Taobao said it would relax the half-year in operation “refund-only” policy that allows shoppers to get a refund without returning the product, citing as a reason “optimizing the business environment while ensuring consumer rights.” The policy, perceived as being preferential to customers over e-commerce platforms, was a lesson both Taobao and http://JD.comJD.com> learned from the policy’s inventor Pinduoduo. Taobao merchants with good operating records will henceforth have more autonomy to deal with shoppers’ refund requests, according to Alibaba. Tmall, the Alibaba-owned retail platform that boasts the most brand merchants, announced it is set to erase its annual seller service fee beginning on Sept. 1, a fee that comes to between RMB 30,000 ($4134.7) and RMB 60,000 a year. [TechNode reporting]

American video game company Blizzard announced on July 28 that the turn-based collectible card game Hearthstone will return to the Chinese market on Sept. 25. All Chinese server players, including new registrations, who log in will receive all the cards missed in 2023 for free, totaling 2,154 game cards. Last January, all Blizzard games on the Chinese server ceased operations due to failed agreement negotiations with Chinese game publisher NetEase. As a result, Hearthstone, which had been shortlisted for the esports event at the Hangzhou Asian Games 2023, was also removed in September 2023. In April of this year, NetEase and Blizzard announced their reunion by reaching a new game publishing agreement based on over 15 years of cooperation. [TechNode reporting; Hearthstone Weibo]

High-profile Chinese influencer Dong Yuhui has left East Buy, the e-commerce unit of private tutoring giant New Oriental, due to his “career aspirations, commitment to his other endeavors and personal arrangements,” according to a filing by the Hong Kong-listed company on Thursday. The move highlights the complexity that livestreaming companies face when dealing with their top influencers. The filing said East Buy agreed to sell Dong’s venture “Time with Yuhui” to the livestreamer for RMB 76.58 million ($10.56 million). “Time with Yuhui” was founded last December following the company’s firing of CEO Sun Dongxu, which came after Dong’s fans expressed their dissatisfaction with Sun’s management of the star. Michael Yu, the current CEO of East Buy, noted later in a public letter he would pay for the deal for Dong and that, “the company was given to Yuhui [for free].” [Jiemian, in Chinese]

Temu surpassed its 2023 total sales in the first half of this year to reach around $20 billion, according to a 36Kr report, underscoring the Pinduoduo sister app’s surging momentum as it pursues global expansion. Fast fashion retailer Shein, which is also largely rooted in China-based manufacturing, reported generating over $20 billion for the first time in 2022. The report mentioned Brazil was second in terms of downloads for the Temu app in the last 30 days, with more than 5 million downloads, just after the US. However, the eye-catching sales figure still lags behind Temu’s goal to triple its sales to $60 billion globally in 2024. [36Kr, in Chinese]

Douyin, TikTok’s Chinese sibling, has recently shifted its e-commerce strategy to re-prioritize GMV growth over price competitiveness in an attempt to return to the GMV growth rate of over 50% it enjoyed last year. The move has been triggered by its previous low-price approach hurting sales growth, according to a report in local media outlet LatePost. The report said the growth rate of Douyin’s in-app shopping was down to less than 30% per month in the second quarter despite a more than 60% growth rate in the first two months of 2024. To compete with rival Pinduoduo, since the beginning of the year Douyin has given more traffic to merchants who agree to set lower prices, according to LatePost, but that tactic “may gradually ease” as the short video app now turns its attention back to GMV, the report cited a source close to Douyin as saying. [LatePost, in Chinese]

Tesla will be seeking regulatory approvals in China, Europe, and other markets after the upcoming versions of its Full Self-Driving (FSD) software (v12.5 or v12.6) are released “pretty soon,” chief executive Elon Musk told investors during the company’s second-quarter earnings call on Tuesday. “I think we are likely to receive that before the end of the year, which could be helpful to drive demand in those regions,” Musk added, without revealing further details.

The comments come after a Reuters report in May saying that the US automaker hopes to allow Chinese owners to access the advanced driver assistance system at about $98 per month this year, preparing for the software registration process with China’s top industry regulator. Tesla’s FSD software will be going after a number of similar offerings from Chinese rivals such as Huawei, Xpeng Motors, and Li Auto, which have been trying to improve the availability of their technologies with sophisticated AI algorithms and affordable sensors, TechNode has reported. Tesla’s total revenue increased slightly 2% to $25.5 billion from a year earlier, while automotive sales and total profit dropped for a second straight quarter, as the company is facing more competition both at home and in China. [TechNode reporting]

The National Press and Publication Administration of China (NPPA) on Monday approved 105 domestic games for July, including titles such as Star Valley Project (direct translation) by miHoYo and a mobile version of Tale of Immortal by Lightning Games. Star Valley Project appears to be a simulation management game in development for several years, due for public beta testing in 2025, online sources suggest, though official details have not yet been released. Tale of Immortal is an open-world sandbox game immersed in Chinese mythology and cultivation, where players evolve into immortals and battle mythical beasts from the Classic of Mountains and Seas (a book of China’s mythical geography and beasts). Released in 2021, the PC version of Tale of Immortal sold 3.9 million copies, making it the second best-selling Steam game from Chinese developers that year. [NPPA, in Chinese]

To comply with US export control policies, NVIDIA is developing a modified version of its AI chip based on the new Blackwell GPU architecture for the Chinese market, with the model potentially named B20, according to an exclusive report from Reuters. In March, the US chip giant unveiled its Blackwell chip series, which is set for mass production later this year. The B200 chip in this series is 30 times faster than its predecessor at tasks such as providing answers from chatbots. NVIDIA will partner with Inspur, a major Chinese distributor, to launch and distribute the new chip B20, with shipments starting in the second quarter of 2025, sources said. Currently, NVIDIA has not yet made a public announcement, and its spokesperson declined to comment. [Reuters]

Volkswagen and Xpeng Motors on Monday announced moves that will expand their partnership to develop a highly modern electrical/electronic architecture not only for VW’s locally focused electric vehicle platform, the China Main Platform (CMP), but also for the global Modular Electric Drive Matrix (MEB) platform. All battery EVs of the Volkswagen brand in China will be equipped with the so-called China Electronic Architecture (CEA) from 2026, and a master agreement signed Monday “paves the way for potential expansion of collaboration on E/E architecture,” the companies said. This comes a year after Volkswagen revealed plans to launch two VW brand models featuring Xpeng’s autonomous driving technology in 2026 as part of a $700 million deal to buy a 4.99% stake in the Guangzhou-headquartered EV maker, TechNode reported. Xpeng’s revenues from services and others jumped 93.1% year-on-year to RMB 1 billion ($140 million) in the first three months of this year, which the company said was buoyed by its collaboration with the German giant. [Xpeng announcement, TechNode reporting]

Meituan is reportedly set to officially launch in Riyadh in September or October, according to Chinese media outlet NBD, as the food delivery giant looks to replicate its growth in Hong Kong and mainland China in Saudi Arabia. Meituan is in the process of persuading international restaurant operators, local Chinese restaurants, and local cuisine-focused restaurants to join the takeaway service ahead of its launch, the report noted, with the company already sending dozens of staff to the Middle East to support its expansion. Tony Qiu, Meituan’s international business leader, has since earlier this year reported directly to CEO Wang Xing, who took over the running of company’s overseas operations at the beginning of 2024. [NBD, in Chinese]

On July 19, Xiaomi CEO Lei Jun unveiled the company’s first small foldable phone, the MIX Flip, at a product launch event in Beijing. At the same time, he also introduced a portable camera kit that pairs with the flip phone to enable instant photo prints. The portable camera kit includes the Mijia pocket photo printer 1S, an interconnectable leather bag with a strap, and a pack of ZINK photo papers (five sheets). When combined with the portable camera kit, the MIX Flip transforms into a retro Polaroid-style camera, allowing users to quickly print captured images as physical photos using the phone’s Snap mode. Before printing, users are able to enhance their photos by applying filters and making edits, the company said. The phone is priced at RMB 5,999 ($825), while the instant photo kit costs RMB 499 ($69). [TechNode reporting; Xiaomi Weibo]

Uniqlo’s chief executive officer in Greater China said the Japanese clothing brand’s “relative competitiveness is growing” in mainland China due to Chinese consumers’ mindset shifting to finding affordable alternatives to branded products after COVID-19. He saw Uniqlo’s potential to become the preferred brand in China. Pan Ning, the Uniqlo executive in Greater China, briefed the above at a time when Fast Retailing, the Japanese owner of Uniqlo, reported declining revenue and sharply falling profit in the region for the three months that ended in May. The company attributed the financial changes to stronger sales performance in the previous year and a slowdown in consumer appetite, especially in mainland China. According to Pan, the Japanese brand is planning to adjust its store opening strategy to be more quality-centered in the future and deepen the integration of physical stores and e-commerce. [Uniqlo; NBD, in Chinese]

Chinese tech giant Huawei has filed a lawsuit in a local Chinese court accusing Taiwan-based chip firm MediaTek of patent infringement, seemingly after negotiations around patent fees broke down. In response, MediaTek stated on July 19 that the lawsuit has no significant impact on the company and they will not comment further about the details. “Differences over patent fees with Huawei began two or three years ago, but MediaTek considered the price was too high,” people familiar with the matter told local media outlet YiCai. According to the outlet’s sources, Huawei is suing MediaTek for patents related to cellular technologies, including 5G, 4G, and 3G, which indicates that Huawei is exploring the possibility of charging both smart device manufacturers and chipmakers for patent licenses in these fields. [YiCai, in Chinese]

Volkswagen on Wednesday launched its first coupe-styled sports utility vehicle, the ID.UNYX, boasting high-tech features such as more diversified choices for infotainment content and a “worry-free” autonomous parking function at a price range between RMB 209,900 and RMB 249,900 ($28,918-$34,429). The actual selling price for early buyers will be reduced to RMB 199,900, as the carmaker knocks the standard RMB 5,000 deposit off of the final price in addition to discounts totaling RMB 10,000 on the original ticket price of the car. The latest member of VW’s electric vehicle ID. series has a driving range of 621 kilometers (386 miles) between charges; Tesla’s rear-wheel-drive Model Y, its main competitor in China priced from RMB 249,900, travels 554 km on a single charge. Volkswagen Anhui, the third joint venture by the German automaker with a Chinese partner, is set to enter 20 cities in the country this year and will expand its sales network to 70 cities by the end of 2025, according to a recent announcement. VW operated two joint subsidiaries with SAIC and FAW for years in China before partnering with Anhui-headquartered JAC Motors in 2017. [VW announcement, in Chinese]

More than 500 million active users play games in China’s super app WeChat on a monthly basis, the company has said, an eye-catching figure that demonstrates the channel’s potential as a driver of advertising revenue for parent firm Tencent. According to WeChat, half of these users live in third-tier cities and the majority are female. Mini-program games, which can be quickly launched within WeChat, now account for 15% of the messaging app’s total advertising revenue, the company revealed on Tuesday. WeChat also noted that more than 80% of mini-game developers are small-scale teams of below 30 staff. At least 240 in-app games have generated over RMB 10 million ($1.38 million) in quarterly revenue in the past 12 months, according to WeChat’s figures. [Caixin, in Chinese]

Huawei’s revenue from its car business unit more than doubled to almost RMB 10 billion ($1.38 billion) in the first half of 2024 from last year’s total of RMB 4.7 billion, thanks to strong demand for partners’ electric vehicles. The growth was mainly attributed to a surge in deliveries of Aito-branded EVs, co-developed with its manufacturing partner Seres, 36Kr reported on Wednesday, citing people familiar with the matter. Little-known automaker Seres reported sales of new energy vehicles, which refers to all-electrics and plug-in hybrids, of roughly 194,200 units in the first six month of this year, compared with 151,798 units for all of 2023. Aito on June 26 announced that it received more than 100,000 non-refundable RMB 5000 ($688) deposits for the M9, a $65,725 luxury sports utility vehicle launched in December. The joint brand achieved the same milestone for its M7 crossover last November, two months after the launch, TechNode has reported. [36Kr, in Chinese]

“9.11 and 9.9, which one is bigger?” Questions as simple as this confuse large language models including OpenAI’s GPT-4o, Moonshot-created Kimi, and ByteDance’s Doubao, according to a post by local media Yicai. Chatbots from China’s Baidu and Tencent generate the correct answer despite using different methods, the former comparing fractional parts after concluding the integer parts are the same and the latter, Tencent’s Hunyuan, concluding that 9.9 is the bigger number by computing that 9.11 minus 9.9 is negative. ChatGPT and Kimi, which both gave a wrong answer to the first prompt, were correct after users clarified: “in terms of numerical value.” AI-powered chatbots are fed by internet data and trained to chat with humans in a natural way so that they can perform text-based knowledge-based tasks. [Yicai, in Chinese]

China’s long-form video platform iQiyi again faced a user backlash over removing the ad skip option from basic membership, as recent discussion prompted iQiyi to respond that basic membership is for users who find ad watching acceptable as the price for access to members-only content at low cost. The Baidu-backed platform said on its official Weibo account, “Consumers can see the difference in price and service between basic and gold memberships on the subscription page before choosing on-demand and purchasing.” In the first quarter, iQiyi saw subscriber service revenue down 13% to RMB 4.8 billion from last year, attributed by the company to “the high base effect in the same period last year.” [iQiyi, in Chinese]

Oppo’s OnePlus brand on Tuesday released the OnePlus Pad 2 alongside other new electronics at a launch event in Milan, Italy. Its new stylus, the Stylo 2, comes replete with faux leather grip, sophisticated pressure sensitivity, swipe control, and a vibrating tip offering a pen-on-paper feel. The company says its new tablet boasts a larger 12.1-inch screen powered by Snapdragon 8 Gen 3, offering enhanced performance over its predecessor. Its screen resolution has been boosted to 3,000 x 2,120 pixels with increased brightness and support for Dolby Vision HDR, while it retains the original’s 7:5 screen ratio and adaptive refresh rate for better battery life. An optional Smart Keyboard adds the NFC (Near Field Communication) function for file sharing with OnePlus phones. Available from July 30, the OnePlus Pad 2 starts at $549.99 for the 12GB RAM + 256GB storage model, the Stylo 2 costs $99.99 and the Smart Keyboard costs $149.99. [TechNode reporting]

Chinese online retailer JD is launching a monthly promotional campaign that it claims will see branded products worth over RMB 1,000 sell for just RMB 18 ($2.48). The company announced the move on Wednesday, framing it as a way of thanking the e-commerce platform’s customer base. Held on the 18th of every month, the one-day campaign will include high-end items such as alcohol products from Moutai, TCL TVs, and perfume from Bulgari, according to JD. The campaign is JD’s latest move to lure shoppers by slashing prices, though the RMB 18 offers come with a number of conditions, including a tight time window. “The activity organizer has the right to adjust or stop the form of the project based on users’ participation,” the terms and conditions also state. [JD, in Chinese]

A tech blogger, hongxing2020, recently revealed on platform X that NVIDIA is preparing the next-generation RTX 5090D graphics card for the Chinese market, which is expected to be released in the first quarter of 2025. Last December, the California-based chip giant introduced a special edition GeForce RTX 4090D graphics card for the Chinese market to comply with U.S. export regulations. The RTX 4090D offers 11% fewer cores and 10% lower overall performance compared to the original version 4090, as the company must comply with U.S. export control requirements, which mandate that GPUs exported to China have a total processing power below 4,800 points. Based on NVIDIA’s Blackwell architecture, the next-generation RTX 5090 graphics card will bring performance improvements, but the modified edition RTX 5090D for the Chinese market is expected to have reduced performance with minimal gains over the RTX 4090D. [Icsmart, in Chinese]

Apple is reported to have secured the first batch of production capacity for TSMC’s advanced 2nm process technology, which is expected to enter trial production this week, according to Taiwanese media outlet Commercial Times. The equipment for 2nm process chips was installed in TSMC’s new Hsinchu Baoshan fab in the second quarter, with the chips set to feature in the iPhone 17 series in 2025. Sources indicate that TSMC’s 2nm process may offer a 10-15% performance boost over 3nm and reduce power consumption by up to 30%. Additionally, Apple plans to adopt SoIC (System on Integrated Chips) packaging for its M5 chip in 2025, which will involve stacking multiple chips with different functions to form a compact three-dimensional structure. [IThome, in Chinese]

Taiwan-based chipmaker MediaTek is developing server processors using Arm’s CPU (central processing unit) and GPU (graphics processing unit), with plans for production with TSMC’s 3nm process. The company aims to start mass production of the new server chip in the second half of 2025, targeting orders from cloud service providers (CSP). The rapidly emerging AI server market demands high-performance chips from companies such as Nvidia and AMD for high-end models, but their excessive power consumption is driving new demand for low-power processors in areas without significant AI requirements, industry analysis has revealed. This shift has led to increased demand in the mid-to-low-end AI server market, where low-power Arm-based processors are now the focus for major cloud service providers. MediaTek will target CSP giants such as Microsoft, Google, and Meta, positioning its server business as a key priority in its operational strategy. [Economic Daily News, in Chinese]

General Motors’ joint venture with China’s SAIC on Tuesday introduced an Autopilot-style advanced driver assistance system (ADAS), which the company said would enable its Century model, a luxury multi-purpose vehicle, to handle highways. The Navigation on Pilot (NOP) software enables autopilot overtaking, lane switching, and on-ramp/off-ramp driving, making it the “first joint manufacturer” among peers to launch such technology through over-the-air updates in China, according to an announcement.

Developed locally by its Pan-Asia Automotive Technology Center in Shanghai, the Level 2 system still requires the driver to be in full control and relies on a high-definition map. Peer SAIC-Volkswagen in March launched its 2024 Tiguan L with ADAS sourced from Chinese drone maker DJI and featuring more safety-based functions such as collision avoidance. Chinese rivals such as Xpeng Motors and Li Auto are making ADAS technologies for more complex urban environments and without the dependence on precise geolocation information. SAIC-GM reported sales of around 225,600 cars for the first half of the year, an almost 50% plunge from a year earlier. [TechNode reporting, GM announcement, in Chinese]

TikTok is exploring the local life services sector in Southeast Asia as it tries to replicate sister app Douyin’s path in China. According to a recent job posting on the company’s official careers website, its venture into services aims to “make the daily life experience richer, more unique and more innovative.” Chinese media outlet 36Kr quoted a TikTok service provider in Indonesia as saying that some of the short video app’s users are already exposed to discounted meal deals in their TikTok feed as part of an initial beta test in Indonesia and Thailand. In China, Douyin offers group-purchase dining vouchers that users can buy at a discounted price before heading to offline outlets to use them. The Chinese service has now expanded to include a wide spread of vendors covering everything from sightseeing tickets to leisure activities. [36Kr, in Chinese]

Ant Group’s insurance arm said on Monday its partner insurers reported $1.93 billion in claims via its platform in the first half of this year, a 30% year-on-year increase, as users increasingly choose the online insurance brokerage platform thanks to its convenience. With more than 1 billion users on the platform, Alipay’s in-app tool has expanded from e-commerce-related shopping rebates when launched in 2013 to providing a range of insurance offerings including health and travel coverage. It has partnered with 90 insurance companies in China to offer more than 1,000 products, Ant Insurance said in a press release. The Alibaba-affiliated fintech company is also using ChatGPT-like tech to power its insurance services, with AI assisting users in choosing insurance products and streamlining the claims process. “No personal privacy-related data is involved when fine-tuning the insurance-centered model, as the model only needs to understand general patterns in claims processing,” according to Fang Yong, head of claims technology at Ant Insurance. [TechNode reporting]

Xiaohongshu, a Chinese social platform that is increasingly seen as a real-time search engine favored by younger generations, has received financial injections from venture capital firm DST Global in a recent sale of existing shares to current and new investors. The Financial Times first reported the news on Thursday, saying the deal valued Xiaohongshu at $17 billion. Investors that already held stakes in the company, including Hongshan (previously Sequoia China), Hillhouse, Boyu, and Citic Capital, also participated in the new round of funding. Boosted by rising e-commerce and advertising business, the lifestyle platform reportedly earned $3.7 billion in revenue and $500 million in net profit last year, the first time it was profitable since it was founded in 2013. [Financial Times]

E-commerce growth has slowed for China’s two major short video platforms, Douyin and Kuaishou, since the beginning of this year, local tech media LatePost reported on Wednesday. Nevertheless, the two content platforms have still enjoyed double-digit GMV increases of around 20% in recent months, according to the report, which quoted a source close to Kuaishou as pointing to the lack of significant expansion in its overall user base as the main reason that sales growth has dragged. Kuaishou is aware that too many advertisements could discourage short video viewers from placing retail orders in the app, said the report, with the company’s commercialization head Wang Jianwei also taking over the e-commerce business last November in an attempt to find the right mix of engagement and advertising. [LatePost, in Chinese]

Baidu’s shares surged 10.1% to HK$ 95.05 ($12.17) on Wednesday in Hong Kong, its highest price in the past month, after a mainland Chinese taxi fleet operator publicly complained about the company’s autonomous ride-hailing cars becoming a threat to its human taxi drivers. Four taxi drivers at Wuhan Jianshe Automobile Passenger Transport Co., Ltd. have suspended services since April and more are facing a significant reduction in salary, the company said in a letter sent to local authorities on June 20 and circulated on Chinese social networks this week.

The taxi firm blamed a sprawling expansion of Baidu’s autonomous cars, while multiple taxi drivers told media outlet CLS that it had become difficult to get fares in areas of the city where the internet giant had deployed large numbers of its robotaxis. Baidu said in May that its robotaxi service, known as Apollo Go (or Luobo Kuaipao in Chinese) and launched in 2021, had provided 6 million rides as of April 19, while it was aiming for the business to turn a profit by 2025, TechNode reported. Tesla chief executive Elon Musk has previously announced that the company will unveil its robotaxi design on August 8, as competition in the sector heats up. [TechNode reporting, CLS, in Chinese]

TSMC, listed in both Taiwan and New York, saw its market value surpass the $1 trillion mark on Monday, becoming the seventh-largest tech company globally by market capitalization, local media outlet Jiwei reported. Ranked by market valuation, the top ten most valuable companies include Apple, Microsoft, Nvidia, Alphabet, Amazon, Saudi Aramco, Meta, TSMC, Tesla, and Berkshire Hathaway. Over the past 15 to 18 months, the semiconductor industry has led the stock market due to soaring global chip demand driven by the rise of AI, the report said. Semiconductors have attracted significant investment and government subsidies, notably the US government’s CHIPS Act, which offers companies billions of dollars to establish domestic chip factories. [Jiwei, in Chinese]

The US-listed Chinese electric vehicle trio has made some progress in their push to replace the chips for advanced driving functions inside their cars with home-grown components, following Tesla’s suit in hopes of deriving better computing performance to train their artificial intelligence models. NIO has carried out the tapeout phase for the Shenji NX9031, its first self-developed system on chip (SoC) for assisted driving and conditional autonomous functions, and will integrate the five-nanometer chip into its ET9 executive sedan as planned, scheduled for delivery in early 2025, according to a Monday report by Chinese media outlet 36Kr. The report cited sources as saying the tapeout for Xpeng Motors’ in-house replacement for Nvidia’s DRIVE Orin chips has also started, marking the end of the design process and the beginning of manufacturing. The report added that there is a bit of catching up for Li Auto, which aims for the completion of the tapeout for its in-house advanced driving chip, codenamed Schumacher, by the end of this year. In August 2018, Tesla chief executive Elon Musk revealed the company’s plan to swap Nvidia’s AI system with its Hardware 3.0 chips. [TechNode reporting, 36Kr, in Chinese]

Chinese electric vehicle maker Zeekr is looking to enter South Korea by 2026, with plans to open showrooms in Seoul and the nearby province of Gyeonggi by next year, parent company Geely said last week in response to questions from Bloomberg. Under the current plan, the mainstream luxury carmaker will bring the Zeekr 001, its first model featuring advanced driving functions including autonomous parking, to woo local tech-savvy customers. The news comes as peer BYD recently started regulatory preparations in South Korea aiming to launch its first EV locally in the second half of 2024. Zhejiang-headquartered Zeekr, with four models on offer, will launch two new models in China later this year, including a five-seater van, the Mix, as well as a medium-to-large sports utility vehicle, codenamed CX1e, targeting Chinese families. Zeekr chief executive Andy An told investors last month that the New York-listed company would expand its footprint from 25 to more than 50 global markets by the end of the year. [Bloomberg, TechNode reporting]

Bloomberg on Monday claimed to have obtained an internal memo indicating that Microsoft will soon require its Chinese employees to use only Apple devices for identity verification when using work computers or phones. Employees will be restricted to using iPhones in offices starting this September, the report said. As part of Microsoft’s global Secure Future Initiative, this measure aims to ensure that all employees use Microsoft Authenticator, Identity Pass, and other similar applications for identity verification, which will affect hundreds of employees in mainland China. Microsoft made this decision because Android phones in China cannot access Google services such as the Play Store. Employees who previously used Android phones (including Huawei, Xiaomi, and other brands) will receive an iPhone 15 from the company. [Bloomberg]

BYD has reached a deal with the Turkish government to build a $1 billion electric vehicle plant in the country, part of the European Union’s Customs Union, a move that would allow the Chinese EV giant to export vehicles to the bloc without additional tariffs. Scheduled for operation by 2026, with roughly 5,000 new jobs created, the plant will be capable of making 150,000 vehicles a year, the government said on Monday, reported the Financial Times. The move comes after the EU, on July 4, began imposing temporary duties of 27.4% on China-made BYD cars, while that percentage ranged between 29.9% and 47.6% for other Chinese car manufacturers, slightly lower than what Brussels initially proposed. The company is also establishing a Ft 10 billion ($30 million) battery pack plant near Budapest in Hungary that will begin production next year. [Financial Times]

Electric vehicle maker Polestar’s China division is reportedly set to undergo its first major layoff with plans to reduce its workforce by about 30% by the end of September. The move is expected to have a significant impact on its local car manufacturing activities. The brand, owned by Chinese automaker Geely, has already suspended production at a facility in the country’s southwestern city of Chengdu while it also looks to downsize office space at its regional headquarters in Shanghai, local media outlet FEAutoCar reported on July 2, citing sources at the firm. The news comes just months after the Swedish company announced it was looking to reduce about 15% of its workforce globally in January. The company sold fewer than 1,000 cars during the first four months of this year in China, the world’s biggest auto market. [FEAutoCar, in Chinese]

The US chip manufacturer Nvidia will ship over one million new H20 accelerator chips to the Chinese market this year, generating over $12 billion in revenue for the company, according to the latest forecast data from market research firm SemiAnalysis. Due to US export control policies, the export of Nvidia’s advanced AI chips to China has been restricted since 2022. The H20 is a cut-down version GPU that Nvidia specifically launched for the Chinese market based on the H100, but its AI performance is less than 15% of that of the high performance chip. Nevertheless, analysts at SemiAnalysis stated that the H20 chip is now being shipped in volume and is growing in popularity with Chinese customers despite its reduced performance compared with its US counterpart the H100. [Icsmart, in Chinese]

There is a clear need to build AI technology that can be “reviewed, monitored, and traced”, according to the Shanghai Declaration on Global AI Governance, which was released at the country’s largest annual AI event, the World Artificial Intelligence Conference, which ended at the weekend. Released by Chen Jining, party secretary of Shanghai, the declaration came after local tech titans and startups spent July 4-7 showcasing their latest developments and updates on large language models in the city. The declaration called for “companies to comply with the laws and regulations of the countries in which they provide their AI products and services,” while encouraging international communication and cooperation in the field through the “spirit of openness and sharing.” [People’s Daily]

On July 6, the President of VeriSilicon, Dai Weimin, delivered a speech and presentation titled “Opportunities and Challenges of AIGC Chips” at the RISC-V and Generative AI Forum during the World Artificial Intelligence Conference 2024, held at the Shanghai World Expo Center. Based on current generative AI technology, achieving intelligence on par with or surpassing the human brain requires continuously expanding the scale of model parameters, a trend that necessitates an exponential increase in computational power, according to his speech. “Currently, numerous enterprises worldwide are developing their own AI large-scale models, with over 100 models in the Chinese market alone. The ‘AI-model war’ in the market seems like a chaotic competition and a waste of electricity. By 2028, China will have fewer than ten foundational large-scale models, ideally just five,” he claimed at the forum. [Icsmart, in Chinese]

BYD said on Thursday it has produced its eight millionth electric vehicle, just three months after producing its seven millionth unit globally at its Jinan factory in eastern China in March and three years after reaching its first millionth unit mark in mid-2021. The latest milestone was achieved at BYD’s newly opened factory in Rayong, Thailand, which is capable of producing 150,000 vehicles annually, and happened to be a blue BYD Dolphin hatchback, the most popular EV model in the country. The Chinese EV giant has found initial success in Southeast Asia’s second-largest economy with sales of 12,942 units between January and May, capturing roughly 40% of the country’s booming EV segment, according to figures compiled by Autolife Thailand. Smaller Chinese rival Hozon in December began trial production on the outskirts of Bangkok with an output of up to 20,000 units annually, while China’s biggest car manufacturer SAIC has been making gas-powered MG cars in the country with Thai conglomerate CP Group since 2014. [TechNode reporting, BYD announcement, in Chinese]

China’s cross-border e-commerce platforms, including Temu, Shein, and AliExpress, might face tariff hurdles in the EU, according to the Financial Times, which details that the European Commission is set to propose abolishing the current threshold for duty-free purchases of goods under €150 later this month. The EU’s attempt to close this tax loophole comes as low-value Chinese-manufactured products flood the region, and fast fashion retailer Shein has confidentially filed for a London IPO. The report mentions that 2.3 billion parcels that missed the tax threshold entered the EU, citing official data. [Financial Times]

China’s eastern Jiangsu province is looking to buy an undisclosed number of Tesla Model Y electric vehicles in the 2024-2025 budget year, marking the first time in years that the company’s cars would be purchased officially by the authorities. The US giant’s cars have been widely barred from government-affiliated venues in its second-largest market over security concerns. The Shanghai-made Model Y rear-wheel drive, priced at RMB 249,900 ($34,368), was listed in a sourcing plan released by the Jiangsu Provincial Government Procurement Center on June 6, along with the Aito M7 and the Avatr 11, both featuring Huawei’s assisted driving technology. Several models from state-owned manufacturer SAIC and Volvo parent Geely are also on the list, including the IM L6 and the Galaxy E8. Some Chinese government office workers have been disallowed from parking their Tesla vehicles inside government compounds, especially those close to military bases, due to security concerns over cameras installed on the vehicles since 2021, Reuters reported. The news comes after Tesla’s locally-built cars were tested and found to be compliant with China’s data security requirements, announced by the China Association of Automobile Manufacturers (CAAM) on April 28, the same day chief executive Elon Musk arrived in Beijing for a visit. [TechNode reporting, Reuters, Jiangsu gov announcement, in Chinese]

The second generation of Optimus, Tesla’s humanoid robot, made its debut this week at the 2024 World Artificial Intelligence Conference, the US electric vehicle maker said on Weibo. Its unveiling was touted as “witnessing the further evolution of humanoid robots,” according to the Weibo post. Optimus was first released in August 2021, equipped with Tesla’s self-developed neural network and computer vision technology, and was designed to undertake dangerous or tedious tasks such as carrying heavy objects or grocery shopping. Last December, Tesla released a demo of the second-gen robot, which can perform delicate tasks such as picking up an egg and boiling it, demonstrating impressive dexterity. In April, Tesla CEO Elon Musk said the company plans to start using the Optimus in Tesla factories in 2025. [Tesla Weibo, in Chinese]

Chinese phone brand Xiaomi and Taiwan-based semiconductor company MediaTek launched their first joint laboratory on Tuesday, focusing on three major technologies: phone performance, telecommunications, and AI. The deal was announced by Redmi, a Xiaomi sub-brand, on China’s X-like platform Weibo. The joint lab’s first product will be the Redmi K70 Premium Edition, a budget-friendly mid-ranger that aims to achieve maximum optimization in performance benchmarks, game frame rates, and concurrent time for game frame boosting. Redmi’s general manager Wang Teng revealed that the joint lab has equipped the Redmi K70 Premium Edition with a next-gen dedicated gaming GPU and their self-developed dual-chip scheduling technology, in addition to the core chipset Dimensity 9300+. [Redmi Weibo, in Chinese]

Alibaba’s Taobao is sending more traffic to the “instant commerce” service of its food delivery arm Ele.me, via a prominent portal at the top of the e-commerce platform’s homepage, as Alibaba pushes faster delivery to align with its “user-first” strategy. The move comes after Alibaba denied multiple news reports that it intends to sell Ele.me. The “instant commerce” service, which previously mostly covered nearby supermarkets and could be found within Ele.me’s mini-program or app is in the process of luring more Taobao merchants to join. According to Alibaba, all Taobao and Tmall sellers who have local warehouses that can meet users’ needs for instant delivery can sign up to join the service. [TechNode reporting]

Correction: An earlier version of the article misidentified “instant commerce” service as one-hour delivery.

China’s Foreign Ministry spokesperson Mao Ning announced on Tuesday that Premier Li Qiang will deliver a keynote speech at the opening ceremony of the World Artificial Intelligence Conference (WAIC) 2024 in Shanghai tomorrow. The AI-themed event will take place from July 4 to July 7 at the Shanghai World Expo Center and Expo Exhibition Hall. The exhibition area of WAIC 2024 exceeds 52,000 square meters, and over 500 companies, including Tesla, Microsoft, and Schneider, have confirmed their participation, according to the organizers. Scientists, entrepreneurs, investors, and stakeholders will gather in Shanghai to discuss cutting-edge technologies, industry trends, and ethical governance in the field of artificial intelligence. Baidu’s Ernie Bot, iFlytek’s Spark, Alibaba’s Tongyi Qianwen, Zhipu AI, Tencent’s Yuanbao, Huawei’s Pangu, and SenseTime’s SenseNova will all demonstrate their AI product capabilities during the three-day event. [China Star Market, in Chinese]

Renault’s electric vehicle arm Ampere on Monday announced it will integrate lower-cost lithium iron batteries into several models under the Renault and Alpine brands over the next years in partnerships with Chinese battery maker CATL and South Korea’s LG Energy Solution. This means that the French automaker will add lithium iron phosphate (LFP) cell chemistry for EV batteries to its portfolio, alongside more energy-dense yet expensive nickel cobalt manganese (NCM), hoping to meet the demand for lower-priced EVs. The goal is to reduce by 2026 roughly 20% of vehicle battery costs. Chinese EV battery duopoly, CATL and BYD, dominate the world’s battery market with cheap cells using LFP as the cathode material, with a combined market share of 53.1% from January to April 2024, according to data from Korean renewable energy consultancy SNE Research. CATL recorded shipment of 27.7 gigawatt-hours (GWh) worth of battery during the period in global markets excluding China, up 16.2% from a year earlier and ahead of LG Energy Solution in second place. [TechNode reporting, Renault announcement]

The China Academy of Information and Communications Technology (CAICT) has issued a certificate for the completion of the independent maturity level-A certification to Huawei’s HarmonyOS kernel, as the operating system achieved a 100% self-developed ratio, the national research institution announced on Monday. An independent operating system kernel can ensure national information security and increase international competitiveness, which fosters a robust ecosystem of independent research and development in China, CAICT said in the statement. Huawei’s HarmonyOS kernel – developed in the wake of US sanctions against the Chinese tech giant – marks a new milestone for both the company and the country, CAICT added. HarmonyOS NEXT, which will be launched in the fourth quarter of 2024, represents an entire break from the Linux kernel and Android Open Source Project (AOSP) codebase. [CAICT, in Chinese]

Google plans to release the tenth generation of its Pixel series smartphones next year, featuring the Tensor G5 processor manufactured using TSMC’s 3nm process technology. Latest reports indicate that the Tensor G5 processor development is progressing smoothly and is nearing the tape-out stage. The Tensor G5 is Google’s first fully self-developed mobile processor, whereas the previous four generations of Tensor processors were modified versions of Samsung Exynos. The latest Tensor G5, manufactured using TSMC’s advanced 3nm process, is expected to significantly boost performance, the report said. Additionally, the Tensor G5 processor promises to enable Google to achieve comprehensive control from the processor to the operating system, applications, and devices, further enhancing the software-hardware synergy of the Pixel series smartphones. [Icsmart, in Chinese]

Tesla said on Monday that it will be offering Chinese buyers 0% financing on Model 3 and Model Y by the end of this month, an incentive the US automaker had offered in the world’s largest electric vehicle market in April. This time, buyers would not have to trade in their old Tesla vehicles for a new one to benefit from that, according to its website. The move comes after the company’s output decreased 7.3% to 283,043 units in the country for the first four months of this year, according to figures compiled by the China Passenger Car Association. The China-made Model 3 and Model Y are priced from RMB 231,900 and RMB 249,900 ($31,886 and $34,361) after the EV giant cut the starting prices of the two models by RMB 14,000 in April. Meanwhile, Huawei lowered the price of its Advanced Driving System by RMB 6,000 to RMB 30,000, hoping to make it more affordable, while Xiaomi said it is offering free subscriptions of its advanced driver assistance software for a limited time, local media have reported. [Jiemian, in Chinese]

Zhihu, China’s Quora-like question-and-answer platform, unveiled its latest AI-driven tool named zhida.ai last weekend, which is intended to provide “a new way to obtain reliable information” supported by quality content within the Zhihu community, according to the introduction posted on the platform’s official website. The company has partnered with domestic AI startup Model Best to develop the artificial intelligence foundation model Zhihaitu AI, which was released last April, and the model has been deployed to drive the new Q&A feature. When a user sends a question to the tool, it replies with a summary, a detailed answer, and a list of sources at the top, with direct links to relevant Zhihu pages. [Zhihu, in Chinese]

Data from the China Academy of Information and Communications Technology (CAICT), shows that in May, iPhone shipments in China increased by 40% year-on-year, continuing April’s rebound momentum. CAICT announced that the shipment volume of foreign branded phones in China for May increased from 3.603 million units last year to 5.028 million units this year, a rise of 1.425 million units. Despite not being mentioned by name, the increase in shipments is largely due to Apple’s performance, as the company dominates the foreign brand phone market in China. The iPhone has seen multiple price cuts in the domestic market this year, with prices dropping to historical lows during the recent 618 shopping festival, reaching discounts of up to RMB 2,350 ($324). [MyDrivers, in Chinese]

In the first quarter, China’s cloud service spending rose by 20% year-over-year to $9.2 billion, according to the latest data from market research firm Canalys. The market continues to be dominated by the three giants—Alibaba Cloud, Huawei Cloud, and Tencent Cloud—which collectively grew 22% year-over-year and held 72% of the total market share. Alibaba Cloud led with a 37% market share, followed by Huawei Cloud at 19% and Tencent Cloud at 16%. Price cuts by major vendors and increased AI application investments boosted cloud adoption, the report analyzed. Additionally, both Huawei and Tencent introduced AI-focused partner programs to enhance market differentiation and foster AI adoption. [Canalys]

China’s Baidu currently has 300 million users of its ChatGPT alternative ERNIE Bot, the company’s chief technology officer Wang Haifeng announced at Wave Summit 2024, at which the search giant teased the latest version of its AI foundation model ERNIE 4.0 Turbo. The country’s most popular AI tool, ERNIE Bot broke the 100-million-user milestone in December 2023, four months after being approved to provide generative AI services to the public, successfully doubling the figure in April. Wang said Baidu’s AI bot handles 500 million queries a day. The new model can be accessed via the official website and app, with corporate clients able to call the API of Baidu’s most advanced model directly within its AI Cloud Qianfan platform, according to Baidu. [Baidu, in Chinese]

On Thursday, World of Warcraft’s classic server Wrath of the Lich King returned to China, with the addition of new servers Jaina and Deathstalker alongside the return of some other previously available editions. Due to the high volume of players attempting to access the games at the same time, long queues formed, forcing some users to have to wait hours for access. On the Chinese social media platform Weibo, NetEase Games apologized for the login difficulties experienced just 40 minutes after the launch of the MMORPG (massively multiplayer online role-playing game), stating that staff were urgently addressing the issue. Additionally, Blizzard announced today that the official servers for World of Warcraft in China will return on August 1. In April, Blizzard and NetEase renewed their game publishing agreement after a previous dispute over intellectual property control ended their 15-year relationship in January 2023. [Jiemian, in Chinese]

Chinese flying taxi startup Aerofugia has raised “several hundred million RMB” (between $13.76 million and $137.5 million) in a new round of funding led by state-backed investment fund Orinno Capital, one year after closing Series A in excess of RMB 100 million last June. The Series B closed by the subsidiary of Chinese automaker Geely is the largest funding round of its kind in the country’s segment of electric vertical takeoff and landing (eVTOL) aircraft in two years, according to an announcement. Aerofugia said it will use the proceeds to push for the commercial operation of its AE200, a five-to-six seater tilt-rotor eVTOL aircraft with a range of 200 kilometers (124 miles). The company recently revealed plans to provide flying taxi pilot services to the public as early as 2026 in its headquarters city of Chengdu, capital city of China’s southwestern Sichuan province, as the Chinese government looks to establish what it calls a “low-altitude economy.” Orinno Capital is wholly owned by Chengdu High-Tech Investment Group Co., Ltd, a state-owned investment corporation, and the financing included previous backers Tsinghua Holdings Capital and CAS Star, a venture capital firm backed by Chinese Academy of Sciences, among others. [TechNode reporting, Aerofugia announcement, in Chinese]

Chinese phone brand Honor has responded to online chatter that it has begun developing mobile phones equipped with Huawei’s self-developed Kirin chips, with Honor’s CMO Jiang Hairong responding on the social platform Weibo that the suggestions are “pure nonsense”. Honor formerly operated as a Huawei sub-brand, before the two companies technically split apart in the wake of US sanctions against the latter. “Huawei is the great competitor that Honor respects and looks forward to competing with. As for the reports about Honor returning to Huawei, this is absolutely impossible,” Honor’s CEO Zhao Ming stated last September. In the first quarter, Honor took the top spot in the Chinese phone market with a share of 17.1%, followed by Huawei at 17%, according to market intelligence firm IDC.  [IThome, in Chinese]

SF Tongcheng, a subsidy of China’s largest express delivery company SF Express, is eyeing on-demand delivery service in Hong Kong as the Hong Kong-listed unit recorded its first yearly profit in 2023. The entry will likely serve as a start to SF Tongcheng’s overseas expansion. The service will operate under the name “SoFast” beginning in July, according to SF Tongcheng’s Wednesday announcement, with a delivery focus on documents and small parcels within the island’s territory. According to a report by Chinese media outlet Jiemian, delivery riders will earn up to HKD$ 300 per hour, and have flexibility in work time and tasks. In mainland China, SF Tongcheng offers city-wide 30-minute deliveries. [Jiemian, in Chinese]

Alibaba’s DingTalk on Wednesday announced a partnership with six homegrown Chinese large language model makers to enhance the workplace communication platform’s capacity to autonomously perform tasks from prompts using AI. MiniMax, Moonshot AI, Zhipu AI, http://01.AI01.AI>, OrionStar, and Baichuan will help DingTalk bring about what its president Ye Jun called, “the most open AI ecosystem” in China. DingTalk first integrated Alibaba’s Tongyi Qianwen model soon after it launched in April 2023, and launched DingTalk 7.5 version with its AI agent feature at the beginning of this year. The move brings chosen possibilities on foundation models for developers when building artificial intelligence agents on DingTalk, predicted the company in a speech at its Ecological Conference on Wednesday. [DingTalk, in Chinese]

Chinese electric vehicle brand Aito said on Wednesday that it has received more than 100,000 reservations with RMB 5,000 ($688) non-refundable deposits for the M9 sports utility vehicle, six months after its unveiling in December. The brand, launched by Huawei and its manufacturing partner Seres, reported deliveries of over 15,000 units of the M9 consecutively in April and May, making it China’s top-selling model in the RMB 500,000 plus price segment, according to an announcement from the company. Several major luxury brands, such as Porsche, Maserati, and Lamborghini, saw double-digit declines in their May sales in China, local media outlet Jiemian reported, citing figures from the China Automobile Dealers Association. The six-seated M9 SUV is priced from RMB 469,800 and RMB 509,800 ($65,725 and $71,321) for the range-extended hybrid and all-electric versions, respectively, and features cutting-edge technology from Huawei including a gigantic heads-up display and automated driving capabilities for urban scenarios. [Aito announcement, Jiemian, in Chinese]

Chinese battery giant CATL has revealed progress on its efforts to electrify passenger airplanes, as its incoming condensed matter battery will be ready to enable a flight range of between 2,000 and 3,000 kilometers (1,243-1,864 miles) in the next several years. The world’s largest electric vehicle battery supplier recently tested a four-ton civilian airplane with the Commercial Aircraft Corporation of China, a state-owned plane manufacturer, founder Robin Zeng told an audience on Tuesday at this year’s World Economic Forum (Summer Davos Forum). Zeng added that the company predicted an eight-ton electric aircraft powered by its high energy-dense battery will probably be launched as early as 2027, with an expected flight range of up to 3,000 km. CATL showcased a condensed matter battery prototype, a type of semi-solid state product with condensed electrolytes that boasts an energy density of 500 watt-hours per kilogram (Wh/kg), last April at the Auto Shanghai Show. [China Daily]

The National Press and Publication Administration (NPPA) of China granted licenses to 104 domestic games for June on Tuesday, including two notable titles: Tencent’s action role-playing game Rock Kingdom and Lingxi Interactive Entertainment’s female-romance role-playing game Ashes of the Kingdom (the Chinese version of which is also known as Code: Ruyuan). The global version of Ashes of the Kingdom was launched in Hong Kong, Macau, Taiwan, Singapore, and Malaysia on March 30, 2023. In this female romance-themed game, players take the role of a disguised princess leading a spy mission during the tumultuous Eastern Han Dynasty of ancient China, navigating intrigue, romance, and political upheaval to protect what they cherish and unravel secrets that could reshape the empire. Ashes of the Kingdom earned around $8.92 million in revenue across global markets three months after its launch, according to market research firm DataEye. [NPPA, in Chinese]

China’s Hozon Auto on Wednesday lodged its prospectus with the Hong Kong securities regulators, hoping to become a publicly traded electric vehicle maker in the country following similar listings from mainland counterparts NIO, Xpeng Motors, Li Auto, and Leapmotor. The 10-year-old EV startup delivered 300,000 cars to customers as of last September, with five models on sale, including the smaller and more budget crossovers Neta Aya and X, and more premium sports sedans Neta S and GT. Although Hozon delivered 124,189 vehicles last year, roughly 27,000 units fewer than a year earlier, revenue slightly increased 4% year-on-year to nearly RMB 13.6 billion ($1.87 billion) in 2023, thanks to the company selling more premium products at higher prices. However, the Shanghai-headquartered company posted a RMB 4.84 billion loss for 2023 after losing RMB 6.7 billion a year earlier, resulting in a negative gross margin of 14.9% as of last year, according to the prospectus filed with the Hong Kong Exchanges and Clearing. The firm is looking to raise $1 billion from the listing, Reuters reported last September. [Hozon prospectus, in Chinese]

The live-action interactive dating game Love Is All Around announced on Tuesday that its mobile version will offer 20,000 limited trial copies for Android players from June 28 to July 2. The exact release date of the mobile version is yet to be determined. Launched by Chinese developer Intiny last October, Love Is All Around sold 1.9 million copies in three months, generating $11 million in revenue, making it the second best-selling Chinese PC game on Steam in 2023. In the live-action filming game, players take on the role of the male protagonist, using a first-person perspective to immerse themselves in realistic simulation interactions with six women, each with distinct appearances and personalities. [Love Is All Around Weibo, in Chinese]

Pinduoduo is planning to launch more tools in the coming months beyond the automatic price adjustment feature that it introduced before the mid-year shopping event 618 as it looks to maintain its low price advantage, according to a LatePost report. The budget e-commerce platform is increasingly being hit by competitors offering lower prices for the same items. The upcoming tools are designed to “reduce merchants’ operating thresholds and decision-making costs” in an attempt to realize lower commodity prices in a simple and efficient way, the report added. LatePost also reported that Zhao Jiazhen, co-CEO of the platform’s parent company PDD and a figure who was originally in charge of its overseas business Temu, has recently retrained some of his attention on Pinduoduo. [LatePost]

US firm Scopely’s digital spin on the classic board game Monopoly Go! topped the global mobile game market in May, grossing $226 million in revenue from the App Store and Google Play, while Chinese developer Tencent’s multiplayer online battle arena game Honor of Kings secured second spot with $219 million, according to market intelligence platform Sensor Tower. Another notable Tencent entry in the top 10 was the mobile version of Dungeon and Fighter, which was only released in China on May 21, but still achieved over $100 million in revenue in only 10 days to rank eighth in the global mobile game market for the month. In May, global mobile game players spent nearly $6.7 billion on the App Store and Google Play, with the Chinese iOS market accounting for 19.2% of the total, the report added. [Sensor Tower, in Chinese]

In response to recent news about large-scale layoffs, Chinese game developer Perfect World told local media outlet Southern Finance Omnimedia on Monday that the company’s gaming projects are always adjusted based on actual operations and personnel adjustments are continuously ongoing. The company’s developing game One Punch Man is still progressing, though details about the current number of development personnel were not disclosed. There were previous reports about Perfect World’s largest round of layoffs, with nearly two entire office buildings being emptied. Over a thousand people were laid off in total, and some development departments have been cutting hundreds of staff members, one Perfect World employee claimed earlier online. Perfect World, founded in 2004 in Beijing, is best known for Perfect World International, an MMORPG (massively multiplayer online role-playing game). [IThome, in Chinese]

Indonesia’s trade officials said Temu’s business model conflicts with local government regulations, which require a distributor or intermediary to be present in the product’s journey from factory to consumer. According to a report by CNN Indonesia, the Pinduoduo sister app has yet to apply for a license to operate locally, said Isy Karim, the director general of Indonesia’s domestic trade. So far, Temu ships Chinese-manufactured goods at especially low prices to over 50 overseas markets on six continents, but it has entered only two countries in Southeast Asia, the Philippines, and Malaysia. The Indonesian government will continue to “closely monitor” the potential entry of Temu, as local officials worry that the Chinese online retailer poses a threat to the island country’s small- and medium-sized merchants, the report added. [CNN]

Major investors in fast fashion giant Shein have privately asked the firm to consider buying back their shares, according to a report by the South China Morning Post that cited unnamed sources, as Shein faces resistance to its plan to list in London. The China-founded and now Singapore-headquartered company reportedly switched its long-awaited IPO to London from New York in May this year due to regulatory hurdles in the US, but there have been no reports or evidence confirming Shein has filed a prospectus with the London Stock Exchange. The SCMP report also noted that deals selling Shein’s shares on private markets continue to take place due to concerns over its potential IPO returns. [SCMP]

Nissan ceased operations at one of its eight joint manufacturing facilities with Chinese automaker Dongfeng on June 21 in the country’s eastern city of Changzhou, less than four years after production began at the factory in late 2020, Nikkei reported. The plant, where the Japanese automaker has been producing its Qashqai compact crossovers, has an annual capacity of 130,000 units, accounting for more than 8% of the company’s total production capacity of roughly 1.6 million units in China, the report said. Nissan’s China operations reportedly plan to slash their annual output by 30%, after reporting a 16.1% decline in sales last year, as a growing number of consumers turn to low-priced electric vehicles from Chinese rivals. [Nikkei, TechNode reporting]

Two clashes between staff and customers in one day at Manner, a rapidly expanding coffee chain in China, have sent discussion of the company’s working practices viral on Chinese social media over the weekend, as anger at those involved has turned to scrutiny over how Manner treats its employees. Surveillance footage from one store shows a woman demanding that her coffee be made first because she was “late,” with a staff member telling her that orders are processed in the sequence they are received and offering to cancel her order if she was dissatisfied; the ensuing argument between the two then escalates into a physical fight. A similar confrontation seemingly occurred at another Manner store in Shanghai and has also gone viral online. A report from local media outlet Jiemian quoted a Manner employee as saying that the company assigns only one person to stores that record daily sales of under RMB 5,000 ($688.50), with the lone worker responsible for everything from looking after stock, taking orders offline and online, making coffee, and cleaning. According to the report, Manner’s baristas earn about RMB 5,000 a month on average even in first-tier cities like Shanghai. Manner has grown popular due to its affordable prices and high-quality flavors, with its cheapest Americano priced at RMB 15. The brand, which was founded in 2015, opened its 1,000th store last October. [Jiemian, in Chinese]

China’s Ministry of Commerce has received complaints from some domestic automakers unhappy that the European Commission requested sensitive business information concerning their sourcing of raw materials for batteries and manufacturing components during its investigation into the country’s subsidised electric vehicle imports. “The type, scope and quantity of information collected by the European side was unprecedented and far more than what is required for a countervailing duties investigation,” He Yadong, a commerce ministry spokesperson told a news conference on June 20. The comments were made when Chinese state radio asked about the possibility of Brussels spying on China’s EV industry and came after MG’s owner SAIC said it had withheld information related to battery formulation from the EU investigators, citing business confidentiality. Beijing and Brussels on June 22 agreed to start consultations over the EU’s anti-subsidy probe against China-made EVs. [Reuters, TechNode reporting]

Luckin Coffee plans to bring its beverage brand to the Malaysian market with a local partner as the Chinese coffee chain expands beyond Singapore, its first foreign location. Malaysia’s media outlet The Edge cited sources familiar with the matter in a report on Thursday. The partnership is accompanied by an “ambitious store expansion plan” for the next five years. US-listed Luckin Coffee is involved in a price war on its home turf, despite recording its first quarterly loss in two years in the March quarter and a negative operating margin of 1%. As of March 31 this year, Luckin Coffee, founded in 2017, has 18,590 stores globally, of which 32 are in Singapore and the rest in China. [The Edge]

Alibaba-owned workplace management app DingTalk has put global expansion on its agenda after running a small-scale pilot serving hundreds of Chinese enterprises with overseas businesses, according to a report by Chinese media outlet 36Kr on Thursday. The report said DingTalk had drawn employees from product R&D, solutions, sales, and marketing to form a mixed team to support the expansion project, and is currently hiring Southeast Asia-based regional managers and solutions managers. According to the company, by the end of 2023, DingTalk had more than 700 million users, and the platform also serves 25 million corporates and educational institutions, of which 120,000 were paying customers. [36Kr, in Chinese]

Chinese automaker SAIC has responded to the European Commission’s decision to impose a punitive 38.1% tariff on its electric vehicles by unveiling a range of accessories, from baseball caps to coffee mugs, featuring a distinctive 38.1 design with a small EU flag forming the decimal point. Other items include table tennis bats and little badges with the MG logo and the words “A quality car specially selected by the EU,” according to the designs posted on China’s Twitter-like microblogging platform Weibo by Shao Jingfeng, a deputy design chief at SAIC. It is not clear whether the state-controlled manufacturer will actually produce and sell the collection, yet Shao has invited public feedback on the social media space. The news comes after Brussels said on June 12 it will impose additional tariffs of between 17.4% and 38.1% on Chinese electric vehicle imports, with MG’s owner and those deemed incompliant with EU standards facing the hardest hit, TechNode has reported. [TechNode reporting, Shao Jingfeng’s post on Weibo, in Chinese]

Volkswagen-backed Gotion High-tech said on Wednesday that claims its supply chain has ties to forced labor are false, after a group of US Republican lawmakers called for the company, along with its larger rival CATL, to be added to an import ban list. “All allegations are completely groundless and contradictory to basic facts… Gotion is in strict compliance with all applicable laws and regulations with respect to its operations and business activities in the U.S,” Gotion said in a statement. The company claimed that it found no business relationship and connection to forced labor or anything that violates applicable laws and regulations between the company and its suppliers and suppliers’ subsidiaries, after conducting thorough internal reviews. Rep. John Moolenaar, head of the House Select Committee on the Chinese Communist Party, among several others, sent two letters to the Biden administration calling for action to ban the companies from shipping goods to the US, Wall Street Journal reported on June 6. CATL also denies the claims. [TechNode reporting, Wall Street Journal]

Tencent announced on Wednesday that its mobile game Dungeon and Fighter (DNF) will no longer be available on certain Android platforms from June 20 due to its contract expiring. In a statement, the DNF operations team recommended that players on Android directly download the game from the official website. Tencent has notified major domestic Android app stores, including those of Huawei, Xiaomi, Oppo, and Vivo, that updates for the DNF package on these channels will cease today, according to local media outlet Yicai. “Listing on domestic Android channels (app stores) means losing half our revenue, and our official website packages even get secretly replaced with revenue-sharing channel packages during installation. It’s better to stick to our official website for the game,” the CEO of XD Games, Huang Yimeng, told Yicai. [Yicai, in Chinese]

CATL announced on Tuesday it is establishing a giant new battery plant on an area of 260,000 square meters (2.8 million square feet) on the outskirts of Beijing. The facility will be the company’s first in northern China and is set for operation in 2026. The world’s largest battery supplier by shipment did not reveal the capacity of the factory to be developed in China’s capital city, but it is located adjacent to Xiaomi’s electric vehicle plant in the Beijing Economic-Technological Development Area (E-town). The news comes after CATL last month set up a joint venture with Xiaomi and state-owned automaker BAIC for battery supply in the city, with CATL owning 51% of the new venture with a registered capital of RMB 1 billion ($140 million).

CATL also said it will deepen its partnership with BAIC to develop the so-called “skateboard chassis” for future battery EVs, while developing new models powered by its swappable batteries and co-establishing public facilities for battery swaps, after the two companies joined hands in 2022. CATL’s Integrated Intelligent Chassis (CIIC) is said to be a one-stop approach, intergrating battery cells, electric motors and other key parts under one structure, which means reduced weight for the car with no need for a separate battery pack. Chief scientist Wu Kai last November expected the company to begin producing the CIIC in the third quarter of 2024. CATL-backed EV startup Hozon is working on the first use of the chassis and Avatr, the premium EV brand from Chinese automaker Chang’an, is also collaborating with CATL on a similar effort. [CATL announcement, in Chinese]

Intel’s Lunar Lake processor, also known as the Core Ultra 200V series, is being fully manufactured by TSMC for the first time, with the computing module using TSMC’s 3nm process (N3B technology) and the platform control module using TSMC’s 6nm process (N6 technology), according to local media outlet MyDrivers. Intel will launch the Lunar Lake at the end of the third quarter, introducing the new Lion Cove P-core architecture, Skymont E-core architecture, and Xe2-LPG integrated graphics architecture for the first time. The Lunar Lake will also debut the integration of on-package memory (16/32GB). Another part of the Core Ultra 200 series, Arrow Lake, will target high-performance desktops and will enter the market in the fourth quarter. [MyDrivers, in Chinese]

WeChat owner Tencent will ban virtual influencers from livestreaming on its TikTok-like service Video Accounts, a strict move that the tech giant said aims to “encourage more real live hosts who can interact with viewers in real-time.” The move comes as rival platforms have largely adopted a hands off approach to AI-powered anchors. According to a draft rule covering “low-quality content,” the platform would ban avatars powered by AI or plugins from livestreaming and selling, and would penalize offenders depending upon the severity of the incident. The draft regulation underwent a ten-day public feedback period in early June and is expected to go into effect on Friday. [ThePaper, in Chinese]

Huawei’s upcoming flagship phone the Mate 70 Pro may continue the same triple punch-hole design on the front as the Mate 60 Pro, with identical hole positions and sizes, according to tech blogger Moment Digital. Currently, the Huawei Mate 60 Pro smartphone is the only phone that uses this triple-front-hole design. In April, another source, Digital Chat Station, suggested that the Huawei Mate 70 series would include a OV50K 1/1.3-inch large main camera sensor developed by California-based OmniVision Technologies, offering advanced capabilities designed for smartphone cameras and other imaging applications. The Huawei Mate 70 series is set to launch in the second half of this year; the previous generation Mate 60 series was launched last August. [IThome, in Chinese]

Chinese e-commerce platform JD said it hit a record high in merchandise volume and order numbers for its recent mid-year shopping event 618, though it failed to provide specific figures. The company said more than 500 million users shopped via JD during the online festival, which began on the evening of May 31, adding that customers had responded positively to its theme of “cheap and good” this year. Small merchants serve as a common focus for JD and rival Taobao during the event, with the former saying that more than 150,000 such sellers saw their sales grow by over 50%. Alibaba’s marketplace provided similar data, with 1.9 million small- and medium-sized merchants on Taobao experiencing double their turnover year-on-year as of June 18, according to the company. [JD, in Chinese]

On Chinese social media platform Weibo, tech blogger Digital Chat Station today revealed details about Xiaomi’s first flip phone, the MIX Flip, which he said will feature a Qualcomm Snapdragon 8 Gen 3 chip and a large outer display. The MIX Flip is expected to be released next month, the blogger mentioned in the comments on his post. The new flip phone may also offer a 1.5K flexible inner display, a 32MP front camera, a 50MP main camera, a 60MP telephoto rear camera, and a 4,900mAh battery with 67W wired charging, according to previous leaks. Xiaomi has yet to publicly confirm a release date or further details regarding the new flip phone. [Digital Chat Station, in Chinese]

The German Chamber of Commerce in China has called on Beijing and Brussels to seek a resolution through negotiation on EU tariffs on Chinese electric vehicle imports, which it says offer no protection to German carmakers and foster tariff escalations that can only hurt the industry. “The industry also made quite clear statements that tariffs, as suggested now by the EU, will not increase the competitiveness of the automotive industry,” Maximilian Butek, executive director of the German Chamber of Commerce in East China, told the South China Morning Post. The comments come as Germany’s vice-chancellor and economics minister Robert Habeck will meet Chinese officials in Beijing to discuss trade issues on Thursday, and after Brussels announced the imposition of extra duties of up to 38.1% on Chinese EV imports last week. In the latest sign of worsening relations between China and Europe, the Chinese government on Monday announced it has opened an anti-dumping investigation into imported pork and its by-products from the European Union, with Spain, the Netherlands, and France among the major pork exporters to China. [South China Morning Post, Reuters]

Chinese ride-hailing company Didi said on Tuesday it has no timeline set for when it will list again on public markets, amid rumors that it is preparing for an initial public offering in Hong Kong two years after being delisted from the New York Stock Exchange. The comments came after The Information reported on Monday that representatives from the Chinese ride-hailing giant have been approaching potential US-based investors over the past few months, joining meetings and calls organized by investment banks such as Morgan Stanley and Goldman Sachs. Bloomberg reported last October that the ride-hailing platform hoped to list shares in Hong Kong in 2024, although that was a year later than previously planned, according to The Information report. The company said it has been maintaining regular communication with investors to keep them updated on the progress of it’s business, although there is no timetable at present regarding a potential IPO. Didi’s revenue increased 14.9% year-on-year on the back of a 30.3% growth in total trips in the January-March quarter, as the firm’s business returns to normal following its delisting from the US and a major investigation into its practices in China. [The Information]

Qcraft, a Chinese startup co-founded by four former engineers at Google’s self-driving project Waymo, has raised “several hundred million RMB” (between $13.78 million and $137.68 million), more than a year and half after closing a Series B round where it attracted a similar amount of funding in late 2022. The investment was jointly made by Beijing-based investment firm Cuihu Capital and Beijing Zhongguancun Science City Construction Holding Co., Ltd, a conglomerate backed by the Chinese Academy of Science, according to a statement published on June 14. Best known for developing advanced driver assistance systems (ADAS) for Li Auto based on Horizon Robotics’ computing platforms, Beijing-based Qcraft said it has facilitated “a top Chinese electric vehicle maker” to deliver nearly 400,000 cars with its Navigation on ADAS (NOA) technology. Among the existing investors in the five-year-old startup are Chinese tech giants Bytedance and Meituan. [Qcraft announcement, in Chinese]

At the Worldwide Developers Conference 2024, Apple introduced the DockKit accessory integrated with the DockKit protocol for phone stabilizers on June 14, demonstrating the latest AI-phone stabilizer from the Chinese camera brand Insta360. Engineers from the DockKit team showcased that the stabilizer can directly access the iPhone’s native camera on the iOS 18 system for auto-tracking, front/rear camera switching, and zoom control. With DockKit’s tracking technology, the Insta360 AI-phone stabilizer can lock onto and track subjects without requiring manual adjustments, the company claimed. Insta360 has said that the Insta360 Flow series AI phone stabilizer will be released in the coming weeks, despite not yet disclosing other product details or pricing. [TechNode reporting]

Tata Group, one of India’s largest conglomerates, is in negotiations to acquire at least a 51% stake in the Indian subsidiary of Chinese smartphone manufacturer Vivo, according to Indian media outlet MoneyControl. A final deal has not yet been reached because Vivo is seeking a higher valuation than what Tata Group is currently offering, though Tata Group remains interested in the potential acquisition and plans to take control of the joint venture’s production and sales network for future localization, according to the report. Under continued pressure from the Indian government, Chinese smartphone manufacturers are being compelled to sell majority stakes in their Indian subsidiaries to continue operations in the country. Another Chinese smartphone brand, Oppo, is also in talks with local firms to divest its Indian subsidiary, the report added. [MoneyControl]

Ant Group spent a record RMB 21.2 billion ($2.9 billion) on research and development last year, according to its 2023 sustainability report posted on Thursday. The figure rose 3.6% from a year earlier and 12.7% compared to 2021. The fintech giant said that spending was largely focused on artificial intelligence technology. Ant opened its Bailing AI foundation model to the public in November. In other key figures, the affiliate of e-commerce giant Alibaba said it had served more than 87 million small business enterprises by providing digital payment services as of 2023. As part of the company’s overseas expansion effort, Ant Group has cooperated with 25 e-payment platforms, reaching over 1.5 billion accounts at home and abroad to boost cross-border payments. [Ant Group, in Chinese]

Honor on Thursday launched its first flip foldable phone, the Magic V Flip, as the Chinese phone maker aims to intensify its competition in the high-end foldable market against leading players such as Samsung and its former parent company Huawei. The Magic V Flip features a 4-inch cover screen, Snapdragon 8 Gen 1 processor, a 50MP main camera with a Sony IMX906 sensor, and 66W fast charging. The new device combines an innovative flip design with high-speed performance, appealing to users seeking convenience in a compact, fashionable form, the company claimed. Currently, the Magic V Flip is only available in China, with a starting price of RMB 4,999 ($689). In the first quarter, Honor led China’s smartphone market with a 17.1% market share, according to market intelligence firm IDC. [Honor Weibo, in Chinese]

A 17-year-old fashion design student has garnered widespread attention in China for making it to the final of an Alibaba-backed global math competition, with her background of studying at a Jiangsu-based vocational senior secondary school marking her out against the other finalists who hailed from prestigious schools such as Peking University, Tsinghua University, and MIT. Ranked 12th out of a total of 801 finalists, Jiang Ping was also the only female in the top 30, according to Alibaba. Jiang spent two years self-studying partial differential equations, according to a video posted by the competition organizer, Alibaba’s DAMO Academy. She said she wanted to show what she could do and “be seen by others.” The annual competition allowed teams to use artificial intelligence to solve the math problems this year, but none of the teams who employed AI were successful in making it to the final. [DAMO Academy, in Chinese]

In the first quarter of 2024, Huawei’s HarmonyOS surpassed Apple’s iOS in the Chinese market for the first time, making HarmonyOS the second most-used operating system in China behind Google’s Android, according to market research firm Counterpoint Research. The report indicated that the market share held by Huawei’s HarmonyOS in China rose from 8% in the first quarter of 2023 to 17% in the first quarter of 2024, while the share held by Apple’s iOS declined from 20% to 16%. The 5G adoption rate of HarmonyOS reached 50% in the first quarter of 2024, the report added. On Tuesday, Huawei updated its HarmonyOS with a new 4.2 version for its Huawei Mate 40 series smartphones. [IThome, in Chinese]

Japan’s Ministry of Finance trade statistics show that half of Japan’s semiconductor manufacturing equipment exports were heading to China in the first quarter, according to the Japanese media outlet Nikkei Asia. In the first quarter, Japan’s total exports of semiconductor manufacturing equipment, components, and flat panel display manufacturing equipment to China were valued at $3.32 billion, a 82% year-on-year increase, and a new record post-2007. Notably, the share of Japanese semiconductor manufacturing equipment exported to China has exceeded 50% for three consecutive quarters, the report added. Last July, Japan announced export controls on 23 semiconductor-related items used for chip making to align with US restrictions on China’s ability to produce advanced semiconductors. [Icsmart, in Chinese]

The US government is considering additional restrictions on China’s access to advanced chip technology used in AI, Bloomberg reported on Tuesday. The potential measures aim to limit China’s ability to utilize a cutting-edge chip architecture known as gate all-around (GAA), the report said. GAA transistor architecture enhances chip performance and reduces power consumption. The specifics of the proposed rules are still under discussion, and it is unclear when a final decision will be made, according to the media outlet’s sources. Major semiconductor companies Nvidia, Intel, AMD, TSMC, and Samsung are planning to begin mass production of GAA-designed chips next year, the report added. [Bloomberg]

Apple is in the process of finding a way to bring Apple Intelligence, its system that integrates generative AI for iPhone, iPad, and Mac devices, to “all of our customers,” the tech giant’s top software engineer Craig Federighi said in an interview with media outlet FastCompany. Though he did not directly mention China, Apple’s second-largest market, Federighi did note that “in some regions of the world, there are regulations that need to be worked through,” and that Apple has started the relevant procedures. Large models need to get approval from authorities before a public-facing launch in China, where US-based OpenAI’s ChatGPT is not officially available. Apple has announced it forged a partnership with ChatGPT to power some of its AI “Intelligence” features at the company’s developer conference on Tuesday. [FastCompany]

Lilium, a German aviation firm backed by Chinese tech giant Tencent, said on Monday it has established its regional headquarters in China’s southern city of Shenzhen as part of a collaboration agreement with the government of the city’s Bao’an district. Lilium will set up its local entity (力翎航空) in the Bao’an Low Altitude Economy Industry Public Service Center, becoming the first European manufacturer of electric vertical takeoff and landing aircraft (eVTOL) to base a regional office in the district. The company hopes its flying vehicles will eventually meet local safety requirements and receive airworthiness certification from China, a prerequisite for the commercial operation of eVTOLs in the country, making it “an active and contributing industry player in the region’s low altitude economy.” The news comes as dozens of local governments in China have recently released their work plans to facilitate the development of eVTOLs, responding to Beijing’s call to bolster what it calls the “low-altitude economy,” as TechNode has previously reported. With Shenzhen-based Tencent being its largest shareholder with a roughly 22% stake, Lilium in April set up a wholly-owned subsidiary in the city with a registered capital of €1.9 million ($2 million), according to the Chinese corporate database Qichacha. [Lilium release, TechNode reporting]

Chinese electric vehicle maker Zeekr’s aggressive global expansion drive is putting it on track to achieve its annual delivery target of 230,000 units for this year, executives said on Tuesday at its first-quarter earnings call. The company is planning to expand its footprint from 25 to more than 50 global markets by the end of this year, said Andy An, chairman of Geely Auto Group and chief executive of Zeekr. This would include 6-8 mainstream European countries, as well as those in Southeast Asia, the Middle East, Latin America, and Australia. The updated plan is an acceleration of the one revealed by An at this year’s EV100 forum in April for selling Zeekr EVs in six Western European countries and 38 markets on China’s south coast and in the Gulf region by year-end.

Financial chief Yuan Jing said the Geely affiliate still has a “very big ambition” for Europe but will spend more effort on other locations outside of China this year, adding that its parent company’s global manufacturing footprint would give it more flexibility than most competitors. The comments come as the European Commission is about to publish the results of a nine-month probe into Chinese EV subsidies. New York-listed Zeekr on Tuesday reported its first quarterly financial results as a public company. Revenue for the January-March quarter rose 71% year-on-year to RMB 14.74 billion ($2.04 billion), with a narrowed net loss of RMB 2.02 billion. Vehicle delivery more than doubled to 67,764 units for the first five months of this year. [Zeekr financial release]

Chinese food delivery giant Meituan on Tuesday announced a plan to buy back shares valued up to $2 billion, with the board saying it believes that the company’s existing financial resources are “sufficient” to support share repurchases while “maintaining a strong financial position.” The move comes just days after the Beijing-based company reported solid first-quarter earnings, with revenue rising 25% from a year earlier and profit recorded around 60% higher than last year, landing at RMB 5.4 billion. Meituan’s shares have grown more than 80% from a January low of around HK$60, and the firm has already spent about $995 million on stock buybacks this year. [Meituan, in Chinese]

The stock price of Chinese livestreaming e-commerce company East Buy dropped 9% and closed at HKD 13.9 on Tuesday, fueled by its star livestreamer Dong Yuhui saying that he was very “resistant” to being a salesperson and that he doesn’t enjoy promoting goods for sales. The New Oriental subsidy’s Hong Kong-listed shares have fallen 15.5% in the past five days, marking a new blow after famous private tutor Michael Yu, also the founder of the two companies, said publicly that East Buy’s livestream sector is doing “a messy job” right now. The former tutoring firm has found success via its e-commerce transition since mid-2022 as Dong, a former English-language tutor who pitches products bilingually, helped East Buy attract a flood of viewers. Yet the company’s latest earnings results showed its net profit had more than halved in the six months ending November 2023, making the achievement of stable profits a key challenge for East Buy. [Yicai, in Chinese]

On June 10, Chinese developer Game Science started the pre-sale of its upcoming action role-playing game Black Myth: Wukong, which sold out within seconds. Currently, reservations on the e-commerce platform JD have exceeded one million. The PC Deluxe and Collector’s Editions of Black Myth: Wukong are limited to 20,000 and 10,000 units, respectively, with prices of RMB 820 ($113) and RMB 1,998 ($276). Notably, the Deluxe Edition includes the Tightening Spell, a magical incantation decoration worn as a headband by the protagonist of the classical 16th-century Chinese novel Journey to the West. The release date for Black Myth: Wukong is set for August 20, with the digital standard edition priced at RMB 268 ($37). [IThome, in Chinese]

On June 10, at WWDC 2024 (the Worldwide Developers Conference), Apple CEO Tim Cook announced plans for the Apple Vision Pro to be launched in markets outside the US, with pre-orders in China beginning on June 14 and official sales starting on June 28. The Apple Vision Pro headset is finally arriving in mainland China after being on the market for four months. Japan and Singapore will also start sales on the same day. The 256GB version of the Apple Vision Pro is priced at RMB 29,999 ($4,135), the 512GB version at RMB 31,499 ($4,342), and the 1TB version at RMB 32,999 ($4,549). Optical inserts, which are needed based on the user’s vision, must be purchased separately, starting at RMB 799 ($110). [Jiemian, in Chinese]

Chinese domestic travelers spent RMB 40.35 billion ($5.56 billion) during the Dragon Boat festival, three days in which 110 million trips were made, data from Ministry of Culture and Tourism showed. Per capita tourism expenditure rose 4.2% compared to the same period last year, though it lagged the 2019 figure. Consumer confidence remains damp on the second Dragon Boat Festival after China lifted its Covid-19 restrictions. The traditional June Chinese holiday sees people celebrate by eating sticky rice dumplings and racing dragon boats. Reports from mainstream local travel service providers showed bookings from smaller and county-level cities reached a fervor surpassing the popularity of travel experienced in China’s megacities. [Xinhua, in Chinese]

BYD on Thursday revealed plans to launch an electric shooting brake in July or August that will compete against luxurious offerings from German majors such as the BMW 5-series, the Mercedes-Benz E-Class, and Audi’s A8 saloon. The Denza Z9 GT will feature an innovative electric drive system using three separate motors, among other new technologies, BYD chairman Wang Chuanfu told investors during the company’s annual shareholder meeting in Shenzhen, as reported by Shanghai Securities News. China’s biggest electric vehicle maker first showcased the Panamera-like model at the recent Beijing Auto Show in April, with the vehicle boasting a combined output of nearly 1,000 horsepower and acceleration from 0 to 100 km/h (62 mph) within three seconds. BYD currently has three Denza models on sale and delivered 47,388 vehicles under the mainstream luxury brand for the first five months of this year, representing a 3.7% growth from last year and of which most were its multi-purpose van the D9. The automaker plans to launch three new models in the lineup in the second half of this year with an annual delivery target of 200,000 units, Zhao Changjiang, general manager of the Denza unit, told Chinese reporters in February. [Shanghai Securities News, in Chinese, TechNode reporting]

Chinese food delivery giant Meituan has reported better-than-expected earnings for the first three months of this year, posting a 25% revenue increase to RMB 73.3 billion ($10.1 billion). Its core local business generated RMB 54.6 billion fueled by strong takeaway orders. Net profit for the quarter rose to RMB 5.4 billion compared to RMB 3.4 billion a year prior, partly as the company’s new businesses narrowed losses by nearly half versus the same period last year. CEO Wang Xing attributed the first quarter’s earnings results to the firm’s reorganization that began early this year, which pushed for closer operating connections between food delivery and in-store services, a move that he said had increased “the platform’s overall efficiency.” On the related earnings call, Wang also told investors that Meituan is taking steps to research the possibility of entry into European and Southeast Asian markets, while continuing to evaluate the Middle East’s market potential in terms of food delivery. [Meituan]

NIO said on Thursday it aims to deliver between 54,000 and 56,000 electric vehicles for the April-June quarter, which could represent a year-on-year growth of between 129.6% and 138.1%, after reporting a wider first-quarter net loss and a reduced revenue of RMB 9.9 billion. This means June deliveries could reach roughly between 18,000 and 20,000 units as the Chinese EV maker handed over more than 36,000 cars to customers in the past two months, partly thanks to a significant price reduction on its battery leasing program in March. The company attributed the 7.2% year-on-year revenue decline and the RMB 4.9 billion ($677 million) net loss to seasonal factors such as the eight-day Lunar New Year holidays in February as well as lower average selling prices due to promotions and discounts. NIO will begin delivering the first model under its third brand, codenamed Firefly, in the first half of next year, covering a price range of between RMB 100,000 and RMB 200,000, William Li, founder, chairman, and chief executive, told investors during an earnings call. [NIO financial report]

Kuaishou on Thursday introduced a text-to-video model, “Kling,” which the short video platform operator says can generate “up to two minutes of video with 1080p high-definition.” In a demo the company released, the Sora-like model shows the ability to create a video featuring a cat driving a car through a busy downtown street based on simple text prompts, with Kuaishou saying Kling aims to “make imagination alive.” The Douyin rival also highlights Kling’s ability to produce videos following realistic motions and making people dance from full-body photos. The Kling video model is “self-developed” by Kuaishou’s LLM team and uses Sora-similar technology, according to its official website. It is available for an invitation test on the Kuaiying app, a video shooting and editing app of Kuaishou. [Kling, in Chinese]

China’s National Press and Publication Administration (NPPA) on Wednesday announced the approval of the third batch this year of imported game licenses. This batch includes 11 mobile games, one PC-end game, and three console games (for PlayStation, Xbox, and Nintendo Switch). Notably, Black Desert, Daemon X Machina, and Valorant, three titles acquired by Tencent Games, have been approved. In 2020, the tactical first-person shooter game Valorant was launched by US developer Riot Games, the same company behind popular title League of Legends. Tencent Games, as a major shareholder of Riot Games, intends to release the mobile version of Valorant soon, though the specific date has not yet been confirmed. [NPPA, in Chinese]

On Wednesday, China’s leading drone maker DJI announced it has conducted a high-altitude transportation test with drones on the southern slope of Mount Everest, marking the first time that a civilian drone has completed a round-trip on a route at altitudes between 5,300 meters and 6,000 meters. From April 25 to May 1, DJI’s test team conducted a week-long test of the FlyCart 30 drone’s high-altitude flight and transport capabilities at and above the Everest Base Camp on the southern slope of the mountain, located at an altitude of 5,364 meters, according to the company. The test team claimed a new civilian drone flight record by reaching an altitude of 6,191.80 meters and achieved a round-trip at an altitude of 6,000 meters with a payload of 15 kilograms. The drone can transport oxygen cylinders up the mountain and bring back garbage on its return trip, DJI said. [DJI, in Chinese]

FinDreams Battery, a wholly-owned subsidiary of Chinese automaker BYD, has won a contract to supply affordable lithium iron phosphate (LFP) battery cells to Tesla for the Elon Musk-led auto firm to make its Megapack energy-storage batteries, Chinese media outlet LatePost reported on Wednesday, citing sources familiar with the matter. BYD is set to supply as much as eight gigawatt hours (GWh) of battery cells annually from early 2025, if Tesla’s new Shanghai plant reaches full capacity, which could bring the Chinese manufacturer revenue of RMB 3.5 billion ($483 million) based on average industry prices. The move could give Tesla more bargaining power and avoid its reliance on CATL, which is currently the exclusive supplier of storage batteries for the US automaker in China, sources said. Last month, Tesla began construction of its first overseas Megafactory facility, scheduled for operation in Shanghai in the first quarter of 2025. It plans to initially make 10,000 Megapack units a year, equal to around 40 gigawatt hours of energy storage, Chinese state media outlet Xinhua first reported on April 9, 2023. [LatePost, in Chinese]

China’s Semiconductor Manufacturing International Corporation (SMIC) has been increasing efforts to adopt domestic semiconductor manufacturing equipment, as China strives to end its dependence on US chip-making technology, The Wall Street Journal reported on Monday. While SMIC’s technology lags behind industry leaders such as TSMC and Samsung, at its new Jingcheng facility near Beijing, the firm is aggressively integrating domestic chip production equipment and reducing its reliance on American tools, according to a source. The push for local chip production aims to shield Beijing from US sanctions, with China increasing investment in research and development in related areas. A key example of a breakthrough in this direction is the Huawei Mate 60 smartphone launched last August, which is equipped with the Chinese tech giant’s self-developed Kirin 9000S processor, the report mentioned. [The Wall Street Journal]

Nine major Chinese automakers, including BYD, SAIC, and NIO, have been allowed to proceed with a pilot program to test their production vehicles with medium-to-high levels of automation on public roads, according to a document jointly published by four central government departments on Tuesday. The initiative, launched in November by China’s top industry, public security, transport, and housing authorities, is aimed at facilitating the deployment of intelligent and connected vehicles and sustaining the drafting of subsequent rules, regulations, and national standards for access to such vehicles.

The nine companies are mostly state-owned manufacturers with some private EV makers also included, namely BAIC, BYD, Changan, FAW, GAC, NIO, SAIC, SAIC’s truck subsidiary Hongyan, as well as electric bus maker Yutong. They are now required to detail their proposed testing plans and safety evaluation methodology for autonomous vehicles as part of an application process for temporary permits to commercially operate their robocars with L3 and L4 self-driving functionality on select Chinese public roads. Some of the early movers with the technology, including Tesla, Xpeng Motors, and Huawei, did not join the program. [MIIT announcement, in Chinese, TechNode reporting]

Apple is in negotiations with leading mobile service provider China Mobile to launch its Apple TV+ streaming service in China, according to an exclusive report by US media outlet The Information. Insiders say Apple has substantial reasons to reach an agreement, which would extend Apple TV+ coverage to over 200 million China Mobile users. If negotiations succeed, Apple TV+ will be the only US streaming service available in China. Additionally, Apple has reached an agreement with Tencent to offer several popular applications in the Chinese market on Vision Pro, the report added, after Tim Cook confirmed that Vision Pro will be launched in China later this year. [The Information]

Major Chinese e-commerce player JD has seen a flurry of consumers from lower-tier cities buy goods on its “buy 9.9, enjoy free shipping” channel, which attracted more than 100 times the number of shoppers year-on-year within the first hour of the 618 shopping festival, with over 75% of users from third tier and lower cities. The company posted the initial results on its official WeChat account, adding that big brands including Apple and Xiaomi topped RMB 100 million ($13.8 million) in transaction value “soon” after the beginning of the mid-year shopping festival. Rival Alibaba meanwhile said about 185 brands, also including Apple and Xiaomi, exceeded RMB 100 million in total merchandise volume on Tmall as of 9 p.m. on May 31. This year, Chinese online retailers have set different timelines for the ongoing shopping bonanza while tending to provide ambiguous data, which has made it harder to compare performance year-to-year. [JD; Jiemian, in Chinese]

Prosperity7, the capital fund of Saudi Aramco, has invested in China’s GenAI startup Zhipu AI in the latest $400 million fundraising round, according to Bloomberg quoting anonymous sources. The investment valued the Tsinghua University AI spin-off at about $3 billion. Zhipu AI’s backers include Chinese tech titans Alibaba and Tencent as well as food delivery giant Meituan. Fresh injections from the Saudi fund are flagged as the first well-known capital venture outside China to bet on the country’s AI industry to build an OpenAI alternative. A previous test conducted by Tsinghua University showed Baidu’s ERNIE Bot 4.0 and Zhipu AI’s GLM-4 as top China’s large language models in terms of overall capabilities. [Bloomberg]

Li Auto is going to combine its sales and delivery divisions into a new group in the company’s latest effort to revamp its operations and rev up sales, after reporting lower-than-expected financial results for the first quarter of 2024. The move is expected to bring consistency and spread resources across the two teams, people with knowledge of the matter told Chinese media outlet Meiren Auto on Monday. Performance evaluations had previously been measured by orders and deliveries respectively, which had the potential to lead to conflict when customers put down early orders but wanted their cars delivered the following month, the report said. The news comes after the Chinese electric vehicle maker announced on April 3 a reorganization to sharpen its focus on product development and a failed launch of its first all-electric model, the Mega, in March. The company on May 21 reported a 37% decline in first quarter profit, saying it had delayed plans to launch more battery-powered electric vehicle models to next year. [Meiren Auto, in Chinese]

Chinese phone maker Honor announced today that it will release its first small foldable phone, the Magic V Flip, on June 13. Pre-orders are now open in three color options: black, pink, and white. The new foldable phone features 12GB of RAM and comes with three storage choices – 256GB, 512GB, and 1TB – according to the company. Honor has said it is procuring the largest external screen on the market for this new model, with this aspect expected to be a key selling point for the Magic V Flip, according to local media outlet IThome. China’s foldable phone shipments reached 1.86 million units in the first quarter of 2024, representing an 83% increase year-on-year, as reported by market intelligence firm IDC in April. In the first quarter, Huawei maintained its leading position with a share of 44.1% in the domestic foldable market, while Honor ranked second with a share of 26.7%. [IThome, in Chinese]

Chinese book publisher Motie Group has warned it has halted the shipping of all books to online retailer JD, as a dispute between the two companies over low-priced promotional books during the mid-year 618 shopping festival became increasingly heated. Shen Haobo, founder of Motie, issued a lengthy public post on his WeChat account urging JD to remove all Motie-published books and return them to the company. According to local media outlet Yicai, the source of the dispute is a model that allows JD to sell books at any price it wants, with the publisher effectively unable to control the price of its goods on the platform. E-commerce platforms’ relationship with merchants has deteriorated amid the escalation of the former’s ongoing low-price strategy. Yicai quoted one of JD’s sales and procurement staff who was responsible for the book category as saying that the platform only wants consumers to buy good books cheaply. Shen retorted by labeling the platform’s behavior as “hooliganism.” [Yicai, in Chinese]

Amazon has announced that its Kindle China eBookstore will cease its cloud download service on June 30, 2024. Undownloaded eBooks will no longer be accessible and related customer support will be discontinued. Amazon recommends users download purchased eBooks to their Kindle devices and apps (including mobile and desktop versions), and remain logged into their Amazon accounts for continued access. In 2022, Kindle announced its withdrawal from the Chinese market and stopped operating the Kindle China eBookstore on June 30, 2023. Amazon has provided refund services to users, maintaining them until June 30, 2024. Additionally, Chinese users still have the option to use Kindle e-readers through third-party reading apps such as Tencent’s WeChat Read. [MyDrivers, in Chinese]

Shein plans to file for a London IPO in the coming days as its stalled US listing shows no signs of making progress, according to a report from Sky News on June 2. The report said the listing is expected to value the online fashion giant at around £50 billion, less than the $66 billion valuation the business was given during its last funding round early last year. Filing a prospectus with UK regulators does not guarantee a successful listing for Shein, according to Sky News, and a previous report revealed that the China-founded fashion retailer would still prefer to go public in the US, however, uncertainty around its proposed US listing has forced the company to consider alternatives. [Sky News]

In the first quarter, global shipments of wearable wristband devices totaled 41.2 million units, with Apple, Xiaomi, and Huawei ranking as the top three brands, according to market research firm Canalys. Apple saw a 12% year-on-year decline in global shipments but maintained its leading position with an 18% market share. Xiaomi took second place with a 15% market share, while Huawei secured third spot with a 13% market share. The Canalys report claimed that Xiaomi’s 38% year-on-year growth was driven by a diverse product lineup and rapid overseas expansion, while Huawei’s 46% year-on-year growth was driven by strong domestic sales of the Watch GT4. [Canalys, in Chinese]

Chinese automaker Great Wall Motor has made the decision to shut down its European headquarters in Munich, Germany, and will dismiss about 100 employees before Aug. 31, when the closure will take effect, Automotive News Europe reported on Wednesday. A company spokesperson attributed the move to “tough market conditions” and the “very concrete threat of punitive taxes” on Chinese imports, adding that the automaker will supervise its regional operations remotely to sell cars via local distributors in countries such as Germany and the UK. The automaker, headquartered in the northern Chinese city of Baoding, is still planning to build a factory in Europe with Germany, Hungary, and the Czech Republic among the possible locations, although it sold only 1,621 vehicles on the continent in the first four months of this year. The European Commission is supposed to inform Chinese exporters of whether it intends to impose punitive tariffs by early June and they could come into effect within a month or so, Bloomberg reported on May 22, citing consulting firm Eurasia Group. [Automotive News Europe]

Developed by Korean firm Nexon and published by Tencent Games, the mobile version of Dungeon and Fighter has held the top spot on both the free and top-grossing games charts in the iOS App Store in China for ten consecutive days since its May 21 launch. Bloomberg reported on Wednesday that the game’s first-week revenue exceeded $140 million, citing data from consulting firm Niko Partners. “If the game maintains this momentum, it could continue to generate around one billion dollars in annual sales for Tencent Games,” Niko Partners analyst Xiao Feng Zeng said in the Bloomberg report. Dungeon and Fighter was first published by Nexon in South Korea in 2005, featuring fast-paced 2D side-scrolling action gameplay with a focus on cooperative multiplayer dungeon crawling and PVP (player versus player) combat. [Bloomberg]

Tesla is looking to meet regulatory registration requirements for its Full Self-Driving (FSD) software in China and begin testing the latest version of it on Chinese public roads, Reuters reported on Thursday, citing people with knowledge of the matter. If the US automaker manages to gain approval from China’s Ministry of Industry and Information Technology, it may roll out version 12 of the advanced driver assistance system (ADAS) in China this year, and allow owners to subscribe to the service at about $98 per month. The service now charges Chinese buyers a one-time fee of RMB 64,000 ($8,828), according to the report. The news comes after Tesla chief executive Elon Musk met with Chinese Premier Li Qiang in Beijing last month and China Association of Automobile Manufacturers (CAAM), a top auto industry group, confirmed that Tesla’s China-made vehicles are compliant with the country’s data security requirements. [Reuters]

NIO’s power infrastructure network has continued to secure partnerships, as the company said on Thursday that it now offers owners of IM Motors vehicles access to more than 22,500 proprietary fast chargers across China. They can find the nearest NIO fast chargers in their locations and pay for charging by using their own apps, according to an announcement, in a similar arrangement to those with Changan, Geely, and Xpeng, among others. IM Motors, a premium electric vehicle brand launched by China’s SAIC, has four models on sale with a price range between RMB 199,900 and RMB 459,800 ($27,586-$63,452). It reported deliveries of 38,253 units last year and that number was roughly 12,300 from January to April. NIO is also working with several major automakers and state-owned utilities, including GAC and Southern Power Grid, on battery swapping and operates 2,427 battery swap stations nationwide as of Thursday. [NIO announcement, in Chinese]

Chinese ride-hailing platform Didi on Wednesday posted a 14.9% year-on-year growth in first-quarter revenue as total trips increased 30.3% to 3.75 billion. Specifically, the number of trips taken reached record highs of 32.5 million and 8.7 million per day in China and overseas markets, respectively, compared with the 31.9 million and 8.5 million the company achieved in the previous quarter. Didi’s January-March comparable operating profit also improved to RMB 900 million ($124 million), although it reported a net loss attributable to shareholders of RMB 1.4 billion due to a reduction in investment income from its stake in Chinese electric vehicle maker Xpeng. China’s biggest ride-hailing service said last August that it would become a strategic investor in Xpeng with a stake of 3.25%, while the EV maker was set to acquire its smart EV business. The Beijing-based ride-hailer has targeted 10% growth in daily trips in 2024, which refers to the completion of 33 million rides on average per day, according to a March 21 report by Chinese media outlet LatePost. [Didi filing]

ByteDance, owner of TikTok and Douyin, reportedly has major initiatives underway for AI-powered hardware projects, with two key hardware divisions currently driving these efforts, according to a 36Kr report that cited several sources. The report stated that one team is codenamed “D line,” led by Li Haoqian, founder of open wearable stereo brand Oladance, which ByteDance acquired recently. The other group, dubbed “O line,” is a cross-functional team tasked with exploring AI-based consumer hardware products. According to the report, it works closely with ByteDance’s artificial intelligence software team “Flow” on integrated hardware-software AI solutions. The TikTok maker overhauled its VR arm Pico late last year, two years after it was acquired by ByteDance, which was once seen as the company’s strong move into the VR industry with hardware headsets. [36Kr, in Chinese]

At the annual gaming event SPARK 2024, Tencent Games announced the start of limited paid closed-beta testing for the mobile version of Civilization, though it has not disclosed a specific date for its non-wipe tests. The Civilization series, developed by US firm 2K Games, is an iconic turn-based strategy franchise renowned for its immersive gameplay and historical depth. Players take on the role of leaders of civilizations, guiding them through various eras of history, managing resources, developing cities, conducting diplomacy, and engaging in warfare with other civilizations. Tencent’s Aurora Studios acquired the franchise from 2K Games and has collaborated on the development of the mobile version, according to the Chinese gaming giant. The full launch of the title is anticipated for the latter half of this year. [Tencent Games Weibo, in Chinese]

On Tuesday, the Internet Society of China issued draft regulations entitled Requirements for Managing Minor Online Game Service Consumption for public consultation. In China, minors are entitled to game refunds if game operators fail to provide adequate protection, as mandated by laws regarding the online protection of those under the age of 16. The draft represents the first comprehensive consumption management standard in the gaming industry, which is intended to be used to resolve disputes over refunds involving minors and gaming companies. The standards make it clear that gaming companies do not bear sole responsibility: if providers implement anti-addiction measures but a child’s guardian helps them bypass these barriers, the refund may range from 30% to 70% rather than the full 100% as previously mandated. Repeated misconduct can result in full liability for the responsible party, the draft rules say. [Internet Society of China, in Chinese]

On Monday, Honor launched the Honor 200 and 200 Pro smartphones in China, with the 200 Pro model featuring a 6.78-inch OLED display with a 1.5K resolution, Snapdragon 8 Gen 3 chipset, a 50MP main camera with OIS (Optical Image Stabilization), 100W fast charging support, and dual front cameras. The standard version has a similar display but uses the Snapdragon 7 Gen 3 processor and lacks some advanced features such as wireless charging. Both models share a sleek design with curved edges and come in various colors, including black, white, pink, and blue. The Honor 200 series ranges from RMB 2,699 ($372) to RMB 4,499 ($621). In the first quarter, Honor saw double-digit growth in China, capturing a 16.1% market share with sales of 8.9 million units, driven by popular new models and its expansion in offline retail channels, according to Counterpoint Research. [IThome, in Chinese]

Alibaba has signed one of England’s most iconic football players David Beckham as a global ambassador for its international e-commerce platform AliExpress, a high-profile move as the Chinese tech giant looks to further promote the platform to the world. An advertising video featuring Beckham highlights the “free shipping and returns” feature, with the former England international encouraging shoppers to “score more with AliExpress.” Alibaba’s International Digital Commerce Group, which includes platforms such as AliExpress, Lazada, and Trendyol, has experienced the fastest growing path among the company’s six main units in recent quarters. The partnership comes after Alibaba become one of the sponsors of Euro 2024, which runs next month. AliExpress claimed that “Chinese cross-border merchants are set for a wave of traffic” in a WeChat post where the company announced Beckham as a brand ambassador. [AliExpress, in Chinese]

TikTok’s Chinese sibling app Douyin implemented a new “hotspot content” verification mechanism on Monday, in what it said was a move to strengthen community regulation and governance of the platform, which has 800 million daily active users. In a notice posted by Douyin’s security unit on its official WeChat account, the platform said it would ask accounts involved in “trending events of high social concern” to provide proof of identification; failure to do so within 24 hours would see their accounts blocked. The rules also require content creators to clearly label fictional stories, with users who fail to do so and cause misunderstandings among the public subject to penalties ranging from a 30-day ban to an indefinite suspension of their accounts. The moves come after the social media accounts of a top influencer called Maoyibei were deleted from multiple platforms following her widely shared story of a boy and his missing homework books in Paris that was reportedly fabricated. [Douyin, in Chinese]

The China Integrated Circuit Industry Investment Fund Phase III Co., Ltd. (referred to as the Phase III Fund) was registered on May 24, with a capital of RMB 344 billion ($47.5 billion), according to the National Enterprise Credit Information Publicity. The China Integrated Circuit Industry Investment Fund, commonly known as the “Big Fund,” was established in 2014 to support the development of China’s semiconductor industry. The new company’s business includes managing private equity funds, venture capital funds, equity investments, investment management, asset management, and business management consulting. Shareholder information reveals that the Phase III Fund is jointly held by 19 shareholders, including the Ministry of Finance (17.4419%), China Development Bank Capital (10.4651%), Shanghai Guosheng Group (8.7209%), China Construction Bank Corporation (6.25%), Bank of China Limited (6.25%), Industrial and Commercial Bank of China Limited (6.25%), Agricultural Bank of China Limited (6.25%), and Bank of Communications Limited (5.8140%). [Icsmart, in Chinese]

Short video platform Douyin is aiming for an ambitious RMB 4 trillion ($552.3 billion) goal in e-commerce transactions this year, according to local media outlet 36Kr. The figure represents an increase of more than 30% on the transactions completed by the TikTok sibling app in 2023, the report added. Douyin’s online retail business expanded to the trillion yuan scale in just six years, boosted by its huge number of daily active users, and its model of marrying video-sharing with shopping is now well established. The target comes as the ByteDance-owned app continues to eat into the market shares of China’s older e-commerce players. Rival Alibaba, which recorded a GMV of RMB 7.97 trillion from its Chinese consumer-facing businesses in the fiscal year 2022, didn’t disclose figures for the following year, instead saying that its Taobao and Tmall platforms saw mid-single-digit year-over-year declines in order volumes. [36Kr, in Chinese]

Tech bloggers have posted screenshots of Huawei’s new HarmonyOS NEXT interfaces for phones and notebooks on the Chinese social platform Weibo, as the Huawei Developer Conference (HDC) 2024 approaches. The leak is being seen as a signal that the HDC, scheduled for June 21-23, will see the debut of the beta version of Huawei’s self-developed operating system HarmonyOS NEXT for developers. The Chinese tech giant is aiming to expand its HarmonyOS ecosystem to include 5,000 native apps by the end of 2024, with a long-term goal of reaching 500,000. Currently, more than 4,000 apps are integrated. The consumer version of HarmonyOS NEXT is expected to enter into the market in the fourth quarter of this year. [IThome, in Chinese]

Google has chosen TSMC over its long-term partner Samsung to manufacture its self-developed Tensor G5 processor for Google’s next-generation Pixel 10 series smartphones, according to US media outlet Android Authority. A shipping list of Google Tensor G5 samples has been exposed, which directly displays TSMC’s InFo-PoP packaging technology, the report revealed. Android Authority claimed that “LGA” in the list is an abbreviation for Tensor G5, specifically “Laguna Beach,” as Google may use abbreviations to conceal its activities. Companies must declare the contents and value of goods when importing or exporting overseas, and some regions share this information with third parties, which eventually gets listed in various databases, the report explained. [Android Authority]

China’s online retailer JD said on Monday morning that it plans to raise the annual fixed salary for sales and procurement staff to a 20-month package from the current 16-month over the next one-and-a-half years. The move comes days after founder Richard Liu warned employees that the company doesn’t tolerate poor performers who don’t hustle. “The company will always love you if you have good work performance even if you never work extra hours,” Liu said in a recent internal memo. He also noted that staff who prioritize their careers over their personal lives are not his “brothers,” a term Liu frequently uses to refer to his employees regardless of gender. China’s e-commerce market share, previously dominated by Alibaba and JD, is being rapidly eroded by Pinduoduo and Douyin, adding urgency to the need for change within the former giants. [JD, in Chinese]

Volkswagen’s premium brand Audi said on Monday it would strengthen its partnership with China’s SAIC to develop a new electric vehicle platform, a move that would enable the German automaker to reduce time-to-market by over 30% in the Chinese market. The first models built upon the so-called Advanced Digitized Platform will cover the B-class and C-class vehicle segments and hit the market in 2025, according to a statement. SAIC, a state-owned manufacturing partner of Volkswagen and General Motors in China, in July announced a deal with Audi to license EV technologies under its IM Motors luxury lineup. Volkswagen has been working with Xpeng Motors in a similar effort for its namesake mainstream brand. [Reuters, SAIC statement, in Chinese]

On May 17, Huawei released the Star Edition of its Nova 12 Ultra smartphone, featuring the Kirin 9010L processor, an upgrade on the standard Ultra model which is equipped with the Chinese tech giant’s Kirin 9000SL processor. Tech bloggers and smartphone buyers have stated that the Nova 12 Ultra Star Edition displays “equipped with Kirin 9010L processor” when the device is set up. In terms of specs, the 9010L processor in the Star Edition features a combination of two high-speed cores running at 2.19GHz, four mid-range cores at 2.18GHz, and three power-efficient cores operating at 1.40GHz. Compared to the previous Nova 12 Ultra model, the Star Edition sees an improvement in performance, according to local media outlet IThome. The 512GB storage variant is available for RMB 4,799 ($664) and the 1TB storage option is priced at RMB 5,599 ($774). [IThome, in Chinese]

Chinese e-commerce player JD has escalated the country’s on-demand delivery battle as it rebrands its retail service and promises to deliver purchased items in as little as 9 minutes. The company announced the upgrade on Monday on its official WeChat account. The brand new business integrates JD’s previous one-hour delivery service and JD Daojia, and is now named JD Miaosong, meaning products delivered in seconds. The dedicated section for Miaosong is located on the homepage of JD’s main app, with shoppers able to select and buy flowers and cakes, coffees and medicines and with orders of RMB 29 ($4) and over eligible for free shipping. JD’s rivals generally promise delivery within half an hour with their on-demand services at present. [JDJD, in Chinese]

TikTok is testing an option for users to upload videos as long as 60 minutes, although the short video platform told tech media outlet TechCrunch that it does not have immediate plans for a wider launch. The ByteDance-owned app has built its name and popularity on the back of seconds-long videos in recent years, pushing longer form-focused rivals including YouTube and Meta to launch similar features in an attempt to retain their user bases. The 60-minute-long video feature is a signal of TikTok’s challenge to YouTube, and is intended to attract content creators to share more by loosening the time limits on videos on the platform. [TechCrunch]

Chinese game developer Game Science has announced that the standard PC edition of Black Myth: Wukong will launch in China on August 26 at a price of RMB 268 ($38). Based on the classic Chinese tale Journey to the West, the highly anticipated action game is widely seen as having the potential to be the very first AAA title from a Chinese developer. The price, which supports refunds, cloud saves, controllers, and does not include in-game purchases, according to the information on the game page, has therefore been met with a generally positive reaction from Chinese gamers on social media, with some even suggesting that the game feels underpriced. Judging by comments on Chinese social media, most players in China are hoping the game becomes a big critical and commercial success. [Game Science Weibo, in Chinese]

TSMC will not utilize ASML’s most advanced High NA EUV (high numerical aperture extreme ultraviolet) lithography machine for its latest A16 (1.6nm) process, a move that contrasts with that of Intel, which recently announced the assembly of the industry’s first commercial High NA EUV machine. Intel has secured all of ASML’s High NA EUV machine capacity for this year, sources said. The Taiwanese chip manufacturer is expected to use its current EUV equipment for several more years, as the price of High NA EUV equipment exceeds 300 million euros, according to TSMC’s vice president of business development Zhang Xiaoqiang. Zhang claimed that TSMC’s existing EUV machines can support its chip production until the end of 2026, at which time the A16 process technology is expected to be mass produced. [Icsmart, in Chinese]

China’s JD beats market expectations for both revenue and profit in the first quarter of 2023, as earnings grew 7% to RMB 260 billion ($36 billion) compared to a year earlier, and net profit amounted to RMB 7.1 billion, a 12.7% increase. A low-price strategy and continuous discount campaigns throughout the year helped bring the retailer a revenue rebound. During an earnings call on Thursday, CEO Sandy Xu said general merchandise “had a great quarter,” with quarterly growth of 8.6% down in large part to the supermarket segment. Xu revealed that supermarket items recorded double-digit GMV and revenue growth in the first three months of this year, and said she expected it to remain an “important growth driver” for JD in the long run. JD Retail’s operating margin fell 0.5% year-on-year to 4.1%, signaling that the price wars have not significantly impacted the company’s main business. JD’s CFO told investors that the company believes business growth and profitability are “more reinforcing than contradictory.” [JD]

Huawei demonstrated its large model’s text-to-image capability at a press conference on May 10, where an interruption occurred during the demo when Ctrl-C was pressed, revealing a piece of code that included “time.sleep(6).” Some netizens suspected that the generated images were not produced by the model but were manually output as local images after waiting for 6 seconds. This led to widespread discussion about the authenticity of the demonstration on the Chinese social platform Weibo. In response to this incident, Huawei stated on Thursday that the images were generated in real time using an open-source large model. The “time.sleep(6)” code indicates a command to wait for the external open-source model to generate the images in real time, rather than retrieving preset images, according to Huawei. The code used in the demonstration is authentic and will be available on the Huawei Ascend community platform, where developers are invited to use it and provide valuable feedback, the company said. [TechWeb, in Chinese]

On Wednesday, Chinese telecom giant Huawei released the new MateBook 14 at its summer product launch event. The device is the first Huawei laptop to support a stylus. Powered by the Intel Core Ultra 7 processor, the MateBook 14 offers 40W TDP (Thermal Design Power) in its slim 14.5mm body and up to 32GB of memory. The new laptop features TÜV Rheinland eye-protection certification, a low blue-light display, 1920Hz high-frequency PWM dimming, and a 2.8K OLED screen that measures 14.2 inches, with a high screen-to-body ratio of 91%. In terms of AI capability, the device integrates AI models from Huawei’s partners including Baidu’s ERNIE Bot, iFLYTEK’s Spark, and Zhipu AI, enabling various AI-assisted user scenarios including office work, learning, and software development. The price of the MateBook 14 ranges from RMB 6,099 ($845) to RMB 8,499 ($1,178) for different storage configurations. [IThome, in Chinese]

Two Chinese chip-makers, ChangXin Memory Technologies (CXMT) and Wuhan Xinxin, are at the early stages of producing high bandwidth memory (HBM) semiconductors essential for artificial intelligence chipsets, according to a report by Reuters published on Wednesday. China’s leading DRAM (Dynamic Random-Access Memory) manufacturer CXMT has partnered with chip packaging and testing company Tongfu Microelectronics to develop sample HBM chips and has showcased them to clients, Reuters said, citing sources familiar with the matter. Documents from the corporate database Qichacha indicate that Wuhan Xinxin began constructing a factory in February of this year, which is intended to have the capacity to produce 3,000 12-inch HBM wafers per month. CXMT and other Chinese chip firms have also been meeting with semiconductor equipment firms from South Korea and Japan to purchase tools for the development of HBM, sources added. [Reuters]

Tencent’s profit jumped 54% to RMB 50.3 billion ($7.1 billion) in the first quarter thanks to the Chinese tech giant’s so-called “high-quality revenue streams,” chairman and CEO Pony Ma told investors during the firm’s earnings call. The referred to streams include advertising in Video Accounts and WeChat Search, and e-commerce technology service fees. Quarterly revenue landed at RMB 159.5 billion, representing a 6% year-on-year increase. Specifically, online advertising generated RMB 26.5 billion during the period, a 26% increase that made it the company’s most successful unit in terms of revenue growth during the quarter. However, Tencent’s chief strategy officer James Mitchell said ad growth in subsequent quarters of this year is expected to be “less rapid” than in the first quarter. Time spent on WeChat’s TikTok-like video service is now over twice that spent on its social feed Moments, according to Tencent, with users spending 80% more time than last year on their WeChat video accounts as the company battles for attention from China’s vast online population with rivals Douyin (TikTok) and Kuaishou. [Tencent]

Chinese search engine giant Baidu said on Wednesday it expects its key robotaxi business to break even in the fourth quarter of this year and aims to be the first autonomous ride-hailing project to profit by 2025, as planned. The country’s top search engine unveiled its sixth generation self-driving car, a battery-powered multipurpose vehicle costing RMB 204,600 ($28,316), a fraction of its original price. The RT6, a four-seated all-electric van boasting a spacious cabin, manufactured by partner Jiangling Motors, measures 4.8 meters in length with a wheelbase of roughly 2.8 meters. It is powered by a swappable battery pack and equipped with dozens of sensors, including cameras and lidar units, to allow driverless operations. French market intelligence company Yole Développement estimated in 2018 that robocars would have to be priced at no less than $200,000.

Baidu said it plans to deploy 1,000 such vehicles by year-end in the central Chinese city of Wuhan, where it now operates a fully autonomous fleet with hundreds of robotaxis over 3,000 square kilometers (1,158 square miles). The Beijing-headquartered tech company, dubbed “China’s Google,” does not provide a full breakdown of its research and development costs, but chief executive Robin Li told Bloomberg in April 2021 that the firm spent RMB 20 billion on vehicle autonomy in 2020. Li added that the company was determined to invest hugely in self-driving technologies over the next 10-20 years. The latest move comes after news that the Chinese government would allow Tesla to test and operate robotaxis, an idea proposed by its boss Elon Musk during his visit to the country last month, according to a report by China Daily on May 9.

“With decreasing costs and increasing orders, Apollo Go’s unit economics (UE) is nearing break-even, expected to achieve balance in the fourth quarter of 2024 and turn profitable by 2025,” Baidu said in a press release. [TechNode reporting]

Note: This article has been updated to include an announcement released on May 15, which highlighted the unit economics (UE) of Baidu’s autonomous ride-hailing platform Apollo Go, not the company’s self-driving car business, is nearing break-even.

China’s e-commerce giant Alibaba reported an 86% profit slump in the March quarter despite revenue growing 7% from a year earlier, largely due to changes in the valuation of equity investments. Value of goods sold on Taobao and Tmall saw double-digit growth, as did order numbers on the two platforms, driving revenue of the company’s domestic marketplace up 4% to RMB 93.2 billion. Alibaba CEO Eddie Wu said he believed that the strategy of “offering good merchandise at a competitive price while supporting excellent service” had helped the firm’s online GMV growth rate back to double digits. “Increasing customer purchase frequency and enhanced user experience is our number one objective this year,” Wu said on a Tuesday earnings call. The group recorded RMB 221.87 billion in revenue for the three months ended March 31. Within Alibaba’s cloud computing unit, AI-related revenue was a major highlight for the firm with triple-digit growth year-over-year as companies across multiple industries continue to integrate artificial intelligence into their businesses. [Alibaba]

Tencent Music Entertainment (TME) has again recorded a quarterly drop in revenue but a boost to its profits, with a 3.4% earnings drop to RMB 6.77 billion ($937 million) and a 23.9% net profit increase to RMB 1.42 billion in the first three months of this year. This marks the third straight quarter of declining revenues for the Chinese entertainment giant. Revenue from social entertainment services, including livestreaming, slumped by nearly half to RMB 1.76 billion from a year prior, which in turn largely drove the cost of revenues to decrease by 14.8%. The company recorded 113.5 million paid users during the period, a 6.8 million boost in membership that it said was its “largest quarter-over-quarter net increase to date.” In its earnings filing, TME also mentioned it has introduced AI large audio models with the aim of increasing the accuracy of the music promoted to users. [TME]

Chinese phone brand Vivo on Monday unveiled it new flagship model the X100 Ultra, with a 200MP telephoto camera co-developed with Samsung. The X100 Ultra is the first smartphone in the industry to come with a 1/1.4-inch telephoto sensor, the company said, featuring an f/2.67 aperture and an 85mm equivalent focal length. The device also comes with Zeiss T* coating and Zeiss APO (Apochromatic) certification, which are expected to enhance clarity and reduce colour fringing, which can occur along edges of high contrast in an image. In terms of other specs, the X100 Ultra is equipped with a Snapdragon 8 Gen 3 chipset, 6.78-inch E7 LTPO AMOLED display, 5,500 mAh battery, and two-way satellite communication in China. The new phone is priced from RMB 6,499 ($898), which comes with 12 GB of RAM and 256 GB of storage. [IThome, in Chinese]

China’s biggest short video platform Douyin will stop influencers who post content involving politics, economics, law and healthcare, letting third-party advertisers upload commercials to their channels. According to the TikTok sister app’s latest notice to short video channels, the rule will take effect on Wednesday. A U-turn on a previous decision to allow influencers to authorize PR personnel to update their channels, the decision will have a visible impact on channels, and mean influencers make less money than before. ByteDance-owned Douyin said the change “does not affect creators’ other cash or monetization capabilities nor does it end influencers’ creation on the above serious topics” after the rule was misunderstood by the public as meaning the platform no longer supported coverage of political and financial issues. [Jiemian, in Chinese]

Retail employees from China, Australia, Germany, France, Japan, South Korea, and Singapore flew to Apple’s headquarters in California last week for a four-day training session on demonstrating the mixed-reality Vision Pro headset, according to sources from Bloomberg. Apple is expected to expand distribution of the Vision Pro after this year’s Worldwide Developers Conference (WWDC) from June 10 to June 14, although its exact release date in international markets has not yet been announced. Apple earlier reportedly slowing shipments of Vision Pro in the US market amid declining customer interest due to its $3,499 price tag. Apple has yet to disclose international pricing. [Bloomberg]

BYD is continuing to expand its Ocean family of electric vehicles, seeking government approval to bring out a smaller version of its Seal sports sedan, according to information revealed by the country’s Ministry of Industry and Information Technology on May 11. The compact hatchback will measure 4.6 meters in length and 1.5 meters in height with a wheelbase of roughly 2.8 meters, making it significantly larger than its siblings including the RMB 99,800 ($13,795) Dolphin and lower-priced Seagull. The new Seal variant has a lightweight and nimble feel with short overhangs and athletic lines, and could be named the Seal 06 GT, Seal 05 EV, or Seal MiNI, pictures published on the MIIT website showed. China’s biggest EV maker sold 127,323 plug-in hybrid and all-electric Seal vehicles last year, bringing it into fierce competition with rivals’ models including the Zeekr 007 from Geely and IM LS6 from SAIC. [TechNode reporting, MIIT release, in Chinese]

Taiwan-based chip manufacturer MediaTek may partner with US chip giant Nvidia to develop an AI PC processor based on ARM architecture, according to Taiwanese media outlet Economic Daily News, aiming to complete the tape-out in the third quarter of 2024. The new chip may cost as much as $300. Nvidia CEO Jensen Huang is scheduled to visit Taiwan on June 2 for the COMPUTEX (Taipei International Information Technology Show), and MediaTek will also announce details of its collaboration with Nvidia on the AI PC chip next month, the report added. Additionally, ARM, the British semiconductor and software design company, is reportedly planning to launch its own AI chip prototype and establish an AI chip division next spring before entering mass production by handing it over to contractors next fall. [Economic Daily News, in Chinese]

Chery Auto on May 9 introduced the first midsize electric crossover under its mainstream luxury Exeed lineup with both all-electric and plug-in hybrid versions, which the Chinese automaker said would compete with the Tesla Model Y and Audi Q5L. With a starting price of RMB 189,800 ($26,236), the extended-range version of the Sterra ET accelerates from 0-100 km/h (0-62 mph) in 7.8 seconds and travels up to 1,518 kilometers (943 miles) on a full charge and full tank of gas. The all-electric variant of the five-seater, with an 800-volt electrical system and priced between RMB 229,800 and RMB 319,800, has a driving range of up to 760 km and boasts a 475 km additional range on 12 minute fast charging. Chery said the five-meter-long sports utility vehicle could now function by itself on Chinese highways and will be capable of navigating on more sophisticated urban roads in some cities by June. The state-owned automaker has previously hired Tesla’s former lead machine learning engineer, Gu Junli, to lead the development of its advanced driver assistance system. [TechNode reporting, Chery release, in Chinese]

The regional German court has ruled that Chinese tech company Lenovo and its subsidiary Motorola infringed on the patent rights of US firm InterDigital. The court in Munich prohibited both companies from selling devices supporting 4G/5G networks (smartphones and tablets) across Germany. InterDigital is a technology research and development company providing wireless and video technologies for mobile devices, networks, and services worldwide. InterDigital had hoped to provide licensing on FRAND (fair, reasonable, and non-discriminatory) terms, but said Lenovo failed to comply. “Following the court’s finding that Lenovo’s behavior constitutes a hold-out, we hope Lenovo reverses course and finally takes a fair and reasonable license,” commented Josh Schmidt, the Chief Legal Officer of InterDigital. [Icsmart, in Chinese]

Alibaba on Friday opened its new global headquarters in Hangzhou, a combination of office and leisure facilities that total nearly 1 million square meters. The new complex nods to the e-commerce giant’s roots and demonstrates its commitment to its home city of Hangzhou, the capital of Zhejiang province, Chinese media outlets reported. It features gardens, a football field, a 400-meter running track, basketball and badminton courts, and several gyms, and is also equipped with barrier-free facilities, according to the company’s official statement on WeChat. Alibaba’s new campus in Beijing officially went into operation on the same day, with the complex providing work space for 19,000 employees. [Alibaba, in Chinese]

China’s second-largest short video platform Kuaishou is planning to open an office in Riyadh, the capital of Saudi Arabia, soon, according to a report by the South China Morning Post quoting Kuaishou’s chief financial officer Jin Bing. In addition to the Middle East, the TikTok rival is also eyeing expansion in North Africa and Brazil, where Jin said the company has a “great opportunity,” with people there sharing similarities with Kuaishou’s users at home: “people love to watch good quality content, engage with each other, and purchase products or services online.” The report noted that Kwai, Kuaishou’s international version outside of China, has more than 20 million monthly active users in the Middle East and North Africa region at present. The move comes as TikTok, owned by Chinese firm ByteDance, continues its legal efforts to overturn a US law requiring the hugely popular short video app to be sold or face a nationwide ban. [SCMP]

BYD on Friday launched the first midsize battery sport utility vehicle named after a marine animal, targetting young Chinese customers with its flashy design and seeking to compete with Tesla’s Model Y at a price range between RMB 189,800 and RMB 239,800 ($26,268-$33,188). The entry-level Sea Lion 07 EV will have a driving range of 550 kilometers (342 miles) and charge from 10% to 80% in 25 minutes. BYD said its latest EV platform will enable a charging power of 240 kilowatts with most chargers. The vehicle can reach speeds of 225 kilometers per hour (140 mph), powered by what the company claims is the world’s fastest electric motor for production cars, spinning at up to 23,000 revolutions per minute (rpms). The hatchback crossover is similar in size to its sibling, battery sports sedan Seal, in overall body and wheelbase length, but larger than the Dolphin and Seagull battery sedans. [BYD release, in Chinese]

Chinese lithium-ion battery maker CATL and French shipping company CMA CGM will set up a joint venture to explore the potential of creating an all-encompassing solution for greenhouse gas reduction, according to a statement published on Wednesday by CATL. The two companies said they will work closely on various topics related to achieving carbon neutrality, including the development of electric boats and commercial vehicles, as well as logistics and warehousing, without providing specifics. The move is the company’s latest effort to diversify its business beyond battery manufacturing for electric vehicles and to tap into the maritime and aviation transportation sectors. The world’s top battery supplier has been producing semi-solid state batteries to power both civil aircraft and EVs for the past several years. CATL chairman Robin Zeng, who traveled with Chinese President Xi Jinping during his first state visit to Europe in five years, attended a signing ceremony on Tuesday in France. [CATL announcement, in Chinese]

Jiang Hairong, Chief Marketing Officer of Honor China, announced on Thursday that sales of Honor X50 smartphones have exceeded 10 million units in the Chinese market 10 months after the device was launched. The X50 is the first Android device introduced since 2023 to surpass 10 million sales in China, according to Honor. Launched last July, the mid-ranger features the Snapdragon 6 Gen 1 processor and drop-resistant materials, and is priced at RMB 1,399 ($194). In the first quarter of 2024, Honor led the Chinese smartphone market with a share of 17.1%, according to data released by market intelligence firm IDC, which reported around 69.26 million units shipped in total across all brands. [Honor Weibo, in Chinese]

Word has spread in a Huawei app forum that Huawei HiSilicon’s chairman He Tingbo and Huawei Terminal Business Group’s chairman Yu Chengdong issued an internal letter “To Comrades” in which a contingency plan entitled “Tashan Battle” for PC chipsets was revealed. The letter allegedly urged HiSilicon and the Terminal Business Group to bring about swift and high-quality launches of PC products equipped with the self-developed Kirin X series chipset by the end of the year. In response to an inquiry by a Cailianpress reporter on Thursday, Huawei staff said that no such internal document had been received. On Tuesday, the US revoked licenses allowing Huawei to buy PC-related chips from Qualcomm and Intel, according to overseas media, a move that will further tighten export restrictions on the Chinese telecom equipment maker. [Cailianpress, in Chinese]

BYD will introduce to Europe a low-cost electric vehicle, which will be priced at no more than €20,000 ($21,550), based on its Chinese Seagull model, the company’s regional managing director Michael Shu said on Thursday. The Seagull, which currently costs between RMB 69,800 and RMB 85,800 ($9,661-$11,875) and can travel between 305 and 405 kilometers (190-252 miles) on a single charge, was the top-selling small car in China, recording sales of nearly 240,000 units last year. Shu also mentioned the company’s plan to establish a second car factory in Europe in 2025, aside from the first one for passenger EVs currently under construction in Hungary, as BYD aims to “be in a leading position” in the regional market by 2030. The comments come as Chinese President Xi Jinping made his first trip to Europe in five years during May 5-10 and as French finance minister Bruno Le Maire on Monday publicly wooed BYD to invest in car manufacturing in the country. [Reuters]

Chinese e-commerce platform JD is set to kick off its mid-year shopping event at 8 p.m. on May 31, with the company branding it under the theme of “quality and affordability” as price remains a sensitive factor for local consumers. JD has also dropped its presale period for this year’s 618 festival, in a similar move to rival Taobao, with the two online retail giants looking to follow common competitor Pinduoduo’s more straightforward shopping experience. In an announcement made by the Beijing-based company, the shopping spree will kick off with a “10-billion yuan discount day,” and low price-focused activities will continue throughout the sales promotion period, which will last for more than two weeks. [JD, in Chinese]

On Wednesday, Xiaomi CEO Lei Jun shared on the social media platform Weibo that the company has promoted Xu Fei and Zhang Jianhui to senior executive positions at the group. Notably, this marks the first instance where the Chinese phone maker has appointed two female executives simultaneously. Xu Fei is appointed as Vice President and Chief Marketing Officer, while Zhang Jianhui takes on the role of Vice President and Chair of the Procurement Committee. “They are both employees who joined Xiaomi at the beginning of its entrepreneurship, and have grown together with Xiaomi for more than a decade,” said Lei in the Weibo post. Additionally, Xiaomi will establish a Group Strategic Marketing Department to oversee the brand, public relations, and marketing-related work of the company, as revealed by an internal appointment email. [Lei Jun Weibo, in Chinese]

Alibaba hopes to spur e-commerce growth in Mongolia via a joint platform built with local tech company Intelmind, aiming to bring “millions of” China-made goods to consumers in the landlocked country. The partnership will be between Alibaba’s wholesale platform 1688.com and Intelmind-owned retail marketplace Shoppy under the auspices of a new platform, ShoppyHub.mn, according to Intelmind. The company has said it will enable Mongolian shoppers to consolidate multiple purchases into a single order, with packages deliverable within seven to ten days. Alibaba’s expansion into Mongolia comes as it faces challenging circumstances at home and is pouring investment into other potential markets globally. [GoGo Mongolia]

The US has taken the step of revoking licenses that previously authorized companies such as Intel and Qualcomm to supply chips used in laptops and handsets to Chinese telecoms equipment manufacturer Huawei, according to Reuters. Sources said some of the companies received notifications on Tuesday that their licenses were revoked with immediate effect. The US Commerce Department confirmed the revocation of certain licenses earlier in the day, but it refused to specify the companies involved. A spokesperson for Intel declined to comment, while Qualcomm and Huawei did not respond to a request for comment. The action comes after the debut of Huawei’s first AI laptop, the MateBook X Pro, which was launched last month and runs on Intel’s latest Core Ultra 9 processor, the Reuters report said. [Reuters]

Chinese food delivery giant Meituan’s Hong Kong-focused platform KeeTa led the territory’s food delivery market in terms of order volume in March, with its 44% share of total orders surpassing rival Foodpanda for the first time, according to data from third-party analysis platform Measurable AI. However, when calculating overall sales volume, KeeTa’s 36% market share is still slightly lower than Foodpanda’s 39% during the period. The results have encouraged Meituan to “actively evaluate opportunities in other markets,” CEO Wang Xing said in a recent earnings call, following a Bloomberg report that the company is mulling a potential entry to Riyadh, one of richest cities in the Middle East and the capital of Saudi Arabia. [Caixin, in Chinese]

In response to criticism by the European Commission, China’s biggest automaker SAIC said it has “fully cooperated” with the latest EU anti-subsidy investigation launched by the agency. The state-owned manufacturer, along with peers BYD and Geely, was earlier accused of not supplying sufficient information. The comments come as the Commission warned the three automakers that they had failed to satisfy investigators considering whether the bloc would impose higher import duties on Chinese electric vehicle imports, according to a May 3 report by Reuters. SAIC told Reuters it had complied with World Trade Organization and EU rules, but that “commercially sensitive information – such as battery formulation – should not belong to this category.” The China chapter of the EU Chamber of Commerce said the European Commission had used regulatory powers to lay out a series of demands, including multiple rounds of questionnaires and on-site inspections, and query the companies on sensitive corporate issues related to their supply chain. [Reuters]

TikTok and its Chinese parent ByteDance launched legal action against the US government on Tuesday after it passed sell-or-ban legislation targeting the short video app. TikTok argues that the law signed by president Joe Biden in April that forces its Chinese owners to divest in nine months violates the First Amendment of the US Constitution. According to the lawsuit, TikTok said “for the first time in history, Congress has enacted a law that subjects a single, named speech platform to a permanent, nationwide ban,” while arguing that Congress had failed to offer any evidence that TikTok poses the “types of risks to data security or the spread of foreign propaganda that could conceivably justify the Act.” [TikTok lawsuit filing]

Chinese self-driving car startup Momenta is exploring a US initial public offering this year that could raise as much as $300 million, Bloomberg reported on Monday, citing sources familiar with the matter. Momenta, backed by auto giants including General Motors, Toyota, and BYD, has engaged China International Capital Corp., Goldman Sachs, and UBS to assist with its plan, but has not yet confirmed its listing location, the report said. The Suzhou-headquartered company is reportedly making the advanced driver assistance systems Toyota is set to incorporate in its Chinese models. Momenta raised $300 million from General Motors in 2021 and has been working with BYD through a joint venture set up later that year. [TechNode reporting, Bloomberg]

Chinese electric vehicle giant BYD and its peers have received a warm welcome from France as French finance minister Bruno Le Maire said on Monday the government is open to the possibility of the companies establishing their factories in the country. “France welcomes all industrial projects. BYD and the Chinese auto industry are very welcome in France,” Le Maire said at a meeting with a group of automotive business leaders in Paris on the sidelines of a two-day state visit by Chinese President Xi Jinping. In a meeting with French leader Emmanuel Macron on Monday, Xi said claims that state subsidies for electric vehicles provided by Beijing are creating distortions in global markets and trade are false. “China’s new energy industry has made real progress in open competition and represents advanced production capacity. It not only increases global supply and alleviates the pressure of global inflation, but also contributes significantly to global climate response and green transition,” said Xi. EU Commission chief Ursula von der Leyen also joined the two leaders for a meeting, saying Europe “will not waver from making tough decisions needed to protect its market.” Brussels’ anti-subsidy probe into Chinese EV imports, initiated last September, is expected to conclude within the coming weeks. [Reuters]

At the social platform Weibo, tech blogger Digital Chat Station revealed on Monday that Vivo will unveil its latest phone models on May 13, including the Vivo X100s, X100s Pro, and X100 Ultra. The X100s and X100s Pro will feature the Dimensity 9300+ chipset, while the X100 Ultra is expected to sport the Qualcomm Snapdragon 8 Gen 3 processor, according to sources. The flagship boasts a 200-megapixel Zeiss APO (apochromatic) super telephoto lens, labeled as the industry’s largest 1/1.4 bottom telephoto, with an f/2.67 aperture, 22.48mm physical focal length, and the capability to output resolutions of 12,888 x 16,320 in high-pixel mode. Storage options for all X100S models range from 12+256GB to 16+1TB. [Digital Chat Station, in Chinese]

Based on information from the Xiaomi HypeOS source code, Xiaomi is preparing to launch the CIVI 4 Pro Disney Princess Edition in the coming weeks following the release of the standard CIVI 4 Pro version on March 21. This unique edition, inspired by Disney characters, will feature a Disney-themed UI (User Interface) and two exclusive camera watermarks named Snow White and Evil Queen. The Disney Princess Edition will share the same specifications as the standard version, including the Snapdragon 8s Gen 3 chipset, a 6.55-inch AMOLED display with a resolution of 1,236 x 2,750, a 120Hz refresh rate, and a peak brightness of 3,000 nits. Currently, it is expected to be available only in China. [IThome, in Chinese]

Tesla’s senior vice president, Tom Zhu, a longtime head of its China operations and once deemed as the top internal candidate to replace chief executive Elon Musk, is to reprise the position as the vice president of Greater China he held until last August. Multiple bloggers have contended that Zhu has recently resigned from his roles with Tesla in North America and Europe, and expected the Musk’s close associate to boost the US automaker’s growth in the world’s most competitive EV market. Tesla is facing mounting pressure to tackle the challenges from a slew of Chinese big players such as BYD, Geely, and Huawei. It sold 132,420 vehicles to local customers during the first three months of this year, even several thousand units fewer than what it achieved over the same period last year, figures from the China Passenger Car Association showed. The company is also stepping up to localize its so-called “Full Self-Driving (FSD)” advanced driver assistance software, as Musk made an unannounced visit to Beijing on April 28.[TechNode reporting, IT Home, in Chinese]

Luckin Coffee reported a negative operating margin of 1% in the first quarter this year as the escalation of a price war in China’s coffee industry dragged the company down despite its 41.5% revenue growth compared to the same period in 2023. The Chinese coffee chain posted its first quarterly loss in two years, with a RMB 83.2 million ($11.5 million) net loss, versus RMB 564.8 million in profit a year prior. Luckin saw a 68.8% increase in its total operating expenses, with the company attributing the growth to its “business expansion,” including the opening of new stores and investments in branding and promotional activities. Rival Starbucks meanwhile recorded a decline of 11% in comparable store sales in China during the period. [Luckin Coffee statement; Starbucks earnings]

Nvidia and AMD have secured TSMC’s advanced packaging capacity for Chip-on-Wafer-on-Substrate (CoWoS) and System-on-Integrated-Chip (SoIC) technologies for the next two years as they focus on the high-performance computing (HPC) market, according to Taiwanese media outlet Economic Daily News. HPC’s computational power is essential for AI tasks, with TSMC expecting revenue from AI processors to more than double this year. TSMC predicts that the compound annual growth rate of AI chips over the next five years will reach 50%, accounting for over 20% of the chip foundry’s revenue by 2028. Global cloud service providers Amazon AWS, Microsoft, Google, and Meta are actively engaging in the AI server race, leading to a high demand for products from AI chip manufacturers such as Nvidia and AMD, the report said. [Economic Daily News, in Chinese]

Universal Music Group (UMG) will bring its artists back to short video platform TikTok via a new deal, the two companies said in a joint statement, three months after UMG-owned music was removed from TikTok due to the parties having failed to renew a licensing agreement. Shou Chew, chief executive of TikTok, said music was an “integral part” of the platform’s system, and his counterpart in UMG said the new chapter with TikTok would focus on “the value of music, the primacy of human artistry and the welfare of the creative community.” Entertainment giant Universal, home of artists including Taylor Swift and Billie Eilish, previously noted that TikTok revenue only “accounts for 1%” of its total revenue, which UMG claimed was “little.” [Universal Music Group]

The battery casing for the iPhone 16 series will be switched from aluminum-plastic film to stainless steel, with materials supplied by Chinese firms, according to The Wall Street Journal. The WSJ report suggests that the all-steel casing will utilize laser welding technology to enhance battery lifespan by increasing the number of charging cycles. Earlier sources disclosed adjustments in battery capacities for the iPhone 16 series models, as reported by local media outlet IThome. The standard iPhone 16 may bump up from its last generation’s capacity of 3,349 mAh to 3,561 mAh, while the Pro Max version is expected to see an increase from its former capacity of 4,422 mAh to 4,676 mAh. However, the Plus model may decrease from the previous 4,383 mAh to 4,006 mAh. Currently, it remains uncertain whether the adjustments in battery capacity are linked to the change in battery casing. [IThome, in Chinese]

Chinese AI startup Shengshu Technology, in partnership with Tsinghua University, unveiled the country’s latest text-to-video model Vidu last weekend, which it said could generate videos no longer than 16 seconds with 1080p resolution. Vidu is “the first video model globally to make a major breakthrough” since the release of OpenAI’s Sora in February, the Beijing-based company said on its official WeChat post, while adding that Vidu’s performance “fully matches” that of its international counterparts. Shengshu Technology is the latest AI firm touting its ability to build a Chinese program akin to Sora, which is able to produce 60-second-long videos based on prompts. OpenAI has yet to make the program available to the public. [Shengshu Technology, in Chinese]

China’s Ministry of Commerce has expressed serious concerns in response to the Japanese government’s announcement of plans to implement export controls on semiconductors and related items, in an answer to a journalist’s inquiry on the governmental department’s website. A ministry spokesperson highlighted that the semiconductor industry’s global nature and decades-long development have created an interconnected ecosystem. Such measures, which stem from an over-generalization of national security concepts, risk disrupting global supply chains and violating principles of free trade, the spokesperson said. The statement added that China’s Ministry of Commerce urges Japan to reconsider these actions, as they are expected to affect trading relations between Chinese and Japanese companies. [China’s Ministry of Commerce, in Chinese]

Taiwanese semiconductor company MediaTek announced on Tuesday that the Dimensity 9300+ flagship chipset will be unveiled at the MediaTek Dimensity Developer Conference 2024, scheduled for May 7. The Vivo X100S smartphone will be among the first devices to be powered by the flagship chipset, although its specific release date is currently unknown, according to local media outlet IThome. On benchmarking platform Geekbench 6.2.0, the new device achieved a single-core score of 2,229 and a multi-core score of 7,526. The CPU for the Vivo X100S consists of one core clocked at 3.40 GHz, three cores clocked at 2.85 GHz, and four cores clocked at 2.00 GHz, the platform info revealed. The Vivo X100S is expected to feature a 6.78-inch 1.5K 8T LTPO OLED display, IThome reported, and be available in four colors: white, black, green, and silver. [IThome, in Chinese]

Chinese lifestyle sharing social media platform Xiaohongshu has dismissed as “untrue information” reports by local media outlet IPOzaozhidao that it is in the midst of a new round of fundraising that values the company at $20 billion. A previous report by tech outlet The Information in September 2023 said Sequoia China had acquired a Xiaohongshu stake from existing investors, in a deal that valued the firm at $14 billion, a 30% discount compared to the social media app’s $20 billion valuation in 2021. The move saw the well-known venture capital firm join Alibaba and Tencent in betting on Xiaohongshu’s prospects. The social app, now popular among younger users with its search function and sharing features, has stepped up its efforts in e-commerce and advertising services to boost revenues in recent months. [IPOzaozhidao; Shanghai Securities News, in Chinese]

ByteDance has fired 61 employees for violating laws and company policies, citing reasons including bribery and leakage of internal information, according to Chinese media outlets that quoted sources from the tech company. Four individuals face investigation due to illegal acceptance of income from external partners, while the company also found some staff had substantial reimbursement and taxi travel violations. The TikTok owner detailed the case of one of its employees, who lent his worker card to an outsider who then used it to eat at the company’s staff-only cafeteria 14 times, “misappropriating RMB 490 of ByteDance’s assets.” ByteDance said it has always maintained a “zero-tolerance” attitude towards corruption and bribery. In February, Tencent published more than 70 cases of corruption that it had investigated last year, with the company firing more than 120 employees in relation to these incidents. [Jiemian, in Chinese]

Chinese e-commerce platform Temu has set a $60 billion sales goal for this year that would more than triple the roughly $18 billion it brought in in 2023, and is the most ambitious sales goal among its Chinese counterparts, according to a LatePost report. If achieved, the aggressive target set by the Pinduoduo sister app would largely narrow the gap with fast fashion giant Shein, which outpaced Zara in revenue last year by making $45 billion and is chasing 40% growth to $63 billion in 2024. The US market, which accounted for 60% of Temu’s overall transaction volume in early 2023, now makes up 40%, on par with the platform’s European market, as the cut-price goods site ramps up its presence in more countries, according to the LatePost report. [LatePost, in Chinese]

The National Press and Publication Administration of China (NPPA) on Friday released 95 approval licenses for domestic games for April, including 94 mobile games, seven PC games, and one PlayStation console game. April’s 95 licenses are a decrease compared to March’s 107 approved titles, and the 111 and 115 given the green light in February and January respectively. The much-anticipated games in the latest round of approvals include Tencent’s Carbon Island, NetEase’s Broken Land, Sony China’s Lost Soul Aside, Archosaur Games’ Dragon Raja: Gate of Cassell, and Kingnet Network’s The Lost Tomb. Additionally, NetEase’s Diablo: Immortal and Lilith’s Farlight 84 added PC versions on the same day, according to updates on changes in license information from the NPPA. [NPPA, in Chinese]

BMW announced on Friday it will invest RMB 20 billion ($2.8 billion) to expand a production facility in the northeastern Chinese city of Shenyang, as the German auto major aims to begin assembling its upcoming “Neue Klasse” electric vehicles locally in 2026. The amount, which brings BMW’s total investment in its largest manufacturing hub to RMB 105 billion, represents an acceleration of the company’s efforts to prepare for greater EV demand in China, where domestic manufacturers continue to capture market share from their global rivals. Construction of a RMB 10 billion battery plant in Shenyang is also underway, which is set to begin operation with 2,000 new jobs in 2026. BMW reported a 138% year-on-year surge in sales to nearly 100,000 EVs in China last year, which accounted for nearly a third of its total EV sales worldwide. [TechNode reporting]

Chinese consumers are being offered at least RMB 7,000 ($986) in subsidies to trade in their old, less environmental-friendly vehicles for new and more energy-efficient ones, in the latest measure by Beijing to boost car sales amid slowing demand. The new rules will run until the end of this year and apply to those who replace fossil fuel cars that don’t comply with the so-called China-4 emissions standards for new ones with a 2-liter or lower petrol engine. Meanwhile, buyers who trade in such cars or electric vehicles registered before April 2018 for new energy vehicles will get RMB 10,000, seven top government departments jointly announced on April 24. The ministry did not reveal the total budget for the new initiative, but China has roughly 16 million “state-three” cars running on fossil fuels and 2.6 million NEVs registered until 2018, according to estimated figures obtained by Caixin. China posted domestic sales of nearly 3.3 million cars in the first three months of 2024, a 6.2% growth from a year ago, official figures showed. [Caixin, government document, in Chinese]

Air China announced on Friday that it has signed an agreement with Commercial Aircraft Corporation of China (COMAC) to purchase 100 C919 aircraft. The 100 aircraft are planned to be delivered in batches from 2024 to 2031. The total price of the 100 C919 aircraft is around $10.8 billion, according to the latest catalog prices provided by COMAC. The actual transaction price of the deal was lower than the catalog prices, as COMAC offered Air China a significant discount after negotiations, local media outlet IThome reported. State-owned Air China will provide funds for the transaction through its own capital, commercial bank loans, and other financing methods, the report added. [IThome, in Chinese]

Alibaba Cloud’s Emote Portrait Alive (EMO) model, which is able to convert portrait photos into talking and even singing avatars is now available on its Tongyi Qianwen app, in a move the tech giant hopes will bring a wider user base to test its GenAI tool. The tool doesn’t currently support custom audio, but users can choose from more than 80 templates, including hit songs, and generate videos after uploading a portrait photo. In a WeChat post on Alibaba Cloud’s account, the company said EMO had become “one of the most popular AI models after OpenAI’s Sora” after it made EMO-related papers public in late February. The cloud computing unit of Alibaba also added that its audio-driven technology is expected to be applied to fields such as digital humans, movie production, and virtual accompaniment in the future. [Alibaba Cloud, in Chinese]

In the first quarter of 2024, the Chinese smartphone market hit shipments of 69.26 million units, marking a year-on-year growth of 6.5%, according to market intelligence firm IDC. Honor claimed the top spot with a 17.1% market share, while Huawei followed closely with a 17% share. Oppo (15.7%), Apple (15.6%), and Vivo (14.6%) ranked third to fifth, respectively. In the same period, the Chinese foldable smartphone market continued its rapid growth trend to reach shipments of 1.86 million units, which represented an 83% year-on-year increase. In the foldable market, Huawei secured its leading position with a market share of 44.1%, while Honor took second place with a share of 26.7%. [IDC, in Chinese]

Chinese game developer MiHoYo announced on Thursday that it is preparing a PC launcher for its gaming titles. Players will have the option to download and install the MiHoYo Launcher in the next few weeks, the company said. The PC launcher integrates four of MiHoYo’s games – Genshin Impact, Honkai Impact 3rd, Honkai: Star Rail, and Lost Ark – enabling players to download and start the games without the use of other platforms. The MiHoYo Launcher presents an opportunity for the firm to re-activate lapsed MiHoYo PC players by directing them to other games, particularly new releases. This new update may also pave the way for potential in-game purchases in the future, such as direct pop-ups through the MiHoYo Launcher, market research firm DataEye suggested. [DataEye, in Chinese]

ByteDance, TikTok’s Chinese parent, would rather shut down the short video platform than sell, if legal action in response to US government pressure fails, Reuters reported on Friday, citing four sources. The app, with 170 million American users, pushes them a constant stream of popular videos based on proprietary algorithms that Bytedance is loath to sell, said the report, given their core role in the app’s success and company’s operations. Selling the app with its algorithms is seen as “highly unlikely” according to the sources Reuters consulted. Since 2020, China’s Export Control Law has required content-recommendation technology to go through approval before export. Beijing-based ByteDance on Thursday evening denied any intention to sell a majority stake in its US business without its algorithms after tech outlet The Information reported the news earlier. [Reuters]

On Wednesday, TSMC unveiled its A16 (1.6nm) technology for the first time at the 2024 North America Technology Symposium in California, with the Taiwan-based chip foundry announcing plans to begin mass-production with the new manufacturing process in 2026. TSMC claimed that its A16 technology will boost logic density and chip performance by combining advanced nanosheet transistors with backside power rail solutions. Compared to the N2P process, A16 offers an 8-10% increase in speed at the same operating voltage, a 15-20% reduction in power consumption at the same speed, and a density improvement of up to 1.1 times to support data center products, according to the company. [Economic Daily News, in Chinese]

Chinese game publisher NetEase said it will begin the beta testing phase for a mobile version of Octopath Traveler on May 16, with the game scheduled for release on June 30. Octopath Traveler was developed by Japanese firm Square Enix and released in 2018 as a role-playing game featuring retro-inspired pixel art and a unique HD-2D visual style. Square Enix released the second installment in 2023, and the overall series achieved global sales surpassing four million copies. The game features eight major professions: swordsman, dancer, merchant, scholar, apothecary, ranger, hunter, and astrologer. The mobile version is expected to adopt the 8-player team combat mode, allowing for strategic turn-based battles. [IThome, in Chinese]

TikTok’s fate in the US appears doomed as the Senate passed a sell-or-ban bill on Tuesday with 79 to 18 votes. The bill, tied to the US’s foreign aid package, is waiting to be signed into law by President Biden. TikTok’s Chinese parent ByteDance still has the opportunity to battle the ban in court. China’s Foreign Ministry spokesperson did not remark on the latest political move regarding the short video app at today’s regular press conference, saying only that his counterpart in the Ministry of Commerce had previously stated China’s “principled position” that America should stop “unreasonably suppressing other countries’ enterprises” in the framework of a market economy and fair competition. Spokesperson He Yadong also said in March that “China will take all necessary measures to firmly safeguard its legitimate rights and interests”. [TechNode reporting]

Haomo.ai, a self-driving car company backed by Chinese automaker Great Wall Motor, said on Tuesday it raised RMB 300 million ($41.4 million) in a Series B2 financing round involving a Chinese local government. The funding was raised from an investment fund formed by existing investor JZ Capital and the government of the Changxing county in the eastern Chinese city of Huzhou, and comes after it secured RMB 100 million from another local government-backed fund early this year. The company launched an autonomous vehicle platform based on Qualcomm’s Snapdragon Ride chips, according to a Tuesday announcement. [TechNode reporting, Haomo.ai announcement, in Chinese]

Beijing-based text-to-video startup AIsphere has raised over RMB 100 million ($13.8 million) in its latest A2 funding round from Ant Group, the fintech affiliate of Alibaba, less than two months after the company raised more than RMB 100 million. According to Chinese media outlet LatePost, which cited people close to Ant, the Alipay owner has made the move as part of a strategy to add stand-out Chinese AI ventures such as ZhipuAI and Moonshot AI to its investment portfolio, while also developing its own AI foundation model. Founded last April by Wang Changhu, the former vision technology lead at ByteDance, AIsphere has touted plans to catch up with OpenAI’s Sora within three to six months. PixVerse, the firm’s Sora-like tool, has seen monthly traffic exceed 1.16 million following its launch in January, figures from third-party analyst platform SimilarWeb show. [LatePost, in Chinese]

Chinese startup Momenta will develop autonomous driving platforms based on Qualcomm’s Snapdragon Ride chips, which the companies said will bring the same advanced driving capabilities to mainstream models priced between RMB 100,000 and RMB 200,000 ($13,800-$27,600) as their more premium offerings. A number of gasoline cars and new energy vehicles will be capable of handling lane changes on Chinese highways and complex urban scenarios and driving themselves into pre-booked parking spots using the technology, according to a Tuesday announcement. The US chip designer has recently been partnering with auto majors including General Motors and Toyota, both of whom are among the major investors in Suzhou-headquartered Momenta. The Snapdragon Ride processor was designed to handle all assisted driving functions on a system-on-chip rather than on different chips, making it cost-competitive against Nvidia’s Orin chips, a mainstream choice for automakers. [TechNode reporting, Qualcomm announcement, in Chinese]

Huawei on Tuesday launched a redesigned M5 compact crossover, the first model under the Aito lineup with manufacturing partner Seres. The Chinese tech giant billed the new vehicle as more spacious, better equipped, and with faster acceleration than the Tesla Model Y at a competitive price tag. The extended-range hybrid versions cost between RMB 249,800 and RMB 279,800 ($34,472-$38,612), putting them in the same price range as Li Auto’s newly-launched L6, but with a longer driving range of 1,440 kilometers (895 miles) on a full fuel tank and a full charge. The all-electric M5 is priced at RMB 269,800, nearly RMB 20,000 higher than the base-version, China-made Model Y. And yet, the company said it has a driving range of 602 km based on City Light Test Cycle (CLTC) standards, compared with the 554 km range achieved by Tesla. During a press conference in Beijing, Richard Yu, Chief Executive of Huawei’s Consumer Business Group, also unveiled Stelato, a new electric vehicle brand together with Chinese carmaker BAIC, saying the first model, the S9, will be showcased at the city’s biannual auto show later this week. [TechNode reporting, Huawei release, in Chinese]

Tech blogger Digital Chat Station revealed on Chinese social media platform Weibo yesterday that Huawei’s next-gen flagship Mate 70 series smartphones will feature main cameras equipped with domestically-produced CIS (Complementary Metal-Oxide-Semiconductor Image Sensor) chips from OmniVision Technologies. The standard version is expected to be equipped with the OV50H, while the premium version will feature the OV50K. The OV50K, a new image sensor produced by OmniVision this year, features a large 1/1.3-inch sensor and supports LOFIC (Lateral OverFlow Integration Capacitor) technology that enhances image quality by reducing noise and improving detail in low-light conditions. The Mate 70 series will debut the new Kirin 5G chipset and is set to launch in the latter half of this year, according to local media outlet Icsmart. [Icsmart, in Chinese]

TeTencent Games said on Monday it will launch a mobile version of Dungeon and Fighter on May 21, a game seven years in development, after the Chinese tech giant obtained approval from China’s National Press and Publication Administration in February. Developed by Korean company Nexon in 2005, multiplayer online action role-playing game Dungeon and Fighter is one of the most-played and highest-grossing video games of all time, with over 850 million players worldwide and over $22 billion in revenue as of June 2023, according to Nexon. Shares in Tencent rose over 4.5% on Monday morning. Tencent has now opened pre-registrations for the iOS version of the game. [Tencent Games, in Chinese]

Shares of Chinese electric vehicle maker Li Auto fell as much as 8.3% in Hong Kong on Monday and were nearly 5.6% lower on the Nasdaq, reflecting investors’ concerns that its first official price cuts will put pressure on profit margins. The company on Monday slashed prices by up to RMB 20,000 ($2,760) on its three extended-range hybrid vehicles, namely the L9, L8, and L7. Meanwhile, its first all-electric model, the Mega van, now costs RMB 30,000 lower at RMB 529,800 ($73,112), less than two months after its launch on March 1. Additionally, customers who just had their 2024 models delivered will also get the premium refunded, which could impact the firm’s cash flow as the startup delivered 80,400 vehicles during the first three months of this year. Tesla’s stock also tumbled 4% on Monday after its latest price cuts in several markets including the US, China, and Germany over the weekend. [TechNode reporting, Reuters]

Alibaba’s cloud computing unit will offer free training, inferencing, and deployment services based on Meta’s new Llama 3 open-source model for a limited period to local enterprises and developers, Alibaba Cloud said on Monday in a WeChat post on its official account. The temporarily free solution will eliminate computational power costs for model development and invocation, according to the post, and be available on Alibaba Cloud’s Bailian, an application development platform launched last October at the Apsara Conference 2023. The move comes just days after Meta unveiled its newest foundation model last week. Alibaba’s “model-as-a-service” platform ModelScope has added Llama 3 “immediately”, the company said. [Alibaba Cloud, in Chinese]

Amid recovering demand and the end of inventory adjustments, global PC shipments increased around 3% year-on-year in the first quarter of 2024 to reach 57.1 million units after eight consecutive quarters of decline, according to market research firm Counterpoint Research. In the first quarter, Taiwanese PC maker Lenovo secured the top spot in terms of global PC shipments with a 24% market share, reaching 13.7 million units, up by 8% year-on-year. The other four leading brands were HP (21% market share), Dell (16%), Apple (14%), and Acer (11%). Counterpoint predicts that 2024 will mark the advent of AI PCs (including desktops and laptops), with 45% of new laptop shipments this year predicted to feature AI functionality. [Counterpoint Research]

The US House of Representatives voted 360-58 on an updated bill on April 20 to force Chinese firm ByteDance to sell its short video app TikTok or see it banned. The bill is now expected to go to the Senate this Tuesday. The TikTok bill is part of a $95 billion foreign aid package for Ukraine, Israel, and other US allies, and extends the deadline for ByteDance to sell TikTok from six months to nine months compared to a similar bill passed in March. The short video platform said in a statement that the House is “using the cover of important foreign and humanitarian assistance to once again jam through a ban bill,” which would “trample free speech” for 170 million Americans. [TechNode reporting]

FIMI, a subsidiary of Xiaomi that specializes in producing drones and related accessories, recently launched the FIMI Mini 3 drone for the global market, featuring a Sony 1/2-inch 48MP CMOS sensor and a lightweight of 249g. Several third-party retailers have listed the domestic version of the Mini 3 drone on e-commerce platforms, priced at RMB 1,999 ($276) for a single battery and RMB 2,299 ($318) for dual batteries. The drone supports 4K videos at 60 frames per second, 8K time-lapse photography, and a maximum remote control transmission distance of nine kilometers. The three-axis mechanical gimbal guarantees stable and smooth shots, even in windy conditions, according to the company. Additionally, it provides advanced safety features such as GPS tracking for worry-free flying. [FIMI]

China’s Ant Group, Baidu, iFlytek, and Tencent joined US AI firms including OpenAI and Meta in working on two global GenAI and LLM-focused standards which were published by the United Nations on Tuesday. The “Large Language Model Security Testing Method” and “Generative AI Talent Development Framework” documents were presented during the 27th United Nations Science and Technology Conference. The four participating Chinese companies have all rolled out their own AI foundation models and are seeking to use the booming technology to transform businesses. The two documents represent the first international standards released by a non-profit organization in the area of large models, and signify collaboration between global AI companies on safety assessment and testing. [Ant Group, in Chinese]

An industry-wide price war in the Chinese car market has escalated to an unsustainable level, which has been ongoing for more than a year and could pressure some automakers to slash prices by another 20-30% in 2024, according to the head of Bosch’s China operations. It is “unhealthy” that businesses are being drawn into repeated price cuts, which has elevated every company’s losses or squeezed their profits and could result in reduced efforts on new technologies, David Xu, president of Bosch China, told reporters in Shanghai on Thursday (our translation). The company is trying to make room for more price cuts in China following clients’ requests, but the situation can not last much longer, Xu added. The German parts supplier generated €91.6 billion ($97.7 billion) in revenue with an adjusted margin of 5.3% in 2023, and reaffirmed its long-term profit margin target of at least 7% during its annual press conference on the same day. [TechNode reporting, Bosch release]

China’s Li Auto on Thursday introduced its smallest model ever: an extended-range hybrid crossover that it hopes will contribute a large portion of its total sales this year. The move comes just weeks after the electric vehicle maker witnessed a disappointing launch of its first all-electric model. The L6 midsize sport utility vehicle measures 4.9 meters in length and spans a 2,920-millimeter-long wheelbase, while carrying an affordable lithium iron phosphate (LFP) battery pack, which enables a driving range of 1,390 kilometers (864 miles) on a full charge and tank. By comparison, all its larger siblings, including the L7, L8, and L9, are powered by more energy-dense, cobalt and nickle-based battery packs, and most variants come with a 15.7-inch rear display which the company removed from the L6.

Priced from RMB 249,800 ($34,497), the five-seater targets younger and less affluent Chinese families, and could face big competition from the Aito M7 and the new M5, as it measures between the two Huawei-developed models in size and lands at a similar price. Huawei-backed Aito has delivered more than 120,000 units of the revamped M7 since it went on sale last September, and said on Wednesday it has received more than 10,000 reservations for the redesigned M5, which will officially hit the market next week. Li Auto expects the L6 to achieve monthly deliveries of more than 30,000 units, and has cut its annual sales target by 20% to 640,000 units at most for this year, after it got a poor reception for its Mega battery van. [TechNode reporting, Li Auto release]

China’s food delivery company Meituan has appointed Senior Vice President Wang Puzhong as CEO of its new core local commerce business, marking the first time the firm has had two chief executives. The core business integrates Meituan’s in-store and in-home business groups, as well as the main platform’s basic research and development operation, according to an internal memo signed by Meituan CEO Wang Xing on Thursday. The recent update marks the company’s fourth restructuring in less than three months and grants the consolidated unit, announced in February, its formal name. [Jiemian, in Chinese]

In the first quarter, China’s chip production surged by 40% year-on-year to reach 98.1 billion units, a sign that China’s mature process chip capacity is rapidly expanding, despite constraints imposed by the US on advanced processes, according to the South China Morning Post. The National Bureau of Statistics announced on Tuesday that integrated circuit production in China increased by 28.4% in March alone compared to the same period last year, reaching 36.2 billion units. China’s integrated circuit production growth partly stems from strong demand in the new energy vehicles sector, the report said. In the first quarter, China’s production of new energy vehicles increased by 29.2% to 2.08 million units, while smartphone production grew by 16.7% during the same period. [South China Morning Post]

Volkswagen and Xpeng Motors have inked a deal to develop a high-performance electrical/electronic architecture that will underpin upcoming China-made, VW-branded models starting 2026, the companies said on Wednesday. The agreement is an expansion of a partnership that kicked off last year with a focus on the development of two new VW models featuring Xpeng’s autonomous driving capabilities scheduled for launch in 2026 in China. The China Electrical Architecture (CEA) set-up will feature 30% fewer electronic control units than Volkswagen’s previous systems, allowing the German automaker to lower the cost for its China-developed platform by 40% compared to its German-developed MEB platform. Volkswagen and Xpeng also said in February that they will start sourcing vehicle components together to reduce costs. Xpeng’s shares rose 3.8% as of Wednesday’s market close. [Volkswagen announcement]

Japan’s Honda Motor said on Tuesday it is introducing a new electric vehicle brand in China, and will use components from local companies including CATL, Huawei, and iFlyTek as it looks to adapt to significant changes in the highly competitive Chinese car market. The upcoming new models under the Ye series will be equipped with Huawei’s xScene liquid crystal display (LCD) panels and the two companies are exploring more potential collaborations, according to Igarashi Masayuki, head of Honda’s China operations, financial media outlet Caixin reported. The Japanese carmaker said it has also partnered with artificial intelligence firm iFlyTek in order to bring advanced conversational AI capabilities into its cabins, while being open to more joint efforts with Chinese companies in other fields such as autonomous driving. In a similar move, Toyota has reportedly reached a deal with Huawei to develop assisted driving functions built upon the latter’s computing platform for its Chinese models. The first two models under Honda’s Ye series will be launched later this year, followed by another four by 2027, and will target a more premium segment than the existing e:N lineup, as part of the firm’s plan to sell only EVs in China by 2035. The company’s sales declined 10.1% to roughly 1.2 million units last year and it is planning to cut vehicle output by 20% in China, Nikkei reported last month. [Honda announcement, Caixin, in Chinese]

Nvidia’s use of TSMC’s Chip-on-Wafer-on-Substrate (CoWoS) packaging for its new Blackwell platform products has led to the Taiwanese manufacturer ramping up its production capacity for 2024. Nvidia’s latest Blackwell platform products include the new B200 GPU (Graphics Processing Unit) and the GB200, which integrates the Grace CPU (Central Processing Unit), and all use high-precision CoWoS packaging from TSMC. CoWoS packaging is a technology that integrates multiple chips on a single substrate to improve performance and efficiency in semiconductor devices. The GB200 is expected to ship more than one million units in 2025, representing around 40% to 50% of Nvidia’s high-end GPU shipments, according to supply chain sources. TSMC is currently increasing its CoWoS production capacity, with estimated monthly capacity expected to near 40,000 units by the end of the year, an increase of over 150% compared to 2023. [Icsmart, in Chinese]

BYD on Tuesday unveiled the first supercar under its premium off-road electric vehicle brand called Fangchengbao, which promises ultimate performance and luxury with bold design treatments — the latest example of Chinese automakers going upscale and competing in the high-end segment. The all-electric concept hypercar, called Super 9, features a space shuttle-inspired cabin with carbon fiber racing seats as standard, as well as a futuristic design without a windsheld, making the two-seater an open-top model. Wolfgang Egger, head designer at BYD and formerly a chief of design at Audi, said during a livestream event that the interior was “one of the best places in the world where you can experience the highest level of emotion and speed.” Further technical specs and pricing details were not disclosed at the event, although the automaker said it will showcase the full lineup including the Bao 5, and two other upcoming offerings — a flagship plug-in hybrid off-roader and an all-electric concept crossover — at this year’s Beijing Motor Show next week. China’s EV giant officially launched its first electric sports car, the Yangwang U9, at a price tag of RMB 1.68 million ($233,352) in February and is set to begin delivery of the vehicle by the middle of this year. [TechNode reporting, BYD announcement, in Chinese]

The Ministry of Industry and Information Technology of China (MIIT) has released industry standards for cross-platform interconnectivity in domestic smart home devices, effective from July. The China Academy of Information and Communications Technology, Huawei, Oppo, Xiaomi, China Telecom, Alibaba, Honor, TCL, Midea, and Haier were consulted in the drafting of the new regulation. The standard specifies unified access process and technical requirements for smart home devices, in an effort to encourage cross-platform access and certification, according to a statement by MIIT. [IThome, in Chinese]

Stellantis-brands Maserati and Alfa Romeo are among the potential partners to China’s Chery Auto in order to acquire advanced Chinese electric vehicle platform technology for their upcoming battery cars, a person with knowledge of the matter told National Business Daily, without revealing further details. The news comes a day after Chery’s chairman Yin Tongyue revealed during a livestream event on April 14 that the firm was in ongoing negotiations with two European premium car brands for licensing its EV platform, with one of them edging close to a deal. Yin also confirmed that the state-owned automaker has acquired a production facility in Spain hoping to become “a corporate citizen” in Europe. The Spanish government told Reuters last week that it was confident about reaching a deal in the coming days, which would allow Chery to produce vehicles at a former Nissan plant in Barcelona. Wuhu-headquarted Chery is already a manufacturing partner of Jaguar Land Rover in China. [National Business Daily, in Chinese]

On Monday, Huawei announced its new Pura 70 series smartphones, which were previously expected to be named the P70 series. The Chinese telecom giant has not yet disclosed the release date for the new devices, but tech media outlet IThome reported that a member of sales staff at a Huawei store in Beijing had claimed that the series is expected to arrive in store around April 18. The Huawei Pura 70 series smartphones feature a triangular camera island design on the rear, according to the company’s video of the new range posted to the X-like social media platform Weibo. The series will include four models: Pura 70, Pura 70 Pro, Pura 70 Pro+, and Pura 70 Ultra, according to Weibo tech blogger Digital Chat Station. [IThome, in Chinese]

In the first quarter of 2024, global smartphone shipments increased by 7.8% to 289.4 million units compared to the previous year, according to market intelligence firm IDC. This marks a third consecutive quarter of growth, signaling a recovery for the smartphone market after some tough years, the report analyzed. The top five smartphone brands in the first quarter are Samsung (20.8% market share), Apple (17.3%), Xiaomi (14.1%), Transsion (9.9%), and Oppo (8.7%). Xiaomi’s 40.8 million units shipped marks a 33.8% year-on-year increase, while Transsion’s 28.5 million units shipped can be considered a surge: up 84.9% year-on-year. However, Oppo saw a decrease in shipments to 25.2 million units, down 8.5% year-on-year. [IDC]

Open-source models “make little sense” according to Baidu CEO Robin Li in an internal company memo in which he argued that closed-source models have stronger capabilities, Chinese media outlets reported on Weekend. As one of the bases for supporting this statement, Li argued that open-source made it hard to understand “why the parameters are the way they are.” More importantly, Li said keeping the models closed was crucial for “a viable business model.” “Being closed source allows us to make money, and only by making money can we attract computational resources and talent,” Li said. Li’s comment comes as more models are made open source to the general public. [Caixin, in Chinese]

Chinese electric vehicle maker Li Auto said on April 13 that it has no plans at the moment to begin selling plug-in hybrid electric vehicles (PHEVs) in Uzbekistan, adding that the images showing its executives signing agreements with a dealership are fake. The company has reported the case to the police and did not provide further details, pending the outcome of the investigation, according to a statement posted on the Chinese microblogging platform. Images circulated on Chinese social media also show a group of unknown people visiting Li Auto’s production facility in the eastern Chinese city of Changzhou and briefly posing for photographers at the gate of the factory. Li Auto told the Chinese media outlet Caixin in March that it has started hiring staff for its local sales and service teams in Dubai, with plans to begin direct sales and vehicle delivery in the Middle East in the fourth quarter of this year. A dedicated after-sales service network will be set up by June, as individual dealers have been reselling the company’s cars in the region. [Li Auto statement, Caixin, in Chinese]

Tencent Cloud said an 87-minute-long outage affecting customers in 17 regions worldwide last Monday was caused by cloud API anomalies, the latest among China’s internet giants’ cloud service crashes that impacted dozens of products. “The service failure was due to insufficient consideration of the forward compatibility of new versions of the cloud API service and insufficient gray-out mechanisms for configuration data,” Tencent’s cloud computing unit said in a statement posted on its official WeChat account on April 14. The frequency of cloud glitches, according to the local media agency Caixin, which cited an industry insider, is a result of layoffs in the sector over the last two years. Rival Alibaba Cloud suffered two consecutive disruptions in a month last November, each lasting more than two hours with wider impacts globally. [Tencent Cloud; Caixin, in Chinese]

Huawei announced today that the Huawei P series smartphones will be renamed to Huawei Pura, with the upcoming P70 expected to become the first product in the new Pura series. Launched in 2012, the Ascend P1 was the first smartphone model in the P series. The Pura series will carry on the tradition of the P series by offering aesthetic design and dependable imaging capabilities, according to the company. Last week, photos of the back of the Huawei P70 began spreading on the X-like social platform Weibo after Huawei’s spring product launch event, even though Huawei did not unveil it during the event. Photos from online sources revealed a triangular camera island design, equipped with one large and two small camera modules. [Huawei Weibo, in Chinese]

China’s National Radio and Television Administration has required short web dramas must submit to censorship before airing in online platforms, in a strict new regulation targeting the popular content format. Dramas that have not been filed are prohibited from distribution from June. 1, according to local media agency Caixin. Data from third-party data analysis platform iiMedia Research shows the market for short online dramas almost reached RMB 40 billion last year, and is expected to land RMB 100 billion a year by 2027. Months before the new rule was introduced, more than 25,000 of China’s short online shows were removed from public channels for reasons of violent or sexual content. [Caixin, in Chinese]

Huawei has slashed the prices of its Luxeed S7 electric sedan by as much as 7% only five months after the launch of the first joint model with partner Chery Auto, as the Chinese technology giant looks to lure back customers following delivery delays. The existing premium versions of the S7 will cost consumers RMB 20,000 less, giving them a price tag of between RMB 269,800 and RMB 329,800 ($37,279 and $45,569). The entry-level model’s price remains unchanged at RMB 249,800 with the driving range improved by 28% to 705 kilometers (438 miles). The companies have also introduced a new top-end car with a range of 751 km on a single charge, priced at RMB 349,800. The news comes after long-time rival Xiaomi has continued to garner attention with its first EV model at the competitive starting price of RMB 215,900. The model secured almost 89,000 reservations in the first 24 hours after its launch on March 28. During a press conference on Thursday, Huawei and Chery said they were now ready to begin vehicle delivery at scale, after customers voiced frustrations over unexplained and months-long delivery delays caused by a challenging production ramp-up process early this year. [TechNode reporting]

Meituan has pushed further restructuring in its core food delivery unit with an announcement on naming younger people to management level, in the company’s latest round of changes this year as it looks to adapt to increasing external competition. The Chinese food delivery giant has eliminated the direct-business division as part of the adjustment, bringing in a city-focused model to support operations development based on specific cities’ characteristics. Meituan has also established a separate department to better serve nationwide chain stores. The company recorded a 25.8% year-on-year rise in annual revenue to RMB 276.7 billion last year, with its average daily takeout order volume amounting to 55 million in 2023, which was significantly short of CEO Wang Xing’s goal of averaging 100 million units per day by 2025. [36Kr, in Chinese]

China’s online marketplace JD will invest RMB 1 billion ($138 million) in cash in an attempt to incentivize short video creators and content agencies as the e-commerce player eyes the content form as a way to retain consumers’ attention on its shopping platform. Announcing the move, the company said it is in the process of “incubating top-tier influencers,” with plans to cultivate 100 star influencers by year-end. While rivals Taobao, Douyin, and Kuaishou have successfully cultivated highly-popular livestreamers, JD is a latecomer to the booming field. JD said qualifying influencers covering certain categories, including electronics, home appliances, fashion, and health, will be able to receive weekly bonuses of up to RMB 30,000. [JD announcement]

Blizzard China issued a letter to Chinese players on Wednesday confirming the restoration of their previous account data after announcing the return of Blizzard games to the Chinese market this summer. The company said technical preparations for its return would take some time, including rebuilding server facilities and recovering data. Players’ account data will be effectively recovered when the servers are activated, the company said. Blizzard players were warned against using unprotected accounts or engaging in data trading, the letter said. The Blizzard Chinese server has already opened reservations, and is preparing various e-sports events. [Blizzard China, in Chinese]

Jack Ma said in an internal Alibaba memo on Wednesday that the company he co-founded has “returned to healthy growth” since new chairman Joe Tsai and CEO Eddie Wu came to power. Ma also shared his support for the company’s continued reforms. In a 1,000-word post titled “To Reform, To Innovation,” Ma first thanked Tsai’s “courage and commitment” after the chair publicly admitted on a recent podcast that Alibaba had lost focus on its real customers in recent years. The famed entrepreneur also praised the new leadership for its “admirable courage and wisdom” to lead one of the biggest reorganizations in the e-commerce giant’s history. Ma’s memo comes after Alibaba canceled its cloud computing unit and logistics arm Cainiao’s public listing plans within the space of a year. He also urged employees to think about what e-commerce could look like in the next three or five years, emphasizing that “the AI era has just arrived.” [Jiemian, in Chinese]

On Wednesday, Xiaomi sub-brand Redmi hosted the launch event for its new Turbo 3 series and unveiled a new Redmi Turbo 3 Harry Potter Edition. It took nearly a hundred senior Harry Potter fans a year to develop the new Harry Potter Edition of the Turbo 3, Redmi claimed. The device features the Hogwarts school crest on the back, along with a Deathly Hallows boot image, customized magic-inspired charging animation, and wallpapers themed around the four houses of Hogwarts. The Harry Potter Edition boasts the same hardware configuration as the standard version, including the Snapdragon 8s Gen 3 chipset and 16GB+512GB storage. The special model, priced at RMB 2,699 ($373) on Xiaomi’s e-commerce platform, sold out during the pre-sale phase. Wang Teng, the brand manager of Redmi, revealed that restocks will be available on the first day of sale on April 15. Last year, the company launched the world’s first Harry Potter-branded phone, the Redmi Note 12 Turbo. [Redmi Weibo, in Chinese]

Blizzard China announced today a renewed game publishing deal with NetEase to re-introduce Blizzard games to Chinese players. Blizzard China posted a new group photo on the microblogging platform Weibo, in which NetEase CEO Ding Lei, Blizzard President Johanna Faries, and Microsoft Gaming CEO Phil Spencer were featured. Blizzard’s games will return to the Chinese market in the summer of 2024, while Microsoft Gaming aims to introduce NetEase’s new games to Xbox consoles and other platforms by forming a strategic partnership with the Chinese gaming firm. The renewed publishing agreement covers Blizzard’s flagship games World of Warcraft, Hearthstone, Overwatch, Diablo and StarCraft. Last January, Blizzard and NetEase ended their 15-year relationship after a bitter dispute about intellectual property control. [Blizzard China, in Chinese]

Intelligence in Motion (IM), a premium electric vehicle brand launched by China’s biggest automaker SAIC and e-commerce giant Alibaba, has apologized repeatedly for an incorrect mention of vehicle specifications of the Xiaomi SU7 during a press event on Monday. The four-year-old EV brand was severely criticized on Chinese social media after taking aim at Xiaomi during the launch event for the IM L6, wrongfully claiming that the top-end SU7 uses cheaper IGBT transistor chips for its powertrains. In fact, the smartphone giant uses more energy-efficient silicon carbide transistors. In a statement published on the microblogging platform Weibo on Tuesday, IM said it had no intention of smearing Xiaomi maliciously, while admitting it was “incapable” of challenging the electronics brand which has created a “massive” volume of traffic for its first car. A day earlier, Xiaomi blasted at IM on Weibo, calling its comments “unreasonable, illegal, and shameful” and saying it had rejected an informal apology made by a senior IM executive. SAIC established the IM brand with Alibaba and battery maker CATL in 2020 and delivered 38,253 vehicles under the lineup last year. [TechNode reporting, IM statement, in Chinese]

Several Huawei stores in Beijing have informed Sina Tech that they have not received any notification regarding when the Huawei P70 series smartphones will be released. However, pre-orders for the Huawei P70 series have kicked off, with no deposit required for now. Customers can choose to register their information in advance, and they will be notified once the specific configurations and colors are available. The previous generation P60 series was launched on March 23, 2023. Speculations began circulating online about the delayed release of the Huawei P70 series this March; at that time, a Huawei insider responded that Huawei had not announced any release date to the public. [Sina Tech, in Chinese]

Chinese flying car manufacturer EHang has received a production certification (PC) for one of its passenger drones from local regulators, with plans to begin piloting its air taxis in the country’s southern cities of Guangzhou, Shenzhen, and Zhuhai later this year. The production approval, issued by the Civil Aviation Administration of China (CAAC), is the first of its kind in the global electric vertical takeoff and landing vehicle (eVTOL) industry, paving the way for serial production, the company said in an announcement. The news comes months after the Guangzhou-based startup secured an airworthiness “type certificate” from Chinese authorities for its EH216-S model flying taxi. This will help the company get similar certificates for commercial operations in overseas markets in the US, Europe and Southeast Asia, CNBC reported in October citing chief executive Hu Huazhi. China has prioritized the so-called low-altitude economy as a strategic emerging industry and expects the sector to be worth RMB 2 trillion ($278 billion) by 2030 from last year’s RMB 500 billion, according to Han Jun, a deputy head of the CAAC. [EHang announcement]

Meituan Select and Duoduo Maicai, the two main players in China’s community group-buying field, have both seen narrowed losses last year as cost-reducing measures continued. According to the local media outlet LatePost, the two participants have shifted their priority goals to profitability instead of chasing market share, as the possibility of achieving significant growth like in past years has diminished. The report said Meituan Select plans to limit losses to between RMB 10 billion and RMB 12 billion in 2024, while for its part, PDD’s grocery unit hopes to cut labor costs in half to around RMB 2 billion. [LatePost, in Chinese]

Toyota has reached a deal with Huawei on the use of key components from the Chinese tech giant’s mobile data center (MDC) platform for enabling autonomous driving functions on its locally-made electric vehicles, people familiar with the matter have told Chinese media outlet Xinliu Car. The partnership will be limited to the Chinese market only and will not involve global sales, with BYD Toyota Technology Co., Ltd (BTET), a 50-50 joint venture established betwen Toyota and BYD in mid-2020, owning the project, sources said on Tuesday. The Japanese automaker was previously reported to be considering incorporating Huawei’s self-driving technologies into its global models, and the two companies may announce that plan as early as the Beijing Motor Show later this month, according to a report by Tencent News. Meanwhile, autonomous driving startup Momenta will reportedly provide software services for the project. The company is a major supplier to BYD and raised $500 million in a Series C funding round from auto majors including Toyota announced in March 2021. [Xinliu Car, Tencent News, in Chinese]

Alibaba Cloud has slashed prices of its core computing, storage, network, database, and big data products in international markets by as much as 59% amid surging AI demands, the company announced on Monday. The cuts come just one month after it offered similar discounts for users in China, as the cloud service provider attempts to lure customers to build large language models and applications based on its products. “We will continue to reduce cloud computing cost as the world is at a critical juncture in the transition from traditional computing to AI computing, where the vast majority of computing takes place on public cloud platforms,” said Yuan Qian, president of Alibaba Cloud’s smart international division. Alibaba chairman Joe Tsai revealed in a recent interview that the US’s curbs on advanced chips may still “hurt” the company’s cloud business and its ability to offer high-end computing services in the medium term. [Alibaba Cloud, in Chinese]

Around 119 million domestic trips were made during China’s three day Qingming holiday that ended Saturday, with RMB 54 billion ($7.5 billion) recorded in total spending, according to the Chinese Ministry of Culture and Tourism. Both figures represent a rise of more than 10% on pre-pandemic levels. The Qingming Festival is generally used for visiting tombs or paying tribute to dead relatives in people’s home towns. Official data showed that the country handled 1.041 million inbound tourist arrivals during the period and 992,000 outbound tourists, with South Korea and Japan among the most popular destinations, as well as Thailand, Singapore, and Malaysia, which recently introduced mutual visa exemptions with China. [Ministry of Culture and Tourism, in Chinese]

US chip giant Nvidia has introduced the RTX 4090D in the Chinese market, with current prices on China’s e-commerce platforms ranging from RMB 14,999 ($2,074) to RMB 15,999 ($2,212) for two models. The company confirmed that US export regulations would not impact the import of its H20 or RTX 4090D graphics cards into China, despite earlier reports suggesting that sales of the RTX 4090D could be impacted. Micro-Star International (MSI), a Taiwanese manufacturer of computer hardware and electronics, has also released the GeForce RTX 4090 D 24G Ventus 3X for the Chinese market. This new model adopts a default frequency of 2,520 MHz, but it can be manually overclocked to 2,535 MHz through the MSI Center, MSI’s software for optimizing system performance and customization. [MyDrivers, in Chinese]

TikTok sibling Douyin is on track to buy a payment license from Chinese third-party payment provider Union Mobile Financial (UMF), a significant step for the short video app to enter the bank card-based offline payment field. According to a recent announcement from HyUnion Holding, the parent of UMF, Douyin needs to pay nearly RMB 1.4 billion for the license acquisition, which includes a basic transfer consideration of $750 million and net assets valued on the settlement date. “The purchase is to support offline transaction scenarios such as local services, providing a more convenient payment and service experience to users and merchants within Douyin,” said Douyin Pay’s spokesperson. The deal comes three years after Douyin launched its own payment service by acquiring Wuhan Hezhong Yibao, which obtained a third-party payment license from China’s central bank in 2014. [Caixin, in Chinese]

Huawei will hold a spring product launch event on April 11, during which it is expected to release new products for cars and PCs. The much-anticipated flagship smartphone P70 series is yet to be confirmed for unveiling at the event. An industry insider suggested that the Huawei P70 series may skip the launch event and could be directly available for online purchase, similar to the Huawei Mate 60 Pro Pioneer Program last August. Several Huawei offline store employees have stated that there are no pre-order activities available for the P70 series. [DoNews, in Chinese]

A 7.3 magnitude earthquake struck Hualien county in Taiwan Wednesday morning, with the latest reports indicating that its impact on Taiwan’s semiconductor supply chain is relatively minor. Most wafer foundries are located in regions experiencing seismic intensity of level four, while chip factories are constructed with high standards and advanced internal damping measures. Taiwan’s chip manufacturers conducted shutdown inspections and resumed operations after the earthquake on April 3, according to market intelligence firm TrendForce. Despite potential losses from emergency shutdowns or earthquake-induced damages, most chip companies can rapidly recover the majority after resuming operations, as the current capacity utilization rates in mature process fabs range between 50% to 80%. [Icsmart, in Chinese]

Xiaomi has been under pressure related to mass production and timely delivery of its first electric vehicle, as the estimated delivery wait times for the SU7 Pro extend to five months, according to two sales representatives in Shanghai on Friday. Meanwhile, the waiting time for the SU7 Max, the top-end version of the all-electric sedan, is 29 weeks, much longer than the expected 4-8 weeks reported by a customer TechNode spoke with at a Xiaomi store. Two other customers, who gave positive comments about the sleek design of the SU7 at a competitive price, said they were more attracted to the Aito M5 and the Luxeed S7, both powered by Huawei technologies, citing reasons such as more fluid in-car software. Beijing-based Xiaomi, nicknamed “China’s Apple,” seems to be benefiting from its loyal fan base, having secured more than 100,000 reservations as of April 3, a week after the vehicle’s launch. Roughly 40,000 of them have converted their reservations into orders, according to Chief Executive Lei Jun. The smartphone maker stated in a March 29 post on WeChat that it is still “making all efforts” to ramp up production at a new factory in Beijing, set to have an annual capacity of 150,000 units. [TechNode reporting]

The US and the EU have agreed to extend their partnership for three years to address issues in the semiconductor sector, particularly concerning legacy chips from China, Reuters reported on Friday. The two sides issued a 12-page joint statement on the meeting’s outcomes, which outlined plans for the US and the EU to exchange market intelligence on China’s “non-market” policies and consult on planned actions to address related issues in the global supply chain. During a press conference, US Commerce Secretary Gina Raimondo stated that China currently produces around 60% of legacy chips used in automobiles, household appliances, and medical devices. [Reuters]

Bilibili’s main site operating center has been replaced by five relatively independent category units in a recent overhaul, according to a Monday report by media outlet LatePost. The move comes as part of efforts to split the video streaming platform’s content operations team to enable it to be more focused and boost quality content. According to the report, the five stand-alone units are designed to oversee separate comprehensive categories: animation, games, music, film, and entertainment. As part of the restructuring, Bilibili has also separated its livestreaming and video operations teams as the company pushes “value-added services” including livestreaming, which contributed to 44% of total earnings last year, as the firm looks to accelerate its path to profitability. [LatePost, in Chinese]

Xiaomi sub-brand Redmi on Monday unveiled the Redmi Turbo 3 smartphone, the latest model in its decade-long series, which is scheduled to launch this month. The upcoming Redmi Turbo 3 smartphone is expected to feature the Snapdragon 8s Gen 3 processor, according to sources familiar with the matter. As a budget mid-range smartphone line, Redmi plans to introduce four series for the next decade: the K series, Turbo series, Note series, and Digital series. The K series is positioned as Redmi’s flagship line, while the Turbo series and Note series will provide flagship-like performance at a more affordable price, according to the company. The Digital series will comprise entry-level devices. [Redmi Weibo, in Chinese]

United Microelectronics Corporation (UMC), a major player in semiconductor wafer foundry, has secured a significant order from Apple’s radio frequency power amplifier supplier Qorvo, as reported by Taiwanese media outlet Economic Daily News. Qorvo will integrate new chips with its power amplifiers for antenna components of the next generation of iPhones, with the new chips manufactured using UMC’s 3DIC (three-dimensional integrated circuit) technology. Supply chain sources disclosed that Apple has revised the design of the antenna module for the next generation of iPhones to bolster signal performance. This optimization includes the integration of products from Anokiwave, a company recently acquired by Qorvo, aimed at enhancing the iPhone’s signal reception capability. [Economic Daily News, in Chinese]

Chinese e-commerce giant Alibaba is joining forces with a rocket maker startup Space Epoch to test rocket-powered parcel delivery, expected to reach shoppers worldwide within an hour. “A lot of great things seem like a joke at first,” Alibaba-owned marketplace platform Taobao said on Monday, April Fool’s Day, before confirming the collaboration was genuine on its Weibo account. The project is planning to use reusable rockets for parcel delivery and aims to have each projectile carry a 120 cubic meter container holding up to ten tons of goods, according to a post on Space Epoch’s official WeChat account. The Beijing-based startup said it will conduct its first rocket delivery test soon, while the company added that achieving the goal in the short term will not be easy, but that it still hopes to bring opportunities for both the traditional logistics industry and China’s commercial space field through the experiments. [Space Epoch, in Chinese]

Hundeds of customers queued up in long lines amid tight security at Xiaomi’s flagship store in Shanghai over the weekend looking to get their hands on the electronics brand’s $29,881 Porsche-like EV, with some even getting to test drive the vehicle well past midnight. A sales executive told state-owned media The Paper that over 1,800 customers who visited the showroom made reservations for the SU7 sports sedan with a refundable deposit of RMB 5,000 ($692) over the past weekend, highlighting the strong demand for Xiaomi’s first electric vehicle. The report echoes an earlier announcement by Xiaomi chief executive Lei Jun, in which he said the company secured 88,898 pre-orders in the 24 hours following the launch of the all-electric car on March 28. This will account for roughly the total capacity of Xiaomi’s plant on the outskirts of Beijing this year, where the smartphone maker began volume production of the car in late February. [The Paper, in Chinese]

TikTok owner ByteDance will give high-performance employees extra bonuses in a move to boost morale, according to Chinese media outlets citing the company’s internal email. Employees with performance ratings above “M,” the fifth of ByteDance’s eight standards for performance classifications, are expected to earn incentives ranging from 5% to 15% in the form of stock options or restricted stock units. The short video operator does not publicly disclose its workplace numbers, but the latest layoffs from its Slack-like Feishu unit affected around 1,000 employees, following the cut of hundreds of jobs late last year as ByteDance retreated from the gaming sector. The additional payments will be awarded on April 25, with staff eligible as long as they are still employed on that day, the email said. [Southern Metropolis Daily, in Chinese]

Chinese online retailer JD has lowered its free-delivery minimum order for one-hour delivery services to RMB 29 ($4.01), shortly after the e-commerce titan set on-demand services as one of its “must-win battles” in 2024. This type of business, a key offering mainly provided by China’s internet companies including JD, aims to efficiently deliver a wide range of products local consumers order online within one hour. Beijing-based JD last year brought back its retired executive, former international operations head Yan Xiaobing, to lead a newly established retail arm that integrates the company’s offline businesses, at a time when JD experiences low-digit growth in earnings and user numbers and focuses on increasing consumer spending on on-demand services. [JD, in Chinese]

On March 29, Huawei stated in its 2023 annual financial report that the company’s overall operational performance is in line with expectations. In 2023, Huawei’s global sales revenue reached RMB 704.2 billion ($97.45 billion), representing a year-on-year increase of 9.63%, the largest annual growth rate since 2019. The net profit surged to RMB 87 billion ($12.04 billion), up by 144.5% year-on-year. Huawei’s R&D (research and development) investment for 2023 totaled RMB 164.7 billion ($22.79 billion), with cumulative R&D spending exceeding RMB 1.11 trillion ($150 billion) over the past decade. “We’ve been through a lot over the past few years, but through one challenge after another, we’ve managed to grow,” said Ken Hu, Huawei’s Rotating Chairman. [Huawei]

Online video services have gradually become “a key engine to activate the new quality productivity” of the digital economy, said the China Netcasting Services Association (CNSA) in a report, as the market size totaled RMB 1.15 trillion, continuing to attract growing companies and live streamers. The state-run association published an industry-focused report on Wednesday, revealing that the number of professional hosts exceeded 15 million, while short video accounts amounted to 1.55 billion at the end of December last year in China. More than 70% of users who participated in a CNSA survey said they had bought goods through short videos and livestreams, a significant increase from 42.7% in 2022. [CNSA, in Chinese]

Alibaba’s cross-border e-commerce platform AliExpress secured a deal to become an official partner of UEFA Euro 2024, doubling down on its bet in the European market that echoed rival Temu’s multimillion-dollar investments in the Super Bowl for two consecutive years. This year’s UEFA European Championship will commence on June 14 in Germany and is expected to draw an influx of 2.7 million fans to stadiums, according to official figures. In a WeChat post on Thursday, AliExpress urged its merchants to prepare in advance to “seize the opportunity of the traffic surge from the upcoming tournament,” which would propel cross-border businesses to “the next level.” [AliExpress, in Chinese]

On Wednesday, Chinese leading display panel manufacturer BOE started construction of its first 8.6-gen AMOLED production line in Chengdu, Sichuan, with an investment of around RMB 63 billion ($8.72 billion). This is the largest single investment in the manufacturing sector in the history of industrial development in Sichuan, a province located in southwestern China. The upcoming production line is expected to occupy around 1,400 acres, boasting a planned monthly capacity of 32,000 glass substrates. The company claims that the production line, primarily targeting high-end OLED displays for laptops and tablets, is set to enter mass production in the fourth quarter of 2026, with an annual output value surpassing RMB 40 billion ($5.53 billion) at full capacity. [Icsmart, in Chinese]

BYD aims to sell 500,000 electric vehicles overseas in 2024 and further double the number to 1 million units in 2025, chairman Wang Chuanfu told investors on Wednesday. The figures would mark a significant increase compared to the nearly 243,000 units it achieved last year. BYD’s overall sales are expected to jump 20% to 3.6 million units this year, according to a transcript quoted by media outlet Yicai, lower than the estimate of 4 million units made by some analysts. A day earlier, the Chinese EV giant posted net income of more than RMB 30 billion ($4.15 billion) in 2023, representing an annual increase of 80.7%, while the margin of its car business improved from 20.39% to 23.02%. Wang also mentioned the company’s plans to roll out its next-generation plug-in hybrid vehicle system as early as May, which will enable a driving range of 2,000 kilometers (1,243 miles) on a full tank plus full charge, as well as a fuel consumption rate of 2.9 liters of gasoline per 100 km. [Yicai, in Chinese]

China’s central government on Wednesday unveiled its first action plan to accelerate the development of flying cars as part of a broader goal to make the emerging aviation sector for low-altitude airspace a new growth engine to bolster the economy. Some pilot programs for passenger transport by electric vertical takeoff and landing aircraft (eVTOL), also known as air taxis, will first be introduced in China’s more developed regions, including the southern Guangdong province, Hong Kong, and Macau, said the Ministry of Industry and Information Technology. Beijing is aiming for “initial development” of a new aviation equipment industry by 2030 when eVTOLs and drones will operate at relatively low altitudes and provide more intelligent, eco-friendly air travel and ferry services for “various aspects” of China’s society, according to the plan. The development of a “low-altitude economy” was included in the government work report for the first time during the latest annual parliamentary meetings ended March 11, signaling China’s intent to boost its aerospace industry. [MIIT, in Chinese]

Tencent is developing two mobile games akin to the popular title Palworld, utilizing its subsidiaries TiMi Studio and LightSpeed & Quantum Studios in the hopes of revitalizing the company’s core gaming business, Bloomberg reported on Tuesday. Palworld, a monster-taming adventure game released on Jan. 19, has sold 12 million copies on Steam and attracted seven million players on Xbox, Japanese developer Pocketpair announced in February. Both TiMi and LightSpeed & Quantum Studios are working on a mobile version of Palworld, according to the report. Sources disclosed that the decision to engage two separate studios is aimed at fostering healthy competition and yielding optimal results. Tencent has yet to comment on the matter. [Bloomberg]

Short video-sharing platform Douyin has recently launched a standalone app for its e-commerce business, aiming to enhance operations amidst increasing order volumes. The app is currently available for download on Android devices but has yet to be released on Apple platforms. The goal of the launch is to better serve users who “have a strong demand for active shopping,” one of Douyin’s representatives told local media outlets. The booming retail services, enticing shoppers through short videos or livestreaming within the TikTok sister app, have significantly contributed to ByteDance’s over $110 billion in sales in 2023. Douyin has reportedly set a nearly 40% year-on-year growth target for its e-commerce total volumes, aiming to surpass RMB 3 trillion this year. [36Kr, in Chinese]

Chinese automakers could increase their combined share of the electric vehicle market in Europe to 11% in 2024 from 7.9% last year, with that number set to rise further to 20% by 2027, according to a study published on Wednesday by Transport & Environment (T&E). Chinese EV imports to the EU are also forecast to rise to 25% this year from 19.5% in 2023, with most of that amount coming from international carmakers such as Tesla, Renault’s Dacia, and BMW, the European environmental lobby group added. The analysis comes after the European Commission launched an anti-subsidy investigation into Chinese EV manufacturers last October and is expected to raise the tariff on car imports from China to 25% from the current 10% when the probe is completed. T&E also called for a more comprehensive policy to strengthen the local supply chain and facilitate the availability of affordable EVs in Europe. Tariffs won’t shield legacy carmakers for long, said Julia Poliscanova, a senior director at T&E, adding that “Chinese companies will build factories in Europe and when that happens our car industry needs to be ready.” [T&E]

Alibaba announced on Tuesday that it is canceling the planned Hong Kong IPO for its logistic arm Cainiao in an unexpected move, with chairman Joe Tsai saying it’s an “appropriate time to double down” on the e-commerce’s giant investment in its logistics unit. Alibaba also plans to buy Caniao stock that it does not currently hold for up to $3.75 billion, as it aims to increase its current 64% stake to full ownership. The remaining stock acquisition offer to minority investors and employees values Cainiao at $10.3 billion, Alibaba said in the announcement. “Regulation played no role” in its call-off of the IPO, Tsai told investors on a related call on Tuesday, where he emphasized that Cainiao is pivotal to the Taobao owner’s strategy of “winning in e-commerce by regaining market share and driving growth.” [Alibaba]

China’s Horizon Robotics, a provider of in-car technologies to major automakers like Volkswagen and BYD, has filed to sell an undisclosed amount of shares in Hong Kong. The move aims to capitalize on the increasing consumer demand for autonomous driving technology both domestically and internationally. The tech unicorn reached a valuation of $8.7 billion in late 2022 after raising a $210 million Series D funding round. According to a prospectus filed on Tuesday, China’s SAIC, Volkswagen, and BYD hold stakes of 10%, 2.6%, and 0.1% in the company, respectively. Horizon reported revenues of nearly RMB 1.6 billion ($220 million) in 2023, up from RMB 906 million the previous year, with net losses narrowing from RMB 1.9 billion to RMB 1.6 billion. The company captured a 21.3% share of the advanced driver assistance systems (ADAS) market in China, making it the second-largest vendor in the country as of last year, according to figures from China Insights Consultancy, which is advising the stake sale. Horizon, backed by investors such as Sequoia Capital China and Hillhouse Investment, plans to use the proceeds to expand into overseas markets, including Japan, Korea, and Europe. [Horizon Robotics prospectus]

Vivo launched the Vivo X Fold3 series foldable smartphones on Tuesday, with the company claiming the Vivo X Fold3 to be the lightest and thinnest book-style foldable smartphone. The Vivo X Fold3 weighs 219g, which is lighter than traditional non-foldable phones, and it measures 10.2mm in thickness when folded. The Armor Glass on the external screen boasts 11 times improved drop resistance over the previous generation and is certified by Swiss SGS certification. The X Fold3 uses the same Snapdragon 8 Gen 2 chipset as the X Fold2, while the Pro model runs on the new Snapdragon 8 Gen 3. The Vivo X Fold3 starts at RMB 6,999 ($968) for the 12GB/256GB model, while the Pro version is priced at RMB 9,999 ($1383) for the 16GB/512GB model. [Vivo, in Chinese]

Alibaba’s wholesale marketplace 1688 recently opened three official online shops on Taobao, strengthening the company’s low-price strategy which is expected to see increasing low-priced supplies flowing in. According to Chinese media agency Caixin, the three stand-alone stores sell furniture and general merchandise produced by well-known brand-name factories, office supplies and business consumables, and unbranded white-label items. It is also reported that Taobao would set up an independent channel similar to the one shared by Tmall Supermarket for 1688-based businesses, making it easier for shoppers to pick goods without having to download its original app. [Caixin, in Chinese]

PDD’s low-profile founder Colin Huang has moved up three places in the Hurun wealth rankings to become China’s second-richest billionaire, followed by Tencent founder Pony Ma and ByteDance founder Zhang Yiming, according to the latest report from Hurun Research Institute. Huang’s fortune stands at $53 billion based on mid-January 2024 values, an increase of 71% from a year earlier, thanks to PDD’s domestic and international business successes. Huang’s wealth growth has allowed him to jump to 24th place on the global rich list, up from 39th a year prior. [Hurun Research Institute]

On March 23, China’s Minister of Commerce, Wang Wentao, met with Micron CEO Sanjay Mehrotra to exchange views on Micron’s development in China. The Chinese government welcomed Micron to continue deepening its presence in the Chinese market and accelerate the implementation of new investment projects in China, Wang Wentao said. Sanjay Mehrotra introduced Micron’s business and new investment projects in China, stating that the company will strictly adhere to Chinese laws and regulations. Sanjay also unveiled plans to expand investments in China to meet the demands of Chinese customers. This is Sanjay Mehrotra’s second visit to China in nearly six months, with their previous meeting occurring on November 1, 2023. [Icsmart, in Chinese]

Black Sesame Technologies, a Chinese startup specializing in chips for autonomous driving, has renewed its application to Hong Kong Exchanges for an initial public offering, according to an official release by the bourse on March 22. Backed by Chinese auto and tech majors including Xiaomi, SAIC, and FAW Group, the eight-year-old startup first filed for a Hong Kong IPO last June, but no progress was made before the prospectus expired in January. Although its revenue nearly doubled to RMB 312 million ($43.3 million) last year, the net loss attributable to owners of the company widened to nearly RMB 4.86 billion from RMB 2.75 billion a year earlier. The gross margin of its self-driving business also declined from 24.2% to 21.4% in the past two years, which the company blamed on the initial cost of packaging facilities for its advanced driving chips and on the favorable prices it offers to Geely due to their long-term collaboration. [Black Sesame prospectus]

Huawei’s smartphone supply chain companies have commenced mass deliveries of the Huawei P70 series flagship phones, with industry insiders indicating Huawei’s optimistic shipment targets for the series, according to local media outlet Jiemian. Several analyst agencies predict its launch in April, though Huawei has not yet announced a release schedule for the P70 series. Powered by the self-developed Kirin 9000S processor, the P70 series will not markedly differ from the Mate 60 series launched last August but will focus on improving imaging functionality. The Huawei P70 and P70 Pro will offer the OmniVision OV50H as their main camera sensor, while the premium model Huawei P70 Art will be upgraded to the Sony IMX989 sensor. [Jiemian, in Chinese]

On March 23, China’s Didi reported an RMB 535 million ($74.3 million) profit for 2023, its first annual profit in four years as the ride-hailing giant gradually recovers from the impact of a Covid-era pullback and a year-long regulatory crackdown by Beijing. However, the company swung to a full-year loss attributable to ordinary shareholders of around RMB 502 million, which is still a significant reduction compared to the nearly RMB 24.7 billion loss from a year earlier. Revenue from its core ride-hailing business both in China and overseas markets increased by more than a third year-on-year to RMB 175 billion and RMB 7.8 billion respectively, and chief executive Cheng Wei said they are “fully confident” in the future progress. The company is planning a public share sale in Hong Kong this year, according to Bloomberg, after being delisted from the New York Stock Exchange in June 2022 and paying RMB 8.02 billion fine after a cybersecurity investigation.[TechNode reporting, Didi release]

On March 24, at the China Development Forum 2024 in Beijing, Apple CEO Tim Cook stated that the Apple Vision Pro will be launched in the Chinese market later this year, while the company aims to increase its investment in research and development in China. Currently, Apple launched the $3,499 Vision Pro in the US in February and has not yet released it in other markets. On March 12, Apple announced the expansion of its research labs in China, including enhancing the capabilities of its Shanghai research center and opening a new lab in Shenzhen later this year. This expansion is expected to deepen cooperation with Chinese suppliers to strengthen testing and research capabilities for products such as the iPhone, iPad, and Vision Pro.[IThome, in Chinese]

Ecarx, a Chinese auto tech startup backed by Geely’s chairman Li Shufu, on Wednesday unveiled its new seven-nanometer system-on-a-chip called AD1000, which can offer over 256 trillion operations per second (TOPS) of performance, and is being billed as comparable to Nvidia’s current chip called DRIVE Orin for autonomous driving. The company said vehicles powered by a computing platform with four AD1000 SoCs, could feature Level 4 autonomous capabilities, meaning they can travel from point A to point B without requiring any human intervention, according to definitions set by the Society of Automotive Engineers. Ecarx in 2021 released its first seven-nanometer chip, the SE1000, an alternative to Qualcomm’s flagship Snapdragon SA8155P that powers a vehicle’s infotainment system, and has shipped more than 230,000 chips, mostly to Lynk & Co, a joint brand owned by Geely and Volvo. [TechNode reporting, Ecarx release]

Chair of Ele.me Wu Zeming said the new management team has outlined the food delivery arm’s operating plan for the next three years, which it has formed in discussion with its parent company Alibaba. The move is “the best response” to external speculation over the delivery firm’s potential sale, Wu claimed. According to Chinese tech media outlet 36Kr, the Meituan rival recently held a routine annual meeting that had core managers attendance, with former lead Yu Yongfu noting Ele.me is “already on a healthy development track” and will embark upon a new three-year business and operational implementation strategy. “Whoever sets goals must lead the team down the road, otherwise it will have a relatively large impact on targets if the leader moves halfway through the process,” said Yu, according to 36Kr’s report. Despite Ele.me continuing to maintain positive financial figures since the June quarter of 2022, it has yet to record profit. [36Kr, in Chinese]

Daniel Zhang, the departing chairman and chief executive of Alibaba, has joined Firstred Capital as a managing partner, the Chinese investment fund announced on Thursday. “Daniel Zhang will partner with the fund’s founder, Liu Xiaodan, to explore a new future for merger and acquisition funds,” Firstred said on its official WeChat account. The low-profile VC firm’s portfolios include semiconductor, biological, and pet healthcare companies. When Zhang left his executive role within Alibaba last September, the e-commerce giant said its former chair would build a future-oriented tech fund that Alibaba would inject $1 billion into. [Firstred Capital, in Chinese]

Li Auto on Thursday slashed its forecast for vehicle deliveries in the current quarter by nearly a third to between 76,000 and 78,000 units, as CEO Li Xiang acknowledged strategy lapses with the Mega, its first battery electric vehicle model. “In fact, we are still in the nascent 0-to-1 business validation period, and similar to Li ONE and our EREV technologies, Li MEGA and our BEV technologies will also need to undergo this 0-to-1 validation process,” Li said in the filing. He also mentioned the Chinese startup would delay a full-scale effort to sell the van nationwide but would focus on top-tier cities to “effectively” validate market acceptance, according to an internal memo seen by Jiemian. The Beijing-based company has mainly been selling extended-range hybrids and on March 1 launched the Mega with a higher-than-expected price tag of RMB 559,800 ($77,756). Management had previously said that sales of the family-oriented, multi-purpose vehicle could achieve 8,000 units each month, setting an ambitious delivery target of 800,000 units for this year. [Li Auto filing, Jiemian, in Chinese]

In February, Tencent, NetEase, miHoYo, Century Games, and FirstFun emerged as the top five mobile game publishers among Chinese firms in terms of global mobile game revenue, according to the analyst firm SensorTower. The strategic game Last War: Survival Game experienced a 67% month-on-month revenue increase in February, securing its publisher FirstFun the fifth spot on the Chinese mobile game revenue list. The US became the leading market for Century Games’ survival strategy game Whiteout Survival and contributed 33% of its revenue in February. NetEase’s mobile gaming revenue grew by 19.2% month-on-month, driven by hits like Eggy Party, Identity V, and Racing Master.[SensorTower, in Chinese]

Kuaishou finally achieved a yearly profit in 2023, driven by the short video app’s booming e-commerce business and online marketing fees paid by merchants to advertise within the platform. Fourth quarter revenue amounted to RMB 32.6 billion ($4.5 billion), rose 15.1% from a year earlier, while net profit hit RMB 10.3 billion, putting the company into the black for the first time. The Douyin competitor sold over a trillion yuan worth of goods last year, according to its earnings report. Short dramas, an emerging content form that is making waves worldwide, also boosted vital figures for Kuaishou such as users who watch over 10 episodes a day, which reached 94 million in the fourth quarter, a growth of more than 50% year-on-year. The platform’s average monthly active users hit at 700.4 million during the period, a rise of 9.4% year-on-year. [Kuaishou]

Temu parent PDD reported a 123% year-on-year revenue jump amounting to RMB 89 billion ($12 billion) for the fourth quarter of 2023, a year that executives said proved “pivotal” to the company during a Wednesday earnings call. The fast-track growth is again way ahead of its main Chinese counterparts Alibaba and JD, who both saw single-digit rises in revenue. PDD’s net profit increased nearly 1.5 times during the period to RMB 23.3 billion. PDD remained silent on the stand-alone financial performance of its international business Temu, the cut-price shopping platform that added a presence in around 50 countries in the past year, but an eye-catching growth of 192% to RMB 91 billion in total cost of revenue in 2023 has offered a glimpse that PDD has poured huge resources into its new business, especially compared to a 1% decrease in this figure a year earlier. Co-CEO of PDD Zhao Jiazhen said the company “clearly feels the improving consumer sentiment” from consumer activities in its platforms, and shared his confidence in the future of the Chinese consumer market. [PDD]

Tencent on Wednesday reported a revenue of RMB 609.01 billion ($84.6 billion) for 2023, a 10% year-on-year increase, while its adjusted net profit surged by 36% year-on-year to reach RMB 157.68 billion ($21.9 billion). The Chinese tech giant’s gaming division reached RMB 179.9 billion ($24.99 billion) in revenue in 2023. The firm’s domestic gaming revenue grew by 2% year-on-year to RMB 126.7 billion ($17.6 billion), driven by the success of titles such as first-person shooter game Valorant, action role-playing game Lost Ark, battle royale shooter game Arena Breakout, and the turn-based strategy game Teamfight Tactics. Overseas gaming revenue soared by 14% year-on-year to RMB 53.2 billion ($7.39 billion) for the company, reflecting a year-on-year increase of 8% when excluding the impact of exchange rate fluctuations. Overseas growth was fueled by titles including the overseas version of Valorant, third-person shooter action role-playing game Goddess of Victory: Nikke, puzzle matching game Triple Match 3D, and the battle royale game PUBG Mobile. [Zaker, in Chinese]

Nvidia announced on Monday that it will supply its latest centralized car computer, DRIVE Thor, for the next generation of vehicles from Chinese automakers, including BYD, Xpeng Motors, and GAC Group. The move comes as Nvidia taps into China’s growing demand for autonomous and connected vehicle technologies. Both BYD and GAC plan to begin production in 2025 of their luxury EVs featuring autonomous driving capabilities and powered by the computing chip. They join other manufacturers, such as Geely-owned Zeekr and Li Auto, in harnessing the power of artificial intelligence for automobiles. Additionally, BYD will leverage Nvidia’s generative AI and simulation technologies to plan its virtual factory and sales operation, according to a joint announcement. Revenue from Nvidia’s automotive business declined 4% to roughly $281 million last year, accounting for less than 0.5% of its total revenue. Nevertheless, the US tech giant has been expanding its autonomous driving team in China, which KPMG expects to be the first market to mature for advanced driver assistance systems. [Nvidia release]

Chinese game developer miHoYo’s recent legal actions against private server operators for its hit title Genshin Impact resulted in significant penalties, with chief instigator Yin sentenced to four years and six months in prison and fined RMB 130,000 ($18,057). These illegal operations, which included unauthorized server setups and impersonation of miHoYo’s game, constituted copyright infringement and fraud. Additionally, criminal judgments were also issued for pirated merchandise sales related to Genshin Impact and Honkai Impact 3rd, resulting in jail time and fines amounting to nearly RMB 460,000 ($63,895). In miHoYo’s announcement, the company pledges to continue its legal efforts to combat infringement and protect user rights amid a healthy gaming environment. [miHoYo, in Chinese]

Xpeng Motors reported a gross margin of 6.2% for the October-December period on Tuesday, better than analysts expected and a solid improvement over the -2.7% for the third quarter of 2023, as the Chinese startup delivered a record 60,158 electric vehicles driven by year-end promotions. The company also achieved a positive vehicle margin of 4.1%, up from -2.7% three months earlier but far behind Li Auto’s 22.7% and NIO’s 11.9% over the same period. Xpeng expects its partnership with Volkswagen to generate revenues and make a “positive impact” on its margin starting in 2024, as the German automaker announced plans last July to develop two new electric models based on Xpeng’s vehicle platform. The EV maker said it will also benefit from a joint sourcing program for vehicle components with VW, as these costs will decline over time to a “competitive level in the market,” according to Vice President Charles Zhang. Its annual loss widened to RMB 10.38 billion ($1.46 billion) last year from RMB 9.14 billion, while Li Auto posted its first annual profit with a net income of RMB 11.8 billion. [Xpeng release]

Xiaomi announced on Tuesday that it saw a 126.3% year-on-year increase in adjusted net profit to RMB 19.3 billion ($2.68 billion) in 2023, despite a slight 3.2% year-on-year decrease in total revenue to RMB 270.9 billion ($37.63 billion). In 2023, Xiaomi’s research and development expenditure surged by 19.2% year-on-year to RMB 19.1 billion ($2.65 billion), according to the financial report. The company claimed that the global monthly active users of Xiaomi’s smartphones and tablets reached an all-time high of 641.2 million by December 2023. Additionally, at the Twitter-like platform Weibo, Xiaomi CEO Lei Jun announced the unveiling of Xiaomi’s automobile factory, where directors toured the facility and test-drove the upcoming Xiaomi SU7. [IThome, in Chinese]

On Monday, Chinese video-sharing platform Bilibili announced that it will give more incentives to less profitable content creators. In an official statement, it specified that the campaign applies to individuals earning less than RMB 5,000 from Bilibili over a six-month period. However, the announcement that cash incentives will now be capped at a monthly income of RMB 2,000 ($277.80) regardless of the number of views has led to a backlash from some creators, with one Bilibili user who boasts 60,000 followers commenting in a post that the program would “only push out those video creators who refrain from promoting commercial ads and instead upload videos out of passion.” The platform claimed the updated incentive plan has been put together in the hope that “more ordinary people with ideas and talent will be able to embark on a creative path.” The GenZ-favored platform is rushing to achieve its commitment to profitability in the third quarter of this year, as it still recorded a net loss of RMB 4.8 billion in 2023. [Bilibili, in Chinese]

Honor’s Dragon Year ambassador, Jackie Chan, made an unexpected appearance and performed a song during last night’s Honor 2024 product launch event. Honor released two new smartphones: the Honor Magic 6 Ultimate and the Honor Magic 6 RSR Porsche Edition. The Honor Magic 6 Ultimate introduces an ultra-dynamic eagle eye camera system that matches the quality of single-lens reflex (SLR) cameras. This system is equipped with the industry’s first ultra-dynamic eagle eye main camera, the H9800 (Howell OV50K). The H9800 features a large 1/1.3″ sensor, a wide 15EV dynamic range, a flexible F1.4-2.0 variable aperture, and optical image stabilization (OIS). The Ultimate with 16 GB of RAM and 512 GB of ROM is priced at RMB 6,999 ($973), while the variant with 16 GB of RAM and 1 TB of ROM costs RMB 7,699 ($1,070). [Honor Weibo, in Chinese]

Hou Yi, who founded Freshippo in 2016 as a new retail practice for Alibaba, announced on Monday his decision to step down as chief executive in a surprise move, amid frequent sale rumors overshadowing the supermarket chain. Chief financial officer Yan Xiaolei will take over Hou’s vacancy, a move that has raised suspicions that it is part of asset liquidation, especially after Alibaba chair Joe Tsai told investors that the company is on track to exit traditional physical retail businesses, which he referred to as “non-core focus” for the Taobao owner recently. Chinese tech outlet LatePost, however, reported that Freshippo is still actively seeking to bring in new strategic investors under an approximately $3.7 billion valuation and has approached several potential investors. The grocery unit once sought funds at a valuation of up to $10 billion in early 2022. [LatePost, in Chinese]

Xiaomi on Monday announced the global debut of the Civi 4 Pro smartphone featuring a brand new Snapdragon processor and confirmed the phone’s release date as March 21. Qualcomm unveiled the new Snapdragon 8s Gen 3 chipset on the same day, positioning it below its current flagship Snapdragon 8 Gen 3 in capabilities and price. The Snapdragon 8s Gen 3 will additionally support generative AI in budget-friendly smartphones. While the 8s Gen 3 boasts a CPU similar to the standard 8 Gen 3, it differs slightly by operating at a lower frequency and having a slower performance core: the prime core runs at speeds of up to 3.0GHz compared to 3.4GHz on the 8 Gen 3. [Xiaomi Weibo, in Chinese]

Alibaba is planning to invest over $1 billion in South Korea in the next three years according to the country’s news outlet Yonhap, in a quest to tap market potential. The report, citing business plans submitted to the government, said Alibaba is set to build a logistics center equivalent in size to 25 soccer fields, while investing $100 million to help small- and medium-sized merchants sell worldwide via Alibaba’s international retail platforms including Lazada and Miravia. In a possible curb on Alibaba’s ambitions, South Korea’s Personal Data Protection Commission announced an investigation into the collection and handling of personal information on cross-border shopping platforms used by Korean users, including Alibaba-owned AliExpress. [Yonhap, in Chinese]

Chinese flying taxi maker EHang has recently reached a partnership agreement with state-owned automaker GAC Group to develop driverless passenger drones, a move chief executive Hu Huazhi told investors on March 15 would “capitalize on” GAC’s well-established industrial chain and manufacturing capability. The two companies said they are planning to jointly build an assembly line for eVTOLs, or electric vertical takeoff and landing vehicles, in the southern Chinese city of Guangzhou, where both are headquartered. Meanwhile, a GAC spokesperson said the automaker expects to accelerate the development of its own flying cars with knowledge and services provided by EHang, Caixin reported on March 16. Revenues for Nasdaq-listed EHang more than tripled year-on-year to RMB 56.6 million ($8 million) in the fourth quarter of 2023, when the company delivered 23 passenger drones, a significant increase from just six units a year prior, sending shares up 12.9% on March 15. [EHang financial report, Caixin, in Chinese]

Latest rumors that Alibaba has decided to sell Freshippo and RT-Mart to a state-run company were again denied by the e-commerce giant, following a weekend report that said China National Cereals, Oils and Foodstuffs Corporation (COFCO) is expected to take over the above offline market chains at RMB 20 billion ($2.8 billion) and RMB 10 billion, respectively. “The news is patently false,” Freshippo told the Chinese media outlet 21jingji, while RT-MART also denied the sale. Frequent sale rumors come after Alibaba chair Joe Tsai noted the company’s exit from traditional physical retail businesses “makes sense” due to those operations on its balance sheet not being “our core focus” during the recent earnings call in February. However, he added that the exit will “take time” given the challenging market conditions. [21jingji, in Chinese]

The newest China-made Volkswagen Tiguan cars will use the advanced driver assistance system (ADAS) sourced from DJI, which the drone maker said will complete most trips autonomously on Chinese urban streets at the cost of just RMB 7,000 ($973) or so. The assisted driving solution will include a pack of affordable sensors, such as seven cameras and a Snapdragon 8650 computing chip from Qualcomm with only 100 TOPS of performance, according to Shen Shaojie, a technical lead at DJI. This will enable budget cars priced at roughly RMB 150,000 ($20,841) to function by themselves without costly lidar and high-precision maps. Shen shared the details on Sunday in Beijing at an annual forum organized by the EV100 think tank. This comes a year after DJI said it had been supplying lower-priced assisted driving technology, which mainly works on Chinese highways but costs only about RMB 5,000, to automakers such as Chery and SAIC-GM-Wuling, a General Motors’ China joint venture. The 2024 VW Tiguan L, the top-selling sport utility vehicle of the German carmaker, is priced at RMB 198,700 in China. [TechNode reporting, Caixin, in Chinese]

China’s star AI venture ZhipuAI announced on Thursday a capital injection from state-run AI-focused funds in the latest fundraising round that closed earlier this year, as the government steps up efforts to promote the booming tech sector with a mention in March’s government work report by Premier Li Qiang of AI being “an important engine of new productive forces.” The exact financing sum has not been disclosed. The Beijing city government-led AI fund was registered and established with other three funds covering pharmaceuticals and healthcare, robotics, and IT in January, with a total injection of RMB 50 billion ($6.9 billion). The company committed to use the financing for “further research and development” into foundational models, while its founder and CEO Zhang Peng said OpenAI-built Sora’s come-out was “not a surprise” to him because the release was “just showing the gap [between us and the world’s advanced level] visible once again.” [Caixin, in Chinese]

China’s leading internet-famous bubble tea brand Sexy Tea is planning a Hong Kong IPO as early as this year with the company having selected China International Capital and Morgan Stanley to oversee the listing, according to a Thursday report from Bloomberg. However, the banks involved and the precise listing schedule may change, the report cited sources as saying. While rival bubble tea brands Mixue, GoodMe, and ChaBaiDao have rushed to open new stores and pursue IPOs in recent months, Hunan-based Sexy Tea has been more careful about franchising and expanding to more Chinese cities. The company operated more than 500 stores as of October 2023, its website shows. [Bloomberg]

On Thursday, Huawei Terminal Cloud Services announced its partnership with 11 Alibaba-run applications to initiate development for Huawei’s self-developed HarmonyOS, including Xianyu, 1688, Fliggy, http://Ele.meEle.me>, Hema, Cainiao, Diantao, Taobao Special Edition, Damai, Taopiaopiao, and Dengta. Huawei claimed that this collaboration between Alibaba and Huawei covers a wide range, from e-commerce and new retail to local services, travel and entertainment. Huawei has set about developing its own operating system in recent years in response to political pressure largely lead by the US, which may limit the company’s access to essential US-origin technology including the Android operating system. A commercial version of HarmonyOS NEXT will be released to all users on specific devices in the fourth quarter of 2024, breaking from the Android architecture, according to Huawei. [Huawei Terminal Cloud Services, in Chinese]

Tencent has established a new gaming subsidiary, Saros Network Technology, a merger of two of Bytedance’s gaming division studios, Shenzhen Gravity Studio and Jiangnan Studio. Sources familiar with the matter reveal that former employees of ByteDance’s gaming arm NUVERSE have already joined the new company. Shenzhen Gravity Studio has an ongoing multiplayer shooting game project (S1), and Jiangnan Studio has an open-world adventure game (J5) akin to miHoYo’s popular title Genshin Impact. Both Japanese anime-style games have been in development for two years. Tencent’s acquisition of ByteDance’s gaming projects helps fill its anime gaming gap, as the company seeks another hit title after Honor of Kings, according to gaming industry insiders. [Yicai, in Chinese]

NIO’s long-awaited new mainstream brand will be called ONVO, or Le Dao in Chinese pinyin, meaning a happy and well-managed family, as the luxury electric vehicle maker looks to expand its reach to young Chinese families with more accessible pricing. According to images circulated on Chinese media sites, the first model under the ONVO brand, the L60, will be a midsize crossover equipped with two cameras and without more expensive lidar units along the sides of the car’s roof for automated driving. The vehicle, with a target price range between RMB 200,000 and RMB 300,000 ($27,800-$41,700), will be “highly competitive” in cost and performance against Tesla’s Model Y, NIO founder and chief executive William Li told investors on March 5. It is scheduled for launch as early as September with delivery set to begin in the fourth quarter of this year. [TechWeb, in Chinese]

Chinese phone brand Honor unveiled its AI PC technology on Wednesday and planned to debut the new technology with the upcoming Honor MagicBook Pro 16, scheduled for release on March 18. Honor announced plans to integrate AI into all of its laptops by 2024 as the company aims to start a new era for AI PCs. Powered by AI-driven Intel Turbo 3.0 technology, the company claimed that the Honor MagicBook Pro 16 will achieve a 30% reduction in power consumption and boost performance by 10%. The MagicBook Pro 16 is expected to offer AI-assisted functionalities such as content recommendation, document summarization, file searching, meeting recording and summarization, and article writing. Core specs of the new device include the Intel Core Ultra 7 155H processor and Nvidia GeForce RTX 40 series graphics. [IThome, in Chinese]

The analyst firm SensorTower unveiled the top 30 mobile game chart for February, highlighting titles from Chinese developers based on their overseas revenue from both Google Play and the App Store. The top five Chinese mobile games were Whiteout Survival by Century Games, Last War: Survival Game by FirstFun Studio, the Japanese version of Mushroom Body Shakes by Joy Net Games, Genshin Impact, and Honkai: Star Rail, the latter two both developed by miHoYo. The report noted that Whiteout Survival, a glacial apocalypse-themed strategy game launched last February, exceeded $500 million in in-game purchases by February 2024, within just one year of its release. However, specific revenue figures for Whiteout Survival in February were not disclosed, while the second-ranked Last War: Survival Game earned $68 million last month. [SensorTower, in Chinese]

The US House is set to vote on a bill today that would force TikTok’s Chinese parent company to divest from the video-sharing app within 165 days or face a total ban in the country, where TikTok has 170 million users. The bill needs a two-thirds majority to pass. TikTok CEO Shou Zi Chew has reportedly been holding urgent meetings with American lawmakers this week as part of the company’s lobbying effort, coupled with the short video app urging users to call their representatives to stop what it has termed a “TikTok shutdown”. China’s Foreign Ministry spokesperson Wang Wenbin said the US has “never found evidence that TikTok is a national threat to itself” during a press conference on Wednesday, adding that the bill “undermines international investors’ confidence in the investment environment” and will “eventually come back to bite the US itself.” [China News, in Chinese]

A record number of Chinese consumers voiced regret at buying electric vehicles and will consider conventional automobiles for their next purchase due to a lack of charging infrastructure in the country’s vast number of small cities, a report by consultancy McKinsey said on Tuesday. McKinsey’s survey found 54% of respondents from Chinese lower-tier cities made the complaint in 2023, strikingly higher than 10% of those living in China’s first and second-tier cities and bringing the overall percentage to 22%, compared with only 3% recorded a year prior. This also resulted in a decrease for the first time in nearly a decade in the percentage of Chinese consumers saying their next car will be electric, from 68% in 2022 to 62% last year. In another sign of inconvenient access to public charging infrastructure, McKinsey said there was only one charging pile for every nine EVs in China’s less-developed regions last year, higher than the average EV to charger ratio of 7.6 in 2022. The report did note, however, that that number improved from 7.1 to 6.6 in more developed regions of the country over the period. [McKinsey & Company, in Chinese]

Nissan Motor and Honda Motor are planning to slash their annual vehicle output by roughly 30% and 20%, respectively, in China, in the latest major setback to Japanese automakers who have been losing ground as the market shifts to electrification. Nissan’s car capacity in China will fall from 1.6 million units to 1.1 million units following the cut, while that number for Honda will be reduced from nearly 1.5 million to around 1.2 million, according to a Tuesday report by Nikkei. The news comes months after about 900 contract workers were let go at a joint plant between Honda and its local partner GAC in the southern Chinese city of Guangzhou, and Mitsubishi announced a retreat from car production in China last fall. Sales of Nissan and Honda fell 16.1% and 10% to less than 800,000 and approximately 1.2 million units, respectively, in China last year. Nissan has denied the report, and Honda said it has not made a decision on that move. [Nikkei]

Chinese GenAI startup AIsphere, aiming to be as powerful as Sora technically within six months, announced on Monday that it has raised RMB 100 million ($13.9 million) in a Series A1 financing round led by Shenzhen-based Fortune Venture Capital. According to AIsphere’s announcement on its WeChat account, the company, which is about to turn one year old in April, has launched a text-to-video model for the Chinese market on Monday, two months following its internationally-faced model PixVerse rolled out. PixVerse, which the company claimed is now “the largest China-grown GenAI product worldwide” with the largest number of users, is able to generate video lengths of about a few seconds. Local outlet Caixin cited the statistical website Similarweb, saying the tool surpassed one million visits in February. Founder Wang Changhu previously served as the head of ByteDance’s AI Lab, where he supported the building and development of widely-used video apps Douyin and TikTok “from zero to one,” the announcement said. [AIsphere, in Chinese]

On Monday, US chip giant Qualcomm announced via the Twitter-like platform Weibo that it would launch a new chipset on March 18. While the exact chipset remains undisclosed, several reports suggest it could be the Snapdragon 8s Gen 3, potentially accompanied by the Snapdragon 7+ Gen 3. Weibo tech blogger Digital Chat Station indicates the Snapdragon 8s Gen 3 will debut on the new Xiaomi Civi 4 smartphone soon. The Qualcomm Snapdragon 8s Gen 3 may feature a Cortex-X4 prime core running at 3.01GHz, along with four Cortex-A720 performance cores running at 2.61GHz, and three Cortex-A520 efficiency cores running at 1.84GHz, the tech blogger said. Other domestic devices that will apply the Snapdragon 8s Gen 3 chipset include the Realme GT Neo6 series, the Redmi Note 13 Turbo, the Vivo Pad 3, and the iQOO Neo9 series. [IThome, in Chinese]

Horizon Robotics, a Chinese auto tech startup backed by BYD, has hired several major investment banks for a Hong Kong initial public offering that could be launched this year and raise about $500 million, people familiar with the matter told Bloomberg on Monday. The Beijing-based company has been planning an imminent share sale with China Securities International, Goldman Sachs Group Inc., and Morgan Stanley, although planning for the listing is still fluid and the details could change, the report said. The nine-year-old startup has been a major partner of Volkswagen for automated driving technologies in China, as the German car giant in late 2022 announced a $2.3 billion investment deal for a 60% share in a joint venture set up with Horizon. The company, backed by global investors such as Intel Capital and Baillie Gifford, as well as Chinese automakers including BYD, SAIC, and Chery, had briefly considered the US a potential destination to list its shares back in 2021, Bloomberg reported. [Bloomberg]

The global patent application rankings from the World Intellectual Property Organization (WIPO) recently revealed 272,600 worldwide PCT (Patent Cooperation Treaty) patent applications in 2023, reflecting a 1.8% decrease from the previous year. In terms of corporations, Huawei led the list of applicants with 6,494 PCT patent applications, followed by Samsung (3,924), Qualcomm (3,410), Mitsubishi Electric (2,152), and BOE Technology (1,988). In terms of nationality, China remained the largest contributor with 69,610 PCT patent applications in 2023, while the US ranked second with 55,678 applications. Japan (48,879), South Korea (22,288), and Germany (16,916) ranked third to fifth, respectively. [Icsmart, in Chinese]

Shares in CATL surged 14.5% to RMB 180.85 ($25.2) on Monday after Morgan Stanley lifted its rating on the stock to Buy from Hold and forecast the Chinese electric vehicle battery maker to return to strong profit growth in the coming months this year. The analysts raised CATL’s price target from RMB 184 to RMB 210, saying a brutal competitive battle in battery prices will end in 2024, which could weigh on its profit in the first quarter but result in a strong recovery later on. The news also comes after CATL regained its top ranking in the affordable lithium iron phosphate (LFP) battery category with a market share of 41.8% at home from January to February, followed by BYD’s 29.8%, figures from the China Automobile Battery Innovation Alliance showed. The battery giant in January forecast net profit to grow by up to 48.1% to RMB 45.5 billion in 2023, a slowdown from 92.9% a year prior and 185.3% in 2021. [Caixin, in Chinese]

Using artificial intelligence to “resurrect” dead loved ones has become a business accessible on Chinese e-commerce platforms, where users can place orders for digital videos featuring the departed ones’ voices and appearance. The basic service starts at RMB 100 ($14) and involves generating a video within one minute based on a half-length photo of the frontal face, making the deceased person say the requested content, which takes one or two days to create. However, according to Legal Daily, the media outlet affiliated with the Central Political and Legal Affairs Commission, the lack of regulation regarding the misuse of data or the potential for fraudulent activities in case of digital resurrection, including more complicated scenarios like the creation of ghost chatbots, remains a concern. [Legal Daily, in Chinese]

On March 10, Sony China refuted recent rumors that its new smartphones may cease sales in China, affirming the stability of all its operations in the country, including its smartphone business. China remains one of Sony’s most important overseas markets, with optimistic prospects for future development, said Sony China to the state-owned media Global Times. Earlier financial reports revealed a notable downturn in revenue for Sony’s mobile communications sector during the July to September period last year, particularly concerning Xperia smartphones. Additionally, rising speculation suggests potential constraints on the availability of the upcoming Xperia 2024 series in specific regions such as the US and China. [Global Times, in Chinese]

ByteDance, the operator of the widely popular short video app TikTok, refuted claims that founder Zhang Yiming is in talks with any potential TikTok buyers, despite the company facing a key vote that leaves a total ban dilemma in the US unless it cuts ties with its Chinese parent. An earlier report by The Wall Street Journal said Bobby Kotick, former chief executive of Activision Blizzard, is seeking partners to buy TikTok and has offered the idea to OpenAI CEO Sam Altman and others. The House is expected to conduct a full vote this week on the TikTok crackdown bill, following a House committee proposed and passed the bill in a 50-0 vote on March 7. Sayings from US President Biden last week that he would sign the TikTok ban if Congress passes it fuel ByteDance’s embarrassment; however, former President Donald Trump, likely to be the Republican nominee for the 2024 race, claimed he opposed the ban because that would only help Facebook. [WSJ; Jiemian, in Chinese]

The US is considering sanctions on several Chinese tech firms, including chip manufacturer ChangXin Memory Technologies (CXMT), as a measure to restrain China’s progress in advanced semiconductors, Bloomberg reported on March 9. Sources familiar with the matter revealed that the US Commerce Department’s Bureau of Industry and Security is considering adding ChangXin to the entity list, which restricts access to US technology, alongside five other Chinese companies. Both the department and the bureau have yet to respond to this matter. On March 10, ChangXin said it specializes in producing commodity DRAM (dynamic random access memory) chips for daily consumer products, focusing on civilian and commercial applications. The company emphasized compliance with US export regulations in a statement to Reuters. [Reuters]

TikTok’s sister app Douyin has reportedly reorganized its local service department geographically into three regions – North, Central, and South districts – as competition with Meituan in the sector has entered a new phase. A fresh unit serving large national merchant chains runs parallel with the above three regions, according to Chinese media outlet LatePost. As part of the overhaul, core staff from ByteDance’s commercialization sales division are transferred to lead the four parts of the local service department, attempting to expedite the monetization process. Meituan, the biggest rival of the short video platform, has also integrated in-store services that previously operated independently into the business group led by Senior Vice President Wang Puzhong. [LatePost, in Chinese]

The Two Sessions, the annual meetings of the National People’s Congress and the Chinese People’s Political Consultative Conference, were held as scheduled in Beijing from March 5 to 11. With technical support from Alibaba’s Ant Group, the state-owned CCTV finance media branch replicated two AI anchors based on CCTV hosts Guo Ruotian and Meng Zhandong during this year’s Two Sessions. These AI anchors are available 24 hours a day to answer viewers’ questions on economics, industry, tourism, and more, providing viewers with a new visual and interactive experience. The Ant Group stated that AI anchors primarily utilize technologies such as virtual image driving, dynamic neural radiation fields, and pre-trained speech synthesis. [Ant Group, in Chinese]

Bilibili CEO Chen Rui gave a non-GAAP operating profit timeline of the third quarter this year after the Chinese video streaming company reported a net loss of RMB 1.3 billion ($182.6 million) for the three months ended December. A year-on-year growth of more than 20% both in advertising and value-added services has offset a decline in revenues from mobile games and IP derivatives and others by 12% and 51% from a year earlier respectively. The firm’s quarterly earnings were up 3% compared to the same period of 2022. Bilibili hit a daily active user milestone of 100 million during the period, which also saw users spending more than 95 minutes per day on the platform on average. Bilibili has gradually reduced its revenue sharing with content creators as it looks to achieve profitability, a shift that has partly driven more creators to engage in video and live e-commerce-related activities, with over 60,000 users participating in these during the last quarter. [Bilibili]

On Thursday, based on user expenditures in 2023, the mobile app intelligence platform Data.ai released a list of the top 50 mobile application publishers, with miHoYo making its debut in the top 10. The US leads the top 50 with 18 publishers, accounting for 36% of the total list, while China follows closely with 12 companies, making up 31% of the total share. The 12 Chinese mobile publishers, ranked in order, include Tencent, ByteDance, miHoYo, NetEase, 37 Entertainment, Lilith, Zhejiang Century Huatong Group, Alibaba Group, IM30, Ultrapower, Baidu, and Yostar. Tencent and ByteDance maintained their positions as the first and second, respectively, on the list compared to the previous year. However, NetEase dropped from fifth place to ninth place this year. [Data.ai, in Chinese]

On-demand delivery operator Dada confirmed on Wednesday that it had “overstated” revenue and costs to “meet revenue targets,” two months after the subsidiary of JD reported it identified “suspicious practices” in an internal audit. Along with the review results, Dada also announced that President Jeff He is stepping down following the “substantial completion” of the independent review, with Fu Bing, the leader of Dada Now, currently serving as interim president. The investigation found that Dada conducted virtual transactions internally in the fourth quarter of 2022 and the first three quarters of 2023, resulting in approximately RMB 568 million ($78.9 million) and RMB 576 million exaggerating in net revenue and operations and support costs, respectively, with no “direct evidence” that management-level executives “orchestrated” the transactions, according to the filing. [Dada filing]

China-made electric vehicles will be subject to a special customs registration process starting Thursday by the European Commission, meaning manufacturers will have to pay anti-subsidy duties for their EVs already imported if the EU’s ongoing probe concludes that they benefit from unfair state subsidies. The Commission said in a Tuesday statement that it had sufficient evidence to show Chinese EVs were being subsidized, and that imports had risen by 14% year-on-year since the investigation was formally launched in October, which could negatively impact European automakers. In October, Brussels officially launched an anti-subsidy investigation into Chinese battery EVs and later carried out visits to three Chinese auto majors – namely BYD, Geely, and SAIC – according to a Jan. 12 report by Reuters. The probe is set to conclude by November and the EU could impose provisional duties in July. The China Chamber of Commerce to the EU said on Thursday it was disappointed with the EU’s mandate for customs registration while an investigation remains ongoing. [Reuters, CCCEU statement]

Shares in the online retailer JD surged nearly 6% on Thursday’s Hong Kong morning trade, after the company announced fourth-quarter revenue figures that surpassed market expectations, growing 3.6% from a year prior to reaching RMB 306.1 billion ($43.1 billion). The figure marked a RMB 5.84 billion increase from the previous quarter and was primarily driven by the growth of “new users from lower-tier markets” during the period, according to CEO Sandy Xu. Chief Financial Officer Ian Shan later expressed confidence in the company’s user growth for 2024 on the firm’s earnings call, adding that cooperation with China’s Spring Festival Gala TV show had helped JD reach a broader use base. JD also announced a share repurchase program of up to $3 billion, covering US depository shares, to be executed over the next 36 months. Net income jumped 13.3% year-on-year to RMB 3.4 billion for the three months to December. [JD]

Chinese car manufacturers FAW Group, Dongfeng Motor, and Changan Automobile will have more leeway and independence in conducting their work, as the country’s state assets regulator said on Wednesday, in an effort to boost the development of electric vehicles. The new energy vehicle (NEV) businesses of the central government-controlled automakers will shortly become independent accounting units, Zhang Yuzhuo, director of China’s State-owned Assets Supervision and Administration Commission (SASAC), told reporters on the sidelines of the “Two Sessions” meetings in Beijing. This means they can ramp up research and development spending without the constraint of keeping their balance sheets healthy, as Zhang added that SASAC will check more on their technological development and market share rather than profit-making in the current period. Last year, Dongfeng and Changan reported sales of roughly 524,000 and 474,000 NEVs, respectively, which include all-electrics and plug-in hybrids, far lagging behind BYD, which sold a record 3 million units to customers. [Caixin, in Chinese]

On Tuesday, the market intelligence platform QuestMobile released the 2024 Women’s Economy Insights Report that highlights Papergames’ Love and Deepspace as January’s top otome (female-focused romance) game in China, with an impressive 6.781 million monthly active users (MAU). The other four leading otome games in the country during January were Light and Night from Tencent Games with 3.091 million MAUs, Tears of Themis from miHoYo (1.549 million MAUs), Mr. Love: Queen’s Choice from Papergames (1.21 million MAUs), and For All Time from NetEase Games (0.916 million MAUs). Released on Jan. 18, Love and Deepspace generated around RMB 600 million ($84 million) in revenue during its debut month, according to local media outlet GameLook. [GameLook, in Chinese]

Advanced Micro Devices (AMD) faces a setback in its attempt to sell an AI chip specifically tailored for the Chinese market due to US government restrictions on exporting advanced technologies to China, Bloomberg reported on Tuesday. Despite efforts to secure approval from the US Commerce Department, AMD was informed that a license from the Bureau of Industry and Security is required. Sources familiar with the matter revealed that officials raised concerns about the chip’s power, despite its compliance with US export regulations and its comparatively lower potency compared to AMD’s products offered outside China. Currently, neither AMD nor the US Commerce Department has commented on the matter. [Bloomberg]

NIO will begin selling the first model under a mass-market brand as early as September, and it would cost 10% less to make its new electric vehicle models than Tesla’s Model Y, founder and chief executive William Li told investors on Tuesday. This would give NIO “better flexibility” in pricing the first model under a project codenamed Alps, which will be battery-swappable, thanks to China’s highly-developed EV supply chain and the company’s research and development input over the past several years, Li said. Li implied that the luxury EV maker might take a more proactive pricing strategy to compete with rivals in the segment, as the new brand will target Chinese families and focus more on volume, while its NIO brand continues to be gross margin-oriented. The net loss of the Shanghai-headquartered company widened to RMB 20.7 billion ($2.9 billion) for the full year 2023 from RMB 14.4 billion a year ago, while the revenue growth was roughly 12.9%. NIO’s stock rose 2.8% to end the day at $5.48. [TechNode reporting, NIO financial report]

Researchers from Peking University have formed a small team that is aiming to “reproduce” OpenAI’s text-to-video generator Sora, according to its project page on GitHub, after the original model took GenAI to the next level following its roll out in February. Collaborating with Shenzhen-based AI firm RabbitPre, China’s top academic institution is seeking resources from the open-source community as they are “unable to conduct full training” due to a lack of video data. However, the team has developed a three-part framework – including a Video VQ-VAE, a Denoising Diffusion Transformer, and a Condition Encoder – and presented its initial progress on GitHub, with four reconstructed video demos offering different resolutions and aspect ratios, ranging from three to 24 seconds in length. [GitHub]

Li Auto shares plunged nearly 14% on Monday, partly influenced by analysts’ bleak forecasts for the order intake of the company’s first battery electric vehicle model, the Mega. The vehicle was unveiled on March 1 with a higher-than-expected price tag of RMB 559,800 ($77,756). As of Monday, Li Auto received 8-9 non-refundable orders for the Mega per shop, according to Sun Shaojun, founder of consumer behavior research agency CarFans. He mentioned that rivals are “experiencing a return of customers” for similar offerings after the product launch. With a network of 467 retail locations as of December, Li Auto has accumulated a backlog of around 4,000 non-refundable orders over the weekend. In comparison, Aito, a premium EV brand launched by Huawei and its manufacturing partner Seres, reported over 20,000 pre-orders with non-refundable deposits for its RMB 469,800-priced, full-size M9 crossover two days after the launch on Dec. 28. Jefferies analysts, on Sunday, “conservatively” estimated monthly sales of the Mega to reach 3,000 units, significantly lower than the company’s delivery outlook of 8,000 units. [Sun Shaojun post, in Chinese, TechNode reporting]

Tech giants Alibaba and Tencent appear to have further frosty relations as WeChat users are now allowed to join DingTalk meetings directly via the messaging app, DingTalk announced in a statement on Monday. This move breaks with the previous common practice of banning rivals from sharing links and services on their platforms. WeChat retains only core features, including mute & unmute options, camera control, friends invite, and view meeting members, in an attempt to create a “light, fast, and easy” online meeting experience. The latest development comes shortly after Alibaba-owned Taobao added WeChat Pay as a long-awaited option for shoppers placing orders. [DingTalk, in Chinese]

Stricter rules for China’s courier industry that stipulate that delivery workers are banned from putting parcels in end-of-service facilities without user consent have fueled riders’ anger as they claim the new measures will lengthen their work hours. Effective from March 1, the new rules will see violators face fines of up to RMB 30,000 ($4,167). While the new rules have been broadly welcomed by consumers, a number of couriers have complained about the increased costs of delivering every parcel to shoppers’ doors rather than placing them in locally-based storage facilities. According to local media outlets, major express delivery firms JD Express, Cainiao, and SF Express have all claimed that on-site delivery is one of their standard services in response to the new rules, while logistics companies with relatively slow timelines such as STO Express and ZTO Express noted they would strictly implement the relevant regulations. [NBD, in Chinese]

The China-Thailand reciprocal visa exemption agreement, effective on March 1, allows holders of ordinary passports from each country to visit the other visa-free for up to 30 days per entry, with a cumulative stay of 90 days per half year. Signed on Jan. 28, the agreement promotes bilateral tourism and cooperation. In January, bookings on China’s travel service platform http://Trip.comTrip.com> Group for March trips to Thailand quadrupled over December 2023. Over 30% more Chinese visitors arrived in Thailand this March 1 than on the same day last year, according to the Chinese People’s Political Consultative Conference (CPPCC). In the first two months of this year, Thailand welcomed over a million Chinese tourists, re-establishing China as its primary inbound tourism contributor. [CPPCC, in Chinese]

On March 2, Fudan University’s Natural Language Processing Laboratory (FudanNLP) launched the AI-based app Hearing the World, which is designed for visually impaired individuals as an intelligent life assistant. Built upon the multi-modal model Fudan MouSi, the app merges a single camera with headphones to transform images into audio for various scenarios and alerts. The Hearing the World app offers three modes: Street Navigation, Free Inquiry (exploration of spaces such as museums, art galleries, and parks), and Object Finder. In March, the app will complete its first round of testing and launch pilot programs in major cities across China, according to the team. [Fudan University, in Chinese]

Alibaba’s food delivery head Yu Yongfu is scheduled to step down on the last day of March, coinciding with the end of the company’s 2024 fiscal year, as part of a recent management overhaul at the tech giant. Over three years, Yu has been in charge of Alibaba’s local life sector, which includes Ele.me and Amap. During Yu’s tenure, Ele.me has “positioned itself clearly amidst fierce market competition,” while mapping service Amap “became a deserved industry leader,” CEO Eddie Wu wrote in an internal Alibaba memo cited by the Chinese media outlet LatePost. Wu’s memo noted that Yu will remain as a partner at Alibaba and is set to utilize the e-commerce giant-backed eWTP fund to seek international opportunities and expansion through investments. Yu’s present position is set to transition to younger leadership, with the current chief technology officer of the Local Service Group Wu Zeming set to take over as chair of Ele.me, and the Amap chair role to be filled by Amap President Liu Zhenfei. [LatePost, in Chinese]

Shanghai-based grocery company Dingdong Maicai on Thursday reported a 19.5% drop in fourth-quarter revenue largely due to its retreat from several cities in pursuit of profit. A fifth straight quarter of non-GAAP profitability was recorded during the period, totaling RMB 16.3 million, but the firm’s net loss saw a jump to RMB 4.4 million, contrasting with a net income of RMB 2.1 million in the previous quarter. “This year’s results already show that we are close to surviving, Dingdong currently stands out as the only profitable company among the industry’s top players,” chief executive Liang Changlin said on the corresponding earnings call. The company’s revenue stands at RMB 4.99 billion for the three months ended December, according to the earnings report. [Dingdong Maicai]

Li Auto launched its first all-electric model, the Mega, on Friday, aiming to capture a larger share in a high-growth segment of China’s fiercely competitive car market. CEO Li Xiang stated that CATL’s latest battery technology provides the 5.3-meter long multi-purpose vehicle with a driving range of 710 kilometers (441 miles) between charges and a quick 12-minute refuel for an additional 500 km range. With an exterior resembling the bullet-style look of China’s high-speed railway, the van boasts the largest cabin space among competitors, featuring an effective interior length of 3,791 mm, surpassing Toyota’s Alphard at 3,470 mm. The Beijing-based automaker plans a software update by June, enabling the vehicle to autonomously park and change lanes on Chinese expressways. Priced at RMB 559,800 ($77,756), the Mega is scheduled for delivery on March 11. Multi-purpose vehicle sales increased 15.9% YoY to around 1.1 million units last year, outpacing SUVs (10.3%) and sedans (0.4%), according to the China Passenger Car Association. Li Auto, having sold 376,030 extended-range hybrid EVs in 2023, aims to double deliveries with the launch of four battery EVs and one EREV model this year. [TechNode reporting]

Chinese automakers are increasingly in the crosshairs of Western governments as they speed overseas expansion with their technology-packed, price-competitive electric vehicles. US President Joe Biden said on Thursday that he has instructed the Commerce Department to begin an investigation over potential national security hazards from Chinese car exports, including EVs, on fears that in-car software and equipment could collect and send sensitive information to Beijing. The move comes months after administration officials had conversations with US automakers, including Tesla, last fall, which said they have faced significant restrictions in selling cars in China, such as tightened rules against data transmission and cloud services. The probe, which will be open for public comments for 60 days, could lead to new restrictions on Chinese cars, which have already been subject to a 25% tariff since 2018, resulting in few Chinese vehicles available to the US market. The White House also passed the Inflation Reduction Act into law last year to strengthen the local supply chain, with China-made EVs and components being ineligible for federal tax credits. Separately, the European Commission, in September, began investigating China-made electric vehicles, which President Ursula von der Leyen said could have enjoyed “huge state subsidies” from Beijing. [New York Times, Reuters]

Alibaba’s cloud computing unit cut prices of its core products by as much as 55% beginning Thursday, a move that the company hopes will help “spur artificial intelligence growth in China.” “As the biggest cloud service provider in China and APAC, we see tremendous growth prospect of China’s digital market,” said Liu Weiguang, president of public cloud business at Alibaba Cloud. Covering more than 100 public cloud services, the large-scale price slash comes nearly a year after the e-commerce giant’s cloud business announced price cuts from 15% to 50%, which soon kicked off a price war within the public cloud market. Discounts also apply to undelivered orders from existing customers, according to Liu, a different approach to the one the tech giant has taken in the past. [Alibaba Cloud, in Chinese]

BYD has rolled out cheaper versions of its popular Dynasty and Ocean electric vehicle series in the last two days, making de facto retail price reductions of between 7% and 14%, a move that could put more pressure on rivals to follow suit. China’s biggest EV maker said Thrusday it will sell the Honor Edition of the plug-in hybrid version of the Seal sports sedan with a starting price of RMB 149,800 ($20,822), compared with the RMB 166,800 price tag of the so-called Champion Edition launched last May. In a related move, the base price of its best-selling Song Plus has been lowered to RMB 129,800 from RMB 149,800 with the launch of a PHEV trim that can go 71 kilometers (44 miles) on battery power alone. Meanwhile, the other new variants of the five-seater SUV are now priced RMB 20,000 lower than their 2023 counterparts. The price cuts come just one day after the automaker began offering cheaper versions of its higer-priced Han sedans and Tang sports utility vehicles, which now start at RMB 169,800 and RMB 179,800, reductions of 10.5% and 14.3% respectively from their previous prices. BYD’s action on Feb. 19 kicked off a price war in the Chinese car market when the company launched a version of its budget Qin compact sedan with a base price that was RMB 20,000 less than the regular model. [TechNode reporting]

ByteDance is secretly developing various AI-model-based products, including a multi-modal digital human product (an AI-generated image/video product), according to multiple sources cited by local media outlet Jiemian. CapCut, a video editing tool and subsidiary of the TikTok owner, established a confidential team several months ago for the development of AI products, but the resulting products have not yet been unveiled. In February, the former CEO of TikTok’s China sibling Douyin, Zhang Nan, moved to the CapCut team and stated that she would focus her energy on the future development of CapCut, as part of ByteDance’s attempt to strengthen its position in the field of AI-generated video through the platform. [Jiemian, in Chinese]

A LinkedIn account verified as belonging to an Apple employee indicates that Apple has begun designing chips based on TSMC’s 2nm process technology. Currently, TSMC is advancing the 2nm process node, with the first batch of equipment planned to enter production in April 2024. TSMC’s 2nm process will undergo risk trial production this year, with mass production scheduled for the latter half of 2025, according to the media outlet IThome. Moreover, TSMC has reportedly initiated research and development on advanced 1.4nm chips, for which the earliest expected release is in 2027. There are also reports suggesting that Apple is seeking to reserve capacity for TSMC’s 1.4nm and 1nm process technologies. [IThome, in Chinese]

China’s state TV broadcaster aired an AI-created cartoon series, Qianqiu Shisong, starting on Monday, with the 26-episode series a “two-way run-through of Chinese poetry and artificial intelligence,” according to a statement by show partner Shanghai Artificial Intelligence Laboratory (SAIL) on its official WeChat account. The cartoon draws inspiration from classic Chinese poems to narrate its storyline, and aspects of production – from art design to video generation and post-production – are supported by China Media’s CMG Media GPT and Shanghai AI Lab’s technology, the article stated. The debut of the series comes days after the state-owned Assets Supervision and Administration Commission called on SOEs to accelerate the layout and development of China’s artificial intelligence industry. [Shanghai AI Lab, in Chinese]

A total of 111 games were approved by the National Press and Publication Administration of China (NPPA) on Tuesday, including Black Myth: Wukong. Developed by Chinese developer Game Science, Black Myth: Wukong is an action role-playing game based on Journey to the West, one of Chinese literature’s four great works. The game is set to launch on August 20, 2024, and can already be wishlisted on Steam and the Epic Games Store. The number of domestic game approvals has exceeded 100 for three months in a row. [NPPA, in Chinese]

In an SEC filing, Chinese e-commerce company Alibaba revealed that a dozen of its entities are partly owned by the country’s state-owned enterprises or foreign sovereign wealth funds, showing extensive Chinese government ties in Alibaba’s vast and complicated business empire. The Hangzhou-based company also mentioned that one of its six entities in direct sales businesses has Chinese government ownership of no more than 30%, while the remaining five were below 10%, and those branches account for less than 6% of Alibaba’s total revenue for the fiscal year ended March 31, 2023. The Taobao owner’s sports-related business, in which the government has a 25% stake, generated only 0.05% of the company’s revenue, while two logistics entities in which the government records a 73.5% ownership did not contribute to revenue during the period. [Alibaba filings]

On Tuesday, Shenzhen’s Ministry of Industry and Information Technology announced the successful completion of a trial flight for a locally-developed eVTOL (electric vertical takeoff and landing) craft, which traveled from Shenzhen Shekou port to Zhuhai Jiuzhou port in southern China. The demonstration flight took 20 minutes, compared to a one-way travel time of 2.5 hours by car, and used Fengfei Aviation Technology’s self-developed aircraft named Shengshilong. The Shengshilong model boasts a maximum takeoff weight of 2,000 kilograms, a payload capacity of 400 kilograms, and a maximum range of 250 kilometers, according to the Shenzhen MIIT’s announcement. With a max speed of 200 kilometers per hour, the craft can accommodate up to five passengers. Compared to helicopters, eVTOLs have advantages such as enhanced safety, reduced passenger costs, lower maintenance expenses, reduced noise levels, and elevated levels of intelligence, positioning them as a potentially crucial segment in the future urban air transportation industry. No details regarding any possible commercial operation of the route were announced. [Shenzhen MIIT, in Chinese]

Alibaba is back on track to be one of the top e-commerce players in China, chairman of the company Joe Tsai said in a CNBC interview, arguing that “the restructuring and new management in place” had boosted confidence in the Chinese tech giant. Tsai acknowledged that competition on price in the e-commerce sphere is “definitely there,” and Alibaba has to learn a few lessons from its competitors, but stated that “the good thing is that it can be done, it’s within our control.” In the interview, he also said that the IPO plan for the firm’s cloud computing unit, which stalled in November amid US chip restrictions, would make more sense when investor sentiment was higher. [CNBC]

Chinese electric vehicle maker Hozon Auto has reportedly been preparing for an initial public offering in Hong Kong since late last year. A number of cornerstone investors, who commit in advance to invest a fixed amount of money or purchase a fixed number of shares in an IPO, have subscribed for about RMB 2 billion ($278 million) in total, D1EV reported on Monday. The Shanghai-headquartered automaker has worked with several major investment banks, including Morgan Stanley and China International Capital Corporation (CICC), for a stock market listing that could raise up to $1 billion, according to a Sept. 1 report by Reuters. Hozon, also known as Neta and backed by Chinese batter giant CATL, delivered roughly 127,500 EVs last year, representing a 16% decline compared with 2022. In a post published on Feb. 24 on the Chinese Twitter-like platform Weibo, which was later deleted without explanation, chief executive Zhang Yong mentioned plans to review staff rosters to determine who will stay in place and who will be laid off as part of a cost-cutting drive. [TechNode reporting, D1EV, in Chinese]

Chinese grocery app Dingdong Maicai closed dozens of operational sites in Shenzhen and Guangzhou at the end of January, which the company claimed is “a regular operational optimization,” according to the local media outlet Southern Metropolis Daily. The report added that the spokesperson for Dingdong Maicai didn’t respond to the question of how many sites remain after 38 sites were suspended in the two major cities of Guangdong. The New York-listed company’s shares have been trading below $1.50 since February and have continued to sink, now approaching $1, signaling its risk of delisting. [Southern Metropolis Daily, in Chinese]

Shares of Li Auto surged 19% on Monday after the Chinese electric vehicle startup generated record-breaking revenue and became the first among equals to post its first annual profit, in sharp contrast to rivals that are still bleeding cash despite cost-cutting measures. The Beijing-based EV maker disclosed a profit of RMB 11.8 billion ($1.66 billion) for 2023, compared with a loss of about RMB 2.03 billion a year earlier, as it achieved economies of scale by delivering a record 376,030 extended-range EVs. Revenue for the three months ended Dec. 31 also beat Wall Street expectations of RMB 40.2 billion, coming in at RMB 41.73 billion. Meanwhile, management has offered an ambitious target of selling between 650,000 and 800,000 units for this year, which could represent a year-on-year growth of at least 73%. Although its first-quarter outlook implies a quarter-on-quarter decline of at least 22%, the company said the product lineup will be expanded to eight models, including four purely EVs, from currently three hybrid electric crossovers by the end of this year. [Wall Street Journal, Li Auto earnings report]

In the three months ended in December, Luckin Coffee’s profit margin dropped 10.3% compared to the previous quarter due to low-price competition with rival Cotti Coffee having no sign of abating. The Chinese chain recorded a 3.9% profit margin, also a 7.6% decrease from a year earlier, which the company’s investor relations head Guo Jinyi attributed to seasonal factors and that decline aligns with “the objective industry trends” in the earnings call. Meanwhile, its revenue nearly doubled to RMB 7.06 billion during the period and surpassed Starbucks by $260 million, marking the third straight quarter that Luckin outpaced its once-biggest rival. [TechNode reporting]

NIO’s battery swap stations have been part of a virtual power plant pilot program in Denmark. The recharging equipment for electric vehicle batteries, combined with energy storage systems, recently started discharging from batteries and delivering grid services during peak demand hours. Shen Fei, a senior vice president at NIO, revealed this information on Sunday on the Chinese Twitter-like platform Weibo. Such moves could ensure a stable power grid by balancing load peaks, and each swap facility could generate revenues measured in “dozen of thousands of euros,” Shen added, potentially offloading these capital-intensive assets. The Chinese EV maker operates 39 swap stations in five European countries, including Denmark, Norway, and Germany as of Feb. 22. It plans to expand its network of swapping facilities in China by adding at least 1,000 this year, up from 2,316 as of Dec. 31. [TechNode reporting, Shen Fei Weibo post, in Chinese]

NetEase plans to launch the open-world martial arts role-playing game “The Legend of the Condor Heroes” on March 28, with the goal of recreating scenes from Jin Yong’s original martial arts novels. The new game features the adventure story from Jin Yong’s Condor Heroes trilogy, including “The Legend of the Condor Heroes,” “The Return of the Condor Heroes,” and “The Heaven Sword and Dragon Saber.” The launch-date announcement became a trending topic on the Twitter-like platform Weibo on Feb. 22, as the NetEase team has been developing the game for over six years and invested over one billion RMB (RMB 139 million) in the budget. As of now, the game has nearly 10 million reservations on its website. [NetEase Games, in Chinese]

US chip giant Nvidia recently identified Huawei as its major competitor in filings submitted to the US Securities and Exchange Commission (SEC). Nvidia stated in the report that Huawei supplies GPU (graphics processing unit) accelerators, central processing units, and networking components to the market, making it one of the solution providers for AI-related cloud services. The Chinese AI component market, valued at $7 billion, presents a significant growth opportunity for Huawei due to restrictions imposed by the US government on Nvidia’s exports to China, according to industry analysis. Nvidia’s A100 counterpart – Huawei’s Ascend 910B, which utilizes its self-developed Ascend architecture and 7nm process technology, features 256 AICore and 32GB of HBM2 (High Bandwidth Memory 2). Other competitors mentioned by Nvidia include Intel, AMD, Broadcom, Qualcomm, Amazon, and Microsoft. [IThome, in Chinese]

BYD on Sunday rolled out its first electric sports car the Yangwang U9, which boasts a staggering 1,300 horsepower and sprint time of 0 to 100 km/h (62 mph) in 2.36 seconds. The vehicle comes with a price tag of RMB 1.68 million ($233,352). The two-seater sports car has four independent electric motors for each wheel and features the firm’s proprietary body control suspension system, which the automaker said can ensure a smooth ride through corners with a lot less body roll compared to its gasoline-powered counterparts. Scheduled for delivery in mid-2024 (for now, only in China), the U9 also promises affluent Chinese consumers unconventional features and flexible suspension setups, allowing it to bounce and jump off the ground in several “dancing styles.” Meanwhile, the car is capable of parking itself in a tight parking space, relying on a sensing suite of 12 ultrasonic radar units, eight cameras, and four laser sensor units. [BYD announcement, in Chinese]

Li Yizhou, a Tsinghua University-educated content creator in AI, has had his educational WeChat mini-program suspended after user anger over “low-quality” content and excessive advertising. Priced at RMB 199 for livestreaming viewers, his pre-recorded 40-lesson series, with the lessons mostly under ten minutes each, had already sold over 200,000 copies. The account removal comes shortly after Li was dubbed by netizens “the only Chinese figure in the AI sector comparable to Altman, CEO of OpenAI.” Neither WeChat nor Li himself has publicly mentioned the reason for the removal of the mini-app. Meanwhile, LiblibAI, China’s largest AI creation-sharing community, accused Li of infringing on models through a website controlled by his company. LiblibAI demanded that Li cease the alleged infringement immediately and engage in prompt negotiations with the platform and original creators over compensation, according to local media reports. [Jiemian, in Chinese]

Fueled by the solid recovery of domestic and international tourism markets, China’s online travel service provider Trip.com saw its fourth-quarter net revenue grow by 105% to RMB 10.3 billion compared to the same period in 2022, but the company’s net income dropped 38% to RMB 1.3 billion from a year earlier. Despite that, the Nasdaq and Hong Kong-dual-listed firm broke records in full-year profit last year, experiencing a sevenfold rise to RMB 10 billion from RMB 1.4 billion in 2022. “Our business has fully rebounded to pre-Covid levels as of 2023,” CEO Jane Sun said in the earnings call, adding that Trip.com will stop using 2019 as a benchmark from this year. In the three months ended in December, Trip.com’s revenue from accommodation reservations, which accounted for the largest share at 38% of total sales, grew 131% in the period, and packaged-tour earnings reported a 329% year-on-year increase. [Trip.com]

Shares of Shenzhen-listed software company Sinodata hit the daily increase limit on Wednesday afternoon during the trading session after announcing it will get priority access to the API for OpenAI’s Sora model when it is available on Azure, through a deal with Microsoft. Several hours later, the Shenzhen Stock Exchange asked the company to explain the specific meaning of Sora API subscription eligibility. However, Sinodata’s stock price reached the maximum daily limit on gains at the opening of today’s trading session due to investor frenzy fueled by OpenAI’s text-to-video model Sora. According to the Beijing-based firm’s statement on WeChat, Sinodata is an official member of Microsoft’s AI Cloud Partner Program, with both parties having an “extensive discussion” on the multi-scenario application of Sora in the fields of China’s banks, e-commerce, and web dramas on Tuesday. [Sinodata, in Chinese]

The Huya Esports All-Star Spring Tournament, hosted by Huya and co-sponsored by Douyu, Bilibili, and Kuaishou, will kick off tomorrow. The tournament features a lineup of popular domestic players, including Uzi, TheShy, Puff, and jjking, making it the first major esports event after the Chinese Lunar New Year holiday (Feb. 9 – Feb. 17). Pro players and esports celebrities will unite to offer fans an event that organizers say will blend skill with entertainment, during which the tournament will broadcast various games such as League of Legends, Honor of Kings, and PUBG Mobile. Esports became a medal event in the 2022 Asian Games held in Hangzhou, China in 2023, boosting the discipline’s bid for recognition as a legitimate sport. [The Cover, in Chinese]

Haomo.ai, a self-driving car company backed by Chinese automaker Great Wall Motor, has secured a RMB 100 million ($13.9 million) investment from Chengdu Wufa Private Equity Fund Management Co., Ltd., a venture capital firm wholly-owned by the government of Chengdu’s Wuhou district. In return, the company will facilitate the commercial deployment of robots for public sanitation and security inspection in the downtown area of the southwestern municipality, making Wuhou a “demonstration zone for robotics in China,” Haomo.ai Chief Executive Gu Weihao said on Thursday in a statement. A fleet of delivery robots operated by the Beijing-based startup has transported nearly 300,000 grocery parcels for supermarkets in the Chinese capital, and its advanced driver assistance system, the HPilot, has enabled roughly 20 car models to automatically change lanes on expressways. [TechNode reporting, Haomo.ai, in Chinese]

Huawei said on Thursday that it has deepened its partnership with state-owned automaker Dongfeng Motor, allowing its smart and connected vehicle technology to be integrated into the latter’s rugged-looking off-roader under the premium Mengshi electric vehicle brand. Dongfeng, a Chinese manufacturing partner of Stellantis, launched the Mengshi 917 in August, the first model under the lineup partly inspired by the introduction of General Motors’ GMC Hummer EV. Deliveries of the vehicle, with a starting price of RMB 637,700 and RMB 697,700 ($88,640 and $96,980) in plug-in hybrid and all-electric options respectively, began in September, and were expected to reach between 1,000 and 1,200 units as of last year. Dongfeng has previously produced several internal combustion engine-powered military vehicles under the Mengshi badge since 2002. The news comes weeks after Huawei, in January, announced its plan to sell Dongfeng components and software for future Voyah EVs, a lifestyle luxury EV brand rolled out by the automaker in 2021. [Huawei announcement, in Chinese]

TikTok sibling Douyin is pushing “price competitiveness” as a priority task for its e-commerce business this year, according to a Wednesday report by Chinese media outlet LatePost, deepening the short video platform’s head-to-head confrontation with rival Pinduoduo. The report quoted a source close to Douyin as saying the platform will give more traffic to low-priced items in its “marketplace” channel and short video feeds, while livestreaming will continue to serve as a major way for promoting brand-focused and high-unit-price goods. It was also reported that Douyin has set a goal of exceeding RMB 3 trillion in gross merchandise volume in 2024, which would amount to a 36% increase from the previous year, but the company said that this figure was “untrue.” [LatePost, in Chinese]

In the fourth quarter of 2023, China’s tablet market saw shipments of around 8.17 million units, representing a year-on-year decrease of 5.7%, according to market intelligence firm IDC. Meanwhile, Huawei (30.8% market share) surpassed Apple (30.5%) to become the top seller in the Chinese tablet market. Compared to the same period last year, the market share of tablets priced below RMB 2,000 ($279) increased significantly in the fourth quarter, while that of higher-priced products above RMB 4,000 ($557) witnessed a rapid decline. In the full year of 2023, the tablet shipment in China decreased by 4.5% year-on-year, with the top five brands being Apple (33.6% market share), Huawei (26.5%), Xiaomi (10.4%), Honor (8.0%), and Lenovo (6.2%). [IDC, in Chinese]

Ningbo Semiconductor International Corporation (NSI), a subsidiary of China’s leading chip company Semiconductor Manufacturing International Corporation (SMIC), issued a statement on Tuesday stating that former executives Huang He and Wang Ying were sentenced to four years of imprisonment by the Beilun District People’s Court of Ningbo city for embezzlement. NSI has been receiving inquiries from various parties regarding whether settlements have been reached with the defendants after the first-instance verdict, handed down on Nov. 14, 2023, as revealed by the statement. The company reaffirmed its commitment to respecting judicial fairness and underscored that it will not engage in any settlements with Huang He and Wang Ying. Huang He, a founding veteran who joined SMIC in 2002, relocated to Ningbo along with dozens of core team members upon the establishment of NSI in 2016. [Icsmart, in Chinese]

Stellantis is exploring the potential to manufacture as many as 150,000 affordable electric vehicles annually in Italy with its Chinese partner Leapmotor. This could happen as early as 2026 or 2027 at a historic Fiat plant in Mirafiori, Turin, according to Automotive News Europe, citing two people familiar with the matter. The world’s third-largest automaker by revenue is preparing for possible production at the facility, set to suspend the production of Maserati Levante crossovers by the end of March and no longer make petrol-powered Fiat New 500 after late 2026, the report said. During an earnings call last week, Stellantis Chief Executive Carlos Tavares told investors the automaker could produce Leapmotor cars in Italy “if there was a good business case for that.” The Franco-Italian automaker completed its €1.5 billion (nearly $1.6 billion) investment for a roughly 20% stake in the Zhejiang-based and Hong Kong-listed EV startup in November. [Automotive News Europe]

AMD plans to mass-produce its Zen 5 chips in the third quarter of 2024, continuing its collaboration with TSMC, according to Taiwanese media outlet United Daily News. AMD collaborates with TSMC to outsource the production of the Zen 5 chips, as the US chip company aims to enhance its presence in AI terminals and expand its market share in desktops, laptops, and servers. AMD has increased its orders with TSMC, focusing on the 3nm, 4nm, and 5nm processes, after the launch of the MI300 series AI accelerator cards. Industry analysts anticipate that the 3nm Zen 5 architecture will enter trial production in the second quarter of 2024, with mass production expected in the third quarter.[IThome, in Chinese]

China’s Foreign Ministry on Monday expressed concern over the European Union’s investigation into suspected distortive subsidies for Chinese train maker CRRC Qingdao Sifang Locomotive, calling for “prudent” use of regulatory tools from the EU authorities. The probe, announced on Feb. 16, is the first of its kind under the EU Foreign Subsidies Regulation which came into full effect in October. The EU executive is checking whether the unit of state-owned train manufacturer CRRC Corporation has benefited from unfair non-EU subsidies and made “an unduly advantageous offer” in bidding for a €610 million ($657 million) Bulgarian public procurement contract for 20 electric trains. China hopes the EU will provide a “fair, just and non-discriminatory” environment for Chinese companies, ministry spokesperson Mao Ning told a regular press briefing on Monday. Separately, Brussels in October launched another anti-subsidy investigation into Chinese electric vehicles with automakers including BYD, Geely, and SAIC among the targets. [TechNode reporting, China’s Foreign Ministry transcript]

Nvidia has reportedly hired multiple high-performing ex-Xpeng Motors employees to be part of its automotive team in China. The US chip powerhouse is preparing to meet the growing consumer appetite for automated driving functions with more localized chip solutions and client services. Patrick Liu, who was a director in charge of artificial intelligence and computer vision at Xpeng until mid-2023, will soon join Nvidia China to be part of the leadership team working on advanced driver assistance systems similar to Tesla’s Full Self Driving Beta program. Individuals with knowledge of the matter told local media outlet AutoR on Sunday that the US chipmaker has expanded its autonomous driving team by more than 100 new employees over the past two months. Liu is among several top talents with relevant experience at Xpeng recently hired by Nvidia, including Zhuang Binnan, previously a principal engineer at Xpeng until late 2022 and most recently a senior engineer at General Motors’ robotaxi unit Cruise. The hiring follows the high-profile move in August from Xpeng to Nvidia of Wu Xinzhou, a former vice president at the electric vehicle maker.[AutoR, in Chinese]

Moonshot AI, a one-year-old artificial intelligence venture founded by Tsinghua University graduate Yang Zhilin, is valued at $2.5 billion after a $1 billion round of fundraising recently. Investors, including venture capital firm Hongshan, Instagram-like Xiaohongshu, Meituan, and Alibaba, were reported by Chinese media outlet 36Kr on Monday. According to Moonshot AI’s official site, the core members of the founding team have participated in the research and development of multiple LLMs, such as Google’s Gemini and Bard, as well as Huawei’s Pangu NLP. It is also mentioned that a number of its core technologies have been adopted by Google PaLM, Meta LLaMa, and Stable Diffusion. The Beijing-based firm currently provides access to its only ToC product – a ChatGPT-like bot named Kimi.ai – on its website, describing the tool as capable of reading a 200,000-word novel in one sitting. [36Kr, in Chinese]

Chinese e-commerce company JD confirmed it is considering buying Currys after the UK’s electrical retailer rejected a £700 million offer from US fund management firm Elliott Advisors. As the inflation crisis in the UK hurt consumer spending affecting Currys’ sales, which include everything from laptops and TVs to washing machines, the hundred-year-old company saw a pre-tax profit blow in the fiscal year that ended April 29, 2023, drop to £119 million from £192 million a year earlier. In a regulatory filing, JD said it is “in the very preliminary stages of evaluating a possible transaction that may include a cash offer for the entire issued share capital of Currys.” [Reuters]

BYD’s launch of lower-cost variants of its electric vehicles is forcing some other Chinese automakers to follow suit as they try to stay competitive in an increasingly fierce battle in the world’s biggest auto market. SAIC-GM-Wuling, a General Motors China joint venture, on Monday announced it would cut pricing on its Wuling Starlight higher-end version by RMB 6,000 ($833), lowering the price tag of the plug-in hybrid sedan from RMB 105,800 to RMB 99,800 ($13,862). Meanwhile, the starting price for the Qiyuan A05, a similar PHEV offering from state-owned automaker Changan Automobile, was slashed from nearly RMB 90,000 to RMB 73,900. The biggest cut of all so far comes with the Neta X, launched by Chinese EV startup Hozon, also known as Neta Auto, with pricing for the compact crossover dropped by RMB 20,000. The Zhejiang-based EV maker also introduced a new cheaper version with a price tag of RMB 99,800, some RMB 5,000 less than the existing variants. BYD on Monday rolled out a new version of its budget Qin car, bringing the price tag of the popular lineup down by 11% to RMB 79,800. [TechNode reporting, The Paper, in Chinese]

474 million domestic trips were made during China’s longer-than-usual Spring Festival holiday, with the number jumping 34.3% from last year and marking a 19% increase compared to 2019, according to the Ministry of Culture and Tourism. Domestic travel spending grew by 47.3% to RMB 632.7 billion across the eight-day break, hitting a record high. The national-level department does not give specific data on per capita tourism expenditures. However, the number of Chinese tourists traveling abroad amounted to 3.6 million, still less than 60% of the figure for the same period in 2019, data from the National Immigration Administration shows. [People’s Daily, in Chinese]

The Xiaomi Civi 4 recently obtained the network access license from the Ministry of Industry and Information Technology (MIIT) of China, identified with the model number 24031PN0DC. This reveals Xiaomi’s intention to equip the Civi 4 with satellite connectivity in addition to 5G support. Currently, specifications beyond this feature remain undisclosed. The upcoming Civi 4 smartphone, targeted at the youth group in the Chinese market, is set to debut in May, as revealed by tech blogger Smart Pikachu. The Civi series is expected to rival Huawei’s Honor series, both of which are mid-range smartphones. According to the performance benchmarking platform Geekbench, Xiaomi may select either a Qualcomm Snapdragon 7 Gen 3 or a MediaTek Dimensity 8300 Ultra chipset for the device. [IThome, in Chinese]

Luckin Coffee has narrowed the RMB 9.9 beverage offer that previously applied to all drinks in its stores to eight standard beverages, nearly nine months after the coffee chain launched the price-cut promotion to celebrate hitting the milestone of 10,000 stores in China in June. With the campaign “exceeding expectations,” Luckin CEO and co-founder Guo Jinyi committed to continuing the offer for at least two more years when the company released its earnings report in August. However, the company saw its profit margin drop 5.5% to 13.4% in the third quarter last year. According to local media reports, Luckin Coffee’s customer service said the promotion is “ongoing” but that the participating stores and applicable drinks “may be adjusted to a certain extent depending on the execution of the campaign.” [Jimu News, in Chinese]

On Feb. 18, Chinese phone brand Meizu announced a strategic adjustment to cease its traditional smartphone business and transform into AI terminals. Meizu currently possesses the capability for a full-scale transformation into the AI field after two years of team integration, resource allocation, product layout, and research on relevant technologies, according to Meizu CEO Shen Ziyu. He added that the company owns well-established hardware and software teams, providing technical support and service assurance for its AI initiatives. Software and hardware maintenance services for current Meizu smartphone products will proceed as usual. Users who have purchased Meizu 20 series or Meizu 21 smartphones will continue to receive after-sales support and related service assurances. [Meizu, in Chinese]

On Friday, Chinese phone brand OnePlus announced it will refund users who have purchased the OnePlus 12R 256GB model, after the company recently confirmed that all models of the OnePlus 12R are equipped with UFS 3.1, not the previously claimed UFS 4.0, the highest level currently available. UFS (Universal Flash Storage) is a high-speed flash storage standard used in smartphones for faster data transfer and access. During the OnePlus 12R launch in January, the company introduced the Trinity Engine, a new set of software algorithms aimed at ensuring fast and smooth operation of phone memory and storage. However, OnePlus mistakenly claimed that the storage enhanced by the Trinity Engine in certain versions would be UFS 4.0, when in fact it is UFS 3.1. Those who purchased the device have been told to contact customer service, with the refund deadline set for March 16, 2024. [OnePlus Community]

On Feb. 17, China Eastern Airlines’ C919 aircraft arrived at Singapore Changi Airport after a nearly 6-hour, approximately 4,200-kilometer non-stop flight, according to state-owned media outlet CCTV News. The aircraft was developed by the Commercial Aircraft Corporation of China and is set to participate in the Singapore Airshow 2024 from Feb. 20-25. At 8:04 pm Beijing time on Feb. 16, the C919 aircraft, China Eastern Airlines’ first global model, had departed from Shanghai Hongqiao Airport and embarked upon its MU299 flight to Singapore. During the upcoming airshow, five Chinese-produced aircraft, including the C919, will make their overseas debuts, engaging in flight demonstrations throughout the event. [CCTV News, in Chinese]

BYD will slash the price of its already affordable Qin compact sedan with the launch of a lower-cost version that could be priced as low as RMB 79,800 ($11,092), some RMB 20,000 less than the regular model, according to Sun Shaojun, founder of consumer behavior research agency CarFans. This means the popular electric vehicle will reach the same price level as similar internal combustion engine models such as the Nissan Sylphy, which could deepen an already fierce price war in the world’s biggest car market. The Nissan Sylphy was the top-selling compact sedan over the last 12 months in China with nearly 383,000 units sold, closely followed by Volkswagen’s Lavida and the plug-in hybrid version of the BYD Qin, figures compiled by Chinese auto service platform Dongchedi showed. Another cheaper version of BYD’s Chaser 05 affordable sedan, currently priced from RMB 101,800, will also be launched soon, Sun added on Feb. 16 on the Chinese Twitter-like microblogging service Weibo, without revealing further details. [TechNode reporting, Sun Shaojun’s Weibo post, in Chinese]

Chinese major automakers SAIC-GM-Wuling and Changan Automobile are offering steep festival discounts for their electric vehicles in the hope of boosting demand as the world’s biggest car market is expected to see a seasonal demand lull during the Lunar New Year holiday season. General Motors’ China joint venture said on Thursday that prices for its small, affordable Wuling Bingo EVs would be reduced by up to RMB 8,000 ($1,112) by the end of March, representing a discount of 10% from previous prices. Meanwhile, the starting price for the Deepal S7 all-electric sedan, a midsize crossover launched by state-owned Changan, was reduced by RMB 10,000 to RMB 169,900. Sales of new energy passenger vehicles, including battery EVs and plug-in hybrids, declined by almost a third to roughly 668,000 units in January from December, according to figures published by the China Passenger Car Association. The industry group warns China to report its lowest EV sales figures over the year in February, as the week-long Spring Festival holiday that ends on Saturday cut working days and limited buying interest. [TechNode reporting, Wuling and Changan announcements, in Chinese]

Auntea Jenny has joined China’s fruit teas IPO queue in Hong Kong, following peers ChaPanda, GoodMe, and Mixue, in a bid to increase the funding scale amid intensifying industry competition. The Shanghai-founded beverage chain filed its prospectus to the Hong Kong Stock Exchange on Wednesday, with CITIC Securities, Haitong International, and Orient Securities serve as its joint sponsors. Auntea Jenny has opened 7,297 stores as of Sept. 30, and 99.3% of them are operated by franchisees. According to the company’s prospectus, it sold RMB 7.18 billion worth of beverages in the first three quarters of 2023. During this period, revenue amounted to RMB 2.54 billion, a 54% growth compared to the previous year, while net profit surged by  188.7% to RMB 320 million. [TechNode reporting]

Tech media MySmartPrice recently shared high-definition renderings of the Xiaomi 14 Ultra phone and revealed that the new device will debut at the MWC (Mobile World Congress) 2024 at the end of this month. The report also predicts that Xiaomi 14 Ultra is expected to launch three storage versions in China, including 12GB+256GB, 16GB+512GB, and 16GB+1TB. The 14 Ultra is set to feature a Snapdragon 8 Gen 3 processor, four 50MP cameras with Sony LYT900 sensor, and f/1.63-f/4.0 multi range variable aperture. Additionally, the new flagship will provide a battery of around 5180mAh, supporting 90W wired fast charging and 50W wireless fast charging. [IThome, in Chinese]

Chinese technology giants Huawei and Xiaomi have battled for attention during the heavily watched 2024 Spring Festival Gala, with an Aito-branded M9 flagship sports utility vehicle, as well as a Xiaomi SU7 toy car model, making appearances during the event’s broadcast on Feb. 9. Specifically, an M9 six-seater will be free for use for ten years as a special lucky draw prize, while Xiaomi strove to make its first consumer car memorable with some SU7 toy sedans placed on tables surrounded by big-name celebrities. Additionally, a Trumpchi E8 plug-in hybrid van also featured as a prop in a comedy program for state-owned carmaker GAC Motor, a Toyota’s manufacturing partner, sharing the spotlight with the smartphone makers. Chinese state broadcaster China Central Television (CCTV) said the country’s most-watched television show shattered viewership records this year as it attracted over 795 million viewers who had more than 1.6 billion hits with their mobile devices, a 15.1% increase from a year earlier. [TechNode reporting, PCauto, in Chinese]

The Beijing Aerospace Ark Space Lab has been conducting research and development on a new generation of communication satellites, according to Xinhua News Agency. Currently, Xinhua News Agency has not yet disclosed photos of new satellites or related models. This new generation of communication satellites features an integration of phased array antennas and solar wings, which can convert solar energy into satellite energy on a plane of several square meters. The report indicates that the new tech can improve the networking efficiency of multi satellite deployment and reduce the volume of the satellite by hiding the satellite’s antenna inside the solar wing. The new satellite technology will be a crucial component of the 6G communication network, with satellites expected to unleash more new applications for the public, the report said. [IThome, in Chinese]

Temu, the Chinese-owned e-commerce company, aired commercial ad on its second Super Bowl appearance with the same “shop like a billionaire” slogan as last year on Sunday, the biggest American football game of the year. Temu secured three of 30-second commercial slots during the event this year, in a high-profile effort to drive more shoppers as the budget-hunter app saw immediate user growth when it made Super Bowl debut last February, and recorded 100 million users in the world’s largest economy in August, less than a year after Temu quietly launched in the US. Though the Pinduoduo siblings now seeks further competition with US-founded Amazon, it is under the US congressional investigation over data use and the use of forced labour, same as its Chinese rival Shein. [TechNode reporting]

Chinese laser sensor startup Hesai announced on Thursday it will file a complaint against the US Defense Department, saying that its inclusion on an official Pentagon blacklist due to alleged links to China’s military is “unjust, capricious, and meritless.” In a statement, chief executive Li Yifan called the US government decision “without any explanation or justification,” stating that Hesai is not a military company and its products are for civilian use only and have never been designed or validated for military use. The move comes days after the US authorities on Jan. 31 designated the firm, among others, as working with China’s military and placed it on a list that could hit its reputation and result in more sanctions against it from other government departments. Shares of the Shanghai-based and Nasdaq-listed lidar maker declined 7.9% to less than $4 on Wednesday, which is more than 80% down from their peak. [Hesai statement]

Alibaba missed third-quarter revenue expectations on Wednesday, as the tech giant’s e-commerce and cloud-computing businesses remained sluggish due to increased competition from Pinduoduo and weak consumer sentiment at home. This led to shares falling an additional 2.6% after the closing bell. The company reported year-on-year growth rates of only 2% and 3% for the Taobao and Tmall Group, as well as its cloud computing businesses, in the three months ending Dec. 31. This is compared with the 3% and 2% growth percentages achieved three months earlier. Overall, third-quarter revenue grew 5% year-on-year to RMB 260.4 billion ($36.7 billion), driven in part by the robust growth of its international commerce business, including Southeast Asian arm Lazada, which experienced a 44% growth from a year earlier. Non-GAAP net income, typically excluding irregular or non-cash expenses, declined 4% year-on-year to RMB 47.9 billion. [CNBC]

US chipmaker onsemi reported a record revenue of $4.3 billion for the automotive business for the fiscal year ending Dec. 31, reflecting a 29% year-on-year growth driven by robust demand for high-resolution image sensors for advanced driver assistance systems. Specifically, the company’s 8-megapixel image sensors for advanced safety features nearly doubled in revenue year-over-year, as highlighted by Chief Executive Hassane El-Khoury during an earnings call. The revenue surge is also attributed to the increasing demand for its silicon carbide chips, with business revenue witnessing “the highest growth in the industry,” reaching over $800 million, approximately four times higher than a year ago, El-Khoury added. Silicon carbide (SiC) power modules, featured in the company’s chips, can operate at much higher voltages than traditional silicon-based ones, enabling faster recharging and longer driving ranges for electric vehicles. Parts suppliers like Bosch and Infineon have been expanding their capacities to meet the surging demand. [onsemi release]

NIO is gearing up for the test production of its initial electric vehicle model for the mainstream market, set to commence in July, with a planned launch as early as October. The Chinese premium EV manufacturer aims to enhance sales amidst escalating competition in its home market. The company has set an ambitious target to deliver “several tens of thousands” of the upcoming sedan this year and is eyeing a sales goal of 230,000 NIO-branded EVs, according to sources cited by 36Kr on Monday. Last June, Chief Executive William Li informed investors about NIO’s plan to unveil the first model under the new brand in the second half of 2024. This brand, codenamed Alps, is priced between RMB 200,000 and RMB 300,000 ($27,820-$41,730). Additionally, another small car brand, codenamed Firefly and priced even lower, is slated for a debut later this year. [36Kr, in Chinese]

Finnish telecoms firm Nokia announced on Monday that it has signed a multi-year patent license agreement with the Chinese phone brand Vivo. Nokia had previously accused Vivo of patent infringement and won a case against the Chinese firm in a German court last year. Under the new agreement, which resolves all pending patent litigation between the parties in all jurisdictions, Vivo will make royalty payments to Nokia, as well as back payments to cover the dispute period. Jenni Lukander, President of Nokia Technologies, stated that the Vivo deal means that Nokia has now concluded patent license agreements with six major smartphone brands in the last 13 months. [Nokia]

Tencent is adapting the action role-playing console game Elden Ring into a mobile game to revitalize its aging game portfolio. In 2022, Tencent secured licensing rights from Japanese game developer FromSoftware and formed a team to develop a prototype. The same year, Tencent acquired a 16% stake in FromSoftware, but progress on the adaptation has been slow. Tencent aims to offer the mobile version of Elden Ring as a free-to-play game with in-app purchases, similar to miHoYo’s popular game Genshin Impact. Elden Ring, released in 2022 for $60, sold around 20 million copies in its first year, ranking as the world’s second best-selling game in 2022. Additionally, Elden Ring received the Game of the Year award at the Game Awards 2022, a prestigious ceremony recognizing the best video games of the year. [Reuters]

Alibaba’s domestic marketplace, Taobao, is on the way to giving away red packets worth a total of RMB 1 billion ($140 million) that could be used for shopping on both Taobao and Tmall platforms within the specified period, the company said on Monday. Beginning on Feb. 5, the bonus-accumulating campaign lasts for 12 days, with users earning more cash rewards of up to RMB 1,888 by sharing links with friends. Taobao and JD, Chinese top e-commerce players, are increasingly giving real money subsidies to lure shoppers, while a low-price strategy remains their main operational focus due to rival Pinduoduo showing no sign of stagnation in high revenue growth rates. [Taobao, in Chinese]

In 2023, tablet PC shipments witnessed a notable decrease of 10% year-on-year, reaching 1.353 billion units, according to the latest data from market analyst firm Canalys. Chinese tech giant Lenovo took the third place with a market share of 6.9%, while Huawei secured the fifth spot with 6.1%. Amazon experienced the largest decline in market share among the top five companies this year, dropping from 9.1% in 2022 to 5.8%. Notably, Huawei was the only brand among the top five to maintain yearly growth of 1.9%. The report revealed that China and India played key roles in driving tablet sales and served as essential markets to offset the prevailing stagnation observed in other regions across the globe. [Canalys]

Chinese e-commerce giant JD said on Monday that it has raised the salary for its over 20,000 customer service staff from Feb. 1, with more than a 30% increase in the annual average wage. This commitment comes a month after the Beijing-based company promised to offer an average growth of 20% for its retail unit, while procurement and sales employees would see their salary nearly double in 2024. The online retailer has increasingly poured investment both internally and externally, as it also prepares to send 100 million gifts during China’s most-watched Spring Festival Gala, set to air on Feb. 9, as part of its “exclusive interactive partner” role with this year’s event. Gifts include one year’s access to a single-family mansion, Voyah cars for one-year driving, as well as rose bouquets, the company said on Tuesday. [JD, in Chinese]

Huawei has recently been preparing for the mass production of a new triple-folding smartphone, with an expected launch as early as the second quarter of this year. As the hinge is a key component in foldable phones, reports suggest that Huawei has expanded its hinge orders from the Taiwanese manufacturers Jarllytec and Fositek. The Chinese panel maker BOE is expected to supply the screen for the triple-folding phone, which may adopt a Z-shaped design with a folded screen size of approximately 6.4 inches. Differing from current foldables using a 16:9 or 18:9 design, Huawei’s upcoming triple-folding smartphone might feature a 28:9 or 18:9 design, providing users with an innovative transformation from phone to tablet. [Icsmart, in Chinese]

China’s ride-hailing giant Didi has recently set up a travel-related company, according to the corporate database Qichacha. The move indicates the company’s focus on tourism, as the new firm covers a wide range of businesses, including ticketing agency and mini-bus leasing business services to tourism project consulting. Established on Feb. 2, Tianjin Yingkesong Technology Co. is wholly-owned by Beijing Xiaoju Technology Co., which operates the taxi-hailing service Didi, with a registered capital of RMB 10 million. [Qichacha, in Chinese]

Chinese electric vehicle maker Human Horizons has failed to raise the new capital it needed from Middle East investors, spurring the recent closing of two showrooms and prompting the firm to look at cutting headcount in some departments to reduce costs and attempt to remain in business, souces told Chinese media outlet Caixin on Sunday. The Shanghai-headquartered company in June signed a letter of intent with Saudi Arabia’s Ministry of Investment for setting up a joint venture to make EVs in the Gulf country as part of a $5.6 billion deal. However, Saudi later scrapped its planned investment with concerns about the sales growth of Human Horizons, which delivered roughly 8,000 units of its HiPhi-branded premium EVs in 2023 after six years of operation, according to people with knowledge of the matter. The EV startup has recently shut down two shops in the southern city of Guanghzou and southwestern municipality of Chengdu, and will need to implement more cost-cutting measures before it manages to secure new funding, according to Caixin. [Caixin, in Chinese]

Chinese telecoms giant Huawei reclaimed the top spot in Chinese smartphone sales during the first two weeks of 2024, according to market research firm Counterpoint’s China Smartphone Weekly Model Sales Tracker Report. The performance marks a strong comeback for Huawei, as the company has experienced a consistent decline in market share since US sanctions were introduced in 2019. The report attributes this achievement primarily to Huawei’s new flagship Mate 60 series, featuring the self developed Kirin 9000S chip. Additionally, renewed brand loyalty and the launch of the HarmonyOS operating system have both played key roles in the company’s resurgence in the market, the report noted. [Counterpoint Research, in Chinese]

Alibaba’s enterprise communication tool DingTalk launched an official version built for the Apple Vision Pro on Feb. 4, two days after the hardware’s release in the US. The software features a range of workplace functions, including chats and meetings in a virtual environment. Based on the new visionOS features, DingTalk has created a “complete 3D environment” for the native app on the iPhone maker’s revolutionary spatial computer, boasting a number of “unique features,” the platform said in an official WeChat post. These unique features include enabling parallel processing of multi-tasks and “persona,” which shows users’ real-time facial and hand movements. Apple’s Vision Pro has not yet officially landed in China, but CEO Tim Cook said a launch in the country is coming “soon”. [DingTalk, in Chinese]

On Sunday, tech blogger Smart Pikachu revealed on China’s Twitter-like platform Weibo that the Xiaomi 15 smartphone will debut with the Snapdragon 8 Gen 4 and is expected to be released around October this year. The Xiaomi 15 series is expected to enter into mass production in September, with testing so far ahead of schedule, another account called Digital Chat Station added. Qualcomm may accelerate its efforts to release the upcoming flagship Snapdragon 8 Gen 4, aiming for mass production as early as September, according to US tech media Wccftech. Alongside its powerful hardware, the Xiaomi 15 Pro is reportedly set to feature advanced satellite communication capabilities, following in the footsteps of Huawei’s satellite-enabled devices. [IThome, in Chinese]

Chinese car manufacturer Chery Auto has formed a standalone business unit for its Luxeed electric vehicle brand, a move that could increase the speed of decision-making and enhance its partnership with Huawei, sources told the auto services portal Yiche on Sunday. The news comes after reports that the partnership might be in trouble, leading to a senior executive from Chery recently quitting his job and many customers waiting for up to a few months for the delivery of their first joint model, the Luxeed S7 sedan. The two companies, in late 2020, forged their alliance with plans to jointly launch at least five new EV models featuring Huawei’s in-car technology, such as automated driving systems. The first model, the S7, went on sale on Nov. 28 with a starting price of RMB 249,800 ($34,921). [Yiche, in Chinese]

China’s e-commerce giant Alibaba is reportedly set to sell the grocery supermarket chain Freshippo and offline retailer RT-Mart, according to a Friday report by Reuters. This marks the latest news on the company’s potential sale of its non-core and loss-making businesses. However, the report added that these selling discussions are at an early stage, and Alibaba may not proceed further. Founded in 2015, Freshippo signifies the Taobao owner’s ambitious entry into offline supermarkets and has diversified into various business forms, including the membership-only X store and the budget brand Freshippo Outlets, boasting over 300 stores nationwide. The Hangzhou-based company’s loss-making units have frequently been rumored to be up for sale since new management came on board in September, as it aims to focus more on its core business of domestic e-commerce. Alibaba did not immediately reply to a TechNode comment request. [Reuters]

Meituan CEO Wang Xing is taking direct control of the food delivery giant’s overseas businesses and drone delivery in its largest overhaul in recent years, according to Wang’s employee-faced memo on Friday, as Meituan sets to step up bets on international markets amid more serious challenges inside China. As part of the reorganization, the company integrates its in-store and food delivery services that previously operated independently, with the consolidated division reporting to Meituan Senior Vice President Wang Puzhong. “The current situation for Meituan is full of challenges, both internally and externally, but it is an opportunity for the company to grow further at the same time,” Wang said in the email. The integration of Meituan’s most vital businesses within its core local segment comes at a time when the main delivery operation has slowed in recent months while Douyin poses aggressive threats to its in-store services through highly subsidized strategies. [21jingji, in Chinese]

Chinese automakers saw their share of the global electric vehicle market rise to 68.2% over the last three months of 2023, compared with 57.4% as of March, as European car companies’ market share declined to the lowest level since 2019 on the back of shrinking subsidies and weak sentiment. The numbers were published by Cui Dongshu, secretary general of the China Passenger Car Association (CPCA), on his WeChat account on Saturday. Specifically, sales of China’s green energy passenger vehicles, including pure EVs and plug-in hybrids, increased by 37% to nearly 8.9 million units last year, outperforming a 16% rise and a volume of 2.9 million units from European firms, according to CPCA figures. The industry group expects China’s new energy vehicle sales to surpass 11 million units in 2024, up 22% from last year and representing a penetration rate of 40%. [Cui Dongshu, China Passenger Car Association, in Chinese]

ByteDance on Thursday rolled out a GPT-like platform that allows users to build their own chatbot for specific purposes, accelerating Chinese tech companies’ new bet on artificial intelligence. The platform is named Coze and supports user-created bots to share with the workplace communication tool Feishu and even Tencent-owned WeChat. The launch comes days after the chief executive of ByteDance, Jiang Rubo, criticized employees as “too slow to react” to the emergence of ChatGPT, which OpenAI teased in November 2022; the TikTok owner only started discussions around the promising technology in 2023. [Coze]

Alibaba is reportedly considering the sale of Intime Department, a bricks-and-mortar retailer that the e-commerce giant privatized in 2017 for HK$19.8 billion, and which once formed a key part of its bid to modernize offline retail. The Taobao owner has engaged in talks with several potential buyers to assess their interest in acquiring Intime, which operates more than 100 department stores and shopping centers across China, according to local media outlets. Alibaba did not immediately respond to a request for comment on Friday. Rumors that Alibaba intends to sell its non-core businesses, including food delivery service Ele.me and entertainment-related ventures, have garnered market attention in the last two months amid the firm’s efforts to revamp its most profitable platforms Taobao and Tmall, but Alibaba has claimed that such speculations is “untrue.” [Jiemian, in Chinese]

The National Press and Publication Administration (NPPA) of China today released the first batch of licenses for imported games in 2024, with 32 games receiving approval. Tencent Games secured licenses for two Nintendo Switch games, including the 3D adventure game Kirby and the Forgotten Land and the drum rhythm game Taiko no Tatsujin. NetEase’s subsidiary Boltrend Games obtained approval for the role-playing game Octopath Traveler: Champions of the Continent, while ByteDance’s gaming arm Nuversen gained approval for the action game World Trigger: Borderless Mission. From 2021 to 2023, the imported game approvals for the past three years were 76, 44, and 98, respectively. [NPPA, in Chinese]

Chinese display manufacturer BOE surpassed Samsung Display to become the industry leader in the foldable display sector, representing a 42% market share in the fourth quarter of 2023, according to display supply chain consulting firm DSCC. On the flip side, Samsung Display experienced a notable decline, dropping from 76% in the third quarter to 36% in the fourth quarter of 2023, which was its largest quarterly decrease since the first quarter of 2021. This marks the end of Samsung’s reign in the global OLED foldable market over the past five years, the report said. DSCC analysis indicates that BOE’s surge was primarily attributed to the substantial growth in demand for Huawei’s foldable smartphones, with a 122% increase in Huawei’s foldable display procurement in the fourth quarter of 2023 alone. [IThome, in Chinese]

Xiaomi will begin mass production of its first electric vehicle model later this month, people familiar with the matter told 36Kr on Wednesday, the latest development in the Chinese smartphone giant’s entry into the fiercely competitive EV segment. The company is set to meet the start of production (SOP) requirements in late February, with a goal to achieve monthly output of 2,000 units in March and expand that number to more than 10,000 by July. The consumer tech firm, in late December, debuted the SU7 sedan, which boasts acceleration from 0 to 100 km/h (62 mph) in 2.8 seconds and a seamless connection between devices from smartphones to the car’s dashboard and various home appliances. The car is scheduled for launch during the first half of this year, while rival Huawei has been selling EVs in collaborations with carmakers including Changan, Seres, and Chery. [36Kr, in Chinese]

Capital Medical University Xuanwu Hospital and Tsinghua University School of Clinical Medicine jointly announced on Tuesday that they have achieved the world’s first clinical trial using an implanted epidural electrode brain-computer interface (BCI) to treat limb paralysis caused by a cervical spinal cord injury. The 54-year-old male patient had experienced a severe neck spinal cord injury in a car accident, resulting in a complete impairment classified as ASIA (American Spinal Injury Association) grade A and leading to persistent limb paralysis. On Oct. 24, 2023, two coin-sized brain-computer interface processors were implanted into the patient’s skull, according to the announcement. After three months of rehabilitation training, the patient can now use brainwaves to operate pneumatic gloves, enabling independent activities such as drinking water through brain control, with the patient able to achieve a grip accuracy rate exceeding 90%. [Capital Medical University Xuanwu Hospital, in Chinese]

On Wednesday, the Ministry of Industry and Information Technology (MIIT) of China released an announcement on the telecommunications service quality in the fourth quarter of 2023, in which miHoYo’s hit game Genshin Impact was specifically mentioned by the MIIT for having the lowest timely complaint resolution rate at 39.3%. Among the 175 monitored internet companies, miHoYo, Guangzhou Great Wall Broadband Network, Ziroom, and Tongcheng Holdings were identified as the four companies that did not meet the required standards for timely complaint handling. The MIIT has urged the relevant companies to properly address the issues raised by users. Additionally, four types of complaints were received by the Internet Information Service Complaints platform: product functionality (47.7%), customer service (25.6%), privacy protection (12.9%), and other categories (13.8%). [MIIT, in Chinese]

Chinese automaker Chery Auto is working with Huawei in “an all-round way” to ramp up production of their first joint model, the Luxeed S7, a company spokesperson said on Wednesday, denying that there has been conflict between the two companies in a production-constrained situation. The state-owned manufacturer also denied rumors that a deputy general manager blasted Huawei for a lack of coordination before quitting his job recently, which comes after reports saying multiple customers were frustrated over unexplained and months-long delivery delays of the S7 electric sedan. The two companies on Jan. 11 announced compensation for those who had experienced delivery delays of more than six weeks for the car, launched in late November and featuring Huawei’s in-car software with a starting price of RMB 258,000 ($35,381). The Chinese technology giant has been partnering with several other automakers including Changan, Seres, and BAIC. [CLS, in Chinese]

Chinese artificial intelligence developer iFlytek on Tuesday unveiled an upgraded SparkDesk model and claimed it outperforms GPT-4 Turbo on metrics including language understanding and math, while its capability in multimodal understanding has reached 91% of that of OpenAI’s most advanced model, according to the company. The Hefei-based firm didn’t specify the judging criteria or modalities used for its claims. Named SparkDesk V3.5, the LLM is the “first foundation model that was trained by a domestic computing power platform,” according to a press release on iFlytek’s WeChat account. The platform was co-launched by iFlytek and Huawei in October. [iFlytek, in Chinese]

Chinese electric vehicle battery maker CATL on Tuesday projected an up to 47.1% increase in net profit to RMB 41.5 billion ($5.8 billion) in its financial year ending Dec 31. However, the year-on-year growth rate would be slowed to 9.2% over the last three months, compared with a 10.7% rise in the previous quarter and a 153.6% surge in the first half of last year. The battery giant was dethroned by BYD from the top spot in the more affordable lithium-iron-phosphate (LFP) battery segment last year, as the latter led the shipment with a 40.4% market share compared with CATL’s 34%, figures from China Automotive Battery Innovation Alliance showed. The results were also partly due to a growing trend towards plug-in hybrids over the past year, which use both gasoline and electricity as fuel sources and therefore normally carry smaller batteries than pure EVs. China reported an 82.5% annual increase in sales of PHEVs last year, compared with a 20.8% growth rate in BEV sales, according to figures from the China Passenger Car Association. [TechNode reporting, Caixin, in Chinese]

ByteDance CEO Liang Rubo told the company’s employees they lack a “sense of crisis” in an annual meeting on Tuesday, as the co-founder of Douyin and TikTok owner fears the ten-year-old firm is becoming “mediocre” and thus unable to “break new ground.” In his speech, Liang outlined three goals for ByteDance in the new year – maintaining a “first day of a startup” mindset among staff, enhancing community trust, and staying focused on a select set of priorities, according to the Chinese media outlet ThePaper. Overtly, while the tech unicorn’s short-video operation grabbed the largest market share, the emergence of rivals Kuaishou and WeChat Channel has posed a threat, and within the organization, Liang highlighted issues of low efficiency and sluggishness in seizing opportunities during his speaking, the most urgent problems to be solved currently to cope with external competition.[ThePaper, in Chinese]

GAC has opened its first showroom dedicated to its all-electric Aion brand in Hong Kong, the latest domestic automaker looking to expand sales to emerging electric vehicle markets amid slowing growth in mainland China. Toyota’s manufacturing partner will initiate sales of its Aion Y Plus affordable crossover in the city in May with a goal of selling 5,000 units this year, Gu Huinan, general manager of GAC Aion, told reporters on Jan. 28. The company also unveiled plans to build five more retail and service locations in the Asian financial hub this year and set up more than 300 fast-charging piles near office buildings, shopping malls, hotels, and transport terminals all over the city by 2028. BYD earlier this month opened its first service center spanning 20,000 square feet in Yau Tong, Kowloon, in collaboration with Harmony Auto Holding Ltd, a Chinese auto dealership, while having operated several stores in Sha Tin, Sai Kung, among other areas. Tesla is the top seller, recording sales of 673 vehicles in the city in November, according to the latest figures published by the Hong Kong Transport Department. [TechNode reporting; Caixin, in Chinese]

Volkswagen has appointed Thomas Ulbrich, a veteran of more than 30 years at Germany’s biggest automaker, as the new chief technology officer in China, hoping to foster the local development of new models to meet the growing demand for intelligent, connected electric vehicles. Effective April 1, Ulbrich will also serve as the chief executive of Volkswagen China Technology Company, the company’s largest research and development center outside Germany, where it has been working with Xpeng Motors on two new models scheduled for launch in 2026. The German carmaker has set a goal of selling at least 30 all-electric vehicle models in China by 2030, while another 30 locally-built models, including plug-in hybrids and gas-powered cars will be available by 2027 in collaboration with manufacturers such as SAIC and FAW. It is also looking to shorten the development cycle by 30% for cars with key components, ranging from batteries to automated driving systems, with assistance from partners including Gotion High-Tech and Horizon Robotics. [Volkswagen release]

On Tuesday, the analyst firm SensorTower released its 2023 annual review on the overseas performance of China’s mobile games, with the action role-playing game Genshin Impact from miHoYo securing the top spot. In 2023, overseas mobile game players’ expenditure on the App Store and Google Play amounted to $616 billion, while the overseas revenue of the top 30 Chinese mobile games on these platforms reached $7.8 billion. In terms of overseas revenue, the top five mobile games from Chinese developers in 2023 were Genshin Impact (miHoYo), PUBG MOBILE (Tencent Games), Honkai: Star Rail (miHoYo), Call of Duty (Activision Blizzard & Tencent Games), Puzzles & Survival (37 Interactive Entertainment). [SensorTower, in Chinese]

Alongside Apple, Intel’s next-generation Nova Lake processor may also embrace TSMC’s 2nm process technology, as TSMC plans to mass-produce the 2nm chips by 2025. Nova Lake, which will be Intel’s largest architectural upgrade, is expected to launch in 2026. The report suggests that Intel’s decision to use TSMC’s 2nm process in Nova Lake could be a strategic move to address the substantial architectural upgrade, ensuring market competitiveness by leveraging TSMC’s advanced 2nm process technology. Nova Lake is likely to follow a Chiplet design similar to Intel’s Core Ultra, with the CPU (central processing unit) core potentially produced by Intel’s own foundry, while the GPU (graphics processing unit) part may adopt TSMC’s 2nm process. [Icsmart, in Chinese]

BYD on Monday forecast an up to 86.5% year-on-year increase in its net profit to RMB 31 billion ($4.3 billion) for 2023. However, that means the profit for the three months ended Dec. 31 will be up to RMB 9.6 billion, which would represent at least an 8% decline compared with the RMB 10.4 billion it earned in the previous quarter. The results reflect the growing pressure in the Chinese car market, which has forced the country’s biggest electric vehicle maker to offer significant discounts over the year-end holiday season to achieve its annual target of selling 3 million cars. The Warren Buffett-backed automaker also said on Jan. 16 that it has hired more than 4,000 engineers for automated driving as part of an RMB 100 billion long-term investment initiative. Rival Tesla’s net income dropped 39% year-on-year but grew 7.2% quarter-on-quarter to $2.5 billion in the fourth quarter of last year. BYD share prices dipped 5.5% during Tuesday’s morning trading session in Hong Kong. [BYD filing, in Chinese]

Both TikTok and Shein have sharply increased lobbying spending in the US as the two China-founded companies face scrutiny there over their Chinese ties. Data from OpenSecrets shows that the fast-fashion giant boosted its spending on lobbying by 657% to $2.12 million in 2023 compared to a year prior, but this was still less than a quarter of TikTok owner ByteDance’s spend last year of $8.74 million. The parent company of the video-sharing app had a total of 45 lobbyists in 2023, largely unchanged from the previous three years, while Shein hired 14 lobbyists last year compared to only eight in 2022 as the firm faces an uncertain IPO outlook in the US. [OpenSecrets]

Temu is planning to absorb sellers who can ship locally within its covered countries, including those who already operate overseas warehouses or store inventory beyond China, according to the Chinese media outlet Caijing. This low-cost fulfillment model brings warehousing and logistics fulfillment responsibility to merchants themselves. The model is scheduled to go live first in the US starting on March 15, followed by European sites at the end of March before further expanding, the report said. Under the upcoming business model that reduces the need for items to cross borders, merchants are more flexible in partnering with local logistics firms after packing orders, thereby cutting shipping times to secure advantages over challenging competitors like Amazon. [Caijing, in Chinese]

Huawei is set to launch a new flip-foldable smartphone in February, following the P50 Pocket in 2021 and the Pocket S in 2022, according to a report in local media outlet IThome, which cited sources on China’s Twitter-like platform Weibo. Details of the upcoming device, known by the code-name LEM, have not yet been officially disclosed. The new flip phone will reportedly feature Huawei’s self-developed 5G Kirin chip and will be positioned similarly to the Chinese tech giant’s mid-range Nova series. Reservations for the new device are expected to begin after the Chinese New Year holiday, which is from Feb. 9 to Feb. 17. In 2023, according to data from a third-party organization cited in the IThome report, Oppo led the flip-foldable phone sector in the Chinese market with a 30% market share, followed by Huawei at 29%, and Samsung at 23%. [IThome, in Chinese]

On Jan. 27, US Secretary of Commerce Gina Raimondo stated that the US government is proposing to require American cloud service companies to conduct self-assessments to determine whether foreign entities are accessing US data centers for training artificial intelligence models. The US government plans to take measures to limit China from utilizing US technology for AI-related development, as this emerging industry has raised security concerns, the report said. The proposed regulations were published on the Federal Register website last Friday. In 2023, the global top 10 cloud service providers include Amazon Web Services, Microsoft Azure, Google Cloud, Alibaba Cloud, Oracle Cloud, IBM Cloud, Tencent Cloud, OVHcloud, DigitalOcean, and Linode, according to intelligence platform Dgtl Infra. Seven out of the ten listed cloud service providers are from the US. [Icsmart, in Chinese]

Tesla shares slid 12.1% to $182.60 on Thursday, marking the stock’s steepest drop since May, after the US electric vehicle maker posted lower-than-expected revenue and worsening margin trends for the fourth quarter of 2023. The decline was also due to a more cautious and ambiguous outlook as chief executive Elon Musk warned of a “notably lower” sales growth rate for this year in its shareholder letter. Musk did not give a specific annual delivery goal as expected. Tesla’s sales for the three months ended Dec. 31 grew only 3% to $25.2 billion, which was below analysts’ estimate of $25.6 billion and the firm’’s lowest year-on-year growth rate over the past three years. Tesla also reported a gradual decline in gross margin from 19.3% to 17.6% throughout the year, as the company has repeatedly cut prices amid slowing demand globally and rising competition from China. The Thursday drop put Tesla’s market capitalization at roughly $581 billion, with $80 billion wiped out overnight. [CNBC]

With its IPO plan in limbo, China-founded e-commerce brand Shein is being valued at $45 billion by some investors looking to sell shares in the firm on the private market, according to Bloomberg. The fast fashion giant raised $2 billion in its latest funding round last May, valuing the company at $66 billion. Shein is under review by China’s cyberspace administration due to it attempts to speed up a public listing in the US, Bloomberg reported last week. Meanwhile, the company faces resistance from American lawmakers who look set to ask US regulators to halt its IPO until claims about Shein’s alleged use of forced labor have been fully investigated. Scrutiny from both the US and China has further dented investors’ confidence in Shein’s long-awaited IPO, with the Bloomberg report quoting sources as saying that they are currently struggling to find buyers despite a relatively low valuation. [Bloomberg]

BMW China unveiled the redesigned versions of its top-selling 5 Series on Thursday, featuring a spacious 31-inch 8K rear screen and eye-motivated driver assistance tech. The model is tailored to meet the growing demand for in-car digital services among tech-savvy local customers. The China-spec 5 Series, part of the eighth generation of BMW’s midsize sedan lineup, boasts a roomier space with a 3.1-meter wheelbase, compared to the global model’s 2,995-millimeter wheelbase. The infotainment system addresses local needs with services like a voice-operated WeChat version, app downloading, and video streaming from Huawei and Baidu-affiliated iQiyi. The luxury sedan, equipped with a large, high-resolution, floating screen for rear passengers, introduces an assisted driving function allowing lane changes with eye confirmation via the outside mirror. BMW notes the sedan is technically prepared for Level 3 autonomous driving, permitting drivers to divert attention from the road and hands from the wheel in specific conditions. This development follows BMW’s announcement of localizing research and development for L3 technology in China in July. Prices for both the i5, the series’ first all-electric model, and its gasoline variant start at RMB 439,900 ($61,278). [BMW release]

China’s Baidu has expanded its AI business with the integration of the ERNIE foundation model in Samsung’s latest smartphone, the Galaxy S24 Series. In China, Galaxy AI, powered by Baidu’s ERNIE model, will offer functionalities including real-time call translation, summarization, and advanced typesetting, as stated in a Friday press release by Baidu. The new Samsung Galaxy S24 series features Google’s AI model Gemini outside China due to the Great Firewall blocking Google, OpenAI’s ChatGPT, and other mainstream sites on the mainland. [TechNode reporting]

Ele.me CEO Yu Yongfu told all employees that Douyin’s acquisition of the food delivery participant was “fake” in an internal forum, as the market rumor caused large-scale discussion on the TikTok sister app’s further involvement in the local services sector. “You may feel that my clarification is the most authoritative, so let me respond positively again,” Yu said, while adding Ele.me has seen a strong improvement in efficiency over the past two years. Alibaba’s Local Services Group, which included http://Ele.meEle.me> and split into one of six separate operation units in March last year, reported the third-fastest revenue growth of 16% within six units in the third quarter and has cut its loss by nearly RMB 5 billion. [LatePost, in Chinese]

Dutch chip equipment maker ASML said on Wednesday that it expected the government’s export restrictions to curb sales in the Chinese market by 10%-15% in 2024, as the company released its financial report for the fourth quarter and full year of 2023. Last year, China’s Taiwan became ASML’s leading market, representing 30% of total sales, followed by mainland China in second place with 29%, a substantial 15% increase from the previous year. On Jan. 1, the Dutch government revoked export licenses for two of ASML’s advanced lithography machines, namely NXT:2050i and NXT:2100i. Additionally, certain advanced semiconductor wafer fabs in China are unable to obtain licenses for shipping NXT:1970i and NXT:1980i DUV (deep ultra-violet equipment), as confirmed by ASML CFO Roger Dassen. [Jiemian, in Chinese]

Alibaba’s seldom-seen co-founder Jack Ma and current chairman Joe Tsai become the giant’s largest shareholders, according to a Wednesday report by the South China Morning Post, as Ma and Tsai spent $200 million worth of its shares in the fourth quarter while Japan’s SoftBank gradually exits Alibaba. According to the e-commerce titan’s annual report, SoftBank held 23.9% of Alibaba’s stake or 5.07 billion shares as of July 15, 2022, but had cut it to less than 0.5% by May last year, the report cited calculations by Morgan Stanley. And Ma has increased his stake to over 4.3%. Under new leadership since September, Alibaba CEO Eddie Wu and Chairman Tsai proposed an AI focus and users first as priority strategies for the struggling empire in revamp. [SCMP]

On Tuesday, the Chinese phone brand Oppo announced the signing of a global patent cross-licensing agreement with the Finnish tech company Nokia, covering standard patents in 5G and other cellular communication technologies. Both parties agreed to end all litigation cases after the agreement, while specific terms remain confidential. Oppo’s chief intellectual property officer, Feng Ying, emphasized the company’s commitment to respecting intellectual property, supporting fair pricing, and promoting a sustainable IP ecosystem. Nokia President Jenni Lukander stated that they seek to bring more innovations to global users through the collaboration, and the agreement is expected to ensure long-term financial stability in Nokia’s licensing business. [Oppo, in Chinese]

Chinese e-commerce giant JD has secured a deal to serve as the exclusive interactive cooperation platform for the upcoming Spring Festival Gala, the country’s most-watched TV show featuring songs and comedy performances to welcome in the lunar new year. The second partnership between JD and state broadcaster China Central Television (CCTV) after the first in 2022, the deal is aimed at JD attracting more users in lower-tier cities. In a post on its WeChat account, JD says it will send 100 million gifts-in-kind that each winner will only need to pay RMB 0.01 to receive during the Gala. A JD employee was quoted by local media outlet LatePost as saying the firm’s Gala program involves thousands of staff who will take on “heavier marketing pressures” than those in 2022, with GMV and the number of transaction users being the direct metrics for them at what is traditionally a family time. The company’s revenue grew at a single-digit pace in the first three quarters of last year, with a 2% increase during the July and September period, far behind rival PDD’s 94%. [JD; LatePost, in Chinese]

Chinese automaker SAIC has continued making efforts to reorganize its research and development operations which could entail a significant number of job cuts in its troubled electric vehicle brand Rising Auto, people with knowledge of the matter told local media outlet Gasgoo on Tuesday. The Volkswagen manufacturing partner will return the responsibility for automated driving software development from the individual brand back to the parent group, with at least 200 employees either being let go or being moved to the firm’s existing research departments. It is unclear how many employees will receive new job offers amid the ongoing restructuring. The state-owned carmaker was said to be considering reducing internal technology efforts as part of group-wide cost saving measures last August, as there appears to be growing consensus among traditional Chinese manufacturers that outsourcing assisted-driving technology is a better solution than developing it in-house a la Tesla. Rising Auto’s two battery EVs on sale – the R7 crossover and the F7 sedan – have a starting price of RMB 189,900 ($26,481) and it delivered a total of 21,012 units over the last 12 months, according to figures compiled by Chinese auto service platform Dongchedi. [Gasgoo, in Chinese]

News that Alibaba co-founders Jack Ma and Joe Tsai bought $200 million worth of shares in the Chinese e-commerce giant in the fourth quarter sent the firm’s New York-listed stock up nearly 8% on Tuesday. A report in the New York Times said Ma bought $50 million in Hong Kong shares in Alibaba during the quarter, while current chairman Tsai purchased $151 million worth of its US-traded stock via his Blue Pool Management family investment vehicle, showing their support for the 25-year-old firm as it faces multiple challenges. The company’s Hong Kong-traded shares rose 4.3% in the exchange’s Wednesday morning session. Ma believes Alibaba stock is now “strongly below its actual value,” the firm’s chief people officer Jane Jiang told employees in November, confirming that the company’s founder had postponed his plan to sell 10 million shares at a value of around $870 million. [The New York Times; SEC filling]

Great Wall Motor reported significant growth in vehicle sales in the year ended Dec. 31, with revenue rising 26.3% to RMB 173.4 billion ($24.2 billion) from a year earlier. However, net profit was down by 15.2% to RMB 7 billion, which the Chinese automaker said was hurt by foreign currency swings, sending shares down 9.2% to roughly HK$ 8.1 ($1) in morning trading on Wednesday in Hong Kong. The results reflect how most automakers have come under pressure in the world’s biggest and yet probably the most competitive electric vehicle market, as they have been forced to cut prices to keep up with leaders BYD and Tesla. Great Wall Motor posted sales of more than 1.2 million cars last year, up 15.3% from a year earlier, although falling short of its target of 1.6 million units. [China Securities Journal, in Chinese]

Self-driving truck developer TuSimple is suspending its business in the US and shifting its focus to the Asia Pacific markets, especially China, Japan, and Australia, hoping to commercialize and profit from its autonomous driving technologies. Chief executive Lu Cheng cited a mature local supply chain and strong regulatory support as reasons. Another executive told 36Kr on Monday that its China operation, with a team of 600 people, has secured two pilot deals for developing assisted driving software. These remarks were made two days after TuSimple, a San Diego, California-based startup with a Chinese background, said on Jan. 17 that it would delist from Nasdaq, probably on Feb. 7, following an announcement last month to cut 75% of its employees in the US. The retreat from the US is a fallout of a government investigation initiated by the US Committee on Foreign Investment in late 2022 about whether the company shared intellectual properties developed in the US with a Chinese company. TuSimple shares closed at $0.44 on Monday, compared with its debut price of $40.[South China Morning Post, 36Kr, in Chinese]

In 2023, smartphone shipments in the domestic market reached 289 million units, marking a year-on-year growth of 6.5%, according to the China Academy of Information and Communications Technology. In the same year, smartphones from domestic brands continued to dominate the market, evident in consumer preferences as indicated by the report. 79.9% of mobile phone shipments were domestically made phones in 2023, reflecting a year-on-year growth of 1.1%. Furthermore, with a year-on-year increase of 11.9%, 5G mobile phone shipments amounted to 240 million units, representing 82.8% of the total mobile phone shipments during the same period. [CAICT, in Chinese]

China’s top research institution is pushing the “industrialization” of solid-state batteries with a new task force, said Miao Wei, a former Minister of Industry and Information Technology (MIIT) and a core member of Chinese People’s Political Consultative Conference (CPPCC), a political advisory body. The China All-Solid-State Battery Collaborative Innovation Platform (CASIP), formed by members of the Chinese Academy of Sciences, will coordinate efforts of car manufacturers, battery makers, suppliers, and researchers, aimed at developing “breakthrough” battery technology. “We should maintain the strategy of making more gradual semi-solid state batteries while preparing for significant disruptions from the adoption of all-solid state batteries,” said Ouyang Minggao, a Tsinghua University professor and a member of the Chinese Academy of Sciences. He cited Beijing’s global leadership in electric vehicles as it faces competition in battery technologies. Japan has bet on all-solid-state batteries since Toyota last June set a target of commercialization as early as 2027. [Xinhua News Agency, in Chinese]

Ren Lifeng, the vice president of ByteDance’s VR subsidiary PICO, has officially resigned from the company and opted to venture into cross-border e-commerce as an independent platform, according to the local media outlet TechWeb. Reports suggest that his startup project has secured investments from Sequoia China and IDG, with a post-investment valuation exceeding $50 million. Ren’s team includes several members from Douyin (China’s TikTok sibling), with even major veterans from the platform Douyin joining. Currently, PICO has not yet responded to this matter. In November 2023, PICO released a public statement announcing organizational restructuring and related team downsizing, impacting over 300 employees, which represents 23% of the workforce. [TechWeb, in Chinese]

Guo Qing, former vice president of Meituan, will reportedly lead e-commerce giant JD’s on-demand delivery arm Dada, a company recently audited as engaging in suspicious practices, according to local media outlet 36Kr. A source with knowledge of the matter told TechNode that Guo currently serves as an advisor to JD, and has not yet joined in an official capacity. Before starting a venture in stir-fry robot manufacturing in 2021, Guo was responsible for Meituan’s hotel and travel operations, tapped for the company’s “S-Team” decision-making body a year before he quit. The news of Guo’s potential leadership of Dada comes after it was revealed that parent company JD had invested tens of millions of yuan in Guo’s startup a month ago, while Dada competes with Meituan in on-demand delivery. [36Kr, in Chinese]

On Jan.20, Nvidia China employees shared photos on social media of Jensen Huang, the company’s founder and CEO, at its annual meeting in Shanghai. During the internal event, he was seen wearing a flower-patterned shirt from the northeastern region of China and dancing a traditional Chinese folk dance from the same region. The visit marks Huang’s first trip to mainland China since the COVID-19 pandemic began in 2020. Nvidia clarified that Huang’s visit did not include meetings with government officials or business announcements. Currently, Nvidia employs around 3,000 employees in mainland China, with offices in Beijing, Shanghai, and Shenzhen covering departments such as marketing, sales, and R&D. [Yicai, in Chinese]

Luckin Coffee once again meets China’s “national liquor” Moutai in a fresh co-branded beverage specially designed for the upcoming Dragon Year, in a move that aims to replicate the alcohol-infused latte buzz from last September. Named the sauce-flavored chocolate, this no-coffee-added drink is priced at RMB 38, discounted to RMB 18 on Monday, the first day of sales. However, it received mixed consumer feedback on social media, similar to the previous latte. The chocolate drink is made of imported cocoa powders and thick milk that contains baijiu with 53% alcohol, as stated by Luckin on its official WeChat account. [Luckin Coffee, in Chinese]

The domestically produced C919 aircraft has secured more than 1,200 orders, forming an industrial chain in China, according to state-owned media CCTV Finance. The C919 is a large passenger aircraft developed and produced by the Commercial Aircraft Corporation of China (COMAC), a state-owned aerospace manufacturer. In May 2023, the C919 achieved its first commercial passenger flight in China, marking a significant milestone in China’s aerospace industry as it strives to reduce reliance on foreign aircraft for domestic air travel. In September 2023, China Eastern Airlines signed an agreement with COMAC to purchase 100 C919 aircraft, with delivery scheduled between 2024 and 2031. Earlier this month, China Eastern Airlines received its fourth C919 aircraft. [IThome, in Chinese]

Chinese automaker Dongfeng Motor on Thursday started accepting pre-orders for the eπ 007, the first model under the namesake electric vehicle marque. The company aims to challenge the dominance of BYD and Tesla, seeking a larger share of the growing mainstream EV segment. Priced competitively at RMB 159,000 ($22,101), the extended-range hybrid version boasts a driving range of 1,200 kilometers (746 miles) on a full tank plus full charge, comparable to the plug-in hybrid BYD Han priced from RMB 189,800. The vehicle, measuring around 4.9 meters in length with a wheelbase of 2.9 meters, accelerates from 0-100 km/h (0-62 mph) in 3.9 seconds—slightly larger and faster than Tesla’s Model 3 (4.7 meters, 0-60 mph in 4.4 seconds). Powered by Qualcomm’s Snapdragon 8155 chipset for in-car infotainment systems, the large mid-size sedan boasts a sleek, sporty exterior design. The top-end version will feature Lamborghini-styled scissor doors, a feature also available with Xpeng Motor’s P7 sedan. [Dongfeng announcement, in Chinese]

Chinese e-commerce giant JD said on Thursday that nearly 100 couriers have earned more than 1 million yuan in the past three years, and in Chaoshan city in Guangdong, some have even reached RMB 2 million. The public announcement comes after news stories flooded China’s X-like microblogging platform Weibo recently as influencer accounts and state-owned media outlets extensively covered the high earnings of food delivery riders, couriers, and decoration workers, with those professions reportedly sometimes paying RMB 30,000 to RMB 40,000 a month, figures that are far higher than the public perception. The articles have sparked widespread debate and no little skepticism. In a post on its official WeChat account, JD detailed several benefit policies for its employees, including a housing guarantee fund aimed at alleviating mortgage stress and an employee assistance fund, all designed to make employees’ days “more hopeful and brighter.” [JD, in Chinese]

ByteDance, the owner of TikTok and Douyin, is on track to accelerate the stock vesting schedule for its employees as part of an updated incentive policy, announced in a Thursday email. According to Chinese media outlet Jiemian, the company plans to change how often employees can turn their stock options into company stock and sell them for equity, switching from once a year to every quarter. In the latest round of share buybacks in November, ByteDance offered $160 per share to its staff. Employee annual incentives will consist of both an annual bonus and performance stock options starting in 2025, with the former capped at three months’ salary. Employees recognized for outstanding performance will be eligible for additional stock options despite IPO uncertainties over China’s most valuable unicorns. [Jiemian, in Chinese]

Tesla has been sourcing cathode material from two Chinese electric vehicle battery makers for its production of 4680 batteries (high energy density cells 46 millimeters in diameter and 80 mm in length) in Texas since the second half of 2023. The deals are expected to continue until at least the third quarter of this year. Rather than purchasing battery cells directly, the US automaker procured positive electrode coils – raw electrodes processed into rollers that account for 35% of the cost of a battery cell – people with knowledge of the matter told media outlet LatePost. The move is expected to help Tesla ramp up production of the cost-efficient cylindrical battery cells, the report added. In an article by Reuters last March, China’s Ningbo Ronbay New Energy and Suzhou Dongshan Precision Manufacturing were mentioned as two companies Tesla had turned to to help lower battery materials costs. Battery-related production issues are partly responsible for delays in launching Tesla’s futuristic Cybertruck. [LatePost, in Chinese]

Temu began selling its budget-friendly products in South Africa on Wednesday, according to the country column shown on the platform’s official site, making Africa the sixth continent that the Pinduoduo sibling app now reaches after less than a year and a half in operation. Chinese-manufactured goods are expected to experience longer shipping times of up to 20 days to their destinations in the country, and Temu is reportedly set to cooperate with New Zealand-founded courier company Fastway in Africa’s southernmost state, according to Chinese media outlet Jiemian. [Jiemian, in Chinese]

Foxconn recently announced that it is collaborating with the Indian tech giant HCL (Hindustan Computers Limited) to establish a new joint venture for chip packaging and testing operations in India. The partnership with HCL signifies Foxconn’s strategic shift towards the Indian market. The Taiwanese firm will own a 40% stake in the new joint venture with a $37.2 million investment. Foxconn’s Indian subsidiary, Mega Development, plans to establish an Outsourced Semiconductor Assembly and Testing (OSAT) center in India, while Foxconn is expected to invest another $1 billion to build a new plant in India dedicated to producing Apple products. Known for its engineering design and manufacturing expertise, HCL has been actively involved in discussions with the government of Karnataka, India, around the establishment of the new OSAT center. [IThome, in Chinese]

Meituan continues to face pressure on its Hong Kong-listed shares, following a fall that has left shares worth less than its IPO price of HK$69 by Wednesday’s close, plunging the company’s market value more than 80% below its peak of three years ago. The food delivery giant spent a total of HK$2.4 billion in share buybacks on six consecutive trading days since Jan.10, but this appears to have had a limited impact on ebbing stock prices. Investors have lowered their confidence in Meituan as the company struggles with aggressive competition from peers including ByteDance and slowdown concerns about its core takeout business. [TechNode reporting]

China, as the largest global semiconductor market in 2023, experienced a 15.4% year-on-year decline in the value of imported chips, which fell to $349 billion, according to Bloomberg. Although the global chip market saw an overall downturn due to a sluggish global economy, the decrease in China’s chip imports was more pronounced. Moreover, an inability to import advanced chips from the US further contributed to the significant decrease in China’s chip imports. In November 2023, the increased restrictions on the export of high-performance AI chips to China had an impact on products from companies such as Nvidia. However, these export limitations also encouraged Chinese enterprises to focus more on domestically designed and manufactured chips, reducing China’s dependence on imported chips. [Bloomberg]

Huawei on Tuesday set up a wholly-owned subsidiary in Shenzhen with a registered capital of RMB 1 billion ($138.9 million). The new subsidiary will absorb its automotive business unit, which is set to be spun off into a separate company in the hopes of inducing more collaborations with automakers. The new entity’s corporate information was released publicly on Chinese business intelligence platform Tianyancha. People close to the company told Caixin that Huawei and its partners are still discussing the details of investment into the new venture as they pursue a diversified ownership. The move comes after the Chinese technology giant last November revealed plans to form a joint venture with state-owned carmaker Changan Auto that will include the core technologies and resources from its Intelligent Automotive Solution (IAS) business unit. Changan chairman Zhu Huarong said on Tuesday at a company event that the new firm could be named “Newcool” and will be open to other car manufacturers for collaboration. [Tianyancha, Caixin, in Chinese]

On Tuesday, Xiaomi rebranded one of its Weibo accounts from Xiaomi Brand Safety to Xiaomi Legal Department, as misleading reports about Xiaomi cars continue to spread widely. In China, intensifying competition in the mobile industry has led major mobile firms to launch Weibo accounts for their legal departments, as online unverified info may spark discussions to bring negative impacts for the enterprise. In November 2023, CEO Lei Jun announced that Xiaomi’s first car model, the SU7, is currently in trial production and is expected to be released in the domestic market in the coming months, with the final price yet to be determined. Until the launch event for Xiaomi’s automotive products takes place, all information, posters, or pricing related to Xiaomi cars is considered false, Xiaomi’s PR manager Wang Hua said on Jan. 5. [IThome, in Chinese]

BYD will release at least 10 new electric cars this year featuring advanced driving technology that enables functions such as fully-automated parking and autonomous lane changing on busy urban streets in China, chairman Wang Chuanfu announced at BYD’s Dream Day event on Tuesday. The move will be part of an RMB 100 billion ($13.9 billion) long-term initiative to achieve “full-scale vehicle automation,” by which the company plans to make all core vehicle domains, from batteries to chassis, operatable by chip, artificial intelligence, 5G, and satellite, Wang explained. The company named its latest intelligent electric vehicle architecture Xuanji, an old Chinese term for the Big Dipper, adding that it will make automated driving a standard feature for all future models priced over RMB 300,000 ($41,700). The Chinese EV giant also announced it will invest RMB 5 billion in building all-terrain race tracks for enthusiasts across China, without revealing further details. [TechNode reporting, BYD announcement]

Chinese game streaming platform Huya plans to collaborate with Tencent WeChat Channels, following Tencent’s announcement last week that it will livestream Honor of Kings on ByteDance’s Douyin (China’s TikTok sibling). As a major stakeholder in Huya, the move underscores Tencent’s dedication to maintaining its own gaming livestream services, according to local media outlet Awtmt. Huya earned RMB 1.6 billion ($230 million) in the third quarter of 2023, and saw a year-on-year decline in both live streaming and advertising income, while WeChat Channels saw a 50% year-on-year growth in viewership during the same period. WeChat Channels claimed a significant growth in original content. In May 2023, WeChat Channels launched the Game Live Streaming Promotion feature, enabling game developers to directly guide fans to pre-register, download, and launch games via the platform. [IThome, in Chinese]

According to South Korean media outlet Sedaily, SK Hynix is planning to upgrade its Wuxi Plant. SK Hynix intends to upgrade its dynamic random-access memory (DRAM) production equipment to the fourth-generation 10nm class chip process at its plant in Wuxi, China, this year. Although operational specifics are yet to be confirmed, the Wuxi plant serves as a crucial hub, contributing around 40% of SK Hynix’s DRAM output. The upgrade will enable SK Hynix to maintain its market share amid global semiconductor competition despite US restrictions, according to the Chinese media outlet Global Times. Last week, SK Hynix’s president, Kwak Noh-Jung, mentioned during CES 2024 that the company last year created an internal group to address geopolitical issues and develop ways to mitigate business risks. [Global Times, in Chinese]

Correction: an earlier version of this article misidentified the 10nm class chip process as the 10nm chip process.

Baidu clarified on Monday evening that it does not have any partnership with any of China’s military organizations after a report linked the company’s ChatGPT-like technology to the People’s Liberation Army (PLA), causing shares of the search giant to see their largest drop since 2022. A report in the South China Morning Post originally said that an academy paper written by scholars at a PLA-affiliated research institute had disclosed a link with the Chinese technology giant. The academy paper used Baidu’s ChatGPT-like ERNIE Bot as an example to describe how it generates battlefield maneuvers and predicts opponent actions based on combat information prompts, which SCMP reported as forging a “physical link” between Baidu and PLA. The outlet later removed the saying. “Baidu does not provide any customized services to the military,” according to the company’s statement, adding that the ERNIE Bot used by the academy paper’s author was the general version accessible to the public since August. [Baidu]

TSMC plans to mass produce Apple’s next-generation 2nm chip in 2025, as the prototype of the 2nm chips has recently been presented to Apple, according to the Taiwan-based media outlet DigiTimes. Apple and TSMC are closely collaborating on the development and implementation of the 2nm chip technology, aiming to surpass current 3nm chips in transistor density, performance, and efficiency. The report also revealed that TSMC is actively advancing its 2nm process node, with the first batch of equipment scheduled to enter the factory in April 2024. Moreover, TSMC is currently assessing potential factory locations with the goal of securing its position as the first manufacturer of advanced 1.4nm chips by 2027. [DigiTimes]

The number of merchants that sold goods with a total value over RMB 100 million increased five times year-on-year on Xiaohongshu in the past year, the Instagram-like platform disclosed on its official WeChat account on Jan. 11, adding that sellers are increasingly seeing the lifestyle app as an additional place to do business as “new business models and scenarios” are being formed on Xiaohongshu. The platform also said it saw a 380% growth in merchants with an annual transaction size exceeding RMB 10 million, though it failed to reveal exact figures. As part of the announcement, Xiaohongshu posted its annual e-commerce year-end list, titled rise100, which listed “noteworthy merchants and buyers” based on multiple factors including merchants’ yearly business growth rate in 2023. The list features a flurry of China-made and niche foreign brands, demarcating the platform’s e-commerce focus from other mainstream retailers. [Xiaohongshu, in Chinese]

Tesla chief executive Elon Musk on Jan. 14 signaled that the company is likely to showcase its eye catching Cybertruck pickup in China, a move that could create attention and buzz for the US electric vehicle giant in the world’s largest car market. Replying to a post by a user with the handle @ray4tesla, on social media platform X, formerly known as Twitter, Musk mentioned the likelihood of shipping some Cybertruck prototypes to China for display, although he admitted it would be “very difficult” for the vehicle to be legally permissible on Chinese roads in the near future. The US carmaker finally initiated the delivery of its Cybertrucks, priced from $60,990 and with a driving range of 250 miles (around 402 kilometers), to customers in November from its Gigafactory in Austin, Texas, after a two-year production delay. The Cybertruck is currently not available for retail sale in Europe as authorities have limited external protrusions on vehicles aimed at protecting pedestrians. [Elon Musk X repost]

ByteDance and Alibaba have not yet reached a consensus on the terms or price of an offer by the former to buy Alibaba’s food delivery service Ele.me according to financial media outlet Caijing. However, Alibaba yet again denied it was in negotiations with ByteDance to sell Ele.me. Bytedance, operator of TikTok and its domestic sibling Douyin, was reported by Caijing to have bid $7 billion, which is $500 million to $1 billion less than expected by Alibaba. A further disagreement between the duo is reported to be Alibaba’s intention to transfer over the entire Ele.me team, while ByteDance only wanted to keep its delivery couriers. Alibaba took full control of Ele.me in 2018 at a valuation of $9.5 billion, as it took steps into the local services industry to compete with Meituan. The business has yet to enter a clear cycle of profitability. As Douyin relies on third-party platforms including SF Express, JD’s Dada, and Ele.me to fulfill its delivery demands, building its own team of riders is crucial for ByteDance in doubling down on its local service ambitions. [Caijing, in Chinese]

CATL, the world’s largest electric vehicle battery maker, will build a plant in Beijing, according to a document published by the Beijing Municipal Commission of Development and Reform on Jan. 11 and viewed by financial media outlet Caixin. The city’s economic planner expects the move to shore up the new energy vehicle supply chain in China’s capital, but has not revealed other details, although a person close to the company told Caixin that construction had begun. China’s capital is making efforts to become a regional EV production hub, spearheaded by locally-headquartered Xiaomi and Li Auto which both recently began factory operations with an annual capacity of 150,000 and 100,000 units respectively, in the outskirts of the city. The Chinese battery giant has, since early 2022, been running an 80 gigawatt-hour (GWh) facility in Shanghai’s Lingang area for Tesla, selling 233.4 GWh of batteries between January and November, according to figures compiled by industry tracker SNE Research. [Caixin, in Chinese]

Alibaba’s domestic marketplace, Taobao, has invited merchants to test an upgraded AI chatbot named Dianxiaomi, as its new CEO, Eddie Wu, encouraged the e-commerce giant to embrace highly sought-after artificial intelligence technology since he came to power last September. The chat tool, enhanced by an AI foundation model, is expected to be available to all Taobao and Tmall sellers in June. It aims to “better serve” pre-sales guidance, after-sales service, and data analysis, with the accuracy rate of Dianxiaomi improved to 85%, according to Alibaba. [Jiemian, in Chinese]

Honda is expected to complete construction work soon on its first factory for purely electric vehicles with a 120,000-unit annual capacity, as an e:NS1 crossover rolled off the final assembly line on Dec. 31 in the central Chinese city of Wuhan. Honda and its Chinese manufacturing partner Dongfeng have started testing systems during commissioning at the end of the project, with the facility set to begin volume production of Honda’s Chinese-market electric e:N lineup later this year, as reported by the local newspaper Hubei Daily on Wednesday. Separately, another new production base built by GAC-Honda, a joint venture between the Japanese automaker and the other partner GAC Group, is also scheduled for operation with an output of 120,000 EVs per year in the southern city of Guangzhou in 2024. Sales of Japan’s second-biggest carmaker declined 10.1% year-on-year to approximately 165,800 units in 2023, and the company plans to accelerate the transition to EVs with the rollout of 10 e:N series models by 2027. [Hubei Daily, in Chinese]

The total value of goods sold through WeChat’s TikTok-like service nearly tripled year-on-year in 2023, the key figure was revealed at WeChat’s annual flagship event on Thursday, but creator of the all-in-one app, Allen Zhang, was absent from the event again for three years and director-level executives also haven’t attend this year. Tencent did not disclose absolute figures. Livestreaming e-commerce orders completed on Channels, WeChat’s in-app short video feature launched in 2020, increased by over 244%, the company said. Tencent allowed content creators to charge viewers for watching certain videos last year, and has now expanded that to allow creators with at least 10,000 followers to set up members-only areas, where they post content only for paid subscribers. [Yicai, in Chinese]

NIO has received critical support from China’s local government of Anhui province, with an announcement on Thursday of a collaboration with the local state-owned power producer to build 1,000 battery storage-integrated recharging facilities in the region, where the company manufactures its electric vehicles. Anhui Province Energy Group Co., Ltd., or Wenergy Group for short, on Dec. 25 set up a joint venture called Zhongan Energy with NIO and battery maker Gotion High-Tech, along with several other state-owned firms with a registered capital of RMB 1.6 billion ($223.4 million). The firm, with Wenergy Group and NIO respectively holding a 44.4% and 19.3% stake, according to the Chinese business intelligence platform Tianyancha, will be responsible for establishing a “unified” infrastructure network for battery charging and swapping within the province. The companies also expect the new recharging facilities to help improve the flexibility and resilience of the power grid by actively balancing the demand and supply of electricity. NIO on Thursday also announced it has reached partnerships with Chery Automobile and JAC Group, two state-owned automakers with headquarters in Anhui, to jointly develop and operate battery swap stations, weeks after it reached similar deals with Changan and Geely. [NIO announcement, Tianyancha, in Chinese]

Chinese car brand Luxeed said on Tuesday that it will pay RMB 200 ($28) per day as compensation for some buyers of its first model S7 who have experienced delivery delays of more than six weeks. In a statement published on the Twitter-like platform Weibo, Luxeed said it is ramping up production to ensure high-quality deliveries, calling for patience from buyers. Some customers of Huawei-backed electric vehicle brand Luxeed have experienced delivery delays of weeks for the S7 sedan, forcing them to cancel their orders and casting a shadow over the growth outlook of the technology giant’s car business. Multiple buyers informed Jiemian that they were recently told to wait at least four weeks for the car. Many of them had placed their orders right after the launch event on Nov. 28, and some received no firm delivery dates even after waiting for six weeks. The EV brand, jointly launched by Huawei and its manufacturing partner Chery, has also faced issues such as very limited showroom cars for a test drive in some retail stores, sources said. The premium sedan went on pre-sale on Nov. 9 with a starting price of RMB 258,000 ($35,381), featuring Huawei’s latest proprietary Harmony operating system and partially automated driving software. The smartphone giant is reportedly launching new, more spacious stores dedicated to EVs, which could allow at least six cars to be displayed in-store, having partnered with multiple carmakers such as Seres and Changan. [Jiemian, Luxeed statement, in Chinese]

Updated: The post was updated on Jan. 17 to include Luxeed’s response to customers’ complaints over lengthy delays of the S7.

Cloud Network Technology, a subsidiary of Chinese electronics manufacturer Foxconn, will increase its investment in Ingrasys Technology Mexico by $10 million, aiming to expand its server assembly business in the country, the Taiwan-headquartered company said. As a subsidiary of Foxconn engaged in OEM (original equipment manufacturer) production, Ingrasys Technology Mexico was established in July 2021. Taiwan-based Ingrasys provides cloud infrastructure solutions for multinational strategic partners, including hyper-converged infrastructure (HCI), high-performance computing (HPC), AI machine learning, and advanced cooling technologies. Foxconn currently has built six factories in Mexico, according to its annual report. [Icsmart, in Chinese]

Chinese electric vehicle maker Leapmotor announced on Wednesday a new electric sports utility vehicle. Chief executive Zhu Jiangming says it is the only model on the market priced within RMB 200,000 ($27,920) and equipped with high-end chips from Nvidia and Qualcomm. The top-end, all-electric C10 integrates a DRIVE Orin system-on-a-chip from Nvidia with 254 TOPS of performance and Qualcomm’s five-nanometer Snapdragon 8295 processor, providing users with advanced features such as automated driving and AI assistant at a price tag of RMB 185,800 ($25,938). The Zhejiang-based automaker also introduced several extended-range hybrid variants with a price range between RMB 151,800 and RMB 181,800, offering a driving range of 1,190 kilometers (739 miles) on a full tank plus a full charge. Leapmotor debuted the C10 SUV with plans to launch it globally at the IAA Mobility in Munich in September, a month before it reached a €1.5 billion (nearly $1.6 billion) investment deal with Stellantis for 20% of its shares. [Leapmotor release, in Chinese]

Huawei announced on Wednesday that NetEase’s mobile game A Chinese Ghost Story was the first to use its open-source adaptation for HarmonyOS on the Unity China engine. In August 2023, Huawei and NetEase unveiled the game at a launch event, showing that the main rendering and logic integration had been completed, along with various software kits for video, audio, and user login. Huawei expects games that have integrated with its HarmonyOS to have significant improvements in performance and graphics. Moreover, Huawei is set to hold a HarmonyOS Ecology event next week, with sessions in eight major Chinese cities. During the event, Huawei will unveil its latest operating system updates. [IThome, in Chinese]

Shares of Nasdaq-listed Dada Nexus plunged nearly half on Monday after the on-demand delivery company said it found “suspicious” advertising revenue in an internal audit, casting doubt on the authenticity of Dada’s first profitability in the April quarter last year. In a regulatory filing, Dada said in the first three quarters of 2023, an estimated RMB 500 million in online advertising revenue plus another RMB 500 million in operating and support costs may have been overstated, and it will commission a third-party re-audit. The potential fraud event was announced a month after the chairman and chief financial officer of Dada resigned, with the former citing “personal reasons.” [DaDa Nexus filings]

On Tuesday, the US chip giant Nvidia introduced the production microservices NVIDIA Avatar Cloud Engine (ACE) that enable game developers, tool creators, and middleware developers to integrate generative AI models into the digital avatars within their games and applications. Chinese developers NetEase, Tencent, and HoYoverse are among the first major gaming studios utilizing this new platform. The ACE platform allows game developers to create interactive non-playable characters (NPCs) by using AI models such as NVIDIA Omniverse Audio2Face (A2F) and NVIDIA Riva automatic speech recognition (ASR). These technologies can translate spoken words from players into text, enabling AI NPCs to reply using a distinct text-to-speech tool, creating fully voiced and interactive game characters with expressive facial expressions. [Nvidia]

Southeast Asia-targeted e-commerce platform Lazada is laying off around 2,000 employees, or 20% of its headcount in the first downsizing since Alibaba’s acquisition in 2016, according to a Tuesday report by LatePost. The redundancy affects not only entry-level staff but also senior roles that rank above P8 and is aimed at bringing down costs, as six Lazada-covered countries have their own operations and support teams while headquarters were also involved in the same work previously. Lazada is still in a loss-making status, order growth has slowed over the past year, and the company also faces tightened competition from regional rival Shopee. The latest overhaul is set to shift focus towards centralized decision-making at the headquarters, which will use data-driven approaches to allocate subsidies and gain user growth for each country, a Lazada source told LatePost. [LatePost, in Chinese]

Tencent Games announced on Tuesday that underage players are allowed a maximum of 16 hours of gaming during the winter vacation and the Chinese New Year. In China, the school term typically begins in September, and the winter vacation is from the end of January to February, varying with the Lunar New Year of that particular year. Underage players can only log in to games between 8 and 9 p.m. on January 26-28, February 2-3, February 9-17, and February 23-24, according to the announcement. In August 2021, the National Press and Publication Administration of China issued a notice limiting the time for providing online gaming services to minors. All gaming companies are allowed to provide one hour of service to minors only on Fridays, Saturdays, Sundays, and statutory holidays between 8 and 9 p.m. [Tencent Games Weibo, in Chinese]

Alibaba has introduced a new AI feature that enables viewers to experience Terracotta Warriors dancing on screen to “kemusan”, a recent viral dance challenge sweeping social media, with videos powered by the image-to-video tool Tongyi Wuwang, which roughly translates as “one dance king”. Using Alibaba’s foundation model “Animate Anyone,” the function is able to animate a full-body photo to a ten-second dance video while maintaining original facial expressions and background, and can be tried directly via the e-commerce giant’s ChatGPT-like program Tongyi Qianwen. The MagicAnimate-like tool was debuted as Alibaba’s latest generative AI tool of a wave of artificial intelligence products to hit the public. [Jiemian, in Chinese]

In a New Year letter to employees, a Meituan executive conveyed a shift in the company’s focus, stating that they are now catering to users seeking low prices across the internet, departing from the previous targeted search-based consumer approach, as reported by local media outlet Jiemian. Zhang Chuan, president of Meituan’s store business group, expressed the belief that this year presents a opportune time to confront intense competition. He emphasized the need to establish a new supply model centered on providing “daily low prices.” Notably, ByteDance’s Douyin poses a significant threat to Meituan, with the widely-used short video platform reporting a 256% growth in gross merchandise volume (GMV) for local life services last year. Zhang characterized Douyin as an influential and rational opponent, describing the ongoing battle as a “brutal and tormented warfare” without an immediate winner. [Jiemian, in Chinese]

Li Auto plans to manufacture electric vehicles featuring advanced driver assistance and autonomous driving functions, utilizing Nvidia’s next-generation automotive-grade computer chips, DRIVE Thor. This move marks an expansion of the Chinese automaker’s collaboration with the U.S. chipmaker to address the increasing demand for assisted driving systems. Unveiled in September 2022 and slated for production in early 2025, the DRIVE Thor is a centralized car computer boasting up to 2,000 TOPS of performance. It enables automakers to integrate various intelligent functions into a single artificial intelligence compute platform, resulting in significantly lower development costs, reduced weight, and fewer cables. Chinese EV giants, from BYD to Great Wall Motor, have incorporated partially automated driving functions into their current models using Nvidia’s DRIVE Orin platform, providing 254 TOPS of performance. Furthermore, Geely’s premium EV brand Zeekr is poised to become the inaugural customer for Thor, as indicated in a release dated Sept. 20, 2022, by Nvidia. [Nvidia release]

KeeTa, a Hong Kong-facing food delivery platform owned by Meituan, has grabbed one-third of the territory’s market share within six months of its launch. Initially providing food delivery services exclusively in two residential areas, Mong Kok and Tai Kok Tsui, KeeTa now covers the entire Hong Kong territory, and official figures show that it has garnered more than 1.3 million downloads as of January 5. Meituan appears to have successfully replicated its mainland China path to become a market leader in the food delivery field in Hong Kong, as KeeTa accounted for around 30.6% of total delivery orders in the region in November, only behind Foodpanda and surpassing Deliveroo by nearly 3%, according to statistics provided by third-party platform Measurable AI. KeeTa also said it now boasts around 10,000 merchants and has experienced an average monthly merchant growth rate exceeding 30%. [Caixin, in Chinese]

Ant Group is on the verge of finalizing a $200 million deal to acquire Dutch payments firm MultiSafepay, as reported by Reuters, citing multiple sources. The purchase is currently awaiting regulatory approval. The owner of Alipay aims to acquire a 100% stake in MultiSafepay, a company providing income and expenditure services to over 18,000 small to medium-sized businesses, according to information on the company’s official website. This latest acquisition follows Ant Group’s majority stake acquisition in the Singapore-based payments firm 2C2P in 2022, marking a strategic move in its global expansion efforts to establish an international cross-border payments network. [Reuters]

On Jan. 7, Xreal, the Chinese augmented reality company formerly known as Nreal, revealed the Xreal Air 2 Ultra AR glasses for developers, as the company aims to compete with Meta’s Quest 3 and Apple’s Vision Pro. Pre-orders for the Xreal Air 2 Ultra are currently available at a price of $699, with shipping expected to begin in March. The new sunglasses-style device features six degrees of freedom (6DOF) tracking, enabling users to engage with immersive AR applications. Notably, the glasses are equipped with two environmental sensors integrated into their frame, which allows real-time tracking of the user’s location within a 3D space and facilitates hand tracking. Despite its lightweight design, at 80 grams the Air 2 Ultra weighs slightly more than its 72 gram predecessor the Air 2. [Xreal]

Tencent Nintendo Switch announced that its original “Nintendo Switch Official Store” will be de-platformed from Tmall with users advised to make purchases on the new “Nintendo Switch Store”, due to “operational adjustments”. The official Nintendo Switch Mall on WeChat, a major social media platform of Tencent, will also temporarily suspend services on January 15, 2024, to be resumed upon update completion. In December 2019, Tencent launched a Chinese version of the Nintendo Switch, but it suspended sales of the extended warranty plan for the Chinese Nintendo Switch in December 2023. [Tencent Nintendo Switch, in Chinese]

Chinese automaker Chery is set to launch multiple car models under its mainstream Omoda marque in the spring in the UK, followed by the introduction of its premium Jaecoo lineup in the summer. This strategic move positions Chery against rivals such as South Korea’s Hyundai and Kia. Simultaneously, as the manufacturing partner of Jaguar Land Rover in China, Chery is exploring the possibility of establishing two factories in Europe—one for the UK and neighboring Ireland, and the other for left-hand-drive markets in the region. Chery has initiated contact with the government for this plan after a British delegation visited China last month. Regional head Victor Zhang told the Financial Times on Thursday that it may take several years for the company to ramp up sales in the country. Chery, China’s third-largest carmaker, has sold nearly 1.6 million passenger vehicles, both gasoline and electric, from January to November, following BYD and Volkswagen’s joint venture with China’s FAW, according to figures from the China Passenger Car Association. [Financial Times]

Tencent’s multiplayer online battle arena game, Honor of Kings, emerged as the highest-grossing mobile game of 2023, raking in approximately $1.48 billion, as reported by market intelligence firm AppMagic. This revenue surpassed the second-ranked battle royale game, PUBG Mobile, by over $300 million. Candy Crush Saga, Genshin Impact, and Roblox claimed the third to fifth positions in 2023, with global revenues of $957 million, $944 million, and $869 million, respectively. Among newly released mobile games from Chinese developers in 2023, HoYoverse’s Honkai: Star Rail secured the eighth spot with earnings of $659.1 million, while NetEase’s Justice Online generated revenue of $358.2 million, securing the 18th place. [nadianshi, in Chinese]

On Thursday, Chinese phone manufacturer OnePlus unveiled its latest device, the OnePlus Ace 3, starting at RMB 2,599 ($366). The Ace 3 serves as a direct successor to last year’s Ace 2, featuring the Snapdragon 8 Gen 2 SoC, a 50MP Sony IMX890 main camera, a massive vapor chamber of 9140mm², and a substantial 5500 mAh battery. The device boasts a curved 6.7-inch LTPO AMOLED display with a resolution of 1,240 x 2,772 pixels and a dynamic refresh rate ranging from 1 to 120Hz. Manufactured by BOE, the panel offers a brightness of up to 1,600 nits in Auto mode and a peak brightness of up to 4,500 nits. The company claims that the 100W SuperVOOC fast charging technology can provide a full charge in 27 minutes. [IThome, in Chinese]

China’s central government has revealed its inaugural blueprint aimed at exploring the potential of load shifting through electric vehicles and charging infrastructure. The goal is to stabilize the power grid amidst the increasing adoption of battery-powered cars. According to a document dated December 13, publicly released on Thursday by the National Development and Reform Commission and three other top government departments, Beijing plans to implement real-time, flexible prices on a large scale nationwide by 2025. The initiative also anticipates off-peak charging to constitute over 60% of total electricity for EV charging in at least five pilot cities, primarily in affluent regions such as the Yangtze River Delta area and the Pearl River Delta area. Additionally, more than 50 large facilities for bi-directional charging are expected to be operational in those regions by that time, enabling energy storage in a car’s battery and its return to the power grid. According to Caixin, citing Pang Xiaogang, a deputy general manager at State Grid, the peak of EV charging load could reach 100 million kilowatts by 2030, approximately 5% of China’s maximum power load. [NDRC document, Caixin, in Chinese]

Douyin, the Chinese version of TikTok, reported a 256% increase in gross merchandise volume (GMV) for local life services last year, attributing the surge to its robust efforts in the local lifestyle sector. Douyin now proudly hosts over 4.5 million offline merchants, encompassing restaurants and lifestyle activity providers, spanning across more than 370 Chinese cities. This information was disclosed by Douyin on its official WeChat account on Wednesday. Additionally, in 2013, transaction volume completed during livestreamings witnessed a remarkable 570% growth from the previous year, while total sales generated from short videos saw an 83% increase compared to the prior year.[Douyin, in Chinese]

Huawei-backed electric vehicle brands Aito and Luxeed have paused all online advertising campaigns on popular Chinese auto service platforms Autohome, Yiche, and Dongchedi, as part of a move seen as aimed at pursuing a more direct sales strategy and reported by multiple Chinese media outlets. All content collaborations have been suspended until a new deal is reached, a Huawei representative told Jiemian on Wednesday, adding that the prior contracts expired recently, without revealing further details. Sources added that Huawei-backed EV makers now see only a very small proportion of offline sales driven by digital advertising, thanks to Huawei’s already strong brand awareness in the Chinese technology sector. The news also comes as Huawei reportedly plans to run 800 car showrooms this year under a new brand called the Harmony Intelligent Mobility Alliance and to expand its footprint with 1,000 sales locations by 2025. Separately, an Aito M7 crossover was among the worst performers in a winter test for real-world driving range organized by Dongchedi last month. Aito later responded by saying the heater on the vehicle was on for more than an hour before the test, challenging the accuracy of the evaluation. [Jiemian, in Chinese]

Duoduo Maicai, the grocery wing of PDD, has reportedly paused a local in-store merchandising campaign that began in December, Chinese media outlet LatePost reported on Wednesday. Originally set to launch after February’s Lunar New Year, the company postponed the scheme as efforts to seek more local partners offering in-store catering coupons, hotel reservations, sightseeing, and movie tickets appeared to fall short. The scheme, in which customers were encouraged to make advance purchases of discount coupons on Pinduoduo, was suspended in the last week of 2023, the report said. Meituan still dominates the local life sector for now despite new entrant Douyin’s challenge, and Pinduoduo, the online retail platform with loyal consumers primarily in low-tier cities, had been set to focus on cost-sensitive cities where Meituan and Douyin were less dominant. [LatePost, in Chinese]

Tesla shipped a record 947,742 China-made electric vehicles from its Shanghai facility in 2023, marking a 33.3% increase from the previous year. This growth rate, while slightly lower than the industry average, is based on figures compiled by the China Passenger Car Association (CPCA). The industry group estimates that sales of China’s new energy vehicles, including battery EVs and plug-in hybrids, will rise 38% year-on-year to 8.9 million units in 2023. Secretary General Cui Dong Shu anticipates a 22% increase in that number to reach 11 million units this year. Intensifying competition in the Chinese auto market has exerted pressure on Tesla. The US carmaker was surpassed by BYD in deliveries of battery EVs by approximately 42,000 units from October to December. Despite this, Tesla maintained its top spot as the world’s best-selling BEV brand, with deliveries reaching 1.8 million units last year. In comparison, BYD sold a total of 3.02 million NEVs, of which 1.57 million were BEVs. [CPCA announcement, in Chinese]

The Legion gaming laptop series from Lenovo is set to launch in China next week, following the launch of Intel’s 14th Gen Core HX processors in the Chinese market. Lenovo’s new flagship series, which includes the Y7000P, Y9000P, Y9000X, and Y9000K models, is anticipated to feature Intel’s 14th Gen Core HX processors and Nvidia’s RTX 40 series discrete graphics processing unit. Lenovo previously announced that the Y9000P model will offer an optional screen with a 240Hz refresh rate and P3 wide color gamut, while the Y9000K model will boast an optional 2TB SSD (solid-state drive) for expanded storage. Intel claims its 14th Gen Core processors, introduced by on October 16, 2023, offer a 23% improvement in gaming performance compared to processors from its leading competitors. [IThome, in Chinese]

Xpeng Aeroht, a Chinese startup backed by Xpeng Motors, is aiming for volume production of its electric passenger drones in the fourth quarter of 2025, with the electric vehicle maker set to work on the final assembly of what they describe as flying cars. Xpeng revealed the timeline in a regulatory filing on Tuesday as part of a framework agreement signed between one of its fully-owned subsidiaries and Aeroht, adding that Aeroht will pay RMB 71,000 ($9,940) for each aircraft when production volume is lower than 25,000. In October, Xpeng Motors chairman He Xiaopeng, who is the controlling shareholder of Aeroht, unveiled an electric flying vehicle prototype built on a modular system in which the flight and automobile components can be separated. Geely-affiliated Aerofugia also expects to secure an airworthiness certificate from Chinese regulators as early as 2025, which would facilitate the delivery of its electric vertical take-off and landing (eVTOLs) air taxis to its shareholder Sino Jet, a Chinese business jet operator. [Xpeng filing, TechNode reporting]

Li Auto has decided to put off launching the Mega, its latest battery-powered EV, from its earlier slated December. The Nasdaq-listed EV maker said it now plans to begin delivery of the allrounder on March 1, without giving reasons for the delay on China’s Twitter-like social media platform Weibo. Pre-sales of the seven-seater with a price tag of around RMB 600,000 ($82,800) began in November. The car resembles China’s highspeed bullet-style trains and comes with CATL’s next-iteration Qilin batteries, providing the vehicle with a 500-km (311-mile) additional range on 12-minute fast charging. Rival Xpeng Motors on Monday launched a similar offering, the X9, with a starting price of RMB 359,800. It is scheduled to deliver the van from later this month. Huawei-backed Aito said last week its M9 full-size sports utility vehicle will be priced from RMB 469,800 and delivered to customers from Jan. 26. [Caixin, in Chinese]

China’s Interim Regulations on Unmanned Aerial Vehicle (UAV) Flight Management took effect on Monday, outlining registration requirements, permissible flight altitudes, and UAV operator responsibilities. UAV operators are now required to log in to the civil aviation department’s website to register their UAVs with their real names and affix the generated QR code on the UAV body. Flying without real-name registration is henceforth a violation, subject to a fine of between RMB 200 ($28) and RMB 20,000 ($2820). Micro UAVs are allowed to fly below 50 meters, while light UAVs are restricted to altitudes below 120 meters. Additionally, parents or guardians may be fined if minors operate micro or light UAVs without adult supervision. [IThome, in Chinese]

China’s central bank agrees that Ant Group’s payment platform, Alipay, has no controller, as stated on the official website of the People’s Bank of China. This development is widely seen as a significant step in clearing a major hurdle for Ant Group to revive its abruptly canceled IPO in 2020. The recent adjustment reduces founder Jack Ma’s share voting power from 53.46% to 6.21%, eliminating any shareholder, whether direct or indirect, with single or joint control over Ant Group. A spokesperson from Ant Group noted that the completed voting rights structure of major shareholders, announced publicly in January 2023, will not impact the daily operations of relevant companies. [PBOC, in Chinese]

On Monday, Baidu announced the cancellation of its deal to acquire Joyy’s China-focused livestreaming platform YY Live, originally slated to conclude by the end of 2023. The collapse of the move, once seen as the tech giant’s ambitious foray into the flourishing livestreaming industry, was attributed to the deal’s closing conditions outlined in the November 2020 Share Purchase Agreement, which Baidu claimed had not been fully satisfied. The conditions involved obtaining necessary regulatory approvals from government authorities and completing the transaction within the stated deadline, though Baidu did not specify the precise reason for termination. In response, Joyy has declared that it is seeking legal advice and will explore all available options. [Baidu filing]

In November 2023, sales of surveillance cameras in the Chinese online market reached 2.16 million units, marking a year-on-year growth of 14.4%, as reported by market research firm RUNTO. The sales revenue amounted to RMB 450 million ($63 million), reflecting a year-on-year decline of 10.7%. RUNTO indicated that surveillance cameras were the sole category in China’s smart home devices market to experience year-on-year growth in sales volume during November. The increased demand for surveillance camera products is attributed to heightened consumer awareness of home security, competitive unit prices, and promotional events on China’s Singles’ Day (Nov. 11), according to the report. Xiaomi, Jooan, and Ezviz secured the top three positions in the sales chart, with market shares reaching 12.7%, 11.1%, and 7.9%, respectively. [RUNTO, in Chinese]

Chinese tech giant Huawei anticipates exceeding RMB 700 billion ($98.22 billion) in sales revenue for 2023, as revealed in an internal New Year message from Huawei’s rotating chairman, Ken Hu. This projection indicates a roughly 9% year-over-year increase compared to the reported RMB 642.3 billion ($90.25 billion) in 2022, with the growth primarily attributed to a significant uptick in smartphone sales. Huawei asserts strong performance across various business sectors, including growth in ICT infrastructure, terminals, digital energy, and cloud services. Despite these efforts, the company acknowledges ongoing challenges posed by geopolitical issues, technological sanctions, and trade barriers, according to Ken Hu. [Huawei, in Chinese]

Alibaba’s core cloud and computing business is shifting its strategy priorities to focus on public cloud services under an ongoing structure and personnel adjustment, according to a Thursday report by LatePost. The move would see the Chinese tech giant cut back on government and enterprise focused customization projects and its hardware integration business. Private cloud sales are set to belong to the hybrid cloud division, which is primarily profit-seeking, while the newly set up public cloud division will mainly target market share expansion, the report said. Alibaba Cloud has been under direct control of the company’s CEO Eddie Wu since September, with Wu announcing a strategy of driving growth through AI and prioritizing public cloud services on last month’s earnings call for the firm. Wu also stated that Alibaba’s cloud unit would build the “most open cloud in the AI era.” [LatePost, in Chinese]

On Thursday, Xiaomi unveiled the special customized edition of Xiaomi 14 and Xiaomi 14 Pro, featuring color schemes inspired by the company’s first electric vehicle, the SU7. The flagship smartphones now present color options mirroring those of the Xiaomi SUV 7, including gulf blue and olive green. Notably, olive green varies slightly from the standard green color initially introduced at the launch of the Xiaomi 14 series on Oct. 26. Both models, available in the 16GB + 1TB RAM storage configuration, maintain the same price as their standard counterparts at RMB 4,999 ($709) and RMB 5,999 ($850), respectively. All other specifications remain unchanged. [IThome, in Chinese]

Baidu’s ChatGPT-like ERNIE Bot has surpassed 100 million users, said Wang Haifeng, chief technology officer of the company on Thursday, four months after the AI bot get the green light for a mass launch from regulators. The company did not specify how many of the bot’s large base of users are active on the app. In its press release, the Chinese tech giant said the chatbot had generated 3.7 billion words of text in workplace scenarios and written 300 million lines of code. [Baidu, in Chinese]

Nvidia has unveiled the GeForce RTX 4090D, an exclusive edition for the Chinese market, designed to adhere to US export regulations. This version boasts 14,592 CUDA cores, 24GB GDDR6X memory, a 384-bit wide memory bus, a 2.28 GHz base clock, and a power consumption of 425W. Priced at RMB 12,999 ($1,840), it aligns with Nvidia’s flagship RTX 4090 GPU in cost. Notably, the 4090D differs with a 12.8% reduction in CUDA cores (14,592 from 16,384) and a 5.9% decrease in power consumption (425W from 450W) compared to the standard RTX 4090. [Jiemian, in Chinese]

On Tuesday, China’s capital Beijing launched a public computing platform to fuel need at the city’s universities, research institutes, and small AI enterprises. The launch comes at a time when expanding the supply of computing power has become a key focus for China as computational power needs mount with the rise of AI. Built and operated by Beijing Energy International Holding, a state-run company, the platform will provide 500 petaflops of computing power in the first phase and increase that to 1,500 petaflops in phase two, scheduled to go online in the first quarter of 2024. [Beijing Energy International Holding, in Chinese]

Chinese e-commerce giant JD announced on Wednesday evening that it is set to offer salary increases of up to 100% to front-line employees starting from the beginning of 2024. Procurement and sales staff will see their annual fixed salary nearly double. Meanwhile, all JD Retail employees are expected to receive an average pay raise of 20%, according to the announcement posted on JD’s official WeChat account. Procurement and sales staff are considered the key drivers of the low-price strategy within the Beijing-based company, as reported by local media outlets. These individuals are responsible for sourcing products across various categories from suppliers and ensuring goods availability on the retailing platform. The behind-the-scenes roles even involved selling goods via livestreaming during this year’s Singles Day, which JD claimed attracted more than 380 million viewers. [JD announcement, in Chinese]

Chinese electric vehicle brand Zeekr launched its first electric sedan, the 007, on Wednesday. Priced competitively at RMB 209,900 ($29,449), the 007 boasts fast-charging battery tech and is equipped with Nvidia’s Drive Orin processors for automated driving. The fully electric single-motor rear-drive 007 offers an estimated range of 688 kilometers (428 miles) and accelerates from 0-100 km/h (0-62 mph) in 5.6 seconds, outpacing the entry-level Model 3 by 80 km in range and reaching 62 mph in 6.1 seconds. Customers can opt for a 100 kWh Qilin battery pack from CATL, extending the range to 870 km with an additional 610 km in a 15-minute fast charging session. The four-wheel drive version accelerates from 0-100 km/h in 2.84 seconds and comes with an exclusive color option, priced at RMB 299,900. Zeekr’s sedan, set for delivery on Jan. 1, is already capable of autonomous navigation on expressways across China and will operate autonomously on fixed routes for daily commuters in major urban streets starting next June. [Zeekr release, in Chinese]

Tesla is planning to introduce a restyled, China-made Model Y sports utility vehicle featuring a new wheel design and ambient lighting, with mass production expected to begin in its Shanghai factory as early as mid-2024, Bloomberg reported on Wednesday. Tesla’s Shanghai Gigafactory is undergoing preparations for the move and will suspend production for a week during the lunar New Year holiday for a partial upgrade, which will be followed by more adjustments before mass production, people with knowledge of the matter told Bloomberg. The news comes just two months after the US electric vehicle giant began selling a refreshed version of its popular crossover with prices remaining the same in China on Oct. 1, having faced intensified competition from rivals ranging from BYD to Xpeng. The entry level version of the existing Model Y can accelerate from 0 to 100 km/h (62 mph) in 5.9 seconds, faster than the 6.9 seconds of its predecessor, although radar sensors were removed by the automaker to instead rely on cameras for automated driving. [Bloomberg]

At the winter launch event, Huawei introduced its mid-range nova 12 series smartphones on Tuesday, starting at RMB 2,999 ($420). The series comprises three versions: nova 12 Ultra, nova 12 Pro, and nova 12. All models operate on HarmonyOS 4.0, with only the nova 12 Ultra supporting satellite messaging without terrestrial signal. Notably, executives did not disclose detailed chip information at the event. Earlier reports suggested self-developed Kirin chips for the nova 12 series, sparking industry interest and potentially marking Huawei’s return to self-developed chips in the mid-range smartphone lineup. Huawei, at present, has not commented on this matter. [The Beijing News, in Chinese]

Chinese electric vehicle brand Aito aims for annual sales of 600,000 electric vehicles in 2024, more than 10 times this year’s total, according to sources cited by LatePost on Tuesday. The brand, a collaboration between Huawei and manufacturing partner Seres, has briefed parts suppliers on the outlook, offering three models (M5, M7, and M9) currently and plans for another, the M8, next year. Aito recently launched the M9, a luxury full-size crossover with Huawei’s technologies, priced at RMB 469,800 ($65,725). The EV brand reported over 10,000 non-refundable orders for the flagship SUV within two hours of its launch on Monday. Aito’s EV sales were approximately 75,000 units last year and around 68,000 units from January to November this year, with monthly deliveries expected to exceed 23,000 in December and surpass 30,000 in January, as stated by Richard Yu, CEO of Huawei’s consumer business group, on Nov. 28. [LatePost, in Chinese]

Chinese tech giant Huawei’s self-developed operating system HarmonyOS for PCs is nearing completion and is set to launch next year, as reported by the 21st Century Business Herald. Huawei introduced HarmonyOS in 2019, showcasing a micro-kernel architecture and supporting diverse applications. Huawei sources have disclosed the aim to extend HarmonyOS to more terminals, reinforcing the company’s presence in various fields. At a Tuesday press conference, Huawei’s CEO, Yu Chengdong, expressed gratitude for consumer support and emphasized the company’s commitment to delivering high-quality products and premium experiences through increased R&D innovation. [IThome, in Chinese]

Chinese electric vehicle brand Aito on Tuesday launched a luxury full-size sports utility vehicle that it claims features unmatched safety and luxury with Huawei’s cutting-edge technologies including a gigantic heads-up display and automated driving capabilities for urban scenarios. Huawei and its manufacturing partner Seres made the body sections of the Aito M9 with the use of large, high-pressure casting machines that weigh up to 9,000 tonnes, a technique also used by Tesla for producing its Cybertruck. This will greatly boost the vehicle’s structural stiffness with the reduction of components from several hundred to only about 10 or so, Richard Yu, chief executive of Huawei’s consumer business group, said during a press conference in Shenzhen. The three-row SUV is equipped with a 75-inch, augmented-reaility, head-up display unit that can present major traffic information such as navigation in a high-resolution, transparent display, as well as a 32-inch, foldable projection screen curtain for entertainment in the middle of the car. Scheduled for delivery on Jan. 26, the six-seater will be capable of navigating by itself on busy streets across major Chinese cities, and is priced from RMB 469,800 and RMB 509,800 ($65,725 and $71,321) for the range-extended hybrid and all-electric versions, respectively. [Aito release, TechNode reporting, in Chinese]

Short video platform Douyin has brought artificial intelligence technology to its in-app search function, with the goal of “assisting users in finding desired content more quickly,” according to an outline on the feature’s introduction page. The TikTok sibling’s AI Search function is currently under beta testing before a full-scale launch. It is not only capable of providing intelligent recommendations based on users’ search history and preferences, it also supports the searching of content outside of the video platform. Users are encouraged to offer feedback on the AI-generated results through a dedicated button located at the bottom of the interface. [GeekPark, in Chinese]

China’s Instagram-like Xiaohongshu has clarified that it currently has no plan to go public after a local report said the company may list in Hong Kong as early as the second half of 2024. Boasting 1 billion daily active users, the lifestyle-sharing platform operates as a real-time search engine covering a wide range of content from studying abroad preparations and household cleaning tips to sightseeing and food recommendations. Xiaohongshu’s push into e-commerce this year has boosted its higher-than-expected net profit, which a previous Bloomberg report cited sources as saying the company is projected to achieve a net income of $500 million in 2023. [Jiemian, in Chinese]

Chinese battery maker Gotion High Tech will target an annual shipment of 100 gigawatt-hours (GWh) worth of batteries in 2027 for overseas markets, including the Americas, the Asia Pacific region, Europe, and Africa, said Cheng Qian, president of Gotion’s Asia-Pacific business unit, on Dec. 23. Cheng also expects overseas revenue to exceed RMB 100 billion ($14 billion) and for the firm to have captured a 10% market share for the target regions at that time. The Volkswagen-backed manufacturer is aiming to become a more comprehensive battery supplier for electric vehicles and energy storage, among other uses. Gotion reported overseas revenue of nearly RMB 3 billion last year, accounting for almost 13% of its revenue, with total shipments surging 112% year-on-year to 14.1 GWh, according to figures compiled by South Korea’s SNE Research. The company began production at its first regional plants in Gottingen, Germany, and Thailand, in September and December, respectively, and has plans to construct two plants in the US and one in Morocco. [Gotion announcement, in Chinese]

China’s game live-streamer Huya has agreed to buy a 100% equity interest in Tencent-operated global mobile application service provider, according to Huya’s filings to the SEC, in a deal for cash consideration of $81 million. Huya did not disclose which specific bid was being made in the document. The latest selling comes several weeks after tech giant Tencent sold animation and comics businesses to digital publisher Yuewen Group amid cost-cutting efforts. The acquisition is expected to “enhance Huya’s ability to promote and distribute game applications in international markets,” the company said. [Huya; China Star Market]

Correction: An earlier version of the article misidentified unspecified bids as specific bids.

On Dec. 22, Tencent witnessed a decline of approximately $46 billion in market value, while NetEase faced a loss of around $17 billion, after a surprising move by China’s gaming authority, which introduced new regulations targeting excessive gaming and spending. The National Press and Publication Administration of China (NPPA) today issued the approval of 105 new domestic game licenses, as the authority intends to demonstrate a supportive stance toward the development of online games. This marks the first time a single batch has received approval for over a hundred game licenses. As of now, 977 domestic games and 98 imported ones have been issued in 2023, marking a twofold increase compared to the previous year. [NPPA, in Chinese]

Alibaba has promoted six younger figures to lead key operations within Taobao and Tmall on Dec. 22, two days following CEO Eddie Wu taking over from Trudy Dai as the direct leader of Alibaba’s domestic e-commerce marketplaces. The rejuvenated management team further signals that the 24-year-old company is adapting to more flexible strategies as an offensive move amidst the unstoppable upward trend of rivals Pinduoduo and Douyin. The youngest person promoted this round is 1987-born Wang Tingxiang, who now heads the newly formed fashion and apparel development unit. Wu Jia, aged 38, has been named in charge of improving Taobao’s user experience, largely thanks to his track record of leading the incubation of the search engine Quark, which Eddie Wu considered as one of Alibaba’s four strategic-level innovation businesses in the recent earnings call. [LatePost, in Chinese]

The Enforcement Directorate (ED) in India, a financial crime-fighting agency, recently arrested several senior executives of Vivo India, including the interim CEO and CFO, as revealed by sources familiar with the matter. In response, a spokesperson for Vivo stated that the company will use all legal means to address these accusations. In October, the ED had already arrested four executives from Vivo India on charges related to illegal remittances. The arrested individuals allegedly established 23 companies in India, which were found to have assisted Vivo India in transferring a substantial amount of funds, according to the ED. Vivo is accused of transferring 624.76 billion rupees (around $7.5 billion) in this alleged case of tax evasion, representing almost 50% of the company’s overseas revenue in India. [Icsmart, in Chinese]

Alibaba’s supermarket chain Freshippo has suspended new membership subscriptions since Dec. 13, according to local media outlet Yicai, which quoted a Freshippo source. The move comes two months after the grocery retailer introduced large-scale discounts across most of its product range. The activation fee for a one-year membership is RMB 258, which is very close to rival Sam’s Club’s annual membership fee, and grants customers a discount of 12% off every Tuesday. Freshippo, however, caused dissatisfaction among its members in October after it allowed all offline shoppers to purchase goods at a price 20% lower than the original in an unexpected move. “The ultimate goal of is to ensure ‘price reduction for all consumers’ in stores,” Freshippo told Yicai. [Yicai, in Chinese]

The National Press and Publication Administration (NPPA) today issued Draft Management Measures for Online Games, open for public feedback until January 22, 2024. In future, online games will not be allowed to provide rewards for daily logins, or first-time and consecutive in-game purchasing. All game publishers will be prohibited from promoting or allowing high-priced transactions of virtual items through hype or auction. Charge limits will apply, as disclosed in service rules and pop-up warnings to players engaging in “irrational consumption”. Following the announcement, NetEase’s stock dropped over 20%, while Tencent’s fell by more than 15%. [NPPA, in Chinese]

JD Logistics has shortened individual-to-individual delivery time in Beijing, Shanghai, and seven provinces, the e-commerce giant’s logistics arm announced on Thursday, in a move to grab customers as it fights Alibaba’s Cainiao. The company said recipients could see their delivery from other cities in the same province as early as 8 am the next morning, and couriers could pick up items to be sent any time up to 11 pm at night. It also plans to expand coverage of “next-morning delivery” to more Chinese cities, according to the statement. [JD Logistics, in Chinese]

Chinese air mobility maker EHang said on Thursday that its EH216-S, a passenger-carrying unmanned aerial vehicle (UAV), had been granted China’s standard Airworthiness Certificate (AC), marking it the world’s first unmanned electric vertical take-off and landing (eVTOL) aircraft to receive such certification. The Civil Aviation Administration of China (CAAC) certified EH216-S, produced at EHang’s Yunfu Production Base, complies with the type certificate (TC) issued by the CAAC in October 2023 and follows procedures set by CAAC for production. The first EH216-S has already been delivered to ETON, an aviation technology subsidiary of China’s Guangzhou Development District Communications Investment Group, which is managed by Guangzhou’s Huangpu District local government. [CAAC, in Chinese]

TikTok and Douyin owner ByteDance is expected to achieve $110 billion in sales this year, as reported by Bloomberg on Wednesday, which cited a source with knowledge of the matter. The figure likely surpasses that of Tencent, the Chinese tech giant that generated $63.5 billion in the first three quarters of 2023. ByteDance’s growth rate this year is approximately the same as the 30% it achieved in 2022, according to the report. Although it’s unclear how well the Beijing-based company will perform in terms of net profit, the impressive revenue already demonstrates ByteDance’s resilience in a year when its flagship app TikTok faced security scrutiny in the US and a temporary suspension of e-commerce operations in Indonesia. [Bloomberg]

Douyin, China’s TikTok sibling which is increasingly focusing on on-demand local services, has released a fine dining list for the first time covering 14 first-tier and new first-tier cities in China on Tuesday, in a further challenge to rival Meituan’s dominant position in the sector. Listing a total of 175 outlets that “offer quality catering services,” the Douyin catering report seems like a response to Meituan’s Black Pearl guide, itself a riposte of sorts to the Michelin Guide that has been released annually since 2018 with the stated goal of creating “Chinese’s own cuisine list.” Of the 500 restaurants and cafes initially shortlisted for the guide, all 500 have already opened accounts on Douyin and most promote themselves through short video. Vice President of Douyin’s in-store business Li Wei said at the guide’s release event that the platform hopes to select good restaurants for users that are “really worth going to and affordable to go to.” Chinese tech outlet LatePost reported previously that the TikTok sibling app generated RMB 100 billion in local life services in the first half of this year. [Douyin, in Chinese]

Three of China’s biggest electric vehicle makers – BYD, Chery, and SAIC – are in discussions with Mexican authorities over the setting up of car assembly plants in Latin America’s second largest economy, arousing concerns of Chinese firms finding a way to bypass US restrictions. US government officials are concerned that such investments would allow the Chinese carmakers to sidestep Biden administration measures such as the Inflation Reduction Act, which prohibits China-made EVs from receiving US tax breaks, people familiar with the matter told the Financial Times. Sources added that BYD could initially invest hundreds of millions of dollars in the country, while SAIC-owned MG Motor could look to invest up to $2 billion. Speaking to Motortrend on Oct. 11, Brian Wu, executive vice president of Chery Mexico, said the company has developed a roadmap for entering the US, but how and when it would happen exactly had not yet been determined. [Financial Times]

Chinese auto tech startup iMotion saw its stock end almost 13% below its initial public offering price on Wednesday in an underwhelming Hong Kong debut, reflecting investors’ concerns about its heavy reliance on a single client in a competitive market. The Suzhou-headquartered company has been a partner to Intel’s Mobileye since early 2018 and facilitated the adoption of Mobileye’s SuperVision advanced driver-assist system on electric vehicles launched by Geely-owned electric car brand Zeekr since late 2021. However, the firm’s current revenue model relies heavily on Geely, from which it generates roughly 95% of its revenue during the first half of 2023, making it subject to the risk of immediate instability from the loss of its single biggest client. Over the period, the company posted revenue of RMB 543 million ($76 million) on a net loss of RMB 100 million, while predicting losses to continue in the foreseeable future. [Caixin, in Chinese]

Alibaba on Wednesday gave CEO Eddie Wu direct control of its Chinese e-commerce business, making him chief executive of both its cloud and domestic retail units at the same time in the tech giant’s latest restructuring. Former executive Trudy Dai is being appointed to assist with the establishment of an asset management company, the group’s chairman Joe Tsai announced in an employee-facing letter. “A new era requires a new strategy and organizational system change,” said Tsai, as the e-commerce giant increasingly sees its market dominance threatened by low-price-focused Pinduoduo. The move strengthens Wu’s direct control over Alibaba’s most profitable business and will likely the company’s retail marketplaces adhere to a more AI-driven strategy as proposed by Wu in September. [NBD, in Chinese]

TSMC Chairman Mark Liu has decided not to pursue a nomination for the upcoming term on the TSMC board and intends to retire from the company following the 2024 annual shareholders meeting, according to the company’s statement. The board of TSMC recommends Vice Chairman C.C. Wei to take over as the next chairman, pending the election of the incoming board in June 2024. Mark Liu, who joined TSMC in 1993 and took on the role of chairman in June 2018 after founder Morris Chang’s retirement, expressed gratitude for the 30-year journey with TSMC. Currently, TSMC manufactures advanced 3nm chips and plans to start mass production of 2nm chips in 2025. [TSMC]

A Thai coffee chain that shares an almost identical logo with China’s Luckin Coffee is reportedly claiming 10 billion Thai baht ($2.86 billion) as a financial loss from the latter, according to Chinese media outlets quoting Thai reports. 50R Group, a Thai company that operates Luckin’s Thai version, noted in the indictment that Luckin had “repeatedly compelled the plaintiff to cease using the trademark and forcibly seized its property” before the court made a final judgment on Luckin’s accused “fake” Thai stores on Dec. 1. Luckin, on Wednesday, posted on its official Weibo account, saying the claim has “yet to be verified,” and added it’s really shocked about how the lawsuit is progressing. The move comes after the Chinese coffee chain failed in a lawsuit alleging 50R Group’s trademark infringement in the Southeast Asian country. [Luckin Coffee, in Chinese]

Qorvo, a US manufacturer of semiconductors and radio-frequency (RF) solutions, announced on Monday that it has reached an agreement to sell its assembly and test facilities located in Beijing and Dezhou, China, to Luxshare Precision Industry, a Chinese contract manufacturer. The companies expect to complete the transaction by the first half of 2024, pending regulatory approvals and the fulfillment or waiver of other closing conditions. Upon closing, Luxshare will take over the operations and assets of each facility, including property, plant, equipment, and the existing workforce, while Qorvo will retain its sales, engineering, and customer support in China to continue serving its customers. Luxshare will be responsible for assembling and testing products for Qorvo under a newly established long-term supply agreement, according to Qorvo’s statement. [Qorvo]

On Monday, Xiaomi responded to user concerns about its smart door lock after reports of accidental door openings, as the incident sparked discussions about the lock’s safety. Xiaomi clarified that the products showcased in related videos employ semi-automatic lock bodies equipped with in-line C-level lock cylinders. These models lack the automatic retraction function of the lock tongue, eliminating the potential for spontaneous openings. There exists a theoretical scenario in which the door may open automatically, in instances where the door is not fully closed or when the installation tolerance of the door frame is too large. Xiaomi underscored that the smart door lock cannot support network remote unlocking. The engineer conducted on-site inspections of the product but did not reproduce the situation as shown in the video, according to Xiaomi. The company will also invite a third-party agency to conduct tests on the product, Xiaomi added. [Xiaomi Representative’s Weibo, in Chinese]

Renowned for developing popular games like Genshin Impact, Chinese game publisher HoYoverse will be creating exclusive games designed specifically for HarmonyOS, as announced by Huawei on Monday. Huawei continues to advance HarmonyOS for smartphones this year, positioning it as a competitor to iOS and Android. Despite its potential, HarmonyOS faces a challenge in limited application support, prompting Huawei to collaborate with multiple Chinese companies to enhance its app ecosystem. Currently, leading domestic applications or platforms that have announced partnerships with Huawei’s HarmonyOS include Alipay, Weibo, NetEase Games, Meituan, Bilibili, Xiaohongshu, Amap, and DingTalk. [Huawei Cloud’s Weibo, in Chinese]

NIO said on Monday that it had signed a share subscription agreement with CYVN Holdings for a $2.2 billion capital injection, as the Abu Dhabi-controlled fund raised its bet on the Chinese electric vehicle maker following a $1.1 billion investment in July. CYVN Holdings will take a total of a 20.1% stake in NIO after the deal is completed, making it the largest shareholder of the company entitled to hold two seats on NIO’s board of directors. Founder and chief executive William Li still holds a controlling stake and voting rights at the EV maker. The Middle East is becoming a major supporter of Chinese EV makers as the Gulf region, known for its oil and gas riches, looks to diversify the economy in preparation for a global transition to green energy. Saudi Arabia’s Ministry of Investment is set to invest $5.6 billion in Shanghai-headquartered Human Horizons based on an agreement signed in June, while Beyonca, backed by Renault and Dongfeng Motor, in October signed a memorandum of understanding with Riyadh-based Al Faisaliah Group Holding Company. Li told Chinese reporters on Dec. 14 that NIO plans to enter the United Arab Emirates in 2024. [NIO statement]

Bilibili users sent the Chinese word “Ah?” over 13.2 million times as a bullet comment on the video site over the course of 2023, serving as a brief way for viewers to express surprise in response to content creators showing off their skills, or to discovering “treasured content” and witnessing major technological breakthroughs via the site’s videos. The platform labeled “Ah?” as the annual bullet subtitle of 2023 in cooperation with the state-affiliated institution China Cultural Relics Exchange Center and National Museum of Chinese Writing last week. Bullet comments are so-called because of the way they shoot across the screen when posted by users watching a video. 2023 marks the seventh consecutive year that Bilibili, the video-streaming platform highly favored by Chinese millennials and Gen Z, has published the most representative bullet comment. The phrase of the year last year was “youya”, or “elegant” in English, which was used to complement impressive videos. [Bilibili, in Chinese]

OpenAI has suspended ByteDance’s account after tech outlet The Verge reported that the TikTok owner has been secretly using OpenAI’s API to train its own large language model at almost every stage, violating the ChatGPT creator’s business terms that forbid users from developing a rival AI model using ChatGPT outputs. ByteDance acknowledged that it had previously used GPT-generated data to “annotate the model”, but had already removed this data around the middle of this year. The Beijing-based firm implemented most of its GPT usage through Microsoft’s Azure, with an OpenAI spokesperson admitting the usage appeared “minimal”, but the Microsoft-invested startup has nevertheless suspended ByteDance’s account while it undertakes a full investigation into any potential violations of its terms and conditions. [Caixin, in Chinese]

Shanghai local authorities have continued their policy of issuing free license plates for battery electric vehicles for another year starting Jan. 1. However, they have lifted the requirements for applicants aiming to promote green vehicles while restricting vehicle ownership to control the city’s traffic. Individuals are now required to have received social security payments for at least 36 months consistently, rather than 24 months as previously stated, before applying for free license plates for their electric vehicles. This information comes from a document released by the Shanghai Municipal Development and Reform Commission, along with four other government departments. The updated regulation has also tightened the requirements pertaining to institutions’ applications for EV license plates. It details that businesses should have at least five employees covered by social security or pay their taxes for more than a year. Shanghai initiated restrictions on the sales of gasoline vehicles in 1994. Buyers have to bid for license plates through auctions and lotteries, boosting EV sales to more than 262,000 units in the city for the first 10 months of this year, the highest among Chinese cities. [Shanghai gov announcement, in Chinese]

Temu has filed a fresh lawsuit against rival Shein accusing the fast fashion giant of carrying out “a multifaceted scheme” to slow Temu’s growth in the US, according to a Wednesday filing. The ultra-low price retailer is alleging its Chinese counterpart infringed upon its intellectual property rights and entered into anti-competitive exclusivity agreements with merchants. The documents from Temu say Shein’s actions have “escalated recently.” The new lawsuit comes just weeks after the two sides agreed to end legal battles with each other in late October. According to the filing, Whale Inc, the operator of Temu in the US, has accused Shein of using “false imprisonment”, “phone seizure” and “loyalty attestations” as tactics to force merchants not to work with Temu, with the documents labeling Shein “a Potemkin village”. [Temu court filing]

East Buy, a subsidiary of private tutoring giant New Oriental that successfully transitioned to livestream-selling farm products, saw its market price slump nearly 20% after a dispute involving influential livestreamer Dong Yuhui intensified. East Buy’s official Douyin account said promotional content read by Dong in a recent livestream was a result of multi-party collaboration and not Dong himself. East Buy now has over 30 million followers on China’s TikTok sibling Douyin, 800,000 less than a week previously. Founder and chairman of New Oriental Michael Yu apologized on Thursday as public uproar resounded online, saying it was supposed to be an “internal matter” and exposed to “big holes” in East Buy’s management. [TechNode reporting]

AGIBOT, an intelligent robot company, recently secured a new round of financing valued at RMB 600 million ($85 million), according to a report by Chinese media outlet 36Kr. The company is reportedly also preparing another round of financing with a pre-investment valuation of RMB 7 billion ($980 million). Founded by Peng Zhihui in February, AGIBOT unveiled the Expedition A1 humanoid robot with a PowerFlow joint motor, a reverse-joint design, and a dexterous hand called SkillHand, in August. Peng (also known as Zhihui Jun and who was born in 1993), chose to depart from Huawei in December 2022 to establish his own robot company, despite being offered an annual salary of millions of RMB through Huawei’s Genius Youth Program. [36Kr, in Chinese]

On Wednesday, Huawei launched the Harmony Intelligent Mobility Alliance (HIMA) app, a smart driving application for its Huawei-branded cars, on major Android application platforms in China. HIMA represents a new upgrade of Huawei’s auto business, currently encompassing the AITO and LUXEED series models. Users can remotely control their vehicles through this app, including locking the car, controlling windows and the trunk, adjusting air conditioning, monitoring real-time vehicle status, and finding charging stations on the map. Additionally, it provides online test drive reservations and facilitates online purchasing for Huawei cars. In November, the AITO series achieved a record-breaking 18,827 vehicles, marking a 48.24% increase compared to the 12,700 vehicles delivered in October, as reported by the company. [IThome, in Chinese]

The update log for Xiaomi’s HyperOS reveals a new feature that can automatically block porn apps and trigger a police alarm, as per a recent image posted on Douyin (Chinese version of TikTok). This image has sparked widespread discussion and concern among Xiaomi’s domestic users. Wang Hua, the manager of Xiaomi’s PR department, posted a clarification via the Twitter-like platform Weibo, stating that the original update log is focused on “updating Google security patches to enhance system security.” He encourages netizens who have updated the HyperOS to help spread the clarification. On October 26, Xiaomi announced the launch of the domestic version of HyperOS, a self-developed operating system for Xiaomi devices, with the international release scheduled for the first quarter of 2024. [Weibo, in Chinese]

WeChat is set to charge security deposits for mini-programs that are designed for users to watch short dramas within the messaging app, as reported by the Shanghai Securities Journal, citing various industry sources. According to the report, the deposit amount varies, with some receiving RMB 1,000 payment notices, while others are required to pay RMB 100. Mini-apps may face limited visibility in search results unless operators fulfill the deposit payment, as outlined in the payment notice. The deposit aims to ensure the provision of “high-quality goods and services” by the operator, according to Tencent regulations. This move underscores the increasing content control within the rapidly growing short web drama market. [Shanghai Securities Journal, in Chinese]

Alibaba injects an additional $634 million into Lazada, its Southeast Asia arm, amid escalating regional competition, reports Tech in Asia. This latest investment brings Alibaba’s total injection into Lazada this year to over $1.8 billion. The move follows Chinese counterpart TikTok’s $1.5 billion investment in Indonesia-based GoTo’s e-commerce unit to revive its online shopping business, three months after the short video platform had been forced to suspend retail services. Alibaba’s International Digital Commerce, overseeing overseas marketplaces including Lazada, saw quarterly revenue soar at a double-digit pace this year though still making a loss. [Tech in Asia]

SES, a battery startup supported by General Motors, Hyundai, and Honda, has entered into a joint development agreement (JDA) with one of its major investors to create prototype lithium-metal batteries labeled as B-Sample. This move aims to promote the adoption of this emerging technology in electric vehicles. Chief Executive Hu Qichao, declaring the agreement the first of its kind in the industry on Wednesday, didn’t disclose the carmaker’s name but mentioned that a similar deal with another backer is imminent. The B-Sample is the second-level prototype in the automotive industry, featuring full specifications and can be installed into test vehicles for further validation, typically taking one to two years. Last May, the Boston-headquartered company announced its intention to enter the series production process after completing the validation of C/D-sample which may last another two years. Lithium-metal batteries, which lack the carbon materials used in existing lithium-ion batteries and have pure metal lithium in the anode, theoretically offer longer driving ranges and more cabin space. [TechNode reporting]

China’s central government is set to raise the threshold for the exemption of new energy vehicles (NEVs) from purchase taxes in June, introducing changes such as higher driving ranges for battery electric vehicles. The lowest driving range for all-electric vehicles qualifying for EV tax breaks will increase from 100 kilometers (62 miles) to 200 kilometers, as outlined in a document published on Monday by the Ministry of Industry and Information Technology, the Ministry of Finance, and the State Taxation Administration. As part of the update, Beijing has also issued new technical standards, including the lowest energy density of EV batteries, aimed at ensuring limited degradation of driving ranges in freezing temperatures. Additionally, carmakers are now required to provide proof of ensuring battery swap services to customers who purchased their EVs with swappable batteries, either by establishing their own battery swap stations or delegating third parties to offer the service. In June, the central government had announced that Chinese EV buyers would be entitled to a 10% purchase tax exemption until the end of 2025, marking the extension of the policy for the fourth time since its initial release in 2017. [MIIT release, TechNode reporting, in Chinese]

China Literature Limited (Yuewen in Chinese), a leading online literature and intellectual property platform in China, announced on Monday that the company has entered into an asset transfer agreement with Tencent to acquire the related assets of Tencent Animation and Comics, including related app platforms and the intellectual property rights and related rights to its content, for RMB 600 million ($84 million). Established in 2012, Tencent Animation and Comics is a domestic animation and comic platform that has launched popular titles including The Outcast, The Fox Spirit Matchmaker, and Spare Me, Great Lord. Notably, the adapted animation series of the comic title The Outcast has accumulated over 6.5 billion video views on the Tencent Animation and Comics platform. [Jiemian, in Chinese]

The Chinese version of Cookie Run: Kingdom is set to launch on Dec. 28, following a final user test conducted by game distributor Tencent Games in China from Dec. 4 to assess the game’s overall completeness. The Chinese version will introduce new content, including a Chinese voice cast, additional characters, game skins, decorations, and collaboration plans with other Tencent games. Developed by Korean developer Devsisters, Cookie Run: Kingdom is a mobile RPG (role-playing game) where players build a kingdom and lead a team of cookie characters on an adventure to defeat the evil enemy Slimes. Combining base-building elements with real-time combat, the game features colorful graphics and various cookies with unique abilities. Since its release in January 2021, Cookie Run: Kingdom has generated $400 million by February 2023, with over 27 million downloads in two years, according to analytics firm Sensor Tower. [nadianshi, in Chinese]

KargoBot, the autonomous truck unit of Chinese ride-hailing giant Didi, announced on Monday that it has secured an undisclosed amount of funding from Beijing-based auto tech unicorn Horizon Robotics. The two companies are strengthening their alliance to promote the adoption of autonomous vehicles. KargoBot stated that it has been validating domain controllers, a computer that controls vehicle functions related to a specific area, such as body and chassis. This validation is based on Horizon’s Journey series processors, following their partnership established in April. The news follows reports in October that Didi raised RMB 450 million ($61.7 million) for the separate unit from investors, including cashmere maker Erdos Group. Didi has been piloting over 150 robot trucks for cargo deliveries in China, especially in the northern region. Horizon has also supported Chinese self-driving companies like Qcraft, as they collaboratively develop assisted driving technologies for passenger electric vehicles, including Li Auto and other carmakers. [KargoBot announcement, in Chinese]

Bubble tea chain Heytea opened its first US store last week in New York, marking the first Chinese-style tea maker to enter the world’s largest economy while its Chinese rivals still focus on building their presence in South East Asia. The New York Heytea menu has 16 beverages on sale, including fruit-made tea and milk tea, priced between $3.99 and $7.49. The brand is initially offering buy one get one free deals at the Manhattan-located store. The Shenzhen-headquartered company began its global expansion in Singapore in 2018, six years after its founding, and currently has operations in the UK, Australia, Canada, and Malaysia. [Jiemian, in Chinese]

Huawei’s deputy general manager of the French branch, Zhang Minggang, announced on December 10 that Huawei’s first overseas factory will be established in France, with production expected by the end of 2025. The construction is progressing toward the goal of manufacturing one billion devices annually and creating 500 local employment opportunities. Huawei plans to manufacture and supply the entire European market from France, with an investment of 200 million euros. Instead of smartphones, this factory will produce components for 4G and 5G base stations, including chipsets and motherboards. By 2021, Huawei achieved 2.5 billion euros in sales in France, creating approximately 10,000 jobs and holding a 20% market share in France’s telecommunications infrastructure market, according to the company. [IThome, in Chinese]

Richard Liu, founder of Chinese e-commerce giant JD, admitted the company “must change” at an internal forum and blamed himself for the mismanagement of multiple issues at the firm. Liu’s comments came in response to an operations employee who pointed out that a flurry of problems currently exists at the retailer, from complicated promotion mechanisms and inadequate implementation of low-price strategies to insufficient cross-sector linkages, according to local media outlet LatePost. “It hits the company’s pain points,” Liu wrote, while encouraging JD employees to be more patient due to the time he said it would take to adjust at the “huge and bloated organization.” Liu’s comments come after Alibaba founder Jack Ma also urged his company to embrace change two weeks ago in a rare memo as Temu parent PDD closes in on China’s online retail leader in market valuation, with PDD’s latest quarterly earnings reflecting its strong growth momentum. [LatePost, in Chinese]

On Dec. 8, Xiaomi collaborated with HoYoverse’s hit game Genshin Impact to introduce an exclusive version of the Smart Band 8 Pro in China. This flagship wearable is uniquely packaged, complete with hidden surprises dedicated to one of the game’s favorite characters, Tartaglia. The package includes a character poster, themed stickers, a special strap, and a wireless charger designed to match the character. The user interface (UI) is also designed to reflect the theme of Genshin Impact. Despite these enhancements, the specifications remain consistent with the regular Xiaomi Band 8 Pro. Priced at RMB 549 ($77), the limited edition is slightly more expensive than the standard Smart Band 8 Pro, which starts at RMB 355 ($50) in China. [Zaker, in Chinese]

TikTok parent ByteDance intends to sell 4.389 million shares in Zhangyue, the owner of the digital reading platform iReader, marking its third stock setback since becoming the company’s third-largest shareholder in 2020. Currently, ByteDance holds a 7.49% stake in Zhangyue. This recent divestment follows a nearly 15% surge in Zhangyue’s shares over the past two months, attributed to the popularity of short web dramas before China’s broadcasting regulator tightened content control in mid-November. The share reduction, to be carried out by a wholly-owned subsidiary of ByteDance, will not exceed 1% of the total share capital of iReader’s owner, as per Zhangyue’s regulatory filings on Wednesday. ByteDance initially acquired an 11% stake in the e-book reader shares through a RMB 1.1 billion investment three years ago, aiming to diversify growth into new areas. [Zhangyue, in Chinese]

Chinese electric vehicle battery maker Gotion High Tech said on Thursday that the first locally-made battery pack has rolled off assembly lines in the facility it partners on with state-owned energy giant PTT in Thailand’s Rayong province. The news marks the beginning of local manufacturing in Southeast Asia’s second biggest economy for the Volkswagen-backed battery supplier, which is set to begin supplying the product to Chinese EV startup Hozon Auto in the first quarter of 2024. The 38 kilowatt-hour (kWh), relatively inexpensive lithium iron phosphate (LFP) battery provides an EV with a driving range of around 400 kilometers (249 miles) and the joint plant has an initial capacity for making two gigawatt-hours (GWh) worth of batteries each year. Larger rival CATL also said in June that it will license its technologies to PTT-affiliated Arun Plus to establish a battery production base in the country. EVE, whose clients include BMW and Mercedes-Benz, in July announced plans to jointly build a six GWh battery plant with local renewable energy startup Energy Absolute. [Gotion announcement, in Chinese]

Kuaishou, the operator of its eponymous short video platform, is currently undergoing its biggest organizational overhaul in a year, encompassing core business lines such as the main site, e-commerce, and commercialization sectors, as reported by the local outlet Jiemian on Monday. As part of this restructuring, the former local consumption department is poised to be renamed to reflect a shift in focus toward the real estate industry. This unit will now oversee real estate-related business, given Kuaishou’s robust performance in property promotions through livestreaming and short videos. In the last quarter alone, the company successfully sold RMB 14 billion in property, surpassing its full-year 2022 sales by RMB 4 billion, despite challenges posed by China’s real estate crisis. Additionally, the company plans to establish a new segment dedicated to the creator and content ecosystem, aiming to further support content generation within a profit-driven strategy, according to the report. [Jiemian, in Chinese]

On December 14, China’s Zeekr will unveil the first battery pack custom-designed by the electric vehicle maker in a ceremony emphasizing its scale, vertical integration, and expertise. The event will take place at a production base in the eastern Chinese city of Quzhou. While Zeekr provided no further details on the Twitter-like platform Weibo, sources suggest that these batteries will initially be integrated into Zeekr’s first premium sedan, the 007, priced from RMB 224,900 ($31,059) and set for delivery next month, as reported by local media outlet Jiemian on Thursday. Geely’s subsidiary has formed an alliance with CATL, and its 009 multi-purpose vehicle becomes the first model powered by the battery giant’s Qilin battery, offering a driving range of 1,000 kilometers (621 miles) on a single charge. Notably, rival NIO has been developing its own batteries since last year, planning to introduce them with the first model of its upcoming mainstream sub-brand, Alps, in 2024. [Zeekr announcement, Jiemian, in Chinese]

Tencent’s multiplayer online battle arena game, Honor of Kings, claimed the top spot in global mobile game revenue for November, reaching approximately $100.8 million, as reported by mobile market intelligence firm AppMagic. Meanwhile, Tencent’s battle royale game, PUBG Mobile, secured the fourth position with a monthly revenue of around $80 million. Genshin Impact, an action role-playing game by HoYoverse, climbed to the third spot in November, generating a global revenue of $96.4 million—a $25 million increase from October. Conversely, HoYoverse’s Honkai: Star Rail experienced a revenue decline of over 50% compared to the previous month, only reaching $32.4 million in November.[nadianshi, in Chinese]

Chinese audio-sharing platform Ximalaya has said a report on its plan to lay off 30% of its workforce, with product and operation employees hit the hardest, is “baseless and completely untrue,” according to local media outlet Jiemian. Ximalaya claimed the company is currently undergoing regular organizational restructuring and recruitment efforts are also underway. The industry-leading firm is facing profitability challenges after 11 years of operation, with several executives quitting in the past six months including the senior vice president and chief content officer, the report said. Ximalaya recorded its first quarterly profit in the final quarter of last year, generating tens of millions of yuan, which came after an earlier prediction from the CEO in August anticipating profitability in the fourth quarter and a full-year profit in 2023. [Jiemian, in Chinese]

On Wednesday, China’s national television broadcaster, CCTV, unveiled its mascot for the 2024 Spring Festival Gala, Long Chenchen. Chenchen signifies a new beginning, while Long translates to dragon in Chinese, aligning with the Year of the Dragon in Chinese astrology for 2024. The mascot’s design draws inspiration from antique collections across various Chinese cities, featuring a turquoise dragon-shaped artifact from Luoyang, a gilded walking dragon from Xi’an Museum, and a five-clawed golden dragon from the Beijing Palace Museum. The red-skinned dragon’s back is adorned with a long cyan-colored pattern, symbolizing spring, hope, and growth in accordance with ancient Chinese astronomy. [IThome, in Chinese]

ByteDance plans to offer investors a $5 billion share buyback at $160 per share, matching the price of its latest stock repurchase option for employees in November, as reported by the South China Morning Post. This program values the TikTok owner at $268 billion, marking a 33% decrease from its peak valuation of $400 billion two years ago. Despite this, ByteDance remains China’s most highly valued unlisted tech company. The company abandoned its plans for a public listing in Hong Kong or New York following the Chinese government’s crackdown on the tech sector in mid-2020 which led Ant Group to suspend its IPO process. [SCMP]

Xiaomi is actively preparing showrooms for vehicle sales, currently renovating and expanding retail stores in Beijing, Shanghai, and other cities. The first batch of display models is expected to arrive in the first quarter of 2024. Financial media outlet Jiemian reported on Tuesday, citing employees from a Xiaomi store in Shanghai, that the first floor of the two-story shop will be dedicated to Xiaomi’s electric vehicles after renovation work is complete. This news comes after images of Xiaomi’s first EV model were revealed on the website of China’s industry ministry last month, showcasing a five-seater sedan with a sporty design similar to the Porsche Taycan. The Chinese smartphone maker aims to commence sales in the first half of next year, entering the intensely competitive EV market in China, where rivals like Huawei have been selling EVs through their retail network. [Jiemian, in Chinese]

TikTok is reportedly nearing a deal that will help the short video app restart e-commerce operations in Indonesia, its second-largest market, nearly three months after it suspended its shopping feature in fear of being banned by the Indonesian government. A Bloomberg report said TikTok is in talks with local company GoTo to invest in its e-commerce sector Tokopedia in a deal that is expected to close as early as this month. The government of the Southeast Asian country has said apps such as TikTok hurt its bricks-and-mortar shopping businesses by encouraging people to buy online. Before the ban could be imposed, TikTok’s chief executive officer Shou Zi Chew pledged to invest billions of dollars in the country over the next few years at a public event in Jakarta. [Bloomberg]

Chinese tea chain Heytea removed a tea latte from its menu, available for less than a week, after allegations that the co-branded beverage violated Religious Affairs Regulations. Multiple local media reports indicate that Heytea introduced the controversial drink at RMB 19 ($2.7) in collaboration with Jingdezhen China Ceramics Museum on Nov. 28. The promotion featured a specially designed matching cup and fridge sticker showcasing the three Lohan porcelain. The National Religious Affairs of Shenzhen Bureau, Heytea’s headquarters, conducted a talk with the tea chain on Dec. 1. Subsequently, it acknowledged Heytea’s cooperation and stated that the company had admitted to its mistake “in a very good manner.” Although the religious regulation body did not specify the exact violation, the public widely believed that Heytea was accused of engaging in prohibited commercial propaganda under the guise of religion. [Jiemian, in Chinese]

NIO on Tuesday reported an 11% margin on vehicle sales in the third quarter to Sept. 30, up from 6.2% three months earlier and driving its total gross margin to 8% from a mere 1% over the same period. Founder and chief executive William Li attributed the improvement partly to the company’s strategy of stable pricing, when rivals such as BMW and Mercedes-Benz responded to competition by cutting prices on some of their models by as much as 30%. Revenue for the third quarter was nearly RMB 19.1 billion ($2.6 billion) compared to predictions of RMB 19.3 billion, with adjusted net losses falling 27.4% quarter-on-quarter to RMB 4.6 billion. The electric vehicle maker also announced plans to acquire two manufacturing plants it has been operating with partner JAC Group in Hefei for RMB 3.2 billion, following news that it secured a production license from the Chinese government over the weekend. Li said he expected NIO’s production costs to fall 10% if the company began making its own EVs instead of continuing to rely on contract manufacturing. [NIO financial report]

Honda’s joint venture with China’s state-owned GAC Group made around 900 contract workers, or 7% of its workforce, redundant in late November, becoming the latest Japanese automaker to downsize its operations due to competition with domestic automakers. GAC-Honda promised to compensate workers removed from its assembly plants in the southern city of Guangzhou in keeping with local regulations, after the JV produced roughly 520,000 cars during the first 10 months of this year, 20% fewer than a year ago. Japanese car majors, mainly those selling gasoline and hybrid cars, have faced significant setbacks in China as consumers opt for Chinese-branded battery cars instead. Toyota cut around 1,000 workers at its joint venture with GAC in July, while Mitsubishi announced a retreat from car production in China in late October. [Nikkei]

China’s four major panel manufacturers – BOE, TCL CSOT, Huike Electronics, and Xianyang Rainbow Electronic Accessories – have recently notified suppliers of their plans to further reduce production by 20% to stabilize the declining price of TV panels. The manufacturers hope that they can keep prices above their profitability level by significantly reducing the supply, Taiwanese media outlet Economic Daily News reported. China is the world’s largest producer of TFT-LCD (thin-film-transistor liquid crystal display) panels, with a global market share of over 70%, according to industry analysis cited by Icsmart. The recent significant reduction in production by major companies such as Samsung, SK Hynix, and Micron in the memory chip market has led to an increase in chip prices, driving the industry into a positive cycle. The four major panel manufacturers in China are hoping that their production cuts can help replicate the chip industry recovery in the panels sector. [Icsmart, in Chinese]

NIO has received approval to begin manufacturing at its own electric vehicle assembly plant in the eastern Chinese city of Hefei, a signal that the company is on track to end the contract it has had with carmaker JAC Motors since its inception. NIO Technology (Anhui) Co., Ltd, a wholly-owned subsidiary that operates NIO’s second joint plant with JAC in the Xinqiao Science and Technology Innovation Demonstration Zone, is recorded as a vehicle manufacturing enterprise on the website of China’s Ministry of Industry and Information Technology (MIIT). The news comes after speculation that the nine-year-old EV maker has been mulling a bid for two production bases put on sale by partner JAC on Oct. 20, given Beijing’s tightening control over the release of manufacturing licenses for EVs in recent years. NIO has been delivering EVs produced with JAC since mid-2018 under an outsourcing agreement. [MIIT information, TechNode reporting, in Chinese]

Chinese electronics manufacturers Foxconn and Pegatron have currently halted production of iPhones at their factories in southern India near Chennai due to heavy rains, as reported by Reuters on Monday. The region, a key electronics and manufacturing hub, experienced heavy rains and floodwaters as hurricane Cyclone Michaung moved towards the neighboring state of Andhra Pradesh. Foxconn, which employs around 35,000 people at its Tamil Nadu iPhone facility, is yet to decide on resuming production on Tuesday. Pegatron faces its second factory shutdown in recent months, having temporarily stopped iPhone assembly after a September fire. Foxconn’s rapid expansion in India aligns with Apple’s strategy to diversify production beyond China. In the third quarter, Apple achieved its highest quarterly shipments from India, surpassing 2.5 million units, according to market analytics firm Counterpoint. [Reuters]

Luckin Coffee lost a lawsuit alleging trademark infringement in Thailand on Dec. 1, according to multiple Thai media reports, after the Chinese coffee chain sued local company 50R Group over its registration of Luckin’s trademark in the southeast Asia country and opened a number of stores over the past two years. Luckin Coffee issued a statement a year ago emphasizing it has not yet entered the Thai market, adding that counterfeit stores have caused “serious damage” to its brand. Singapore is Luckin’s first destination outside of China, with the company running 18 offline outlets since opening its first store there this March. Luckin’s logo features a deer looking to the right with a blue background color; in the Thai version produced by 50R, the only difference is that the deer gazes to the left. [Southern Metropolis Daily, in Chinese]