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Your daily dose of China's tech
March 26, 2019

“AI enterprises for pure technology won’t grow into many companies worth of tens of billions of dollars.”

Tech guru Kai-Fu Lee on the challenges faced by certain artificial intelligence startups

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Scared straight at JD

What: As part of its anti-graft initiatives, Chinese online retailer JD sent a group of employees from its public affairs department to visit Beijing Municipal No.1 Prison on March 20.

Freedom: The company announced the activity through a WeChat post with the frank title: “Freedom is life’s greatest joy.”

Background: This is not the first time that JD’s unusual anti-corruption measures have garnered public attention. According to a leaked email that went viral on Chinese social network Weibo, JD employees have been asked to report details about their spouse, direct relatives, three generations of family members, and classmates. Local media points out that the move is aimed at curbing internal corruption.

Trending: Other Chinese tech companies are also speeding up internal investigations to curb corruption. Ride-hailing giant Didi dismissed more than 80 employees last year after its compliance staff found up to 60 cases of internal corruption. Drone maker DJI placed 45 of its employees under investigation for a case that could result in losses of up to RMB 100 billion (around $150 million).

- Emma Lee

Shots

Concentrated daily news

Another Chinese online lender is exiting the market amid the regulatory clampdown. Guangdong-based Hongling Capital, one of the oldest and largest peer-to-peer lenders in China, is calling it quits.

Beijing-based online housing platform Beike announced Monday it has received $800 million in Series D funding from Tencent, as Chinese internet giants elbow their way into the country’s burgeoning real estate market.

Evergrande Health aims to build production capacity for 1 million electric vehicles (EV) over the next three years. Its parent company, the real estate conglomerate Evergrande Group, said last week that it had plans to begin producing vehicles as early as June.

Hong Kong-headquartered fintech startup Airwallex has closed a $100 million Series C that values its business at more than $1 billion.

Drips

Small drops to get smart on China's tech world

Running interference: According to a report by Reporters Without Borders (RSF), China’s influence on global media is on the rise. (RSF)
IP theft all around: Even Chinese companies are subject to IP theft and infringement. (BBC)
Lag time: Turns out, China still lags behind the US in high-tech unicorns. (SCMP)
Seeking alternatives: The US Department of Defense is talking to Huawei rivals Ericsson and Nokia about their 5G development plans. (Reuters)