News feed
Bite-sized news updates on China’s tech world
Monday, April 18
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JD is relocating 3,246 delivery and sorting workers to Shanghai to alleviate delivery pressures in the Covid-hit metropolis, local media outlet 36Kr reported. Labor shortages have cut into the online retailer’s plan to fulfill delivery orders for Shanghai residents who have been facing a food shortage due to a city-wide lockdown that began in April. On April 9, JD launched livestreaming sessions to sell daily groceries to Shanghai residents. The company faced major online backlash, however, after it walked back on its words, delaying deliveries for many users. JD’s delivery capacity in Shanghai has started to recover gradually, hitting 40% of its pre-pandemic delivery force last week, and 80% this week. [36Kr, in Chinese]
- TikTok owner ByteDance released its latest VR headset, the Pico Neo 3 Link, at the industry event Laval Virtual Europe on April 12. Priced at EUR 449 ($484.63), the new VR headset features four cameras and similar specs to a mainstream Android phone. It also supports streaming wirelessly to PCs to play titles listed on SteamVR and Pico Store. In 2021, the company shipped 150,000 VR units and is hoping to dramatically increase that number to 1.8 million this year. ByteDance acquired Pico for about RMB 5 billion ($771 million) last August. [ITHome, in Chinese]
- Shanghai municipal government released a guideline on April 16 to facilitate local industrial companies to restart production as the majority of the city has been under a lockdown since early April to prevent the spread of the coronavirus. According to Chinese media Caixin, 666 companies in the key industries are waiting to restart production. The companies are in the industries of semiconductor, auto manufacturing, equipment manufacturing, and biomedicine. The guideline asked manufacturers to submit operational plans to the government before producing again. Companies with proper management plans in place will be allowed to restart as long as they do so under strict anti-covid countermeasures, such as limiting employees’ movements and ensuring all staff wears KN95 masks in areas that are still facing covid-related restrictions. [SMCEI statement, in Chinese]
- Didi said on April 16 that its shareholders will vote on delisting the company from the New York Stock Exchange on May 23 and that it will not prepare for a listing on other exchanges before the process of delisting is completed. The Chinese ride-hailing platform added that the move is meant to help it “better cooperate with the cybersecurity review and rectification measures,” after unveiling plans in December to drop its US listing and pursue another one in Hong Kong. Chinese regulators responded to the news by saying that Didi’s delisting would not interfere with their current talks with US counterparts over the audit inspection of US-listed Chinese companies. [Caixin, in Chinese]
- Chinese online education platform Zuoyebang is expanding into the printer market and has set up a business arm for developing a printer business as it seeks new revenue sources. This new business arm now employs around 100 people, consisting mainly of former employees of traditional printer manufacturers, such as Canon, HP, and Epson. The Beijing-based company plans to launch a new printer product on Wednesday, local media outlet 36Kr reported. China’s clampdown on the private tutoring industry has brought nearly every major player in the sector to its knees since last year. As a result, these companies are now seeking alternative business avenues. For example, New Oriental founder and president Yu Minhong launched a livestream e-commerce project last November. [36Kr, in Chinese]
Tuesday, April 19
- Auto manufacturers and suppliers account for more than a third of the first 666 companies prioritized to resume operations by the Chinese government following Shanghai’s Covid-19 lockdown, according to a “whitelist” created by the Ministry of Industry and Information Technology last week and seen by Chinese media Caixin. Besides giants such as Tesla and Volkswagen’s partner SAIC, others on the list include German auto supplier ZF and China’s Yanfeng Automotive Interiors. No official restart date has yet been issued, however, Tesla reportedly began preparing for the reopening of its Shanghai facilities on Monday, while SAIC began conducting stress tests at its plants on the same day. [Caixin, in Chinese]
- LenzTech, a Chinese computer vision and data analytics services for the retail industry, has secured RMB 125 million ($20 million) in funding, the company announced Tuesday. Investors for the round include Tiantu Capital, robot maker Ecovacs, Yunqi Partners, and Zoo Capital. The proceeds will be used to ramp up the company’s efforts to digitalize the offline retail industry, optimize in-store inspection robots, and upgrade other AI and IoT technologies. The retail AI and big data firm merged with Singapore-headquartered peer Trax in 2019 with the goal of digitizing China’s physical world of retail. [Trax press release, in Chinese]
- The Shanghai municipal administration for market regulation summoned 12 e-commerce platforms, including Meituan and Alibaba’s Ele.me, to discuss price irregularities during the epidemic, the market regulator said in a Monday statement. The platforms were told to further crackdown on illegal retail behavior, strengthen reviews on product prices, and warn delivery drivers against raising delivery fees. Both Meituan and Ele.me vowed to strengthen their management in order to stabilize grocery prices during a challenging period for the food supply chain. [Government announcement, in Chinese]
- On Tuesday, Chinese storage chip maker Yangtze Memory (YMTC) released a new high-speed flash storage chip, which can be used in high-end smartphones, tablets, and AR and VR devices. The new UC023 comes with UFS 3.1, a mainstream storage standard for high-end devices, and can reach 1,250MB per second in ideal conditions, supporting the playback of 8K resolution videos. YMTC has adopted an upgraded TLC 3D chip in the UC023, featuring optimized random data writing and lower battery consumption. The flash chip is available in three storage volume options: 128GB, 256GB, and 512Gb. [YMTC, in Chinese]
- China’s National Bureau of Statistics released national industry production data for 2022 Q1 on Monday, saying the country produced 80.7 billion integrated circuits during the period, a decline of 4.2% compared to the same period last year. Chip production has been falling since August last year, but the latest figures are thought to have been further impacted by Covid-related lockdowns across the country. The Bureau’s official figures also noted that overall production across all industries saw a growth of 5% year-on-year in March, slightly lower than February’s 7.5%. [National Bureau of Statistics, in Chinese]
Wednesday, April 20
- Ant Group’s online bank MyBank will stop supporting money transferred from Ant’s mobile payment service Alipay starting Thursday, as China continues to tighten regulations on fintech companies. Alipay users will lose the option to transfer funds to class two MyBank accounts with no transaction fees. They will have to transfer funds to other Chinese banks and pay 0.1% transactions fees. Founded in 2015, MyBank is one of the first batches of Chinese private banks. [MyBank, in Chinese]
- Tesla’s Shanghai plant resumed production on Tuesday after being temporarily shut down for more than three weeks due to recent omicron outbreaks in the city, state-owned news agency Xinhua reported. Tesla will ramp up production and aim to hit maximum output for a single shift over the next three to four days as more than 8,000 employees have come back to work, the report said, citing Song Gang, a senior director at Tesla. The Shanghai Gigafactory is normally able to produce 2,000 vehicles each day over the course of two shifts when at full capacity. The plant lost 22 days of output due to its closure from March 28 to April 18. [Xinhua, in Chinese]
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