The latest issue of the American Business Week print edition

Introduction: The latest issue of the United States "Business Week" print edition titled "Alibaba War Tencent: China Internet enclosure war escalation" (Alibaba vs. Tencent:china ' s growing internet Turf war), said The rivalry between Alibaba and Tencent has intensified as the enclosure wars in the Chinese internet market have escalated.

The following is the full text of the article:

China's richest two people are fighting an increasingly fierce battle in the world's largest internet market: The Tencent, led by Ma, is attacking Alibaba, the leader of the company.

The two-year-old micro-letter has accumulated more than 300 million users, while Alibaba injected Sina Weibo this April. Now Tencent is ready to start targeting Alibaba-led online payment services.

Alibaba, of course, will not sit idly by, they have prepared for the fight. August 1, the company announced that it prohibits businesses from using micro-letters to sell goods on the site. The paper blocked the user appeal of Tencent's micro-credit payment system, which was launched on August 5.

Alibaba said in a statement that the ban was issued because some sellers use micro-letters to solicit outbound transactions, but the company did not give a time limit for the ban. Instead, the company is trying to attract users to use Sina Weibo account to log in. Tencent declined to comment.

The containment of the payment platform will complicate the scramble for a share of the Chinese internet market. According to McKinsey, China's internet sales will surpass $395 billion trillion by 2015, up to 3 times times 2011 years. Ma Yun has not neglected this market.

According to the Bloomberg statistics, the personal net worth of Ma and horse is 3.6 billion and 9.6 billion dollars respectively. Tencent's share price rose 51% this year, becoming the first bull in Hong Kong's Hang Seng index, pushing its market value closer to $90 billion trillion. Goldman Sachs estimates that Alibaba is expected to be the first IPO in Hong Kong, China or New York this year, with valuations expected to reach $105 billion trillion.

The two companies will compete in the field of online financial services. A spokesman for Alibaba said the company's Alipay has reached a partnership agreement with 37 fund companies. Tencent this week also announced the cooperation with Huaxia Fund to provide micro-letter users with a threshold of only 100 yuan investment account. Tencent has also struck deals with 10 other fund companies, according to documents submitted to Chinese securities regulators in July of this year.

"Tencent is still in the enclosure stage," said Billy Leung, an analyst at the RHB Cato in Hong Kong. "Alibaba is trying to defend its territory. ”

Mr Ma said in March this year that although Alibaba had started to develop its mobile business as early as 3 years ago, the company still couldn't keep up with Tencent's micro-letter in mobile development. Tencent also has an important source of revenue for Alibaba: games. In Tencent's 2012 revenue of 44 billion yuan, more than half came from the game. The company boasts 15.6 million players in the first quarter of this year, including the popular game League of Heroes.

Alex Wang, an analyst at Eric Wang, said Tencent's advantage on the mobile platform would help it expand the gaming landscape more easily than in other areas. And if you want to help users find restaurants and stores, "I think Alibaba has a better chance," because the company has a first-hand advantage in payment systems, user basics, marketing, and so on. In a series of deals announced in 7 this year, Tencent acquired 15% per cent of the blizzard Stakes, with popular games such as Call of Duty and World of Warcraft.