CIW News 18 Apr

AI Experts: China vs. USA

Author

Elaine Wong
April 18, 2024

CIW News is a weekly email newsletter on China tech trends.

As of December 2023, China’s internet user base reached 1.092 billion, marking an increase of 24.8 million from December 2022, according to data from CNNIC released in March 2024.

The internet penetration rate was 77.5%, up by 1.9 percentage points. Of these, 1.091 billion accessed the internet via mobile phones, accounting for 99.9% of internet users. Rural internet users constituted 29.8% of the total, amounting to 326 million, while urban users made up 70.2%, totaling 766 million.

  • 📺 Video streaming users: 1.067 billion (up by 36.13 million, 97.7%)

  • 📱 Short video users: 1.053 billion (up by 41.45 million, 96.4%)

  • 💬 Instant messaging users: 1.060 billion (up by 21.55 million, 97.0%)

  • 🏛️ Online government services users: 973 million (up by 47.01 million, 89.1%)

  • 💳 Online payment users: 954 million (up by 42.43 million, 87.3%)

  • …

Read the complete overview here (free access).

P.S. CIW Annual and Premium plan subscribers can download the related but much more comprehensive China Digital Landscape report here.

NIO is integrating generative AI technology into its automotive assistant, NOMI, utilizing Microsoft Azure’s OpenAI services.

NOMI now employs a car-specific version of GPT (Generative Pre-trained Transformer) to handle complex queries and provide intuitive, vehicle-specific information. This enables drivers to receive more accurate and relevant responses without diverting their attention from driving, enhancing safety and user experience.

Beyond the basics, NOMI GPT introduces enhanced interactivity through a new FAQ feature that educates users about NOMI’s capabilities and preferences, personalizing the user experience further.

In 2023, China witnessed significant advancements across various sectors of its digital economy, highlighted by remarkable growth in online payments, shopping, delivery services, and travel booking, driven by technological innovations and robust policy support.

The online payment user base reached 954 million, maintaining a growth trend for ten consecutive years. In the first three quarters, the number of online payment transactions reached 110.77 billion, with a transaction volume of 27.28 trillion yuan, representing year-on-year increases of 15.7% and 9.7%, respectively…

By December 2023, China’s online shopping user base reached 915 million people, an increase of 69.67 million from December 2022, accounting for 83.8% of netizens…

In 2023, internet platform companies in China accelerated their investment in the online food delivery sector, expanding their operational areas in depth and continuously driving the life service industry towards higher quality and diversification.

China’s culture and tourism policies continued to exert a strong influence, driving rapid growth in the performance of online travel booking enterprises and achieving significant industry development.

With its subsidiary platform TEMU, the company aimed to replicate its success by leveraging its aggressive market penetration tactics in a region characterized by vibrant economic growth and an increasing shift towards digital services.

The expansion strategy began with the launch of TEMU in the Philippines and Malaysia, chosen for their significant Chinese diaspora and promising economic indicators, suggesting a readiness for enhanced online retail activities. These markets, with their robust economic growth and a population increasingly inclined towards digital consumption, seemed ideal for Pinduoduo’s low-cost, high-volume business model.

However, the expected easy victories did not materialize. Despite a successful pilot in Japan and Korea, the Southeast Asian venture faced unexpected setbacks right from the start.

The initial excitement waned as TEMU struggled to gain significant traction or disrupt the well-entrenched local competitors such as Shopee and Lazada. These platforms, with deep roots and tailored strategies, dominated the e-commerce landscape, leaving little room for a new foreign entrant to make a substantial impact…

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BRIEF BLASTS

💼 Eric Schmidt, former Google CEO, warned against China's AI advancements via the NSCAI.

  • 📧 Newly disclosed emails reveal Schmidt's pursuit of personal connections with China's AI industry, raising concerns about conflicts of interest.

  • 💰 Tax filings show Schmidt's nonprofit foundation invested in a fund feeding into a private equity firm that backs Chinese tech companies, including AI firms.

  • 🤝 Despite warnings about China's AI agenda, Schmidt sought potential engagements in China's AI sector.

💳 Tencent enhances digital payment services for visitors to China. Measures streamline registration for WeChat accounts and linking international cards to Weixin Pay. Overseas users can register with overseas mobile numbers and link international cards easily. Alipay also introduced a feature allowing foreign tourists to link their international bank cards to the app, with the U.S., Japan, and Thailand being top source countries for users.

💬 Baidu's Ernie Bot, a competitor to ChatGPT, now boasts over 200 million users, doubling its user base since December. The chatbot's API is being utilized 200 million times daily, indicating high user engagement.

📱 Huawei announced its new Pura 70 series smartphones, previously anticipated as the P70 series.

💡 BYD launches next-generation energy storage system MC Cube-T. MC Cube-T has a capacity of 6.432 MWh, surpassing CATL's Tianheng system. BYD aims to capitalize on opportunities in the growing energy storage market.

💰 ByteDance's profit surged by 60% in 2023, reaching over $40 billion, boosted by TikTok's global popularity. ByteDance outpaced its rival Tencent in revenue and profit for the first time.

💻 Huawei unveiled the MateBook X Pro laptop, featuring an Intel processor and Huawei-developed software. Huawei's return to the premium consumer market includes the release of high-end products like the Mate 60 Pro smartphone and AI chips.