Huawei, DJI, and ByteDance, why do these unicorn companies insist on not going public?

Mondo Finance Updated on 2024-01-28

Why Huawei, DJI, ByteDance and other "unicorn" companies stick to the mystery of not going public.

In recent years, Chinese technology giants such as Huawei, DJI, and ByteDance have emerged in their respective fields and can be called "unicorns". However, it is puzzling that despite their great global success, they are not on the path to going public. What is it that makes them so insistent on independence?

First of all, Ren Zhengfei has said that Huawei will never go public, mainly out of concern about capital coercion. Looking back on 2018, when Huawei was fully sanctioned by the United States, if it was a listed company, its stock price would inevitably respond, and the frantic flight of capital would lead to the collapse of the company. By not going public, Ren Zhengfei was still able to use his own funds to invest heavily in research and development when he was in trouble, and launched his own operating system, HarmonyOS, which has survived the cold winter of US sanctions.

At the same time, ByteDance also paid the price for not going public. Douyin's overseas version of TikTok is under threat of being banned by the United States many times, because ByteDance is not a listed company, and American capital cannot easily penetrate. This has led to the United States trying to control ByteDance by banning or coercing business, forming a game of competition and grabbing.

DJI drones account for 70% of the global market, and its insistence on not going to market is also due to its dedication to independent research and development. The United States has repeatedly tried to restrict DJI's development through sanctions, however, because DJI is not interfered with by external capital, it can concentrate on technological innovation, making it far ahead in terms of technological level and not forced by others.

The reason why these companies insist on not going public is also because some countries show fear and uneasiness about competition when faced with better companies than them. This kind of performance is not true self-confidence, but a manifestation of weakness. In China's inclusive environment, these companies are able to bravely challenge and export their technology to the world, which also demonstrates the strong strength of China's science and technology.

In general, these "unicorn" companies insist on not going public, because of the resistance to capital coercion, the persistence of independent innovation and the confidence in global competition. They may not have made it to the public market, but they have demonstrated the resilience and strength of Chinese tech companies on a global scale.

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