Grandseeds

China and USA are friends after all –- at least in the domain world


October 19, 2019 (Sat). I like the old saying "Every cloud has a silver lining." In every crisis you can find an element of good and even opportunity. This may apply to the current relationship between China and the USA. In the element of domains, I actually see the two countries working hand in hand.

I have been watching the domain world for about 10 years. One thing I have noticed is that companies often adopt domains of their own country extension. This is so in Germany where .de is mainstream. U.K. is about .uk domains. In Japan, .jp is popular. Here in Middle Earth, the hobbits roam the land of .nz. So, it seems to be all about country extensions.

.us was created in 1985 as the American country extension but it never took off, having only 2 million domains after all these years. Instead, .com has become the de facto USA country extension with 91 million domains registered. It has even spread to other countries but .com domains are mainly used outside these countries.

China is different. Chinese companies love .com more than .cn. This is evident in the 2018 Top 100 Chinese Internet Companies Report where 86% of them use .com as corporate domains. Some companies even don't use .cn domains within China. For example, the $3 billion education startup VIPKID operates from VIPKID.com but not VIPKID.cn. Keep, a sports startup with more than 160 million users, is available only on Keep.com but not Keep.cn.

In the world of domains, China and the USA are actually working hand in hand. They both see .com as the best extension and efforts by companies in both countries to adopt .com will position .com as not an American country extension but a global extension.

When the 1st and 2nd largest economies lead, other will follow. So, .com will increasingly become king in the world and its value will continue to rise over the long term.

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