As the second largest eSports markets in the world, China is cashing in on opportunities within the growing industry. Governmental support has elevated eSports to an officially mandated sport and has fostered career prospects for professional gamers in China. Yet, some of Beijing’s actions may be betraying its true outlook on eSports and undermining its short-term efforts to spur industry growth.
A bubble-prone housing market has been one of the most challenging sectors within the vast array of economic issues that China has faced on its road to economic modernization. One of the key approaches harnessed by policymakers in Beijing has been to limit property loans as a curb for speculative activity; however, questions remain as to the long-term feasibility of this solution to China’s property value crisis.
As the early epicenter of the pandemic, 2020 brought Wuhan countless challenges. One year later, the city is cautiously optimistic about its recovery. Despite COVID’s lingering impression on local consumer habits—particularly in the service industry—Wuhan’s slow but steady re-emergence as the tremendous industrial hub it once was serves as an excellent model for cities across the globe.
China’s hottest tech trend in 2020 was collective online grocery shopping, also known as “community group buying.” This contact-free model for digital grocery retail took off during the pandemic as a convenient way to procure daily necessities in lockdown. Doubling in value over the course of the year, community group buying has all of China’s e-commerce giants, including tech companies outside the e-commerce space, aggressively pursuing a share of the pie.
Despite its history of strict regulation against the industry, China’s gaming market is flourishing. Chinese MMOs and RPGs are topping lists around the globe while high-quality cross-platform releases, along with creative marketing through films, eSport competitions, and livestreaming, have set the tone for China’s growing gaming market for years to come at home.
To achieve its goal of carbon neutrality by 2060, China needs to ditch coal-fired electric power plants for renewable alternatives. However, doing so will require dismantling an antiquated system of incentives that are in place for local officials and power producers. Whether Beijing can summon the political will to overcome powerful vested interests opposed to these changes will be an important indicator of China’s capacity for meaningful reform.
Navigating the Chinese market had been challenging for international luxury fashion brands even before the pandemic, but shifting consumer trends in the world’s largest luxury goods market now threatens the bottom line for major brands worldwide. To remain competitive, luxury brands must identify the challenges within the market and restructure their China strategies around the culturally-charged consumer market.
China’s rapid economic development and rising household incomes have enabled a broader consumer base to invest in a healthy lifestyle by means of vitamins and dietary supplements. While domestic brands compete via localized advertisements and low-price leadership, foreign brands still reign king in terms of luxury, quality, and prestige.
Over the last decade, Beijing has spent billions of dollars developing AI technologies to become a global leader in autonomous vehicles. If domestic tech giants can lower the marginal cost of AVs, offer a safe and secure form of autonomous transportation, and secure full-scale adoption within the world’s largest consumer market, China will revolutionize the automotive industry and earn trillions in revenues.
China built its economic engine on the back of its strong manufacturing capabilities. However, 2020 has presented unique challenges for its producers as the nation contends with global trade tensions amid the pandemic fallout. While China’s manufacturing industry still may have a bright future ahead, Beijing and manufacturers will need to navigate the pitfalls on their road to recovery.
China is leveraging its global leadership in green energy development to engage OBOR nations in overseas green growth initiatives. However, in the shadows of China’s green campaign exists a more calculated game to secure its own economic interests through the not-so-green methods of shrouded fossil fuel infrastructure investment and debt entrapment.
Internationally, McDonald’s has long been dominant, but in China, KFC reigns king. KFC has twice as many outlets, with experts having long explained KFC’s dominance through better localization efforts. While this argument holds water, the competitive relationship between the world’s largest fast food chains has also bolstered their mutual success in one of largest and most complex markets in the world.
AI technology dominance is playing a larger role in China’s global ambitions. Now, Beijing and tech players alike are seeking to push the industry to the next level through AI Open Source Software – a framework that greatly influences innovation, shapes market norms, and cultivates healthy competition – making it a core component of China’s long-term AI strategy.
China’s cloud computing market, while the second largest in the world, remains a fraction of the size of its US competitor. As Beijing continues to prioritize investment in this sector, China’s tech giants will continue to propel the quickly growing domestic industry outwards into the global stratosphere.
The ‘Era of Live Streaming E-Commerce’ first blew up in 2019, creating a new industry at the intersection of e-commerce and live streaming. The pandemic has proven to be a major opportunity for this industry, both in terms of attracting new potential consumers and capturing shifting consumption habits. But one question stands: ‘Will it last?’