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The Rise of China as Global Tech Superpower (Live @ RISE Hong Kong 2018)

RISE conference: Is China surpassing the US as the world’s digital leader?

Manya Koetse

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At RISE, Asia’s biggest tech conference, the rise of China as tech leader is a major theme. What’s on Weibo reports on the launch of the China Internet Report and other China-related talks at RISE today.

China is a major theme this week at RISE, the largest tech conference in Asia, taking place at the Hong Kong Convention and Exhibition Center from July 9-12.

Besides wide attention for Chinese latest startups and tech developments, a central question posed at this year’s conference is if China is the current world leader in technology, and if it has thus surpassed Silicon Valley as the global tech powerhouse.

In the morning of July 12, Edith Yeung (500 Startups), Ravi Hiranand (Abacus), and Chua Kong Ho (South China Morning Post) reveal the hugely publicised China Internet Report, which brings a definitive outlook of the companies, industries and trends that are changing the technology space.

Also on Tuesday, another panel with various speakers from Bloomberg to Withinlink address the question of whether or not China is now the world leader in technology, and if its rise should be feared by the US.

What’s on Weibo is here at RISE to live report for you – refresh page for updates (update: live blog now closed).

 

China Internet Report (10:30 HKT)


 

In their presentation of the latest findings when it comes to China and the internet, Edith Yeung, Ravi Hiranand, and Chua Kong Ho present four major themes that are crucial to digital China.

Firstly, as explained by Chua Kong Ho, “Chinese Internet giants are doing everything.” The major players such as Baidu, Alibaba, and Tencent are not just involved in e-commerce or social media, but also, for example, in the e-sharing economy, gaming, education, media, or artificial intelligence – penetrating all markets that matter in China today.

 

“Chinese Internet giants are doing everything.”

 

Second, Chinese internet empowers rural populations. E-commerce platforms such as Taobao, for instance, give ample new opportunities to people in the Chinese countryside to set up new businesses; a crucial theme in China’s digital developments today, as it greatly impacts society.

The Chinese Internet Report launched today, click to see. (URL https://www.abacusnews.com/china-internet-report/).

Third, Chinese internet companies embrace ‘social’: social media plays a major role in China’s digital market, arguably much more than it does in countries such as the US.

And last, Ko explains, the Chinese government is the visible hand – controlling all corners of the Chinese internet.

 

Biggest Tech Trends in China (10:40 HKT)


 

As Edith Yeung dives deeper in what matters in China today when it comes to digital developments, she focuses on the importance of AI and how tools such as facial recognition are playing an increasingly important role in Chinese society today; not just for practical matters such as train ticket collections, but also for governance, helping catching fugitives or jaywalkers. In terms of AI, China is investing the most in the world right now.

China’s first robot dentist fits implants into a patient’s mouth in 2017 (photo via Dailymail).

Robotics is also an area of major development in China, as intelligent service robots continue to upgrade across industries, including e-commerce and healthcare. As an example, Yeung mentions that in September 2017, the first robot dentist was introduced in the PRC.

Yeung, Hiranand, and Ko at Rise 2018 (photo whatsonweibo.com)

“Chinese consumers are crazy about cryptocurrency,” Yeung also emphasizes, and the cryptocurrency trading market is a huge and booming one – although “the government is not too friendly to the market.”

But blockchain technology is applauded more from the authority side. Although still in its infancy, companies such as Alibaba are already working with the government in applying blockchain technology across various industries.

Launch: The full Chinese Internet Report 2018 can be found here.

 

Attitudes that matter (11:00 HKT)


 

For Edith Yeung, who was selected by Inc’s Magazine as “one of the Silicon Valley investors you must know,” the question of whether or not China is the global tech leader is not a difficult one.

 

“China is leading and people elsewhere in the world have no clue.”

 

“I really think China is leading in so many areas, and people elsewhere in the world just have no clue,” Yeung says during the Q&A following the presentation of the China Internet Report.

Yeung also links the growth of Chinese tech companies to the working attitude of the people that is related to China’s history.

“My generation, let’s say those thirty-plus generations, remembers what it means to be poor. And that you have to work hard to be successful. People work hard because they can remember those days, and that attitude is not likely to change over the coming decades. There’s no nine to five attitude.”

 

World Leader in Technology (11:55 HKT)


 

Silicon Valley has always been seen as the world leading technology hub. During another RISE panel, simply titled “Is China now the world leader in technology?”, speakers Bessie Lee (Withinlink founder), Wayne Xu (Zhongan International president), Harry Hui (ClearVue Partners founding partner), Lei Chen (Xunlei CEO), and Tim Culpan (Bloomberg columnist) will address if the US should fear the rise of China as a tech superpower.

For moderator Tim Culpan, the answer is simple: “Obviously the answer is yes. We’re done here.”

But for the other speakers, the answer is not that straightforward. Bessie Lee sees two sides to China’s rise: “Is China a world leader in tech? Yes and no,” she says: “In mobile, e-commerce and mobile, China is definitely leading. But when it comes to privacy protection, for example, they are not leading in all aspects.”

Lee stresses that in mainland China, the regulations always fall behind the technology development. “It’s not there yet,” she states.

 

“They run fast. Those who do not run fast will be left behind.”

 

Other speakers agree with Lee. Wayne Xu sees China as a leader in financial and consumer-facing areas, whereas it is still lacking in others. “But as for AI, China is leading,” – a statement all speakers today stress.

Harry Hui mentions that the boom of exciting innovation in China partly comes from the fierce competition between local players: “Because of this enormous competition, they need to depend on data and be very quick in how they innovate and keep launching new services to stay relevant. They run fast. Those who do not run fast will be left behind.”

Chinese companies and the government have more focus on technological development today than the US has, Xunlei’s Lei Chen states. But still, he says, China has a lot of catching up to do.

 

“Chinese are going to take on the US market, but the US are not going to take on the Chinese market.”

 

Lei does not agree with Lee that regulation is most problematic – he says it is the participants in the market that are often lacking in quality and tech knowledge. Nevertheless, when it comes to AI and blockchain, Lei stresses, “China’s overtake is around the corner.”

Both Harry Hui and Wayne Xu both say that China will follow its own path in its rise as tech leader; a unique road that is different from paths taken by other leaders such as the US.

According to Bessie Lee, one dimension of this road is that “Chinese are going to take on the US market, but the US are not going to take on the Chinese market” – a crucial dynamic that will eventually determine who the global tech leader will be.

As for today’s speakers, they all seem to agree that if China is not already the leader in tech, it will be in the future.

Hours after the kick-off of RISE, conference visitors also hold similar views (see image above); according to the majority of voters, “when China will overtake Silicon Valley” is not a question for the future – it is already happening.

Also read: The top ten things you need to know from the China Internet Report by Abacus.

This live blog is closed. Keep checking in on What’s on Weibo in days to come for more updates on RISE and latest news on what’s trending on Chinese social media.

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya Koetse is the founder and editor-in-chief of whatsonweibo.com. She is a writer, public speaker, and researcher (Sinologist, MPhil) on social trends, digital developments, and new media in an ever-changing China, with a focus on Chinese society, pop culture, and gender issues. She shares her love for hotpot on hotpotambassador.com. Contact at manya@whatsonweibo.com, or follow on Twitter.

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China Arts & Entertainment

Going All In on Short Streaming: About China’s Online ‘Micro Drama’ Craze

For viewers, they’re the ultimate guilty pleasure. For producers, micro dramas mean big profit.

Ruixin Zhang

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PREMIUM CONTENT

Closely intertwined with the Chinese social media landscape and the fast-paced online entertainment scene, micro dramas have emerged as an immensely popular way to enjoy dramas in bite-sized portions. With their short-format style, these dramas have become big business, leading Chinese production studios to compete and rush to create the next ‘mini’ hit.

In February of this year, Chinese social media started flooding with various hashtags highlighting the huge commercial success of ‘online micro-short dramas’ (wǎngluò wēiduǎnjù 网络微短剧), also referred to as ‘micro drama’ or ‘short dramas’ (微短剧).

Stories ranged from “Micro drama screenwriters making over 100k yuan [$13.8k] monthly” to “Hengdian building earning 2.8 million yuan [$387.8k] rent from micro dramas within six months” and “Couple earns over 400 million [$55 million] in a month by making short dramas,” all reinforcing the same message: micro dramas mean big profits. (Respectively #短剧爆款编剧月入可超10万元#, #横店一栋楼半年靠短剧租金收入280万元#, #一对夫妇做短剧每月进账4亿多#.)

Micro dramas, taking China by storm and also gaining traction overseas, are basically super short streaming series, with each episode usually lasting no more than two minutes.

 
From Horizontal to Vertical
 

Online short dramas are closely tied to Chinese social media and have been around for about a decade, initially appearing on platforms like Youku and Tudou. However, the genre didn’t explode in popularity until 2020.

That year, China’s State Administration of Radio, Film, and Television (SARFT) introduced a “fast registration and filing module for online micro dramas” to their “Key Online Film and Television Drama Information Filing System.” Online dramas or films can only be broadcast after obtaining an “online filing number.”

Chinese streaming giants such as iQiyi, Tencent, and Youku then began releasing 10-15 minute horizontal short dramas in late 2020. Despite their shorter length and faster pace, they actually weren’t much different from regular TV dramas.

Soon after, short video social platforms like Douyin (TikTok) and Kuaishou joined the trend, launching their own short dramas with episodes only lasting around 3 minutes each.

Of course, Douyin wouldn’t miss out on this trend and actively contributed to boosting the genre. To better suit its interface, Douyin converted horizontal-screen dramas into vertical ones (竖屏短剧).

Then, in 2021, the so-called mini-program (小程序) short dramas emerged, condensing each episode to 1-2 minutes, often spanning over 100 episodes.

These short dramas are advertised on platforms like Douyin, and when users click, they are directed to mini-programs where they need to pay for further viewing. Besides direct payment revenue, micro dramas may also bring in revenue from advertising.

 
‘Losers’ Striking Back
 

You might wonder what could possibly unfold in a TV drama lasting just two minutes per episode.

The Chinese cultural media outlet ‘Hedgehog Society’ (刺猬公社) collected data from nearly 6,000 short dramas and generated a word cloud based on their content keywords.

In works targeted at female audiences, the most common words revolve around (romantic) relationships, such as “madam” (夫人) and “CEO” (总裁). Unlike Chinese internet novels from over a decade ago, which often depicted perfect love and luxurious lifestyles, these short dramas offer a different perspective on married life and self-discovery.

According to Hedgehog Society’s data, the frequency of the term “divorce” (离婚) in short dramas is ten times higher than “married” (结婚) or “newlyweds” (新婚). Many of these dramas focus on how the female protagonist builds a better life after divorce and successfully stands up to her ex-husband or to those who once underestimated her — both physically and emotionally.

One of the wordclouds by 刺猬公社.

In male-oriented short dramas, the pursuit of power is a common theme, with phrases like “the strongest in history” (史上最强) and “war god” (战神) frequently mentioned. Another surprising theme is “matrilocal son” (赘婿), the son-in-law who lives with his wife’s family. In China, this term is derogatory, particularly referring to husbands with lower economic income and social status than their wives, which is considered embarrassing in traditional Chinese views. However, in these short dramas, the matrilocal son will employ various methods to earn the respect of his wife’s family and achieve significant success.

Although storylines differ, a recurring theme in these short dramas is protagonists wanting to turn their lives around. This desire for transformation is portrayed from various perspectives, whether it’s from the viewpoint of a wealthy, elite individual or from those with lower social status, such as divorced single women or matrilocal son-in-laws. This “feel-good” sentiment appears to resonate with many Chinese viewers.

Cultural influencer Lu Xuyu (@卢旭宁) quoted from a forum on short dramas, explaining the types of short dramas that are popular: Men seek success and admiration, and want to be pursued by beautiful women. Women seek romantic love or are still hoping the men around them finally wake up. One netizen commented more bluntly: “They are all about the counterattack of the losers (屌丝逆袭).”

The word used here is “diaosi,” a term used by Chinese netizens for many years to describe themselves as losers in a self-deprecating way to cope with the hardships of a competitive life, in which it has become increasingly difficult for Chinese youths to climb the social ladder.

 
Addicted to Micro Drama
 

By early 2024, the viewership of China’s micro dramas had soared to 120 million monthly active users, with the genre particularly resonating with lower-income individuals and the elderly in lower-tier markets.

However, short dramas also enjoy widespread popularity among many young people. According to data cited by Bilibili creator Caoxiaoling (@曹小灵比比叨), 64.9% of the audience falls within the 15-29 age group.

For these young viewers, short dramas offer rapid plot twists, meme-worthy dialogues, condensing the content of several episodes of a long drama into just one minute—stripping away everything except the pure “feel-good” sentiment, which seems rare in the contemporary online media environment. Micro dramas have become the ultimate ‘guilty pleasure.’

Various micro dramas, image by Sicomedia.

Even the renowned Chinese actress Ning Jing (@宁静) admitted to being hooked on short dramas. She confessed that while initially feeling “scammed” by the poor production and acting, she became increasingly addicted as she continued watching.

It’s easy to get hooked. Despite criticisms of low quality or shallowness, micro dramas are easy to digest, featuring clear storylines and characters. They don’t demand night-long binge sessions or investment in complex storylines. Instead, people can quickly watch multiple episodes while waiting for their bus or during a short break, satisfying their daily drama fix without investing too much time.

 
Chasing the gold rush
 

During the recent Spring Festival holiday, the Chinese box office didn’t witness significant growth compared to previous years. In the meantime, the micro drama “I Went Back to the 80s and Became a Stepmother” (我在八零年代当后妈), shot in just 10 days with a post-production cost of 80,000 yuan ($11,000), achieved a single-day revenue exceeding 2 million yuan ($277k). It’s about a college girl who time-travels back to the 1980s, reluctantly getting married to a divorced pig farm owner with kids, but unexpectedly falling in love.

Despite its simple production and clichéd plot, micro dramas like this are drawing in millions of viewers. The producer earned over 100 million yuan ($13 million) from this drama and another short one.

“I Went Back to the 80s and Became a Stepmother” (我在八零年代当后妈).

The popularity of short dramas, along with these significant profits, has attracted many people to join the short drama industry. According to some industry insiders, a short drama production team often involves hundreds or even thousands of contributors who help in writing scripts. These contributors include college students, unemployed individuals, and online writers — seemingly anyone can participate.

By now, Hengdian World Studios, the largest film and television shooting base in China, is already packed with crews filming short dramas. With many production teams facing a shortage of extras, reports have surfaced indicating significant increases in salaries, with retired civil workers even being enlisted as actors.

Despite the overwhelming success of some short dramas like “I Went Back to the 80s and Became a Stepmother,” it is not easy to replicate their formula. The screenwriter of the time-travel drama, Mi Meng (@咪蒙的微故事), is a renowned online writer who is very familiar with how to use online strategies to draw in more viewers. For many average creators, their short drama production journey is much more difficult and less fruitful.

But with low costs and potentially high returns, even if only one out of a hundred productions succeeds, it could be sufficient to recover the expenses of the others. This high-stakes, cutthroat competition poses a significant challenge for smaller players in the micro drama industry – although they actually fueled the genre’s growth.

As more scriptwriters and short dramas flood the market, leading to content becoming increasingly similar, the chances of making profits are likely to decrease. Many short drama platforms have yet to start generating net profits.

This situation has sparked concerns among netizens and critics regarding the future of short dramas. Given the genre’s success and intense competition, a transformation seems inevitable: only the shortest dramas that cater to the largest audiences will survive.

In the meantime, however, netizens are enjoying the hugely wide selection of micro dramas still available to them. One Weibo blogger, Renmin University Professor Ma Liang (@学者马亮), writes: “I spent some time researching short videos and watched quite a few. I must admit, once you start, you just can’t stop. ”

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:

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©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 Brands, Marketing & Consumers

Tick, Tock, Time to Pay Up? Douyin Is Testing Out Paywalled Short Videos

Is content payment a new beginning for the popular short video app Douyin (China’s TikTok) or would it be the end?

Manya Koetse

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The introduction of a Douyin novel feature, that would enable content creators to impose a fee for accessing their short video content, has sparked discussions across Chinese social media. Although the feature would benefit creators, many Douyin users are skeptical.

News that Chinese social media app Douyin is rolling out a new feature which allows creators to introduce a paywall for their short video content has triggered online discussions in China this week.

The feature, which made headlines on November 16, is presently in the testing phase. A number of influential content creators are now allowed to ‘paywall’ part of their video content.

Douyin is the hugely popular app by Chinese tech giant Bytedance. TikTok is the international version of the Chinese successful short video app, and although they’re often presented as being the same product, Douyin and Tiktok are actually two separate entities.

In addition to variations in content management and general usage, Douyin differs from TikTok in terms of features. Douyin previously experimented with functionalities such as charging users for accessing mini-dramas on the platform or the ability to tip content creators.

The pay-to-view feature on Douyin would require users to pay a certain fee in Douyin coins (抖币) in order to view paywalled content. One Douyin coin is equivalent to 0.1 yuan ($0,014). The platform itself takes 30% of the income as a service charge.

According to China Securities Times or STCN (证券时报网), Douyin insiders said that any short video content meeting Douyin’s requirements could be set as “pay-per-view.”

Creators, who can set their own paywall prices, should reportedly meet three criteria to qualify for the pay-to-view feature: their account cannot have any violation records for a period of 90 days, they should have at least 100,000 followers, and they have to have completed the real-name authentication process.

On Douyin and Weibo, Chinese netizens express various views on the feature. Many people do not think it would be a good idea to charge money for short videos. One video blogger (@小片片说大片) pointed out the existing challenge of persuading netizens to pay for longer videos, let alone expecting them to pay for shorter ones.

“The moment I’d need to pay money for it, I’ll delete the app,” some commenters write.

This statement appears to capture the prevailing sentiment among most internet users regarding a subscription-based Douyin environment. According to a survey conducted by the media platform Pear Video, more than 93% of respondents expressed they would not be willing to pay for short videos.

An online poll by Pear Video showed that the majority of respondents would not be willing to pay for short videos on Douyin.

“This could be a breaking point for Douyin,” one person predicts: “Other platforms could replace it.” There are more people who think it would be the end of Douyin and that other (free) short video platforms might take its place.

Some commenters, however, had their own reasons for supporting a pay-per-view function on the platform, suggesting it would help them solve their Douyin addiction. One commenter remarked, “Fantastic, this might finally help me break free from watching short videos!” Another individual responded, “Perhaps this could serve as a remedy for my procrastination.”

As discussions about the new feature trended, Douyin’s customer service responded, stating that it would eventually be up to content creators whether or not they want to activate the paid feature for their videos, and that it would be up to users whether or not they would be interested in such content – otherwise they can just swipe away.

Another social media user wrote: “There’s only one kind of video I’m willing to pay for, and it’s not on Douyin.”

By Manya Koetse

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©2023 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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