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China’s XR Development 101: How Chinese Tech Giants are Navigating Towards the Metaverse

Chinese tech giants are massively investing in virtual reality and in the technologies that are building up the Chinese metaverse.

Jialing Xie

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Virtual, Augmented, and Mixed Reality technologies are blurring the lines between the real and digital worlds and are powering the metaverse. Chinese tech giants are at the forefront of the latest developments on the mainland market, including XR, that are making the metaverse possible. Time for a round-up of what China’s key players are focusing on and which virtual initiatives are already live.

2021 is the year in which the concept of ‘metaverse’ has blossomed. In March of last year, the hugely successful online multiplayer game and game creation system Roblox went public with a market value of over $41 billion at the time, earning its reputation as the world’s first metaverse IPO.

Following the release of the 2021 sci-fi comedy Free Guy – which is set in a fictional metaverse-like video game, – and Facebook’s rebranding to ‘Meta’ last fall, ‘metaverse’ became one of the hottest buzzwords on the internet.

The term metaverse is actually decades old. In the 1981 novel True Names, the American computer scientist Vernor Steffen Vinge already envisioned a virtual world that could be accessed through a brain-computer interface, and the term ‘metaverse’ was first mentioned in the 1992 Snow Crash science fiction novel by Neal Stephenson.

Now, 5G, AI, VR, Blockchain, 3D modeling, and other new technologies converged on the concept of the metaverse industry are seeing an explosive growth in China.

At the recent 20th Party Congress, it became clear once again that the digital economy is key in China’s long-term strategies, with Chinese leader Xi Jinping promoting digitalization as one of the new “engines” of future growth.

 
About Metaverse (元宇宙) in China
 

In Chinese, ‘metaverse’ is referred to as yuányǔzhòu (元宇宙), which is a literal translation of ‘meta-verse’ – meaning ‘transcending universe’ (超越宇宙). Chinese tech sources also describe the year 2021 as “the metaverse year” (元宇宙元年).

Metaverse is a collective, shared virtual realm that can interact with the real world and where people can interact with each other and the spaces around them. There is not just one single metaverse – there can be many digital living spaces referred to as the ‘metaverse.’

Metaverse is a fluid concept or virtual experience that is still developing and due to the differences in cyber regulations, digital ecosystems, and strict control on online information flows, the Chinese metaverse will unquestionably be very different from the metaverse spheres that companies such as Facebook are working on.

The metaverse is made possible through a wide range of technologies including AI, IoT, Blockchain, Interaction Technology, computer games, and network computing. XR is key to the rise of the metaverse. XR, or Extended Reality, is an umbrella term for a range of immersive technologies including VR (Virtual Reality 虚拟现实), AR (Augmented Reality 增强现实), and MR (Mixed Reality 混合现实). A 2020 Deloitte report suggests that the global XR market consists of mainly VR technologies (48% of market share), followed by AR (34%) and MR (18%).

In December of 2020, Tencent’s CEO Ma Huateng (马化腾) announced the concept of the “All-real Internet” (全真互联网) in a special internal publication regarding the company’s growth and major changes. Ma proposed that the deep integration of the virtual and real world, the “All-real Internet,” is the future opportunity to focus on as the next stage of the (mobile) internet. Although there are some subtle differences, Ma’s idea of the “All-real Internet” overlaps with the concept of the metaverse.

The metaverse, XR, and related technologies are not just a hot issue for Chinese tech companies, they are also an important theme for Chinese authorities. The 20th Party Congress was by no means the first time for China’s leadership to stress the country’s focus on the latest digital innovations. In October 2021, President Xi Jinping also spoke about evolving China’s digital economy during the 19th CPC Central Committee. He asserted that one of the focal points within the development strategy of China’s digital economy is the further integration of digital technologies and real-world economies.

This idea was further clarified in the outline of the 14th Five-Year Plan issued by the State Council at the end of 2021, which listed VR and AR as one of the seven key industries of China’s digital economy along with cloud computing, IoT, AI, and others.

Subsequently, many local governments incorporated metaverse (“元宇宙”) and related relevant terms into their respective 14th Five-Year Plans. For example, Shanghai authorities stated it will focus on the further developments of industries related to quantum computing, 3rd-gen semiconductors, 6G communications, and metaverse.

Here, we will provide an overview of XR industry development in present-day China, going over the key players Baidu, Alibaba, and Tencent (BAT) along with the younger Chinese tech giant ByteDance. We provide an overview of what they are investing in, what their respective strategies are when it comes to XR, and give examples of the kind of initiatives that they have already launched. To limit the scope of this article, we have left out Netease, Huawei, Bilibili, and some other relevant Chinese players for now (we might still make a part two later on!).

 

Key Players and Strategies

 

 

▶︎ BAIDU

 

As one of the leading artificial intelligence (AI) and internet companies in the world, Baidu specializes in internet and AI-related products and services. Baidu is mostly known as China’s number one search engine, but its ambitions go far beyond that. “We want to be like Amazon Web Services (AWS) for the metaverse,” Ma Jie (马杰), vice president at Baidu, recently said.

The company has taken a special interest in building the infrastructure to support metaverse-related projects, deviating from the strategies that focus more on the XR-related content development and distribution that you see at Tencent or Bytedance.

 

What’s Happening?

 

Investments

◼︎ iQiyi (爱奇艺), one of China’s top media streaming platforms (sometimes also referred to as the ‘Chinese Netflix’), released its all-in-one virtual reality headset ‘Adventure Dream’ in December 2021 powered by Snapdragon XR2. Baidu owns 53% of iQiyi and holds more than 90% of its shareholder voting rights.

 
Research & Development

◼︎ Baidu launched the ‘Baidu VR Browser’ on July 15, 2016, becoming China’s first browser powered by webVR technology.

Xirang

◼︎ In 2017, Baidu launched ‘Baidu VR’ platform, which is now offering a wide range of VR-related software and hardware products and services, including the Baidu VR Headset, VR Creation Center, AI app, and XiRang (希壤), which is referred to as China’s “first metaverse platform.”

 

What’s Live?

 

 
Retail

◼︎ In 2018, Baidu VR and UXin Limited, a Chinese online used car marketplace, jointly developed VR 360° interior panoramas that put viewers in the driver’s seat to see how interior details come together and to better understand the details of each vehicle such as scratches, wheels and engine models.

◼︎ Baidu’s ‘Meta Ziwu’ (元宇宙誌屋Meta ZiWU), a virtual space within XiRang, hosts various fashion shows for international brands. In August of 2022, Italian luxury fashion house Prada livestreamed its Fall 2022 collection within the interactive realms of ‘Meta Ziwu,’ and so did Dior, the French fashion house which has also launched its first-ever metaverse exhibition “On the Road” (在路上) via Meta Ziwu.

 
Social Networking

◼︎ In late 2021, Baidu launched its metaverse project XiRang (希壤, ‘the land of hope’) as “the first Chinese-made metaverse product.” In December, Baidu held ‘Baidu Create 2021′, a three-day annual developers’ conference in a virtual world generated by the XiRang platform, hosting 100,000 people on one set of servers at the same time. Baidu’s Vice President Ma Jie, also Head of the Metaverse XiRang project, shared that the main goal behind this project is to lay the infrastructure of the metaverse by providing developers and content creators with the tools to build their metaverse projects.

Chinese architect Ma Yansong (马岩松), founder of MAD architects, also works together with Meta Ziwu as a virtual architect.

 

▶︎ALIBABA

 

Founded in 1999, Alibaba is one of the world’s largest e-commerce and cloud computing companies in Asia Pacific. Its massive success in e-commerce also established Alibaba’s leading position in artificial intelligence and other key technologies that have supported e-commerce, as well as in the future of metaverse.

As one of the biggest venture capital firms and investment corporations in the world, Alibaba struck several deals with prominent XR companies including Magic Leap and Nreal to gain footing in the Extended Reality industry.

As for R&D, Alibaba’s ambition in becoming the world’s fifth-largest economy led to a strong emphasis on technological research and XR-focused innovation and the founding of DAMO Academy.

Within the field of XR, Alibaba primarily focuses on two aspects: underlying technology solutions (e.g. cloud computing) and XR application in its own core business model (e-commerce).

 

What’s Happening?

 

Investments

◼︎ In February 2016 and October 2017, Alibaba led the investment rounds in Magic Leap, an augmented reality firm headquartered in Florida.

◼︎ In March of this year, Alibaba led a $60 million investment round of Beijing-based augmented reality glasses maker Nreal. Nreal, founded in 2017, has since launched two AR glasses for the Chinese market: Nreal X for developers and content creators and Nreal Air for regular consumers. Nreal Air glasses have been released in Japan and the UK in February and May of this year. In addition to AR glasses, Nreal also cooperated with iQiyi, China Mobile Migu, Weilai, and Kuaishou to develop AR content.

 
Research & Development

◼︎ In March 2016, Alibaba announced its own VR research lab, GM LAB ( ‘GnomeMagic’ Lab), which aims to power its e-commerce platform and other subsidiary businesses such as the VR content production for its film and music platforms.

◼︎ Alibaba registered several metaverse-related trademarks, including “Ali Metaverse.”

◼︎ In 2021, Alibaba’s DAMO Academy, a global research program in cutting-edge technologies, launched ‘X Lab’ that focuses on research in key areas related to the metaverse industry, including quantum computing, XR, and xG Technology. Tan Ping (谭平), the former Head of XR Lab, shared several of their ongoing projects at the time. One example he mentioned is the virtual character Xiaomo (小莫), who is very versatile and can, among other things, convert textual information into sign language to enable smoother communication for the hearing impaired.

Xiaomo by Alibaba can turn spoken text into sign language.

‘X Lab’ is also experimenting with making history come alive through virtual initiatives. Recently, Alibaba’s cloud gaming platform Yuanjing made it possible for visitors at their Alibaba Cloud’s Apsara conference to virtually visit the Xi’an Museum and check out its artifacts via mobile phone or laptop, or to have an immersive experience of the Tang dynasty’s imperial palace complex, powered by automatic 3D space creation and visual localization technology.

 

What’s Live?

 

eCommerce

◼︎ In November 2016, Alibaba launched the Mobile BUY+ feature in Taobao mobile apps in light of its annual Single’s Day Global Shopping Festival. With VR headsets and the app, China-based Taobao shoppers could experience shopping in-store at Target, Macy’s, or Costco in the US and other malls located in countries such as Japan and Australia.

◼︎ As Alibaba constantly keeps innovating its e-commerce landscape, its research institute DAMO Academy, in collaboration with its licensing platform Alifish, rolled out an XR-powered marketplace on Alibaba’s e-commerce platforms Tmall and Taobao for its November 2022 Single’s Day festival that allows consumers to visit virtual shopping streets and shop for merchandise as their own customizable avatars.

Entertainment

◼︎ In 2021, Alibaba led a $20 million Series A financing round of DGene, a virtual reality and immersive entertainment developer. Among others, DGene creates digital influencers or can even recreate historical figures based on its AI-driven technologies.

Dong Dong was launched as the first virtual brand ambassador for the Winter Olympics in 2022.

◼︎ For the Olympic Winter Olympics in 2022, Alibaba launched Dong Dong, a digital persona developed by Damo Academy using cloud-based digital technologies. Dong Dong was able to engage with fans and online viewers through livestreams, respond to questions in real time, and she even hosted online talkshows.

 

▶︎TENCENT

 

As a multinational technology and entertainment conglomerate with the highest-grossing revenue in the world, Tencent has the financial resources to gain an upper hand in technological innovation through acquisition and investment. In 2021 alone, Tencent made a total of 76 investments in Gaming, accounting for 25.2% of Tencent’s total investment throughout the year – a 9.3% increase compared to 2020. Tencent is now the biggest gaming company in the world.

Tencent also ramped up the company’s total headcount working in R&D department by 41%, accounting for 68% of its total workforce in 2021.

Although XR is used to create immersive experiences in different industries including healthcare, manufacturing, or education, its primary fields are still gaming and social – which just so happen to be Tencent’s main focus areas. It is therefore perhaps unsurprising that Tencent, as the country’s Gaming & Social giant, has made XR part of its core business.

 

What’s Happening?

 

Investments

◼︎ In 2012, Tencent made an investment in Epic Games, the owner of Unreal Engine which powers well-known video games such as Fortnite, purchasing approximately 40% of the total Epic capital, making it the second largest shareholder. Epic Games’ major businesses span across RT3D game engine (Unreal), in-house developed games (Fortnite), and platform games. This investment is one of the reasons why Tencent conquered a leading position in the metaverse realm when it comes to games.

◼︎ As early as 2014, Tencent already tapped into the VR market by investing in social VR platform AltspaceVR, which was later acquired by Microsoft in 2017.

◼︎ In May 2019, Tencent and Roblox announced a joint venture in which Tencent holds a 49% controlling stake.

◼︎ In September of 2021, Tencent became the new investor behind Beijing-based VR game developer Vanimals (威魔纪元), known for its flagship games Undying and Eternity Warriors VR.

◼︎ In November 2021, Tencent joined the $82M Series D fundraising of Ultraleap, the world leader in mid-air haptics and 3D hand tracking. Ultraleap’s hand-tracking platform has been built into multiple platforms including Qualcomm’s XR and VR devices.

◼︎ In March 2022, Tencent invested in the Chinese AR glasses manufacturer SUPERHEXA (蜂巢科技) holding 7.3% of its shares.

 
Research & Development

◼︎ In 2015, Tencent announced its avant-garde VR Project ‘Tencent VR,’ a plan consisting of building its own VR games and releasing Tencent Virtual reality software development kits (VR SDKs) to support other VR game developers.

◼︎ As of September 2021, Tencent applied for registration of nearly 100 trademarks related to the metaverse, including “Tencent Music Metaverse” (腾讯音乐元宇宙).

◼︎ In June 2022, Tencent officially set up its XR department led by its Interactive Entertainment Division (IEG) game developer NExT Studios. During Tencent’s annual gaming conference SPARK 2022, the Head of IEG, Ma Xiaoyi (马晓轶), shared Tencent’s ambitions in charting all segments of the VR industry in the next 5 years, from developer software tools and SDKs to VR hardware, to consumer-facing content.

◼︎ NExT Studios, which is the youngest studio within the Tencent Games family, has partnered with the Shenzhen-based FACEGOOD, a 3D content generation technology company that is focused on building metaverse infrastructure.

 

What’s Live?

 

Gaming

◼︎ At ChinaJoy 2019, the largest gaming and digital entertainment exhibition across Asia, Tencent launched its cloud gaming solution on its WeGame client, allowing users to play several games instantly without a download. In December of that year, Tencent Games and global leader AI hardware & software leader Nvidia announced a new partnership to launch the START (云游戏) cloud gaming service for PC and console titles.

◼︎ Following the Sino-American joint venture with Roblox in May 2021, Tencent officially launched the Chinese version of Roblox (罗布乐思) topping the App Store free game list in July of 2021.

 
Social Networking

◼︎ In November 2021, Tencent led a $25 million Series A funding in the British developer Lockwood Publishing best known for the metaverse app Avakin Life, which allows users to create 3D characters and socialize in the virtual community.

◼︎ During the Lunar New Year in February 2022, Tencent’s instant messaging software QQ launched a new feature called “Super QQ Show” (超级QQ秀), which is an upgrade of its ‘QQ Show’ service that’s been running since 2003. Super QQ Show allows users to create their own 3D avatars and use them in an interactive context. It added AI face recognition and rendering. The platform is an interesting one for brands. Fast-food chain KFC even has its own restaurant in this virtual world.

Visiting KFC in the Super QQ Show.

◼︎ In the summer of 2022, the Tencent-backed app developer company Soulgate Inc., which operates the social networking app Soul, applied to be listed on the Hong Kong Stock Exchange. Tencent is the largest shareholder holding 49.9% of the shares. Soul is a virtual social playground with the mission of “building a ‘Soul’cial Metaverse for young generations” where users can connect with other users through the virtual identity they develop in the app. The majority of its users, nearly 75%, belong to Gen-Z.

 
Entertainment

◼︎ On New Year’s Eve of 2021, Tencent Music Entertainment (TME) Group launched China’s first virtual social music platform TMELAND, where users can create their own avatars and interact with each other through their “digital identity.” It’s worth mentioning that TMELAND was powered by the ‘Hybrid Edge-Cloud Platform Solution’ developed by XVERSE (元象科技), which was founded by a former Tencent executive committed to building a one-stop shop for 3D content development.

Coca Cola zone in TMLAND.

Recently, Coca-Cola partnered up with TMELAND to open a new metaverse zone, accessible via the TMELAND mini-programme on WeChat.

 

▶︎BYTEDANCE

 

Known as “the world’s most valuable startup,” the Bytedance success story started with the algorithm-powered Toutiao (头条 ‘Headlines’) in 2012, a news and content platform that personalizes content for each user based on their own preferences. The Bytedance app TikTok (Douyin in China) conquered the world as one of most successful Chinese apps internationally.

Bytedance is a social networking leader, but is also focused on its in-house development in VR/AR. By 2021, Bytedance had completed at least 76 investment events, more than the previous two years combined.

From ByteDance’s activities in the XR industry, the company seems to have its strategy primarily focused on hardware, content development, and distribution across gaming, social networking, and entertainment industries.

 

What’s Happening?

 

Investments

◼︎ As early as 2018, Toutiao (Bytedance’s core product) acquired VSCENE (维境视讯) a Beijing-based solution provider for VR Live streaming.

◼︎ In July 2020, Bytedance participated in Series A funding of Seizet (熵智科技), an industrial automation company that provides a 3D industrial camera and software.

◼︎ In February 2021, Bytedance invested in Moore Threads (摩尔线程), a company that specialized in visual computing and artificial intelligence fields. In November last year, Moore Threads announced it has developed China’s first domestic full-fledged graphic processing unit (GPU) chip. Along with 5G communications, Wi-Fi 6, cloud computing, and chip technology, GPU is considered one of the main infrastructure technologies of the metaverse.

◼︎ In August 2021, ByteDance acquired Chinese VR hardware maker & software platform Pico for approximately $771 million to support its long-term investment in the VR ecosystem. By the end of Q1 2022, Pico is estimated to hold a 4.5% share of the global VR market, following Meta which is the dominant global player (90%). This year, Bytedance has set a higher sales target for Pico headsets to reach 1.6 million device output. To meet its VR industry goals, Bytedance is investing more into promotion and hiring more staff for Pico to catch up with or even surpass Meta’s Quest.

◼︎ In June 2022, ByteDance acquired PoliQ (波粒子), a team specialized in making virtual social platforms that allow users to interact with one another using their self-invented avatars in the virtual world. Jiesi Ma, the founder of PoliQ, is appointed to lead the VR Social department at ByteDance.

 
Research & Development

◼︎ To boost its entire VR ecosystem, Pico is engaging in more partnerships with Hollywood’s major film studios and leading streaming media companies in China (iQiyi, Youku, Tencent Video, Bilibili, and so on). In July 2022, Pico hosted Pico WangFeng@VR Music + Drifting Fantasy concert which leveraged 3D 8K VR Live Streaming technology to create a “magical” and immersive visual musical experience. By wearing Pico’s VR headsets, the audience can enjoy Wang’s performance from 5 different angles and as close as a meter away.

 

What’s Live?

 

Gaming

◼︎ On February 22, 2021, Bytedance released its game development and publishing brand Nuverse (朝夕光年). To date, Nuverse has launched several successful games through APAC and the western markets including “Burning Streetball” (热血街篮), “Houchi Shoujo” (放置少女), “Ragnarok X: Next Generation” (RO仙境传说:新世代的诞生), “Mobile Legends: Bang Bang”, and “Warhammer 40,000: Lost Crusade.”

◼︎ In April 2021, Bytedance put another US$15 million into Chinese Roblox competitor Reworld (代码乾坤), a platform for creating game worlds and playing games using the company’s own simulation engine.

 
Social Networking

◼︎ In September 2021, Bytedance launched its avatar app Pixsoul in Southeast Asian markets and Brazil. Users can create personalized avatars and use them to socialize.

◼︎ In January 2022, Bytedance launched a beta version of its virtual social app “Party Island” (派对岛) where users can make friends with people sharing similar interests and hang out with avatars in various virtual settings such as parks and movie theaters. However, the app was reportedly removed from app stores again and its date of relaunching is unknown.

 
Entertainment

◼︎ In September 2021, TikTok introduced its creator-led NFT collection titled “TikTok Top Moments” where TikTok will feature a selection of culturally-significant TikTok videos from some of the most beloved creators on the platform. Powered by Immutable X, users can ‘own’ a moment on TikTok that broke the internet and trade the TikTok Top Moments NFTs.

Li Weike, image via Pandaily.

◼︎ In January 2022, ByteDance bought a 20% stake in Hangzhou Li Weike Technology Co., Ltd. (Li Weike, 李未可). The company aspires to build China’s first AI+AR-powered glasses that connect users with the virtual idol Li Weike, a digital character built by the company to help users with various tasks and essentially provide users with social and emotional support.

 

By Jialing Xie and Manya Koetse

 

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Jialing is a Baruch College Business School graduate and a former student at the Beijing University of Technology. She currently works in the US-China business development industry in the San Francisco Bay Area. With a passion for literature and humanity studies, Jialing aims to deepen the general understanding of developments in contemporary China.

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Chapter Dive

China’s CITIC Tower Crash: The Story That Never Trended

How information surrounding the CITIC Tower crash was managed, from a five-day media blackout to a sixth-day official narrative.

Manya Koetse

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🔎 Originally published in Eye on Digital China.
My premium newsletter covering the stories, memes, debates, and viral moments shaping online conversations in China. Subscribe here to receive future editions.

 

The story that never went trending was undoubtedly the biggest story of the week. On June 26, an incident at the Beijing landmark CITIC Tower (aka China Zun 中国尊) in the Chaoyang central business district sparked disbelief online. At 5:55 pm local time, a small plane, a Sunward SA60L Aurora, crashed into the tower, after which wreckage from the small aircraft fell to the street below (video).

For those who immediately responded to the incident on social media, it seemed unimaginable that this had happened in the capital. Beijing is one of the most heavily defended airspace zones in China. Since May of this year, recreational drones are also banned in Beijing, with outdoor flights requiring prior approval from authorities.

 


 

A small plane hit CITIC Tower??? How could something like this happen? What happened to the air defense capabilities in our core restricted zone???“ one Weibo commenter wrote on Friday night.

After videos and images of the incident spread, online discussions were swiftly and thoroughly censored. That same day, while media outlets around the world began reporting on the crash, it did not appear among the top 50 trending topics on Chinese platforms—in fact, it wasn’t reported anywhere at all. As related keywords and hashtags were taken offline, it quickly became clear that this was the “6.26 Incident That Shall Not Be Mentioned.”

Even the next day, when Chaoyang authorities issued a brief official notice, republished by state media, the name of the tower was never mentioned, just that “a single-engine, two-seat light sport aircraft collided with a high-rise building during flight,” and that an investigation was underway. The one person on board, the pilot, died in the crash. Thirteen others were injured.

 

 

Later, flight tracking data revealed that the aircraft had taken off from Shifosi Airport, northeast of Beijing, and had come close to a Hainan Airlines passenger jet, forcing at least two commercial flights to abort their landings.

For the five days following the incident, little to no official information was available on the highly unusual incident. Meanwhile, Chinese authorities reportedly ordered a nationwide suspension of most general aviation activities, including recreational flying.

 

Why the CITIC Tower Incident Triggered an Information Blackout

 

But why has the censorship surrounding this incident been so intense, leading online censors to scrub all footage and discussion of it from the internet?

This has to do with the nature of the incident.

It is not uncommon for major incidents to be heavily censored, especially when the details surrounding them are still unfolding. But this kind of information “blackout” generally occurs only when incidents are considered particularly sensitive, and the regular toolkits used to manage and control information are no longer deemed sufficient.

Some examples include:

▪️The 2011 Wenzhou Train Crash, which happened at a time when the prestige and reliability of China’s high-speed rail system was celebrated as a flagship national project.

▪️The 2013 Tiananmen SUV ‘Suicide Attack’, which happened in a tightly guarded, already politically sensitive public space and the symbolic heart of the state.

▪️The 2022 Anti-Party Protest Banner at Sitong Bridge, which happened just before the opening of the 20th Party Congress that confirmed Xi Jinping’s unprecedented third term.

▪️The 2024 Beishan Park Stabbings of American Tourists, which happened just as China’s inbound tourism was beginning to recover in the post-COVID era and “China is safe” narratives were playing an increasingly important role in official messaging.

All of these incidents are different in nature, but what they have in common is not just that they are examples of bad news being suppressed, but that they reflect a specific pattern in which news that is bad for the Party-state is suppressed. In their own ways, these incidents—and the discussions and speculation surrounding them—challenge one or more foundational narratives about the competence of China’s leadership, its modernization, its security, its stability, and its capacity to maintain social order.

📌 The 6.26 CITIC Tower incident is particularly sensitive because it touches on several of these core narratives. It immediately opened the door to a flood of politically sensitive questions: How could this happen in the capital? Were the authorities really in control? Were the security systems adequate? Was it a deliberate attack? This all directly contradicts the logic of “Safe China” (平安中国), a grand strategy for governance in the Xi era that seeks to project an image of a closely monitored society in which risks are anticipated and prevented through the integration of efficient public security, surveillance, and Party leadership (see Trevaskes & Lin 2024)1. A small aircraft striking Beijing’s tallest building—located in one of the country’s most tightly controlled airspaces—challenges precisely this claimed capacity to maintain order, guarantee security, and keep China safe.

📌 Another reason why incidents like the 6.26 one are censored so heavily is that they have the potential to snowball or even trigger copycat behavior. What begins as an isolated accident can quickly evolve into broader discussions about political dissatisfaction, which might spiral into social unrest – and protecting domestic stability is central to the Party-state’s legitimacy and maintenance of power.

📌 A third factor is the symbolic significance of the location. Unlike an ordinary office building, the CITIC Tower is a symbol of Beijing’s cosmopolitan skyline and of China’s economic rise and state-led modernization. Situated in the heart of the capital’s central business district, next to CCTV headquarters and visible across much of the city, it is one of Beijing’s most recognizable landmarks. An incident involving such a building inevitably carries far greater symbolic weight than one occurring in a less prominent location.

⮕ Taken together, these factors make the 6.26 incident unusually sensitive in political, social, and symbolic terms. It is not just a random aviation accident; it touches upon national security, state competence, political control, social stability, and the protection of one of the country’s most symbolic urban spaces. Rather than threatening a single Party narrative, as some of the other aforementioned incidents did, it threatens several at once. This helps explain why it was treated not as an ordinary censored event, but as one requiring an almost complete information blackout.

 

A Familiar Censorship Playbook

 

Although these top-censored news incidents are all unique, they follow a similar whack-a-mole-style playbook in suppressing discussion of these events, even though they had only just happened.2

The main playbook is always more or less the same: Sensitive incident occurs News disappears from front pages and trending search lists Popular videos and images are taken offline Incident-specific keywords and hashtags are scrubbed Censorship expands to generic category-level terms (such as “Beijing,” “Chaoyang District,” or “small plane”) that could lead users back to the incident) State media remain silent while shifting attention to other news.

(This week, the distraction might have been an otherwise arguably uninteresting controversy involving Chinese singer Han Hong.)3

Offline, the same pattern often plays out through physical scene control: bystanders are asked to delete their footage, journalists are kept away from the scene, or even entire street signs are removed (as happened after the protests on Wulumiqi Road and following the Sitong Bridge protest).

Meanwhile, selected commentary from permitted voices is sometimes allowed to appear online—for example, from former Global Times editor Hu Xijin—although even those posts are not immune from later deletion, as happened following the Beishan Park stabbings. This is often the first step in shaping the official narrative.

A brief authoritative news report may then be released, often ending with a statement that “the incident is under investigation,” which also buys time. Sometimes, however, no meaningful official explanation ever follows. After the 2022 China Eastern MU5735 crash, for example, authorities never released a full public investigation report, even though reports emerging in 2026 claimed the crash, which killed all 132 people on board, was deliberate.

Nevertheless, an official narrative and investigation outcome do usually follow. The 2013 Tiananmen attack, for example, was officially labeled a premeditated terrorist attack orchestrated by the East Turkestan Islamic Movement (ETIM), with Chinese authorities presenting it as evidence that Xinjiang-linked militancy had become part of a broader international terrorist threat. In doing so, the incident was reframed from a local security failure into part of a global fight against terrorism.

Finally, arrests often follow, and people are held accountable. At the same time, those accused of “spreading rumors” online may also face consequences, while foreign media are often criticized for biased reporting or double standards. These counterattacks further reinforce the official narrative while simultaneously shifting attention away from the original incident.

 

How AI Chatbots Are Part of the Censorship Ecosystem

 

For the 6.26 incident, the main narrative for the first five days after it happened was that nothing really happened. Even Hu Xijin posted nothing about the incident.

On Weibo, the hashtag “The Story Behind the CITIC Tower Crash Incident” (#中信集团大厦被撞事件始末#) was taken offline, along with many others.

Five days after the crash, Weibo’s Qwen-3 chatbot (powered by Alibaba) claimed it knew nothing about any incident involving CITIC Tower.

The Weibo chatbot responds to a question about the CITIC Tower incident, saying it knows nothing (July 1st).

Six days after the incident, on July 2nd, DeepSeek’s chatbot went a step further. Rather than simply claiming no information was available, it described reports about the crash as fake news, stating that there were no official records or media coverage and that such rumors originated on “overseas social media platforms.” Kimi refused to answer questions about the incident altogether, while Baidu’s ERNIE Bot said it had no information about the incident and warned users not to believe or spread unverified rumors.

[caption id="attachment_76508" align="aligncenter" width="484"] DeepSeek responded to what happened at CITIC Tower, claiming it’s “fake news” (July 2nd)

The 6.26 CITIC Tower incident illustrates a broader development in China’s online information ecosystem. A great deal has changed since the 2011 Wenzhou train crash. Social media control has become far more sophisticated—not only through better automated filtering, but also through platform regulation, agenda-setting, distraction strategies, and increasingly coordinated narrative management.

Now, AI chatbots have become part of that ecosystem.

Integrated AI assistants (LLM-powered chatbots embedded in platforms such as Weibo, Douyin, and other Chinese apps since 2025) are not merely additional tools subject to censorship. They have become an integral part of the online information environment and increasingly play a role in the handling of sensitive incidents.

Unlike Grok on X, these AI assistants are deeply integrated into the user experience and actively encourage people to ask questions, search for information, and receive summaries of ongoing events and controversies. What makes them particularly powerful from the perspective of propaganda and information control is that they can centralize official narratives at the platform level. Previously, that role was distributed across state media, government accounts, and other official actors.

Because these chatbots do not present themselves as state media or government authorities, they can appear more neutral and objective. Users may perceive them simply as AI-generated summaries with less media bias and greater factual accuracy.4 In the case of the 6.26 incident, they effectively conveyed a state-ordered message to social media users: that really, nothing happened, and that if something happened, it must be fake news.

 

“A Public Security Incident Caused by Personal Factors”

 

On July 2nd, Beijing Chaoyang’s verified official account issued a second short statement via its WeChat channel. This time, providing more details about what had happened on June 26.

According to the statement, the pilot was 66-year-old Mr. Liu (刘), a Beijing resident who was self-employed and lived alone. He obtained a sport pilot license in 2021 and a private pilot license in 2024.

Authorities said Liu deliberately deviated from his flight route, subsequently lost contact with the airport, and then intentionally crashed into the building, killing himself. They added that he had suffered from depression in recent years and that his diary contained multiple references to wanting to “end his life.” The incident was officially described as “a public security incident caused by personal factors” (个人原因造成的危害公共安全案件).

The second, July 2nd, statement.

It is noteworthy that such a short statement includes details about the pilot’s age, marital status, pilot licenses, mental health, and even diary entries, yet provides virtually no information about the building itself, the security response, or the broader circumstances of the incident. The statement never mentions the CITIC Tower by name, referring only to “a high-rise building near the East Third Ring Road.” It likewise omits any mention of the aircraft entering restricted airspace, the reported disruption to commercial air traffic, or the obvious questions the incident raises about security failures.

On Weibo, the statement was widely shared, but comment sections beneath those posts remained either hidden or only contained a selection of replies.

And so, six days after the incident, there is a slight opening in the media blackout—just enough to establish the official narrative. This framing reduces a wide range of sensitive questions to the story of one troubled individual. It is not about broader questions of public safety or governance, but about a lonely man’s suicide; it is not about the Party-state, but about personal circumstances; it minimizes a news event that received maximum attention and turns a possible mass attack into an isolated incident. And so the message subtly shifts from “nothing happened” to “it’s time to move on.” The playbook is complete. It’s almost as if nothing really happened.

 

By Manya Koetse

With contributions by Miranda Barnes


  1. See: Susan Trevaskes and Delia Lin, “Integrating Stability Maintenance into Comprehensive Governance: The Burgeoning ‘Safe China’ Behemoth,” Modern China 50, no. 6 (2024): 671–701. https://doi.org/10.1177/00977004241254709.
  2. Some might say the 2015 Tianjin explosions also belong here, but that disaster was so large and witnessed by so many people that, while the official narrative was tightly controlled, it did not receive the same near-total information blackout.
  3. This controversy involved Han Hong (韩红), a popular Chinese singer and philanthropist, who recently urged Beijing audiences in the local dialect to show up at the box office for the underperforming latest Feng Xiaogang film Catch the Spy (《抓特务》), for which she is the music producer. She used the colloquial expression zǒu ge miànr (走个面儿, roughly “show your face”), and was accused of inappropriately putting moral pressure on people to buy tickets, which also led to criticism of her charity work. She made the remarks at a June 17 premiere, and it didn’t become a dominant story until eleven days later.
  4. See also: Yan Li, “The Impact of Automated Journalism on Media Bias, Accuracy, and Public Trust: Evidence from Young Chinese News Consumers,” Humanities and Social Sciences Communications 13 (2026): 688. https://doi.org/10.1057/s41599-026-06612-6.

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China Brands, Marketing & Consumers

Quack Like a Goose: Why Beijing Street Vendor “Auntie Goose Legs” Sparked a Nationwide Debate

After the first complaints surfaced, Auntie Goose Legs admitted the truth about her business: she ha been selling duck legs all along.

Manya Koetse

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🔥 Originally published in Eye on Digital China.
My premium newsletter covering the stories, memes, debates, and viral moments shaping online conversations in China. Subscribe here to receive future editions.

If it walks like a duck and quacks like a duck, it might still be a goose – or the other way around. That, at least, is the takeaway from two stories that recently went viral on Chinese social media.

The woman at the center of it all is Beijing street-food vendor Chen Xiufeng (陈秀凤), better known as “Auntie Goose Legs” (鹅腿阿姨). Over the years, she became something of a local celebrity in Beijing’s university district. Originally from Jiangsu, the migrant vendor had been selling her famous roasted goose legs to students since 2011.

She skyrocketed to national fame in 2023 , but became the target of widespread criticism last week after it was revealed that her celebrated goose legs – sold for 16 yuan ($2.20) per piece – were actually duck meat all along.

The controversy came up after the vendor ventured beyond the university area into Beijing’s business district. At the universities, she enjoyed a loyal customer base and dedicated WeChat groups. In her new market, however, customers proved more skeptical. Some noticed that the meat looked suspiciously duck-like; others complained that the color seemed off.

In the university district, Auntie Goose Legs she enjoyed a loyal customer base and dedicated WeChat groups.

After the first complaints surfaced, Auntie Goose Legs admitted the truth on WeChat on June 9.

“The ingredients I originally used were goose legs,” she wrote, “but they have been out of stock for more than fifteen years. The current ingredient is duck legs.”

It turned out that she had only sold goose legs, the product that made her famous, for two months back in 2011 before switching to the much cheaper duck. “Did geese become extinct without us knowing?” some netizens joked.

The revelation quickly exploded online. The hashtag “What Auntie Goose Legs is Selling Turns Out to be Duck Legs” (#鹅腿阿姨卖的是鸭腿#) became the top trending on Weibo for an entire day, with millions of people discussing the topic.

 

Why did millions of people become so outraged over a single Beijing street vendor selling duck instead of goose?

 

Piggybacking on the debate, Anhui-based commentators pointed out that a beloved regional specialty has the exact opposite ‘problem.’ Wuwei smoked duck (无为板鸭) is branded as duck, but is usually goose. According to local standards, however, goose products may be sold under this name, prompting discussions about “hanging up a goat’s head, while selling dog meat“ (挂羊头卖狗肉): advertising one thing while selling another.

Because geese are more expensive than ducks in China, and generally considered tastier, the Anhui duck-is-goose story, unlike the Auntie Goose Legs controversy, did not provoke online anger. Instead, many people saw it as an example of sellers prioritizing flavor over cost. Auntie Goose Legs is seen as doing the exact opposite.

But why did millions of people actually become so outraged over a single Beijing street vendor selling duck instead of goose, especially when there were no indications that anyone became ill? The answer has little to do with poultry and everything to do with trust.

Auntie Goose Legs during the prime time in Beijing’s University District in late 2023 (image via Lianhe Zaobao 联合早报).

Food fraud and mislabeling have been longstanding concerns in China. Earlier surveys found that food safety worries even outweighed concerns about public security and environmental issues, and while China’s food safety record has improved in recent years, public trust remains fragile.

Part of these concerns are immediate and practical. Major scandals in the past involving melamine-tainted infant formula or recycled “gutter oil” have posed serious risks to public health. But the issue goes beyond health risks alone.

 

If a goose can be a duck, then what exactly is the duck?

 

Whereas food safety concerns in many Western countries often focus on contamination, Chinese consumers are frequently just as concerned with economic deception. It is unfair to pay for a more expensive goose and receive a duck. Even if no one gets sick, Chinese consumer law still treats it as fraud.

More important, however, is what such deception does to confidence in the broader food system. If a goose can be a duck, then what exactly is the duck?

As a major 2023 college canteen scandal demonstrated, the build-up of deceit can reach a breaking point among the public. During that somewhat Kafkaesque “rat head or duck neck” (鼠头or鸭脖”事件) controversy, officials insisted a rat head found in a student’s rice was merely a “duck neck,” even though everyone could clearly see the snout and teeth of a rodent.

This kind of gaslighting shatters social trust and reinforces a generalized sense that, as a consumer, you are entirely on your own. When regulators fail to step in honestly, even a seemingly isolated incident comes to symbolize more dangerous forms of systemic food fraud.

And this is where the Auntie Goose Legs story stings the most.

People did not come to her simply because her food was good. Over the years, she had become part of local student life, and she felt safe and authentic. Her pink scooter helmet, which she continued to wear while working, became an iconic symbol of her no-nonsense and humble image. Her success was built on word of mouth and, above all, on the trust her customers placed in her.

That this particular “auntie” deceived her customers by selling a different product than the one she advertised is no longer really about her. If duck is goose, goose is duck, and your local auntie has deceived you for years, then who can you trust anymore?

 

  • Read more about how Auntie Goose Legs rose to fame in 2023 here.

 

By Manya Koetse
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