Chindia Alert: You’ll be Living in their World Very Soon
aims to alert you to the threats and opportunities that China and India present. China and India require serious attention; case of ‘hidden dragon and crouching tiger’.
Without this attention, governments, businesses and, indeed, individuals may find themselves at a great disadvantage sooner rather than later.
The POSTs (front webpages) are mainly 'cuttings' from reliable sources, updated continuously.
The PAGEs (see Tabs, above) attempt to make the information more meaningful by putting some structure to the information we have researched and assembled since 2006.
Embassy in France removes ‘false image’ on Twitter in latest online controversy amid accusations of spreading disinformation
After months of aggressive anti-US posts by Chinese diplomats Beijing is cracking down on ‘smear campaigns’ at home
Beijing’s ‘Wolf Warrior’ diplomacy has coincided with a rise of nationalist content on Chinese social media. Photo: Reuters
Beijing is battling allegations that it is running a disinformation campaign on social media, as robust posts by its diplomats in Western countries promoting nationalist sentiment have escalated into a spat between China and other countries, especially the United States.
In the latest in a series of online controversies, the Chinese embassy in France claimed its official Twitter account had been hacked after it featured a cartoon depicting the US as Death, knocking on a door marked Hong Kong after leaving a trail of blood outside doors marked Iraq, Libya, Syria, Ukraine and Venezuela. The inclusion in the image of a Star of David on the scythe also prompted accusations of anti-Semitism.
Top China diplomats call for ‘Wolf Warrior’ army in foreign relations
25 May 2020
“Someone posted a false image on our official Twitter account by posting a cartoon entitled ‘Who is Next?’. The embassy would like to condemn it and always abides by the principles of truthfulness, objectivity and rationality of information,” it said on Monday.
The rise of China’s aggressive “Wolf Warrior” diplomacy has been regarded by analysts as primarily aimed at building support for the government at home but the latest incident is seen as an attempt by Beijing to take back control of the nationalist narrative it has unleashed.
Florian Schneider, director of the Leiden Asia Centre in the Netherlands, said the removal of the embassy’s tweet reflected a constant concern in Beijing about the range of people – including ordinary citizens – who were involved in spreading nationalistic material online.
“The state insists that its nationalism is ‘rational’, meaning it is meant to inspire domestic unity through patriotism but without impacting national interests or endangering social stability,” he said.
“This makes nationalism a mixed blessing for the authorities … if nationalist stories demonise the US or Japan or some other potential enemy, then any Chinese leader dealing diplomatically with those perceived enemies ends up looking weak.
“Trying to guide nationalist sentiment in ways that further the leadership’s interests is a difficult balancing act and I suspect this is partly the reason why the authorities are currently trying to clamp down on unauthorised, nationalist conspiracy theories.”
Too soon: Chinese advisers tell ‘Wolf Warrior’ diplomats to tone it down
The report came after months of social media posts – including by Chinese diplomats – defending China against accusations it had mishandled the coronavirus pandemic and attacking the US and other perceived enemies.
In March, Chinese foreign ministry spokesman Zhao Lijian promoted a conspiracy theory on Twitter suggesting the virus had originated in the US and was brought to China by the US Army. His comments were later downplayed, with China’s ambassador to the US Cui Tiankai saying questions about the origin of the virus should be answered by scientists.
Schneider said this showed that the state-backed nationalistic propaganda online was at risk of backfiring diplomatically.
“The authorities have to constantly worry that they might lose control of the nationalist narrative they unleashed, especially considering how many people produce content on the internet, how fast ideas spread, and how strongly commercial rationales drive misinformation online,” he said.
Last month, a series of widely shared social media articles about people in different countries “yearning to be part of China” resulted in a diplomatic backlash against Beijing. Kazakhstan’s foreign ministry summoned the Chinese ambassador in April to lodge a formal protest against the article.
Following the incident, the Cyberspace Administration of China, the country’s internet regulator which manages the “firewall” and censors material online, announced a two-month long “internet cleansing” to clear privately owned accounts which engage in “smear campaigns”.
The article had at least 100,000 readers, with 753 people donating money to support the account. According to Xigua Data, a firm that monitors traffic on Chinese social media, the account garnered more than 1.7 million page views for 17 articles in April.
According to a statement from WeChat, the account was closed for fabricating facts, stoking xenophobia and misleading the public.
A journalism professor at the University of Hong Kong said this case differed from the Chinese embassy’s tweet, despite both featuring anti-US sentiment.
Masato Kajimoto, who leads research on news literacy and the misinformation ecosystem, said the closure of the WeChat account seemed to be more about Chinese authorities feeling the need to regulate producers of media content whose motivations were often financial rather than political.
“I would think the government doesn’t like some random misinformation going wild and popular, which affects the overall storylines they would like to push, disseminate and control,” he said.
One way for China to respond to the situation was to fact-check social media and to position itself as a protector facts and defender of the integrity of public information, he said.
“In the age of social media, both fake news and fact-checking are being weaponised by people who try to influence or manipulate the narrative in one way or another,” Kajimoto said.
“Not only China but also many other authoritarian states in Asia are now fact-checking social media. Governments in Singapore, Thailand, Indonesia and other countries all do that.
“Such initiatives benefit them because they can decide what is true and what is not.”
Test in Xiong’an, the new city being built south of Beijing, will focus on everyday goods and services for the first time
American food outlets to be included in the digital currency tests, conducting small transactions with local firms
American chains Starbucks, McDonald’s and Subway were named on the People’s Bank of China’s list of firms that will test the digital currency in small transactions with 19 local businesses. Photo: Bloomberg
China’s central bank has accelerated the testing of its new sovereign digital currency and, for the first time, will include some foreign consumer brands in the programme.
American chains Starbucks, McDonald’s and Subway were named on the People’s Bank of China (PBOC)’s list of firms that will test the digital currency in small transactions with 19 local businesses.
The global names will be joined by local hotels, convenience stores, a stuffed bun shop, a bakery, a bookstore and a gym, according to details revealed at a promotional event in the Xiong’an New Area, a city being built south of Beijing, news portal Sina.com reported.
The inclusion of businesses providing everyday goods and services marks an expansion of the PBOC’s testing. It follows a previous disclosure that last week in Suzhou the digital currency was used to pay half public sector workers’ travel subsidies for May.
Is China a currency manipulator?
Wednesday’s promotional event was organised by the local branch of the National Development and Reform Commission, the powerful planning agency, and attended by representatives of the Big Four state-owned banks and two of the country’s internet giants – Alibaba and Tencent.
China has not released a timetable for launching the digital yuan, but last week’s reports on new testing have fanned speculation that it could be imminent.
The tests were reportedly accelerated after Facebook launched its Libra project in June last year, an attempt to create a global digital currency pegged to a basket of currencies and backed by global commercial giants.
The Libra Association, the consortium managing the project, announced changes last week in an attempt to win regulatory approval and pave the way for an official launch sometime later this year. The consortium said it would create multiple digital units tied to existing currencies such as the US dollar or the euro, rather than a single token based on a basket of currencies.
China’s official digital currency, known as Digital Currency Electronic Payment (DCEP), came into the public spotlight last week when a screenshot of a test version of an app developed by the Agricultural Bank of China circulated online.
The digital currency app has several basic functions, similarly to other Chinese online payment platforms such as Alipay and WeChat Pay – the country’s two most popular online payment tools – allowing users to make and receive payments, and transfer money.
“It’s certain that the DCEP is now in its final testing stage and should be officially launched,” BlockVC, an investment firm, said in a research note.
The PBOC’s digital currency research institute confirmed last Friday that testing was being conducted in four cities: Shenzhen, Suzhou, Xiong’an and Chengdu. In addition, venues for the 2022 Winter Olympics in Beijing and Zhangjiakou will join the testing programme in the future.
What is the Hong Kong Dollar Peg?
The institute, which was inaugurated in 2017, said that the test versions and applications of the currency had not been finalised.
The project testing is based on two principles: the central bank issues the virtual money to commercial banks who then pass it on to consumers, and that is aimed at replacing cash in all transactions.
China is the first major economy to publicly announce plans for a sovereign digital currency, aiming to better control the rapid rise of digital payments worldwide.
The PBOC has, however, cracked down on the trading of other digital currencies and banned banks from accepting cryptocurrencies, which it views as a risk to financial stability.
BEIJING, April 18 (Xinhua) — New media platforms are reshaping China’s documentary industry, ushering in a new era of vigorous development, said Zhang Tongdao, director of the Documentary Center with Beijing Normal University.
There is a rapid growth of new media companies in the documentary market, according to an annual study report of the development of Chinese documentary in 2020, which was released Saturday by the center, the China Intercontinental Communication Center and other institutions.
China’s total investment in documentary making was 5.04 billion yuan (about 710 million U.S. dollars) last year, and the country was blessed with 6.66 billion yuan in total output value, according to the report.
“More and more documentaries are broadcast on the internet, even only on the internet media, which complement those aired on television,” Zhang said.
Some documentaries, including “Flavorful Origins: Chaoshan Cuisine” by Tencent video and the second season of “The Story Of Chuaner” by video-sharing platform Bilibili, gained the brand value in 2019 through exclusive streaming on the platforms.
The report also showed that the documentary production capacity of new media companies reached a new height in 2019.
Last year, Tencent produced 23 documentaries on its own, accounting for about one-third of its total online projects throughout the year. Bilibili produced and launched 16 documentaries, totaling 55.6 hours, while iQiyi, also an online platform, produced or co-produced 15 documentaries, said the report.
The report added that documentary producers and streamers are also foraying into the short video field, varying versions such as shorter or longer in length for different platforms.
Wuhan, where the first cases of the novel coronavirus were detected, is ending a 76-day lockdown
A day before the lockdown was fully lifted, Tencent announces a slew of initiatives focused on helping to revive the digital industry in the city
Passengers leaving Wuhan city are pictured at the Hankou Railway Station in Wuhan city, central China’s Hubei province, on Wednesday morning, April 08, 2020. Photo: SCMP/Simon Song
A day before China lifted a months-long lockdown of Wuhan city, the initial epicentre of the coronavirus pandemic, Chinese internet giant Tencent Holdings pledged to invest in digital government, online education and artificial intelligence (AI) in the city, among other fields.
“During the epidemic, Tencent has been supporting Hubei and Wuhan’s fight against the virus through funds and technology,” the company best known for its gaming business said in a statement posted on Tuesday on WeChat. “In the future, we will also fully support Wuhan’s post-pandemic reconstruction and continue to support the development of Wuhan’s digital industry.”
China’s major tech companies have played a big role in the fight against the coronavirus, and are now playing their part in the economic recovery of Wuhan and other areas that have suffered under extended travel restrictions and business closures.
and Pinduoduo each announced their own initiatives to help revive sales of farm goods from Hubei as the province emerges from its months-long lockdown.
Popular mobile payments app Alipay also created a dedicated section for Wuhan merchants to allow users to buy from merchants in the city, and offered loans to small local merchants in need of financial support, according to an Alipay statement. Alipay is operated by Ant Financial, an affiliate of Alibaba, which owns the South China Morning Post.
How tech has helped China in its public health battle with coronavirus
23 Mar 2020
Wuhan, an industrial powerhouse for the steel, semiconductors and automotive sectors, is emerging from an unprecedented lockdown which began on January 23 and prevented people from moving in and out of the city.
Since restrictions began easing gradually in late March, business activity has shown signs of recovery: Tencent’s mobile payment platform WeChat Pay recorded a 162 per cent increase in offline transactions in a 10-day period from March 25, compared to the same period the previous month, according to a separate statement by Tencent on Wednesday.
Searches for “work resumption certificates” – which businesses need to submit to local authorities to prove their staff can safely restart work – also increased 320 per cent on Baidu, China’s biggest search engine, in the past month, Baidu said in a report on Wednesday.
Tencent declined to provide specific details regarding the size of its latest investment in Wuhan or a timeline for its implementation, but said in the statement that it will involve closer cooperation with city authorities in the areas of digital government, education, smart mobility, AI and cybersecurity to help the city with its digital industries.
Among these initiatives, it will push ahead with a plan to build a headquarters focusing on digital industries in Wuhan, specifically digitalisation for the government and smart city initiatives.
It will also establish a base in Wuhan for its online education initiatives, set up an AI lab and cybersecurity academy and build a school focusing on smart mobility in collaboration with Chinese carmaker Dongfeng Motor Corporation, the company said in the statement.
BEIJING (Reuters) – China’s Tencent Holdings Ltd (0700.HK) said on Thursday the coronavirus drove 8 billion visits to its WeChat platform as users flocked to get “health codes” they need to show authorities in order to travel around the country.
Reporting slightly lower than expected fourth quarter profit on Wednesday, the gaming and social media giant said in a statement it did not expect the epidemic to have any significant impact on its financial position to date.
This is markedly different from many companies around the world which have downgraded earnings forecasts due to the virus.
It reported a 21.58 billion yuan (US$3.07 billion) profit for the three months through December. That compared with the 22.85 billion yuan average of 15 analyst estimates compiled by Refinitiv.
Revenue rose 25% to 105.8 billion yuan, versus the 102.9 billion yuan average estimate of 17 analysts. That marked Tencent’s fastest revenue growth since late 2018.
Tencent’s businesses are mainly online-only, positioning it uniquely against other tech giants such as Alibaba Group Holding Ltd (BABA.N) that focus on e-commerce and whose supply chains have been severely disrupted by the outbreak.
“Mobile games are one of the very few entertainment options during the coronavirus outbreak. Comparing the figures in early 2019, downloads of Tencent games increased by 10.4% year over year in this February, and revenue increased by 11.8%,” said analyst Nan Lu at researcher Sensor Tower.
Overall, downloads of all Tencent apps for this February grew 32.3% month-on-month and 42.9% year-on-year, she said.
VIDEO STREAMING
Tencent’s most popular games include Honour of Kings and Peacekeeper Elite. It also operates social media platform WeChat, a video streaming site and a news portal. Its services experienced a surge in traffic as China’s government urged millions of people to stay at home and away from crowded places, analysts said.
Well before the epidemic began in China in late December, prospects were already starting to look up for the company after an especially difficult 2018, when it endured a lengthy freeze in the regulatory approval of new games that wiped billions of dollars off its market value.
A weak point in the January-March quarter, however, will likely be advertising – which made up nearly 20% of revenue in the third quarter – as companies cut back spending amid concerns over the virus’ economic fallout, analysts said.
Shares in Tencent closed 4.5% lower on Wednesday. Tencent’s shares have fallen 11.1% so far this year as the coronavrius roiled global markets, versus a 21% decline in the Hang Seng index .HIS.
Subsidiary Tencent Music Entertainment Group (TME.N) on Tuesday said it would likely see “much softer” first-quarter revenue growth as the outbreak was impacting licensing and advertising revenue.
On the flip side, analyst Kevin Tam at Core Pacific-Yamaichi Securities in Hong Kong wrote in a research note that Tencent could see margin improvement “as a result of stringent control on marketing expenses and higher profitability from video advertising”.
Alibaba co-founder Jack Ma has sent the first shipment of surgical masks and coronavirus test kits to the US.
The Chinese billionaire tweeted two pictures of the pallets of goods being loaded on to a plane in Shanghai.
Earlier this month he said he would give 500,000 testing kits and one million masks to America.
Mr Ma is also sending consignments of medical supplies to Europe as he called for international cooperation efforts to combat the pandemic.
In his first tweet, Asia’s richest person posted photos of a China Eastern Airlines jet being loaded with boxes of coronavirus test kits and face masks as they were shipped to the US.
It comes after the Jack Ma Foundation and the Alibaba Foundation last week announced that they had prepared 500,000 testing kits and 1 million masks to be sent to America.
They also said that they had already donated supplies to other countries including Japan, South Korea, Italy, Iran and Spain, with two million protective masks pledged for distribution across Europe.
The first consignment of 500,000 masks and other medical supplies such as test kits, which was destined for Italy, arrived in Belgium on Friday.
He joins other high-profile technology executives in pledging support for coronavirus research and disease prevention.
Microsoft co-founder Bill Gates, who is the world’s second-richest person, has announced that the Bill and Melinda Gates Foundation would give $100m to help efforts to stop the spread of the virus.
On Friday Mr Gates announced that he was stepping down from Microsoft’s board to spend more time on philanthropic activities. He said he wanted to focus on global health and development, education and tackling climate change.
Chinese tech giants, including Tencent, ride-hailing company Didi Chuxing, and TikTok owner ByteDance, have all pledged money and resources to fight the coronavirus outbreak.
The enterprise collaboration industry in China is forecast to achieve a compound annual growth rate of 12.4 per cent over five years to reach US$7 billion by 2024
Tencent has been accused of using its market dominance with WeChat to stifle competition. Photo: Reuters
Tencent’s super app WeChat, with a user base of 1.2 billion people, has blocked links from a ByteDance remote work tool as Chinese tech giants fight for dominance in the burgeoning enterprise collaboration market.
The latest move adds another ByteDance app to WeChat’s blacklist, which already includes Douyin, the Chinese version of TikTok, and its sister platform Xigua Video, amid ongoing accusations that Tencent uses its market dominance to stifle competition.
Feishu, the Chinese version of ByteDance’s productivity tool Lark, said Saturday that users could not open any of its links on WeChat, nor could they share name cards to invite colleagues.
Feishu said WeChat did not provide advance notice of the ban, adding that the move has “significantly affected work efficiency and user experience” at a time when many companies in China have moved their office operations online to limit the spread of coronavirus infections.
Instead, Lark users need to copy the link and open it in a browser instead of opening it directly via WeChat.
Tencent launches new social apps as flagships WeChat and QQ show their age
13 Dec 2019
A WeChat representative declined to comment other than to cite the company’s regulations on external links. The rules, introduced in October 2019, said the platform will punish websites or apps that send links to “mislead or entice users to download or redirect to an external app”. Punishment includes blocking their domain name from opening in WeChat.
Xie Xin, a ByteDance vice president overseeing Feishu, said the app does not support sign-ups using a WeChat account nor does it enable the sharing of documents or messages on the Tencent app.
In addition to blocking the ByteDance app, WeChat also suspended two tech-focused media websites, 36Kr and ITHome, from publishing posts on the platform after they reported the Lark case over the weekend. The relevant articles have also been removed from WeChat.
The WeChat representative said it did not force media to delete their articles. Rather, the media in question have violated WeChat’s rules on multiple occasions.
The enterprise collaboration industry in China, which has received a huge boost from the health crisis, is forecast to achieve a compound annual growth rate of 12.4 per cent over five years to reach nearly 49 billion yuan (US$7 billion) by 2024, according to the Qianzhan Industry Research Institute.
Feishu is a small but fast-emerging player in the sector, jumping 40 places from late January to become the 15th most downloaded business iOS app on Monday. However, it still lags far behind Alibaba’s DingTalk and Tencent’s WeChat Work and Tencent Meeting, which ranked as the top three among business iOS apps in China as of Monday, according to App Annie.
Alibaba is the parent company of the South China Morning Post.Tencent has also blocked apps from other Chinese tech giants. Links from Taobao, Alibaba’s online marketplace, and Haokan, a short video app from Baidu, cannot be accessed on WeChat. In contrast, Tencent allows the sharing of links from JD.com and PDD pages, online marketplaces in which it owns a financial stake.
“Having more than 1 billion users, [WeChat] has a monopolistic position in the market,” said Wang Sixin, a professor at the Communication University of China who specialises in media policy and rules. “Under these circumstances, Tencent has to have legitimate reasons to block other apps, otherwise it’s taking advantage of its dominance to force out smaller rivals.”
In April 2019, a Chinese lawyer sued Tencent under the country’s anti-monopoly law, charging that the company’s actions infringed on his rights as a user. In December, the intellectual property court in Beijing heard the case, with Tencent representatives arguing that WeChat did not prevent users from sharing links and using the app on other platforms, Southern Metropolis Daily reported. The court has not yet reached a verdict.
Besides enterprise collaboration, Tencent and ByteDance are coming up against each other in other markets. Last week Tencent began testing a short video function for WeChat, a sector dominated by TikTok and Douyin, while ByteDance plans to
Teams from Shanghai, Guangdong – including experts who helped tackle Sars – arrive in Wuhan to lend their support
Tencent, JD.com, Lenovo among raft of private firms offering financial aid to those battling deadly outbreak
Doctors and nurses from across China are being dispatched to help tackle the coronavirus epidemic in Hubei province. Photo: Xinhua
Chinese authorities and private enterprises are stepping up their support for embattled medical teams in Hubei province as they continue to fight the coronavirus epidemic, while neighbouring governments ramp up their efforts to prevent its further spread.
Hospitals across Wuhan – the city at the centre of the outbreak – have been overwhelmed by the flood of patients and doctors are becoming increasingly frustrated at the lack of support, both in terms of supplies and personnel, they have received.
But national bodies say they are responding to the crisis.
On Saturday, China’s National Health Commission (NHC) said that six medical teams comprising 1,230 staff had been set up and dispatched to help fight the deadly virus in Hubei.
Three medical units from Shanghai, Guangdong and the armed forces had already arrived in the province, it said, though did not make clear if they were in addition to or part of the six teams.
Chen Dechang, a doctor from Ruijin Hospital in Shanghai who is among those sent to Hubei, said it was important there were more medical staff on the scene.
“We can help save more patients in the intensive care unit if we are on the front line,” he said.
Authorities in Shanghai have also sent 81 ECMO (extracorporeal membrane oxygenation) life-support machines to Jinyintan Hospital, which is one of the designated facilities treating patients in Wuhan.
The ECMO technique – which involves removing blood from a person’s body, removing the carbon dioxide and oxygenating red blood cells before pumping them back into the patient – has already been used on one critically ill patient at Wuhan University’s Zhongnan Hospital, according to Shanghai-based news outlet Thepaper.cn.
Though the report did not say how effective the treatment had been.
Medical teams in Wuhan have been under huge pressure since the outbreak began. Photo: Xinhua
The team from Guangdong comprised 42 doctors and 93 nurses, the NHC said. The deployment came after a group of current and former medical staff from Southern Medical University in Guangzhou – who had helped tackle the Sars (severe acute respiratory syndrome) outbreak in 2002-03 – signed a petition saying they were willing to help in Wuhan.
“We are a team of experienced practitioners who fought Sars,” they said in the petition, a copy of which was posted on the social media accounts of Communist Party mouthpiece People’s Daily.
“We cannot back away from our responsibility to help 17 years later as people are facing the outbreak of a new coronavirus. We are willing to be deployed to the front line to make our contributions.”
A team of 135 doctors from Chongqing arrived in Wuhan on Friday evening, the NHC said, without elaborating.
A medical team from Guangdong province prepares to travel to Wuhan. Photo: Xinhua
As well as the wave of medical support, several private companies said they had provided financial support to help fight the epidemic.
According to Chinese media reports, Shanghai Ocean Forest Assets has donated 10 million yuan (US$1.4 million) to the cause, while Shanghai-based asset management firm, Jinglin Assets is coordinating efforts to buy urgently needed medical supplies from South Korea and Japan.
Shenzhen’s Fantasia Holdings said it would donate 6 million yuan and send medical supplies, including surgical masks, to Wuhan, while tech giant Tencent said it would donate 300 million yuan from its charity. E-commerce platform JD.com said it had donated 1 million surgical masks and 60,000 other medical items.
Chinese smartphone manufacturer Xiaomi said on Friday it had sent a first batch of medical equipment – masks and thermometers worth more than 300,000 yuan – to Wuhan, while tech firm Lenovo said on Saturday it would donate all of the IT equipment required by the new specialist treatment centre being built in the city.
Authorities set a target to have the 1,000-bed facility up and running within six days of starting construction.
Aside from the support from the private sector, state lender China Development Bank on Friday issued a 2 billion yuan emergency loan to Wuhan, while a day earlier, China’s finance ministry said it had allocated 1 billion yuan to authorities in Hubei to help tackle the epidemic.
Across the country, authorities have introduced a number of measures to help prevent the further spread of the coronavirus, including the closure of all cinemas in Shanghai.
Wuhan residents stockpile food, medical supplies
25 Jan 2020
Also on Saturday it was reported that Liang Wudong, a doctor at Xinhua Hospital in Wuhan, had become the first medical professional to die after treating people infected with the virus.
Liang, 62, was suspected of having contracted the virus last week and had been transferred to Jinyintan Hospital for treatment. He died at 7am on Saturday, Thepaper.cn reported.
According to official figures, 41 people have been killed by the coronavirus and there have been more than 1,280 confirmed cases. The vast majority are in the Chinese mainland, but there have also been confirmed cases in Hong Kong, Macau, Taiwan and eight other countries, including the United States and Europe.
Tens of millions of people in cities across Hubei are effectively on lockdown after the introduction of travel bans to help control the spread of the virus.
Families appeal to city authorities and toy company for help to recover fees already paid for classes
Four outlets shut their doors in aftermath of contract dispute
Families in Shanghai are appealing to authorities for help to recover money paid for lessons at closed Lego Education Learning Centres. Photo: Weibo
Hundreds of Shanghai parents are appealing to Danish toy company Lego for help after four of its authorised learning centres suddenly closed their doors, leaving families tens of thousands of yuan out of pocket.
Shanghai Jixiao Information Science and Technology, which ran three Lego Education Learning Centres in the city, said in an online statement on Monday that it was left with no choice but to close the centres after Lego Education in China ended its agreement with its Chinese partner, Beijing-based Semia.
The closure of the centres – the Ruihong, Jinqiao and Haiwaitan branches – came just weeks after the Lego centre in Nanxiang shut down.
Semia was authorised by Lego Education to operate learning branches across mainland China and authorisation third parties to do as well, according to Shanghai-based Jfdaily.com.
Rachel Wang, a mother of a six-year-old boy, said that in various online forums about 650 families had reported losing a combined 5.2 million yuan (US$742,000) in prepaid classes at the three stores. Another 130 families whose children were enrolled at the Nanxiang store were seeking 900,000 yuan in refunds, she said.
Wang said the parents had appealed to the Shanghai municipal government to pressure Lego to look at the case.
“We are planning to sue the learning centre, and in the meantime we hope Lego Group can pay attention to this case and help us. Many of the parents chose these centres as we saw on Lego’s website they were listed as among the company’s authorised stores,” she said.
“We are angry and very disappointed with Lego.
“It made a lot of money in China because we trusted it.”
Lego and Tencent will develop games and videos for kids in China
20 Sep 2019
Tao Lina said everything appeared fine when he took his five-year-old daughter to the Haiwaitan centre on Sunday.
“But the next day, we were told that the store had closed. I was so surprised,” Tao said.
“We had never heard of Semia and we were not aware of its existence. We all thought that the learning centres was franchised directly by Lego.”
He said he had paid for 144 classes at the centre and his daughter had attended about 60 of them, each costing 160 yuan. Tao said he hoped his daughter could continue attending the classes – which use Lego products to teach children about subjects such as robotics – but had not been able to contact the centre’s managers.
Shanghai Jixiao said the termination of the Semia-Lego Education agreement had scared off parents, cutting cash flow and forcing it to close the centres.
In its online statement, the company said its troubles started in September, when it received a lawyer’s letter from both Semia and Lego Education.
“It required us to promise not to use the [Lego Education] logo after December 31, 2019 and to stop teaching Lego courses after August of next year,” Shanghai Jixiao said.
On October 11, Lego Education said on WeChat that it had terminated its cooperation with Semia. Most of the 137 Lego learning centres in China would be allowed to use the Lego brand until December 31 and continue teaching Lego courses until July 31 next year.
But after the announcement, many parents sought refunds, causing a cash-flow crisis for the Shanghai company.
Shanghai Jixiao also said that the lawyer’s letter sent in September required all learning centres to sign an agreement absolving Semia of all responsibility.
If it signed the agreement, it would have three months to change the brand and products, which Shanghai Jixiao said was impossible. If it did not sign it, it would have to stop using the Lego brand at once.
Shutting the centres down was the only option after their various efforts, including joint appeals with other mainland learning stores to Lego, visiting Lego headquarters in Denmark and calling Lego’s executives, were unsuccessful, the Shanghai company said.
Chinese teens put to the information age test in global Pisa education study
5 Dec 2019
It offered two mobile phone numbers for parents to contact them but the phones were powered off on Wednesday and Thursday.
Lego did not respond to a request for comment from the South China Morning Post.
But on Wednesday, Lego said it ended the contract with Semia to improve the company’s learning centres, adding that it had no business relations with the closed stores, Thepaper.cn reported.
A manager at Semia’s franchising department identified only as Wei was quoted by Jfdaily.com as saying that the authorisation contract for the three stores owned by Shanghai Jixiao actually ended between October 2018 and February this year.
“They were waiting for us to renew the authorisation contract with Lego, but we failed to reach an agreement with Lego. So these learning centres lost their authorisation,” she was quoted as saying.
Wei said all the authorised stores operated independently.
“Legally speaking, their problems should be solved by themselves,” she said, adding that she could not contact Shanghai Jixiao’s owner either.
There are 19 Lego Education branches across Shanghai, according to Lego Education’s WeChat account.
Market regulation authorities in Pudong and Huangpu districts had started to look at the case, Jfdaily.com reported.
This is the third instalment in a four-part series examining the brewing US-China tech war over the development and deployment of artificial intelligence tech
The US is home to five of the world’s top 10 universities in the AI field, which includes computer vision and machine learning, while China has three
For those Chinese with long-term plans to stay in the US, a major obstacle lies in getting work visas, especially in the current trade war environment. Illustration: Perry Tse
After working in the United States for more than a decade, Zheng Yefeng felt he had hit a glass ceiling. He also saw that the gap in artificial intelligence between China and the US was narrowing.
Last year Zheng, who worked as a researcher at Siemens Healthcare in New Jersey, made a decision that addressed both problems. He accepted an offer to head up the medical research and development team at Tencent’s YouTu artificial intelligence lab in Shenzhen, known as China’s Silicon Valley.
“There was almost no room for promotion if I stayed in the US,” he said, expressing a common dilemma faced by experienced Chinese tech workers in America.
With the US-China trade war leading to tighter scrutiny of Chinese nationals working in the US tech industry, people like Zheng are moving back to China to work in the burgeoning AI sector, especially after Beijing designated AI a national priority. The technology’s varied applications have attracted billions of dollars of venture capital investment, created highly valued start-ups like SenseTime and ByteDance, and sparked a talent war among companies.
That has created an odd symbiotic relationship between the two countries vying for AI supremacy. The US, with its superior higher education system, is the training ground for Chinese AI scientists like Zheng, who obtained a PhD from the University of Maryland after earning bachelor’s and master’s degrees at China’s premier Tsinghua University.
“Many professors in China have great academic ability, but in terms of the number [of top professors], the US is ahead,” said Luo Guojie, who himself accepted an offer from Peking University to become an assistant professor after studying computer science in the US.
Among international students majoring in computer science and maths in US universities, Chinese nationals were the third largest group behind Indians and Nepalese in the 2018-2019 academic year, representing 19.9 per cent, according to the Institute of International Education.
[To build] the best universities is not easy. The university is a free speech space, whereas in China, this is not the case Gunther Marten, a senior official with the European Union delegation to China
The South China Morning Post spoke with several Chinese AI engineers who decided to stay and work in the US after their studies. They only agreed to give their surnames because of the sensitivity of the issues being discussed.
A 25-year-old Beijinger surnamed Lin graduated from one of China’s best engineering schools in the capital before heading to a US university for a master’s degree in computer science in 2017. Like some of his peers, he found the teaching methods in China to be outdated.
“It’s hard to imagine that a final exam of a coding course still asked you to hand write code, instead of running and testing it on a computer,” said Lin, who now works as a software engineer for Google in Silicon Valley.
“Although we still had to take writing tests [in the US], we had many practical opportunities in the lab and could do our own projects,” he added.
A Facebook software engineer surnamed Zhuang had a similar experience at his university in Shanghai.
“Many engineering students [in China] still get old-school textbooks and insufficient laboratory training,” he said. “Engineering practices for AI have been through a fast iteration over the past few decades, which means many Chinese students are not exposed to the most updated knowledge in the field, at least not in the classroom.”
Zhuang also noted out that many classes in China are taught in Chinese, meaning engineering graduates are not fluent in English, the preferred language of the global AI research community.
The US is home to five of the world’s top 10 universities in the AI field, which includes computer vision and machine learning, while China has three. Carnegie Mellon University (CMU) in Pennsylvania ranks No 1 while China’s Tsinghua University is No 2, according to CSrankings, which bases the list on papers published since 2009.
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With its top institutions and an open culture that encourages freedom of speech, including unfettered internet access, the US has become a magnet for the brightest AI students the world over.
In 2018, 62.8 per cent of PhD degrees and 65.4 per cent of master’s degrees in computer science, information science and computer engineering programmes in the US were granted to “non-resident aliens”, according to a survey by the Computing Research Association.
“[To build] the best universities is not easy,” Gunther Marten, a senior official with the European Union delegation to China, said on the sidelines of the World Internet Conference in Wuzhen in October. “The university is a free speech space, whereas in China, this is not the case.”
When these US-educated AI scientists finish studying, most take advantage of a rule allowing them to stay in the country for three years to gain work experience.
Of the foreign nationals taking part in last year’s Conference on Neural Information Processing Systems (NIPS), a major machine learning event for AI professionals, 87 per cent of those whose papers made it to the oral presentation stage went to work for American universities or research institutes after earning their PhD, according to MacroPolo, a think tank under the Paulson Institute.
“China has many great universities and companies, especially in certain subfields of AI such as computer vision, but many people remain hesitant to move to China due to the political environment, quality of life concerns and workplace issues,” said Remco Zwetsloot, a research fellow at Georgetown University’s Center for Security and Emerging Technology (CSET).
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Some of the US-trained Chinese AI engineers told the Post they were scared off by China’s “996” working culture: 9am to 9pm, six days a week. Tech firms in China typically expect their employees to work long hours to prove their dedication.
Lin, the Beijinger who now works for Google, used to be an intern at one of China’s largest internet giants. “I worked from the time I woke up until going to bed,” he said, “At Google, I’ve been confused because many people here only work till 5pm but Google is still a global leader.” Lin said he would be happy to return to China if the 996 work culture eases.
Graduates throw their caps in the air as they pose for a group photo during the 2019 commencement ceremony of Tsinghua University in Beijing. Tsinghua ranks as China’s top university for AI. Photo: Xinhua
Chen, a female postgraduate student at Carnegie Mellon, who recently accepted a job offer from Google, once interned at Beijing-based AI unicorn SenseTime, where she worked from 10am to between 8pm and 10pm most days.
A SenseTime spokesperson said the company has adopted flexible working hours for its employees.
Besides a better work-life balance, Chinese graduates look for jobs in Silicon Valley because of the higher pay.
“If you include pre-tax income, many of us get offers that pay more than 1 million yuan (US$142,000) a year but in China the salaries offered to the best batch of fresh undergraduates are about 200,000 to 300,000 yuan (US$28,000 to US$43,000),” Chen said.
Still, for those Chinese with long-term plans to stay in the US, a major obstacle lies in getting work visas, especially in the current trade war environment. Most AI-related workers are on H-1B visas that allow US companies to employ non-US nationals with expertise in specialised fields such as IT, finance and engineering.
However, the number of non-immigrant H-1B visas granted has started to fall since 2016, when it peaked at 180,000, according to the US Department of State, and US tech companies have complained that a policy shift by the Trump administration has made the approval process longer and more complicated.
In 2017, President Donald Trump requested an overhaul of the H-1B visa programme, saying he did not want it to enable US tech companies to hire cheaper foreign workers at the expense of American jobs. He also wants to give priority to highly skilled people and restrict those wanting to move to the US because of family connections.
Science graduates from overseas countries can stay in the US with their student visas for up to three years while competing for the hard to get work visas, which are granted based on undisclosed mechanisms. Overseas students already working in the US can apply for so-called green cards, which offer permanent residency.
After working for a major US tech company for almost three years on a student visa, one Chinese software engineer, who spoke to the Post on condition of anonymity, said she was relocated to the US firm’s Beijing office last year after failing to obtain a H-1B work visa.
“While there might be individual cases, it seems like the current tensions have not – at least as of a few months ago – led to noticeable changes in the overall number of Chinese students staying in the US after graduating,” said CSET’s Zwetsloot.
Some Chinese AI scientists use Twitter to announce their decision to stay. Chen Tianqi, who just obtained a PhD at the University of Washington in Seattle, and Jun-Yan Zhu, a CMU and UC Berkeley alumnus currently working at Adobe, each tweeted that they would join Carnegie Mellon as assistant professors next year.
To achieve the goal of turning China into “the world’s primary AI innovation centre” by 2030, according to a 2017 blueprint issued the State Council, the central government has stepped up efforts to attract US-educated talent.
The Thousand Talents Plan has seen more than 6,000 overseas Chinese students and academics return since its was established in 2008, but because of escalating tensions with the US, Beijing has played down the initiative.
Longer term, Beijing’s willingness to invest significant sums into the AI sector could see more Chinese return for the better employment opportunities. Between 2013 and the first quarter of 2018, China attracted 60 per cent of global investment in AI, according to a Tsinghua University report.
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Chinese authorities are investing heavily in the sector, with the city of Shanghai setting up a 10 billion yuan (US$142 million) AI fund in August and Beijing city government announcing in April it would provide a 340 million yuan (US$48 million) grant to the Beijing Academy of Artificial Intelligence.
“More and more senior people like me have come back, and some start their own businesses,” said Zheng, the Siemens Healthcare researcher who joined Tencent. “It’s easier for Chinese to seek venture capital in China than in other countries.”
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