On April 7th, 2018, Alibaba announced an investment of 4.5 billion RMB (7.1 bn USD) to Huitongda, showing the intention to develop business in the rural areas of China. They will cooperate on supply source, logistics, technology and life services.
Blockchain technology's momentum has grown significantly in China and it’s clear that this technology is here to stay. Since Chinese New Year, frequent good news has accelerated this trend – The People’s Daily published a whole page talking about how to develop this technology, and it’s been a hot topic even in the ongoing “two sessions” National Party Congress.
The top three tech giants in China - Baidu, Alibaba and Tencent, previously did not talk much about their blockchain development, but with a much more receptive public and regulatory environment, they have revealed a bit more about where they have been focused.
In 2017, the Chinese smartphone market saw its first ever decline, with -4% YoY growth in smartphone shipments and -4.9% YoY growth in smartphone sales.
In China, bar code payments (including QR codes) dominate the mobile payment market. Using a bar code to pay is easy, but comes with risks. In 2017, about RMB 90 million ($14 million) was stolen due to fraud. On December 25th, 2017, the People’s Bank of China (the PBOC) released new regulation to standardize bar code payments. The regulation will come into effect from April 1st, 2018.
Singapore’s PayNow and Thailand’s PromptPay are set to link their national digital payment systems, thereby making it easier to send money between the two countries.
In the venture capital industry, a ‘unicorn’ refers to any technology start-up company which has reached a valuation of over USD $1 billion, as determined by private or public investment. The term was devised by venture capitalist Aileen Lee, founder of CowboyVC, a venture capital fund based in Palo Alto. She discovered that only 0.07% of software start-ups founded in the 2000s would ever reach a $1bn valuation, thereby being as rare as finding a unicorn.
It is quite obvious that Alipay is the largest mobile payments platform in the world, with approximately 400 million registered users. Third-party payment platforms play an integral role in Chinese consumers’ everyday transactions because of the multi-faceted services offered, such as ecommerce and mobile payment transactions.
According to iResearch data released in September 2014, the Gross Monetary Value of China’s third-party online payments reached 1,840.66 billion Yuan (USD $299 billion), with year on year growth of 64.1%.
The People’s Bank of China (the PBOC) started issuing the Payment Business License since May 2011 to non-banking institutions. Up until March 2015, the PBOC had issued 270 payment licenses.
Bitcoin and blockchain technology has raised the specter of dis-intermediation for the leading global banks in the last few years.
Starting from only 18 employees and a small B2B platform, Alibaba has become an e-commerce giant in China and already expanded into many other industries. But Alibaba has no plans to stop, Alibaba is now working on an even bigger ambition: to insert itself into ever part of our everyday lives.