Chinese tech giant NetEase Inc. announced a spin-off of Cloud Village, its mobile music streaming service subsidiary, in late May. With a cult-like community that boasts strong user engagement and its unique Music Talent Initiative, Cloud Village stands out among digital music platforms. The company’s IPO proposal comes amid a crackdown on Tencent, the champion of China’s music streaming market, which offers a potential inroad to Cloud Village’s future growth.
Category: China Insight Articles
China is both the world’s largest consumer of seafood and largest producer of farmed fish. As incomes rise and consumer demand for seafood grows, overexploitation in the fishing industry is on track to become a major global issue. In this article, we explore how China’s aquaculture industry can adapt to ensure a high value yet environmentally sustainable end product.
China’s biopharmaceuticals is an often overlooked yet quickly growing industry. In recent years, various regulatory reforms have transformed the industry, nurturing it into a global competitor. Many foreign investors are interested in taking advantage of the local industry’s streamlined product registration process and robust development incentives. However, there are still risks that investors should remain cognizant of when planning their entrance strategy into the Chinese biopharmaceutical market.
China has a love-hate relationship with crypto. It loves the technology but hates the illicit activity. While blockchain will play a vital role as a strategic technology highlighted in national development goals, its ties to cryptocurrency challenge industry development. This has led to harsher regulation of the cryptocurrency space in the hopes that, by separating cryptocurrency and blockchain technology, policymakers can hasten the maturity of the blockchain industry without fear of the social or financial instability associated with crypto.
With over 682 million mobile gamers, the Chinese mobile gaming market is one of the world’s largest. Together with Todd Kuhns at AppInChina, we explore the tips and tricks by which game developers can break into the lucrative Chinese mobile gaming industry.
Key industries such as construction and manufacturing have been pinpointed as weak links in the future Chinese economy. With an imminent aging population crisis on the horizon, Beijing has unveiled a new three-child policy that supersedes the current two-child policy. The question remains, ‘can the three-child policy really fix this issue or are policymakers too little too late?’
Central Bank Digital Currencies (“CBDCs”) could well be one of the most profound developments of the 21st century. This article takes a look at the impact, motivations, and policy choices available to Central Banks and contrasts them with how China’s PBOC is proceeding.
From the introduction of a sweeping national security law to a major overhaul of the city’s electoral system, Beijing’s hardline approach against Hong Kong’s democratic underbelly has largely been driven by national economic interests. Foreign companies will find that they are still welcome in the city as long as they comply with the new laws of the land.
Semiconductor chips are at the crux of the US-China technology competition, and export controls from the ongoing trade war have impeded China’s semiconductor ambitions. Among other measures, China has been establishing integrated circuit schools, microelectronic colleges, and related programs to train qualified candidates for the semiconductor industry, all of which are backed by national domestic policy efforts. However, the efficacy of these initiatives to meaningfully contribute to China’s long-term self-sufficiency efforts is yet to be proven.
It’s no more the Great Leap Forward, but instead the “Robotic Leap Forward.” Automation at the industrial level is now expanding to the consumer level in China, and Beijing is looking to use investment in customer service robots as part of its push to market the nation as a global leader in technology and innovation.
Easy access to credit, a key pillar of China’s recovery, has helped lift the economy from the pits of the pandemic; however, cracks are beginning to show. Policymakers are now shifting their gaze towards systemic issues that could hinder the economy’s long-term recovery – and an unprecedented domestic credit boom is at the top of the list. Yet, as new monetary policy takes hold, many wonder if Beijing has introduced the very economic instability that it sought to avoid.
Both Starbucks and Luckin’s market strategies have taken China by storm. It can perhaps be most aptly said that Starbucks preferred to focus on cultural values while Luckin capitalized on societal trends. Regardless, both chains have defined their niche within the Chinese consumer lifestyle and are evidence that, so long as Chinese market strategies are culturally aware and data-driven, there is more than one road to success in the Chinese market.
While China may be the world’s largest rare earths producer, it is also the world’s largest importer. As the world’s third largest rare earths producing country, Myanmar holds unintended sway over the health of China’s economy. Yet, Myanmar’s political instability has disrupted vital rare earths supply chains and introduced doubts over both the trade relationship between the two nations, and the role of rare earths in the global economy at large.
The US-China trade war, combined with stringent sanctions restricting Beijing’s access to a majority of the chip market, has impaired China’s semiconductor aspirations. As a result, Chinese companies have employed various means to poach top semiconductor talent from Taiwan in order to achieve the technological self-sufficiency they seek. Experienced and skilled Taiwanese semiconductor, or integrated circuit (IC) design engineers, could be the key to Chinese chip dominance. However, it could also lead to a significant talent deficit in Taiwan’s semiconductor industry.
A global RMB is a strategic long-term policy goal for China, and a deep offshore market is a crucial prerequisite. As a key offshore RMB hub, Hong Kong will have to embrace supportive policy and build financial market infrastructure to bolster the RMB’s internationalization. This article takes a look at the potential levers available to both Hong Kong and Mainland authorities to advance this agenda.