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Illustration: Rebecca Zisser / Axios

Chinese internet giants like Tencent, Baidu and Alibaba are ramping up investments in U.S. tech and media companies. They're also building data servers and acquiring ad tech businesses in the U.S. that can help them monetize media engagement from citizens living in America, like students or tourists.

Why it matters: There's a misconception that the Chinese push into the Western media tech market is to target new American users or to compete directly with U.S. tech companies. In reality, they're looking to expand their Chinese user base abroad and make money from Chinese expats who would rather use their own social, messaging, and commerce apps in the U.S.

There's a lot of ad revenue to be gained by targeting Chinese citizens using Chinese apps in the U.S., which is by far the largest and most mature digital advertising market in the world. Chinese tech companies can sell much more expensive ads to their audiences in the U.S. than they can in China.

  • Size of digital ad market in US: $83 billion
  • Size of digital ad market in China: $50 billion

Humphrey Ho, managing partner at Hylink, China's largest independent digital advertising agency (and the only one that's not state-run), says his firm estimates that the number of Chinese citizens traveling to the U.S. will jump from four million unique visitors to 10 million by 2021.

Investing in the U.S. ad tech landscape is a major priority for the Chinese internet companies, which tend to lag behind the U.S. in their ad technology. "You can expect a lot more of these investments to be made in the near future now that the ad tech landscape has consolidated in the U.S.," says Curt Moldenhauer, China Inbound Deals Leader at PwC.

  • Investments give Chinese executives access and exposure to the best practices of Western corporate management style, which tends to be much flatter and more welcoming of group decision-making.
  • They also give Chinese companies access to intellectual property that they can take back home to better compete with tech giants there.
  • There's also a political focus on Chinese expats, Axios' Bill Bishop notes. "Beijing has a set of policies and institutions that are focused on working with and influencing overseas Chinese, including through Chinese traditional media in foreign countries."

What's next? U.S. lawmakers are weighing ways to clamp down on some investments and acquisitions in light of concerns that they could give America's biggest rivals access to sensitive technologies that that are crucial to the U.S.'s economic and national security priorities.

They're also worried about giving Chinese companies access to data about U.S. citizens through some targeted acquisitions. The most notable example of this happened in November, when U.S. regulators killed Chinese private equity firm Orient Hontai's proposed $1.4 billion acquisition of U.S. marketing firm AppLovin for concerns about data security under a foreign owner.

In the meantime, look for all of these companies to have a major presence at the Consumer Electronics Show in Las Vegas this week, with sponsorships, speeches and showrooms.

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Cuomo asks New York AG and chief judge to choose "independent" investigator into sexual harassment claims

New York Governor Andrew Cuomo at a press conference on Feb. 24. Photo: Seth Wenig/pool/AFP via Getty Images

A special counselor to New York Gov. Andrew Cuomo released a statement on Sunday asking the state's attorney general and chief judge to jointly pick an "independent and qualified lawyer in private practice without political affiliation" to investigate claims of sexual harassment against the governor.

The state of play: The statement is an about-face from Cuomo, who had previously selected a former judge close to a top aide to lead the investigation, the New York Times reported, a move that was widely criticized.

Republican Sen. Sasse slams Nebraska GOP for "weird worship" of Trump after state party rebuke

Sen. Ben Sasse, (R-Neb.) Photo: Andrew Harnik - Pool/Getty Images

The Nebraska Republican Party on Saturday formally "rebuked" Sen. Ben Sasse (R-Neb.) for his vote to impeach former President Trump earlier this year, though it stopped short of a formal censure, CNN reports.

Why it matters: Sasse is the latest among a slate of Republicans who have faced some sort of punishment from their state party apparatus after voting to impeach the former president. The senator responded statement Saturday, per the Omaha World-Herald, saying "most Nebraskans don't think politics should be about the weird worship of one dude."

Cuomo barraged by fellow Dems after second harassment accusation

New York Gov. Andrew Cuomo faced a barrage of criticism from fellow Democrats after The New York Times reported that the second former aide in four days had accused him of sexual harassment.

Why it matters: Cuomo had faced a revolt from legislators for his handling of nursing-home deaths from COVID. Now, the scandal is acutely personal, with obviously grave political risk.