Here are this week’s news and highlights for China:
Tencent Video, iQiyi in Race to Lead China’s Online Video Market: Tencent Video and Baidu-backed iQiyi are pulling away as leaders in China’s red-hot video market with 457 million and 442 million mobile monthly active users in August respectively. Former market leader, Alibaba-backed Youku Tudou had 325 million mobile monthly active users.
Netizens Increasingly Willing to Pay for Video Content: Nearly 43% of online video users were paid subscribers to some form of video service by the end of this year — 7.4 percentage points higher than the proportion last year. Among paid users, nearly 60% were male, and 89% were younger than 40. A robust 70% said they plan to renew their subscription once it expires. 95% watch videos on their smartphones.
Great Call of China: How Foreign Video Bloggers are Becoming the Ones to Watch: Some 470 million Chinese internet users were following online video blogging celebrities – 20.6% more than last year, with a handful of fluent Mandarin speaking foreigners clocking up millions of viewers and fans.
Why Tencent Could Become an Advertising Powerhouse Like Facebook: Tencent will bring together its seven main business units to synchronize data and study a billion plus users to deliver precision and predictive ads for social advertising. Just 17% of Tencent’s revenue comes from advertising versus 97% at Facebook signalling plenty of scope for growth.
China’s Imported Consumer Goods Tariff Cuts: The Full Details: The full list of imported consumer goods impacted by this month’s tariff reductions – providing some interesting insights into how Beijing sees some categories. How does your product fare?
How To Profit From China’s Rising Nationalism: China’s rising nationalism and Beijing initiatives such as the Belt and Road are driving investment decisions for China, with categorizing countries into “hot”, “warm” and “cold” providing a good indicator of who to back with regards to their short-medium term China success.
Through Technology, China Works Towards Global Domination: China’s political system can set and implement long-term strategic goals and invests in developing world changing tech, whereas the US system has faith in the efficiency of market mechanisms. China also has significant capital to acquire technology. In 2016, Chinese entities invested an estimated $200-250 billion in new technology start-ups and established hi-tech companies – half of that amount was invested in the United States, many using different investment fundamentals than Western investors. China now has 202 of the world’s top-500 supercomputers versus 143 in the US.
Don’t be Fooled by China’s Grand Plan to Rule the World: The “China is taking over the world” meme is a perennial one. As usual, this argument overlooks what’s happening within China’s borders. That includes: a credit-driven growth model that has left debt growing faster than the economy, the continued dominance of inefficient state-owned enterprises (SOEs) at the expense of dynamic private firms, and a fiscal system that depends on a housing bubble to sustain it, not to mention the pollution crisis – all of which are very high on Beijing’s priority list to address.
From Lab to Farmland, Technology Revolutionizes Agriculture in China: The hi-tech agricultural industrial demonstration zone in Yangling, Shaanxi province covers an area of 135 square kilometres with more than 7,000 researchers who have developed more than 1,000 new crop varieties and agricultural technologies over the past 20 years. Other Chinese innovations include DJI’s drone which can more efficiently and environmentally spray pesticides and liquid chemical fertilizers, and a remote-controlled mower that can mow hillsides and forests at a rate of 0.3 hectares an hour – the equivalent of 10 workers.
Buying Infant Milk Powder is Still a Really Scary Thing in China: With the exception of 2015, around 40% of Chinese consumers considered food safety a “very big problem” between 2012 to 2016.
Counterfeit Whiskey Poisons 22 at Guangdong Bar: 22 drinkers of fake Flylions and Faliya whiskey experienced vomiting, visual impairment, and dizziness, with some falling into a coma, and four people requiring treatment in the intensive care unit. Four suspects — including the bar’s manager and the liquor supplier have been detained by police.
Peppa Pig Theme Park Coming to Beijing and Shanghai: Merlin Entertainment will open Peppa Pig World in both Shanghai and Beijing next year, hoping to capitalise on the importance and popularity of intellectual property like Disney has found. Peppa Pig is hugely popular with Chinese parents who use it as a way to teach their kids English, despite online controversy from parents about kids mimicking some questionable Peppa behaviour. The announcement follows a police sting last month of counterfeit ring in Yangzhou producing hundreds of thousands of fake Peppa toothpaste, toothbrushes and shampoo following a complaint from the British copyright owners.
China to Roll Back Regulations for Traditional Medicine Despite Safety Concerns: Even President Xi Jinping has called TCM a “gem” of the country’s scientific heritage and promised to give alternative therapies and Western drugs equal government support, driven by a draft regulation that states manufacturers can skip such costly and time-consuming trials as long as manufacturers prepare ingredients using essentially the same method as in classic Chinese formulations from early next year.
Why the Victoria’s Secret Shanghai Fashion Show Was a Big Deal for China: Attendees to Victoria Secret’s Shanghai show were reported to pay as much as ¥350,000 ($53,000) for the privilege of attending, with some of Greater China’s biggest names there. For those less fortunate, watching it on their smartphones, 43% were born in the 90s and 40% in the 80s – different to the US where millennials don’t hold as much interest in the brand.