Both China and the U.S. are building new products and networks that allow formerly unconnected products to communicate with each other and with us. This "Internet of Things", or IoT, is one of the fastest-growing technology segments, with Cisco Systems estimating its global value will hit $19 trillion by 2020. 

In China, telecoms are leading the IoT industry -- with China Mobile (NYSE:CHL) and China Unicom (NYSE:CHU) making the most progress in the country. China benefits from a government that is making Internet of Things connections a priority, but that's not stopping U.S. companies from benefiting in the country as well. 

Both General Electric (NYSE:GE) and Freescale Semiconductor (UNKNOWN:FSL.DL) are betting big on the Internet of Things, and are benefiting from the burgeoning Chinese IoT market. With China making huge strides in the space, the U.S. is leaving it up to tech companies to push innovation and catch up to the Asian power's Internet of Things growth. 

Chris Neiger has no position in any stocks mentioned. The Motley Fool recommends Apple, CalAmp, China Mobile, Cisco Systems, Google (A shares), Google (C shares), Intel, and InvenSense. The Motley Fool owns shares of Apple, General Electric Company, Google (A shares), Google (C shares), Intel, InvenSense, and Qualcomm. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.