Tag: China

  • Samsung Electronics to open flagship store in Gangnam to target Gen Z

    Samsung Electronics to open flagship store in Gangnam to target Gen Z

    Samsung Electronics said Wednesday it will open a six-story flagship store in Gangnam, southern Seoul, to offer customers, especially the Gen Z population, more personalized services and experiences.

    In a media event, one day prior to the public opening, the tech giant said it expected the Samsung Gangnam store to serve as a “playground” for young users where they can learn and experience the cutting-edge technologies and innovation Samsung has to offer.

    “The area near Gangnam Station has always been a place for young people to gather and spend time together,” Jung Ho-jin, vice president of Samsung’s mobile experience division, said when asked why the company chose the area to open its first such store.

    The 2,000-square-foot venue, 10 minutes away on foot from its rival Apple’s Gangnam store, felt more like a brand experience center than a retail outlet. Located on Gangnam Boulevard, one of Seoul’s main shopping and business districts, it comes with an after-sales service center, a seminar and lecture space, a small Galaxy museum, a coffee shop and Instagrammable photo zones filled with artworks.

    “We would like to see people freely come visit here, even for just a quick bathroom run,” Jung added.

    The opening came amid continued headwinds from global economic uncertainties, slow consumer demand and muted brand loyalty for Samsung’s Galaxy smartphones among young people.

    A survey released early this year by the Seoul-based Vinu Labs showed Apple’s iPhones are more popular than Samsung’s Galaxy phones among South Koreans in their 20s, who chose “trendy” and “upscale” as the two words that describe Apple’s brand image. The words for Samsung were “friendly” and “practical.”

    The opening also took place about a month prior to Samsung’s scheduled first Galaxy Unpacked event in South Korea, where it is set to unveil its latest foldable phones, watches and other innovative products.

    “The store is designed to target not only young customers but also anyone with open and young minds,” Jung said.

    “I believe Samsung has its own know-how to deliver unique benefits and color to customers through a variety of products,” Jung said, while avoiding answering directly how the tech giant plans to address lower adoption rates than those of rival Apple among Gen Z.

    “At Samsung Gangnam, people can feel Samsung Galaxy products have never stopped evolving,” he said. “We will continue to run our business with such pride in mind going forward.”

  • Thaco to sell 10% stake in automobile subsidiary

    Thaco to sell 10% stake in automobile subsidiary

    Truong Hai Group (Thaco Group) is looking for investors to sell a 10% stake in automobile manufacturing and distributing subsidiary Thaco Auto.

    Nguyen Hung Minh, vice chairman of Thaco Group, said Wednesday that the sale of 10 percent of shares in Thaco Auto is meant to raise funds for production and business, investment in expanding the retail system and development of new products.

    Ho Chi Minh City Securities Corporation (HSC), Thaco’s financial advisor, is working on this plan.

    DMeanwhile, Thaco’s ESOP shares issued in 2018 will be converted to make it a public joint stock company. This company plans to list on the market within the next next years.

    According to Nguyen Hung Minh, all production activities of Thaco Auto currently take place at our industrial park in Chu Lai.

    Recently a number of domestic and foreign investors have been working with Thaco and HSC on buying the Thaco Auto shares.

    Negotiations are still ongoing and no decision has been made, but Minh said Thaco expects to complete the deal this year.

    The company, owned by billionaire Tran Ba Duong, is a diversified corporation with interests in automobiles, agriculture, mechanical engineering and supporting industries, construction investment, logistics, trade, and services.

    Thaco Auto manufactures, assembles, and distributes KIA, Mazda, Peugeot, and BMW cars and has nearly 400 showrooms across Vietnam.

    Mazda cars being manufactured at Thaco Auto’s factory in the Chu Lai Industrial Park, Quang Nam Province. Photo courtesy of Thaco Auto

    Thaco Auto has a production complex with seven factories in the Chu Lai Industrial Park (Quang Nam).

    This year it targets sales of over 120,000 vehicles, including 96,000 passenger cars, 23,500 trucks and 1,500 buses and minibuses.

    It expects consolidated revenues of over VND90 trillion, equivalent to nearly $USD3.8 billion, including VND5.2 billion from services.

    In 2022 the company sold 111,440 vehicles to retain the largest market share in the country at 38 percent.

  • Daniel Zhang steps down from top Alibaba Group

    Daniel Zhang steps down from top Alibaba Group

    Alibaba Group has appointed Joseph C Tsai and Eddie Yongming Wu as the company’s new chairman and CEO respectively, marking the group’s one of the most significant organisational changes.

    The appointments will take effect on September 10. Tsai and Wu will succeed Daniel Zhang, who will continue to lead Alibaba Cloud Intelligence Group as chairman and CEO.

    “This is the right time for me to make a transition, given the importance of Alibaba Cloud Intelligence Group as it progresses towards a full spin-off,” said Daniel Zhang, chairman and CEO of Alibaba Group. “The emergence of generative AI has also opened up exciting new opportunities that Alibaba Cloud Intelligence Group is well-positioned to capture.”

    “Daniel has made exceptional contributions to the development of Alibaba Group since joining the company in 2007,” said Tsai, executive vice chairman of Alibaba Group. “He demonstrated extraordinary leadership in navigating unprecedented uncertainties affecting our business over the past few years.”

    Alibaba Group’s newly appointed CEO Yongming Wu, one of the group’s co-founders aside from Jack Ma and Tsai, will continue to concurrently serve as chairman of Taobao and Tmall Group. Wu was the technology director of Alibaba at the company’s inception in 1999. He founded Vision Plus Capital, a venture capital firm focused on investing in advanced technologies, enterprise services and digital healthcare in 2015.

    “Eddie was instrumental in architecting our technology platforms and guiding our strategic direction,” Tsai said. “He led the creation of our proprietary monetization platform on Taobao and Tmall, and drove the launch of the Mobile Taobao App to propel our company to the mobile-first era.”

    The group said last Thursday it is shifting its focus to building local businesses and online platforms outside of China with Europe as the top priority.

  • Chinese increased demand boosts Vietnam’s durian exports

    Chinese increased demand boosts Vietnam’s durian exports

    Vietnam’s durian export value reached more than US$500 million in the first five months, an increase of more than 18 times against the same period last year.

    According to the General Department of Customs, during the period, vegetable and fruit exports stayed at $2.03 billion, up 43% over the same period last year.

    The main contributor to the increase in Vietnam’s farm exports was durian.

    In May, the export value of durian reached the highest level ever, at $332 million, more than 10 times higher than the previous month.

    In the first five months, durian export value hit $503.4 million, more than 18 times higher than the same period last year. Among the import markets, China was the biggest buyer with a value of $477 million.

    China controls its technical barriers for food safety and hygiene, but the quality of Vietnamese goods has increasingly improved and consumers favor their competitive prices, a representative of a fruit and vegetable export company in HCMC, who wants to stay unnamed said.

    Vietnam currently has 293 farming areas and 115 durian packing facilities granted with official codes to export to China.

    In May, Vietnamese durian entered its harvest season, contributing to increasing export volume and value.

    Two weeks ago, some 700 trucks, most of them carrying durian, were stuck trying to enter China from Vietnam’s Lang Son Province, prompting Vietnamese authorities to negotiate with their Chinese counterparts to solve the congestion.

    China has agreed to extend the working time for customs clearance of farm products from Vietnam by two more hours to 10 p.m. (Hanoi time).

  • LVMH chief Bernard Arnault to visit China in June

    LVMH chief Bernard Arnault to visit China in June

    LVMH.PA chief Bernard Arnault is set to visit China, two sources told Reuters on Thursday, as European luxury goods makers closely track the pace of recovery of the key market following three years of COVID disruptions.

    One of the sources close to the matter said Arnault’s visit to the all-important Chinese market, which comes after high-profile visits to the country this week by JPMorgan Chase & Co JPM.NCEO Jamie Dimon and Tesla chief Elon Musk, will take place later this month.

    LVMH, home to brands ranging from Moet to Givenchy, declined to comment.

    The sources didn’t give a reason for the trip or say where in the country Arnault was likely to visit.

    The LVMH chairman and chief executive met with Chinese Commerce Minister Wang Wentao in Paris in April at the Avenue Montaigne flagship store of the group’s Christian Dior label.

    Arnault’s daughter Delphine Arnault, CEO of Dior, as well as other top LVMH executives attended the meeting, and the group pledged take part in China’s International Import Expo, which will be held in Shanghai in November.

    Chinese officials have been eager to emphasize the country is open for business since lifting lockdowns in December. The recovery has been patchy but the luxury sector has outperformed other consumer categories as wealthy consumers have maintained their spending habits on the Mainland.

    The planned visit for Arnault comes at a critical time for LVMH’s reboot of U.S. jeweler Tiffany, its largest acquisition ever, which it seeks to expand in China as part of a strategy to catch up with larger rival Cartier.

    A rebound in China helped lift LVMH’s first-quarter sales, which grew 17%.

    Executives from other luxury companies are also emphasizing China, especially as sector sales in the United States show signs of easing off of a strong, post-pandemic surge.

  • Foreign Bank Expansion Slows in Mainland China

    Foreign Bank Expansion Slows in Mainland China

    The opening of China’s financial sector has hit a speed bump, particularly amongst US banks, due to a changing business environment.

    In 2019, China decided to accelerate the opening of its financial sector with the introduction of various new measures, including the elimination of foreign ownership limits. At the time, mainland China’s financial market had an estimated value of $45 trillion and numerous global banks lauded the opportunity to compete onshore in the world’s second largest economy.

    The environment has changed in less than four years following the nation’s zero-Covid policy and a significant shift in US-China relations. Onshore expansion by global banks is expected to slow down for various reasons.

    US banks are headlining the retreat, primarily due to a dented outlook. Goldman Sachs, for example, reportedly revised projections for its five-year plan in China after the business environment drastically changed with a reduction of more than one-tenth of its workforce in the mainland after doubling its headcount to over 600.

    Morgan Stanley is opting against building an onshore brokerage unit, instead making a smaller investment of about $150 million in its futures and derivatives businesses. On Monday, the bank received regulatory approval to set up its futures unit in China.

    It will be a longer journey than we would wish to build up scale and reputation to do business gradually,» said JPMorgan China chief executive Mark Leung in an interview on the bank’s plans in the mainland

    Elsewhere, foreign bank expansion is being slowed down by structural changes outside of China.

    The combination of UBS and Credit Suisse is expected to create some challenges due to existing exposure in China by both Swiss lenders. Under the current regulations of the China Securities Regulatory Commission, a company cannot be a majority shareholder in more than one securities firm nor hold stakes in over two asset management firms.

    This would require the newly enlarged UBS to offload shares, creating further complications to an already complex integration.

    Nonetheless, not all banks are hit by worsened sentiments or structural hurdles with HSBC being one of the most notable optimists, as part of its broader plans to pivot its global business to Asia.

    The British lender currently owns 49 percent of its asset management joint venture, HSBC Jintrust Fund Management, and has reportedly reached an agreement earlier this month to purchase the remaining 51 percent.

    The bank is also rapidly growing its wealth business onshore with the rollout of various new product capabilities, such as an upgraded legacy planning offering in April. According to chief financial officer Georges Elhedery, HSBC is on track to hire around 2,000 private wealth managers in China’s insurance sector over the next two years, after adding 1,000 in 2022.

  • China bans shipments from U.S. memory chipmaker Micron Technology

    China bans shipments from U.S. memory chipmaker Micron Technology

    The U.S. has banned phones and networking equipment from Huawei and ZTE due to fears that these companies’ products have backdoors that send information to Beijing. This weekend, China went on the attack against U.S. memory chip maker Micron Technology by banning its chips from the country. According to the South China Morning Post (SCMP), Micron is considered a “national security risk” which is exactly what the U.S. calls Huawei and ZTE.
    The U.S. Commerce Department said it “firmly opposes restrictions that have no basis in fact.” Besides getting back at the U.S. for banning products made by Huawei and ZTE, the move against Micron is retaliation for U.S Export rules that were put into place in 2020 that prevent certain chips made using American technology from being shipped to China.
    The U.S. Commerce Department added that “We will engage directly with PRC (People’s Republic of China) authorities to detail our position and clarify their action. We also will engage with key allies and partners to ensure we are closely coordinated to address distortions of the memory chip market caused by China’s actions.”
    Micron Technology, located in the heart of potato country in Boise, Idaho, released its own statement early Monday morning which said that it was aware of the decision made by Beijing and was examining its next steps. It also said, “We look forward to continuing to engage in discussions with Chinese authorities.” Last year Micron generated 11% of its $30.8 billion in revenue from China selling DRAM, NAND flash memory, and solid-state drives.
    China’s Cyber Security Review Office under the Cyberspace Administration of China (CAC) had said back in March that it was investigating Micron and on Monday China said that Micron failed to pass a cybersecurity review. As a result, Micron’s chips cannot be used by telecom operators, banks, water utilities, and other companies. The CAC said that its review of Micron revealed “severe cybersecurity risks, posing significant security risks to China’s critical information infrastructure supply chain and to our national security.”
    We’re sure to hear more about this in the coming days.
  • Domino’s Pizza eyes 420 more stores in China after Hong Kong IPO

    Domino’s Pizza eyes 420 more stores in China after Hong Kong IPO

    Following its successful Hong Kong IPO in March, DPC Dash, the master franchise of Domino’s Pizza, is accelerating its expansion in China, debuting in three new cities on the same day last week.

    The company says it aims to open another 180 new stores this year and 240 next year.

    DPC Dash entered the cities of Qingdao, Changzhou, and Wenzhou last Saturday, taking the store count to 638 as of April 30.

    “The recent listing was a great achievement for DPC Dash as well as for our global franchisor, Domino’s Pizza,” said Frank Paul Krasovec, director and chairman at DPC Dash.

    “With the newly raised proceeds, we aim to expand across the greater China region aggressively and to bring our comprehensive product offerings to hundreds of millions of potential Chinese consumers.”

    According to DPC Dash, the business established its first location in Jinan in December, setting new records for both the best opening sales for the first week and the best opening sales month for the first 30 days for Domino’s worldwide. By turnover, the top four trading stores in Domino’s global network are new locations opened by DPC Dash in Jinan, Chengdu, and Wuhan during the past five months.

    DPC Dash has been operating Domino’s Pizza since December 2010, when it purchased Pizzavest China Ltd, Domino’s Pizza’s then-master franchisee in several Chinese provinces. DPC Dash renewed the master franchise agreement with Domino’s Pizza International Franchising Inc in June 2017 and expanded the franchise territory to include the entire China mainland, Hong Kong and Macau.

    The company says the new Domino’s Pizza stores emphasise online channels through delivery and carryout services, which the company believes it can replicate in other markets in China.

  • Chinese cafe chain Mellower Coffee exits Vietnam

    Chinese cafe chain Mellower Coffee exits Vietnam

    Café owner Liu Houjun gained a little online fame with his unique coffee brewing bravura. Formerly the director of a listed company, the coffee lover, in his 50s, decided to quit his job and open a coffee shop to develop innovative blends.

    “Different regions in the world all have their own ways of making a cup of coffee with local characteristics. I figured maybe we, as Chinese, could also invent our own unique coffee extraction method,” Liu said. And invent he did. After slowly adding water to the ground coffee powder, he puts the container into a pressure cooker filled with water and boils it extensively to complete the extraction.

    He explained that this process leaves the coffee with a smoother and lighter taste, much to the palate of many customers, contributing to the shop’s 70 percent returning customer rate. Apart from his special coffee-brewing technique, Liu has fashioned a range of innovative coffee products, like espresso made with the help of yogurt and rice wine.

    “I hope more of these Chinese-style coffee varieties can reap some worldwide recognition,” Liu said.

    According to YiMagazine, a financial media outlet in China, Shanghai currently has about 7,000 coffee shops, excluding coffee services in convenience stores and fast-food restaurants, ranking first nationwide—or even worldwide. The number of coffee hangouts per 10,000 people in Shanghai is 2.85, similar to that in London, the UK, New York, the U.S., and Tokyo, Japan.

    Major chains like Starbucks and Costa Coffee account for 35 percent of total coffeehouses in Shanghai, the report added. Luckin Coffee, one of China’s largest coffee chains established in 2017, quickly expanded by weaving some marketing magic combining expedient delivery service and discounts.

    “Many people believe it was Luckin that showed Chinese customers who had been less familiar with coffee the ropes, lifting the entire market to its next level,” said Zhang Mingzhu, General Manager of Mellower Coffee, a Chinese specialty coffee company.

    To attract more customers, many café proprietors are seeking state-of-the-art suggestions to give their place that little extra pizzazz. Coffee is mixed with more commonly spotted ingredients sitting next to a traditional Chinese meal, like soybean milk, tangerine peel, or even Moutai, a prominent brand of distilled Chinese liquor. Among the innovations, latte with sweet-scented osmanthus, the aromatic flower that is native to China and prized for its intoxicating, apricot-like scent, proved most popular, with more than 60,000 searches on Dianping.com, a Chinese restaurant review site, in 2021 alone. The search term “Chinese-style coffee” was entered over 280,000 times.

    According to another Dianping.com report released in December 2021, specialty coffee, often called quality coffee, is gaining popularity among customers in Shanghai. The term refers to coffee that has scored over 80 points on a 100-point scale by the Specialty Coffee Association of America.

    The group aged between 20 and 40 is the main consumers of this coffee type in Shanghai, with women accounting for 60 percent. Compared with 2019, the proportion of student consumers in the past year has increased by nearly 2.4 times. They usually opt for a boutique coffee shop to study, socialize, or take a break. People over the age of 50, too, have become more curious about and fond of specialty coffee. Compared with 2020, this group’s orders have increased by nearly 143 percent.

    “The quality of coffee beans is not the only customer focus; the ways of brewing and extraction, as well as the uniqueness and creative designs of coffee shops, all play a vital part,” said Zhang Xueqiang, Chairman of the Coffee Professional Committee of the Shanghai Food Industry Association, adding that Shanghai specialty coffee is entering a golden age of development.

    Shanghai-based entrepreneur Wu Yue told Beijing Review that in the past, he would invite potential business partners to a restaurant to talk shop; they might even go out for some drinks after. “But today, I usually take my prospective business partner to a coffee or tea shop, as it is healthier and more efficient. I’ll take a date there as well,” 28-year-old Wu said.

    Ample supply

    Many coffee shops in Shanghai flourish on an ample supply of coffee beans from Yunnan Province. One such example is Mellower Coffee, established in 2011 in Kunming, capital of Yunnan, and now headquartered in Shanghai, with chain stores in other parts of China, as well as in Singapore and the Republic of Korea. Yunnan is the largest coffee-growing province in China and, for years, the province’s yield has accounted for more than 98 percent of the country’s total. According to the Yunnan provincial department of agriculture and rural affairs, 131,000 tons of coffee beans were produced in the province in 2020.

    Pu’er City is one of Mellower Coffee’s main sources of coffee beans aside from other places in major coffee-producing regions like Ethiopia, Kenya, Colombia and Guatemala. The city’s coffee plantation area, output and value ranked No.1 in the nation in 2021. And it’s also a famous tea-growing area.

    Yunnan’s coffee history dates back to the 1950s, when scientists began researching planting there. The year 1988 was the starting point for Yunnan coffee to make its mark beyond China, when the local government launched a coffee assistance project, assisted by the United Nations Development Program and the World Bank. Swiss food and beverage giant Nestlé introduced new bean varieties and smart production technologies to Pu’er, and other places, transforming Yunnan into a global golden belt for its coffee cultivation.

    Coffee grows in semi-tropical climates with an average temperature of 20 to 27 degrees Celsius and abundant rainfall, making Pu’er the perfect candidate.

    However, Yunnan coffee was considered a relatively mediocre variety in the past as its quality fluctuated due to inexperienced production, unexpected bad weather occurrences and insect plagues, according to Hua Runmei, a coffee entrepreneur in Pu’er.

    A price drop further dampened the incentive to improve its quality. “With the development of the global coffee market, mechanization and large-scale production and processing in Brazil, Viet Nam and other countries, the price of traditional commercial coffee beans has gradually fallen, making it less profitable for farmers,” she said.

    Hua can recall her grandfather and parents growing coffee beans for a living ever since she was little. “Though they were cultivating it, farmers of their generations never actually tried the coffee, let alone study it and see how to improve the taste, which is vital in market competition,” Hua said. She added that the younger generation today can open up more possibilities for coffee plantation by transforming it, developing specialty varieties and adopting digital technology throughout the entire process, rendering product quality high and unwavering.

    Hua is currently preparing to launch her own brand, creating more coffee-related products and contributing her share to making quality Pu’er coffee known across the globe.

  • South Korean burger chain Mom’s Touch to expand into Mongolia

    South Korean burger chain Mom’s Touch to expand into Mongolia

    South Korean chicken burger chain Mom’s Touch&Co. said Tuesday it inked a master franchise agreement with Mongolia’s Foodville Farm LLC, in its first steps to enter the central Asian country.

    Foodville Farm is an independent company established by the local franchise operator Monbakery LLC to expand the Mom’s Touch brand in Mongolia. The company operates the South Korean coffee franchise Caffe Bene and bakery chain Tous les Jours in the Asian country.

    The South Korean chicken burger franchise said it has decided to enter Mongolia due to the country’s rapid economic growth, a relatively young population and a growing interest among Mongolians in Korean food, and products from K-pop and the broader Korean Wave.

    Experts said the Korean Wave generated by K-pop and TV dramas could turn fans in foreign countries into active consumers of South Korean products.

    Mom’s Touch’s first Mongolian restaurant is set to open in the first half of this year. The company plans to add more than five stores by the end of the year, it said.

  • Google suspends China’s Pinduoduo app on security concerns

    Google suspends China’s Pinduoduo app on security concerns

    Google has suspended the Play version of Chinese eCommerce app Pinduoduo after security issues were discovered in app versions outside Google’s app store. 

    Off-Play versions of the app that have been found to contain malware have been enforced on via Google Play Protect, and the Play version of the app has been suspended for security concerns.

    Meanwhile, Pinduoduo has also confirmed to Reuters that the app has been temporarily suspended as the current version is not compliant with Google’s Policy. No further details were shared, according to the report.

    The Pinduoduo app no longer appears in Google Play. Meanwhile, both shoppers and sellers versions of Pinduoduo App are still available to download on Apple’s iOS store. It was unclear if there are similar security concerns around the Pinduoduo app for Apple users.

    Founded in 2015 by PDD Holdings, Pingduoduo started as a fresh agriculture platform before expanding to a leading social commerce player serving approximately 900 million users, according to its website. As a company rooted in agriculture, Pinduoduo has worked with more than 16 million farmers and their communities to take part in and benefit from the fast-growing digital economy. True to its slogan “Together, More savings, More fun”, Pinduoduo strives to bring fun into consumers’ shopping journey.

  • Retail sales up 3.5% in first two months, thanks to government’s pro-growth measures

    Retail sales up 3.5% in first two months, thanks to government’s pro-growth measures

    China is gradually shrugging off the negative impact of the pandemic, as official data showed that retail sales in the first two months of 2023 expanded, following China’s optimization of its COVID-19 response.

    Chinese experts predicted that retail sales will continue to increase, given concrete government measures to boost consumption.

    Retail sales totaled 7.71 trillion yuan ($1.12 trillion) in January and February, a year-on-year increase of 3.5 percent, data from the National Bureau of Statistics (NBS) showed on Wednesday. Retail sales fell 1.8 percent in December.

    The catering industry experienced a rapid recovery, with annualized growth of 9.2 percent in the first two months, compared with a decrease of 14.1 percent in December.

    “The rebound of consumption was a major bright spot of China’s economic operations in the first two months of this year,” Fu Linghui, a spokesperson of the NBS, told a press conference in Beijing.

    The fast recovery came amid the rebuilding of consumers’ confidence, and on-site consumption has rebounded since China revamped its COVID-19 management in light of the evolving situation, Zhou Maohua, an economist at Everbright Bank, said told the Global Times on Wednesday.

    The retail, catering and travel sectors have seen a surge in demand, and the boost from China’s Spring Festival holidays also helped lift consumption, Zhou said.

    The NBS also released other statistics on Wednesday, such as the total value added of industrial enterprises above the designated size, fixed-asset investment and employment, which Fu said showed that “China’s overall economic performance is showing a trend toward stabilization and recovery.”

    China has set a GDP growth target of about 5 percent in 2023, with a CPI target of about 3 percent, according to this year’s Government Work Report, which was delivered at the first session of the 14th National People’s Congress.

    China will seek to expand domestic demand in 2023, prioritizing the recovery and expansion of consumption, according to the report.

    The key to economic growth is lifting domestic demand, as the external environment remains uncertain and volatile, Fu said. Support measures have been rolled out nationwide, such as consumption promotions and vouchers for vehicle purchases.

    Vehicles occupy an important position in China’s consumption, accounting for approximately 10 percent of retail sales, according to a report released by Fitch Bohua on Wednesday.

    Some carmakers have launched subsidies this month to improve sales, and Fitch Bohua believes that automobiles will remain the primary big-ticket spending item this year, with more preferential policies to come. Promoting consumption is high on the government’s agenda this year, as the annual Central Economic Work Conference held in mid-December noted that the country would prioritize the recovery and expansion of consumption.

    A State Council executive meeting held in late January also urged prompt measures to promote an early recovery of domestic consumption to revive the economy. Boosted by this positive outlook, local governments have been moving to unveil an array of pro-consumption measures designed to fuel the growth of specific spheres.

    Cities such as Beijing, Shanghai and Zhengzhou, Central China’s Henan Province, have announced detailed plans to offer consumption coupons, which will nurture sales of vehicles and home appliances, experts said.

  • Bill to ban TikTok in the U.S. takes its first steps toward the White House

    Bill to ban TikTok in the U.S. takes its first steps toward the White House

    on Tuesday Republicans on the U.S. House Foreign Affairs Committee took short-form video app TikTok closer to its final tick in the U.S. Concerned about reports that TikTok collects personal data from its U.S. subscribers, and might even collect keystrokes from those using TikTok’s  in-app browser, legislation that would result in the ban of TikTok on all U.S. mobile devices has advanced.
    The legislation would give President Joe Biden the authority to ban the popular app in the U.S. Committee Chairman Michael McCaul (R-Texas) said, “Everybody knows what TikTok is. It’s too dangerous to be on our phones as members of Congress.I think, it’s too dangerous to be on our children’s phones. That’s the whole point of this bill.” The U.S. in December banned TikTok from government-owned phones.
    McCaul’s DATA Act (H.R. 1153) advanced out of committee by a vote of 24 to 16. Voting on the proposed bill was split along party lines with the 24 votes in favor of moving the legislation along coming from all of the Republicans on the committee while the 16 dissenting votes came from all of the Democrats on the committee. McCaul said that he hoped the voting isn’t the start of a breakdown in bipartisanship when it comes to Chinese technology.
    In 2021, TikTok hit one billion monthly users, and last August, a survey revealed that 67% of teens in the states use TikTok and 16% use it constantly. Insider Intelligence says that TikTok owns 2.3% of the digital ad market behind heavyweights like Google, Facebook, Amazon, and Alibaba. The company is owned by Chinese firm Byte Dance, and while it denies any ties with Beijing’s spying operations, like other Chinese companies it must agree to comply with all requests from the country’s intelligence agency.
    In a statement, TikTok says, “A U.S. ban on TikTok is a ban on the export of American culture and values to the billion-plus people who use our service worldwide. We’re disappointed to see this rushed piece of legislation move forward, despite its considerable negative impact on the free speech rights of millions of Americans who use and love TikTok.”
    The bill has a long road ahead of it. If it gets voted out of the Republican-controlled House, it would still need to be voted on in the Democrat-controlled Senate which could be a problem. And should the bill pass the Senate, it would then require the president to sign the bill, or he could veto it. If Biden does the latter, the veto can be overturned with a two-thirds
    vote from members of the House and Senate.
    A few years ago, when Donald Trump was president, a deal was reportedly in place that would have seen Oracle and Walmart buy the app’s U.S. operations from TikTok owner ByteDance. But the deal never got done and Trump turned his attention toward more pressing matters such as the upcoming presidential election. But Needham analyst Laura Martin says that this time a deal could be finalized.
    While the platform could be weakened, “it wouldn’t just disappear and get shut down,” Martin said. She also said that “Implications are great for anybody that has been losing market share to TikTok.” Martin picked Snapchat, Facebook, and YouTube as platforms that would be big winners if TikTok gets banned in the U.S.
    Another analyst, JMP’s Andrew Boone, said that if TikTok is banned in the states, Facebook would be a big winner because of the money that parent company Meta has been throwing at Facebook’s TikTok rival Reels. Boone also noted that “If TikTok were to go away, I think that there would be a lot more consumption of Instagram Reels.” The analyst also says that Snapchat’s Spotlight and YouTube Shorts would both benefit from the disappearance of TikTok.
  • Tmall launches perfume advising services

    Tmall launches perfume advising services

    Alibaba’s online business-to-consumer retail platform Tmall has launched a perfume advising service, seeking to help consumers with perfume selection and use, the e-commerce giant said in a news release.

    Yves Saint Laurent, Valentino and Prada have piloted the service on their Tmall flagship stores, allowing its customers to chat with “certified perfume consultants,” receive advice on picking a daily scent or receive gifting tips.

    Close to 200 consumers tried out the service on its launch, including many male consumers buying perfumes for Valentine’s Day, the company said.per

    More brands plan to roll out the service in the coming months, said Alibaba

  • Nissan to start robotaxi tests in China’s Suzhou in March

    Nissan to start robotaxi tests in China’s Suzhou in March

    Nissan (China) Investment Co., Ltd. (NCIC) today announced the establishment of Nissan Mobility Service Co., Ltd., a dedicated mobility service company, as part of its efforts to continue transforming its business in China. The announcement was made at the 5th China International Import Export (CIIE) show which opened on Nov. 5th here.

    The new company, headquartered in Suzhou, will be committed to investing in mobility services and deploying robotaxi services. By working with the Suzhou High-Speed Rail New Town, it will support intelligent transport initiatives in the country.

    “Introducing future technology, mobility solutions and products that enrich the lives of customers in China are an important part of Nissan’s long-term strategy in China,” said Shohei Yamazaki, Nissan Motor Co., Ltd. senior vice president and NCIC chairman. “The new company represents another milestone of Nissan’s nearly 50 years of development in China and a new commitment to the market.”

    “Leveraging our mobility services experience and expertise from the Japan market, we are transforming our business in China by tapping into the future mobility service sector,” said Hideki Kimata, president of NCIC. “Through the new company, we are aiming to provide all-new riding experiences with easier, more convenient mobility services for more consumers in China.”

    Nissan has a strong foundation in electrification for mobility services, a cornerstone of the company’s long-term strategy in China. Nissan is among the first international OEMs to establish a dedicated robotaxi company in China.

    “Suzhou High-speed Railway/Xiangcheng District was chosen for Nissan Mobility Service due to its strong support for business development, availability of collaborative opportunities, and its proximity to our existing Alliance joint innovation hub in Shanghai,” said Kimata.

    Zhiyao Liang, a senior official from Xiangcheng District, Suzhou City said: ”As one of the first global automakers that entered the Chinese market, Nissan has witnessed and participated in the growth and development of China’s auto industry. It has continuously introduced advanced technologies and products to actively contribute to market development since 1973. As an industry-leading company in the field of electrification, autonomous driving, connectivity and shared mobility services with rich technological expertise and powerful corporate presence, Nissan once again showcases exciting new products that will shape new trends for the industry.”

    WeRide, a leading, global autonomous and mobility service company that develops Level 4 autonomous driving technologies and that has a successful mobility service history in Guangzhou, will provide technology support to the Suzhou project.

    Li Zhang, COO of WeRide said: “WeRide will extensively participate and fully support the R&D, test and operation of Nissan Mobility Service’s robotaxi fleet, particularly in autonomous driving technologies. WeRide always puts safety as our top priority, and will work with Nissan to provide safer, more efficient and comfortable autonomous driving mobility experiences to Suzhou residents and improve quality of life with innovative technologies.”

    The 5th CIIE will be convened from November 5 to 10 at the National Convention & Exhibition Center, Shanghai, with Nissan’s booth at Hall 2.1. Nissan will fully demonstrate its latest achievements and practices in sustainability and showcase its innovation aimed to deliver diversified mobility solutions for customers in China seeking sustainable transportation options.