East West Hurricane

Welcome to East West Hurricane! 🌪

We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

Follow us on Twitter and Instagram! ⚡️

Indian Podcast Consumption Rising Because of the Coronavirus

* In India, people are increasing the amount of time they spend listening to podcasts. Major Indian podcasting companies like Gaana Podcasts and Aawaz.com have seen double to triple digit growth in listeners over the first half of 2020. With new increases in time spent on digital entertainment due to the coronavirus, the podcasting industry is one of the main beneficiaries. With a lot of local video production paused by the coronavirus, this also gives Indians another reason to listen to podcasts.

* This behaviour mimics similar trends we are seeing in the West. Time spent listening to podcasts has been steadily increasing over the last five years and the trend has continued through the coronavirus. As podcasting gets bigger, so does the commercial opportunity. More advertisers are looking to podcasts as a marketing channel to reach new audiences and Indian consumers can provide one of the world’s biggest audiences.

Donald Trump’s New Target Might Be Ant Group

* Ant Group, the Chinese tech company spun out of Alibaba, is planning an IPO later this year that would value the company at around $250 Billion. That would be the biggest IPO of all time and is going to take place as a dual listing in both Shanghai and Hong Kong. Given US-China tensions, some American politicians are looking to impose new regulations on Ant Group. Donald Trump is reportedly exploring sanctions against Ant and its payments app Alipay. US Senator Marco Rubio has also proposed measures to delay Ant’s IPO.

* Ant Group is a Chinese company that will be listing on stock exchanges in Chinese locations and the overwhelming majority of their customers are Chinese. Compared to TikTok’s huge international userbase, it’s less clear how the US can affect the outcome of Ant Group. I don’t think the US government will be able to create any major hurdle for Ant Group right now, but it might send a message of caution for any large Chinese tech company looking to do business in America.

NBA Finals Finally Gets CCTV Broadcast in China

* Ever since the general manager of the Houston Rockets Daryl Morey tweeted in support of the Hong Kong protests in October 2019, the NBA has faced increased scrutiny by the Chinese government and public backlash from segments of the Chinese population. Since then, CCTV (China’s state broadcaster) has not shown a single NBA game in the country. However, CCTV has finally decided to start airing NBA games again, starting with Game 5 of the NBA Finals last weekend.

* I’m often optimistic about the ability of culture and entertainment to overcome politics. The NBA has made major efforts to repair their relationship with the Chinese government and Chinese people. Of course, not everyone hated the NBA because of Daryl Morey’s comments, but the negative PR in China was big enough to cause a major blow to the sports organisation. Moving forward, this move by the CCTV indicates that the NBA should be on good footing to do business within their biggest international market. At the end of the day, I think people on all sides of the issue can put aside their differences, even just temporarily, in order to unite over their common love for basketball.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

Welcome to East West Hurricane! 🌪

We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

Follow us on Twitter and Instagram! ⚡️

The BTS Live Virtual Concert That Broke Records

* Over the last weekend, K-pop group BTS hosted a two-day virtual concert that was watched by nearly 1 Million people from 191 countries. People could watch the live concert from a variety of different angles and much like the virtual fans of sports leagues like the NBA, BTS fans could have their faces featured on screens at the stadium where the group was performing.

* This is the second virtual concert BTS has hosted this year. The first took place in June and was called “Bang Bang Con: The Live.” Technology like augmented reality and virtual reality was used to make the concert even more visually impressive and interactive. Several K-pop groups, like many other musicians, have hosted virtual concerts this year but this latest BTS concert broke the Guinness World Record for most viewers of a livestreamed performance. This cements their position as the world’s biggest musical group.

Baidu Releases Free RoboTaxis in Beijing

* Baidu is the company behind China’s biggest search engine and is sometimes referred to as the Google equivalent in China. Similar to Google’s own work in autonomous vehicles, Baidu has been doing a lot of research in autonomous vehicles. Last weekend, Baidu kicked of a program of self-driving robotaxis in the city of Beijing called Apollo Go. For a test period from October 10 to November 6, people in Beijing will be able to hail Baidu’s electric robotaxis for free.

* The Apollo Go vehicles currently only drive within a predetermined set of specific routes but there are ambitious plans to expand further as soon as possible. Baidu isn’t the only tech company releasing self-driving vehicles. Others include projects from their rivals WeRide, Didi, and AutoX. Autonomous vehicles in China are progressing at a similar rate as the West, arguably even faster. When surveyed, Chinese consumers are currently more comfortable with self-driving cars vs. American consumers. As the world moves towards more autonomous vehicles, keeping an eye on progress made between rivals in China and the US is a look into the future of transportation.

Shenzhen Pilots New Digital Lottery Powered by Blockchain

* In the Chinese city of Shenzhen, local residents will be able to enter a lottery to win up to 10 Million yuan ($1.47 Million) of digital currency. For people who register for the lottery, they will be getting the chance to earn a digital ‘red packet’ of 200 yuan ($30 USD). In order to register, people will need to use iShenzhen, the local blockchain-based public services platform created by Shenzhen’s government. Blockchain is the decentralised technology behind many digital cryptocurrencies like bitcoin and ethereum.

* If someone is chosen as a winner, they will receive their red packet through the official government digital wallet. Right now, you can use this digital currency to buy goods at a select number of stores across Shenzhen, but can’t transfer it to another person or into your own bank account. To those of you interested in the adoption of digital currencies, you’ll realise that this move by Shenzhen’s government is incredibly bold. China has goals to become a completely cashless society and believes that a digital yuan, backed and controlled by the government, is the best way to achieve this. While not everyone is going to support this idea, it’s going to be fascinating to see how China’s aggressive adoption of digital currency affects the country’s financial services industry.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

I had the great pleasure of interviewing Jay Thornhill. Jay is an Australian-American whose one-year stay in China has lasted thirteen years. He is a cofounder and Head of Product Development at Baopals.Near the end of 2015, Jay and two close American friends, Charlie and Tyler, set out to make China’s largest online shopping platforms accessible and convenient for non-Chinese. They had no experience in ecommerce, no funding or guanxi, and plenty of legal, financial and technological uncertainty. However, they knew this problem needed to be solved, and there was nothing in the market like the solution they wanted.On March 1st, 2016, they launched Baopals (baopals.com). Baopals is a bridge to all products and sellers from Taobao, Tmall and JD, updating in real time and catered to foreign shoppers. In 4 years, the platform has helped expats in China purchase over 4 million items for CNY250 million in gross merchandise value. 

* What are the most exciting trends you are seeing in China today?

* The speed with which China and its people build new infrastructure, adopt new technology, and take up new habits is a sight to behold. It’s taken for granted now that you can purchase anything you want with a few clicks on the phone and have it delivered to your door quickly and cheaply. Easy access to low-cost products and services is nothing new here, but consumers’ preferences are evolving too. Because China’s economy and culture changed so drastically the past 50 years, the generation gap might be wider here than almost anywhere in the world. The younger generation tends to be more open-minded, competitive, individualistic, and optimistic. A growing number want to carve their own paths, take more risks, try out more hobbies and interests, and live a more varied lifestyle than previous generations. It’s all relative, and China remains far off from the individualism and “pursuit of happiness” ethos of American culture, so it’ll be interesting to see what kind of balance is struck going forward.

* How has the coronavirus affected your business and other businesses in your industry?

* At the start of 2020, the outbreak looked as if it was going to have a dramatic effect on China but not the rest of the world. A lot of expats in China hurried to fly back home or travel while waiting for COVID to get contained in China. Since Baopals is built entirely for non-Chinese shoppers, we saw a drop of about 35% in sales almost overnight as expats fled the country. Then the outbreak turned into a worldwide pandemic and the borders were closed, so it became clear to us we weren’t getting those customers back for a while, and we wouldn’t benefit from new foreigners arriving in China for a while.

* Because of lockdown measures, we had nearly all of our staff working remotely in February, which meant there were 3 or 4 of us working in a 3-story house built for a team of 50 and costing us an arm and a leg. Without an end in sight, we built new backend tools to better manage remote work, including a fully automated points and rewards system for our staff. When we saw how well everyone was working from home, we decided to ditch the office and we never looked back. The pandemic forced a lot of companies and individuals to experiment with remote work, and I think many have found it to be more viable than expected.

* Our numbers rebounded more quickly than expected, possibly from shoppers preferring online shopping more now than in pre-pandemic times. With the improved efficiency we’re set up nicely for growth, and we’ve recently soft launched international service to do just that.

* What is one thing people outside of China misunderstand about the region

* Over the years I’ve become a bit guarded whenever the topic of China comes up with family or friends back home. I have to first assess whether they are genuinely curious about Chinese people and my experience in China, or whether they’re merely seeking to confirm views shaped by western media. If it’s the latter, then they likely won’t be receptive to certain ideas. For example, that many expats feel they enjoy more freedom and opportunity in China than they did in their homelands. Or the idea that Chinese people are not brainwashed – at least, no more brainwashed than the average person nowadays. Most Chinese are proud of their country’s achievements without blindly agreeing to all of the ruling party’s politics. They tend to be defensive when China is criticized, and they’re justified in feeling that western media has a negative bias towards China. The truth is often more nuanced than what is presented, and western media typically avoids anything positive that might be said about China. When one’s homeland is criticized by those who have little to no experience with the country, some defensiveness is to be expected. 

* What are some companies you admire in China?

* China’s tech giants deserve a lot of admiration. Alibaba built the world’s best shopping platform in Taobao, with the most products at the best prices. The only problem is that it was built entirely for Chinese – and therein lay the opportunity for us to create Baopals, making Taobao easy for non-Chinese to enjoy.

* Tencent has created, in my opinion, the most useful app in existence. WeChat has grown from a typical messaging app to a do-it-all digital platform that those in China can’t imagine living without. It’s an ecosystem for social life, payments, media, online shopping, gaming, events, and a wealth of other services. One of the first things we did as a company was create our official WeChat service account, which allows users to easily shop on Baopals without leaving WeChat. The bulk of our content and payments come through WeChat, so much so that in over four years we still haven’t built stand-alone apps (they are coming, though!).

* I’m also a big fan of other platforms that make life in China more convenient, including DiDi (China’s Uber, with incredibly low fares and an English version to boot), Ele.me and Meituan for food delivery, and Hello Bike or Mobike for biking all over the city.

* What is the single most important piece of advice you would give to someone trying to get their business to thrive in this time period?

* If there’s any one-size-fits-all advice, it’s to focus on profitability above all else. That may seem obvious, but this seems to be forgotten all too often in the startup scene today. In the second year of Baopals, we got caught up in the hype of top-line growth, media attention, and potential fundraising instead of focusing on what really matters: the bottom line. Our sales doubled while our net profit fell nearly 70%. Once we shut out the distractions and honed our focus on profitability, we found all kinds of ways to improve efficiency and earnings. With the right focus, you can grow your net earnings and improve cash flow even when top line sales are falling. That helps you get through difficult times and thrive on the rebound.

Quickfire Questions

A - What’s the best thing you have watched recently? (Film, TV Show, Ted Talk, Youtube Video, etc.)

* I’m enjoying the sci-fi series Raised by Wolves, about androids attempting to raise children and build a colony after leaving a post-apocalyptic Earth. It’s well crafted, visually stunning, and thought provoking. I always enjoy science fiction for being imaginative and exploring the unknown, while ultimately being about us. It’s also a great way to take my mind off anything that might be stressing me out in the real world!

B - What’s the best thing you have read recently? (Book, Article, Research Report, Tweetstorm, etc.)

* I’m a big believer in Bitcoin, and there are a lot of exciting things happening in the crypto space these days. Bitcoiners have long anticipated corporations and central banks beginning to hold Bitcoin reserves, so the recent news that MicroStrategy allocated the vast majority of its cash reserves (over $400 million) to Bitcoin feels like a watershed moment. News just broke that Square has also begun purchasing Bitcoin, and no doubt more corporations are discussing how to do the same.

C - What’s the best thing you have listened to recently? (Song, Album, Artist, Podcast, Audiobook, etc.)

* “Burn the House Down” by AJR. Never mind the dark lyrics; you can’t help feeling good and adding bounce to your step with this song playing. 

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

I had the great pleasure of interviewing Michael Yang, CEO of TikTok Agents. TikTok Agents is a California-based TikTok Marketing and Advertising agency. Michael is originally from China, went to university in the US, and has worked across several companies in gaming and consumer tech.

Michael’s professional and educational background gives him perspective on the East and West that I don’t hear often enough. I really enjoyed reading his answers and hope you will too.

* What are the most exciting trends you are seeing in China today?

* There are so many trends happening in China right now. 5G and AI both unleash great imagination and prospects for the country. As far as the industry I am working in, I think the most promising sector in the near future is the new consumer retail industry. With the rapid development of platforms such as Douyin and Kuaishou, the time for a brand to go from creation to becoming a major player in the market is getting shorter and shorter. And the whole integration of online e-commerce stores with brick-and-mortar stores is getting better and better. I think in the near future, online and offline will be fully integrated. Merchants will be able to comprehensively evaluate and quantify store performance from multiple dimensions, and consumers can also have a better shopping experience.

* How has the coronavirus affected your business and other businesses in your industry?

* I run a TikTok marketing & advertising company in the United States. This year, affected by the pandemic, billions of people left their jobs and were forced to stay at home. It is during this time period that many creators jumped into TikTok to become TikTok influencers. Many users also found joy and relaxation by coming to TikTok. This has brought TikTok rapid growth in its worldwide user base, including rapid expansion in the US.

* Therefore, in terms of overall environment, the pandemic has created favourable external growth for TikTok. Of course, the impact of the pandemic is reflected elsewhere. For example, because of shelter in place in California, our team was forced to work online. This was the first time that I led the team through online collaboration. This is a new challenge for me and the team. Fortunately, our business is mainly online. We were able to accomplish most of our online tasks seamlessly, but we still need to improve on management and collaboration.

* What is one thing people outside of China misunderstand about the country?

* Wow, this is a very big topic. I think first, it depends on how you define the term “people outside of China.” I have lived in the US and the UK for the past 10 years, talking with people in different cities and different places. I have heard highly prejudiced opinions or bias about China, and I have also heard far-sighted and considerate views about China. I think this mainly depends on the person’s positioning and experience. Just like me 10 years ago, when I first set foot in the United States, I discovered that the United States was completely different from what I saw on TV in China. I only discovered and felt all of these things by experiencing them in person.

* Overall, a lot of foreign people have a fixed stereotype that the Chinese government uses heavy-handed control to suppress the people, and the Chinese people will need to accept rules that may lead to a lack of human rights or freedom. But in my opinion, China is a completely pragmatic country and society. The Chinese government’s management model is totally results-oriented. For example, since the start of the epidemic, many Western media outlets have blamed the Chinese government for shutting down Wuhan. However, the fundamental reasoning of the government is that everything needs to be results-oriented. They were controlling the pandemic, reducing the speed of spread, and halting the number of infections and casualties. That is the purpose of their work.

* So the foreigners were surprised and worried about human rights when the Chinese people were willing to accept the government’s compulsory control during the pandemic. Meanwhile, the Chinese people were worried and surprised about the irresponsible and ridiculous actions of foreign people who refused to wear masks and quarantine.

* An important concept in economics is the trade-off between fairness and efficiency. An excellent social structure is able to maximize efficiency while ensuring fairness. In my view, Western society emphasizes fairness, while Chinese society emphasizes efficiency. The same principle is applied when we talk about doing business in China. If the result can be achieved in a short time, no matter what measures one may possibly use, it will be the most favorable choice.

* What are some companies you admire in China?

* Personally, I admire Bytedance. Bytedance’s products are very attractive and have strong user stickiness. As a young CEO, Zhang Yiming manages a team of more than ten thousand people. He has strong leadership and personal charisma, which makes him a role model for our generation.

* What is the single most important piece of advice you would give to someone trying to get their business to thrive in this time period?

* Hard times create heroes. The mission of starting any business is to solve problems and create value. In this year of frustration, loss, risks, and challenges, each of these “problems” need a solution. And every one of these solutions means an opportunity. So difficult times may also be a good thing for entrepreneurs. Without these problems, how can you talk about starting a business after all?

Quickfire Questions…

A - What’s the best thing you have watched recently? (Film, TV Show, Ted Talk, YouTube Video, etc.)

* The BBC’s documentary—The Planets. When I start to look up in the sky and realize how small human history is, I feel humbled and relaxed.

B - What’s the best thing you have read recently? (Book, Article, Research Report, Tweetstorm, etc.)

* The Deer and the Cauldron - a historical fiction novel written by Jin Yong. It depicts precisely Chinese characteristics and values. I recommend it strongly if you are interested in knowing more about Chinese culture and social behaviours, especially the way government interacts with normal people.

C - What’s the best thing you have listened to recently? (Song, Album, Artist, Podcast, Audiobook, etc.)

* 10 Minutes of relaxing meditation music

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

Welcome to East West Hurricane! 🌪

We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

Follow us on Twitter and Instagram! ⚡️

China’s Box Office Recovering Better Than Expected 🎞

* In the midst of China’s famous Golden Week holiday season, Chinese movie theaters are getting more business than expected. Total box office receipts in China within the first few days of Golden Week were $368 Million, which is 14% lower than the same period last year. Cinema owners have been pleasantly surprised by the recovery, citing facts that Chinese people might have more need for cinema entertainment, especially since they cannot travel overseas for this year’s Golden Week.

* On the other hand, the world’s second biggest cinema operator Cineworld announced that they will be cutting 45,000 jobs across the US and UK. While Western films like James Bond’s No Time to Die and the latest film version of Dune have been postponed until 2021, most domestic Chinese blockbuster films are still coming out this year, contributing to the optimism of China’s film industry. For many people working in Hollywood, China has been slowly rising over the past few years to become the most important cinema market. With the coronavirus, that entire process may have sped up.

Stats around Livestreaming = Huge in China 🎥

* I’ve been enthusiastically writing about Chinese livestreaming for a few months in this newsletter. A recent report has come out saying that there were 309 Million e-commerce livestreaming viewers over the first half of 2020. That’s one third of China’s total internet population. This makes livestreaming the fastest growing internet sector in China. People from rural farmers to lawyers to property developers to major tech CEOs are now using livestreaming to sell products.

* Could we soon see a world where livestreaming becomes popular in the West? Certain cultural and technological factors make livestreaming more relevant to Chinese audiences right now, but the authenticity and interactivity of livestreaming is something I think will become more popular across the world. Western social apps like Instagram are already experimenting with this and I only see this trend growing even further.

A TV Network in the Philippines Turns to Streaming 📺

* The largest TV network in the Philippines, ABS-CBN, has been denied a broadcasting license by the government, forcing the network to go off the air in June. Part of this stems from a dispute between the network and Philippine president Rodrigo Duterte. While ABS-CBN has struck a partnership with another network in order to create a new brand that will start broadcasting on free TV later this month, ABS-CBN has still been forced to get creative over the last few months.

* Instead of closing down, ABS-CBN has shifted all of their programming to social media and their own streaming platform iWantTFC. While ABS-CBN’s core business is still reliant on success in broadcast TV, they have seen good results from their online platforms in terms of views and new digital subscription revenue. They say necessity is the mother of invention. I foresee a world in the future where major networks are online-only, rather than TV broadcast networks. While ABS-CBN had to do this because of a government order, the world is moving into the direction where even the most traditional TV companies are shifting to digital.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

Welcome to East West Hurricane! 🌪

We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

Follow us on Twitter and Instagram! ⚡️

China’s Golden Week is Tourism Health Check 🗺

* Right now is China’s ‘Golden Week,’ a national holiday that usually involves people traveling both domestically and internationally. Given the coronavirus, most people in China are adjusting to how they approach Golden Week this year. China’s tourism ministry reported that 425 Million people have travelled domestically within the first four days of Golden Week, which is lower than the 542 Million people from last year. Overall tourism revenue from the first half of Golden Week is reported to be $45.9 Billion, which is a 31% decrease from the same time last year.

* Trip.com, China’s largest online travel agency, has said that domestic travel bookings are at about 80% of pre-pandemic levels. These numbers are all very large, but overall shows a decline in travel and tourism-related spend. While restrictions have been pretty much lifted and people still flocked to major tourist sites this week, the travel industry is still in trouble. This shows signs of recovery, but there’s still a long way to go before consumption and tourism reaches pre-Covid levels and people feel safe enough to travel.

Burberry is First Luxury Brand On Chinese reality TV 🧣

* Much like in the West, reality TV shows are a super popular category in China. As I’ve written about before, some of the most popular Chinese shows are based around street culture—like hip hop and street fashion. One example of this now is the show “Street Dance of China,” a hit show produced by streaming platform Youku. For brands, these reality shows are great opportunity to form a creative partnership and get in front of young audiences.

* Well Burberry has now become a trailblazer as the first Western luxury brand to partner with a Chinese reality TV show, “Street Dance of China.” Burberry has launched a co-branded box with the show and souvenirs from the show have also been featured as free gifts with certain Burberry purchases. And there was a special livestream on Tmall, where people could buy a limited edition Burberry item inspired by the street fashion on the show. In a world where it’s difficult for a brand to stand out, especially in China, having more of an integrated commerce partnership with a hip, young TV show will probably work better than just running ads.

Alibaba Partners With Swiss Duty Free Giant

* Chinese e-commerce giant Alibaba has just announced a partnership with Swiss company Dufry, the world’s largest operator of airport duty free shops. Dufry was founded in Basel, Switzerland in 1865. The two companies have now entered a joint venture where Alibaba purchased a 10% stake in Dufry for $273 Million. People estimate that the logical next step is for Alibaba to start launching airport duty free stores across China. Right now, the state-owned China Duty Free Group dominates airport stores across the country.

* When I think of offline commerce, I usually don’t think of airport duty free stores. However, duty free retail in China has grown 31% over the last two years, reaching a size of $7.6 Billion. Alibaba is always looking for growth, and this partnership with Dufry gives them much more legitimacy to get into duty free retail. At the same time, Dufry is aware of the huge opportunities in China that could be essential to the future of the company.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

Welcome to East West Hurricane! 🌪

We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

Follow us on Twitter and Instagram! ⚡️

Netflix Releases Controversial Indian Documentary ‘Bad Boy Billionaires’ 💰

* There’s a new show on Netflix called ‘Bad Boy Billionaires,’ which profiles four Indian billionaire businessmen who are currently under investigation for fraud. Netflix had planned to launch the show last month but Subrata Roy of the Sahara Group had filed an injunction preventing the show from being released. Since Roy is one of the four billionaires profiled in the show, his legal team argued that the show would damage his reputation. However, an Indian state court lifted an injunction over the last week and now ‘Bad Boy Billionaires’ is live on Netflix in India.

* Netflix has faced some challenges in India before, receiving complaints and censorship challenges against content deemed offensive. From Netflix’s perspective, the company is arguing for free speech and their own financial well-being. The new ‘Bad Boy Billionaires’ show is just the latest incident the American company is facing in their Indian operations. The four billionaires they chose to profile have some of the most high profile legal cases in the country—Roy is currently out on bail and two of the other billionaires are currently in the UK facing extradition to India.

India Plans To Launch Their Own App Store 📲

* Last week, a group of prominent Indian tech companies formed a coalition against Google’s Play Store, vowing to create their own app store. This comes after Paytm, India’s largest tech startup valued at $16 Billion and with 350 Million users, was pulled from the Google Play Store—a decision Paytm’s CEO called ‘arbitrary’ and “a sanction by an American company on an Indian one.” Google’s reasoning was that some of the cashback and prize functionality of Paytm violated their policies against online casinos and gambling.

* Google also had plans to create a new 30% fee for any in-app purchases in the Indian Play Store in 2021. This caused particular outrage for Indian startups as in-app purchases are a primary revenue driver for Indian startups vs. Western startups. Due to pressure from this Indian coalition of companies lobbying against the Play Store, Google announced yesterday that they are deferring this new 30% fee to 2022. At the same time, Paytm has launched their own mini-app store. Indian technology companies are developing more clout. This bold decision would have been unthinkable a decade ago, and the Indian companies would have had significantly less leverage.

China Investigates Google’s Android Mobile Operating System 🤖

* Meanwhile in China, the Chinese government is planning to launch their own antitrust investigation into Google’s Android mobile operating system. The antitrust complaint was initially filed by Chinese tech company Huawei, who is accusing Google of anticompetitive practices that have hurt local Chinese companies. An official investigation is expected to be announced soon.

* There are many motivations behind this. The tensions between the US and China spill over from politics into business. It’s not a coincidence that Huawei is filing the antitrust complaint against Google, as Huawei has been blacklisted by US President Trump. The ongoing drama regarding the forced sale of Tiktok adds even more fuel to the fire. And looking beyond international politics—we can see both in India and in China that Western tech giants like Google are getting more and more pushback, which is a function of the growing leverage of Asian countries. And unfortunately for Google specifically, the company is now being accused of antitrust violations both in the US and China!

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

I had the great pleasure of interviewing Ken Uehara, an award-winning filmmaker based in London who currently works at UniDays and previously worked at UNILAD. Ken is half-Dutch, half-Japanese, and grew up in Manila, Philippines.

Having lived and worked in both the East and West, Ken has great perspective that you’ll see in this interview!

This interview is an experiment in audio and video. Compared to all the previous written interviews, you will have the opportunity to listen to the audio interview above or the video interview below.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

Welcome to East West Hurricane! 🌪

We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

Follow us on Twitter and Instagram! ⚡️

Disney’s Asian Hope Is The Realest Fairytale 🏰

* It’s a tough time for Disney. Earlier this week, the company announced that they will be laying off 28,000 employees in the US, primarily people working at their theme parks. Disney has laid part of the blame on California’s governor Gavin Newsom, who refuses to allow Disneyland to reopen. Disney is truly an international company and outside of the US, they have theme parks in Paris, Hong Kong, Shanghai, and Tokyo. While all of their parks closed down earlier this year, the Asian parks are now back open.

* Shanghai Disneyland reopened in May; Tokyo Disneyland reopened in July; and Hong Kong Disneyland reopened last week, after a couple months closure between July and September. Parks and resorts is the single biggest revenue driver for Disney. Given their restrictions in California, Disney should be looking to their Asian properties as their biggest opportunity for immediate growth. While Disney has suffered from the poor reception of the recently released film Mulan, they can look to their Asian parks as a potentially strong revenue stream in the time of covid. For now, it looks like Disney’s potential Asian customers could have a bigger impact on their bottom line than their Western customers.

Apples Launches New Public Health Initiative in Singapore 🍎

* Apple has partnered with the government of Singapore to launch a new mobile app called LumiHealth, which provides users with a personalised program to encourage healthy physical activity through the Apple Watch. This is one part of a broader program created by the Singaporean government called the Smart Nation Initiative, where technology will be used to find solutions to improve the lives of all Singaporeans. The LumiHealth app was a joint project by Apple, the Singaporean government, and a group of physicians and public health officials. The app provides users with a set of wellness challenges that they can complete using their Apple Watch.

* The app is meant to be very interactive, personalised and provide strong incentives such as cash rewards. Users must have an Apple Watch and must download the LumiHealth app in order to participate. From my point of view, I have more faith in technology companies providing better wellness solutions than government. But what could be even better is a public-private partnership, like this one between Apple and the Singaporean government. And honestly, if you were to rank the world’s governments by level of competence, Singapore would be near the top of the list. Apple gets more Apple Watch sales and App downloads, and the Singaporean government should get healthier citizens. Considering the scrutiny Apple is facing from many governments around the world, getting into a cozy relationship with Singapore’s government should have long-term benefits.

Declaring The Golden Age of Southeast Asian Tech 🏆

* Tech in Asia is a brilliant publication covering Asian tech news. You may remember my interview a couple months ago with Andrew Baisley, Managing Director of Tech in Asia Studios. From October 19-22, Tech in Asia is hosting a Virtual Conference called “Southeast Asia’s Golden Age: 2021 and Beyond.” The enthusiasm of that title is underscored by some key takeaways and highlights Tech in Asia has put together in this article, which talks about the biggest growth drivers, opportunities, and challenges in Southeast Asian tech.

* Over the last two years, the top-funded startup vertical in Southeast Asia has been logistics and transportation, indicating the need for the fundamental infrastructure of the digital economy. Covid poses challenges to the growth of the tech industry, but there are still untapped opportunities in verticals like food, health, education, and more. These facts are just a preview of a full report that goes into much more detail. You can get the full report by signing up for the 2020 Tech in Asia Virtual Conference! At the end of the day, Southeast Asian tech is at an all time high, and growth is expected to rebound in spite of the coronavirus. The young, fast growing, dynamic region of Southeast Asia can’t be stopped.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com

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We update you on the most essential news from Asia in tech, media, and business—the things you need to know that you probably haven’t heard in Western media.

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Lessons from China’s Domestic Tourism 🛫

* All over the world, professionals in the travel industry are struggling because of the coronavirus. In China, the tourism industry isn’t doing as poorly as you might expect and right now, Chinese domestic tourism is going through a strong recovery. From all time lows at the beginning of the year, the Chinese domestic tourism industry has emerged out of the global pandemic by doing some innovative things. Livestreaming has been used as an entertainment/commerce channel for most travel companies, who are using livestreams enthusiastically to sell products.

* Ctrip, China’s largest online travel agency (OTA), has put on several livestreams hosted by their co-founder James Liang. On each livestream, James Liang really puts himself out there by dressing up in traditional Chinese outfits and selling products related to major domestic tourist destinations. And each livestream has sold millions of dollars worth of products. Airlines, hotels, and destinations are all using livestreams to sell aggressive discounts. For example, China Eastern airlines now has an ‘all you can fly deal,’ which allows you to travel on an unlimited number of domestic flights over a several month time period. You can find even more examples in this presentation from Jing Daily and Dragon Tail Interactive. I hope other countries can take some inspiration from the Chinese travel industry.

The ASEAN Tourism Plan 🌏

* A.S.E.A.N. stands for the Association of Southeast Asian Nations, which is an intergovernmental organisation you might think of like the UN of Southeast Asian countries - Singapore, Indonesia, Thailand, Philippines, Malaysia, Vietnam, Brunei, Myanmar, Cambodia, and Laos. All of these countries have suffered from drops in tourism due to the coronavirus. Beginning with an agreement on joint tourism cooperation several months ago, the ASEAN nations are trying to work together in order to encourage more inter-country tourism.

* Malaysia and Singapore currently allow cross-border travel for essential services, and Tourism Malaysia is looking to open up a travel bubble with other ASEAN nations. Vietnam has also proposed a travel bubble with their ASEAN neighbors. Unfortunately, new covid spikes keep pushing back these well-intentioned plans. In the short term (and for who knows how long), we’re moving to travel bubbles that will first start opening up at a regional level, such as within ASEAN, within Europe, or between Australia and New Zealand.

Thailand’s Wealthy Tourist Strategy 💸

* Next week, Thailand will begin receiving its first foreign tourists, flying into Phuket from Guangzhou, China. Since April, foreign visitors haven’t been allowed into Thailand. The tourism industry makes up 11% of Thailand’s GDP, and is expected to contract dramatically this year. On the flipside, Thailand might have a tourism advantage, since there have been zero cases of local transmission of the coronavirus over the last hundred days. This might make Thailand appear to be a safe, attractive tourism destination.

* At the same time, Thailand is looking into a broader mass-scale border opening at the beginning of next year. The Thai government has also discussed the possibility of issuing new special tourist visas to attract more foreigners and new local investment incentives to attract international investors to come to the country. Two days ago, I wrote about the Japanese government creating a new startup visa category for foreign university graduates. Because of the coronavirus, it seems that every Asian country will slowly start rolling out new incentives to attract foreign tourists, investors, and businesses. So if you’re looking to travel, work, or live in Asia in the near future, you may have more options now than ever before.

This is a public episode. If you would like to discuss this with other subscribers or get access to bonus episodes, visit eastwesthurricane.substack.com