Open in app

Sign in

Write

Sign in

A Guide to Learning about Chinese Tech in Two Weeks

Jessica Lee
12 min readMar 6, 2018

This article is the third in the series on learning in two week sprints.

In this sprint, I focused on learning about the Chinese tech ecosystem. Part I details the process of the sprint while Part II elaborates on what I learned.

The first overview article for why I completed a series of sprints can be read here.

Photo from The Hoffman Agency

Part I

Why Chinese tech?

I’ve made a point over the past half year to learn more about my parents’ upbringing in rural China during the Cultural Revolution. Previously when I had reflected on this, I realized I knew surprisingly little about their childhoods. It was fascinatingly different from my own, with state-run farms, Little Red Books, very little to eat, trekking hours to school, and being selected by the government to be the first in their villages to attend university.

They left China in the 80s to initially pursue an academic path in marine science. Eventually, however, they chose a more entrepreneurial path as car dealership owners in the US. If they hadn’t emigrated, I would not have been born since the one-child policy was in effect during the 90s. This fact never fails to motivate me.

Reading Graham Allison’s book, Destined for War, about China’s increasing power in the world has made me more intrigued by US-China relations. I have a strong personal tie to the country as most of my family still lives there. I know China relatively well from a daily life and cultural perspective, but I am now learning more about China on a macro level. I would like to become involved at some point in US-China relations, whether it is through tech, business, or diplomacy.

Initially, I set out to complete a sprint on China’s social, economic, and political trends, but I quickly realized that the topic was much too broad. I brought in my tech background to narrow the focus towards the Chinese tech ecosystem. I knew that the tech ecosystem would be unique given China’s cultural differences, so I was excited to see what I would learn.

My framework for learning

The following are questions that I wanted to answer about Chinese tech:

Technology

  • How do startups and technology companies operate in China? How do they interface with the government? How are they supported?
  • What kinds of backgrounds do Chinese startup founders have? How did they get there?
  • What publications or media should I read or follow?
  • Where do the opportunities currently lie in China?

Greater China

  • What is the best way to learn about China without living there?
  • How do the Chinese see US-China relations evolving over the next decade?
  • What are the cultural nuances or ways of thinking that are different from Western thought?
  • What are classic texts or books to read to gain an understanding of how China operates or became the way it has become?

Individuals in Chinese tech

Next, I made a list of individuals to have conversations with or learn more about. I also had conversations with mutual friends who had experience working in Chinese tech or moved to China to pursue their projects.

  • David Chang (Notable HK VC @ MindWorks)
  • Steven Ji (partner at Sequoia Capital China)
  • Connie Chan (partner at Andreessen Horowitz who analyzes Chinese tech)
  • Jack Ma (CEO of Alibaba)
  • Pony Ma (CEO of Tencent)
  • Eric Jing (CEO of Ant Financial)
  • Lucy Peng (one of the founders of Alibaba, former CEO of Ant Financial)
  • Xing Wang (founder of Meituan, $20B valuation, largest commerce company in China)
  • Kai-fu Lee (started Google China, computer scientist)
  • Oscar Ramos (Chinaccelerator)
  • Tony Zhang and MQ Wang (founders of Zero Zero Robotics)
  • Adam Coates (oversees Baidu’s Silicon Valley AI lab)
  • Tom Kosnik (Stanford E-Bootcamp)
  • Dan Grover (former WeChat product manager)
  • Hugo Barra (exec at Google, exec at Xiaomi, and now VP of VR at Facebook)
  • John Artman (editor in chief for Technode’s English content)
  • Bill Bishop (publishes Sinocism newsletter)
  • David Rank (acting ambassador to China)
  • Wanxin (GM at Ofo)
  • Qing (Partner at GSR)
  • [Forbes 30 under 30 Asia list]
  • [Individuals who work at Baidu, Tencent, Didi Chuxing, RenRenWang, WeChat, China VC, etc.]

Key organizations

Institutes, publications, and venture funds

  • East Asia Institute
  • The Institute of Deep Learning (Baidu’s AI research lab)
  • China Tech Insights (research division within Tencent)
  • Technode (international technology media platform to talk about Chinese startups)
  • Netease Tech (news site about Chinese tech, in Chinese)
  • Tech in Asia (publication)
  • GeekPark (tech articles in Chinese)
  • Hong Kong Entrepreneur Fund by Alibaba
  • Sequoia Capital in China
  • GSR Ventures ($5B VC fund in China)
  • GGV Ventures (another large VC fund)
  • Sinovation Ventures (started by Kai-fu Lee to invest in AI in China and the US)
  • Chinaccelerator
  • Digital Life Alliance (unprecedented ecosystem of leading bio, health networking, sequencing, and AI technology and application companies)
  • I am a Unicorn (TV show about startup pitches in China)
  • Garage Cafe (hotspot for entrepreneurs in Beijing)
  • Schwarzman Scholars and Yenching Academy
  • Tsinghua University’s x-lab and SEM Entrepreneurship program

Large tech companies

  • Alibaba
  • Tencent
  • Baidu (doing research initiatives into deep learning, big data, AI)
  • Ant Financial (financial arm of Alibaba, created Alipay)
  • Xiaomi

Startups and other companies

  • Weibo (Chinese Twitter)
  • Youku Tudou (Chinese Youtube)
  • Toutiao (news aggregator using machine learning to recommend articles)
  • Meituan Dianping (Chinese Yelp)
  • ICarbonX (biotech company, became a unicorn less than a year after founding)
  • Ofo and Mobike (bike sharing companies)
  • Didi Chuxing (ride sharing and Uber competitor)
  • DJI (Chinese drone company with 70% global market share)
  • Face++ (computer vision startup, owned by Megvii, which is a billion dollar unicorn)
  • Ctrip (China’s largest online travel company)
  • DeepGlint (uses computer vision to monitor crowds, backed by Sequoia)
  • Inke (live streaming)
  • Zero Zero Robotics (founded by American educated Chinese founders, drone camera robotics)
  • Pico VR
  • SenseTime (computer vision and deep learning in Hong Kong)
  • Deephi (most advanced and impressive, has close ties to Tsinghua)
  • Bitmain (specialize in crypto mining hardware but now exploring deep learning)
  • Cozitrip (startup in travel)
  • StashD (fashion)
  • Blackmores (health supplements)
  • Juwai (property)
  • Skymind (San Francisco-based deep learning startup that has a branch in China)
  • Momo (meet people near you)
  • Taobao
  • iFlytek (translate Mandarin into other languages)
  • 12306.cn (booking site for trains)

Potential projects to complete

Since this sprint was not a technical exploration, my learnings were mostly content based from my readings and videos I watched.

Because I read several articles on the differences between American and Chinese apps, I was intrigued to see what some Chinese apps looked like firsthand. After downloading many of them, I quickly learned that there was a problem of what I could experience in the apps. Because I don’t live in China, I wasn’t able to fully take advantage of all of its features. Exploring apps at a deeper level is something I would want to complete the next time I find myself in China.

Articles, books, and videos

I read articles from a wide variety of sources both in the United States and China. Some published were in Chinese, which was more difficult for me as I am not completely fluent in Chinese, especially when it comes to technology terminology.

For UI trends, I found Dan Grover’s article to be especially insightful as he lived and worked in China for a few years.

For Chinese AI startups, I found Cognite Ventures’ article on deep learning startup trends to be well written.

Articles

Papers

Books

  • Zhong Hua Shang Xia Wu Qian Nian (translated to The 5,000 Years of China’s Being): a classic text on China’s long history
  • Destined for War by Graham Allison
  • On China by Henry Kissinger
  • How Asia Works by Joe Studwell

Listservs

Videos

Part II

The sections below summarize what I learned in the two weeks after following my framework.

General tech ecosystem

The Chinese culture and view of the world is fundamentally different from what Western ideologies espouse. Collectivism, Maoism, Confucianism, and its long history as an on-and-off global power have shaped its modern identity. More recently, the one child policy in China from 1979–2015 has resulted in a population dip for an entire generation, leading to an imbalance of more than 30 million men than women. These political, social, and economic forces now drive China’s burgeoning tech industry.

Through speaking with those who have had experiences working in Chinese tech, I learned about a variety of unique characteristics that the Chinese tech ecosystem currently exhibits.

Government collaboration is a tightly held relationship. For example, Baidu started an AI lab run by academics with the Chinese government. Having these connections, or “guan xi,” is extremely important to completing successful business deals. The government can easily influence what a company can and cannot do. It seems more common in China to launch initiatives with the government as a partner than it is in the US.

With regards to ecosystem maturity, Chinese startups tend to reach higher valuations more quickly in the timespan of three to five years instead of the five to eight year cycles found in the US. The venture capital and private equity firms in China are still relatively young. They still err on the more cautious end whereas in the US, investors are generally more tolerant and riskier.

As for tech hubs, Beijing is the center for startups with Tsinghua and Peking Universities nearby, although Shanghai and Shenzhen have some presence as well.

Additionally, foreigners trying to start companies in China often run into cultural and language barriers. I have heard stories where these founders are taken advantage of because of their lack of context. It takes a very long time to become connected and comfortable doing business in China.

Artificial intelligence vanguard

China is able to execute on large, complex projects in an astounding amount of time. The 2008 Olympics showcased this speed. The government built up new stadiums, skyscrapers, roads, and even a subway system in a matter of years. A similar project in the US could take a few decades and cost an exorbitant amount of money, assuming completion in the first place.

Another example of this fast pace is the announcement last summer that the Chinese government would be building a one trillion yuan (equivalent to about $147.9 billion) artificial intelligence industry by 2030. The three step plan includes having a target of 150 billion yuan by 2020, 400 billion yuan by 2025, and finally reaching the goal of one trillion by 2030. China also aims to strengthen fundamental research, giving out large grants to researchers. Only time will tell if this very ambitious initiative is successful.

China’s ability to centralize and quickly pour resources into whatever it deems to be important is a key difference. It will draw top AI talent from around the world to China. Andrew Ng of Stanford and Coursera spent some time at Baidu as their Chief Scientist leading their artificial intelligence group. This article told the story of a German academic deciding to start a robotics lab in China because of the large grant he received. If the US government doesn’t quickly mobilize a response, then China could outpace the US in terms of AI output and innovation.

Startup and UI trends

When I asked about what the biggest areas of investment are for tech startups, the answer centered around artificial intelligence and machine learning, which makes sense given China’s goals in this field. Startups such as DeepGlint, Face++, Zero Zero Robotics, Toutiao, and DJI are some of the leading companies in this space.

Another trend I noticed while reading was the number of surveillance and facial recognition startups discussed. The Chinese government has initiated large scale projects, such as an Orwellian-like system for “social credit” in 2014, giving individuals a score based on how good their various actions are deemed to be. In 2015, Alipay launched Zhima Credit to execute on that vision. Americans see this and are shocked that such a product exists, yet it is something that has been increasingly used in China.

With regards to user experience, certain apps in China tend to be all encompassing. For example, the popular social messaging app WeChat allows a user to not only chat but also order a taxi, make payments, and order food. This differs from US apps where functionality can be siloed. Additionally, I was introduced to several individuals during the sprint via WeChat, which was a new experience for me. I had only used Facebook Messenger and email for introductions before.

Photo from Sheng Li Digital

WeChat growth and marketing

I began to marvel at WeChat’s creative ability to launch products successfully. For example, WeChat developed a feature for the Chinese New Year modeled after “red envelopes,” or hong bao. It is a Chinese tradition during this holiday to hand out mini red envelopes with money to friends and family as a gift. I wasn’t in China using WeChat during the New Year for this sprint, so I was unable to experience the feature myself. For this year’s holiday, an astounding 688 million people sent money this way. To put that into perspective, that number is essentially half of China’s population. This is an example of not only ingenious marketing by WeChat but also of a fusion of Chinese tradition with technology.

Beauty norms

Conventional Chinese beauty is a strong norm that pervades China. Some of the qualities that define this are pale, white skin, a very thin physique, and large eyes with double eyelids — an almost fragile look. The Chinese term for this is “bai fu mei,” which literally translates to fair/pale, rich, and beautiful. There is strong social pressure to conform to this. Historically, if you had lighter skin, you belonged to the upper classes that did not have to farm. Today, even when you go to a beauty salon, you have to be careful that there aren’t whitening chemicals in a facial since they are often automatically included.

China’s obsession with this type of beauty led to the rise of Meitu, company that owns a variety of beauty apps, such as BeautyPlus, MakeUp, and the video streaming app Meipai. The beauty apps allow a user to create selfies to slim their face, whiten skin, and enlarge their eyes. In late 2016, Meitu IPO’d, eight years after it was founded.

Foreign startups’ entrance attempts

Another theme in Chinese tech is that it has proven to be consistently difficult for foreign tech companies to successfully enter and grow in China. Google has had an up and down relationship with China, with the government banning Google searches in 2010. It still maintains a research and development office in Beijing. LinkedIn has had the most success, but the path was and is still laden with controversies. A tech company that I worked for wouldn’t even allow us to travel with our work laptops to China due to data breach concerns. Additionally, China has its own versions of YouTube (Youku Tudou), Facebook (Ren Ren Wang), Twitter (Weibo), Yelp (Meituan Dianping), and instant messaging (WeChat). Given that the Chinese companies’ have a strong understanding of the local market and established connections, they are hard to compete against.

Chinese companies have also attempted to reach a global audience. Alibaba has targeted the US market with the launch of 11 Main, a competitor to Amazon, in 2014, but it was deprioritized and sold to OpenSky only a year after it launched. This shows that Chinese companies also have difficulties catering to a foreign market.

Next steps

After completing this sprint, I felt more reconnected to China. I became more self-aware of my desire to learn about China on a deeper level.

Becoming involved with US-China relations at some point in my career is a prioritized goal. I am not yet sure how that will play out, but with China’s economy and position in the world rapidly growing, I would like to take advantage of my background to play a role in mediating that dynamic.

What I have been able to learn in the short two weeks has been fascinating, and I will continue to follow the resources, organizations, and individuals that I discovered.

China
Technology
Asia
Startup
Wechat

--

--

Jessica Lee

Written by Jessica Lee

425 Followers

Help

Status

About

Careers

Press

Blog

Privacy

Terms

Text to speech

Teams