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.
– The last nine poverty-stricken county-level regions in east China’s Anhui Province have been removed from the country’s list of impoverished counties.
– This marks that all county-level regions in the Yangtze River Delta, consisting of Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, have been officially lifted out of poverty for the first time in history.
HEFEI, April 29 (Xinhua) — Sitting in front of his smartphone, Zhang Chuanfeng touts dried sweet potatoes to viewers on China’s popular video-sharing app Douyin, also known as TikTok.
“These are made from sweet potatoes I grew myself. They are sweet and have an excellent texture,” said Zhang while livestreaming in Tangjiahui Township of Jinzhai County in east China’s Anhui Province. Tucked away in the boundless Dabie Mountains, the township used to have the biggest poor population in the county.
Aerial photo taken on April 16, 2020 shows residential buildings in Dawan Village of Jinzhai County, east China’s Anhui Province. (Xinhua/Liu Junxi)
Jinzhai County is among the last nine county-level regions in Anhui that have been removed from the country’s list of impoverished counties, according to an announcement issued by the provincial government Wednesday. They are also the last group of county-level regions that bid farewell to poverty in the Yangtze River Delta.
E-COMMERCE
Zhang might seem like a typical e-commerce businessman reaping success in China’s booming livestreaming industry. But his road to success has been a lot bumpier: he suffers from dwarfism.
A little more than 1.4 meters tall, Zhang has a babyface, making him “look like a junior school student,” he said. But the man, 38, is the father of a nine-year-old boy.
For Zhang, life was tough before 2014. “Nobody wanted me because of my ‘disabilities’ when I went out to look for jobs,” he said. “I was turned down again and again.”
Zhang was put on the government’s poverty list in 2014 as China implemented targeted poverty-relief measures. With the help of local officials, he got a bank loan of 10,000 yuan (about 1,400 U.S. dollars) and bought 22 lambs. He tended the animals whole-heartedly and seized every opportunity to learn how to raise them more professionally.
Zhang Chuanfeng feeds his lambs in Zhufan Village of Jinzhai County, east China’s Anhui Province, April 26, 2017. (Xinhua/Zhang Duan)
Within a year, the number of his lambs expanded to hundreds. In 2016, Zhang’s earnings exceeded 100,000 yuan, more than enough for him to cast off poverty.
Riding on this success, Zhang began to seek new opportunities. He rented a shop and started selling products online to embrace an e-commerce strategy the local government introduced in 2017.
More than 100 online shops, including Zhang’s, in the county have helped more than 7,000 poverty-stricken households sell about 73 million yuan worth of local specialties since 2018. Zhang alone earned 500,000 yuan from a sales revenue of 5 million yuan last year.
A villager arranges local specialties for sale at Dawan Village of Jinzhai County, east China’s Anhui Province, April 17, 2020. (Xinhua/Liu Junxi)
WICKERWORK SUCCESS
About 100 km north of Jinzhai lies Funan, a place that used to be vulnerable to constant floods.
Zhang Chaoling, who lives by the Huaihe River in Funan County, had to flee her hometown at a young age due to floods, but has flourished on a willow plantation along the river later.
“The land is largely covered by silt following continual flooding in the past. It is an ideal place to plant willows and make wickerwork,” Zhang said.
Zhang left her hometown for Guangzhou in 1993 and found a job in a garment factory. A few years later, she founded a trading company with her husband in Guangzhou, selling wickerwork products from her hometown to other countries.
Zhang returned to her hometown and set up a wickerwork production base in 2011. Funan is famous for its delicate wickerwork. Skilled craftsmen traditionally use local willow as a raw material to weave products such as baskets, furniture and home decorations.
A villager arranges wickerwork products in Funan County, east China’s Anhui Province, April 15, 2020. (Photo by Zhou Mu/Xinhua)
“The flood is well controlled now. I remember the last huge flood came in 2007,” Zhang said.
Taking advantage of the fertile land along the Huaihe River, she plants over 130 hectares of willow trees and employs hundreds of locals mostly in their 50s and 60s.
“I can process 100 to 150 kg of willow twigs per day, from which I make around 80 yuan,” said Geng Shifen, who peels willow twigs with a clamp next to the plantation.
A total of 130,000 people are engaged in the wickerwork industry in Funan, creating an output of nearly 9 billion yuan in 2019, and helping 15,000 locals shake off poverty, local statistics showed.
POVERTY REDUCTION FEAT
The Anhui provincial government Wednesday announced that its last nine county-level regions including Jinzhai and Funan are removed from the country’s list of impoverished counties.
This marks that all 31 impoverished county-level regions in Anhui have shaken off poverty, echoing China’s efforts to eradicate absolute poverty by the end of 2020.
With the announcement, all county-level regions in the Yangtze River Delta have been officially lifted out of poverty for the first time in history.
A bus runs on a rural road in Jinzhai County, east China’s Anhui Province, April 17, 2020. (Xinhua/Liu Junxi)
Covering a 358,000-square-km expanse, the Yangtze River Delta, consisting of Shanghai and the provinces of Jiangsu, Zhejiang and Anhui, is one of the most populated and economically dynamic areas in China, contributing one-fourth of the country’s GDP.
Anhui had a population of 63.65 million as of 2019, official data showed. The poor population in the province had decreased from 4.84 million in 2014 to 87,000 in 2019, and the poverty headcount ratio had been reduced from 9.1 percent to 0.16 percent during the period, according to the provincial poverty relief office.
A county can be removed from the list if its impoverished population drops to less than 2 percent, according to a national mechanism established in April 2016 to eliminate poverty in affected regions. The ratio can be loosened to 3 percent in the western region.
By the end of 2019, 5.51 million people in China were still living in poverty.
“We will continue our work to prevent people from returning to poverty, and help the remaining poor population shake off poverty by all means,” said Jiang Hong, director of the Anhui provincial poverty relief office.
not long ago – unless they have a child addicted to the wildly popular app, on which users make and share short, amusing videos.
It has grown explosively since its 2016 launch, with 800 million monthly active users now – 300 million of them outside China in places such as India (120 million) and the
(37 million). And many have no idea it is owned by a Chinese company, ByteDance.
The first Chinese app to mount a real global challenge to Facebook and Instagram, it is seen as one of the shiniest new weapons in the US-China technology war. And a boost, perhaps, to Chinese soft power.
TikTok, the missing link between Hong Kong and Indian protesters?
9 Feb 2020
It experienced a growth spurt in 2019 that analysts predicted would slow a little this year. That, however, was before the coronavirus, which seems to be giving the app a bump, especially beyond its core teenage fan base.
As pandemic fears rise and millions are stuck indoors, major Hollywood celebrities such as Jennifer Lopez, 50, have taken to posting their own all-singing, all-dancing videos, which then go viral on other media platforms.
Even the World Health Organisation has jumped on the bandwagon, joining the app in late February to share public health advice.
The TikTok logo on a smartphone. Photo: Getty Images
But to some, the growth of TikTok is far from benign.
Privacy advocates and several US congressmen want to rein in the app over concerns it may censor and monitor content for the Chinese government, and be used for misinformation and election interference. This despite the fact that TikTok keeps its servers outside China and swears it will not hand over user data.
Are these fears justified – or fuelled by political and anticompetitive motives?
Thinkers such as Yuval Noah Harari warn that the coronavirus pandemic could be a watershed in the history of mass surveillance.
But Eric Harwit, a professor of Asian studies at the University of Hawaii, does not buy such arguments against TikTok, especially given that 60 per cent of its US users are aged 16 to 24.
“ByteDance has done a pretty good job of having a firewall between TikTok and the Chinese version of it, Douyin.
TikTok, iPhone: all you need to escape Mumbai’s slums – for 15 seconds
1 Nov 2019
“Also, many users in the US are teens and they’re not a particularly useful source of national security information.
“So I’d say the concerns are motivated more by a general fear of any kind of Chinese telecommunication application rather than actual attempts to siphon off valuable US intelligence information.
“And Facebook and other American companies have similar products,” Harwit points out. “US government officials will always want to protect American commercial interests.”
Sarah Cook, a China analyst for Freedom House – the US government-funded think tank – disagrees.
“We have concerns about how Facebook and Twitter deal with information affecting electoral politics, and that’s magnified if you’re talking about a Chinese company that now has a user base that rivals theirs.”
Chinese officials, she argues, have shown a willingness to censor and manipulate information well beyond their country’s borders – for instance, regarding the scale of the initial outbreak in Wuhan, an obfuscation that may have exacerbated its impact abroad.
“For those who think Chinese government censorship is only Chinese people’s problem, this pandemic shows how much that’s not the case.
“And even if it’s not happening right now with TikTok, the concern is that Chinese companies are beholden to their government, whether they want to be or not.
“I’m not saying block TikTok entirely,” she says. “It’s a question of looking at it in a democratic system and deciding on reasonable oversight and safeguards to protect users and information flows when that time comes.”
When it comes to expanding China’s cultural influence, though, neither Cook nor Harwit believes the app is especially effective.
Most people are oblivious to its Chinese origins, which the user experience does not reflect in any way. So there is no goodwill-generating soft power of the sort wielded by, say,
If anything, TikTok often promotes the increasingly homogenous, Western-leaning culture seen on many globally popular social media apps.
So says Morten Bay, a lecturer in digital and social media at the University of Southern California’s Annenberg School for Communication and Journalism.
“A semi-Western culture, with small variations of local culture, is becoming the norm on social media. And Chinese soft power is difficult to assert because there’s no value difference.”
And even if Chinese tech companies keep taking bigger bites of the Western market, he is sceptical of China’s “ability to leverage that for soft power in a geopolitical sense”.
“Because there is a very big apparatus pushing against China in that regard. As soon as TikTok started gaining traction in the US, people came out against it, trying to make everyone aware of the privacy and geopolitical issues.
The #KaunsiBadiBaatHai campaign on TikTok aims to raise awareness about women’s safety issues in India. Image: TikTok
“So China faces a lot of resistance,” Bay concludes. “And I’m not sure a social media platform on its own can do much about that.”
Still, if you had to back a horse in this race, TikTok would be it, says Zhang Mengmeng.
When she and her colleagues from global industry analysis firm Counterpoint Research visited the company, they were impressed by its research and development capabilities.
“Because they’re a very young company, their pace for incubating new projects is a lot faster, especially compared to successful but older internet companies in China which have been around for 15 to 20 years.
Indian invasion of Chinese social media apps sparks fear and loathing in New Delhi
28 Apr 2019
“They have lots of little start-up projects within the company and their organisational structure is very flat – it doesn’t matter what your age is, if you have a good idea, you get promoted very quickly.”
TikTok’s rise is also emblematic of a broader role reversal in the US-China tech war, she believes.
“Before, the US was more advanced in terms of internet development and China seemed to just copy its new ideas. Now, this is reversing. There are so many people in China using the internet that start-ups there can test ideas very easily.
“So now it seems like a lot of US companies are trying to see what ideas are coming out of China.” ■
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.
Image copyright STRDELImage caption Prime Minister Modi is the third most followed leader on Twitter after Donald Trump
The world’s second most popular leader – when it comes to social media, at least – sent shockwaves through the internet on Monday, after announcing he was considering leaving the platforms.
After all, Indian Prime Minister Narendra Modi is the only politician to even come close to challenging US President Donald Trump’s online dominance.
And so it was somewhat unsurprising that the hashtag #ModiQuitsSocialMedia began trending in India, with users quick to share a heady cocktail of conspiracy theories, memes and desperate pleas.
However, Mr Modi, who has 54 million followers on Twitter, 35.2 million followers on picture sharing platform Instagram and 44 million followers on Facebook, soon revealed the true reason behind his abandonment of social media.
On Tuesday, he said that he would “give away my social media accounts to women whose life & work inspire us”.
But the “big reveal” came only after his first tweet generated an absolute social media storm.
Some theories suggested he was quitting social media platforms as they were being controlled by his opponents. Others speculated that he would launch an indigenous social platform, to match Twitter and Facebook, something similar to social media platforms like WeChat and Weibo in China.
“Expect SM companies stock to crash,” wrote one confident user.
Apart from the theories, there were desperate pleas from his fans. One wrote: “Please Sir, You can’t leave social media now for the sake of your fans!” Another added: “Modi Ji if you leave social media , they will use it against you and nation interest.”
“For me he is not only PM of India but also emotion. You’re king of social media. Don’t go sir.”
Some users suggested that his account had been hacked.
Soon, #Iwillalsoleavetwitter started trending.
Arun Yadav, the head of Haryana state IT and social media for BJP, tweeted asking the PM to not quit the platform as it was one way Indians could communicate with him.
But there were also jokes.
“Spare a thought for Twitter, Facebook & their stocks. PM Modi is all set to demonetise social media,” wrote one user, referring to the overnight decision to ban high value currency notes in November.
One user suggested that the prime minister was quitting all other platforms in order to make his TikTok debut.
“Modi ji is a typical Indian boyfriend after breakup,” quipped one Twitter user.
“Modiji should be awarded Nobel Peace Prize for bringing peace in the digital world,” said another.
Image caption #NoModiNoTwitter was a India trend on Twitter after PM Modi’s tweet yesterday
There were political reactions too.
In a cheeky response, Rahul Gandhi, former president of the main opposition Congress party, tweeted: “Give up hatred, not social media accounts.”
Congress leader and MP Shashi Tharoor followed suit, writing: “The PM’s abrupt announcement has led many to worry whether it’s a prelude to banning these services throughout the country too.”
Mr Modi’s eventual tweet which clarified matters was seen by some as an anti-climax.
But for the millions who were pleading with him to reconsider, this is surely a big relief.
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
Image copyright TIKTOK/SINA WEIBOImage caption A video and associated posters went viral showing a girl making an OK signal as a subtle way of asking for help
A video showing a Chinese girl using a clever technique to signal she needs help has been widely shared on popular social network TikTok – and is making the authorities nervous.
She is shown being escorted away by a stranger in an airport. Unable to make a cry for help, she makes a subtle hand gesture that looks like the signal for “OK”.
This alerts a passerby, who immediately begins to argue with the man, and helps others recognise that the girl is being held against her will. She is then reunited with her parents.
So why has the video created such a big reaction on Chinese social media, and made the authorities so upset?
The hand gesture
Image caption The “OK” hand gesture reversed looks like the number sequence “110”
While the “OK” gesture is pretty widely understood around the world as a positive gesture, simply turning your hand so that you are facing your palm conveys a subtle message in China.
If two fingers are pressed together, your hand can look like the numbers “110” – which in China is the emergency contact number for the police.
Consequently, the video, which features actors, shows a subtle way that a child can get a message out if they are in trouble.
To push this message home, at the end of the video, a man tells viewers to “spread this gesture” so that people can signal if they are in need of help “in the event of coercion, kidnapping, or fear of your life”.
The authorities don’t like it
Image copyright PIYAOImage caption China’s top disinformation bureau said the ‘OK’ signal as a sign of distress was absolutely not OK
The video has the appearance of a public service announcement, so many social media users assumed it had the backing of the police.
The Chengdu Economic Daily says that videos being shared on TikTok predominantly attributed the footage to the police. However, the actual origins of the video are unknown.
Today, official media are spreading the message of China’s official disinformation platform Piyao, which criticises the video for being misleading, and says the police had no involvement with it.
“Such a gesture is meaningless as an alarm,” it says, and argues that it might actually be counter-productive in allowing an individual to find help if they need it.
It says that it has “never publicised or promoted such an alarm method in public”, and urges readers to follow the traditional method of calling the police if they need assistance or suspect someone else needs help.
Social media users think it’s a good idea
Despite the authorities distancing themselves from the footage and associated advertising campaigns that have suddenly sprung up on TikTok, a huge debate has broken out online about whether the simple signal might actually be effective in helping Chinese people understand if somebody is under duress.
Some on the popular Sina Weibo microblog say that “shouting for help is more practical than gestures”, and others note that the simple signal might “mislead people” and could lead to accidental interventions where none are necessary.
But in a country where tight authoritarian controls are in place and people are unable to freely speak openly, some are praising this seemingly small action to attract attention if someone’s under duress.
“In fact, this kind of gesture could really be promoted for help in the country”, one user says.
“As long as everyone is in agreement, we can still use it, it is still possible,” another says. “As long as we’re united in our understanding.”
Numbers as a symbol of rebellion
Image copyright TAOBAOImage caption Taylor Swift’s 1989 album caused problems for Chinese censors as the singer is popular, but the number “1989” is sensitive
Number sequences have long proven an effective way for social media users to criticise the authorities, without immediately alerting government censors, who regularly screen platforms for sensitive words.
People have found ways to talk about the Tiananmen Square massacre of 1989 – which the government has heavily censored for three decades – by using number sequences such as “46” (4 June), “64” (June 4) or “1989”.
The authorities have wised up to number sequences being used and are known for censoring many of these. But such strict censorship does mean that sometimes innocuous posts are removed by mistake.
Image copyright AFPImage caption During the 2014 Hong Kong protests, demonstrators showed their anger for then-leader CY Leung by calling him “689”
Cryptic number sequences and hand gestures have proven particularly effective in helping protesters in Hong Kong unite on a shared message.
Online users have been able to voice criticism of their leadership in recent years by referring to them based on the number of votes that elected them into office.
Consequently, “777” has become a nickname for Hong Kong’s chief executive Carrie Lam. Her predecessor, CY Leung, was known as “689”.
Graphic on hand signals used by protesters in Hong Kong to communicate and to keep their supply-lines stocked with vital equipment http://u.afp.com/Jsjm
As protests have dominated Hong Kong in recent months, it has also become apparent that demonstrators have been able to organise themselves by communicating subtle hand signals across crowds.
Graphics showing DIY hand signals that they can use if they need supplies such as eye masks, helmets or face masks, have circulated widely on platforms like Twitter.
Which is why a small, seemingly innocuous hand gesture, going viral in mainland China and getting huge public support, would undoubtedly unsettle the authorities.
’s affordable labour market and strong economic growth provide a healthy breeding ground for young tech outfits.
Can Bollywood be the bridge that binds India and China?
Led by heavyweights such as Shunwei Capital, Fosun International, Tencent Holdings, Xiaomi and Alibaba Group Holding – which owns the South China Morning Post –
, the knowledge and technology of Chinese investors act as the backbone of their business, along with the operational expertise of Indians in the domestic market,” said Ntasha B, co-founder of Venture Gurukool, a mentoring platform for start-ups which works closely with Indian diplomatic missions in China.
Chinese President Xi Jinping and Indian Prime Minister Narendra Modi are set to meet again in October. Photo: Xinhua
She added that Chinese investors usually had a hands-on approach and were a bit inflexible, unlike their American counterparts, who gave some elbow room in hiring local teams.
A senior executive with an Indian start-up, who did not wish to be identified, said it was sometimes straightforward to convince Chinese investors as they could relate to Indian business models and requirements that were dissimilar to those from the Western world.
The world’s second-largest economy invested nearly US$2.5 billion in Indian start-ups last year, a figure that has touched almost US$1 billion so far this year, according to finance research firm Venture Intelligence. The number of such deals jumped from just one in 2013 to 27 last year.
What does Amazon’s China departure mean for its Indian e-commerce battle?
Indian start-ups are estimated to have raised US$3.9 billion from around the globe in the first six months of this year, and the inflow from Chinese behemoths played a key role in pushing them to turn east to source funding.
“What’s more interesting about [Chinese investors’] strategy is that they’re paying more attention to rural India. If you look at the companies they’ve invested in, a fair amount of their businesses target the rural segment,” said Sandeep Murthy, managing partner at venture capital firm Lightbox Ventures, which keeps a close watch on Chinese investments. He said the brisk economic activities in India’s tier two and tier three towns are more attractive to Chinese investors than India’s urban centres.
Ctrip, China’s largest online travel agency, is drawn to the size and rapid advancement of the Indian market. Photo: Bloomberg
WHY INDIA?
For Ctrip – China’s largest online travel agency, which in April took a 49 per cent stake in MakeMyTrip – the appeal of India was its whirlwind technological advancement and the disposable income of its massive young population.
“[MakeMyTrip has] achieved fast growth in the online travel market and is becoming well recognised in the Indian market. Their comprehensive products and services, management team and the opportunities in India result in our confidence that they will continue to succeed,” said Wei Yuan Min, a member of Ctrip’s global team. Behind the US and China, India houses the world’s third-largest start-up ecosystem in terms of the number of companies. As for the number of unicorns – start-ups valued at over US$1 billion – India ranks third, offering a vibrant habitat for entrepreneurial ventures. The country is home to 32 such firms, with the addition of nearly half a dozen so far this year and 15 last year.
In India, one man took on Chinese firm ByteDance to shut down TikTok – and he wants to do it again
New Delhi expects there to be 12,000 tech start-ups in the country by next year, up from 7,200 last year. There were 1,200 new tech firms in the sector last year, according to industry body Nasscom.
One of those capitalising on this opportunity is the Beijing-headquartered technology company Xiaomi, which last year promised to pump US$1 billion into 100 Indian start-ups over the next five years. Most of these Indian firms are involved in businesses that are ancillary to Xiaomi’s key operations.
Chinese firm Xiaomi is banking on Indian start-ups to strengthen its own products. Photo: Reuters
“These start-ups help us in building a stronger product offering,” a Xiaomi spokesperson said. “The idea is to invest in start-ups which can further boost the mobile ecosystem in India. They could be into mobile gaming, service providers, value-added services or servicing the mobile industry.”
Xiaomi has been rapidly expanding its businesses in India, selling smartphones, television sets, security cameras, speakers, power banks, and more. India was the first market outside China where Xiaomi introduced its television sets.
Asked which sector would be Xiaomi’s focus for investment in the coming years, the spokesperson said the company was looking to focus on hardware-related start-ups in the ecosystem which could offer “robust solutions” to its Indian requirements.
Amazon, Uber and Google struggled in China, but Indian hotel chain Oyo is succeeding.
Here’s why
While hopes for India’s start-up sector are high, there have been some disappointments. There were reports this month that Alibaba, a major shareholder in Paytm, was unhappy with the Indian firm’s performance, pressuring it to realign its strategies and looking unlikely to provide fresh capital.
Paytm, a digital-payment-system unicorn, launched its own e-commerce Paytm Mall in 2016 when Walmart-backed Flipkart and Amazon were dominating the market.
However, the venture has yet to take off and is burning through cash.
Paytm refused to comment on the matter.
Paytm has attracted investment from Alibaba, but its Paytm Mall venture is struggling. Photo: Bloomberg
NEW REVENUE STREAMS
Chinese firms’ coordinated effort to enter the Indian start-up scene has made it easy for Indian ventures to access new sources of revenue. For instance, the state-run Industrial and Commercial Bank of China (ICBC), the country’s largest lender, launched an India-specific investment fund for Chinese investors in May last year.
Several Chinese venture capitalists are also providing platforms for entrepreneurs through fellowship schemes. Four Indian ventures – Zefo, Healthy Buddha, NowFloats and Grozip – took part in one such fellowship initiative run by Alibaba last year.
Gold, jewels, ‘Islamic’ finance: how India’s I Monetary Advisory built a US$365 million Ponzi scheme
India has warmly welcomed these initiatives. Amitabh Kant, chief executive of state-backed policy think tank Niti Aayog and a close aide of Modi, has publicly said China should become the topmost investor in its neighbour.
Vikram Misri, India’s ambassador to China, has also been pushing for increased economic cooperation and Chinese investment since he took charge in January, despite expressing concerns over New Delhi’s widening trade deficit with Beijing.
Vikram Misri, India’s ambassador to China, is looking for more economic cooperation between the two countries. Photo: Xiaomei Chen
The increased Chinese investment in Indian ventures has coincided with the Modi administration’s 2015 launch of the Startup India initiative, an umbrella scheme aimed at easing related activities through measures such as tax exemptions and simplified paperwork.
Industry pundits say active cooperation between Chinese investors and Indian entrepreneurs holds a multitude of benefits for both sides.
“The cooperation gives Chinese investors global scale and opportunity to diversify their investments,” said Neil Shah, partner and research director at the technology market research firm Counterpoint.
The cooperation gives Chinese investors global scale and opportunity to diversify their investmentsNeil Shah, Counterpoint
“For Indian start-ups, this gives cross-border learning, guidance from their global investors on dos and don’ts, tactical and long-term strategy, how to create value, run operations efficiently as well as expand beyond India.”
Nilaya Varma, partner and leader of markets enablement at KPMG India, said there was a cultural shift happening in the country where young Indians brimming with ideas wanted to pursue their dreams rather than work for someone else. This brought out the entrepreneurial spirit of this generation, he said.
“The knowledge, concepts, ideas and innovations of the small start-ups in India will have a global appeal. So it makes a lot of sense for Chinese big players to invest here,” he said.
China’s talent is turning away from multinationals and towards domestic tech champions in the search for a more fulfilling career
Change in sentiment comes amid raging US-China tech war and perceptions of ‘bamboo ceiling’ in the West
An increasing number of Chinese jobseekers are looking towards domestic tech firms. Image: SCMP
Molly Liu left her hometown Beijing to pursue a master’s degree in the United States in the 1990s.
After graduation, she fought hard to win an entry-level position at a US-based consultancy and after a period was later sent back to China to help the company’s expansion.
In the land of opportunity, the ambitious US firm showered her with avenues to pursue her career and she ended up working in Hong Kong as well as being one of the first people on the ground for the consultancy in Shanghai, Beijing, Taipei and Singapore.
Times have changed, though. Recently, her only son, Ben Zhang, turned down a hard-to-get job offer from a Boeing subsidiary in the US after gaining a master’s degree in computer science from Carnegie Mellon University in Pittsburgh, Pennsylvania.
Chinese students educated in the US are now looking more at jobs in China. Photo: SCMP
He decided to return to Beijing in 2018 and now works as a product manager at Chinese smartphone maker Xiaomi. He is convinced that the start-up turned tech major can offer him the same sort of opportunities today that the US tech consultancy offered his mother in the 1990s.
This family story about the career choices of two different generations of US-educated Chinese students reflects a wider trend. Once upon a time, US corporations could cherry-pick top Chinese talent from American universities with the promise of large salaries, generous benefits and the chance to work at market-leading organisations.
Today, China’s cutting-edge technology companies – often referred to as China Tech Corporation (CTC) – are the most sought-after employers among many Chinese students, who want more than just a cushy life.
This marks another blow for multinational corporations (MNCs) already struggling to do business in China amid a myriad of restrictions and growing hostility towards them as the US-China trade and tech war gathers pace.
“What I look for in a job is not money. My parents are not counting on me to support them,” says 28-year-old Zhang, whose team in Xiaomi is working on a wide array of connected devices, from televisions to lamps to smart locks. “What I care about most is personal improvement and access to the best resources a company can offer.”
“In Boeing, I could probably work on a new product once every two to three years. But at Xiaomi, every three months, we can roll out a new product,” he added. “You can bring so many things into people’s everyday lives in China, like using your voice to control a TV or an air conditioner – things you can only imagine in the US.”
Zhang is not alone and many Chinese today perceive a “bamboo ceiling” in the US, where they are more often seen as engineers rather than executives.
One Chinese executive who now oversees the technology unit of a listed finance and insurance firm in China said that he used to lead a team of 20 engineers at one of the world’s most valuable tech companies in Silicon Valley.
“My job was to keep optimising the performance of a product [in Silicon Valley],” he said.
“But within three years in China, I was promoted to the chief scientist of our entire company, leading a team of 1,000,” said the man, who asked to remain anonymous as some of his family still reside in the US.
How Trump’s assault on Huawei is forcing the world to contemplate a digital iron curtain
According to an April survey by professional networking site LinkedIn, an increasing number of Chinese jobseekers share Zhang’s outlook. LinkedIn compiled a list of the top 25 most desired employers in China, and about 60 per cent were local Chinese companies, with 13 of them internet firms.
CTC bagged four of the top five spots, with e-commerce giant Alibaba, search giant operator Baidu and Bytedance – which operates short video hit TikTok – taking the lead.
Tesla ranked sixth behind its Chinese challenger Nio. Amazon, the only other foreign company in the top ten, ranked eighth.
Alibaba is the owner of the South China Morning Post.
Li Qiang, executive vice-president of Zhaopin, one of China’s largest online recruiters, described the rising status of CTC among jobseekers as “the dawning of a new era”.
“Nowadays, there is nothing a multinational can offer that a domestic firm cannot, be it a compensation package or the chance to be part of international expansion,” said Beijing-based Li.
“Jobseekers are not particularly looking for domestic firms or multinational firms. They are after good firms and most of the good firms in China these days happen to be domestic tech firms,” said Li.
Li’s comments reflect the wider opportunities within the domestic economy for Chinese jobseekers today, after the rise of many successful private-sector companies and a thriving start-up scene over the past 10 years, meaning it’s not just a one-way street to a state-owned enterprise (SOE) any longer.
A survey by Zhaopin in late 2018 found that 28 per cent of Chinese university students said MNCs were their employer of choice, down from 33.6 per cent in 2017.
Even on pay and benefits, CTC is catching up with multinationals. Zhang said Xiaomi matched the offer from the Boeing unit in the US and many leading tech firms offer benefits such as gym memberships and childcare facilities.
And the rags-to-riches stories of many leading China tech entrepreneurs, some of whom have become billionaires, continue to grab media attention and inspire the younger generation.
To be sure, Chinese students would still rather work for an MNC than an SOE – but the rise of CTC can be seen in company rankings and in the total number of CTC companies in the top employer list, according to Zhaopin.
For a growing number of Chinese students, the doors to America are closing
William Wu, China country manager of global employer brand consultancy Universum, said that the one element Chinese jobseekers pay most attention to these days is whether or not a job can be “a good reference point for a future career”. And a growing number of private Chinese companies now have global brand recognition.
A recent survey by Universum shows that Apple and Siemens were the only two Western names in the top 10 ideal employers for Chinese students in the engineering sector this year, while there were four foreign firms in the top 10 list in 2017.
Huawei Technologies, the Chinese telecoms giant that has been put on a US trade blacklist after the Trump administration said it was a national security risk, ranked top in the Universum list. Xiaomi, the smartphone maker Ben Zhang works for, ranked second while Apple, one of the most valuable tech firms in the US, ranked seventh.
It seems that China’s rising clout in the world is now an attractive factor for jobseekers.
“Every engineer would like to see the technology they’ve worked on have the potential to change the world one day,” said Li Yan, head of multimedia understanding at Chinese short video major Kuaishou. “In the old times Chinese companies were at the bottom of the global value chain, now they are climbing up, providing more opportunities for talent to create world-changing products.”
At Beijing-based Kuaishou, Li’s 100-strong artificial intelligence algorithm team – many of whom joined from Microsoft Asia Research – is working to make machines understand content better than humans by studying the millions of user-generated videos on the company’s platform every day.
CTC companies do have a strong home advantage, with big Western firms having to navigate a myriad of restrictions.
For example, the “Great Firewall” lets Chinese authorities control the content and information reaching the country’s 800 million-plus internet population. Western firms also face other forms of red tape, such as having to form joint ventures with local partners.
Amazon earlier this year announced the close of its China marketplace, giving up the brutal fight with Chinese online shopping giants such as Alibaba to capture domestic e-commerce market share. Oracle China reportedly laid off 900 people in March as it winds down its research and development center in the country.
Job applicants visit a provincial job fair at Qujiang International Conference and Exhibition Center in Xian, northwest China’s Shaanxi Province in February. Photo: Xinhua
Oracle has never confirmed the number of lay-offs but said the job cuts formed part of an overall global strategy transformation.
However, there has been little sympathy for those losing their jobs in China, judging by social media posts.
Some people posted that those working for big US tech firms are not “wolf” enough compared with counterparts who work for local tech firms, referring to the long work-hours culture of the domestic tech scene.
A viral story titled “Why there should be no pity for the sacked Oracle China employees” said the company was Beijing’s biggest nursery because of the flexible “work from home” culture and generous compensation package offered to employees.
Oracle said to begin mass lay-offs in China as part of global move to cloud services
“They had every chance to join rising domestic internet firms. But they settled for high salary and low work pressure, which eventually made them frogs in boiling water. Why pity them?” said the article, adding that the earlier people give up on the “glory” of working for MNCs, the quicker they will benefit.
Not all Chinese workers would agree, and there has been a recent backlash against the “996” culture within China’s tech sector, where people routinely work from 9am to 9pm, six days a week.
With geopolitical uncertainty growing day by day, though, many Chinese are asking why leave the family behind for an uncertain fate overseas?
A survey done by consultancy BCG and The Network in 2018 showed that only one in three China residents was willing to move abroad for work, down from 61 per cent in 2014. The country is also the 20th most popular destination worldwide to relocate for a job, compared with 29th in the 2014.
“One of my graduate classmates in the US just gave up a six-digit package at Oracle and joined drone maker DJI in Shenzhen,” said Ben Zhang. “I asked what prompted his return to China. He sent me the viral article and asked, ‘who wants a life that one can see the end of from the very beginning?’”
CHINDIA ALERT: You'll be living in their world, very soon 