This week your co-hosts dip back into current 5-year guideline to make sure we have a clear picture what's coming next in China. Then we take a look at Meituan's latest quarter, find holes in the great firewall, and talk about Kevin's misadventures in ed-tech. Listen now and join the conversation.

• The government's crackdown on Big Tech is a lever to get them to invest into the 5-year guidelines.
• Meituan's revenue jumps 120%, while the stock is down 40%.
• More anti-trust / anti-monopoly fines for the comminuty group buy grocery market.
• Alibaba and Tencent both have "internet accellerators" to help students access information from outside the GFW.
• New regulations in ed-tech attempt to reign in a fast growing sector
• Extra: Startups, join this global competition for funding and connections to China's hopping startup scene: HICOOL.

Today your co-hosts are joined by Leon Du, CEO of tech company Beansmile, to discuss the 14th 5 year plan and what it means for anyone looking to work in or with China. We all learn a lot about the history, the impact, and the mechanics behind one of China's major tools of government. We also learn a lot about what it means to be open, to be honest with yourself - and how to be a lovely human.

Tencent is clearly establishing itself as a world class technology company with $7.6 billion in profit for the quarter. Facebook reported $9.4B, Alibaba $1.6B (without fine).

• https://www.scmp.com/tech/big-tech/article/3134177/tencent-posts-65-cent-rise-first-quarter-profit-amid-tightening

The full text of the 14th 5 year plan, in Chinese.

• http://politics.people.com.cn/n1/2021/0313/c1001-32050444.html

Selected translations 

• https://pekingnology.substack.com/p/select-translations-of-the-14th-fyp

A brief summary from the Chinese press, in English

• https://news.cgtn.com/news/2020-11-07/What-is-China-s-14th-Five-Year-Plan-all-about--VdWpPn4CqI/index.html

 A piece from the New York Times

• https://www.nytimes.com/2021/03/10/business/china-us-tech-rivalry.html

BONUS: Current ongoing US legislation which is clearly a pointed response to Beijing's 5-year plan

• https://www.cnbc.com/2021/05/25/chip-shortage-democrats-gop-team-up-to-target-china.html

We'd also like to thank our wonderful guest, Leon Du, for sharing his time and his knowledge. His excellent company builds e-commerce tools and payment solutions to support the goal of "dual circulation". He can be found at http://beansmile.com.

This week your co-hosts dive into Alibaba's first operating loss since becoming a public company, but they're not too worried. They talk about Tencent's potential partnership with Xbox and the increasing value of IP (content). Kevin talks about how a beef-jerky company copies Apple, and Adeh tries to explain the implications of our AI future. Listen now and join the conversation!

This week's Chinese proverb: 当局者迷，旁观者清 - "The player is muddled, while the onlooker sees clearly"

Alibaba posts it's first operating loss, but it doesn't look all that bad

• https://www.cnbc.com/2021/05/13/alibaba-earnings-q4-net-loss-after-2point8-billion-antitrust-fine.html

Tencent Games is in talks with XBox, we're both excited

• https://techcrunch.com/2021/05/13/tencent-timi-xbox/

Beijing punishes apps that gather too much data, when will this happen to Facebook?

• https://www.scmp.com/tech/policy/article/3133493/beijing-removes-90-apps-crackdown-information-collection-flexing-new

Kevin's favorite "spicy gluten stick" maker has filed for and IPO

• https://www.dealstreetasia.com/stories/weilong-hong-kong-ipo-240563/
• And highlighting their incredible Apple-spoof design: https://lyceum18.wordpress.com/2016/11/17/cheap-chinese-snack-brand-spoofs-apples-design-the-people-love-it/

Chinese AI researchers release a competitor to GPT-3, sealing our future as batteries for the machines

• https://arxiv.org/abs/2104.12369

Zhang Yiming takes a bow, following in the footsteps of Colin Huang ($PDD) and Jack Ma ($BABA) - but is it the right time?

• ByteDance co-founder Zhang Yiming to step down as CEO

BONUS#1 - A well crafted look into what GPT-3 offes, which informs how Pangu might be utilized

• https://pudding.cool/2021/03/love-and-ai/

BONUS#2 - A look at the Chinese term 内卷 neijuan, or involution, and how the pressure of grades, work, and the economy shapes the outlook of China's working middle class.

• https://www.sixthtone.com/news/1006391/how-one-obscure-word-captures-urban-chinas-unhappiness

This week your co-hosts touch on a range of topics from the NFT craze to China's fitness boom. Adeh is vindicated, and Kevin ponders parties and late-night beer runs. Join the conversation and let us know what you think!

What are NFTs and how will they fit into the digital future

• http://www.sixthtone.com/news/1007240/how-nfts-are-transforming-chinas-art-market

Meme girl makes 500k from selling an NFT

• https://www.abc.net.au/news/2021-04-30/disaster-girl-meme-sells-for-500-000/100106366

Xiaomi wins lawsuit, american's can trade shares again

• https://www.bloomberg.com/news/articles/2021-05-12/xiaomi-u-s-government-agree-to-drop-firm-from-blacklist

Hello Bike set to go public

• https://technode.com/2021/05/01/hello-inc-becomes-first-chinese-bike-rental-firm-to-file-for-us-ipo/

Fitness chain rides the growing middle class to a 1+ billion valuation

• https://www.dealstreetasia.com/stories/supermonkey-unicorn-status-239876/

BONUS - How China is already using NFTs to cut down on red tape

• https://www.caixinglobal.com/2019-08-12/shenzhens-pilot-blockchain-based-invoice-system-a-roaring-success-tax-bureau-says-101449785.html

This week your co-hosts talk about Tesla in China, the recent PR debacle and how this all sounds too familiar. Then Adeh and Kevin do a deep dive into Meituan (whose market cap peaked at $341 bn USD earlier this year) as they consider who is next to be hit by Beijing's crackdown on tech in China. Your duo ends on an optimistic note - envisioning a bright future which embraces diversity - as they purview BlueCity Inc, a rising star Chinese LGBTQ+ tech platform.

Tesla has a China problem

https://technode.com/2021/04/22/chinese-authorities-demand-tesla-brake-data-following-protest/

Tencent and Meituan rumored next for Anti-monopoly probe:

• Meituan https://www.techinasia.com/alibaba-chinese-regulator-launches-antimonopoly-probe-meituan
• Tencent https://www.techinasia.com/sources-tencent-next-in-line-face-chinese-antitrust-regulators

More on Pony Ma / Tencent's $7.8 bn USD social responsibility fund https://pandaily.com/tencent-announces-50-billion-yuan-investment-in-sustainable-innovation/

Despite gov crackdown on tech, Meituan raises $10 bn USD cash to invest in hot community group-buy grocery and tech (autonomous driving)

• https://www.bloomberg.com/news/articles/2021-04-19/meituan-seeks-about-10-billion-in-stock-offering-convertibles
• https://www.bloomberg.com/news/articles/2021-04-20/meituan-ceo-who-bested-jack-ma-snags-10-billion-for-next-fight

Meituan founder Wang Xing's prolific start-up background

• https://en.wikipedia.org/wiki/Wang_Xing

BlueCity, Chinese LGBTQ+ ecosystem company, obtains Internet hospital license

• https://pandaily.com/owner-of-chinese-gay-dating-app-blued-obtains-internet-hospital-license-to-offer-mens-health-services/

Self-rectification, emotional aptitude and optics. Touchy-feely baloney or critical business issues which could decide the life or death of a company? 

Kevin and Adeh get introspective themselves and explore these concepts in the context of Chinese society and big China tech of today.

• Big tech falls in line behind the example set by Alibaba https://www.bloomberg.com/news/articles/2021-04-13/china-orders-34-tech-firms-to-curb-excesses-in-antitrust-review
• Tencent CEO pledges $7.7 billion to china's rural areas in efforts to appease the government https://www.bloomberg.com/news/articles/2021-04-19/tencent-s-ma-dangles-billions-in-aid-as-antitrust-scrutiny-grows
• Anti-monopoly law strikes against the big and small https://technode.com/2021/04/12/sherpas-fined-over-monopoly-on-delivering-food-in-english-in-shanghai/
• Ant Financial gets it's marching orders to re-organize https://www.ft.com/content/5c14c1d1-bd9e-4654-9a12-93c4ac46792d
• Didi preps for IPO at $100 billion valuation (compare Uber at $107B) https://www.bloomberg.com/news/articles/2021-04-09/didi-chuxing-is-said-to-have-filed-confidentially-for-u-s-ipo-knaqvotf
• JD Backed Aihuishou 爱回收 plans to list at a valuation of $4 billion China’s used electronics trading platform Aihuishou 爱回收 eyes up to $1b in US IPO
• BONUS - How Amazon uses it's market power to maintain control https://www.wsj.com/articles/amazon-strong-arms-partners-across-multiple-businesses-11618410439

This week your co-hosts take on China's 996 work culture, then jump into the frenzied pundit waters churned up by the announcement that Alibaba was fined 2.8 billion USD for using its monopoly power to harm competitors. Later, Adeh tries to convince Kevin that the digital yuan may take over the world! 

What do you think? Give it a listen and send us your thoughts.

• A recent trending post critical of 996 culture in Chinese tech companies https://www.sohu.com/a/457730317_113767
• Alibaba gets fined 2.8B USD for monopolistic behavior https://www.wsj.com/articles/alibaba-hit-with-record-2-8-billion-antitrust-fine-by-chinas-market-regulator-11618018830
• 100 start-ups have pulled plans to IPO in Shanghai after Ant Financial's 'failed' IPO and tightened scrutiny https://www.reuters.com/article/us-china-tech-exchanges-analysis/analysis-chinese-tech-start-ups-pull-ipo-plans-as-beijing-tightens-scrutiny-idUSKBN2BY0UL 
• US starts to take notice of the digital yuan, and what it could mean for the future https://www.scmp.com/economy/china-economy/article/3129161/china-digital-currency-biden-administration-steps-scrutiny-e

This week your co-hosts explore conflicting reports of Bytedance's valuation and pontificate on why that valuation is justified against the backdrop of China's tech landscape. They discuss more upcoming IPOs, including Xiaohong Shu and Xiaomi's big announcement.

Bytedance

• Some say the TikTok parent company is worth USD 250 billion https://www.bloomberg.com/news/articles/2021-03-30/bytedance-is-said-valued-at-250-billion-in-private-trades
• Or is it more? https://www.scmp.com/tech/big-tech/article/3128002/value-tiktok-maker-bytedance-approaches-us400-billion-new-investors
• What are they doing with this? Buying gaming companies to compete directly with Tencent https://www.reuters.com/article/us-bytedance-videogames-mooton-idUSKBN2BE0ES

IPOs

• Tencent-backed WeDoctor to IPO for $3bn USD in HK

https://kr-asia.com/key-stat-tencent-backed-online-hospital-wedoctor-files-for-ipo

• Xiaohong Shu, the sleeper review/e-commerce/social media app prepares for IPO 

https://technode.com/2021/03/26/social-commerce-app-xiaohongshu-hires-cfo-ahead-of-us-ipo/

Electric Cars

• Xiaomi announces plans to start producing EVs https://technode.com/2021/03/31/xiaomi-invests-1-5-billion-in-fully-owned-ev-business/
• And invest 10 billion over the next 10 years https://www.cnbc.com/2021/03/30/chinas-xiaomi-to-launch-electric-car-business-and-invest-10-billion.html
• Lei Jun's open letter https://kr-asia.com/a-letter-from-lei-jun-starting-over-one-last-time 
• China plans to phase out fossil fuel cars by 2035 https://www.weforum.org/agenda/2020/11/china-bans-fossil-fuel-vehicles-electric/#:~:text=By%202035%2C%20all%20new%20vehicles,remaining%2050%25%2C%20hybrid%20vehicles.

This week your co-hosts discuss Tencent's business success and cancel culture with Chinese characteristics. We end up with Kevin singing patriotic songs as Adeh comes to grips with an existential crisis:

Tencent

• Tencent has a blowout quarter with 9.1B in profit (compare Apple 28B, FB 11B, goog 15B) https://www.scmp.com/tech/big-tech/article/3126771/tencent-posts-175-cent-rise-fourth-quarter-profit-it-faces-tighter
• At the same time, the company is bracing for what's coming from the central government https://technode.com/2021/03/24/china-probes-tencent-for-antitrust-practices-report/
• Much of their revenue increase was due to games, and we saw PUBG hit 1 billion downloads worldwide https://www.theverge.com/2021/3/25/22350782/pubg-mobile-one-billion-downloads-tencent
• Scrutiny of US listed Chinese companies tightens, leading to Tencent Music losing a third of its value and then declaring a $1B USD of stock buyback https://www.reuters.com/article/us-tencent-music-buyback/tencent-music-announces-biggest-ever-1-billion-share-buyback-idUSKBN2BL06X
• Tencent's full annual report: https://static.www.tencent.com/uploads/2021/03/24/b83f5784d0579b51cf8515cf560b4256.pdf

Cancel Culture, China Style

• H&M has been scrubbed from the Chinese internet due to a remark posted on their website over a year ago https://techcrunch.com/2021/03/24/h-m-censored-xinjiang-cotton/
• Other western brands taking a stand face an increasing backlash and threats of boycott https://www.cnbc.com/2021/03/25/backlash-on-nike-hm-in-china-over-comments-on-xinjiang-cotton.html
• "Retailers may be caught between nationalistic Chinese consumers and conscientious ones at home" https://www.economist.com/business/2021/03/27/china-boycotts-western-clothes-brands-over-xinjiang-cotton

Xiaomi overtakes Huawei in global sales

• Xiaomi becomes the third largest smartphone seller, taking advatage of Huawei's troubles in overseas markets https://www.scmp.com/tech/big-tech/article/3126993/xiaomi-moves-past-struggling-huawei-no-1-chinese-smartphone-vendor
• And they are looking to thhe future as they make a move into Electric Vehicles https://www.reuters.com/article/us-xiaomi-electric-great-wall-motor-excl-idUSKBN2BI05P

Draft 5 year plan:

• https://www.nytimes.com/2021/03/10/business/china-us-tech-wecrivalry.html

WSJ is following us…

• Tencent as an investment powerhouse: https://www.wsj.com/articles/chinas-tencent-becomes-an-investment-powerhouse-using-deals-to-expand-its-empire-11614769545
• Wall Street finally picks up on what we’ve seen as inevitable for months -> Tencent valuation drops by $62B on news that they are next to be hit by gov anti-trust crackdown in fintech: https://www.bloomberg.com/news/articles/2021-03-15/tencent-loses-62-billion-wiping-out-value-of-fintech-business

ANTITRUST - A bunch of companies get fined 

https://technode.com/2021/03/12/chinese-regulator-fines-alibaba-tencent-didi-for-antitrust-violations/

PRIVACY - New rules limit how much information apps can collect, limit to "necessary", specifically prohibit "bundled consent"

• https://www.scmp.com/tech/policy/article/3126483/data-privacy-china-defines-first-time-necessary-information-apps-can
• Also from a Western news source: https://techcrunch.com/2021/03/22/china-regulation-data-collection-may-starts

ALIBABA app to get on WECHAT

• Previously anything Alibaba had been blocked out of the app by WeChat/Tencent - https://www.bloomberg.com/news/articles/2021-03-17/alibaba-to-open-up-deals-app-in-concession-to-antitrust-campaign

PinDuoDuo

• PDD becomes the biggest ecommerce company by userbase: https://techcrunch.com/2021/03/17/pinduoduo-surpasses-alibaba/
• Founder Colin Huang to step down and focus on Foodtech: https://www.scmp.com/tech/big-tech/article/3126018/pinduoduo-founder-colin-huang-says-he-stepping-down-chairman-focus