In recent times, Chinese startups seeking to make a significant impact in the Western market have encountered a major obstacle: their ties to their homeland. The scrutiny faced by TikTok in the US over its management structure and data practices serves as a poignant reminder that abandoning one’s Chinese affiliations may be crucial for gaining acceptance overseas.
As part of our ongoing series on decoupling, we examine how some Chinese companies are navigating this complex landscape (see here and here). One company stands out from the rest: Seafile, a low-code application developer founded in 2012. Instead of attempting to conceal its Chinese identity, Seafile has opted for an unconventional approach by forging a symbiotic relationship with its German joint venture, SeaTable.
SeaTable: A Symbiotic Relationship
Since its inception in 2020, SeaTable has garnered nearly 200,000 users for its cloud-based database platform outside of China. The software’s on-premise version boasts an impressive clientele list, including the German Armed Forces, a corporation listed on the DAX stock exchange, and various ministries across Europe.
The story behind SeaTable is one of innovation and collaboration. Founded by two brothers, Ralf and Klaus Wimmer, the company sought to create a low-code database platform that would address the specific needs of European companies. By partnering with Seafile, they were able to leverage China’s expertise in software development while maintaining control over localization efforts.
Decoupling: A Necessary Evil?
The decoupling process has become increasingly essential for Chinese startups looking to expand into international markets. The complex regulatory landscape and concerns surrounding data security have led many companies to reevaluate their business strategies.
SeaTable’s approach serves as a prime example of how this can be achieved while maintaining the benefits of global collaboration. By localizing the software in Europe, SeaTable has managed to address the concerns of its customers regarding data security and ownership.
A Proactive Approach
While some may view SeaTable’s marketing strategy as unconventional, the company’s proactive approach has led to a significant increase in customer awareness about the Chinese origin of their software. The founders believe that this openness is essential for building trust with their clients.
"Many customers I speak to are totally oblivious of the Chinese origin of SeaTable," said Ralf Wimmer. "It’s me who discloses it to them, and we don’t want to engage in discussions at the very end when they say, ‘Look, you should have told us earlier.’"
This approach has also led to amicable discussions on cross-border collaboration that leverage software development in China and localization efforts in target countries.
Conclusion
The story of SeaTable serves as a testament to the complexities of Chinese startups navigating the Western market. By embracing an unconventional approach and localizing their software, they have managed to address the concerns of their clients while maintaining control over the business.
As the regulatory landscape continues to evolve, it remains to be seen how Chinese companies will adapt to these changes. One thing is certain: those that are willing to take a proactive approach to addressing their customers’ concerns will be better equipped to succeed in this increasingly complex market.
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