Artificial intelligence rises in China – Rupert Hoogewerf

Rupert Hoogewerf

Vision, robotics and language are key areas where China is worldwide leading the AI, says Rupert Hoogewerf, chairman of the Hurun report on artificial intelligence. The number of patent applications has been rising sharply over the past five years, he adds in the South China Morning Post. Huawei holds a top position.

The South China Morning Post:

Tencent is one of the main champions of AI technology in China’s medical industry while Baidu is a key AI player in smart homes and smart driving, said the report.

E-commerce powerhouse Alibaba, leading Chinese surveillance camera maker Hikvision, voice-recognition developer iFlytek and state-owned power company State Grid also made it to the top 10... 

“The number of AI patent applications has risen rapidly in the past five years, and China is the world leader especially in the fields of vision, robotics and language,” said Hurun Report chairman and chief researcher Rupert Hoogewerf, also known by his Chinese name Hu Run. 

Unlike many leading Chinese technology firms that primarily focus on software development, Huawei and Hikvision are also major chip designers. 

Both were included in the US trade blacklist, officially called the Entity List, earlier this year. Their inclusion in the list effectively bars them from purchasing US goods, as the world’s two largest economies extend their trade competition into technology.

More in the South China Morning Post.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request list.

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How to hire and retain people in China - Ashley Dudarenok

Ashley Dudarenok

Hiring and retaining people for your successful team is a tough challenge in China. China marketing-veteran Ashley Dudarenok tells about her tips and tricks. Attitude is the most important thing. How to figure out whether somebody is fit for the team. 

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form. 

Are you looking for other experts to manage your China risk at the China Speakers Bureau? Do check out this list. You can watch part 2 here.

Staying ahead of the China trends - Shaun Rein

Shaun Rein

Shaun Rein, author of The War for China's Wallet: Profiting from New World Order and other bestsellers on doing business in China, explains how he can stay ahead of the China trends. 

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form. 

Are you looking for more strategy experts? Do check out this list. You can watch part 2 here.

The return of religion to China - Ian Johnson

Ian Johnson

Religion has returned to the center of politics, argues journalist Ian Johnson, author of The Souls of China: The Return of Religion After Mao at the McGrath Institute for church life. Religion has returned to center of society over the past decades. 

Ian Johnson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form. 

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Single's Day: consumers waited for bargains - Ben Cavender

Ben Cavender

China's Single's Day broke several records, but that is deceptive. Consumers waited for bargains and delayed purchases till Single's Day, says retail analyst Ben Cavender to Reuters.

Reuters:

“What’s happened is that you’ve had a lot of consumers this year being a little bit more careful about their purchasing because the economy’s slowing down,” said Ben Cavender, managing director of consultancy China Market Research Group. 

“I think this year especially, people were kind of waiting for Singles’ Day and kind of waiting to make some of those medium-sized purchases that they didn’t want to pay full price for.”

More at Reuters.

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How does Alipay works for foreign tourists? - Ashley Dudarenok

Ashley Dudarenok

Marketing expert Ashley Dudarenok is enthusiastic about the announcement of Alipay to open up for tourists visiting China, followed shortly by a similar move by WeChat. On her vlog, she explains how visitors without a Chinese bank account can now use Alipay. Details on WeChat were not yet known at the moment of recording.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Local VC's got hit by another China winter - William Bao Bean

William Bao Bean

China's economic slowdown has mainly hit local VC's, says William Bao Bean, managing director of the Chinaccelerator, at OZY.com. A government crackdown on risky investments and the fallout from the trade war is hitting the industry after the 2017-2018 boom.

OZY.com:

Local venture capital firms that raise money and invest in renminbi have been hit hardest, says William Bao Bean, a partner at SOSV Investments in Shanghai. 

“Almost all those VCs didn’t get a return … and a lot of funds have gone out of business,” Bean says, noting that while dollar investment from traditional VC funds has cooled, it hasn’t been hit to the same extent... 

Hurun Report noted that even though the pace of creation of unicorns has slowed, China still leads the world, with 206 unicorns to the United States’ 203. 

But the Chinese economy is now growing at its slowest pace in three decades, a worrisome trend that is twinned with a rocky stock market and concerns about the sky-high valuations for startups. “It’s another Chinese winter, since basically last September everyone on the local side, investing renminbi has been on vacation,” says Bean.

More at OZY.com

William Bao Bean is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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The trade war is not yet over - Harry Broadman

Harry Broadman

Former trade negotiator Harry Broadman warns at Bloomberg the trade war is far from over despite positive sounds on the phase 1 agreement. US President Donald Trump seems more engaged in winning the 2020 presidential elections than ending the trade war. And he introduces agricultural deals for the US that makes the country look more Chinese than ever.

Harry Broadman is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Alipay, WeChat at last opened for foreigners - Shaun Rein

Shaun Rein

Alipay and WeChat, China's largest payment options, opened their services for foreign credit card holders, and it was about time too, says Shanghai-based business analyst Shaun Rein, author of the bestseller The War for China's Wallet: Profiting from New World Order to the South China Morning Post.

The South China Morning Post:

“A lot of restaurants now in China now only accept Alipay or WeChat Pay, and so the problem is you can’t go and eat in a lot of restaurants you want to go to,” said Shaun Rein, founder of the China Market Research Group and author of “The War for China’s Wallet.”

“The other thing that foreigners complain about is that it’s very difficult for them to book taxis or to arrange for tickets, like at the Forbidden City and a lot of national attractions.”

Unlike in the West, China’s consumers leapfrogged credit cards and have gone straight from cash to smartphones. One reason is that Chinese apps have embraced the QR code — a far simpler, cheaper and more accessible payment method compared to NFC, adopted by Western apps like Apple Pay... 

“A lot of supermarkets might have one cash-only counter — very often they never even open it — or you might have a hundred people over the age of 70 standing in line trying to buy items because they don’t know how to use a mobile phone,” said Rein... 

Rein... thinks privacy concerns won’t stop foreigners from using these apps in China, where alternatives like Apple Pay are far less popular. 

“When they’re in China, if they don’t have the apps, they can’t function,” he said. “So the convenience of it outweighs any privacy concerns. And that’s what you’re seeing with mainland Chinese consumers as well.”

“Alibaba and Tencent have way too much data on every individual mainlander. They know exactly where we’re traveling, what we’re buying, who we’re going with, what we’re watching… But mainlanders still use [the apps] because of the convenience. And I expect that foreigners are going to do the same once they’re in China.”

More at the South China Morning Post.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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State-owned companies get too many loans – Arthur Kroeber

Arthur Kroeber

Private companies have a hard time getting bank loans, says economist Arthur Kroeber to Barron's. But that is nothing new, he adds, the problem is that state-owned companies get loans too easy. That division is more important than the level of China's debts, he adds. "Too much attention has been paid to the debt problem."

Barron's:

Arthur Kroeber: The latest survey of corporate chief financial officers showed that the finance conditions for private companies is quite poor. There is a problem there, but they have always had that issue. The problems are not so much that private companies get too little; it’s that state-owned companies get too much. It is loss of opportunities for private companies to expand and do as much as they are capable of doing... 

Kroeber: I agree with the generalization that way too much attention has been paid to the debt problem and its significance has in many ways been exaggerated. But I think there are some issues that are material. China’s gross debt to GDP is probably around 260%. That is not particularly high for a developed economy, but it is extremely high for a developing economy. Although you have not had deleveraging in the sense of a reduction in that ratio, it is clearly an aim of government policy not to let that ratio rise—or not very much. It is an important constraint on policy and one of the reasons, over the last year and a half as the economy has slowed, that the government doesn’t want to do more debt-fueled stimulus.

More in Barron's.

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How Google entered and lost China - Kaiser Kuo

Kaiser Kuo

When Google entered the China market in 2006 it notified its users they are looking at a censored search engine. The government hated it, says Kaiser Kuo, former head international communication of competitor Baidu to the Go Tech Daily.

Go Tech Daily:

Central to that decision by Google management was a wager that by serving the market—even with a censored product—they could broaden the horizons of Chinese consumers and nudge the Chinese world-wide-web towards increased openness. 

At initial, Google appeared to be succeeding in that mission. When Chinese customers searched for censored information on google.cn, they saw a notice that some benefits experienced been eradicated. That community acknowledgment of internet censorship was a initially between Chinese search engines, and it was not popular with regulators. 

“The Chinese government hated it,” claims Kaiser Kuo, former head of global communications for Baidu. “They in comparison it to coming to my household for supper and stating, ‘I will concur to consume the meals, but I really do not like it.’” Google hadn’t requested the govt for permission just before employing the notice but wasn’t ordered to eliminate it. The company’s international prestige and technical knowledge gave it leverage. 

China may well be a promising current market, but it was nevertheless dependent on Silicon Valley for expertise, funding, and know-how. Google required to be in China, the contemplating went, but China wanted Google... 

“[Chinese officials] have been truly on their back foot, and it appeared like they could possibly cave and make some sort of accommodation,” says Kuo. “All of these folks who apparently did not give significantly of a damn about world-wide-web censorship right before have been really offended about it. The total internet was abuzz with this.”

More in the Go Tech Daily.

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How to launch your product at Zhihu - Ashley Dudarenok

Ashley Duarenok

Zhihu, China's popular Q&A site comparable to Quora, can be a good place to launch your product, says China marketing expert Ashley Dudarenok at the Jing Daily. But the content-driven platform needs - not surprisingly - also a content-driven strategy, she explains.

Jing Daily:

 “Brands on Zhihu need to be able to provide knowledge-driven content, and not be self-promotional. This is how they will reach the consumers who use it,” says Ashley Galina Dudarenok, founder of research platform ChoZan.co.

• A focus on knowledge — not sales — is the key to success. For brands launching on Zhihu, you should be seeking to build trusted relationships with the platform’s users. “Don’t just sell your product or brand,” Dudarenok says, “These consumers want to hear your in-depth expertise. For example, if you’re a cosmetics brand, don’t just talk about what the product is, but how it is made, and where the ingredients come from.”

• Ensure there is a trusted personality attached to the brand and keep your audience in mind.

More at the Jing Daily.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Understanding the consumer in China - Ben Cavender

Ben Cavender

Understanding the consumer in China is tough for most foreign companies entering this competitive market, says retail analyst Ben Cavender. There is no escape from shopping here, as retail is fully integrated into daily life. "China is where all the future trends are happening," he says.

Ben Cavender is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on China consumers? Do check out this list. 

How Trump helps China's innovation - Shaun Rein

Shaun Rein

China veteran Shaun Rein explains at the WSJ Tech Live conference how the policies of US President Donald Trump help China companies to focus on their own innovation instead of buying technology in the US.

Shaun Rein is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Boardrooms have to shape up to face the fallout of the trade war - Harry Broadman

Harry Broadman

International trade veteran Harry Broadman discusses how the world's boardrooms have to shape up to deal with the fallout of the trade war and global tumult hitting companies and countries.

Harry Broadman is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on the ongoing trade war between China and the US? Do check out this list.
 

On sinicizing Christianity - Ian Johnson

Ian Johnson

China's central government has been trying to sinicize religion, and that had especially a major effect on Christianity, writes journalist Ian Johnson, author of The Souls of China: The Return of Religion After Mao. For the New York Review of Books, he reviews Jesus in Asia by R.S. Sugirtharajah, but starts with a thorough overview of Beijing's efforts to curtail Christianity.

Ian Johnson:

Over the past few years, the authorities in Beijing have given churches across the country orders to “Sinicize” their faith. According to detailed five-year plans formulated by both Catholic and Protestant organizations, much of this process involves the predictable palaver of state control: “to actively practice core values of socialism, love the motherland passionately, support the leadership of the Communist Party, obey the law and serve society.”¹ 

But the authorities want more than just political control; they want a say over Christianity’s spirit, too. According to one document, “Chinese styles” are to be promoted in the religion’s “building, painting, music, and art,” and also in Christian liturgy and theology. Other documents speak of reflecting Chinese traditions, but what this means isn’t exactly clear—perhaps filial piety, ancestor worship, and explicitly rejecting foreign influence. 

While these new regulations affect China’s other religions too, they hit each one in different ways. They probably matter least to Daoism, which is an indigenous Chinese religion, and little to Buddhism, which is a global religion but has been in China for so many centuries that it has spawned local schools and practices. But for China’s other two main religions, Islam and Christianity, the rules raise serious concerns. In the case of Islam, the state’s aim seems to be mainly political control of sensitive border regions, because of the faith’s predominance among several ethnic minorities, especially the Hui and the Uighurs, who live in China’s far west. 

Christianity poses a subtler and possibly more profound challenge. This is not only because it has spread among the ethnic Chinese, or Han, majority, who make up 92 percent of China’s population, but also because it has grown fastest not in remote border regions but in the cultural heartland and among white-collar professionals who are supposed to be leading China’s modernization. This makes Christianity the first foreign religion to gain a central place in China since Buddhism’s arrival two millennia ago. Hence the authorities’ unease and their vague desire for Christianity to become something Chinese and nonthreatening. 

These concerns have arisen before. Christianity has had a presence in China for four hundred years. Missionaries such as the Jesuit Matteo Ricci got a foothold in the country by acting like Confucian officials: dressing in gowns, learning the formal language of classical Chinese, and downplaying differences between Christianity and Chinese thought. The Jesuits called God tianzhu, or “lord of heaven,” a plausible term for the Heavenly Father, but not coincidentally also the name of an old Chinese deity. Over the following decades, Christianity spread in North China by fitting into familiar folk religious patterns: offering moral precepts that sounded like Confucian principles or worshipping a virgin saint who seemed much like local female deities. Missionaries in this era, before imperialism made them arrogant, softened unfamiliar or disturbing ideas, such as Jesus’s crucifixion and resurrection.² 

The new effort to sinicize Christianity is something different—and probably unique in its encounter with Asia. In years past, Chinese and other Asian governments were weak, and even if Christianity found followers it was later tarnished by the fact that missionaries arrived along with Western gunboats. Now we have a strong government in Beijing that accepts the reality of Christianity but wants it to conform to Chinese foreign and domestic policy. This isn’t unusual in Christian history—look at the innumerable British churches with tableaux and plaques that glorify British imperialism—but Beijing’s firmness is something new in Asia.

The full review in the New York Review of Books.

Ian Johnson is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Renminbi lost its chance as an international currency - Arthur Kroeber

Arthur Kroeber

For a while, China's Renminbi or Yuan looked like a potential competitor in international markets. But China has lost that opportunity, says economist Arthur Kroeber in OZY. “Who’s going to issue or buy bonds in a market where liquidity can be turned off at the drop of a hat?” he asks.

OZY:

Global use of the renminbi would reduce exchange rate risks for Chinese companies and minimize exposure to sharp drops in dollar liquidity — one driver of the fall in Chinese exports during the financial crisis. 

“There was both an objective to use renminbi internationalization as a wedge to drive finance sector reform, but there was also a very strong and widely held view that having a more fully independent currency was really important to secure China’s economic sovereignty,” says Arthur Kroeber, managing director of research company Gavekal Dragonomics. 

Zhou (Xiaochuan, then governor of the People’s Bank of China)’s initiative came at an awkward time. Despite having a large economy, China had neither deep financial markets facilitated by an open capital account nor widespread confidence in its currency — elements deemed “fundamental determinants” of international currency status by Harvard economist Jeffrey Frankel. 

Yet the central bank pushed on, creating an offshore market for renminbi debt centered in Hong Kong. By 2014, annual offshore issuance had climbed to Rmb112 billion ($16 billion), according to Dealogic. The offshore exchange rate is independent of the controls used by the central bank on the onshore rate, which limits moves against the dollar to 2 percent in either direction of a daily fix. 

But in August of 2015, the central bank set the daily fix sharply weaker, inducing a shock devaluation in the normally stable onshore rate. Global markets convulsed and the offshore rate pushed below its onshore counterpart, spurring massive capital outflows on fears of a further sharp depreciation. Ultimately, Beijing tightened capital controls to stem renminbi outflows, which cut off liquidity to the offshore market. 

Kroeber contrasts this move to the U.S. decision in the 1960s not to throttle the nascent eurodollar market when an offshore pool of dollar liquidity began ballooning in Europe. China’s decision stabilized the renminbi, he said, but left it bereft of credibility as an international financial currency. “Who’s going to issue or buy bonds in a market where liquidity can be turned off at the drop of a hat?” he asks. 

This year, offshore renminbi bond issuance totaled just Rmb16 billion ($2.3 billion) at the end of September compared with onshore issuance of Rmb4.5 trillion ($635 billion), Dealogic data show.

More in OZY.

Arthur Kroeber is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Sustainability: a tough sell to China consumers - Ashley Dudarenok

Ashley Dudarenok

Sustainability might have been high on the agenda of major fashion brands, most consumers in China still not buy into the concept, says marketing expert Ashley Dudarenok at the Jing Daily. But there is hope for the future as brands focus on the young and future consumers.

Jing Daily:

Chinese consumers often face barriers when they attempt to purchase sustainable products. Consumer research from the Chinese fashion media Luxe.co found that 21 percent of shoppers don’t know where to find sustainable fashion, and another 19 percent “do not understand what sustainability means.” Founder of the research platform ChoZan.co, Ashley Galina Dudarenok, explains that “sustainable fashion faces a lot of problems in the Chinese market. It is simply not the first concern when consumers make a purchase.”... 

Swarovski’s Waterschool environmental stewardship initiative has reached over 100 schools and 350,000 students across China, smartly targeting the next generation of China’s young and sustainably-savvy consumer. And according to the experts, it is this generation of young advocates who will be demanding more from brands in the future while also expecting proof of ethical sourcing and manufacturing standards. Galina Dudarenok explains that these consumers will expect sustainability to be a standard feature of brands’ product offerings in the future, claiming that “sustainable luxury does have a future in the Chinese market, and it is with post-90s consumers.” Far from being a passing trend, smart brands ought to be preparing for the eventual emergence of China’s environmentally conscious consumers now rather than when it’s too late.

More at the Jing Daily.

Ashley Dudarenok is a speaker at the China Speakers Bureau. Do you need her at your meeting or conference? Do get in touch or fill in our speakers' request form.

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Trade war focus: Trump's reelection in 2020 - Harry Broadman

Harry Broadman

Trade negotiations between the US and China have moved away from substantial issues, as the Trump administration is using the ongoing trade war as a tool to win the presidential elections in the US 2020, says Harry Broadman, former top trade and economic adviser to Presidents George H.W. Bush and Bill Clinton to CNBC.

CNBC:

Harry Broadman, former Assistant U.S. Trade Representative under the Bill Clinton administration and current partner at the Berkeley Research Group, told CNBC that any White House communications regarding the trade war should be seen through the lens of the president’s “singular focus” on his 2020 re-election campaign, adding that the deal touted by U.S. trade officials was “not much of a deal in any kind of meaningful way.” 

“As everyone knows, it does not touch on the threshold issues that the administration has been talking about for two years, which is the structural reforms, the intellectual property protections, subsidies, the state-owned enterprises and the like,” Broadman told CNBC via telephone from Washington on Tuesday. 

“It’s not even obvious to me how much of that was even discussed in the conversations and the reason for that, I believe, is the metric that Trump and his lieutenants, the Secretary of the Treasury and the U.S. Trade Representative, focus on is how to eliminate the merchandise bilateral trade deficit between the two countries.” 

Broadman, who also served as chief of staff on George H.W. Bush’s Council of Economic Advisers, suggested that since the Trump campaign’s focus in both 2016 and 2020 is on eliminating the bilateral trade deficit on goods, the administration’s sole focus would be on demonstrating to Trump’s base that the promise been fulfilled. However, he dismissed the merchandise bilateral trade deficit as an “economically meaningless metric.”... 

Broadman, who was part of the U.S. team that negotiated with the WTO, said a marked shift had occurred away from a focus on multilateral and plurilateral regional agreements and toward bilateral efforts between individual nations. 

“The other issue within that context, particularly in the bilateral context with China, is that these ‘agreements’ with China and the U.S. under the Trump administration, frankly, are making the U.S. look more like China, in the sense that these state-to-state deals on agricultural purchases are not market-driven purchases,” Broadman said. 

He added that the Trump administration was correct to criticize China for being a member of the WTO while maintaining a prominent state role in its economy, but suggested that Trump was now “centering his negotiations by employing the U.S. government on the transaction side.”

More at CNBC.

Harry Broadman is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

Are you looking for more experts on the ongoing trade war between China and the US? Do check out this list.  

China tops 2019 global unicorn list - Rupert Hoogewerf

Rupert Hoogewerf

Three Chinese companies, Ant Financial, Didi Chuxing and Bytedance top the inaugural global unicorn list 2019 for startups in this century, says Hurun chief researcher Rupert Hoogewerf according to the CEO Magazine.

CEO Magazine:

The 10 top unicorns, businesses created in the 2000s, are worth US$542 billion, according to Hurun Research. 

Hurun Research Institute has released the inaugural Hurun Global Unicorn List for 2019. All the top unicorns are not on a stock exchange and valuations are a snapshot on 30 June. 

“We have found just under 500 unicorns in the world. The Hurun Global Unicorn List 2019 is designed to inspire entrepreneurship among wannabe entrepreneurs and encourage investors. These young companies, only seven years old on average, are the world’s most exciting start-ups, leading a new generation in disruptive technology,” said Hurun Report Chairman and Chief Researcher Rupert Hoogewerf, also known by his Chinese name Hú Rùn. 

Hurun Research Institute found 494 unicorns in the world, based in 25 countries and 118 cities. They were created seven years ago on average, are worth US$3.4 billion on average and US$1.7 trillion in total.

More at the CEO Magazine.

Rupert Hoogewerf is a speaker at the China Speakers Bureau. Do you need him at your meeting or conference? Do get in touch or fill in our speakers' request form.

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