[ad_1]
Hello and welcome to TechCrunch’s China roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people around the world.
Enforcement of China’s new gaming regulations is rolling like a cat-and-mouse game, with the internet giants and the country’s young gamers constantly trying to outdo themselves. Following the ban on Didi applications, small carpooling applications are taking advantage of the potential void in the market.
Tencent and young players
The Chinese saying “Where there is a policy, there is a countermeasure” sums up what is happening in the country’s increasingly stringent regulatory environment for video games. This month, China adopted the strictest rules yet on playing time among underage users. Players under 18 were taken aback, scrambling to find ways to exceed the three-hour-per-week quota.
Within days, gaming giant Tencent acted to eliminate these workarounds. It has sued or issued statements to more than 20 online services selling or trading adult accounts to underage players, the company’s gaming department said in a Weibo advisory this week.
Kids rented out these accounts to play games for two hours for a few dollars without having to go through the usual age verification checks. Such services “pose a serious threat to the real-name gaming system and the mechanism for protecting minors,” Tencent said, calling for an end to these practices.
Educational games
China primarily targets games that are addictive or deemed “physically and mentally harmful” to minors. But what about “good” games for children?
When Tencent and Roblox formed a joint venture in China in 2019, speculation was that the creator-focused gaming platform would give Tencent a head start in making educational games to inspire creativity or something that lends itself to it. ‘would help better align with Beijing’s call to use technology to do more social good. As we wrote previously:
Roblox’s marketing focus on encouraging “creativity” may well match Beijing’s call for tech companies to “do good,” an order Tencent has responded to. Roblox’s Chinese website suggests that it showcases some of its activities as a learning and STEM tool and shows that it is seeking collaborations with local schools and educators.
If Roblox can inspire young Chinese people to design globally popular games, Chinese authorities might start seeing it as a way to export Chinese culture and soft power. The gaming industry is well aware that aligning with Beijing’s interests is necessary to gain summit support. Indeed, a member of the Chinese People’s Political Consultative Conference, a body of non-political spheres such as business to “make proposals on major political and social issues,” said in June that video games are “a effective channel for Chinese culture exports. “
The case of Roblox will be interesting to watch for reading the evolution of Beijing’s attitude towards educational and export games.
Challengers Didi
Didi has had many rivals over the years, but none have succeeded in threatening his dominance in China’s limousine industry. But recently, some of his rivals see a new opportunity after regulators banned new downloads of Didi’s app, citing cybersecurity concerns. Cao Cao Mobility seems to be one of them.
Cao Cao, a high-end ridesharing service from Chinese automaker Geely, this week announced a $ 589 million Series B raise. The round is expected to give Cao Cao ammunition to subsidize drivers and passengers. But amid the wave of anti-competitive government crackdowns, internet platforms these days are probably less aggressive than Didi in his phase of capital-infused growth around 2015.
The app ban appears to have had a limited effect on Didi so far. The app even saw a 13% increase in orders in July, according to the Department of Transportation. While people who get new phones can’t download Didi, they can still access its mini-app running on WeChat, which is ubiquitous in China and has a large ecosystem of third-party apps. It’s unclear how many active users Didi has lost, but rivals will undoubtedly have to shell out big incentives to lure the giant’s drivers and customers.
DTC fast mode
Venture capitalists are investing money in Chinese direct-to-consumer brands in the hope that the country’s supply chain advantage, coupled with its pool of savvy marketers, conquer western consumers. In July, PatPat, a brand of baby clothing, raised a $ 510 million increase. This month, news came that rising DTC brand Cider, which makes Gen Z fast-paced fashion in China and sells it in the United States, has secured a $ 130 million Series B round for a valuation. over a billion dollars. The news was first reported by Chinese tech news site 36Kr and we independently confirmed it.
DST Global led the new cycle of Cider, also with participation from the startup’s existing A16Z, an existing investor and Greenoaks Capital. Investors are clearly encouraged by Shein’s momentum around the world – her new download volume has surpassed Amazon’s in dozens of countries and is often compared alongside industry giant Zara. Unlike a purely Internet business, export-oriented e-commerce has a notoriously long and complex value chain, from design, production, marketing and shipping to after-sales service. Shein’s story may have inspired many followers, but it won’t be easy to replicate.
Source link
