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Key Players, Digital Trends & Deep Dives: China Internet Report 2021

SCMP just launched its latest China Internet Report. (And What’s on Weibo readers can get a 30% discount on the Pro Edition!)

Manya Koetse

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As China’s tech sector has been facing an ongoing crackdown by Beijing regulations, a lot has been changing in the country’s digital environment over the past year. The new China Internet Report 2021 by SCMP gives an overview of the latest trends and developments.

When it comes to China’s online landscape, nothing ever stays the same. Over the past year, political, economic, and social developments and measures have once again changed the Chinese digital environment.

Giving a comprehensive overview of the key leaders and major trends dominating the Chinese online field, South China Morning Post (SCMP) issued its fourth annual China Internet Report.

China’s internet population has now risen to 989 million – last year’s report indicated an internet population of 904 million. By now, there are 853 million mobile payment users, which indicates that over 86% of the entire mobile internet population uses mobile as a way to pay.

As China’s internet population is still growing, and new online startups are still popping up every day, there have been tightening regulations on multiple fronts.

As laid out in SCMP’s report, regulations mainly focus on the four areas of antitrust, finance, cybersecurity, and data privacy. Regulatory actions targeting the monopolistic behaviours of China’s biggest internet companies are still ongoing, and the new Data Security Law came into effect on September 1st of this year.

While Chinese tech companies are seeing increased scrutiny at home, they have also been facing intensifying geopolitical tensions between China and other countries. Over the past year, the various probes and shutdowns into Chinese companies by countries such as the US and India have meant a serious blow to the market share of Chinese apps.

Meanwhile, the SCMP report highlights the trend of various older and newer Chinese (e-commerce) apps “downplaying” their Chinese origins when entering foreign markets. Shein is a good example of this development, but other players including Zaful, Urbanic, and Cider are also experiencing more success outside of China while not explicitly marketing themselves as Chinese e-commerce apps.

Another noteworthy trend explained in the new report is how China’s shifting demographics are creating new niche segments to compete over. The COVID-19 crisis is partially a reason why China has seen an increase in senior internet users, with an increasing number of online products and content catering to the elderly.

China’s Ministry of Industry and Information Technology (MIIT) even issued special guidelines earlier this year for web pages and mobile apps to carry out so-called “elderly friendliness modifications.” Since this user group is still expected to see significant growth, the “silver economy” is an area that will only become more important in the years to come.

To check out all the main trends for 2021, China’s latest internet statistics, its top tech competitors, internet companies, and more, here’s a link to the free report.

The free report is 55 pages long and gives an overview of China’s latest internet numbers and players, covers the top cross-sector trends for 2021, including the tightening regulations and the bumpy road ahead for China’s tech IPOs.

The Pro Edition of China’s Internet Report 2021, also launched by SCMP, is 138 pages long and provides a deep-dive into ten relevant sectors – featuring insightful and useful analysis, data, and case studies relating to China’s e-commerce market, content & media, gaming, blockchain, fintech, online education, healthtech, smart cars, 5G, and Artificial Intelligence.

The China Internet Report Pro Edition is priced at US$400, but the team at SCMP has kindly reached out and made it possible for us to offer a special 30% discount to What’s on Weibo readers.

You’ll get the discount by using the discount code: WHATSONWEIBO30, or by clicking this link that will automatically include your discount code.

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2021 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya is the founder and editor-in-chief of What's on Weibo, offering independent analysis of social trends, online media, and digital culture in China for over a decade. Subscribe to gain access to content, including the Weibo Watch newsletter, which provides deeper insights into the China trends that matter. More about Manya at manyakoetse.com or follow on X.

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China Books & Literature

Why Chinese Publishers Are Boycotting the 618 Shopping Festival

Bookworms love to get a good deal on books, but when the deals are too good, it can actually harm the publishing industry.

Ruixin Zhang

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JD.com’s 618 shopping festival is driving down book prices to such an extent that it has prompted a boycott by Chinese publishers, who are concerned about the financial sustainability of their industry.

When June begins, promotional campaigns for China’s 618 Online Shopping Festival suddenly appear everywhere—it’s hard to ignore.

The 618 Festival is a product of China’s booming e-commerce culture. Taking place annually on June 18th, it is China’s largest mid-year shopping carnival. While Alibaba’s “Singles’ Day” shopping festival has been taking place on November 11th since 2009, the 618 Festival was launched by another Chinese e-commerce giant, JD.com (京东), to celebrate the company’s anniversary, boost its sales, and increase its brand value.

By now, other e-commerce platforms such as Taobao and Pinduoduo have joined the 618 Festival, and it has turned into another major nationwide shopping spree event.

For many book lovers in China, 618 has become the perfect opportunity to stock up on books. In previous years, e-commerce platforms like JD.com and Dangdang (当当) would roll out tempting offers during the festival, such as “300 RMB ($41) off for every 500 RMB ($69) spent” or “50 RMB ($7) off for every 100 RMB ($13.8) spent.”

Starting in May, about a month before 618, the largest bookworm community group on the Douban platform, nicknamed “Buying Like Landsliding, Reading Like Silk Spinning” (买书如山倒,看书如抽丝), would start buzzing with activity, discussing book sales, comparing shopping lists, or sharing views about different issues.

Social media users share lists of which books to buy during the 618 shopping festivities.

This year, however, the mood within the group was different. Many members posted that before the 618 season began, books from various publishers were suddenly taken down from e-commerce platforms, disappearing from their online shopping carts. This unusual occurrence sparked discussions among book lovers, with speculations arising about a potential conflict between Chinese publishers and e-commerce platforms.

A joint statement posted in May provided clarity. According to Chinese media outlet The Paper (@澎湃新闻), eight publishers in Beijing and the Shanghai Publishing and Distribution Association, which represent 46 publishing units in Shanghai, issued a statement indicating they refuse to participate in this year’s 618 promotional campaign as proposed by JD.com.

The collective industry boycott has a clear motivation: during JD’s 618 promotional campaign, which offers all books at steep discounts (e.g., 60-70% off) for eight days, publishers lose money on each book sold. Meanwhile, JD.com continues to profit by forcing publishers to sell books at significantly reduced prices (e.g., 80% off). For many publishers, it is simply not sustainable to sell books at 20% of the original price.

One person who has openly spoken out against JD.com’s practices is Shen Haobo (沈浩波), founder and CEO of Chinese book publisher Motie Group (磨铁集团). Shen shared a post on WeChat Moments on May 31st, stating that Motie has completely stopped shipping to JD.com as it opposes the company’s low-price promotions. Shen said it felt like JD.com is “repeatedly rubbing our faces into the ground.”

Nevertheless, many netizens expressed confusion over the situation. Under the hashtag topic “Multiple Publishers Are Boycotting the 618 Book Promotions” (#多家出版社抵制618图书大促#), people complained about the relatively high cost of physical books.

With a single legitimate copy often costing 50-60 RMB ($7-$8.3), and children’s books often costing much more, many Chinese readers can only afford to buy books during big sales. They question the justification for these rising prices, as books used to be much more affordable.

Book blogger TaoLangGe (@陶朗歌) argues that for ordinary readers in China, the removal of discounted books is not good news. As consumers, most people are not concerned with the “life and death of the publishing industry” and naturally prefer cheaper books.

However, industry insiders argue that a “price war” on books may not truly benefit buyers in the end, as it is actually driving up the prices as a forced response to the frequent discount promotions by e-commerce platforms.

China News (@中国新闻网) interviewed publisher San Shi (三石), who noted that people’s expectations of book prices can be easily influenced by promotional activities, leading to a subconscious belief that purchasing books at such low prices is normal. Publishers, therefore, feel compelled to reduce costs and adopt price competition to attract buyers. However, the space for cost reduction in paper and printing is limited.

Eventually, this pressure could affect the quality and layout of books, including their binding, design, and editing. In the long run, if a vicious cycle develops, it would be detrimental to the production and publication of high-quality books, ultimately disappointing book lovers who will struggle to find the books they want, in the format they prefer.

This debate temporarily resolved with JD.com’s compromise. According to The Paper, JD.com has started to abandon its previous strategy of offering extreme discounts across all book categories. Publishers now have a certain degree of autonomy, able to decide the types of books and discount rates for platform promotions.

While most previously delisted books have returned for sale, JD.com’s silence on their official social media channels leaves people worried about the future of China’s publishing industry in an era dominated by e-commerce platforms, especially at a time when online shops and livestreamers keep competing over who has the best book deals, hyping up promotional campaigns like ‘9.9 RMB ($1.4) per book with free shipping’ to ‘1 RMB ($0.15) books.’

This year’s developments surrounding the publishing industry and 618 has led to some discussions that have created more awareness among Chinese consumers about the true price of books. “I was planning to bulk buy books this year,” one commenter wrote: “But then I looked at my bookshelf and saw that some of last year’s books haven’t even been unwrapped yet.”

Another commenter wrote: “Although I’m just an ordinary reader, I still feel very sad about this situation. It’s reasonable to say that lower prices are good for readers, but what I see is an unfavorable outlook for publishers and the book market. If this continues, no one will want to work in this industry, and for readers who do not like e-books and only prefer physical books, this is definitely not a good thing at all!”

By Ruixin Zhang, edited with further input by Manya Koetse

Independently reporting China trends for over a decade. Like what we do? Support us and get the story behind the hashtag by subscribing:

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2024 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Digital

China’s 2024 Gaokao Triggers Online Discussions on AI

It’s Gaokao time! For the first time, China’s Gaokao essay topic was about the latest AI developments, triggering discussions on social media.

Manya Koetse

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This week, China’s National College Entrance Exams, better known as the “Gaokao” (高考), became one of the most-discussed topics on Chinese social media. ‘Gaokao,’ ‘AI,’ and ‘Gaokao essay’ were the hottest words on Weibo by the end of the week.

The Gaokao (literally: ‘higher exams’) are a prerequisite for entering China’s higher education institutions and are usually taken by students in their last year of senior high school. June 7th marked the first day of the Gaokao, which will continue until June 9th.

For the over 13.4 million participating students, the Gaokao week is a pivotal moment. Scoring high on this exam can grant access to better colleges, significantly improving their chances of obtaining a good job after graduation. Given the potentially life-changing results, the Gaokao period is a stressful time for both students and their parents.

The Gaokao essay (高考作文) is a significant component of the Chinese language exam, testing students’ writing skills, critical thinking, and ability to express ideas coherently. The essay, which must be completed within a limited time, requires students to discuss given topics.

These topics are generally related to Chinese society and culture, consistently attracting attention on social media. This year, multiple essay questions were related to AI and social media.

Those taking the Beijing exam (北京卷), for example, received a question related to the “like” function on WeChat, suggesting that some people feel strongly about the number of “likes” they receive and give, asking students to reflect on the phenomenon of receiving and giving “likes” on social media.

But the question receiving the most attention on social media was part of the New Curriculum Standard Test I (新课标I卷), which is distributed among different provinces.

 
Students vs. Chatbots: Letting AI Write an Essay on AI
 

Students received the following topic prompt for their Gaokao essay, which should be at least 800 characters long:

With the spread of the internet and AI applications, we can quickly get answers to more and more questions. Will this also lead to us having fewer problems?” (随着互联网的普及、人工智能的应用,越来越多的问题能很快得到答案。那么,我们的问题是否会越来越少?)

The question sparked discussions because it was the first time a Gaokao essay question focused on AI applications designed to interact with users, like ChatGPT.

Although many thought the essay question was easy—unlike this year’s math exam—it still generated some interesting reflections.

Some Weibo users responded that the answer to the question was within the question itself. One Weibo blogger answered: “If there were no AI, we wouldn’t have this question, so problems/questions related to AI will only increase. The emergence of new things will inevitably be accompanied by new problems.”

Others commented on the concerns brought by the emergence of AI applications like ChatGPT. In early 2023, hashtags such as “Ten Professions That Could be Replaced by ChatGPT” (#可能被ChatGPT取代的10大职业#) gained a lot of attention on Chinese social media, where many were concerned that jobs from various industries, including customer service, programming, media, education, market research, finance, etc., would soon be done by AI chatbots instead of humans.

In line with this thought and the AI theme of this year’s Gaokao essay, netizens and some Chinese media outlets decided to let various language models take the exam and see how they would perform: could AI actually do better in writing an essay about AI than Chinese students? (Related hashtags: #让AI写高考作文#, #假如AI写高考语文作文#; #ChatGPT来交卷了#).

Xinhua, for example, asked Open AI’s ChatGPT to answer various questions. Sina Tech (新浪科技) also asked OpenAI’s ChatGPT to answer the AI-related essay question, along with Chinese chatbots, like Baidu’s Erniebot (文心一言), Tencent’s Yuanbao (元宝), iFlytek’s Sparkdesk (星火), and Alibaba’s Tongyi Qianwen (通义千问). Toutiao News did the same, letting three chatbots (ChatGPT, Erniebot, Tongyi Qianwen) compete against each other.

There is no general consensus on how well these AI chatbots can write a Gaokao essay. Although compared to last year, there are now more and better domestic AI models, OpenAI’s ChatGPT-4 is generally still seen as the best chatbot out there.

This was its answer (originally in Chinese, translated to English with ChatGPT):

 

New Issues and Thoughts Brought by Technological Progress

With the popularization of the internet and the application of artificial intelligence, we can quickly obtain a large amount of information, and many questions can be answered in a short time. However, does this mean that we will have fewer questions? I believe the answer is no.

Firstly, although technology provides us with convenience, new technologies also bring new problems. The popularization of the internet has made information dissemination faster, but at the same time, the authenticity and accuracy of information have become new concerns. Fake news, information overload, and privacy breaches are increasingly prominent issues. These new problems need to be identified, understood, and resolved by us.

Secondly, the application of artificial intelligence, although it improves efficiency, also brings ethical and social issues. The transparency of AI decision-making, algorithmic bias, and the impact on the job market are all urgent issues that society needs to address. People need to constantly raise new questions to ensure a balance between technological progress and social welfare.

Furthermore, the development of technology prompts us to reflect more deeply on humanity itself. We need to rethink the relationship between humans and technology and consider the role and boundaries of technology in our lives. These philosophical issues are more important than ever.

Therefore, technological progress does not reduce our questions but rather prompts more new questions and reflections. It is these constantly emerging questions that drive social progress and human thought. We need to embrace the challenges brought by technology with a more open and critical attitude and actively seek solutions.

 

Although the domestic chatbots gave somewhat different answers, the overall tone was similar, though some commenters argued that ChatGPT was still the strongest, along with iFlytek’s Sparkdesk.

An online poll asking Weibo users to grade the ChatGPT essay from lower than 20 points up to the full 60 points saw divided responses, though a majority rated it as lower than 20 points.

How well can ChatGPT write an essay about AI? Opinions are divided.

This shows that many commenters think that AI chatbots are still not able to beat humans when it comes to writing Gaokao essays.

Commenters reacted to the various AI-generated essays in various ways, including:

• “Actually, none of them are very good. They are too formulaic and standardized, lacking the natural creativity and originality that humans possess.”
• “They just give soulless standard answers.”
• “It’s all about ‘firstly,’ ‘secondly,’ ‘furthermore.'”
• “There are no examples, no points proven; it should be a low grade.”
• “It’s just too stiff.”
• “This is like reading reports, not essays.”
• “AI places more emphasis on logic, which aligns with the writing style of foreigners.”
• “There’s no feeling in these essays; there’s a certain kind of AI feeling to AI.”

Meanwhile, some bloggers are taking up the challenge and are publishing their own online essays in response to the Gaokao question.

Some of them are not worried that chatbots will take over their critical tasks: “AI will be AI. There’s no connection to the social realities, and it’s as cold as ice.”

“Their words might make sense, but they lack feeling.”

But for some discussing the topic, they have come to realize that they are already depending too much on digital tools and AI applications for their everyday tasks, writing: “I made an attempt to write an essay, but discovered I already forgot how to do it!” For them, the discussion itself is a wake-up call that writing an essay from scratch is a skill that requires practice and cannot be fully replaced by chatbots, making personal creativity essential to score points and avoid the ‘AI-fication’ of texts.

PS:
In his book China’s Millennials, Eric Fish describes the limits on Chinese students’ answers; taboo responses, such as those containing harsh criticisms of the Chinese government or society, could potentially lead to failure. Although the essay is purportedly meant to showcase the student’s creativity, it must adhere to the unwritten rules of what is socially acceptable.

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2024 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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What’s on Weibo is run by Manya Koetse (@manyapan), offering independent analysis of social trends in China for over a decade. Subscribe to show your support and gain access to all content, including the Weibo Watch newsletter, providing deeper insights into the China trends that matter.

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