported.
China’s Web 3.0 Development Goes OverseasAccording to an April 26 article by Chinese online media Huxiu, many Chinese internet giants, including Alibaba, Tencent, ByteDance, Meituan, NetEase, and Ant Financial, are losing many of their highly-paid employees who are leaving to work on Web 3.0 R&D start-ups overseas.
Some have reportedly gone to Singapore, the United Arab Emirates, and other places. Meanwhile, several tech giants such as Alibaba, Tencent, and ByteDance have also reportedly invested in Web 3.0-related industries overseas.
For instance, in March 2021, South China Morning Post, an Alibaba-owned newspaper, announced its venture into a new blockchain-based NFT business named Artifact Labs. Tencent and TikTok, a subsidiary of ByteDance, both invested in Immutable X, an Australian gaming start-up based on Web 3.0-related technologies.
Huobi Tech, a Chinese cryptocurrency trading platform, announced on April 24 that it had launched a strategic investment and M&A unit to seek investment opportunities in the blockchain industry overseas. It aims to look into areas such as Web 3.0, DeFi (Decentralized Finance), and the Metaverse.
Development in the USUnlike the CCP’s draconian regulatory environment for cryptocurrency-related industries, the United States has been more inclined to incorporate blockchain technologies into its financial regulatory system.
The hearing examined whether excessive regulations on cryptocurrencies would discourage innovations and hinder the development of Web 3.0, as well as discussed ways to allow the United States to maintain a competitive edge in Web 3.0.
Silicon Valley and Wall Street firms have invested heavily in the development of Web 3.0.