By Zolzaya Erdenebileg
While Hong Kong’s startup ecosystem is relatively young, it has grown quickly in recent years. Many entrepreneurs are attracted by the city’s high rate of internet penetration, which has allowed for greater adoption of tech innovations. Additionally, the Hong Kong government has been aggressively promoting initiatives to expand entrepreneurship in the face of increased competition from southeast China.
However, Hong Kong’s proximity to Shenzhen, one of the key tech start-up hubs within mainland China, has added dynamic considerations to the Hong Kong startup environment, and this has multiple effects for multinationals and foreign investors.
In this article, we explore the rise of Hong Kong’s startup scene, and the multitude of factors that have contributed to its emergence. We also analyze what it augurs for the Mainland-Hong Kong relationship and how this will affect multinational companies.
By Gidon Gautel
This is Part 2 of a two-part article on Artificial Intelligence (AI) in China. In Part 1, we discuss foreign investment opportunities within the industry.
Many business leaders across the world, including China, do not yet see AI as a priority; at least 40 percent of enterprises within traditional industries in China do not see AI as strategically important. Similarly, in the West, one study suggests only 43 percent of business leaders are likely to implement any type of artificial intelligence in the next three to five years.
A survey by Forrester has found that, of those businesses within the study who choose not to implement AI, 43 percent said there was no defined business case, 39 percent said they were unsure what AI could be used for, and 33 percent did not have the required skills for implementation.
China, often the target of calls for investment into Europe, has been making further inroads into the EU’s digitally advanced economies, giving strong hints in the process as to where Beijing and Chinese businesses see both value and growth being added.
Chinese ride sharing company Didi Chuxing is investing in a smaller European Uber rival, Taxify, which dominates the Baltics. Didi has a strong presence in China, headquartered in Beijing, and providing rides for 400 million users across 400 cities in the country. It provides services such as taxi hailing, private car hailing, Hitch (social ride-sharing), Didi Chauffeur, Didi Bus, Didi Test Drive, Didi Car Rental, Didi Enterprise Solutions, Didi Minibus, Didi Luxe, and bike-sharing to users in China via a smartphone application.
By Gidon Gautel
This is Part 1 of a two-part article on Artificial Intelligence (AI) in China. In Part 2, we discuss how AI can optimize your China based operations.
On July 20, 2017, China’s State Council released a development plan for the country’s artificial intelligence (AI) industry. The plan aims for the total market size of AI related industries in China to exceed RMB 1 trillion (around US$150 billion) by 2020. By 2030, the plan aspires to reach 10 times this figure.
Claims that China has the rest of the world beat in AI are hyperbolic. Although the country ranks first globally for widely cited AI related papers, 70 percent of these are self-citations, and China is still behind the US and UK in terms of publication influence. In 2017, the number of promising AI startups in China, according to McKinsey, was three. The US saw 39 that year.
The latest issue of China Briefing Magazine, titled “Internal Control in China“, is out now and currently available to subscribers as a complimentary download in the Asia Briefing Publication Store.
In this Issue:
- Internal Control for Business in China
- Internal Control Review: Audit and Evaluation
- Internal Control for Day-to-Day Operations
- Using ERP Systems to Improve the Internal Control of Your Business
By Jake Liddle
Shenzhen has been implementing a variety of preferential policies and subsidies to attract high-level foreign talent to the city in the last few years. This year, regulations have been amended and policies have been promulgated to incentivize living and working in the vibrant city.
Alberto Vettoretti, Managing Partner of Dezan Shira & Associates says: “The Shenzhen municipal government has been very active in formulating incentives to attract foreign and local talents to the city, which has recently become one of the most expensive in the Mainland in terms of real estate. Housing prices there have now reached levels comparable to those in Silicon Valley, but salaries are still a fraction of the US innovative hub if taken on an average basis.”
In this article, we detail three recent government initiatives that provide opportunities for foreign talent.
By Waiyan Varsha Tse
Rising minimum wages have led commentators to declare the end of affordable Chinese labor. However, these assertions ignore the vast expanse of the Chinese mainland, and the varying economies that exist within it. The sprawling city of Chongqing especially stands out as a major emerging manufacturing destination for foreign investors.
Over the past years, manufacturing in China has steadily crept inland as companies seek not only to lower their costs, but also to take advantage of government incentive programs aimed at developing western provinces. In particular, the State Council enacted the “China Western Development Plan” in 2000, which prioritized increasing foreign direct investment (FDI) into Central and Western China.
Our weekly round up of other news affecting foreign investors throughout Asia:
Import and Export Best Practices in Laos – Best Practices
As Laos continues to integrate its market and regulatory system within ASEAN, the ease of doing business for both importers and exporters will continue to improve. In this article we explain best practices for importing into and exporting out of Laos.
Growth of Digital Payments Systems in India
Since demonetization in November 2016, and given the ongoing rapid spread of internet connectivity and smartphone usage in India, the country’s digital payments industry is become more attractive for investors. This article illustrates the major factors shaping the online cash and payments sector in India.