Shailendra
Singh.
Lionel
Ng
|
Bloomberg
|
Getty
Images
China
will
remain
an
important
market
for
investors
in
the
long
term,
even
if
other
countries
are
now
benefiting
from
investments
flowing
out
of
China
amid
escalating
tensions
with
the
U.S.,
according
to
Peak
XV
Partners,
formerly
Sequoia
Capital
India
and
Southeast
Asia.
“The
China
Plus
One
strategy,
in
terms
of
sourcing
and
so
on,
is
definitely
benefiting
places
like
India,
Southeast
Asia,”
said
Shailendra
Singh,
managing
director
of
Peak
XV
Partners,
one
of
Asia’s
biggest
venture
capital
firms
with
$9
billion
of
assets
under
management.
“In
the
very
long
term,
if
you
take
a
10,
20,
30-year
view,
if
you
assume
that
geopolitics
will
find
some
new
normal,
China
is
going
to
be
a
huge
economy,
and
good
businesses
will
be
built
in
China,”
Singh
told
CNBC’s
Tanvir
Gill.
Last
year,
Sequoia
split
into
three
independent
geographic
units
–
Sequoia
Capital
in the
U.S.
and
Europe, Peak
XV
Partners
in
India and Southeast
Asia
and
HongShan
in
China.
The
move
came
amid
increasingly
strained
relations
between
Washington
and
Beijing.
Peak
XV
has
invested
in
over
400
companies
in
the
technology,
software,
financial
services
and
consumer
space.
They
include
fintech
firm
Pine
Labs,
Singapore-based online
retailer
Carousell,
Indonesian
ride-hailing
giant
Gojek
as
well
as
Indian
edtechs
Byju’s
and
Unacademy.
For
years,
China
has
been
Asia’s
technology
and
innovation
powerhouse,
being
home
to
tech
juggernauts
including
Alibaba
Group
and
Tencent.
It
has
also
gained
the
title
of
being
the
world’s
factory,
producing
low-cost
consumer
goods
as
well
as
most
of
the
world’s
iPhones
and
electric
vehicles.
However,
firms
such
as
Apple
and
BMW
have
been
diversifying
their
supply
chains
away
from
China
amid
geopolitical
concerns.
Apple
now
reportedly
makes
around
1
in
7,
or
14%,
of
its
iPhones
in
India,
after
stringent
Covid
controls
in
China
disrupted
its
operations
there.
While
India
and
Southeast
Asian
countries
have
been
benefiting
from
such
diversification
efforts
as
companies
set
up
operations
elsewhere,
China
will
still
be
an
important
market,
said
Singh.
watch
now
“All
of
us
around
the
world,
while
India
or
Southeast
Asia
might
benefit
in
the
short
term,
should
really
be
thinking
about
how
would
we
work
well
with
China
in
the
long
term,”
said
Singh.
David
Roche,
president
and
global
strategist
at
Independent
Strategy,
said
in
March
that
India
won’t
replace
China
in
global
trade
as
the
Chinese
model
was
“based
on
achieving
global
market
share”
while
the
Indian
model
is
“about
domestic
market
development.”
“India
will
continue
to
make
progress
but
it
will
a
slow
and
steady
progress,
and
not
at
all
similar
to
the
Chinese
model,”
said
Roche.
watch
now
