China has been overtaken by Europe in creating billion-dollar tech startups, according to a new analysis. Europe’s rising status in the field and the effect of Beijing’s crackdown on capitalist entrepreneurialism have been pointed out in a report. But both economies still lag behind the U.S. in creating business unicorns.
China has reined in its most successful tech giants over the past few years, including Alibaba Group Holding Ltd. and Tencent Holdings Ltd. Europe has got its investments in the tech industry mainly from the US.
The volume and nature of some of the investments in China, from critical infrastructure in eastern and southern Europe to high-tech companies in the west, once raised a red flag at the European Union level. But now Europe seems to have supremacy in that sense upon startups over China.