China’s Tech Tomorrow

www.ozy.com [OZY]() The newsletter to fuel — and thrill — your mind. Read for deep dives into the unmissable ideas and topics shaping our world. Jan 18, 2022 TODAY More than four decades ago, when China was emerging from the ashes of Mao Zedong’s rule, its then-leader, Deng Xiaoping, identified technology as one of the “Four Modernizations” that the country needed to embrace to catch up with the West. Today, those roles have reversed. China is a global leader in many tech fields, from 5G and artificial intelligence to transportation and e-commerce. Join us in today's Daily Dose for a deep dive into the future of Chinese technology and how it could change everything from how children might study to how we travel. AI & Robotics 1 - BAT You might know of FAANG: That’s short for Facebook, Amazon, Apple, Netflix and Google (now Alphabet), the five giants that rule American tech. Well, its counterpart in China is [BAT: Baidu, Alibaba and Tencent](. And while they each dominate their own arenas — Baidu is China’s largest search engine, Alibaba is the king of e-commerce, and Tencent is the social media and gaming boss — there’s one area they command jointly: artificial intelligence. Between them, the three firms are investors in more than half of China’s top 190 AI firms. 2 - Classroom, with Chinese Characteristics As school starts, the students [put on their headbands]( and begin an exercise where the AI-powered device on their heads measures just how well they’re concentrating on an assigned task. Their scores are sent to their parents. It’s just one of a myriad ways in which China is using [AI to revolutionize schooling]( — from robots that take attendance and teach basic lessons to facial recognition cameras that ensure students are paying attention in class. It’s controversial, but [the parts that work]( could shape our future classrooms. 3 - Robot Colleagues China wants to automate its manufacturing to increase productivity. But unlike the West with its declining youth population, China needs to find employment for tens of millions of new job seekers each year. So it’s found a smart balance that also holds promise for other emerging but young economies such as India, Indonesia and Nigeria: so-called “cobots.” These are robots that work with human colleagues instead of replacing them, and they’re ideal for smaller businesses that want to automate some of their systems but can’t afford — and don’t need — large, industrial-scale robots. 4 - Data Farms The [predictive accuracy of AI]( hinges on the volumes of data at its service. And that’s where China’s [giant AI farms]( come into play. These are large hubs where thousands of workers sit at terminals, scrutinizing mountains of data and using it to refine the systems behind everything from driverless cars to facial recognition. Don’t miss the irony: China’s AI prowess ultimately depends on human labor. 5 - Big Brother But there’s a [darker side to China’s use of AI](. Beijing is building the world’s first AI-based policing system. It has used facial recognition to monitor the minority Uyghur community in Xinjiang, and robot police officers for security in other cities, sparking concerns of misuse. China is also incorporating AI into the military infrastructure. It has already [tested drones]( that can carry passengers. 5G 1 - Pandemic Edge The U.S. and Europe have struggled with [delays in the rollout]( of this technology that could transform everything from transportation to health care. But the coronavirus crisis [isn’t holding China]( back: It’s [building tens of thousands]( of base stations every week and already has more than 450 million 5G users, according to official figures. Catching up with that lead won’t be easy. 2 - Geopolitical Storm But spreading globally will be just as difficult for China. The U.S., U.K., Australia, New Zealand and Canada have [banned China’s biggest manufacturer of 5G networks, Huawei](, citing security concerns. Others such as Singapore have chosen Huawei’s rivals. But will bans alone work in helping the West gain 5G supremacy? 3 - Setting the Standards Even as China faces international challenges, it is [driving the process of setting global standards in 5G technology](, submitting more technical recommendations to the United Nations’ International Telecommunication Union last year than the next three nations — South Korea, the U.S. and Japan — combined. That could give Beijing an advantage in deciding international rules for 5G use. 4 - City of the Future Dusty and isolated, the city of Yinchuan is China’s unlikely candidate for a model 5G city of the future. It plans to use the technology to power everything from smart street lighting and automated garbage disposal to traffic management and facial recognition-based payments on public transport. Could this be how all our cities look a decade from now? [Read more]( 5 - Health to Himalayas China has started using 5G networks for [emergency medical care](. And the country’s ambitions are touching new heights — literally. China is building [5G antennas on top of Mount Everest](, the world’s tallest peak. Officially, the idea is to help hikers and climbers access the internet from heights where it was previously impossible. But that 24/7 access to the top of Mount Everest could also hold strategic benefits. Transportation 1 - DiDi Dominance Uber took on DiDi Chuxing in China [and lost](, selling its business there to the ride-sharing giant in 2016. Though DiDi announced last month it would delist from the New York Stock Exchange, its most recent [valuation of $39 billion]( makes it a close competitor to Uber. DiDi’s popular app-based service is also available in [Japan, Brazil, Mexico, Australia, Chile, Colombia, Costa Rica]( and beyond. 2 - Boom and Bust Only recently, it appeared as though China’s tradition of cycling was getting a technological makeover. A nation of cyclists that has switched to fancy cars [moved back to modern bike sharing](. Startup Ofo’s distinctive yellow bikes became ubiquitous around China’s megacities, and 60 other firms followed in its path, confident that it would lead to success. It did for a while, but poor infrastructure meant no one broke even, and an eagerly awaited cycling revolution has stopped in its tracks, with many of these firms folding. It’s a [cautionary tale](. Not everything works, even in China. 3 - Auto Ace For years, China has suffered the reputation of a copycat — former President Donald Trump insisting Beijing had been stealing everything from vaccine data to military secrets. But one area where China’s making a clean break is in auto innovation. And backed by their government, Chinese firms are buying up international firms with expertise to make up for the lack of adequate domestic talent. That’s allowing them to race to the front in developing some of the world’s smartest and most sophisticated cars. [Read more]( 4 - Space Dreams And the country’s ambitions aren’t limited to planet Earth. As it races against the U.S. in outer space — China launched its first Mars mission in July 2020 — the country is also breeding a rapidly growing private space industry that might soon be able to compete against SpaceX. E-Commerce 1 - World on Your Phone Combine Facebook, WhatsApp, Amazon, Uber and PayPal into one — and [that’s WeChat](, China’s super app. It has nearly [1.2 billion users]( across China and [increasingly in Southeast Asia and other parts of the continent](. And while India has banned the app, and President Trump once threatened to block its use in the U.S., WeChat’s unmatched integration of social media and e-commerce has made China the ideal test market for major global brands, including the world’s biggest luxury giants. 2 - The Next Amazons Jeff Bezos’ Amazon is the biggest e-commerce platform in the world, but China’s [JD.com and Alibaba]( are second and third, and are nipping at its heels. [Alibaba’s earnings]( in a 24-hour span on Singles’ Day in China in 2019 were greater than Amazon’s sales over the previous quarter. 3 - Upstarts But [newer pretenders are threatening]( to challenge these giants by focusing — for a start at least — on more niche, but still large, audiences. Mogujie is a social e-commerce platform that sells only young female fashion, while XiaoHongShu targets 18-35-year-old women keen to buy luxury goods from abroad. 4 - Gaming Tencent, which owns WeChat, is also the world’s [largest video game manufacturer](, and has [benefited from growing demand]( for online games during the pandemic. Now it’s looking to take on Alibaba and JD.com in [mobile e-commerce]( more directly. Go Deeper Read: - China’s Disruptors: This [must-read]( book charts China’s dramatic rise from tech backwater to global leader, and introduces you to the secret code that will drive the next generation of Chinese success. - AI Superpowers: This [brilliant book]( by AI pioneer Kai Fu Lee — the former head of Google China — carries rich insights into the artificial intelligence empire that Beijing is building. Watch: - Crocodile in the Yangtze: This documentary — [available on YouTube](— takes you behind the scenes as a young Jack Ma, a former English teacher, takes on eBay to build Alibaba. - Too Big For China: Also [available on YouTube](, this documentary takes you from the foot soldiers to the CEOs of the next Chinese startups that could rule the world. Listen (Podcasts): - The Harbinger: Produced by Yale graduates who work at China’s top venture capital firms, [this podcast]( will introduce you to the next big tech CEOs from the country. - Tech Buzz China: This [biweekly podcast]( will keep you updated on China’s innovations. [H.R. McMaster on 'The Carlos Watson Show']( In 2018, after a tumultuous year as Trump’s National Security Advisor, H.R. McMaster resigned and brought his illustrious military career to an end. After serving under five administrations, he’s learned a lot about how to lead (and how not to). Now, McMaster talks honestly with Carlos Watson about his disagreements with Trump, his military philosophy, and his love of Motown. [Watch now]( ABOUT OZY OZY is a diverse, global and forward-looking media and entertainment company focused on “the New and the Next.” OZY creates space for fresh perspectives and offers new takes on everything from news and culture to technology, business, learning and entertainment. [www.ozy.com]( / #OZY Welcome to the New + the Next! [OZY]() [TV]( | [PODCASTS]( | [NEWS]( | [FESTIVALS]( A Modern Media Company OZY Media, 800 West El Camino Mountain View, California 94040 This email was sent to {EMAIL} [Manage Subscriptions]( | [Privacy Policy]( | [Read Online](