CIW News 21 Feb

Author

Elaine Wong
February 22, 2024

CIW Weekly, is now CIW News, an email newsletter on China digital and tech trends.

Join us as we navigate through the bustling digital streets of China's internet economy, uncovering insights and strategies that are setting the pace for the global digital future. Let’s dive in…

A Chinese research team successfully completed the first clinical implantation trial of the wireless, minimally invasive BCI device, embedding two coin-sized processors into the skull of a patient with complete cervical spinal cord injury caused by a car accident. This 54-year-old male patient had been living with quadriplegia prior to the procedure.

After three months of home rehabilitation training, the patient demonstrated the ability to autonomously drink water using a pneumatic glove driven by brain activity, achieving a grasp accuracy rate of over 90%.

Both the ASIA clinical score and sensory evoked potentials showed improvements, indicating a positive impact on the patient’s spinal cord injury.

In 2023, China's import e-commerce market has seen transactions soar to 551.77 billion yuan, a climb from 462.84 billion yuan in 2018, highlighted by a 10.4% growth peak in 2023, according to data from Analysys.

This burgeoning market is led by Tmall Global with a formidable 37.6% share, followed by other key platforms contributing to the market's vitality:

  • JD Global: 18.7%

  • Douyin Global: 12.3%

  • Pinduoduo Global: 5.9%

  • Vipshop: 4.1%

  • Kuaishou Global: 2.1%

China witnessed a remarkable surge in tourism activities, with domestic travels reaching 474 million, a 34.3% increase from the previous year and a 19.0% rise compared to the same period in 2019, according to data from China Ministry of Culture and Tourism.

This period saw domestic tourists spending a staggering 632.687 billion yuan, marking a 47.3% year-on-year increase and a 7.7% growth from 2019 levels.

On average, each traveler expended approximately 1,335 yuan, underscoring the sector’s robust recovery and the growing enthusiasm for travel among the Chinese populace.

In 2023, China’s smartphone market underwent significant changes, with Apple capturing a leading 17.3% market share despite a 5.0% dip in overall shipments to 271.3 million units, the lowest in a decade, as per IDC. This contraction mirrors cautious consumer spending amidst a slow economic recovery.

In a notable development, IDC’s data also highlights the explosive growth of China’s foldable smartphone market, with shipments reaching approximately 2.77 million units in Q4 2023, a staggering 149.6% year-over-year increase.

IDC forecasts China’s GenAI-related IT spending to soar to $9.6 billion by 2027, understanding China’s distinct approach becomes crucial for tech vendors aiming to penetrate this lucrative market.

A significant aspect of China’s GenAI differentiation lies in the support for local dialects and the customization of AI applications. Most GenAI projects are tailored to meet specific industry needs, reflecting a deep understanding of the local market nuances.

For the top 500 companies, over 30% of core IT spending will be directed towards AI initiatives by 2026, marking a significant pivot towards innovation-driven growth.

BRIEF BLASTS

China’s C919 jetliner showcased at Singapore Airshow. Chinese state-run aerospace firm COMAC has touted the C919 as a challenger to the A320 and the 737 MAX, manufactured, respectively, by long-standing industry leaders Airbus and Boeing.

China's gaming industry faced significant turmoil due to proposed tighter curbs, resulting in an $80 billion market sell-off. Analysts anticipate revised regulations with clearer guidelines to balance industry growth and regulatory objectives. Chinese game developers are exploring overseas expansion amid regulatory uncertainty, potentially reshaping the global gaming landscape.

📱 Chinese smartphone vendors are in a tech arms race, intensifying AI integration. Oppo foresees a significant transformation in the smartphone industry with the advent of AI-driven phones. Meizu is shifting focus entirely to AI-enabled smartphones, abandoning traditional projects. Industry projections anticipate a surge in shipments of GenAI smartphones, reaching 100 million units in 2024.

China Mobile launches the world’s first 6G satellite. In Asia, China leads the development of 6G and aims to start commercializing the technology by 2030. It expects to establish 6G standards by 2025. China’s 6G efforts are driven by its ambition to upgrade its manufacturing base, promote a more technologically advanced economy, and enhance its global competitiveness.

💰 Chinese tech companies distribute millions of dollars in red packets during Lunar New Year. Red packet giving has transitioned from physical to digital, facilitated by apps like Alipay and WeChat. Mechanisms like randomization and variable rewards increase user engagement with red packet promotions.

  • Tech companies have complex requirements for users to earn red packets, such as completing various tasks on platforms like Douyin.

  • Red packet promotions showcase the sophistication of gamification in China's mobile internet sector.

  • AI-generated artwork is disrupting the industry of designing red packets, offering both challenges and opportunities for artists.