Chinese startups taking hold in Silicon Valley through innovation

New analysis is suggesting more and more Chinese startups are taking hold in California's Silicon Valley with the hope of reaping benefits in both the Chinese and US markets.

Bill Shao is working for a Chinese company, e-commerce giant Suning, in its research development center in the heart of Silicon Valley.

[File Photo: VCG]

From big name companies to his own start-up, Shao has been working in the Silicon Valley for 22 years.

Shao says there is a growing demand for engineers that are able to bring new innovative products back to China.

He says many unique products are being created in Silicon Valley.

One of those products is a hologram prototype Suning has been looking at for its unmanned retail stores.

"Add in a hologram, were we can have an assistant that you can interact with and be able to get information from her or him about anything in terms of product," Shao said.

Suning says setting up a Silicon Valley branch has offered the company exposure to the most cutting-edge and innovative technology.

Many Chinese companies, like Suning, face a challenge of increasing their brand awareness in the US.

In 2014, a young Chinese woman graduated from Columbia University and saw a market niche.

A year later, Pingo Wu founded Red Cube in Silicon Valley, making social-marketing videos for Chinese companies that have global ambitions.

One of Red Cube's most important functions is to introduce Chinese startups to Silicon Valley, especially the investors there.

John Uribe is the head of video production with Red Cube.

"One of our clients is called the One Highlight Piano. And we did a crowd-funding video for them. And they were able to reach like 1100 percent on their crowd-funding pages, which is amazing," John said.

In three years' time, Wu's company has grown from three people to 75 employees.

From manufacturing to technology, more and more Chinese firms are going into the American market.

And they're craving a closer relationship with US customers.

And some startups like Red Cube are helping them to do that.

Pingo Wu, founder of Red Cube, says her video business is booming.

"Recently, we just invested in a domestically well-known Chinese kitchen-ware factory to become their shareholder. After building a brand for the company, we also helped it with marketing and sales (in the US)," Wu said.

With US President Donald Trump promoting his "made in America" agenda, Wu says she intends to get into the manufacturing end of business as well, rather than just promoting the products of others.