Despite all the negative press about censorship and the "great firewall", the Chinese government actually did a fantastic job blocking out competition and allowing home companies to grow. Talk about the ultimate form of protectionism. Blatant but effective. There is no other country in the world that can rival America's internet juggernaut today besides China. Every other nation has succumbed to America's dominance.
On top of that, China has 1.3 billion people. The developed nations combined (US, Western Europe, Japan) have way less. So Chinese internet companies does not need global dominance to be just as effective. They just need to dominate their own market. When Chinese living standards eventually rise on par with the West (and that will happen), these companies will achieve greater market cap than their western rivals, even if they strictly remain domestic.
Also, the argument that Chinese companies can't go global because its employee base is not ethnically diversified is completely speculative and baseless. Japanese companies have never been diverse yet they achieved global dominance in many sectors. Chinese companies are not global now because (1) their growth trajectory is much later than western counterparts and (2) they have a huge domestic population to satisfy growth demands so it isn't necessary to go global.
Moral: now is a good time to be buying Chinese internet stocks.