Chinese Technology Companies Are Experiencing Slowdowns

China’s tech sector is taking a hit. Revenue for e-commerce giant Alibaba posted what appears to be its most sluggish quarterly increase ever, at 9 percent, with competitor JD.com also paced among its worst performances, with revenue up 18 percent for Q1. The nation’s search engine leader, Baidu, reported 1 percent revenue growth, while Tencent remained flat. Supply chain problems due to the COVID-19 resurgence in conjunction with Beijing’s recent measures to battle back monopolies are cited as causes for the negative market turn. Since late 2020, China has been investigating alleged monopolistic practices among many top corporations. Continue reading Chinese Technology Companies Are Experiencing Slowdowns

Didi Exits NYSE for Hong Kong, China Tightens Tech Control

China is making an investment statement as it attempts to take control of its financial future and set new yen-centric standards for international monetary exchange. Much is being read into Didi Chuxing delisting itself Friday from the New York Stock Exchange, where it raised billions of dollars, capping at $39 billion for the Beijing version of Uber. The message is: with money of its own and a knack for finding more, the world’s No. 2 economy feels it no longer needs Wall Street and says it will relist on the Stock Exchange of Hong Kong. Continue reading Didi Exits NYSE for Hong Kong, China Tightens Tech Control

China Targets 34 Internet Platforms for Antitrust Compliance

Since China fined Alibaba $2.8 billion for violating antimonopoly regulations, 34 Chinese companies have publicly pledged to comply with those laws. The State Administration for Market Regulation (SAMR), the country’s antitrust watchdog, published 12 statements, including those from TikTok owner ByteDance, Baidu search engine, and e-commerce platforms JD.com and Pinduoduo. The companies all vowed to build a fair and competitive market in specific areas. SAMR said it planned to publish more such avowals. Continue reading China Targets 34 Internet Platforms for Antitrust Compliance

Alibaba, JD.com Set Record Earnings for China’s Singles Day

On China’s Singles Day, Alibaba Group reported it earned a record $75.1 billion this year, in part by extending the buying window to eleven days. This year, however, Alibaba, founded by Jack Ma, is under increasing pressure from regulators who suspended the dual IPOs of Alibaba’s Ant Group. Since then, according to Refinitiv data, the company’s shares on the New York market have dropped 16 percent, erasing $137 billion from its market value. Alibaba and JD.com said the U.S. was the top seller of goods to China. Continue reading Alibaba, JD.com Set Record Earnings for China’s Singles Day

Alibaba Buys Majority Stake in Big-Box Grocery Store Chain

Alibaba Group, China’s most valuable company with a market capitalization of $800+ billion, is paying $3.6 billion to gain more control of Sun Art Retail Group, which operates 480+ large supermarket stores. As in the U.S. and elsewhere, COVID-19 has seen many consumers shift to online shopping for food and other essentials. In 2017, Alibaba acquired a 36 percent stake in Sun Art for about $2.9 billion. With the latest purchase, Alibaba will own about 72 percent of the company and is positioned to compete with Walmart. Continue reading Alibaba Buys Majority Stake in Big-Box Grocery Store Chain

Alibaba Breaks Singles Day Record, But Economy Is Slowing

A recently invented Chinese holiday, Singles Day, posted $1 billion in sales in 85 seconds on November 11, with a gala kickoff event headlined by singer Mariah Carey, model Miranda Kerr and basketball star Allen Iverson. For the holiday, the equivalent to our Black Friday, sales rose 27 percent, nonetheless the slowest annual increase in its 10 year history (last year sales rose 39 percent). Alibaba shares doubled in 2017 but this year are down 16 percent, the result of a slowing economy and U.S. trade tariffs. Continue reading Alibaba Breaks Singles Day Record, But Economy Is Slowing

Despite Obstacles, Google May Make its Way Back to China

Getting back into China after an eight year absence isn’t going to be easy for Google, even though the company developed a mobile search app capable of employing censorship. President Trump is threatening to dramatically expand existing tariffs against China, which could retaliate by blocking the operation of U.S. businesses there. Recently, Qualcomm ended its attempt to buy NXP Semiconductors after China withheld approval; China also sidelined Facebook’s plan to build an innovation hub there. Continue reading Despite Obstacles, Google May Make its Way Back to China

Google Plans to Invest $550 Million in China Retailer JD.com

As part of its efforts to expand in Asia and compete with Amazon, Google is investing $550 million in Chinese e-commerce platform JD.com. The partnership will include the Google Shopping advertising platform promoting JD.com products, which should help the Beijing-based Jingdong (formerly 360buy) reach beyond China and Southeast Asia markets to the U.S. and Europe. Google has been ramping up investments across Asia. The company recently invested in Indonesian ride-hailing company Go-Jek, and is reportedly considering an investment in Indian e-commerce upstart Flipkart. Continue reading Google Plans to Invest $550 Million in China Retailer JD.com