Comment by bostik

Chinese companies have one massive advantage in aggregate: they know that from 2028 onwards they will be competing for a captive domestic market of >1.3B people. The CCP have declared as their industrial [service] policy that by the end of 2027, all Chinese companies must be using services exclusively from Chinese suppliers. The target ratio of domestic/foreign services is being ramped up year over year, so that by 2028 the base expectation is everyone to have 100% Chinese suppliers only.

From thereon, every exception must be justified to - and approved by - their respective politburo.

An obvious second-order effect is that there has been an explosion of Chinese B2B companies eager to get themselves established in the market. They know that in just a few years they can still sell their services outside China, but can expect very limited competition from non-Chinese companies. And inside the country, they have a population of ~4x of US to compete for.