China “Creative Destruction”

Many observers are criticizing China’s market economy for its supposed lack of “creative destruction.” This is evidently not the case, as proven by events that took place in the first few weeks of the year. Ride-hailing company Didi Chuxing, for instance, has moved to add bike-sharing options to its platform and has acquired Bluegogo, a bike operator that had run into difficulties. This move gives Didi a competitive advantage as it strives to compete against Mobike. At the same time, Meituan-Dianping, a platform that had been traditionally known for its food delivery service, has begun offering car-hailing services in competition with Didi. The fight is on, and Didi Senior Vice President Chen Ting believes it will be the “war of the century.”