Category Archives: China

How WeChat faded into the silence in India | FactorDaily

Long in depth read on not just WeChat but a few of the Chinese companies trying to win in India.

The whole thing is good but the summation is spot on.

How WeChat faded into the silence in India | FactorDaily:

Sahai says that for Chinese companies mainly those supported by the BAT (Baidu, Alibaba, Tencent) trio, China market is always the core business and the rest of the market is an expansion, which creates some sort of inertia when dealing with the competition here in India.

But, it has become increasingly clear that India as a market cannot be generalised. As Sajith Pai, who works with VC firm Blume Ventures, puts it, India is divided into three consumer segments: the first 100 million, mainly the urban or affluent Indians and are the main targets of indulgent e-commerce brands; the second 100 million classified as the aspiring class; and the last a little over a billion — three segments he calls the splurgers, strivers and survivors.

Pai says that most global companies investing in India, including Apple, Facebook and Instagram are aware of this graph and think of India as a secondary market by targeting the first 100 million. Things may be changing from the WeChat days with a new crop of Chinese companies trying to cater to the new 100 million, including rural India, new internet users and youngsters. Case in point: MX player, NewsDog, Shareit, and UCBrowser that cater to the new internet users in India have a higher chance of surviving in India because they understand the new Indian users better.

Still, unlike China where there is a big government-initiated push for a common language and similar culture, cultural diversity in India, like lack of a common language, city structures, and economic disparity makes it difficult to generalize the Indian market. That’s the lesson that Tencent – and, indeed, the BAT trio – seems to have learnt and are only investing in large Indian companies.

Advertisements

KKR’s Kravis Sees Southeast Asia Winners in U.S.-China Trade War – Bloomberg

I guess a contrarian view of sorts where the USA/China trade war benefits SEA region. Possible but I assume there will be pain before the possible gains.

KKR & Co. is seeking to invest more in Southeast Asia, where companies are poised to benefit from the U.S.-China trade dispute, according to the private equity firm’s co-founder Henry Kravis.

— Read on www.bloomberg.com/news/articles/2018-10-02/kkr-s-kravis-sees-southeast-asia-winners-in-u-s-china-trade-war

China’s secret startup advantage: liquidity | TechCrunch

China’s secret startup advantage: liquidity | TechCrunch:

Faster liquidity can push cycle of returns, fundraising, reinvestment

This is the struggle with the SEA ecosystem. Just not enough liquidity yet to create the magical cycle.

USA and China have it. India with some of their monster exits creating some secondary action to enrich employees is crawling towards it.

As some of the big unicorns in SEA start to make some employees rich – there will be some mini cycles around that.

One should not knock what SEA and Razor of done to help get this going as well.

 

Thoughts from my recent Beijing trip (Bill Bishop’s Sinocism China Newsletter)

The whole post is great – and scary. Say what you will about Trump or Obama or USA politics but global relations between USA and China souring – is not good for anyone.

No matter where you live.

The stuff on the economy below is not good.

Thoughts from my recent Beijing trip:

US-China — While we have no public idea what if anything happened at Beidaihe, I heard consistently that the key theme of any discussions about US-China relations that may have occurred was whether it made sense to find a way to make concessions to the US without looking weak, or whether the trade pressure is just one piece of a multi-dimensional strategy to “thwart China’s rise”. Before you dismiss the idea that President Trump could be strategic remember that there are some very knowledgeable, “hawkish” and experienced “China hands” working in key parts of the bureaucracy. And even if there is not one the Chinese side will always lean towards embracing the idea of a broader conspiracy and strategy.

I believe that Xi has decided the US is intent on keeping China down, and while there may be some exploratory efforts to see if a palatable deal exists that mitigates some of the worst of the trade tensions for as long as possible, I do not expect the PRC side to make concessions approaching those demanded by the US in May, even if they are now being slightly watered down. Assuming President Trump holds firm, the tariffs and other measures will likely only increase in intensity over the coming months, perhaps until one or both sides have felt enough pain to reconsider.

Outside the trade issues I see little reason for optimism. If Xi and his team have come to believe the real goal of the US is to keep China down across all dimensions then we should expect much more friction and competition. Bloomberg had an interesting story Friday about this shift. I would not be surprised if we spoke to some of the same people:

This is also freaky:

I recommend this article by Zach Dorfman – Botched CIA Communications System Helped Blow Cover of Chinese Agents:

It was considered one of the CIA’s worst failures in decades: Over a two-year period starting in late 2010, Chinese authorities systematically dismantled the agency’s network of agents across the country, executing dozens of suspected U.S. spies. But since then, a question has loomed over the entire debacle.

How were the Chinese able to roll up the network?

Now, nearly eight years later, it appears that the agency botched the communication system it used to interact with its sources, according to five current and former intelligence officials. The CIA had imported the system from its Middle East operations, where the online environment was considerably less hazardous, and apparently underestimated China’s ability to penetrate it…

The former officials also said the real number of CIA assets and those in their orbit executed by China during the two-year period was around 30, though some sources spoke of higher figures. The New York Times, which first reported the story last year, put the number at “more than a dozen.” All the CIA assets detained by Chinese intelligence around this time were eventually killed, the former officials said.

If this account is accurate, it matters not only because it shows shocking negligence but also because US intelligence likely went from having decent visibility into the PRC leadership and its intentions through the latter years of the Hu Jintao period, to probably being nearly blind as Xi Jinping rose to power and into today. This loss of visibility could not have happened during a worse or more dangerous period. And now we understand better the Party’s recent, increased obsession with foreign spies…

If you want to get smarter about China – you should subscribe :: https://nb.sinocism.com/subscribe

Asia Tech Review: August 6 2018 | Revue

Totally agree with Jon on this. Let’s wait to see what they ship but doesn’t make one feel any better about Google.

Asia Tech Review: August 6 2018 | Revue:

As I said on Twitter, Google has done a lot more than most to help increase internet adoption in India, Southeast Asia and other markets through initiatives such as free WiFi, data-friendly apps, and even ‘lite’ versions of Android. Arguably this all serves the purpose of widening the market it can monetize, but the impact is positive for all. However, its seemingly financially-motivated return to China – and 180-degree flip on opposing censorship – threatens to remove any positive sentiment about its business and progress in Asia.