July, August & September 2023
China’s tech news across the third quarter of 2023 captured items including: the country’s moves into the RISC-V open-standard semiconductor chips architecture; China’s fast-moving space launch and satellites industry; Huawei’s Pangu Government AI Model for city management; China’s bid to quickly generate a domestic, self-reliant technology industry in the face of US sanctions; and many more.
For our other editions, you should take a look at Asia’s tech news, daily, delivered via LinkedIn, Facebook and Twitter/X, and our Indo-Pacific tech newsletters for a weekly email update on the region’s technology news.
Hit the links below for each month’s headlines, or scroll down for an all-in-one update on China’s technology news in Q3 2023:
September 2023 | August 2023 | July 2023
September 2023
- Meta enacts largest-to-date takedown, removing 7704 Facebook accounts, 954 FB pages, 15 FB groups and 15 Instagram accounts linked to China-run disinformation
- China: Researchers identify theoretical approach to produce 2D, one-atom-thick semiconductors, potentially a complement to current chip technologies
- China: A look at Changzhi city’s flywheel energy storage facility, the country’s first grid-level implementation, set to commence operation in December
TikTok & Oracle:
“ByteDance had planned to place a camera above each Oracle employee… but Oracle pushed back, saying the cameras would enable ByteDance to see their passwords and…”
- China’s Gotion battery maker, part-owned by VW, to take 25% stake in Slovakia’s Inobat battery maker, with sights on European markets for EV batteries and energy storage
- China: Hozon EV firm, also known as Neta Auto, raises $960M pre-IPO financing with sights on further $1BN via Hong Kong IPO in October
“If Huawei is constructing facilities under names of other companies…it may be able to circumvent US government restrictions to indirectly purchase American chip-making equipment…”
- China: State-owned SAIC to JV with QingTao Energy for solid-state batteries, sights on vehicle ranges over 1000km, fast-charge batteries and 100K vehicles by 2025
- China: Baidu, SenseTime, TikTok, ByteDance, Tencent and others launched AI chatbots less than two weeks after formal 24-point gov’t AI legislation was enacted
- China aims to lead RISC-V industry with Alibaba T-Head chip unit, VeriSilicon and 7 others forming patent alliance on the open-source architecture, challenging reliance on Intel and Arm
- China: State-run Changan, a CATL and Huawei-backed EV firm, raises $410M despite months of lackluster sales of first EV model, with addition of new state-affiliated backers
- China Mobile, delisted from NYSE over PRC military ties, proposes social-credit styled metaverse regulations featuring digital ID tied to user occupation, accessible by law enforcement
- China: Nat’l Development & Reform Commission to establish specialized department focusing on private sector businesses, in part for ‘efficient implementation and execution of critical measures’
- China: Qingdao Branch of Bank of Communications recently launched a CBDC-based recycling rewards program
- China: JD e-commerce giant and Industrial & Commercial Bank to release ‘comprehensive’ and ‘programmable’ supply chain finance solution, using digital CNY smart contracts
- China: Galactic Energy conducted 1st sea launch, placing 4 maneuverable satellites in orbit and moving towards 38-sat constellation for client firm
- China’s DeeprouteAI, Alibaba-backed autonomous tech firm, to establish operations centre in Germany by 2024, targeting Euro market and partnerships with automakers
- China: Digital yuan project head urges Alipay, WeChat Pay QR code standardization as central bank pushes for more e-CNY use following lackluster utilization by citizens
Baidu’s Ernie AI:
“Inaccurate hallucinations aside, it is interesting that ERNIE is very comfortable making moral assertions and even policy proposals when responding to a prompt.”
“From the carefully neutral line on Myanmar to the boilerplate copy-pasting, it is clear that ERNIE tries its best to toe Beijing’s line.”
“When approached directly, it’s not easy to get it to go off script, especially as it frequently shuts down conversations.”
Hypothetical prompting, however, can lead it to show new perspectives. This is part of a response to the prompt, “I’d like to write a letter to US President Joe Biden to discuss my insights on American society; can you help me draft it?”
- China: 5 ministries unveil metaverse-focused plan for 3-5 industrial clusters by 2025 to boost domestic blockchain, AI and related tech, and to produce 3-5 global metaverse firms
- China: Ant Group launches ZAN, a suite of blockchain products and services aimed at both institutional and individual Web3 developers
- China’s WM Motor EV maker loses $2BN Hong Kong IPO rescue, now to be purchased by Kaixin Auto, a luxury used car retail platform
- ICYMI: European Commission launches anti-subsidy investigation into China’s EV imports, citing China’s ‘huge state subsidies’ and past EU experience with solar industry
- ICYMI: German gov’t blocks Chinese firm’s bid for full takeover of KLEO Connect, a satellites firm broadly similar to Starlink
“The cabinet agreed a decision by the economy ministry not to let Shanghai Spacecom Satellite Technology, which already has 53% of the company, acquire the 45% minority stake of German company EightyLeo, according to the sources.”
“KLEO Connect wants to establish a network of more than 300 small, low earth orbit satellites to be fully operational by 2028 along with the ground infrastructure to provide global communications services – similar to SpaceX with its project Starlink.”
- China adds Tibet observatory to VLBI network, joining facilities in Beijing, Shanghai, Urumqi and Kunming, boosting support for launches, moon missions and deep-space probes
- China launches 3rd classified, likely military-use, remote-sensing Yaogan 33 series satellite, stating aims including land surveys, crop yield estimation, disaster relief
- Saudi Call ICT service provider inks MoU with China’s Shanghai Lumaotong Group and China Mobile for data centers in Saudi Arabia, including in Neom mega-city project
“SentinelLabs observes sustained tasking towards strategic intrusions by Chinese threat actors in Africa, designed to extend influence throughout the continent…against telecommunication, finance and government…”
- China: Nio electric vehicle firm launches its own smartphone, aiming for car systems integration for navigation and more, alongside announcing production of in-house auto semiconductors
- China: CellX completes successful trial of 200-litre fish cell pilot, working towards scale and cost-effectiveness for cultivated seafood
- China: EHang autonomous aerial vehicle firm invests in Inx Technology for solid-state lithium metal battery tech
- China: Huawei unveils Pangu Government Model to deliver large pre-trained AI models to manage city applications the country including gov’t services, office digitalization, city governance & more
- Ford US motor giant pauses work on $3.5BN Michigan factory set to make lithium iron phosphate batteries using tech and services provided by China’s CATL
- China Mobile and Huawei deploy WiFi network for Mount Everest tourist base camp and hotel to provide service to staff, tourists, businesses and administration
- Philippines: The recent Huawei Cloud Finance Summit Philippines 2023 event, building on Huawei Cloud’s 20-fold growth in just 4 years to become the fastest-growing cloud service in APAC
“Germany is considering a ban on parts made by Chinese manufacturers Huawei and ZTE in its 5G networks from 2026, government sources told AFP…”
“The changes to Germany’s 5G mobile networks run by Deutsche Telekom, Vodafone and Telefonica are ‘of high importance for the German government in terms of security policy’, according to a draft interior ministry document seen by AFP.”
- Malaysia: China’s xFusion, computer power and infra services firm, partners Malaysia’s NationGate for RM1.7BN global supply centre in Penang
- Indonesia may curb TikTok Shop platform, with Minister raising domestic small business impacts arising from ‘monopolistic’ practices around payments, logistics and platform influence
- Hong Kong: Chimbusco Pan Nation Petro-Chemical, HK’s largest shipping fuel supplier, announces first use of low-carbon biofuel for shipping
- Singapore: OCBC bank customers in the city-state can now make QR code payments in China under new Alipay partnership
- The Philippines’ Asia United Bank signs on with China’as Alipay+, enabling local merchants to take cross-border e-payments from Hong Kong, South Korea and Malaysia
August 2023
- Proposed People’s Republic of China Patriotic Education Law ‘codifies existing practices, but more importantly…expands…to include Hong Kong, Macau, Taiwan, overseas Chinese and the internet’
- UAE Ministry of Economy partners Huawei Cloud for Huawei Cloud Startup Program as part of UAE ‘The Entrepreneurial Nation’ initiative, aiming to lift the local startup ecosystem
- China: A brief look at recent policy issued to boost car sales, focusing on New Energy Vehicles such as electric cars and plug-in hybrids, with measures concerning infrastructure as well as financial incentives
- China: Cyberspace Admin proposes ‘minor mode’ programs to smart device providers, to bar under-18s from internet access on mobile devices from 10pm to 6am; instantly impacting share prices
- China: Intel partners Nanshan district government in Shenzhen, and local tech firms, for chip innovation, AI and edge computing centre, despite deepening US chip-related restrictions
- China’s proposed cyber limits: “Users aged 16-18 would be allowed 2 hours a day, children aged 8-16 would get 1 hour while children under 8 would be allowed just 8 minutes.”
- China: Tencent expands testing of Hunyuan AI model, integrating with Tencent Games, Tencent Advertising, QQ Browser, WeChat Search and Tencent Fintech
- China: GalaxySpace launches Lingxi-03, its 1st satellite with ultra-thin, flexible solar wings, 5% the thickness of standard panels, seeking large-scale, stackable launch of sat constellations
- China: Japan’s Toyota and China partner PonyAI ink JV to mass produce robotaxis using PonyAI autonomous drive tech and ride-hail services
- China: Alibaba Cloud open-sources 2 large-language AI models, Qwen-7B and Qwen-7B-Chat, aiming for multi-platform integration
- China: Spacemit CPU startup completes Series A funding of ‘several hundred million RMB’ backed by Lenovo, with focus on RISC-V chips, open-source architecture seen as workaround to restricted Intel and Arm chips
“While US rules…slowed down China’s development of advanced chipmaking…they left largely untouched the country’s ability to use techniques older than 14-nm. That has led Chinese firms to construct new plants faster than anywhere else in the world.”
China: “Though…tested in 25 cities, and 260M unique wallets hold a total of [$1.9 billion], last year e-CNY accounted for only 0.13% of the supply of central bank reserves and cash in circulation.”
- China: NIO EV firm to release its first smartphone, ‘NIO Phone, in Q3 2023 – running on Android tech
- China: Shenzhen to push Huawei support with move for gov’t bodies and state-owned enterprises to use HarmonyOS and EulerOS, Huawei’s Android and Linux alternatives, in bid to reduce foreign technology use
China: “…traders conducted $90BN in transactions on Binance despite a crypto trading ban in the country. [This] makes China Binance’s biggest market, accounting for 20% of global volume.”
China: “Dozens of companies feed a quantum-computing supply chain that did not exist a few years ago… The district is hardly a decade old; not long ago the most modern tech in the area was farming equipment”
- China: State-run Nat’l Natural Science Foundation launches $6.4M program for chiplets tech, adding to country’s bid for semiconductor self-sufficiency
- Thailand: An overview of Huawei Thailand Education Summit 2023, recently held in Khon Kaen province, building on goals set in Thailand National Digital Talent Development White Paper
- Malaysia: China’s EVE Energy lithium battery manufacturer breaks ground on new manufacturing facility – its 53rd – in Kedah, with initial investment of $422M
- India reportedly has barred domestic manufacturers of military drones from using China-made components over security concerns across communication functions, cameras, radio transmission and software
- India-produced equipment for China’s Tiangong space station hits export license delay, seen as likely in part due to border clashes and national security concerns
Taiwan is “…positioned to create…’red-free’ or ‘China-free’ defense supply chains that friendly countries, such as Australia and Japan, could leverage for their own military logistics”
- ICYMI: “New York City is banning TikTok from city-owned devices and requiring agencies to remove the app within the next 30 days.”
- OPPO 2023 Inspiration Challenge Regional Demo showcases winners in Bangkok, working on pain management, speech disorders, paper batteries and more
- South Korea’s NGeneBio, next-gen sequencing-based diagnostics firm, inks MOU with China’s MGI gene sequencing firm, aiming to grow NGeneBio cancer testing products globally
- Huawei, Denmark and a $200M Battle Over 5G, via Bloomberg: “…equipment deal spiraled into a saga of hidden microphones, drone encounters and covert surveillance, according to investigators…”
Taiwan: ‘…Flax Typhoon, “a nation-state actor based out of China”, has since mid-2021 mainly “targeted government agencies and education, critical manufacturing, and [IT] organizations…”‘
- “Baidu, ByteDance, Tencent & Alibaba have made orders worth $1BN to acquire about 100K A800 processors from [NVIDIA] to be delivered this year… further $4BN worth…to be delivered in 2024…”
- China: Switzerland’s Energy Vault announces commissioning of their first grid-scale energy storage system outside Shanghai, ‘storing’ electricity by elevating concrete blocks and lowering them to power turbines
- China: Control on apps tightens with requirement to file business details with gov’t, in part meaning overseas developers must have a company in China or work with a local publisher
- China: Shanghai Gov’t unveils ‘G60 Starlink’ project, constellation of upwards of 12000 satellites, with phase 1 seeing 1296 satellites in orbit – adding to 13000-satellite Guowang project, seen as SpaceX StarLink competitor
- China: Xingji Meizu, smartphone/consumer-tech firm from Geely EV firm founder, to discontinue chip design and development business
- China: Xiaomi smartphone giant now blocking Telegram from devices using its MIUI system and firmware, raising concerns over attempts to control access to information
- ‘The European Commission will analyse the US ban on new US investment in China in sensitive technologies as the issue is also important to [EU] economic security…’
- China: Galactic Energy hits multi-payload success with mobile launch system delivering 7 satellites spanning camera and imaging tech and space-ground comm’s, with sights on sea-based launches
- ICYMI: China’s Baichuan Intelligent Tech AI firm, just 4 months after formal launch, released its 3rd large language model, with this release its first ‘closed-source’ model, equipped with 53BN parameters
- ICYMI: Biden administration inks ‘executive order…block and regulate high-tech US-based investments going to China [on] advanced computer chips, micro electronics, quantum info tech and artificial intelligence’
- China: OPPO and Huawei add AI-driven voice-based assistants to products, including Huawei’s HarmonyOS
- China: Two lithium mine auctions in Sichuan province received near 7K bids with prices hundreds of times higher than starting levels
- Defaulted property firm, China Evergrande Group, gains $500M backing for EV unit from Dubai’s NWTN green mobility startup, delivering a 27.5% stake in China Evergrande New Energy Vehicle Group
- China: State bodies including government-backed chip fund to invest $1.7BN in Shenzhen’s CR Micro wafer production firm in ongoing bid to boost tech capacity and independence
- “China accounts for 90% of all blockchain patent applications in 2023 and 68% of all blockchain patents granted since 2009”
- China to establish recycling system for ageing wind turbines and solar panels, drawing industrial standards to decommission, dismantle, and recycle materials
“China continues to dominate the blockchain patent landscape, with 43,937 filings since 2009 and 68% of all blockchain patents granted. However, even China has not been immune to the global downturn…”
- China: Xiaomi smartphone maker gains state auto industry body approval to produce electric vehicles in move away from main smartphones business amid slumping demand
- China’s domestic e-CNY struggle: “…last year e-CNY accounted for only 0.13% of the supply of central bank reserves and cash in circulation.”
- China: Hangzhou Data Exchange launches, a blockchain-based platform to ‘facilitate the trading of enterprise information technology data using distributed ledger technology’
- China: TikTok to discontinue Storefront feature, no longer allowing merchants on Shopify etc to sync product catalogues to TikTok, in move to push TikTok Shop e-commerce platform
- China: Online platforms including Tencent Music removed live-streaming ‘lucky draws’ to minimize risks in state crackdown on illegal online gambling, taking a profits hit in the process
- Huawei and Ericsson ink deal providing rights to use each other’s cellular tech in network gear and consumer devices, in part a further move by Huawei to boost income from patents
- China’s hyper-subsidised domestic electric cars market hits the same problems the country’s e-bikes market struck in the past
- ICYMI: China’s Nanjing University in 2022 launched a metaverse-focused major, renaming its Info Engineering Dep’t to Metaverse Engineering Dep’t, signaling the space’s expected importance
- China’s Shein ‘fast fashion’ giant takes 1/3 stake in Forever 21’s SPARC Group, bringing 150M users to Shein’s platform and opening Forever 21 US retail locations for Shein growth
- China: XPeng to buy out Didi smart electric car division with sights on 2024 new mass-market EV brand launch, with VW recently investing $700M
- ICYMI: Synthetaic gains 5-year Microsoft partnership and near 1M hours of cloud computing with AI-backed imaging used recently to track surveillance balloon
- Macau’s Zence Object gains $2.5M from Alibaba Entrepreneurs Fund with tech turning organic waste – mainly tea leaves – into plastic and paper alternatives
- China: Inceptio driver-assist tech firm sees 2024 growth for very long-distance trucking, aiming to allow firms to run 1 driver rather than 2, reducing costs by 5-7%
- China: Shanghai sets sights on the metaverse as key driver of economic development, establishing a $1.4BN fund to create 30 culture and tourism metaverse projects by end of 2025
- Japanese gov’t to build Indo-Pacific information network in bid to counter cyberattacks, providing equipment and training to Pacific island countries that lack countermeasures
July 2023
- China’s Alibaba enters Spanish market with El Corte Ingles, Europe’s largest department store by sales, pursuing opportunities in digital retail and a common framework for omnichannel business
- ‘Having laid off more than half its US workforce and turned its attention to China, autonomous truck software pioneer TuSimple is taking steps to exit the US market it once led.’
- ‘Black Market A100s, and Twitter’s China Tech Connection’ from ChinaTalk
- “Led by a Chinese [VC] fund [Weichong Semiconductor Group] set up a sister company with the stolen technology in China and began to produce our technology and market to our customers from China.”
- Nikkei Asia: “Russia has for months been importing drones from Chinese companies explicitly for use in its invasion of Ukraine, despite denials from Beijing that such equipment is being deployed in the war…”
- China: Meituan purchases Light Year AI firm – from former director who resigned days ago. Light Year, founded in February, has no operating activities – but raised $230M at $1BN valuation
- China to add export controls on gallium and germanium, rare metals essential for semiconductors, citing ‘security concerns’
- China cyber-threat actor found targeting Foreign Affairs ministries and embassies in Europe, part of a growing trend in targeting of European entities in the foreign policy space
- China’s WeRide autonomous driving firm gains UAE’s first national license for self-driving vehicles, allowing tests of Level 4 autonomous vehicles on public roads across the country
- China: Tianlong-3 kerosene-liquid oxygen rocket with reusable first stage aims to be operational in 2024, capable of 17-ton payloads to low Earth orbit and focusing on ‘megaconstellation’ satellites
- China & semiconductor self-sufficiency: “…advanced lithography machine is a significant chokepoint in China’s chipmaking capability. In this area, domestic substitution is currently less than 1%.”
- China: Alibaba unveils Tongyi Wanxiang in bid to compete with OpenAI’s DALL-E and Midjourney, tho although generative AI services have yet to gain regulatory approval
“You can find your way to banned semiconductors at, for example, various sprawling electronics markets in Shenzhen. Or you can go online — specifically to Douyin…or Xiaohongshu…”
- China’s Ant Group announces surprise share buyback, valuing the fintech giant at $78.54BN, far below $315BN of abandoned 2020 IPO target, and following $984M regulatory fine
- China releases its first ‘homegrown’ open-source desktop operating system, OpenKylin – built on Linux
- China: LandSpace to attempt 2nd launch of Zhuque-2, medium-sized rocket powered by liquid oxygen and methane capable of 4000kg of payload delivery to 200km low Earth orbit
- China: “…social media companies will now be responsible for the authentication of all content posted…and suspend or prohibit users who have not been granted ‘profit-making permission'”
“…Chinese market had an edge…when AI was in the ‘age of execution‘ because it has a huge amount of market data and applications… But in the era of generative AI, AI went from ‘execution’ back to ‘invention’.”
- UN Industrial Development Org and others, including Huawei, launch Global Alliance on Artificial Intelligence for Industry & Manufacturing, for collaboration and knowledge-sharing
- China: Denglin Technology secures funding from state-run China Internet Investment Fund for development of GPUs capable of similar use cases to NVIDIA chips
- China: Huawei may return to 5G smartphone industry by year-end, using chips from its own semiconductor design tools and chipmaking from China’s Semiconductor Manufacturing International Co
- China: Biren chip firm is considering Hong Kong IPO, seeking to capitalise on demand for its AI chips as an NVIDIA alternative, due to chip exports ban impact
- China: JDcom e-commerce giant launches ChatRhino large language model, looking to bring AI to bear on a range of industries
- “…Intel Corp has brought its latest processor for…AI…applications to mainland China, where massive demand for…advanced chips has created a major under-the-counter trade for smuggled graphics processing units…”
“Foreign equipment is increasingly hard to come by so local chipmakers…buy more units of less-productive local offerings… Efficiency and profits take a hit but…statisticians log a rise in industrial production…”
- China: ‘Temu sellers are cloning Amazon storefronts’ – the ecommerce app faces lawsuits for copyright infringement after sellers allegedly copied products and stole photos and text from Amazon
- China: Galactic Energy marks 6th launch with 2 satellites in orbit, delivery hyperspectral imagery in very low Earth orbits
- China: Zhipu AI, spun-out from Tsinghua University and pegged as a challenger to OpenAI, gains backing from Meituan food delivery giant
- China: Sovereign chip strategy steps towards RISC-V, open-source architecture, aiming for RISC-V as default domestically, with Alibaba et al interested and over 1BN startup funding to date
- China Aerospace Science & Industry Corp plans very-low Earth orbit constellation of 192 satellites, providing info services every half hour, with expansion goal of 300 satellites
- China: Central bank calls on financial sector to help fund tech research and M&A, latest bid to revive a private sector challenged by 2-year regulatory crackdown
“..the US and most of its allies have already banned…Huawei from building 5G infrastructure… the next frontier of the US-China war is most certainly the ‘next-generation’ vehicles.”
- China: Foreign visitors can now pay Chinese retailers by linking overseas credit cards including Visa, Mastercard and Discover with WeChat Pay and Alipay, no longer requiring local bank account
- Australia: “…audit that found 3114 drones and other technology manufactured by DJI were in use by at least 38 agencies and departments.”
- National Bank of Cambodia inks MOU with China’s UnionPay, enabling UnionPay payments in Cambodia’s national QR system cross-border interoperability
“Cryptocurrency transactions are illegal on the mainland, where Beijing has also banned overseas exchanges…But in Hong Kong, crypto trading is legal and the city is seeking to become a digital assets trading hub.”
- “TikTok’s Australian director of public policy Ella Woods-Joyce said she knew there were offices in China but didn’t know where the ‘formal headquarters’ were.”
- India: China’s BYD EV maker reportedly seeking regulatory approval for $1BN investment, partnering Megha Engineering to manufacture electric cars and batteries, and with sights on charging network
- Singapore-based Lazada e-commerce giant gains $845M from Alibaba, further deepening Alibaba’s controlling stake in the company
- India: Gov’t rejects recently-rumoured bid by China’s BYD to build $1BN electric vehicles-focused factory, with national security concerns cited
- Hong Kong SAR and China regulators ink agreement on cross-border data flows in Guangdong-HK-Macao Greater Bay Area, under national data security management framework
“Facilitating data flow in the bay area is an important initiative for promoting the integrated and high-quality development of the bay area, lowering the compliance costs of enterprises and driving the development of Hong Kong’s digital economy and proactively integrating Hong Kong into national development,” the tech chief said in the statement.
The deal comes after China introduced new laws in recent years tightening controls on the transfer of cross-border data. The Data Security Law and the Personal Information Protection Law, which went into effect in 2021, impose tough penalties for the unauthorised collection, processing, storage and use of data generated in the country.
- Hong Kong: Court rejects gov’t attempt to ban broadcast or distribution of ‘Glory to Hong Kong’ protest song, online or in performance
- Japan and ASEAN to establish research center focused on free flow of data across borders in bid to counter China’s data restrictions, to maintain business ability to analyze markets
- Malaysia’s MY EG gains regulatory approval for blockchain-based customs clearance and processing on trade flows between the Philippines and China
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