Beijing faces some big challenges in 2019. Over the past few months, a catchphrase from the hit HBO drama Game of Thrones seems to have been on everyone’s lips in China: “winter is coming” to the Chinese market. The gloomy sentiment has solid reasons. More businesses are struggling to access credit and a sell-off in the stock markets has exacerbated many firms’ difficulties. Meanwhile, the trade war with the US is making life tough for exporters. How worried should we really be? In this issue, we dig deeper into the issues driving recent headlines, and in many cases arrive at some unexpected conclusions.
“Human beings cannot see with their eyes in absolute darkness, but they can see with their mind,” says Cai Shiyin, an entrepreneur who started the social enterprise Dialogue in the Dark in China.
Tattoo culture has exploded in China in the last few years, as the country’s younger generations abandon centuries-old prejudices against the practice and embrace it as an expression of individuality. Chinese millennials are getting tattoos in record numbers, but some are being forced to keep them hidden.
What a difference a year makes. Last summer, there was a sense of unstoppable momentum behind the Belt and Road Initiative (BRI), China’s trillion-dollar plan to build a network of infrastructure connecting Africa, Asia and Europe. When China hosted its 2017 Belt and Road Forum, 29 heads of state and delegations from another 100 countries traveled to Beijing, hoping to cash in on what President Xi Jinping described as the “project of the century.” This year the landscape, at least from the media’s perspective, looks dramatically different as even China’s closest partners make more cautious noises about the BRI.
Compared to other sectors, Chinese e-commerce firms are among the first batches of firms to embrace automation. China accounts for nearly half of global demand for AGVs, enabling one warehouse to process up to 100,000 orders a day with a staff of 20 human workers, work that previously would have required 300-600 people, according to Beijing-based startup Geek+, a leading domestic robot maker in logistics industry. Other tech giants, like Alibaba and JD.com, have also announced plans to invest billions of dollars to roll out next-generation technologies including totally unmanned warehouses and last-mile delivery robots and drones.
Online data theft is rife in China, affecting more than 80% of Internet users, and tech companies often display a cavalier attitude to using people’s personal information. But things may change. In May, the government implemented new data protection rules called the Personal Information Security Specification, which was hailed by some analysts as a watershed for data privacy, with a few even comparing it to the European Union’s game-changing General Data Protection Regulation law. While there are important differences between the two, Beijing’s new rules appear to reflect a wider shift in the way the Chinese government, companies and consumers perceive online privacy.
To many people in its home market China, Transsion Holdings is a company name they’ve never heard of. But this smartphone maker, based in Shenzhen, taking over 38% market share, is rising to dominate the smartphone market by with its Tecno Mobile, Itel and Infinix. Its success shows what differences can a small company make by truly catering to consumers’ long ignored needs, as said by local tech expert, “Transsion has succeeded because they addressed the problems of the market directly. They make phones with features that are attractive to Africans.”
You are invited to download the Fall 2018 issue of CKGSB Magazine. “The old world is dying; the new world struggles to be born,” Antonio Gramsci wrote. The Italian philosopher was discussing Europe during the early 20th century, but the phrase appears just as apt when considering East Asia nearly a hundred years later. This […]
For China’s technology sector, the decision of the United States to hit Shenzhen-based telecommunications giant ZTE with a trade ban in April was an abrupt and painful wake-up call. Until then, many in China had grown accustomed to thinking of their country as a global leader in technology. After all, China’s smartphones, high-speed railways and e-commerce platforms were the envy of the world. But in the days following the ban, designed to punish ZTE for violating US sanctions on Iran and North Korea, it became clear that one of China’s most successful companies was totally dependent on American suppliers.
China’s huge current account surplus was once the symbol of its status as the “factory of the world.” But in recent years, that surplus has been shrinking. Last year, it sank to 1.3% of GDP. The half-year deficit announced in August was the first in more than 20 years. Some economists predict China could soon be running a current account deficit. If that happens, it will be a watershed moment with implications for all manner of issues, from the policies Beijing is able to pursue to the status of the RMB as a global currency and maybe even the way the US finances its debt.