Hello and welcome to TipsClear’s China Roundup, a digest of recent events shaping the Chinese tech landscape and what those events mean to the rest of the world. This week, we are seeing the tech companies behind China increasing their anti-China sentiments. In China, one of the world’s largest trade fairs virtually closed.
China tech abroad
Boycott of chinese technology
China Apps is facing major challenges in India after China Apps, making it easy for users to remove services related to China. Although Google has pulled the app, anti-China sentiment will increase the likelihood of Chinese apps in India as political tensions rise between countries. In recent times, many Indian celebrities have supported the removal of Chinese apps. Yoga guru Baba Ramdev tweeted a video over the weekend, showing him removing multiple apps with affiliation with China.
Decoying with Chinese technology may not be easy in practice. According to Counterpoint data, four of India’s top five smartphone brands are Chinese, three of which belong to the Ennematic BBK Electronics Group based in Shenzhen. These Android phones typically come with a suite of Chinese utility apps, so users need to find alternatives that leave them Chinese options.
China tech back home
Tencent cloud powers mega trade show
The coronovirus outbreak is prompting people to bring everything online – including mega-size trade shows. This week, Tencent announced that it would provide the technical infrastructure to digitize the Canto Fair, China’s oldest and largest trade fair, which was postponed due to coronavirus and was later virtually derailed from 15 to 24 June. Rescheduled to run.
The project is no small feat for Tencent. Last year, the trade show, which took place in China’s major trade city Guangzhou, came down to just 200,000 buyers, with turnovers reaching nearly $ 30,000.
The social networking and gaming giant, which has a growing cloud unit, will deploy over 1,300 acceleration nodes in several 30,000 countries and handle several hundred exhibitors and buyers (100 of these acceleration nodes will be in China).
The virtual system will support essential trade show functionalities such as matches between exhibitors and buyers, product demonstrations via video, and interactive live streaming.
The project will also acquire users for Tencent’s enterprise-facing services, which have become the epicenter of the new development of the giant. For example, Tencent Meeting, a Zoom equivalent, can host up to 300 participants per session. According to App Annie, the app is currently the most downloaded iOS “business” app in China.
ERP startup Jushitan raised $ 100 million
Jushitan, a six-year-old Shanghai-based startup focused on ERP (enterprise resources planning) tailored to e-commerce, announced the completion of a $ 100 million Series C round led by Goldman Sachs. Goldman Sachs managing director Sun Mengji said China’s consumer-related Internet companies are on par with their American counterparts in many ways, but the country is still “5–10 years behind in the field of enterprise software”.
The firm’s software-as-a-service solutions have served more than 500,000 e-commerce customers in China, but it is seeking overseas expansion – which will use some of the proceeds from this round of funding. The fresh capital will help upgrade Jushitan’s products and services, work on its integration into supply chains, as well as allow it to invest in or acquire other companies.
Jushuitan is betting on the need for digitization in China’s large-scale online retail industry, which has seen a boom since the early 2010s. Chief executive and founder Luo Haidong said in a previous interview that the “watershed” in Chinese e-commerce occurred around 2013–2014.
“When e-commerce first emerged, stores were able to sell all their inventories until they managed their orders well. But as the number of stores increased and growth slowed down after 2014, there was a greater need for improvement in management. I clearly felt that the market was demanding an integrated system for managing orders, warehouses and supply chains – which gave Jushitan a great opportunity. “