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They can search for new friends through various mechanisms, from the random “shake,” which connects you with other users shaking their phone to make new friends, to the integration of your phone contacts with the We Chat platform.

We Chat’s popularity is not due solely to its design, but also to the reputation of its designer, Tencent, which is China’s most valuable Internet firm by market capitalization.

Despite the favorable conditions for growth created by Tencent, We Chat has faced its fair share of challenges, including two behemoths in the Chinese Internet realm: 1) China’s powerful state-owned telecom operators, who were upset that their SMS fees were being eroded by We Chat’s free Internet messaging system; and 2) the wildly popular Sina Weibo, a Chinese social networking platform with over 500 million registered users. • Now world’s largest smartphone market, can China produce a top global brand?

• China and Cybersecurity: The Other Side of the Story • China’s E-Commerce Market Grows in Size, Importance and Dynamism • The Significance of Amazon Appstore’s launch in China • China’s Reaction to NSA Surveillance Gives Microsoft Reason to Worry So far, so good.

What’s next for China’s homegrown blockbuster, whose rivals include Silicon Valley’s Whats App, Japan’s Line, and Korea’s Kakao Talk?

Its future hinges on the answer to two questions: 1) Monetization – can Tencent turns We Chat’s popularity into profits?

The answer to this question is beginning to come into focus: “freemium” games and an online payment service.The rap on Chinese Internet companies has long been that their services are so localized that they can’t compete abroad.Baidu, the operator of China’s most popular search engine, famously tried to take its game to Japan, only to flop.AND in Chinese) began as an instant messenger for mobile devices and has developed into a multi-function mobile communications and social networking platform, or what Pando Daily’s Hamish Mc Kenzie refers to as “a social network and uber-communications platform.” My context China colleague Lilac Peterson recently offered a close look at all of its different features.Here’s a quick review: Users have a profile with a picture, can post “moments” to their timeline through a feature similar to that offered by Instagram, can connect with their friends through short voice messages (walkie talkie style), video chat (Skype style), or IMs (Whats App style).

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