CIW News 7 Mar

Author

Elaine Wong
March 08, 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…

Alibaba’s AI team initiated the “Hui Wa” project in January, entering the AI e-commerce domain. “Hui Wa” aims to revolutionize marketing efficiency for Taobao and Tmall merchants by enhancing content creation, including AI-generated marketing copy and the training of exclusive AI models for product promotion.

Baidu App’s MAUs reached 667 million in December 2023, a 3% increase year over year. Managed Page contributed to 51% of Baidu Core’s online marketing revenue in Q4.

  • AI Cloud Expansion: The PaddlePaddle developer community grew to 10.7 million, serving 235,000 businesses and creating 860,000 models by the end of 2023.

  • Autonomous Rides: Apollo Go provided approximately 839K rides in Q4 2023, a 49% increase year over year. Driverless orders in Wuhan reached 45%, up from 40% in Q3 2023.

In 2023, China’s Bluetooth headset market witnessed a notable rebound, with sales volumes reaching approximately 85.52 million units, marking a 7.5% increase year-over-year, according to data from IDC.

The true wireless market in 2023 exhibited significant trends including a decrease in average prices and an increase in the popularity of semi-in-ear products.

Average prices fell to 365 RMB (pre-tax), a drop of 11.2%, primarily due to technological maturity and cost reduction.

Significant growth was also seen in Gross Merchandise Value (GMV), with a 21.9% increase in the fourth quarter to RMB66.4 billion and an 18.7% rise for the year, reaching RMB208.0 billion.

The company’s gross profit followed suit, climbing by 19.3% in the last quarter to RMB8.2 billion (US$1.2 billion) and by 19.0% annually to RMB25.7 billion (US$3.6 billion).

Active customer numbers and total orders also saw upward trends, with the former increasing by 3.9% year-over-year to 87.4 million and the latter by 9.8% to 812.3 million.

JD Pay has introduced this new model under the guidance of the People’s Bank of China and the State Administration of Foreign Exchange.

Leveraging JD’s comprehensive e-commerce ecosystem, the model was developed in collaboration with clearing organizations and financial institutions, focusing on cross-border payment pain points.

It addresses compliance issues, ensuring smooth funds transfer for merchants on China’s cross-border e-commerce export platforms.

Furthermore, it lowers the shopping barriers for overseas consumers, who can now pay with their international bank cards without needing currency conversion or a Chinese bank account.

BRIEF BLASTS

  • Regulation: China's tech crackdown may be softening, with Alibaba receiving a record fine and potential approval for Tencent's video game mergers. (Financial Times)

  • US-China Relations: Continued US restrictions on chip sales to China could hinder its domestic chip industry growth. (Source: Reuters)

  • E-commerce: JD.com announces record sales for the Chinese New Year period, indicating strong consumer demand. (Source: CNBC)

  • AI: Baidu unveils its newest AI chip, claiming significant performance improvements for cloud computing and autonomous vehicles. (Source: South China Morning Post)

  • Electric Vehicles: BYD reports soaring car sales in February, solidifying its position as a leading electric vehicle manufacturer. (Source: Reuters)

  • Fintech: Ant Group, an affiliate of Alibaba, receives regulatory approval for its consumer finance arm, potentially paving the way for its IPO. (Source: The Wall Street Journal)

  • Space: China successfully launches a new research module to its space station, marking another milestone in its space program. (Source: The Guardian)

  • Social Media: WeChat implements stricter content moderation policies, aiming to curb the spread of misinformation and rumors. (Source: BBC)

  • Gaming: Tencent's gaming revenue falls slightly due to regulatory restrictions, but the company remains optimistic about its future prospects. (Source: Nikkei Asia)

  • Cybersecurity: Chinese tech giants pledge to cooperate with the government on cybersecurity, raising concerns about potential data privacy issues. (Source: Reuters)