US President Donald Trump delayed enforcement of the TikTok sale-or-ban order for 75 additional days last Friday, one day before it was set to take effect. The extension follows Trump’s earlier tariff announcement that reportedly disrupted a pending deal to transfer the app’s US operations to American owners. ByteDance later claimed on Weibo that the company is still in talks with the US government and has not yet reached any agreement.

Why it matters: The delay highlights the ongoing uncertainty surrounding TikTok’s future in the US and the broader geopolitical tensions between Washington and Beijing. Trump has linked the deal with tariff negotiations, adding a new layer of complexity and making clear this is not a simple tech transaction but a bargaining chip in US-China trade relations.

Details: Trump announced the delay on his social platform, Truth Social, stating that his administration has been working hard to secure an agreement to “save TikTok” and has “made significant progress,” but the TikTok deal “requires more work to ensure all necessary approvals are signed.” The delay will allow TikTok to operate for another 75 days, pushing its deadline for a sale or closure in the US to mid-June.

• Earlier, CNN reported that a deal led by the Trump administration to split TikTok’s US operations into a new company – with US investors holding a majority stake and ByteDance retaining less than 19.9% to comply with the law – was “basically finalized” on Wednesday.
• “We had a deal pretty much for TikTok – not a deal but pretty close – and then China changed the deal because of tariffs,” Trump told reporters on Air Force One as he returned to Washington after a long weekend in Florida. “If I gave a little cut in tariffs they would have approved that deal in 15 minutes, which shows the power of tariffs.” 
• Potential TikTok investors could include Oracle and BlackRock, with Oracle currently providing most of the app’s back-end technical support. Other companies expressing interest in bidding include Amazon, former Los Angeles Dodgers owner Frank McCourt, and the founder of OnlyFans.

Context: Last year, former US President Joe Biden enacted a law that forced ByteDance, TikTok’s parent company based in China, to sell its stake in the app or face a ban in the US over national security concerns. The law was scheduled to take effect in January, but Trump announced a delay in its enforcement, hoping to negotiate a deal to keep the app operational.

Since then, Trump has stated that numerous buyers have shown “great interest” in acquiring TikTok. 

• The app, with over 170 million American users, is a highly valuable asset for any buyer looking to influence young internet users. 
• Currently, 60% of ByteDance’s ownership is held by “global institutional investors,” including BlackRock, General Atlantic Investment Group, and Susquehanna; 20% is owned by Chinese founders and 20% is owned by employees, including American staff.

TikTok has tried several approaches to resolve the stand-off over US national security concerns, including establishing a Transparency Center, creating a dedicated US data security company, USDS, to manage American user data, and implementing two projects – “Clover” for data segregation and “Texas” for data security – each costing about $1 billion annually. The company has also hired executives with American backgrounds and reached an agreement with Oracle, which will serve as TikTok’s “trusted technology provider” in the US, according to the agreement, and whereby Oracle is authorized to conduct security reviews of TikTok’s US source code. ByteDance has repeatedly stressed that its data storage is localized, with US user data managed by Oracle, and that there is no evidence of security risks, though this defense has gained little traction among US politicians.

On March 30, Han Shangyou, president of TikTok’s parent Douyin, announced the launch of the “Douyin Safety and Trust Center” website. The site publicly disclosed the principles behind Douyin’s recommendation algorithm and explained how it predicts user behavior.

Why it matters: Since gaining attention in 2016, Douyin’s unique content recommendation algorithm has been seen as a key factor in its success. However, it has also raised concerns about creating filter bubbles and biases. Over the past nine years, China’s online environment has undergone significant changes, and as one of the country’s most popular social media platforms, Douyin has played a central role in shaping this digital landscape. With the public disclosure of its algorithm, Douyin aims to address the issues it has helped create.

Details: Douyin introduced two models: the Wide&Deep model and the Two-Tower Retrieval Model.

• The Wide&Deep model, as its name suggests, combines a single-layer Wide component with a multi-layer Deep component. The Wide component focuses on strengthening the model’s “memorization” ability, which refers to its capacity to learn directly from the co-occurrence frequencies of items or features in historical data. In contrast, the Deep component enhances the model’s “generalization” ability, allowing it to identify correlations between features and uncover links between rare or even unseen features and the final label.
• Two-Tower Retrieval Model is used to recommend content to users by converting both user and content features into numbers, like “0” for a cat video and “1” for a dog video. These numbers are fed into two separate deep learning models – one for users and one for content – creating unique “digital fingerprints” for both. The model then compares the user’s fingerprint with those of all available videos, measuring how close they are. The closer the fingerprints, the more likely the video is to be recommended. This approach helps the system match users with videos they might like without needing to understand the actual content, just the numbers.

The website also outlined the review process for governance on the Douyin platform, detailing how it handles challenges related to rumors, online harassment, and other violations.

Context: The actions follow a three-month government campaign, launched in late November, aimed at addressing common algorithmic issues on online platforms, such as filter bubbles, where users are exposed only to content that aligns with their views, and discriminatory pricing practices targeting different demographics. The campaign was led by the Communist Party’s cyberspace affairs commission, the Ministry of Industry and Information Technology, and other relevant government agencies.In January, Douyin Group announced plans to introduce ten measures aimed at increasing transparency on the platform, including efforts to make its algorithms and governance processes more open. On Jan. 8, Li Liang, vice president of Douyin, rejected the idea that the company’s content recommendation algorithms contribute to the creation of filter bubbles. He noted that ByteDance’s algorithms have come under global scrutiny, with specific concerns about filter bubbles and restricted content exposure.

Since DeepSeek-R1 entered public view, its generated content has frequently trended on Chinese social media. Topics such as “#DeepSeek Comments on Jobs AI Cannot Replace” and “#DeepSeek Recommends China’s Most Livable Cities” have sparked widespread discussion. Meanwhile, organizations throughout Chinese society have rushed to embrace the new technologies that DeepSeek has helped spotlight. Shenzhen’s Futian District recently introduced 70 “AI digital employees” developed using DeepSeek, demonstrating AI’s increasing implementation and broad application.

Yet as society embraces this new wave of innovation, a troubling pattern is emerging: AI-generated misinformation is flooding public networks. One viral case involved a Weibo user who discovered that Tiger Brokers, a Beijing-based fintech firm, had integrated DeepSeek for financial analysis. Out of curiosity, the user tested it on Alibaba, prompting the AI to analyze how its valuation logic shifted from e-commerce to a tech company. One of the AI’s reasoning points was that Alibaba’s domestic and international e-commerce businesses contributed 55% of its revenue, peaking at 80%, while its cloud intelligence group’s revenue share exceeded 20%. Surprised by these figures, the user cross-checked them against Alibaba’s financial reports, only to find that the AI had fabricated the data.

While DeepSeek-R1, a reasoning-focused model, performs similarly to conventional models on basic tasks, its approach actually differs significantly. Standard models rely on pattern matching for quick translations or summaries. Reasoning models, however, activate multi-step logic chains even for simple queries — a process that enhances explainability but risks “overthinking.” 

Testing shows that these extended reasoning chains increase the risks of hallucination. The Vectara HHEM benchmark reveals DeepSeek-R1’s hallucination rate is 14.3%, nearly four times higher than DeepSeek-V3’s 3.9%. This disparity likely stems from R1’s training framework, which prioritizes user-pleasing outputs through reward-punishment mechanisms, sometimes fabricating content to confirm user biases.  

AI systems don’t store facts — they predict plausible text sequences. Their core function isn’t verifying the truth but generating statistically likely continuations. In creative contexts, this means freely blending historical records with fabricated narratives to maintain story coherence. Such mechanisms inherently risk factual distortion. As AI-generated content floods online spaces, a dangerous feedback loop emerges: synthetic outputs are increasingly scraped back into training datasets. This erodes the boundary between authentic and artificial information, challenging public discernment. High-engagement domains – politics, history, culture, entertainment – face particular contamination risks.

Addressing this crisis demands accountability. AI developers must implement safeguards such as digital watermarks, while content creators should clearly label unverified AI outputs. Otherwise, the proliferation of synthetic misinformation, amplified by AI’s industrial-scale efficiency, will persistently test society’s ability to separate fact from algorithmic fiction.

PDD, the parent company of e-commerce platform Temu, released its unaudited fourth-quarter financial results on Thursday, reporting total revenue of RMB 110.61 billion ($15.3 billion), up 24% from RMB 88.9 billion ($12.27 billion) in the same quarter of 2023. Despite the growth, the company missed market estimates.

Why it matters: PDD’s slowing growth highlights the challenges of sustaining rapid expansion in a highly competitive e-commerce market. The company also faces increasing regulatory uncertainties overseas, with potential policy shifts that could affect Temu’s global operations.

Details: PDD Chairman and Co-CEO Chen Lei addressed concerns over policy risks, such as tariffs, that Temu faces overseas. During the earnings call, he noted that the external environment is changing at an accelerated pace, competition remains intense, and macro policies related to Temu’s business could also shift.

• PDD’s revenue from online marketing services and other streams in Q4 was RMB 57.01 billion ($7.87 billion), up 17% year over year. However, this growth rate slowed compared with the previous quarter, when online marketing and other service revenue increased by 24%.
• Revenue from transaction services reached RMB 53.6 billion ($7.39 billion), up 33% from a year ago, but this was a significant slowdown from the 72% year-over-year growth recorded in the prior quarter.
• These figures indicate that while PDD maintained growth, the company’s advertising and commission revenue saw a deceleration even during the traditional peak season for e-commerce sales.
• PDD’s total cost of revenue for Q4 was RMB 47.8 billion ($6.59 billion), up 36% year over year, mainly due to higher fulfillment and payment processing fees.
• Total operating expenses in Q4 rose 19% year over year to RMB 37.22 billion ($5.14 billion), driven by increased sales and marketing expenses.
• So far this year, US-listed PDD’s stock has risen 29.74%. As of market close on March 19 (Eastern Time), the company’s shares were trading at $125.92 per share.

Context: In February, PDD’s e-commerce platform Temu began preparations to enter the South Korean market and build a logistics network.

A Weibo user sparked online outrage after allegedly doxing multiple Chinese netizens who had criticized her comments about K-pop star Jang Won-young. The user reportedly obtained personal information about other internet users, including details of a pregnant woman, through illegal data scraping and incited online harassment against them. Internet sleuths later uncovered the user’s identity as the 13-year-old daughter of Baidu Vice President Xie Guangjun by tracing an employment certificate belonging to her father that she had posted online.

Why it matters: Baidu’s official response showed a troubling reality: the severity of data leaks has exceeded many people’s expectations. Unlike typical data breaches, this case involved a minor, raising concerns about the increasing risks of cyberbullying and information security lapses among younger internet users.

Details: On March 19, Baidu issued an official statement on its WeChat account, addressing the controversy surrounding Xie’s daughter and details of the information leak, showing its attitude towards stealing and exposing personal data.

•  “Doxing” (known in Chinese as kaǐhé or “unboxing“) means maliciously publishing  IDs, addresses and social media accounts.
• Baidu’s investigation claimed the minor obtained information from overseas “social engineering databases” – illegal compilations of personal data – contradicting online rumors that she accessed Baidu’s systems.
• Previously, a screenshot circulated online claimed that the individual admitted to receiving a database from her Baidu executive parent. The company has denied this allegation.
• One of the victims in the incident filed a police report on March 18, rejecting Xie’s apology via WeChat Moments and demanding a public apology. At least two victims have reported the case to authorities.

Context: Xie Guangjun is a vice president at Baidu’s Intelligent Cloud Business Group (ACG). According to Baidu’s promotion records, he was promoted to this position in the company’s computing network division in 2021.

The recently formalized Memorandum of Understanding (MoU) between Singapore’s major tourism stakeholders and Weixin Pay marks a milestone in cross-border digital tourism development. The partnership brings together Sentosa Development Corporation, CapitaLand, and Weixin Pay to create a more seamless experience for Chinese travelers visiting Singapore. The collaboration builds on Tencent’s strategic interest in the region.

According to Etienne Ng, Regional Director of Southeast Asia at Weixin Pay, Tencent, the effort began roughly two years ago, around 2023, with a partnership between Weixin Pay and the Singapore Tourism Board as China began reopening after the COVID-19 pandemic. China was Singapore’s largest source market for international visitors before the pandemic. During the pandemic, Weixin Pay and Singapore Tourism Board continued their collaboration, testing various initiatives to prepare for the return of Chinese tourists.

In September 2024, Weixin Pay hosted its annual Weixin Open Class event in Singapore, marking the first time the event was held outside China. The event typically takes place in Guangzhou, where Weixin is headquartered. At the event, CapitalLand representatives discussed their implementation of Weixin Pay ecosystem solutions in Singapore, which later influenced Sentosa Development Corporation to explore similar digital options.

The formal signing of the MoUs came after six months of collaboration following the Weixin Open Class event, during which the organizations identified integration opportunities to improve visitor experiences.

Sentosa Development Corporation identified limited shopping options for tourists as a challenge. Despite offering numerous attractions and entertainment venues, visitor feedback highlighted a lack of shopping opportunities.

Conversely, CapitaLand Mall, a major shopping destination in Singapore, offers extensive retail options but lacks experiential attractions. The partnership through the Weixin platform aims to create a more comprehensive tourism ecosystem, addressing these complementary needs.

Traditionally, both Sentosa and CapitaLand worked independently, primarily through travel agents and business-to-business relationships rather than direct business-to-consumer engagement. The partnership enables the entities to combine resources to deliver services to visitors, while potentially reducing redundant marketing efforts.

Correction: An earlier version misstated the Singapore Tourism Board and Changi Airport Group were part of a Wexin Pay MoU partnership.

On March 6, China’s AI agent Manus trended on Chinese social media platform Weibo. According to its team, Manus is an autonomous AI agent designed to handle complex tasks beyond traditional AI assistants by delivering complete task results. A four-minute demo showcased its capabilities, including screening resumes like a human intern. Manus achieved state-of-the-art (SOTA) results in GAIA benchmark tests. This may be the first AI agent product to signal the beginning of China’s AI agent era.

Why it matters: Manus’ rise reflects growing interest in AI agents capable of independently executing complex tasks, a shift from traditional AI assistants that primarily provide suggestions or answers.

Details: 

• Manus, developed by a team led by entrepreneur Xiao Hong, has gained significant attention on Chinese social media. Unlike conventional AI assistants, it autonomously completes tasks rather than merely offering recommendations.
• The product achieved a state-of-the-art (SOTA) performance across all three difficulty levels of the GAIA benchmark, which evaluates AI assistants’ ability to solve real-world problems.
• Manus remains in beta testing, with users required to apply for access. Reports indicate high demand, with invite codes being resold on secondary markets for up to RMB 100,000 ($13,900).
• The company has denied any official paid channels for obtaining invite codes.

Context: China’s AI sector is experiencing  intensified competition in AI agent development, with companies seeking to push beyond traditional chatbot functionalities. Manus’ emergence follows the rise of DeepSeek, another domestic AI model that recently gained significant traction. Globally, OpenAI’s announcement of a $20,000 monthly subscription for an enterprise-grade AI agent, signals growing commercial interest in autonomous AI.

• Xiao Hong, the founder behind Manus, previously launched AI assistant Monica, which integrates multiple large language models (LLMs) and initially gained popularity in overseas markets. A Chinese version of Monica, supporting deep reasoning and real-time search capabilities, entered beta testing in February.

On February 28, three Freshippo X membership stores in Shanghai announced that they would cease operations from April 1, while still supporting online orders and delivery. With this closure, only five Freshippo X membership stores remain in operation nationwide. Freshippo stated that the store closures represent a proactive business adjustment.

Why it matters: Alibaba’s Freshippo is shifting away from its warehouse-style membership store model, marking a retreat from an ambitious attempt to challenge Sam’s Club and Costco in China. While Freshippo X downsizes, the company is honing in on its core businesses – Freshippo Fresh and Freshippo Neighborhood Business. The move also underscores the difficulties of competing in China’s membership-based wholesale sector. Due to transportation habits and lifestyle choices, Chinese consumers tend to favor smaller packaged goods that are easier to carry and consume. 

Details: The contraction of X Membership Store is also a reflection of Freshippo’s years of development. Over the past eight years, Freshippo has experimented with more than ten different formats, including Freshippo Fresh, Freshippo F2, Freshippo MINI, Freshippo Li, Freshippo Station, Freshippo Market, Freshippo Pick’n Go, Freshippo X Membership Store, Freshippo Neighborhood, and Freshippo Fresh Outlet.

• In 2024, Freshippo achieved double-digit growth after nine consecutive months of overall profitability, expanding into 21 cities and opening 72 Fresh stores.
• Consumers’ recognition of X Membership Club is significantly lower than that of its competitors, Sam’s Club and Costco. Sam’s Club’s core competitive advantage lies in its global supply chain and exclusive products, with 30% of its offerings under its private label, Member’s Mark, which has a supply chain deeply involved in the production process. In contrast, Freshippo’s early X Membership Club had only 15% exclusive products, with most items private-label goods priced just RMB 3–5 cheaper than non-member options.

Context: In recent months, Alibaba has sold off Intime Department Store and Sun Art Retail to focus on its core business. This has led many to believe that Alibaba’s new retail business is in trouble. However, since February, Jack Ma has repeatedly visited Freshippo stores, from Changsha to Shanghai, showing his support. To some extent, this may reflect his endorsement of the company’s new strategy.

Meituan, China’s local services platform, is accelerating its global expansion with a renewed focus on grocery retail, international markets, and artificial intelligence, CEO Wang Xing announced in a recent internal meeting. The strategic shift comes as the company marks its 15th anniversary, aiming to diversify beyond its core food delivery and group-buying businesses.

Why it matters: Meituan’s current business landscape is more complex than ever. As consumers tighten their budgets, increasing numbers turn to  gig work as delivery riders, and restaurant owners struggle to stay afloat, Meituan continues to report record profits. This has intensified public scrutiny on how the platform balances growth with social responsibility. Wang Xing’s move towards grocery retail, international expansion, and technology investment comes as questions around worker welfare – exemplified by the recent debate over delivery riders’ social security – are at the forefront. How Meituan navigates these tensions will shape its future and influence broader discussions on platform economy governance in China.

Details: 

• The company’s push into grocery retail aligns with its long-term mission to “help people eat better and live better,” encompassing both self-operated fresh food delivery and marketplace-based retail services.
• Among the three priorities Wang Xing has set, international expansion is progressing the fastest. Meituan’s overseas food delivery platform, Keeta, is rapidly expanding in Saudi Arabia. After reaching the country’s nine largest cities and nearly half its population, Keeta is now considering entry into Kuwait and the UAE. To solidify its presence in the Middle East, Meituan has outlined a three-year plan – aiming to expand Keeta across all six Gulf Cooperation Council (GCC) countries, including Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain, leveraging the Saudi market experience.
• AI remains a critical focus as Meituan seeks to leverage artificial intelligence to build an integrated and efficient local commerce ecosystem.

Context: Meituan, China’s leading on-demand service platform, has seen rapid transformation over the past decade. Over the years, it has maintained its position as a dominant player in China’s hyper-competitive local services market, despite pressure from rivals like Alibaba, JD.com, and Douyin.

• As Meituan enters its second decade, the company is shifting its focus beyond domestic competition. With food delivery penetration in China already high, international expansion presents a new growth opportunity. The Middle East, particularly Saudi Arabia, has emerged as a strategic market due to its young, tech-savvy population and strong consumer spending power. By scaling Keeta up in the region, Meituan aims to establish a global presence.
• At the same time, Meituan’s increased profitability has brought new challenges. In 2023, the company reported record earnings, but this has coincided with growing concerns over its labor practices and platform economics. The ongoing debate over social security for delivery riders reflects a broader societal expectation for platforms like Meituan to take on more responsibility in worker welfare. As Meituan pursues growth in new markets, how it balances profitability, expansion, and social responsibility will shape its next decade.

Mixue Group, a bubble tea maker, shares surged over 47% at their March 3, 2025 Hong Kong debut, peaking at HKD 287 ($36.74) per share, bringing the company close to a $140.8 billion market valuation.

Why it matters: Mixue’s explosive debut underscores strong investor appetite for China’s budget-friendly beverage market, despite general economic uncertainties. The listing also highlights how cost-conscious consumer trends continue to shape China’s food and beverage industry, favoring a range of brands with mass-market appeal.

Details: In its 28-year history, Mixue secured only one funding round prior to its IPO – a December 2020 pre-IPO round with more than $290 million investment from Hillhouse Capital, Meituan Long-Z Investments and CPE.

• Mixue shares surged as much as 47% in Hong Kong debut
• Individual investors sought HKD 1.8 trillion ($230.8 billion) in margin financing for equity purchases.
• Mixue‘s rapid revenue growth stems from its competitively priced products, which have resonated strongly with budget-conscious consumers. The company’s core offerings typically range from RMB 2-8 ($0.28 to $1.11), significantly undercutting rival brands in China’s crowded soft drinks market.

Context: In recent years, significant capital has flooded China’s freshly made beverage sector, with multiple companies going public or planning listings. Nayuki, ChaPanda, and Guming have already listed shares, while Hey Tea, Auntea Jenny, Chagee, Chayan Yuese, and Tianlala are among those preparing IPOs.

• Mixue‘s path to listing proved particularly challenging. After failed attempts to list on China’s A-share market in 2022 and Hong Kong’s stock exchange in 2024, the bubble tea giant finally succeeded this month with its Hong Kong debut.
• As of December 2024, Mixue operates over 46,000 stores globally – surpassing Starbucks to become the world’s largest freshly prepared drinks chain by store count.

The company’s Hong Kong listing broke records previously held by short-video platform Kuaishou, which raised HKD 1.5 trillion ($192.3 billion) during its 2021 IPO. Kuaishou shares have since fallen from their IPO price of HKD 115 ($14.74) to HKD 55 ($7.05) as of March 2025.

In the 17 years since China’s first online food order was placed in 2008, migrant delivery riders have become vital to sustaining urban life. This algorithm-driven workforce, now dubbed “new blue-collar workers,” has grown to more than 10 million nationwide by January 2025—surpassing Switzerland’s population. While many veteran riders have families in cities they serve, their social security status remains precarious. 

A breakthrough came this February. On Feb. 19, JD.com became the first major platform to mandate the “Five Social Insurance and One Housing Fund” (五险一金), a comprehensive social security program covering pension, medical, unemployment, work injury, and maternity insurance, as well as housing funds for full-time riders starting March 1, alongside accident and medical coverage for part-timers. Rivals quickly followed: Meituan pledged full benefits for stable riders by Q2 2025, while Ele.me expanded pilot programs.

For family providers like 36-year-old Peng Ding (pseudonym), the benefits of insurance are undeniable. “One of my colleagues was involved in a traffic accident and broke his leg  last summer. He has been resting at home ever since,” he said. Yet there are younger riders who are questioning it. During a Shanghai legislative forum on March 25, 2024, a delivery rider in his 20s expressed his reluctance to pay for social security. He explained that paying RMB 700 ($96) monthly for insurance means delivering 100 extra orders. I’d rather send that money home for my daughter’s toys.” Like many rural migrants, he relies on the New Rural Cooperative Medical Scheme (新农合) in his hometown.

The long wait for protections​

At 3 p.m., after the lunch rush, a group of Meituan riders from Anhui province gather outside a Heytea shop in Shanghai’s Caohejing district. Having delivered for over a decade — some predating the rise of Meituan and Ele.me — they unanimously endorse social insurance. “The colleague who broke his leg is still at home with no resolution from Meituan,” said Peng, 36. Currently, platforms largely rely on commercial accident insurance — Meituan deducts 180 yuan monthly per rider, while Ele.me charges 3 yuan daily. The dangers of the job are well-documented. As highlighted in a 2020 investigative report by Renwu (The People), titled “Delivery Riders, Trapped in the System,” traffic police in Guangzhou alone penalized nearly 2,000 delivery-related violations in September 2018. The hashtag ​#DeliveryRiders, One of the Most Dangerous Jobs# has repeatedly trended on Chinese social platform Weibo, underscoring the perilous reality of the profession. Yet for riders like Jia Hui, the platforms’ 3-yuan daily accident insurance — roughly 40 cents — is a drop in the bucket. “Even if you file a claim, the best you’d get is 200 yuan ($28) per day for five days of absence from work,” Jia said. “But what if you’re bedridden for months? No compensation, no income. We’ve seen it happen.”

Data shows 77% of Meituan and 75% of Ele.me riders hail from rural counties. For migrant families, social insurance is a lifeline to urban integration. “Without Shanghai social security records, your child can’t enroll in local schools,” Jia explained. Many of them leave their children with grandparents back home. 

Healthcare access is equally fraught: Rural insurance reimburses less in cities, forcing riders to haul medical bills to hometowns or avoid hospitals altogether. “A simple blood test costs 500 yuan. We can’t afford to get sick,” Jia said.

When gig work becomes a lifeline​

To many, food delivery seems like a transient work. Yet for millions of riders across China, the platforms have become an inescapable anchor — whether by choice or necessity. The burden of childcare, elderly medical bills, social obligations, and other familial responsibilities glues them to their apps. “Single riders can afford a day off, but breadwinners can’t risk skipping work,” said Jia. “Unlike salaried jobs where you still get a base pay if you rest, every day we miss means less cash for next month’s rent or groceries. That’s why most of us never stop.”

The post-pandemic years have deepened this dependency. Before COVID-19, riders could earn RMB 300 ($ 41) daily—roughly RMB 10,000 ($ 1,380) monthly — with relative ease. Now, hitting that same daily target demands marathon 12-hour shifts. Plummeting wages amplify the pressure: Taking time off feels financially reckless, while switching careers appears prohibitively costly.

Riders often hailing from rural counties and small towns—typically enter the gig economy with limited formal education and scant technical or cross-industry experience. While the physically demanding work offers minimal job requirements and quick employment access, transitioning to alternative careers remains prohibitively difficult for many, as retraining and adapting to new professional environments present steep personal and financial challenges.

A 2022 Ele.me report shows that 43% of delivery riders were doing food-delivering jobs while scouting other urban livelihood options, whereas nearly a third see no exit from the industry. As food delivery evolves from a stopgap job into a permanent occupation for millions, the meaning of a comprehensive social security system is self-evident.

Hope and Skepticism

Several veteran riders I interviewed, each with years of experience across multiple platforms, recounted cycling through now-defunct services like Baidu takeaway and Gearbox, an early player. While new platforms lure riders with initial subsidies, most riders agreed that “they all eventually prioritize profits and become indistinguishable,” as Cao Lijun (pseudonym), a Meituan rider, put it.

Cao described arbitrary pay deductions during his time at Ele.me: orders marked late and penalized despite arriving on time, a discrepancy riders later traced to mismatched delivery clocks on customer and rider apps. He also noted how subcontractors—middlemen between platforms and workers—often skim profits layer by layer.

When asked about JD.com’s recent entry into food delivery, riders called it a positive shift. Many praised JD’s reputation for providing locally Five Social Insurance and One Housing Fund, contrasting it with rivals that enroll workers in cheaper, out-of-region insurance plans which are often unusable locally. After a few riders showed their concerns that their salaries would drop due to social security  costs, JD.com clarified immediately that it would cover all contributions—including employees’ share—for new hires.

“Many have already jumped ship from Meituan to JD,” said Cao, though he worries about the sustainability of JD’s current offer: “What if they cover all social insurance costs now, but make us pay more later?”

The progress on riders’ social security could trigger broader societal shifts. When the first wave of insured riders begins retiring in the coming decade, the real-world impact of these policies will come into focus. Simultaneously, platforms’ evolving approach—from viewing workers as expendable “traffic” to valuing them as human capital—may recalibrate the entire gig economy’s priorities.

Cao Dapeng, former head of PopAI at 01.AI, has been named mobile product leader for ByteDance’s AI-generated video platform Jimeng, Chinese media outlet LatePost reported Thursday. He will report to CapCut head Zhang Nan.

Why it matters: ByteDance aims to build an AI-driven version of Douyin (the Chinese version of TikTok) within the next decade, making Jimeng’s development a key part of its long-term strategy to dominate the AI content creation landscape.

Details: Before joining 01. AI, Cao Dapeng had worked at Feishu (Lark), a ByteDance subsidiary, as a product head, a position he took up in 2021. ByteDance is known for hiring individuals with entrepreneurial backgrounds, and Cao fits this profile. Between 2013 and 2017, he co-founded the image-based social community app Nice.

• ByteDance’s Feishu, a workplace collaboration app similar to Slack or Teams, has already integrated DeepSeek.

Context: Jimeng, which launched under CapCut in May 2024, offers AI image generation, smart canvas, and video creation tools. 

• Jimeng’s user base has grown rapidly, particularly following the explosive popularity of DeepSeek. The demand overflow from DeepSeek has introduced new interactive use cases, such as generating detailed video scripts via DeepSeek and then using Jimeng for video creation. According to third-party analytics firm QuestMobile, Jimeng’s weekly active users surged from around 760,000 in late December 2024 to nearly 2 million by mid-February 2025—almost a threefold increase in just one and a half months.

On Feb. 18, Baidu released its fourth-quarter earnings report, showing a 2% year-over-year decline in overall revenue, totaling RMB 34.1 billion ($4.77 billion). According to the report, the drop comes amid challenges in online marketing revenue, which totaled RMB17.9 billion ($2.46 billion), decreasing 7% year over year. However, the company’s AI cloud business stood out, growing 26%. This growth underscores the increasing significance of AI-driven services as Baidu strategically shifts toward an open-source model with its ERNIE large language model. Baidu has stated that DeepSeek’s success has inspired the open source move.

Why it matters: DeepSeek’s launch in early 2025 is poised to revolutionize the AI landscape, offering high performance at a significantly lower cost. This evolution extends beyond simple price wars, paving the way for AI to move from specialized tools to widespread applications. Baidu has become one of the biggest beneficiaries of this transformation, as it provides AI services to over 60% of state-owned enterprises and numerous private firms, with key partnerships established with companies like Xiaomi and Zeekr.

Details:

• ERNIE handled about 1.65 billion API calls daily in Dec. 2024, with external API calls up 178% quarter-over-quarter, showing particularly strong momentum.
• Baidu Wenku, a one-stop platform for content access and creation, saw its monthly active users reach 94 million in Dec. 2024, a 216% increase year-over-year and an 83% increase quarter-over-quarter.
• In recent years, Baidu Wenku has introduced a range of AI features, including smart slides generation, AI-powered search, and intelligent audio picture books. These features rely on the computing power and data storage support provided by Baidu AI Cloud

Context: Baidu’s advancements in AI technology, particularly with the introduction ofDeepSeek, are part of a broader trend in the tech industry where large language models are becoming increasingly integral to business operations. As companies seek to leverage AI for enhanced productivity and efficiency, the demand for robust cloud services that can support these technologies has surged.

• On Feb. 14, Baidu announced that the ERNIE 4.5 model series will be released in the coming months, with an official open-source launch set for June 30. Just a day earlier, on Feb. 13, Baidu announced that ERNIE Bot will be free starting April 1.
• On Feb. 26, Baidu announced plans to fully integrate DeepSeek and Large Model ERNIE’s deep search capabilities to enhance user experience, and offer the service for free.

Let’s face it: we’re all a little obsessed with AI these days. Whether it is asking ChatGPT to write a haiku about your cat or using DeepSeek to figure out why your Wi-Fi keeps dropping, AI apps have become nothing less than our digital sidekicks. All this, before  January 2025, when the AI app race hit a new level of drama. We’ve made a few charts to illustrate the explosive growth, fierce competition, and unprecedented adoption of these platforms. Spoiler alert: it’s not just about who’s winning, but about how fast everything is changing.

Firstly, let’s dive into how quickly these platforms are capturing users. The time taken to reach 100 million users chart is a stark reminder of how fast things are changing in the digital world. Among AI apps, DeepSeek and ChatGPT stand out with their remarkable speed. DeepSeek, at just 14 days, completely shattered expectations, becoming one of the fastest-growing platforms in history. It’s clear that users are hungry for AI solutions, and DeepSeek has managed to tap into that demand with an intensity not seen before. ChatGPT, while still incredibly fast, took 61 days to reach 100 million users. Rapid growth for both apps signifies more than just popularity—it’s a cultural shift. AI, once a niche technology, is becoming integral to daily life, and these apps are leading the change. The race for user adoption is not just about functionality anymore; it is about how quickly companies can deliver a product that captures the public’s imagination and meets a growing need. When you look at platforms like TikTok (274 days) and WeChat (426 days), their journey to 100 million users seems slow in comparison. The fact that AI apps have achieved such rapid adoption reflects a broader trend: innovation is accelerating, and user expectations are shifting faster than ever. For AI apps, this means the window for success is shorter, and the stakes are higher than ever before.

Now, take a look at the daily active users in this chart, and things get even more interesting. The numbers here tell a story of how the shift in the AI landscape unfolded. Up until January 20, the user base for both platforms — ChatGPT and DeepSeek — was relatively stable. But then, on January 20, DeepSeek unveiled its R1 model, a major update that was designed to rival the performance of ChatGPT-o1. Almost immediately, the tech world took notice. By January 26, media outlets were buzzing with coverage about DeepSeek’s R1 model, piquing interest and driving user engagement. And on January 28, the real game-changer occurred: DeepSeek surged to the top of both the Chinese and US app download charts, capturing everyone’s attention and emerging as ChatGPT’s most formidable challenger.

The rapid rise is not just a victory for DeepSeek, but also a symbol of a broader shift in the AI app landscape. What stands out immediately is the rise of Chinese AI companies: four of the top 10 apps are now Chinese — in stark contrast to just one year ago, when the AI app space was almost exclusively the domain of US companies. Back then, Chinese AI apps were barely on the radar internationally. Now, apps like DeepSeek, Doubao, and CapCut are making their presence felt on a global scale. 

As of February 2025, the battle among AI companies appears to be led by ChatGPT and DeepSeek, but everything could change next minute. Whether you’re team ChatGPT or team DeepSeek, one thing’s for sure: the AI app wars are just getting started. And if you’re not paying attention? Well, you might just miss the next big thing. After all, in the world of AI, today’s underdog could be tomorrow’s champion.

On Feb. 11, 2025, JD.com officially announced the launch of a new food delivery service, recruiting “quality dine-in restaurants” to join its platform with a significant incentive: zero commission fees for all merchants who sign up before May 1. JD’s bold entry into the highly competitive food delivery space is a direct challenge to industry leaders such as Meituan.

Why it matters: JD’s entry into the food delivery sector could reshape the competitive dynamics of the market, with the firm’s strong logistics infrastructure and differentiated approach of targeting “quality” merchants. By focusing on “quality dine-in restaurants” rather than competing in the budget segment, JD appears to be aiming to avoid direct price wars with China’s established food delivery giants Meituan and Ele.me, while still offering attractive terms to merchants burdened by high commissions. For consumers, this expanded choice might lead to better service and quality options.

Details: With Meituan and Ele.me already having established deep market penetration and extensive supply chains, JD’s entry into food delivery is an attempt to disrupt the status quo. Although JD is focusing on differentiating itself through its quality merchant strategy, it will need to ensure that its service delivery matches the high expectations set by Meituan and Ele.me’s well-oiled operations.

• JD has specifically limited its merchant recruitment to “high-quality” restaurants, ensuring these establishments meet strict criteria. According to 21st Century Business Herald, JD plans to conduct comprehensive vetting, including photo verification of store locations and on-site visits by sales representatives to ensure the authenticity of its partners. 
• By offering zero commission fees for the first year, JD is hoping to entice merchants who are looking to reduce the burden of commissions that typically eat into their margins on platforms like Meituan and Ele.me.
• Compared to JD.com’s offer of zero commission for the entire first year, Meituan’s merchant commission rate currently ranges from 6% to 8%, with delivery service fees incurred when merchants choose Meituan for delivery.
• JD’s food delivery service is an extension of its broader push into instant retail. The company has been progressively expanding its reach in this space, with services such as JD Daojia (JD Home) and JD Seconds aiming to offer instant deliveries in various sectors, including groceries and fast food. This new food delivery service is expected to integrate seamlessly with JD’s existing logistics network, which has been a key advantage for the company in its push for higher operational efficiency.
• JD’s logistics advantage — particularly its ability to leverage the existing JD Logistics infrastructure — could help reduce operational costs and improve delivery efficiency. Yet, as demonstrated by the challenges faced by other e-commerce players such as Douyin, building a scalable delivery network is not an easy task. JD’s ability to recruit a sufficient number of riders and integrate them into its existing logistics framework will be key to its success.

Context: JD’s aggressive foray into food delivery is part of a broader strategy to bolster its position in China’s highly lucrative local services market, an area where Meituan has long reigned supreme. Meituan, with its extensive rider network and mature infrastructure, holds a dominant position in the market, which includes everything from food delivery to ride-hailing services.

In the past few weeks, we have witnessed a surge of third-party platforms integrating DeepSeek, a powerful new AI model that is  swiftly reshaping the landscape of artificial intelligence in China. From tech giants like Huawei and Tencent to emerging chipmakers and even small businesses, the number of players jumping on the DeepSeek bandwagon has skyrocketed. But what does this rapid growth mean for Chinese AI? Is this the moment when AI in China, particularly Chinese-language AI, finally steps into the spotlight?

Why It Matters: DeepSeek is becoming a full-fledged ecosystem, similar to Android or iOS, but with a distinctly Chinese twist. DeepSeek’s adoption has spread so rapidly that it is no longer just about cutting-edge AI — it is about an entirely new way of doing business. From cloud service providers offering zero-code integration to financial institutions deploying AI in their operations, DeepSeek is pushing AI closer to the mainstream.

Details: In just a matter of weeks, DeepSeek has sparked a chain reaction across various industries. Leading Chinese tech companies like Huawei, Alibaba, and Tencent have all jumped in, alongside smaller but equally ambitious players in the AI and chip sectors. What makes DeepSeek’s rise so significant is its open-source nature and its ability to lower the barriers to entry for all kinds of companies — from cloud service providers and chip manufacturers to app developers.

• Since DeepSeek’s introduction, it has been clear that we are witnessing something far more profound than just a new AI model. It is an entire ecosystem being built, with DeepSeek at the center. Unlike previous models that mainly served researchers or large-scale enterprises, DeepSeek’s integration is widespread and touches various sectors, from car industry to finance and e-commerce. Even seemingly unrelated industries like healthcare and education.
• One notable shift has been the arrival of cloud services companies, which have seized the opportunity created by DeepSeek’s rise. As DeepSeek gained traction, the cloud service industry experienced a price war, with major players like Tencent Cloud, Alibaba Cloud, and Baidu Cloud slashing their prices in a race to secure the most customers. This competition, fueled by the demand for AI integration, has turned cloud services from a niche product to something accessible to every business—big or small.

Context: DeepSeek’s R1 release has disrupted the global AI industry with its open-source nature and low integration cost. Despite facing cyberattacks on January 28 and being blocked by several governments, DeepSeek has continued to gain momentum.

• As Chinese cloud platforms increasingly integrate DeepSeek AI, industry experts anticipate heightened competition among cloud providers. This shift is expected to drive AI investments from Baidu, Alibaba, Huawei, and Tencent, offering cost-effective AI solutions for businesses and developers.

After a four-and-a-half-year ban, Shein, the Chinese fast-fashion giant, is making a comeback in India — a market it was abruptly shut out of in 2020 alongside more than 200 other Chinese apps. It is uncertain what has made the relaunch possible: a thawing of digital relations, or simply the passing of time in a digitally fractured and fast paced geopolitical environment?

Why it matters: Highlighting the value of the Indian market and in order to re-enter the country, Shein has committed to providing only the technical support needed for its operations in India, forgoing access to any subsequent market data gained from doing business there. Meanwhile, India is striving to build its manufacturing and R&D capabilities in textiles and apparel by establishing large-scale textile parks, offering production incentives for man-made fiber (MMF) apparel, MMF fabrics, and technical textile products, and providing export-oriented support. Shein’s re-entry into the country could further invigorate India’s textile industry.

Details: According to the Times of India, Shein’s initial re-entry into the Indian market will start with a backend test launch on Reliance’s fashion website, Ajio.com, focusing on casual western wear and other items. While the rollout could eventually expand to other Reliance platforms, no specific timeline has been announced. The move positions Shein, now based in Singapore, to compete with India’s established players like Tata’s Zudio and Flipkart’s Myntra in the affordable fast-fashion segment.

• Reliance Retail, the largest retailer in India in terms of revenue, entered into a long-term licensing agreement with Shein, where Shein will only provide technical support for its operations in India, and Reliance will pay a licensing fee for use of the brand. Under this agreement, Reliance will assume full control of Shein’s operations in India. Over the next few years, Reliance will independently build Shein’s supply chain in India, with all products sold through Shein India produced locally. Furthermore, any data generated by Shein’s Indian operations will be stored within the country, ensuring that Shein’s headquarters will have no access to Indian market data.
• Indian Commerce Minister Piyush Goyal confirmed that Shein’s retail platform in India will be hosted on domestic infrastructure to ensure data security and prevent Shein from accessing or controlling it. The Ministry of Textiles, after consulting with other relevant departments, has also approved Reliance Retail’s proposal.

Context: India’s push for data localization has been a cornerstone of its digital regulatory framework. In 2019, India’s data localisation norms and draft e-commerce policy aimed to restrict the transfer and storage of sensitive and critical data outside the country, a move that was heavily criticized by foreign governments and global tech companies as it potentially created barriers to digital trade. Indian officials, however, argued that data localization was vital for protecting national sovereignty, securing timely law enforcement access to data, promoting local business interests, and enhancing investment in cloud storage infrastructure.

• The Indian government’s policy on Chinese software, particularly its firm stance against Chinese apps, has been a direct result of geopolitical tensions. Since the onset of political tensions with China following the 2020 border conflict, India’s ban list has expanded from an initial 59 Chinese apps, including TikTok, to 321 apps.
• In July 2021, Shein attempted to re-enter the Indian market via Amazon but failed.
• In 2022, India introduced a draft data privacy bill that has spurred a shift in global digital diplomacy and reshaped the rules of the digital economy, allowing cross-border data flows with notified countries.
• Chinese home appliance manufacturer Hisense Group is also expanding its business in India by strengthening cooperation with local companies. On December 24, 2024, Hisense partnered with the service division of Reliance Retail, Reliance resQ, to elevate after-sales service nationwide.

According to the Financial Times, ByteDance is planning to invest over $12 billion in artificial intelligence infrastructure in 2025. Sources familiar with the matter revealed that ByteDance has allocated a budget of RMB 40 billion ($5.5 billion) to purchase AI chips in China by 2025, doubling its spending from last year. Additionally, the company plans to invest approximately $6.8 billion overseas, using NVIDIA chips to enhance its foundational model training capabilities. However, ByteDance has denied these claims.

Why it matters: ByteDance’s big investment shows it is betting heavily on AI as a way to drive future growth. With TikTok facing restrictions in several countries, the company is turning to AI development and investment in its quest for new opportunities.

Details: ByteDance is expanding its AI development efforts both in China and internationally, aiming to boost its capabilities in a highly competitive market.

• According to another report from the Financial Times, ByteDance’s full-scale commitment to generative AI is being led by its founder, Zhang Yiming.
• In China, ByteDance’s AI chatbot Doubao has taken an early lead. As of December 2024, Doubao recorded 31.31 million monthly visits to rank second in AI web traffic in the country.
• ByteDance has also invested in AI and data center facilities in the Southeast Asian market: BytePlus, a ByteDance subsidiary, is planning to build a data center in Thailand by 2025. In June 2024, ByteDance announced plans to invest MYR 10 billion ($2.1 billion) to establish an AI hub in Malaysia. 
• ByteDance also competes with major Chinese tech giants such as Baidu, Alibaba, and Tencent, all of which are heavily investing in generative AI and foundational model training. 

Context: ByteDance’s ambitious AI investments come at a time when its core software business faces increasing challenges. TikTok, the company’s globally popular video-sharing app, is under regulatory scrutiny in several countries. At the same time, US-China trade tensions, particularly in the semiconductor sector, pose significant hurdles for ByteDance’s AI development. Export controls imposed by the US limit Chinese companies’ access to advanced chips like NVIDIA’s high-performance GPUs, which are essential for training large AI models. The AI sector itself is highly competitive, with major players like Baidu, Alibaba, and Tencent racing to develop advanced generative AI technologies and foundational models. These companies are not only competing on innovation but also on scale, infrastructure, and cost-effectiveness, making the AI race both a strategic and resource-intensive endeavor.

On the second day after the ban, and the day before the new president’s inauguration, TikTok became accessible to users again, having effectively been shut down for just 14 hours. The fiasco leaves one big question: will TikTok stay for good?

Why it matters: TikTok’s return to operation after its ban, though brief, raises larger questions about its future in the US. As one of the world’s most popular apps, TikTok’s business model, its relationship with global users, and its ownership structure have come under intense scrutiny. The app’s survival hinges on a combination of political maneuvering, legal challenges, and complex  dynamics between US and Chinese interests. The app has become a focal point of broader geopolitical tensions, leaving its future anything but assured.

Details: After being shut down for about 14 hours, TikTok was revived on Sunday and thanked Trump for assuring TikTok and its business partners that they would not face hefty fines for keeping the app running. The app began operating again on Monday, but TikTok was still unavailable for download in the Apple and Google app stores. Trump also stated on social media platform X that he would sign an order to “save” the software. So, what does saving TikTok entail?

• Despite Trump’s signing of an order delaying the ban for 75 days, the legality of his executive order to “save TikTok” is unclear, according to the Economic Times, since the law requiring divestiture was passed by large majorities in Congress, signed by President Joe Biden, and upheld by a unanimous Supreme Court.
• When announcing plans to sign an order to save TikTok, Trump demanded that the US hold 50% ownership. However, TikTok states that it is already 60% owned by global institutional investors, such as BlackRock, General Atlantic, and Susquehanna International Group, with an additional 20% owned by its employees, including over 7,000 US-based workers.
• In addition to TikTok, other banned software such as Lemon8 and CapCut, owned by TikTok’s parent company ByteDance, were also prohibited last Sunday. 
• According to lawyers knowledgeable about US laws, if TikTok were to remain in the country long-term, the Supreme Court would need to re-legislate, a process that would be extremely lengthy.

Context: The TikTok ban debate in the US stems from national security concerns, driven by allegations that the app could potentially allow the Chinese government to access US user data. In response, then-President Trump signed executive orders aimed at banning the app unless it was sold to a US company. At the beginning of his second term, he made an about-turn to become a proponent of keeping the app, positioning himself as the only person with the potential to put into effect meaningful change.

According to a report by the Information yesterday, TikTok plans to fully shut down its app in the United States on Sunday, Jan. 19, unless the US Supreme Court intervenes to block the ban. On the same day, Massachusetts Sen. Ed Markey announced the introduction of a bill that would extend the ban or sale deadline by 270 days, his office said in a statement. Meanwhile, the Biden administration is also reportedly exploring ways to keep TikTok available in the US on Sunday.

Why it matters: The proposed delay to the ban reflects the US’s conflicted stance on TikTok. Whether or not the ban is delayed, millions of users will be affected as policy uncertainty impacts operations, with the outcome of the latest move potentially serving as  pivotal in a case that has implications for the future development of large multinational tech companies.

Details: The ban does not require TikTok to shut down its app but instead mandates that app store operators like Apple and Google stop offering TikTok for download. It also requires TikTok’s cloud service provider, Oracle, to cease hosting its US user data. However, Tiktok owner ByteDance has a different plan in mind.

• The TikTok app will be shut down entirely rather than remain operational in already-downloaded versions, according to the Information. Users who attempt to open the app will see a pop-up message directing them to a website explaining the ban. According to a source familiar with the matter, TikTok also plans to offer users an option to download their personal data to retain their records.
• The upcoming Sunday deadline is also putting pressure on TikTok’s US employees. According to The Verge, TikTok executives are preparing for various scenarios. In an internal memo, employees were informed that the company is continuing to plan its next steps ahead of an expected court ruling. The memo stated: “ Our offices will remain open, even if this situation hasn’t been resolved before the January 19 deadline. The bill is not written in a way that impacts the entities through which you are employed, only the US user experience.”
• Not everyone wants to see TikTok become immediately inaccessible. Massachusetts Senator Ed Markey proposed a delay to the TikTok ban deadline less than a week before it was set to take effect. Meanwhile, both the Biden and Trump administrations have been reportedly exploring solutions to save TikTok, despite earlier supporting the ban.

Context: Although this is not the first time TikTok has faced a ban in a country, the prolonged standoff has triggered a ripple effect.

• The Indian government outlawed the app in June 2020, citing worries about data privacy and national security. India was the largest market for TikTok before the India ban.
• In October last year, Malaysia stated that TikTok was not fully compliant with its laws.
• In November, as the US TikTok ban sparked widespread debate, the Canadian federal government ordered TikTok to shut down its corporate offices in Toronto and Vancouver, citing national security concerns.
• Facing the loss of their digital community, TikTok users in the US are flocking to another Chinese social media platform, Xiaohongshu (also known as the RedNote), both to protest the Supreme Court’s decision and in curiosity at the platform’s unique appeal.
• As Xiaohongshu experienced a surge in international users, significant numbers of US users were encouraged to learn Mandarin – a potential outcome lawmakers behind the ban may not have anticipated.

On the evening of January 13, Chinese lifestyle sharing platform Xiaohongshu (also referred as RedNote) unexpectedly climbed to the top of the US Apple App Store’s free chart. This surge was driven by a sudden influx of American users—many of whom are self-identified as “TikTok refugees.” On January 13, the hashtag “TikTokRefugee” had only around 2,000 posts and 390,000 views. By the morning of the next day, the number of posts under the hashtag had skyrocketed to over 70,000, with total views surpassing 27 million. And the numbers continue to rise. These American users have expressed their hopes that Xiaohongshu’s platform and community will welcome them with open arms.

For Xiaohongshu, this shift to internationalization, a goal many companies take decades to achieve, appears to have happened overnight. But as with any sudden growth, the path ahead is full of uncertainty.

Not US Social Media

This phenomenon stems from the ongoing TikTok ban saga. On January 10, the US Supreme Court accelerated hearings on the proposed TikTok ban, weighing whether the short-video platform should be forced to sell or face a nationwide ban. After a session of oral arguments, a majority of the justices made it clear that national security concerns outweigh freedom of speech, and the ban was upheld.

While the ban’s outcome was widely expected, most experts speculated that American social media platforms such as Meta’s Instagram, X (formerly Twitter), or YouTube Shorts would benefit from TikTok’s potential downfall. However, to everyone’s surprise, even before the ban was enforced, the real winner wasn’t one of these platforms—it was Xiaohongshu, a Chinese app known for lifestyle sharing. While TikTok users flocking to Xiaohongshu might seem like a coincidence, it could also be a sign that the app’s community atmosphere and culture have already captured the attention of users beyond China.

Why not Douyin?

Given that TikTok is the international counterpart to China’s Douyin, why are these “TikTok refugees” choosing Xiaohongshu instead of Douyin? The answer lies in accessibility. Douyin and TikTok operate on different servers and content pools in various countries. While international users can register for Douyin using a global phone number, they can’t simply download it from the US App Store—they’d need to switch to the Chinese App Store. This process is considerably complex and inconvenient for casual users.

On the other hand, Xiaohongshu was built with international users in mind from the start. Originally focused on cross-border shopping experiences, Xiaohongshu operates a global content pool, allowing users from different regions to communicate seamlessly. This has made the app easy to download and use directly from the US App Store, without any regional barriers.

Will Xiaohongshu fully embrace globalization?

This isn’t the first time Xiaohongshu has experienced a surge of international users. In early 2024, a trend called “foreigners take advice” emerged on the platform, where international users posted pictures of themselves holding signs asking for beauty advice. Despite the initial excitement, a report by ifeng.com noted that the increase in daily active users (DAU) from this trend wasn’t significant. The reason is clear: Xiaohongshu’s core community is still largely Chinese, and the app hasn’t yet tailored its content for American audiences. The language barrier, cultural differences, and lack of content suited to US users make it challenging for them to fully integrate into the platform. Some users have turned to translation tools, but the experience isn’t optimal, and it’s unlikely to build long-term engagement.

A Xiaohongshu insider told ifeng.com, the app has always been designed with Chinese-language content in mind and hasn’t yet been adapted for international audiences. This presents a natural hurdle for expanding globally.

Additionally, since 2016, China has enforced a real-name registration policy for apps, which means that while Xiaohongshu doesn’t require users to verify their identity or use a Chinese phone number to register, future regulatory changes could affect the app’s ability to scale internationally.

Gen Z’s outlet of TikTok ban

This trend was initiated by the TikTok ban, which, when we look back, becomes an outlet for TikTok users to vent their frustration about the restrictions. While conservatism and anti-globalization sentiments may be on the rise, Gen Z users, who were raised in a globalization tendency, are making their voice heard. John Wihbey, an associate professor of media innovation and technology at Northeastern University, shared his insights on how the TikTok ban might affect the US with TechNode. While also concerning national security,  Wihbey admits TikTok’s importance for American young users, as he sees his students use the app all the time. “Just like a big catalytic event that happened when they were young and it sort of formed identity and politics,” Wihbey said, “banning TikTok could in some ways be very impactful for young people in the United States, and over time, it will have some unknowable consequences–I don’t know what that is. However, it’s possible that generation forms a more cyber libertarian worldview. It’s possible that they go in a different direction because they see these old people kind of imposing on their space in a way that they find quite damaging and irrational.”

“There’s a generational tension here that I think at the level of culture and politics (which) could be very consequential (, but it) may take decades to play out. But it strikes me as the kind of thing that people sometimes remember,” said Wihbey. “It sort of strikes at the heart of where young people are right now because TikTok is so important in terms of cultural communication, fun, entertainment, understanding, memes, virality, you know, so many of the trends of the generation pass through that app. And so to kill it off, I think would be quite profound. It is potentially profoundly damaging. I think they will perceive it as that.”

Despite tensions in Sino-American relations, Chinese companies remain highly engaged in the global tech scene, with over 1,300 exhibitors from China at CES 2025, setting a new record. TCL, with a booth covering 2,342 square meters, once again claimed the title of the largest Chinese exhibitor at the event. This reflects the importance Chinese manufacturers place on international platforms. In the world of smart glasses, Chinese companies introduced several game-changing innovations,highlighting the country’s growing presence in the wearable tech space.

Rokid: AR glasses with information overlay

One of the standout products at the show was Rokid Glasses, an AR eyewear designed to display a clear virtual interface directly onto the lenses without obstructing the wearer’s view. The glasses enable users to view information like subtitles, translations, or navigation directions overlaid on their real-world surroundings.

The Rokid Glasses are integrated with Tongyi Qianwen, an AI large model, which provides functions such as object recognition, text translation, and even real-time math problem solving. For example, the glasses can instantly calculate the calorie content of food or automatically translate spoken language during conversations.

Looking ahead, the glasses are set to support additional AI models, including ChatGPT and Gemini, allowing users to choose the one that best suits their needs.

Thunderbird: AI glasses for 4K imaging

Thunderbird presented its Thunderbird V3 AI glasses, developed in partnership with TCL. The glasses are equipped with custom optical lenses and the Falcon Imaging System, enabling them to capture 4K photos and videos in multiple formats. Despite its advanced features, the Thunderbird V3 weighs just 39 grams and offers up to 30 hours of battery life with its included charging case.

The glasses also incorporate an AI large model developed in collaboration with Alibaba’s Tongyi, designed to shorten response times and improve recognition accuracy. Additional features include AI-driven summarization, music streaming, and QR code payment capabilities.

Halliday: AI Glasses with Standard Lenses

Moody, a Chinese contact lens brand, introduced Halliday, an AI-powered pair of glasses developed with Gyges Labs. Unlike most smart glasses, Halliday is compatible with standard optical lenses, meaning users don’t need custom prescriptions. This makes the glasses suitable for both nearsighted and farsighted individuals.

Using proprietary optical technology, Halliday weighs just 35 grams and offers 12 hours of battery life on a full charge. The glasses feature touch controls on the arms and can be paired with a smart ring for additional functions. In addition to standard smart glasses features like real-time translation and navigation, Halliday includes a Proactive AI Agent to assist with everyday tasks. Halliday is set to launch on the Kickstarter crowdfunding platform at the end of January.

DPVR: Eye-Tracking VR Headset

DPVR introduced the P2 Vision VR headset, which integrates eye-tracking technology. The headset builds on the existing P2 model but is lighter and more comfortable for extended use. The P2 Vision is designed for professional applications, such as training and healthcare, where precise user interaction with VR content is needed.

DreamSmart: AI Glasses for the Hearing Impaired

DreamSmart unveiled the StarV Air2, a pair of AI-powered glasses aimed at assisting individuals with hearing impairments. These glasses transcribe spoken language and display the subtitles on the lenses, helping with communication in both personal and professional settings.

In addition to real-time transcription, the StarV Air2 offers live translation during phone calls and can generate text records of conversations, making it a useful tool for the hearing impaired in everyday situations.

The launch of ChatGPT-3.5 in December 2022 triggered a global surge in interest in large-scale AI models, with major Chinese companies such as Baidu, Alibaba, and SenseTime following suit in 2023. By June, a flurry of general-purpose and specialized models had emerged, contributing to China’s rapidly growing AI landscape. By the end of 2023, over 300 large models had been released, leading to what the media dubbed the “Hundred-Model Battle.” As of 2024, the so-called “Six Tigers”-Zhipu AI, MiniMax, Baichuan AI, Moonshot, StepFun, and 01.AI-are dominating the field, with a valuation at over $1 billion each, and four of them exceeding 20 billion RMB ($2.7 billion), according to Chinese media outlet Caixin. These companies are also bearing the weight of expectations to become China’s  version of OpenAI.

Zhipu AI

Founded in June 2019, Zhipu AI is one of the few companies in China that predates the launch of ChatGPT. As one of the first companies to explore large language models, Zhipu AI has become a major player in the sector. The company’s leadership team boasts notable figures from China’s top academic institutions. CEO Zhang Peng, a graduate of Tsinghua University’s Computer Science Department, is joined by Chief Scientist Tang Jie, a professor at Tsinghua University, and President Wang Shaolan, a Tsinghua Innovation Leadership Doctorate holder. The company also expanded its leadership team in April 2024, with former Alibaba Cloud Vice President Chen Xuesong joining as Vice President.

 In October 2024, the company released GLM-4.0, an open-source end-to-end speech large language model capable of replicating human-like interactions and offering users the ability to adjust the tone, emotion, or dialect according to their preferences. Zhipu has also launched a wide range of other products related to large models, including various general-purpose models of different sizes, the CodeGeeX code model based on Huawei’s MindSpore framework, the CogView text-to-image model, and the VisualGLM multimodal dialogue model. In an announcement on December 31, 2024, the GLM technology team revealed plans to enter the field of inference models.

On the financial front, Zhipu AI has been a favorite among investors. In 2023, the company completed an RMB 2.5 billion ($350 million) funding round, with participation from major investors including the Social Security Fund’s Zhongguancun Innovation Fund, Meituan, Ant Group, Alibaba, Tencent, Xiaomi, Sequoia Capital, and GL Ventures. In another boost to its financial standing, the company secured a new round of RMB 3 billion ($420 million) in funding by the end of 2024.

MiniMax

MiniMax was founded in 2021- two years after its predecessor, ZhiPu. Before founding MiniMax, Yan Junjie, the company’s founder, spent over a decade in AI research and development. At MiniMax’s first offline event in August this year, Yan shared the company’s founding vision-Intelligence with Everyone, and revealed key user data: 3 billion daily AI interactions and 30 trillion tokens processed. In October 2022, MiniMax launched its first app, Glow, which quickly gained traction, surpassing 5 million users within just four months. The app was later rebranded as Xingye for the Chinese market and Talkie for international users, marking the company’s expansion into global markets. 

Another standout product is Hailuo AI, a video-generator that quickly gained international attention later, with video creators offering positive reviews. In March 2024, Alibaba led a $600 million funding round for Minimax.

Baichuan Intelligence

Baichuan Intelligence was established in March 2023, with its core team consisting of top AI talents from renowned tech companies such as Sogou, Baidu, Huawei, Microsoft, ByteDance, and Tencent. Less than 100 days after its founding, Baichuan Intelligence released two open-source, commercially usable Chinese language models, Baichuan-7B and Baichuan-13B. 

In July 2024, Chinese media outlet 36kr reported that Baichuan Intelligence completed a Series A funding round, raising a total of 5 billion yuan. Previously, in October 2023, Baichuan had announced its A1 funding round, revealing a list of investors that included tech giants Alibaba, Tencent, Xiaomi, and several top-tier investment firms.

Moonshot

Moonshot, also founded in March 2023, is led by Professor Yang Zhilin from Tsinghua University’s School of Interdisciplinary Information. The team includes talent from global tech giants such as Google, Meta, and Amazon. Unlike some of the large models currently on the market that aim for a one-size-fits-all approach, Moonshot’s large model, Kimi Chat, is more focused on long-text capabilities. For instance, its practical use can support a context of approximately 200,000 Chinese characters—2.5 times the size of Anthropic’s Claude-100k (which supports around 80,000 words) and 8 times that of OpenAI’s GPT-4-32k (which supports around 25,000 words). This potential has contributed to Moonshot’s valuation of $3 billion.

However, its success is recently overshadowed by legal disputes.

StepFun

StepFun is the latest company to officially debut among the “Six Little Tigers.” Many people only heard of Jieyue for the first time in March this year, but the company quickly rose to become a leading player in the large model sector. Its strong multimodal technology has garnered widespread attention from developers. According to statistics, in the past 10 months, Jieyue Xingchen has launched a total of 11 foundational model products, including language models, multimodal understanding models, video generation models, and speech models.

01.AI

01.AI was founded in July 2023 by Kai-Fu Lee, who held key positions at tech giants such as Apple, Silicon Graphics, Microsoft, and Google. In the first three quarters of this year, 01.AI launched two models—Yi-Lightning and Yi-Large—both of which ranked among the top on LMSYS and were the highest-ranking domestic large models. However, the core advantage of 01.AI lies not in the rankings, but in the cost of pre-training. Under the model co-building strategy, the training and deployment costs are impressively low. Founder Kai-Fu Lee stated that Yi-Lightning’s training only required 2,000 GPUs and took just one and a half months, with costs amounting to around 2% of those of Musk’s xAI.

On August 7, 2024, media reports revealed that 01.AI had completed a new funding round, raising several hundred million dollars. Investors in the round included an international strategic investor and several Southeast Asian consortiums. 01.AI has yet to comment on the funding news. Before this round, 01.AI had previously received investment from Alibaba Cloud, following which, the company’s valuation surpassed $1 billion, securing its position as a unicorn.

Correction: An earlier version of the article misidentified GL Ventures as Hillhouse Capital.

ByteDance has launched its first overseas micro drama product, Melolo, and formed a new team to oversee its global short-form content strategy, according to Chinese media outlet 36kr. The company is also recruiting for several positions related to overseas short-form content.

Why it matters: The micro drama market has already shown immense potential in China, and ByteDance is eager to replicate this success in its overseas markets. Melolo could be a crucial step in that direction.

Detail: Micro dramas are bite-sized, fast-paced videos or mini-series that pack a punch in just a few minutes. With gripping stories and relatable characters, they capture the viewer’s attention quickly, making them perfect for today’s on-the-go audience.

• Melolo, a free-to-use short video app, is ByteDance’s first entry into the international micro drama market. The app features a mix of exclusive original content and partner-supplied short films across a variety of popular genres, including drama, thriller, and historical costume pieces. Melolo officially launched in mid-November 2024 in markets such as Indonesia and the Philippines.
• Currently, the content and services on Melolo are all free of charge.
• According to TikTok’s global marketing platform, TikTok for Business, the popularity of micro drama has surged since 2023. The number of monthly global users watching micro drama is expected to hit 200 to 300 million, and the market could reach a valuation of $10 billion in the coming years.

Context: In 2024, micro drama became a surprise hit, surpassing mainland film box office revenue for the first time. According to industry researcher DataEye, China’s micro drama market is projected to grow by nearly 35 percent in 2024, reaching RMB 50.44 billion ($7 billion), and is expected to surpass RMB 100 billion ($14 billion) by 2027.

• ByteDance’s TikTok, with its vast global user base, has provided a shortcut for many of its overseas products. One example is Lemon8, a product in the influencer-driven community space, which has grown into a global hit.
• In November 2023, micro drama app owned by Crazy Maple Studio, ReelShort, surpassed TikTok as the most popular entertainment app in Apple’s app store. As a micro-drama app that has successfully entered the US market, ReelShort tailored content for Western audiences, with plans to include supernatural elements like werewolves and vampires to better cater to viewer preferences in Europe and North America.
• On January 6, 2025, China’s national broadcast and television conference announced plans to implement stricter regulations for short-form video content, including new guidelines for micro-dramas. This regulatory shift could present new challenges for micro drama content production, but it also signals the industry’s continued growth and maturation.

Correction: An earlier version of the article misidentified ReelShort as tailoring content for Western audiences as ByteDance tailoring content for Western audiences.

Chinese ready-to-drink beverage company Mixue is seeking to conduct an IPO in Hong Kong to expand its production, according to Chinese media outlet Cailian. This is the second time that the beverage company, headquartered in central China’s Henan Province, has planned to list in Hong Kong.

Why it matters: Mixue’s second attempt to list on the Hong Kong stock exchange reflects its ongoing efforts to expand its production capacity and strengthen its presence in the competitive global beverage market. A successful IPO could provide the necessary capital to accelerate its growth and enhance its brand recognition.

Details: Mixue Group primarily sells freshly made fruit drinks, tea beverages, and ice cream in China and abroad. It owns the ready-made tea beverage brand Mixue Bingcheng and the freshly ground coffee brand Lucky Coffee. Priced between RMB 2-8 ($0.27-$1.10), its core products are significantly cheaper than those of other leading freshly made tea beverage brands, making the company a popular choice among budget-conscious consumers and strengthening its competitive edge in a crowded market.

• Mixue has consistently followed a cost-effective strategy, rapidly growing into a leading brand in the new tea beverage industry in China. Its stores are spread across cities of all sizes, including small towns and counties.
• According to Mixue’s prospectus, as of September 30, 2024, the company operated more than 45,000 stores across China and 11 other countries. It also disclosed beverage sales figures: in 2023 and the first nine months of 2024, its store network recorded sales of approximately 7.4 billion and 7.1 billion cups of beverages, respectively.
• In September 2018, Mixue Bingcheng opened its first overseas store in Hanoi, Vietnam. Since then, the company’s expansion has extended from Vietnam to other Southeast Asian countries including Singapore and Indonesia, and later to markets such as South Korea, Japan, and Australia. To date, the brand’s total number of overseas stores exceeds 1,000.
• Compared to the prospectus submitted in January 2024, Mixue has seen noticeable growth in the number of stores, beverage sales volume, and terminal retail sales.

Context: The Chinese beverage industry experienced a surge in attempts to enter the capital market at the beginning of last year. On January 2, 2024, Mixue and rival GoodMe submitted their prospectuses on the same day. However, neither company went public as planned. In September 2022, Mixue announced plans to list on the main board of the Shenzhen Stock Exchange, with a goal of raising RMB 6.496 billion ($0.89 billion). However, since then, there have been no further updates on the status of the offering. In January 2024, the company revealed its prospectus for a potential Hong Kong listing, but, like its previous attempt, no significant progress was announced until this week, when news of its renewed attempt for a Hong Kong IPO broke.

Amazon has instructed some Chinese cross-border merchants selling goods on its site to stop listing lower-priced products on rival platform Temu, according to a report in the South China Morning Post today. The apparent move comes amid the US site’s growing competition with the budget retailer owned by Chinese e-commerce giant PDD Holdings.

Why it matters: Temu has been attracting US consumers with its aggressive pricing strategies. The pressure on merchants to keep prices competitive on Amazon underscores the challenges the American e-commerce giant faces in protecting its market share against emerging competitors in the global retail landscape.

Details: Temu has seen rapid growth in its market share in the US in recent years, and it was once again the most downloaded free app in the country in 2024, having first taken that title last year in place of TikTok, according to a list of top apps and games across the App Store released by Apple. This surge in user numbers is largely driven by its aggressive pricing strategy, which has in turn forced Amazon to take action. Last week, after Anker, a power bank and charging brand, removed its listings on Temu, rumors emerged about Amazon pressuring Chinese sellers to list exclusively on its platform.

• The two official Anker stores on Temu’s US site, “ANKER Certified Refurbished Official Shop” and “ANKER Official Shop,” are currently listed as temporarily on hold, with all products removed. According to the stores’ homepage, the two hubs have sold a total of 19,105 items and accumulated 3,708 followers.
• ​​Amazon’s local office recently informed the managers of top-selling Chinese brands that they should not list identical items at lower prices on Temu. The policy followed Amazon’s increased monitoring of pricing on Temu, with penalties for sellers found to offer more expensive products on Amazon compared to Temu, including being removed from Amazon’s “Featured Offer” program.
• The “Featured Offer” program prominently displays products at the top of product pages, making them more visible and accessible to customers.
• ​​Amazon responded to enquiries from a reporter from Chinese media outlet The Paper, stating, “The claim that Amazon requires sellers to exclusively sell on our platform is inaccurate. Sellers have the freedom to determine their own sales strategies and can set prices for their products on Amazon and other sales channels. In fact, regardless of where sellers choose to sell, Amazon supports their success through our multi-channel strategy, including solutions like Multi-Channel Fulfillment (MCF). Sellers set their own prices on Amazon and use the optional tools provided by us to offer competitive prices to consumers.”

Context: For Temu, the strategy of offering extremely low prices has proven to be a double-edged sword. On the one hand, it draws in consumers, as the platform markets itself with slogans such as “Shop Like a Billionaire.” On the other hand, such pricing practices raise questions about the platform’s legitimacy and ethical standards. 

• While Temu’s parent company, PDD Holdings, has not faced significant moral scrutiny in China, it’s a different story in the US. In China, consumers and businesses are more closely aligned in terms of values and local economic realities, with fewer political considerations, making ideological resistance less pronounced. However, the very same approach might not resonate as well with global consumers, especially in markets like the US, where concerns over pricing and sourcing are more amplified. This ongoing tension between affordability and ethical concerns is now becoming a key point of contention in Temu’s growth strategy.

After navigating the bankruptcy of Smartisan Technology, accumulating $89 million in debt, founding the e-commerce livestreaming company Be Friends Holding Ltd, and eventually leaving it to launch Thin Red Line, serial entrepreneur and social media influencer Luo Yonghao has shifted his focus from AR to AI. According to Chinese media outlet ifeng.com, Chinese AR startup Thin Red Line is set to release its first product around the Lunar New Year in late January. The product will feature AI-native hardware paired with a software solution. 

Why it matters: After the collapse of Smartisan and his exploration of e-commerce livestreams, Luo has quickly shifted his focus from AR to AI. His entrepreneurial journey can be seen as a microcosm of the rapidly changing landscape of the Chinese tech industry over the past two decades.

Details: Thin Red Line was founded by Luo two years ago with an initial focus on AR technology; he has previously described the firm as his “last venture”. 

• The key highlight of the company’s new product is an AI service paired with hardware that is expected to come in two versions. Although the specific pricing has not been released, it is expected to be high.
• According to ifeng.com, Thin Red Line has entered the final sprint phase of development for its new product, with reports suggesting that the closed team has been working intensively for several days, with some employees getting only five to six hours of sleep per day.
• When Luo’s vision was first shared with the team, Luo Xiao, an employee at Thin Red Line, felt the situation was not optimistic and “difficult to implement.” He suggested that there were almost no comparable products, either in China or overseas. Additionally, several employees told ifeng.com that, similar to his approach in the Smartisan era, Luo’s high expectations and perfectionism have made product development particularly challenging.
• Luo and his partners see AR as the next-generation computing platform. They envision leading a team of over a thousand people within the next three to five years. However, it is reported that at its peak, Thin Red Line’s team has only reached around 150 people so far. This has made the development of AR glasses challenging. Moreover, efficient development of AR technology faces numerous hurdles, particularly in terms of breakthroughs in batteries, chips, and optics. As a result, the team has decided to prioritize the development of AI products.

Context: Luo has a long, but somewhat patchy history of entrepreneurial ventures. 

• In 2001, Luo started working for education mogul Yu Minhong, joining his New Oriental Education & Technology firm, China’s biggest English-language tutoring network. He immediately became well-known on the internet because of his unusual teaching methods, which gained him a cult following.
• He launched his first digital company in 2006, when he established Bullog.cn, a blog aggregator with a reputation for contentious posts. In 2013, Luo announced the closure of the Bullog.cn.
• He established Smartisan Technology in 2012 and released the Smartisan smartphone and operating system. The Jianguo smartphone, a scaled-down version of Smartisan’s main product, was introduced five years later. In 2018, Smartisan released Bullet Message, a messaging app intended to compete with WeChat,which initially went viral;however, it was unable to maintain its early success.
• Following a string of unsuccessful business endeavors, Luo and his smartphone manufacturing company fell into severe financial difficulties and stopped making supplier payments. In 2019, ByteDance, the company behind TikTok and Douyin, purchased patents from Smartisan.
• In April 2020, Luo began livestreaming sales on Douyin to pay off his debts, and he continued this until 2022, when he announced his exit from all social media to focus on Thin Red Line.

Delisted autonomous driving company TuSimple announced today that it has officially changed its name to CreateAI and released several advancements in the field of generative AI. Its main business has transitioned from technology services like image recognition to truck autonomous driving technology, Autonomous Freight Network, and has now pivoted to generative AI. Has this former automobile startup finally found its way?

Why it Matters: The rebranding and pivot reflect both the challenges and opportunities TuSimple has faced in recent years. These transformations not only highlight the shifting landscape of the tech industry, but also raise questions about the future of companies caught between their original missions and emerging market trends.

Details:

• CreateAI has launched its first large-scale model product, “Ruyi”, positioned in the field of open-source image-to-video generation. Serving as the foundation of its self-developed AI infrastructure, the company plans to build multiple AI generative tools for game and animation production based on “Ruyi”.
• CreateAI also announced it has secured the official license for the famous wuxia IP, The Legend of the Condor Heroes by Jin Yong, and will develop a large-scale open-world RPG game based on the series.
• In August, TuSimple reportedly reached a cooperation agreement with Shanghai Three Body Animation Co., Ltd. to jointly develop the first animated feature film and video game based on the internationally renowned science fiction novel series The Three-Body Problem by Liu Cixin. Today, CreateAI announced a collaboration with animation director Shoji Kawamori (known for Macross) and animation studio Shirogumi Inc. to use AIGC, to push creators to achieve greater breakthroughs in showcasing vast cosmic civilizations for the Three-Body Problem IP.​​

Context: TuSimple initially established its presence in the US, going public on the NASDAQ with impressive momentum. However, about three years later, the company decided to delist from NASDAQ and cancel its common stock. Since then, it has repeatedly shifted its core business, reflecting the tumultuous journey the startup has gone through.

• On October 31, 2022, Hou Xiaodi, CEO, CTO, and President of TuSimple, was removed from his position. A month later, TuSimple co-founder Chen Mo and former CEO Lu Cheng rejoined the team. However, Lu Cheng’s ideas and business strategies did not align with Hou Xiaodi’s vision.
• Navistar, which had collaborated with TuSimple for two and a half years, ended its partnership with the company at the end of 2022. 
• According to its financial reports, TuSimple’s R&D investment reached $164 million in the first three quarters of 2023, with a gross loss of $500,000. In December 2023, TuSimple carried out its third round of layoffs since its founding. Subsequently, the company began selling its assets in the US.
• On January 18, TuSimple announced that it had decided to delist from the NASDAQ in the US and cancel its common stock.
• Before the delisting, two US shareholders filed a lawsuit against the company’s veterans for “leaking business secrets.” After a hearing, the court issued a TRO against TuSimple.
• TuSimple‘s CEO, Lu Cheng, has previously stated that the company has no plans to exit the transportation industry and will continue to promote the commercialization of autonomous driving technology through technological cooperation and licensing.

Meituan, which owns one of China’s largest food delivery platforms, is trialing a new policy to log off delivery workers who work excessively long hours. The initiative, aimed at safeguarding workers’ well-being, comes amid increasing scrutiny of labor rights and algorithm-driven management in the gig economy. 

Why it matters: Algorithmic management has become a new standard in regulating digital labor, replacing human oversight with platform-driven algorithms. While this makes regulation smarter and more efficient, it also makes it pervasive. Platforms typically increase compensation after a certain order volume, and this mechanism turns earning money into an addictive cycle, which led to frequent safety incidents caused by workers pushing themselves to the brink. In an academic survey with a sample size of 1,209, more than one-third of the riders had been involved in an accident. The log off mechanism is one step toward addressing this issue.

Details: Meituan’s policy includes automated rest prompts for riders who exceed a certain cumulative working time. If the time limit is further breached, the platform enforces a mandatory log-off, preventing riders from taking new orders until the following day. Riders already in the middle of a delivery will be allowed to complete it before being logged off.

• According to Meituan, approximately 7.45 million delivery riders were registered on its platform in 2023.
• The tiered salary system of food delivery platforms has created intense competition among riders, pushing them to work at an unsustainable pace. According to a report by LatePost, delivery riders in first- and second-tier cities now earn more than the average annual salary of recent college graduates. In some first-tier cities, top riders can make over RMB 10,000 ($1372) per month during peak seasons. However, these riders often work over 10 hours a day, leading to significant physical strain.
• Beyond working hours, concerns around labor relations, contract signing, and occupational injury protection are also critical issues. The food delivery industry widely adopts an outsourcing model, where delivery services are contracted to different companies based on regions. These contractors then hire riders to complete the deliveries. At the same time, riders rarely sign formal labor contracts, and the types of contracts vary greatly. This creates challenges for riders in accessing occupational injury protection and benefits.
• According to Jiemian, Ele.me implemented a nationwide rider rest policy in August of this year. The 2023 Ele.me Rider Rights Protection Report reveals that between May 2022 and September 2023, the platform had over 4 million active riders.
• A Meituan spokesperson stated that the company is actively listening to feedback from various parties, including riders, and continues to explore ways to improve its rider fatigue prevention mechanisms. However, regarding the specific duration for forced log-off, Meituan clarified that the current plan is still in the pilot phase, and the detailed rules will be announced after further refinement.

Context: In 2017, China’s food delivery platforms began to expand, leading to rapid market growth. In 2024, Meituan reported a revenue of RMB 93.6 billion ($12.8 billion) in the third quarter of 2024, marking a year-on-year increase of 22.4%, with an adjusted net profit of RMB 12.83 billion ($1.8 billion), up 124% compared to the previous year.

As AI continues to reshape industries worldwide, a key question remains: Can its transformative power be harnessed responsibly? In a virtual media briefing hosted by EY Consulting, experts gathered to explore just how businesses can leverage AI’s potential while ensuring its ethical use and minimizing potential harm.

Leveraging AI for cybersecurity

Jeremy Pizzala, EY’s Asia-Pacific Cybersecurity Consulting Leader, emphasized how generative AI could enhance cyber defenses. “Businesses, governments, and societies face increasing attacks from cybercriminals, such as the alarming rise in ransomware,” he said. Pizzala noted that tools like Microsoft Copilot are being embedded into security operations centers, enabling cyber defenders to analyze and respond to threats almost instantly. “The power of generative AI allows defenders to access insights at their fingertips, which previously required consulting databases or colleagues,” he explained.

However, Pizzala also expressed concerns about how AI could lower barriers for cybercriminals. “Malicious actors can use generative AI to create ransomware or malware in seconds. While mainstream tools like ChatGPT impose ethical restrictions, underground platforms are providing access to AI-driven tools for generating malicious code,” he warned.

AI’s imperfections

Dr. Sooyeon Kim, EY’s Asia-Pacific Technology Consulting Artificial Intelligence Leader, addressed the complexities of AI reliability. “AI is imperfect due to ever-changing relationships across data points,” she said. Kim stressed the importance of human oversight in determining when to retrain AI models and when to trust their outputs. “We may need complementary information to guide decisions on whether AI’s insights are trustworthy,” she added.

AI and sustainability

Neil Cherry, EY’s Asia-Pacific Consulting Technology Field of Play Leader, highlighted AI’s role in sustainability initiatives. “AI is being used for climate modeling and better predictions,” he said, citing its application in renewable energy operations. Cherry emphasized AI’s potential in addressing environmental challenges, such as reducing the two billion tons of waste annually. “To achieve sustainability goals, avoiding fossil fuels is a clear course of action,” he concluded.

the Greater Bay Area’s potential as an AI hub

The briefing also explored Hong Kong’s prospects as a regional AI hub. Pizzala highlighted the city’s advantages, including its established legal framework based on common law, which fosters trust and confidence for businesses. “Hong Kong’s strong legal and commercial arbitration capabilities are critical assets for organizations looking to innovate in AI,” he said. Additionally, Hong Kong’s integration with the Greater Bay Area (GBA) offers significant opportunities. “The GBA facilitates collaboration with sister cities and access to Mainland China’s vast data resources, which are crucial for training large language models essential to generative AI,” Pizzala explained. These factors position Hong Kong as a strategic hub for AI innovation, combining local strengths with regional connectivity.

Moonshot AI, a rapidly rising AI startup founded in 2023, has captured global attention with its advances in large language models and even more so with its meteoric valuation climb to $3 billion – yet its success is overshadowed by legal disputes.

Viral success of a second venture

In early 2023, after OpenAI reignited public interest in artificial intelligence, a Beijing-based AI algorithm company named Moonshot AI was founded. The fledgling startup would soon make waves in AI and venture capital. On October 9, 2023, Moonshot AI announced a breakthrough in the long-text domain, unveiling Kimi Chat, the world’s first AI assistant capable of processing 200,000 Chinese characters in a single input, boasting the longest contextual capacity among commercialized large language models globally. By March 20, 2024, AI application trends had surged, and topics like “#Kimi concept stocks soar” trended on Chinese social media platform Weibo. According to Similarweb, Kimi Chat ranked third on China’s AI product list by user traffic in February, with its average daily active users increasing by 101.9% year-on-year. It also topped global growth rankings, maintaining its upward trend through the first two weeks of March.

The journey of Moonshot AI’s founder, Yang Zhilin, began in 2016, when he co-founded his first startup, Recurrent AI, at the age of 23. A Tsinghua University computer science graduate and a PhD candidate at Carnegie Mellon University’s Language Technologies Institute, Yang had contributed to projects at Google and China’s Pangu NLP. He later co-founded Recurrent AI with a group of fellow entrepreneurs.

In March 2023, as ChatGPT gained global popularity, Yang seized the opportunity in the large-scale AI model industry and founded Moonshot AI, focusing on general artificial intelligence.  Beyond his entrepreneurial pursuits, Yang was also a drummer in a band, and the company’s name (in Chinese) draws inspiration from Pink Floyd’s album “The Dark Side of the Moon”. 

Moonshot AI’s rapid fundraising pace and skyrocketing valuation have drawn widespread attention. In February 2024, the company raised over $1 billion in a funding round led by Alibaba, with participation from Sequoia Capital China, Meituan, and Xiaohongshu, pushing its valuation to $2.5 billion. In August, Moonshot AI announced a Series B round, securing over $300 million from investors including Tencent Investment, Gaorong Capital, and Alibaba, which raised its post-funding valuation to $3 billion.

Industry insiders reveal that several investment firms, confident in founder Yang, continued to back him when he launched Moonshot AI. Others, including GSR Ventures, did not keep pace. A year later, following Alibaba’s $1 billion investment and the company’s rising valuation, some of these firms reportedly raised objections, with accusations ranging from shareholder conflict to allegations of cashing out.

Adding a dramatic twist, Zhang Yutong, then a managing partner at GSR Ventures, played a pivotal role in the $1 billion February round. Reports suggest she was instrumental in facilitating Moonshot AI’s partnership with Alibaba, leading the effort from Singapore.

Entering arbitration

In November, Moonshot AI’s co-founder and CTO, Zhang Yutao and Yang, were named in an arbitration case filed in Hong Kong by investors from their previous venture, Recurrent AI.

According to sources, the arbitration applicants comprise five of Recurrent AI’s seven investors: GSR Ventures, Jingya Capital, Boyu Capital, Huashan Capital, and Wanyu Capital. Sources familiar with the matter suggest that the arbitration stems from allegations that Yang and Zhang launched Moonshot AI and secured funding without obtaining consent waivers from Recurrent AI investors.

At the center of controversy

Zhang Yutong, an angel investor for Yang Zhilin, has played a pivotal role in both of his entrepreneurial ventures. In 2016, she invested in Recurrent AI. As a fellow Tsinghua University alumni, Zhang has a longstanding connection to Yang.  

Since joining GSR Ventures in 2011, Zhang built a reputation for identifying high-potential ventures, including investments in Xiaohongshu, now valued at $17 billion, and DeePhi Tech, acquired by Xilinx for $300 million in 2018. Her investment prowess led to her promotion to the role of GSR’s second-ever managing director (partner) in 2020, following Allen Zhu. 

In February 2024, Moonshot AI completed a funding round exceeding $1 billion, with media reports highlighting the pivotal role of Zhang Yutong, then a managing director (partner) at GSR Ventures. By April, it was reported that Zhang had departed GSR Ventures, citing personal career development plans. While rumors circulated that she might have joined Moonshot AI, the company said Zhang had not officially taken a position with them.  

On December 5, Zhu, managing director (partner) at GSR Ventures, posted an update on his Wechat Moment addressing recent arbitration. Zhu expressed willingness to waive claims against Yang and the founding team while accusing Zhang of violating business ethics, fiduciary duty, and even the law. Alleging that Zhang had been dismissed from GSR Ventures for deliberately concealing her ownership of 14% free shares in Moonshot AI, Zhu argued this action violated her fiduciary duty as a fund partner to Limited Partners and as a company board member to shareholders.  

Yang on the other hand defended Zhang, explaining that the shares granted to her were compensation for her long-term contributions to the company as a co-founder.

So far, Zhang, the investor at the center of the controversy, has made no public statement.

The dark side of the moon

Looking back, it becomes evident that the current controversy surrounding Moonshot AI revolves around a dispute over equity. At the heart of this turmoil is Zhang, whose dual roles have raised questions about a potential overlap in timelines – specifically, whether Zhang, while serving as a General Partner role at GSR Ventures, had conflicting interests with Moonshot AI. This issue, tied to fiduciary duty, was what had sparked the recent upheaval. 

However, given seemingly contradictory reports and the absence of critical disclosures, Moonshot AI remains clouded in uncertainty, with key details not yet out in the open.

A US appeals court last Friday upheld the law challenged by TikTok, rejecting the platform’s argument that it was unconstitutional. This decision gives the court until Jan. 19 to determine whether TikTok will be banned if it fails to secure a US-based buyer. The ruling moves TikTok one step closer to a potential ban in the US. A TikTok spokesperson stated, “the TikTok ban was conceived and driven by inaccurate, flawed, and hypothetical information, leading to outright censorship of the American people.”

Why it matters: Despite ongoing controversies, TikTok has undeniably made a significant impact in the US, shaping everything from the economy and e-commerce to technology, free speech, and even political discourse. If banned, the impact would ripple across personal users, businesses, and cultural spheres. The move could also prompt other Chinese tech companies to reassess their international expansion strategies, especially their plans to enter the US market.

Details: 

• Polls show that support for a TikTok ban among Americans has steadily declined, dropping from 50% in March 2023 to 32% between July and August 2024, while opposition to the ban has gradually risen.

• Nonprofit organizations have spurned the House legislation as unconstitutional, arguing that it violates First Amendment protections that ensure TikTok users’ rights to access lawful information. The American Civil Liberties Union (ACLU) condemned Friday’s “flawed and dangerous” federal appeals court ruling that upheld the law banning the social media platform TikTok. 
• President-elect Donald Trump is expected to try to halt a potential US ban of TikTok next year, after he promised on the campaign trail to save the popular social media app if he won, despite being the first to call for the bill.
• While president-elect Donald Trump has promised to lift the ban, data shows that Republicans are generally more likely to support it, even though that support has waned. However, Trump’s promise remains uncertain.

• In recent years, China has implemented policies to regulate algorithm exports. In August 2020, around the same time the Trump administration demanded that ByteDance sell TikTok, China’s Ministry of Commerce and Ministry of Science and Technology revised export control regulations. The updates added “personalized information push services based on data analysis” to the list of technologies subject to export restrictions.
• TikTok is estimated to have 2.05 billion users globally as of 2024, with the United States serving as its second-largest market, home to 120.5 million users.
• TikTok Shop was officially  introduced in September 2023 to allow users to purchase things within the app. According to CNBC, retailers and brands continue to invest in TikTok Shop even though the potential Jan. 19 ban grows nearer.
• TikTok’s main competitor in the US is Instagram’s Reels. If TikTok is banned, Reels is likely to see a significant surge in user adoption and engagement, as it would become one of the few remaining platforms offering similar short-form video content. Launched in 2020, Instagram reels now have over 2 billion monthly active users.

Context：In April, US President Joe Biden approved a bill requiring the platform to be sold to a new, non-Chinese owner or face prohibition in the US. TikTok filed a lawsuit in May to block the law, arguing that it infringed on the free speech rights of its more than 170 million American users and unfairly targeted the platform.

• India, once TikTok’s largest market outside China with 200 million users, banned the platform in 2020 over privacy and security concerns. As of 2024, India now leads in Reels users with 327 million, followed by the United States at 169 million.

Apple will officially partner with Chinese internet giant Baidu to bring generative AI services to its devices in China, including the iPhone, Mac, and iPad, multiple media outlets reported yesterday. Apple Intelligence is expected to use Baidu’s advanced Ernie 4.0 model as part of the deal. The collaboration aims to bring Apple’s generative AI features to China in 2025, if the two companies can solve their disagreement on how user data is to be stored and employed.

Why it matters: The partnership marks a crucial step in Apple’s efforts to expand its AI capabilities in China, a market where it faces regulatory challenges and ever growing competition from local brands. The deal could significantly impact both companies’ financial performance, as Apple seeks to regain ground in a market where its revenue has been slipping for three consecutive years and Baidu looks for a boost following a revenue dip in Q3.

Details: The collaboration took nearly eight months to finalize, according to reports. Prior to this, Apple had held talks with Alibaba and another Chinese AI company before ultimately deciding to opt for Baidu. 

• Apple is reportedly paying Baidu for the use of its AI models and has agreed to cover the costs of retraining and fine-tuning the models to meet specific requirements. This makes Apple one of the largest clients of Baidu’s Ernie model.
• However, the two companies remain in disagreement over the use of iPhone user data. Baidu has shown interest in collecting and analyzing data from iPhone users to improve its AI models, particularly in areas like understanding prompts and responding to common user scenarios. But sources familiar with the matter say Apple’s strict privacy policies prohibit the collection of such data.
• In addition to collaborating on smaller AI models for iPhone and other devices, Apple and Baidu are also working together on larger AI models for cloud applications. Siri, Apple’s virtual assistant, is expected to integrate Baidu’s AI models to enhance its search results. Baidu has served as Apple’s default search engine in China since 2012, and became Siri’s default search engine in the country in 2015.

Context: Apple has been rolling out new generative AI features in the US and other countries, but in China, the company has to partner with local firms to implement these technologies effectively and legally. 

• The deal with Baidu is seen as a strategic move in response to fierce competition from local players like Huawei, whose Mate 70 series features its own AI functions, such as image generation and correction tools. 

Apple has seen a decline in its China revenue in recent years, with iPhone 16 sales taking a hit in the Chinese market due to AI competition, making local partnerships crucial.

Major Chinese e-commerce platforms Temu, Shein, and TikTok Shop are reshaping the dynamics of Black Friday shopping in Western markets, leveraging aggressive pricing strategies and innovative shopping formats, impacting traditional retailers and consumer behavior at the start of the holiday season.

Why it matters: This year’s Black Friday presents a crucial opportunity for Chinese e-commerce platforms like Temu and Shein as they continue their expansion into European and North American markets. The shopping event, in its last year before Trump’s second term, could see Chinese e-commerce companies make moves to dominate their Western markets by maintaining price-cutting strategies, a last opportunity for such tactics before regulatory pressures increase.

Details: 

• Temu and Shein’s aggressive online marketing efforts are driving up costs for other retailers and brands to connect with shoppers on Black Friday, Reuters reported. Both platforms are bidding heavily on search keywords associated with their competitors, and local e-commerce players and retailers have suffered as a result.
• Although Black Friday remains the most popular shopping holiday in the world, Chinese e-commerce platforms offer consumers low prices year-round, allowing consumers to purchase affordable products any day, diminishing the holiday’s significance.
• TikTok has entered the e-commerce space with TikTok Shop, transforming shopping habits by integrating short videos with seamless in-app purchasing options, enabling users to buy products within the app. This shopping style is becoming a trend in Western countries.
• Earlier this year, ByteDance, the company behind TikTok, set high expectations for TikTok Shop’s US operations, aiming to grow its scale tenfold to reach $17.5 billion in 2024.
• After two years, Temu has gained a large share of e-commerce in the United States, and its growth momentum is relatively strong: Temu reported $20 billion in sales in the first half of 2024, already exceeding its total sales for 2023.
• According to Business Insider, US President-elect Donald Trump has spoken extensively about the tariffs he plans to put on Chinese imports once in office, shining a light on companies likely to be affected, such as  Shein and Temu.

Context: Compared to last year, online spend increased dramatically, with US consumers spending a record $10.8 billion online, a 10.2% increase from last year, according to Adobe. Salesforce reported even higher totals, estimating $17.5 billion spent in the US and $74.4 billion globally, marking increases of 7% and 5%, respectively. In 2023, Adobe noted $9.8 billion and Salesforce $70.9 billion in global spending.

Chinese short video player Kuaishou announced on November 28 that it will be discontinuing its refund-without-return service for merchants on its e-commerce platform, effective December 2. 

The decision follows a strategic business realignment aimed at refining the platform’s after-sales services and comes after consistent complaints from merchants that the policy made it too easy for customers to request a refund without returning the goods. 

Why it matters: The decision reflects Kuaishou e-commerce’s growing emphasis on protecting merchants, attempting to reduce the financial losses they have faced due to what they see as inconsistent and unreasonable refund policies that have favored consumers. By discontinuing the policy, the Douyin rival seeks to curb the negative impact on businesses and better balance the interests of both consumers and merchants.

Details: Merchants can proactively cancel the service before December 2; if they do not cancel by the deadline, the platform will automatically terminate the contract. For existing orders, the system will continue to process them according to the original terms. 

• Kuaishou introduced the refund-without-return policy in November 2021, allowing buyers to request a refund without returning goods. In certain cases, if the return shipping cost is relatively high, issuing a “refund without return” is seen as a more suitable after-sales solution than insisting on the return of the product.
• Kuaishou has clarified that it is not abolishing its “Refund Only” policy. While the refund-without-return policy allowed buyers to get a refund without returning items, “Refund Only” is a more stringent policy that still requires merchants’ consent, with refunds granted only if certain conditions are met. 
• Under the new rules, if a merchant does not ship the goods on time or fails to respond to a refund request within a designated timeframe, the system will automatically issue a refund to the consumer. If the item has already been shipped, merchants have a 36-hour window to process the refund request; otherwise, the system will automatically grant the refund.
• The “Refund Without Return” service has been misused by fraudulent consumers, such as so-called “sheep-shearers” (a Chinese slang term for customers who took advantage of the policy to exploit merchants). These issues resulted in significant financial losses for merchants and sparked dissatisfaction within the e-commerce industry, where platforms were seen to favor consumer interests at the expense of business profitability. 
• According to the 2024 China E-commerce User Experience and Complaint Monitoring Report released this July by the eCommerce Research Center of China’s Internet Economy Institute, in the first half of this year, refund issues accounted for as much as 28.31% of the top ten types of online consumer complaints nationwide.

Context: The refund-without-return mechanism was first introduced by Amazon, aiming to provide consumers with faster and more convenient after-sales service. In the Chinese e-commerce market, Pinduoduo adopted the model as early as 2021. To attract more users, other platforms quickly followed suit, with Taobao, JD.com, Douyin, and Kuaishou all launching similar models since then.

A decade ago, the release of the Apple Watch redefined the concept of a watch, transforming it from a simple timekeeping device into a versatile tool for health management, payments, navigation, and communication. Now, AI’s rise is reshaping another wearable technology: smart glasses. These devices, which integrate advanced technologies such as augmented reality (AR), artificial intelligence (AI), and mixed reality (MR), are claiming that they enhance user interactions with both the digital and physical worlds. And in turn, global tech companies have increasingly turned their focus to the AI-powered smart glasses market in recent years. At its Connect conference in September, Meta unveiled its Ray-Ban Meta smart glasses, and other industry giants such as Apple, Google, Samsung, and Amazon have also signaled plans to enter the space.

The trend is mirrored in China. Recently, AR manufacturer Rokid teamed up with fashion eyewear brand Bolon to launch AR+AI glasses. Earlier this month, Baidu announced its Xiaodu AI glasses, slated for release in the first half of next year. Additionally, reports suggest that Xiaomi is collaborating with GoerTek to develop a new generation of AI glasses aimed at competing directly with Ray-Ban Meta, with a launch expected in the second quarter of 2025. Companies such as Huawei and Thunderbird have also introduced AI glasses to the market. This brings the industry to a crucial moment: will AI glasses unlock the next wave of innovation, or are they destined to remain a niche product?

Why AI glasses?

Despite the hype surrounding AI’s transformative potential across multiple industries, a significant gap remains between expected revenues from AI infrastructure investments and the actual growth of AI-driven ecosystems. Since ChatGPT ignited an AI arms race, tech companies have invested tens of billions of dollars in data centers and semiconductors to support large language models. As a result, businesses operating in the AI space are increasingly aware of the urgency to develop practical applications for these AI models.

AI-powered smart glasses stand out as a potentially profitable avenue. During Siggraph 2024, an annual technology conference, Meta CEO Mark Zuckerberg, alongside Nvidia CEO Jensen Huang, expressed his belief that AI-driven smart glasses have the potential to become the next major breakthrough in technology.

Smart glasses’ wearability and broad consumer acceptance make them an appealing choice for tech companies. A significant factor driving interest is the massive global population with vision impairments – over 2.2 billion people, according to the World Health Organization’s World Report on Vision published in Oct. 2019. The global smart glasses market was estimated at USD 1.2 billion in 2022 and is likely to grow at a compound annual growth rate of 27.1% from 2023 to 2030. In China alone, the eyewear market is expanding rapidly. A white paper published in 2022 by iResearch Inc. estimates that the retail market for eyeglass frames in China will reach RMB 37.6 billion ($5.2 billion USD) by 2025. 

Lessons from Magic Leap

Even with the vast market potential, the consequences of overestimating the speed at which technology can merge with market demand are foreseeable. Magic Leap, once touted as the next big thing in augmented reality, offers a valuable lesson for the current wave of firms chasing smart glasses development. Founded in 2010, the company generated massive excitement with its vision for immersive AR experiences, backed by high-profile investors and billions of dollars in funding. However, despite its bold promises, Magic Leap has faced significant hurdles in achieving commercial success.

Initially marketed as a revolutionary device for both entertainment and enterprise use, Magic Leap’s first-generation AR headset failed to deliver on its promises. The company’s struggles have been compounded by internal challenges, including leadership changes and an evolving business strategy that now focuses on licensing its AR optics technology to other companies, rather than pushing out consumer-facing products.

This pivot highlights a key challenge in the smart glasses market: while the technology shows great potential, it has yet to find a balance between innovation and practical, everyday use. As smart glasses manufacturers like Meta, Apple, and Xiaomi continue to explore the space, they will need to heed the lessons from Magic Leap’s experience. These include managing consumer expectations, refining hardware design, and ensuring that the product delivers a true, practical value to the user.

Looking ahead: what next?

Several obstacles still hinder smart glasses from becoming mainstream technology. One primary challenge lies in hardware limitations, such as short battery life and bulky, uncomfortable designs, which affect their usability and long-term appeal. Leading players are addressing these issues in various ways: Xiaomi has focused on lightweight designs, Rokid is prioritizing user privacy, and Baidu is tackling battery efficiency. 

Cost remains another critical barrier. Advanced components such as high-resolution displays, cameras, and sensors significantly increase production expenses, making many models unaffordable for the average consumer. As of now, no company aside from Meta has made a substantial breakthrough in capturing the market, leaving the path to mass adoption both uncertain and full of opportunity.

Alibaba Group announced a major restructuring of its e-commerce business on Thursday, consolidating its domestic and international operations into a single e-commerce division. CEO Eddie Wu, in an internal memo, said the move aims to enhance the company’s ability to serve consumers worldwide and support small- and medium-sized enterprises in expanding across global markets, as reported in Chinese media outlet 36Kr. 

Why it matters: The restructuring signals Alibaba’s determination to enhance its global e-commerce footprint while maintaining dominance within China. By consolidating Taobao, Tmall, 1688, and AliExpress, the company seeks to streamline operations and compete better with international rivals. 

For the global e-commerce landscape, this move means intensified competition as Alibaba steps up its efforts to attract consumers and sellers worldwide. The company’s expansion has the potential to reshape market dynamics and put extra pressure on established players in key markets.

Details: The newly formed Alibaba E-Commerce Business Group will encompass platforms such as Taobao, Tmall, AliExpress, Alibaba.com, Lazada, Trendyol, 1688, and Idle Fish. Jiang Fan, currently CEO of Alibaba International Digital Commerce, has been named as the new CEO of the group and will report directly to Wu. According to an Alibaba representative, this restructure aligns with the company’s ongoing efforts to capitalize on cross-border e-commerce opportunities.

• According to Alibaba’s recent quarterly financial report, the growth of cross-border trade, especially AliExpress’ Choice, has driven Alibaba’s international commerce business to deliver a 29% year-on-year revenue increase.
• In July, Taobao launched the “Global Free Shipping Program for Apparel”, aimed at encouraging fashion merchants to expand internationally. It also invested RMB 1 billion ($13.7 million) to offer free shipping throughout Hong Kong on orders over a set value. In September, Taobao introduced an English version of its platform in Malaysia and Singapore.
• As of Sept. 30, Alibaba expanded its Taobao Overseas platform to Japan, Cambodia, Thailand, Vietnam, and Australia, in addition to its existing presence in Hong Kong. During this year’s Double 11 shopping festival, Taobao reported 40% growth in Thailand, nearly 30% growth in Australia, and a 600% increase in free-shipping sales in Hong Kong.
• Jiang Fan is one of Alibaba’s youngest senior executives and was previously the head of its International Digital Commerce division. He joined Alibaba’s partnership program in 2019 but was removed in 2020 following public controversy over an alleged affair. He has been leading the group’s overseas digital commerce operations since 2021.

Context:

The restructuring follows Eddie Wu’s appointment as Alibaba CEO in September 2023, when he outlined a strategy focused on “user-first” principles and AI-driven innovation. 

Despite its aggressive push, Alibaba faces stiff competition in the global e-commerce arena:

• Temu, owned by PDD Holdings, has emerged as a formidable competitor. In August, Temu achieved nearly 700 million visits, surpassing eBay to become the world’s second most visited e-commerce platform after Amazon, according to SimilarWeb.
• In the Southeast Asia market, Shopee, owned by Sea Group, remains a dominant player, reporting adjusted earnings of $34.4 million in the latest quarter.

Shein, the Chinese-founded online fast-fashion giant, is planning an initial public offering on the London Stock Exchange in the first quarter of 2025, according to The Times. Regulatory approval is currently pending for the move, the newspaper added.

Why it matters: The Times reported that the IPO could become one of the largest deals on the London Stock Exchange in the past decade. If Shein does opt for a UK listing, it would provide a much-needed boost to the London market, the media outlet added.

Details: According to the Times, Shein is working with US investment banks Goldman Sachs, JP Morgan, and Morgan Stanley on the potential float.

• Shein’s valuation for the IPO is expected to be set at around £50.3 billion. The company is preparing to hold formal investor roadshows in the coming weeks, during which its management team will meet with institutional investors, according to The Times. Currently, the IPO prospectus is being circulated among select stakeholders but has not yet been officially released, the report noted.  
• Shein initially planned to list in the United States, but the US Securities and Exchange Commission claimed that its application would not be accepted unless the company submitted public filings. Shein has since shifted its focus to a London listing. The Times report indicated that French ministers have also attempted to persuade Shein to list in France.
• According to the Times, the plan has sparked concerns in the UK about Shein’s environmental, social, and governance (ESG) credentials, particularly its labor and supply chain policies. Previously, Shein admitted that employees at its Chinese factories worked more hours than allowed under the country’s labor laws. Several senior British politicians have called for stricter scrutiny of the listing.
• Although serious question marks remain around Shein’s environmental and labor practices, some observers have suggested that the listing could potentially spur the firm to address such issues by encouraging greater transparency and accountability due to the reporting required by the Exchange.

Context: Founded in Nanjing by Chris Xu in 2008, Shein has grown from a low-cost Chinese clothing merchant into a global online fashion giant with sales reaching $50 billion by 2024, while its app generated a total of 199.37 million downloads worldwide in 2024(as of October). 

• According to Reuters, Shein is the world’s largest fast fashion retailer with an 18% global market share.

In the early hours of November 11, China’s Singles Day, e-commerce platforms issued a slew of statistics related to performance during the country’s biggest consumerist festival, though as with recent years they shied away from boasting about their gross merchandise value (GMV) totals, numbers that consistently led their announcements in the event’s 2010s heyday. The platforms’ Double 11 press releases also highlighted the key role that AI and livestreaming played for them during this year’s event.

Why it matters: Now in its 16th year, China’s biggest annual shopping event not only reveals consumer buying power but also tracks trends in consumer interests and emerging product hotspots.  The widespread use of AI and livestreaming points to the strategies that the country’s major e-commerce platforms are employing as they look to entice a consumer base that has become more careful with its spending in recent years. 

Details:

• According to data from Alibaba, the Chinese tech giant behind major shopping platforms Taobao and Tmall, its AI toolkit enabled 4 million merchants to simplify their marketing efforts by generating over 100 million pieces of content, ranging from images to text. Additionally, the toolkit helped 800,000 merchants analyze consumer traffic patterns, allowing for more targeted and efficient outreach. With this support, 589 brands on Alibaba’s platforms achieved RMB 100 million (USD 13.8 million) in gross merchandise value (GMV) this year, up from 402 brands last year. Furthermore, 45 brands, including Apple, Haier, Midea, and Xiaomi, surpassed the RMB 1 billion GMV milestone, according to Alibaba.
• AI not only served merchants but also emerged as a popular category among consumers during this year’s Singles Day. According to data from JD, demand for AI-driven electronics surged on JD.com, with sales of AI learning devices growing tenfold and sales of AI-enabled computers, smartphones, and related technology items doubling year-over-year. In addition, livestreaming proved to be a crucial engagement channel for the platform, as orders from JD Live surged 3.8 times compared to last year. Supported by a logistics network of 340,000 couriers, JD.com expanded its services to rural areas, adding nearly 300 remote townships to its delivery range and ensuring fast delivery even for large appliances.Transaction volume for 519 home appliance categories doubled, with top sellers including large-screen TVs, energy-efficient air conditioners, and smart toilets.

Context: Double 11, also known as the “Chinese Black Friday,” is China’s largest shopping festival, held annually on November 11. Launched by Alibaba in 2009, it has grown into a major event across all e-commerce platforms, featuring massive discounts and record-breaking sales. This year, Double 11 promotions kicked off as early as October 8 on Douyin, marking the longest lead-up to the event at nearly a month. 

• According to the 54th Statistical Report on China’s Internet Development released by the China Internet Network Information Center (CNNIC), as of December 2023, the number of e-commerce live-streaming users reached 597 million, accounting for 54.7% of all internet users in China.