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Over 80% of China's Unicorn Companies Practice a New Economic Model

BEIJING, Aug. 24, 2020 /PRNewswire/ -- On August 21, The 2020 Summer Summit of the Global Sharing Economy Forum was hosted by the China Business Federation, The China Association of Small and Medium Enterprises, and The China Industry Development Promotion Association. The forum was part of global business accelerator TOJOY's 2020 China Unicorn Business Carnival, receiving special support from the Global Alliance of Sharing Economy, Sina Finance, and China Business News.

Diverse opinions offered on the Great Sharing Economy

Several big names participated in the event, including former Australian Prime Minister Kevin Rudd, and former Apple executive and TOJOY Global CEO Ge Jun.

In his role as Secretary-General of the Global Sharing Economy Alliance, Ge gave a presentation entitled "The Great Sharing Economy Gives Birth to Unicorns". He pointed out that traditional sharing economy models that share small property rights on commodities such as cars, bicycles, and home rentals is transitioning to a model where larger business assets such as capital, production capacity, and intellectual property rights are made available for sharing.

Ge also pointed out that as global economy faces severe challenges, the Great Sharing Economy could become a platform to connect the economies of all countries, promoting the reconstruction of the global economic order. Ge asserted that in this process, traditional industries could be transformed and upgraded with the help of Great Sharing Economy practices, and emerging industries could further accelerate their development. The resulting increase in value could thus bring businesses to unicorn status in bulk.

The Great Sharing Economy, a fertile ground for unicorns

Combining data from CB Insights, PitchBook, and more, the "2020 Unicorn Enterprise Annual Observation Report" released at the event outlined the effectiveness and penetration of sharing economy practices across China.

According to the report, as of July 31, 2020, there are 285 unicorn companies in China, with a total valuation of 1.3 trillion U.S. dollars. Among them, 234 companies display sharing economy attributes, accounting for 89.17% of the total valuation of all Chinese unicorn companies.

Several companies on this list of sharing economy-empowered unicorns, including maternity and childcare giant B&G, nationwide digital delivery platform Sousou Shenbian, and the largest publicly listed company on a mainland Chinese stock exchange, Kweichou Moutai, have partnered with event host TOJOY for acceleration.

Because of this, the China Association for the Promotion of Industrial Development recently announced its cooperation with TOJOY, officially establishing the China Association for the Promotion of Industrial Development—Industrial Innovation Experimental Base at the event. Both organizations hope the project will encourage the development of and innovation by future unicorn companies.