Beijing’s App Annie is growing rapidly with over 80 team members located at Beijing, Hong Kong, Tokyo, San Francisco, and London. Today it serves over 220,000 apps with 85 percent of the top 100 iOS publishers using its service.

App Annie is largely serving clients from the US, Europe, China, and Japan and hasn’t really gotten into Southeast Asia yet. But the team just might start to look at Southeast Asia as it is seeing growth in this region. Vice president of APAC at App Annie Junde Yu said in an email:

Google Play is growing very fast in terms of downloads in the region, especially in countries like Indonesia, Thailand, Vietnam and the Philippines, where downloads are much higher than iOS.

Even though Android downloads are much higher, revenue from iOS is still higher in Southeast Asia. Junde also commented that things will get exciting when Google Play manages to establish local payment options as it has done in South Korea and Japan. He added:

Additionally, despite of the growth in downloads, most of the apps downloaded in the SEA markets are published by foreign publishers. There are local publishers, but most of them have more of an international outlook for content and distribution as opposed to local. It will be interesting to observe the rise of the local players for the local markets, as the local markets grow in downloads and revenues.

(Also read: The Story of App Annie)

A Singaporean in China

Junde takes extra interest in Southeast Asia since he was born in Singapore, which is part of the region. Having worked in China for several years now, Junde says that he still has much more to learn from both markets. But from what he has observed, he sees great connection between China and Singapore, noting that SingTel Innov8 (who also invests in China startups) and ACE Beijing Chapter have done a great job bridging the two regions. In China, he sees Innovation Works and the Great Wall Club (which runs GMIC) also having links with Southeast Asia and Singapore.

Junde says people often mistakenly think that Chinese aren’t paying customers. He notes that iOS revenue isn’t significant even with huge downloads because most iOS users in China do not own a foreign credit card to pay Apple. “It is also inconvenient to use local bank cards to top up their iOS credits,” he added.

For Android, Junde says that most revenue-making apps make their bucks from second and third-tier cities, supported by carrier billing that makes paying just an SMS away. He explains that consumers in these cities do not spend much on entertainment outlets like cinemas, pubs, and clubs and thus they are very much content to spend on mobile content.

If you are very serious about the Chinese market, you need to be physically here. If not, you can also work through a distributor/publishers; there are good options available, like iDreamsky, Yodo1, Cocoachina etc.

Coincidentally, Junde will be back in Singapore for the upcoming Casual Connect conference on May 21 to 23. He will be speaking on the topic “Global Trends in App Store Monetization” on May 22, 11.00am where he will be sharing the latest trends about the app store economy and also interesting tips about marketing mobile apps in Asia.

While his work and heart is now mainly in Beijing, Junde does plan to return to Singapore someday to start a game studio, a pub, or a chicken rice franchise.

(Image credit: Startapp.com)

App Annie is a mobile app store data provider with its headquarters in Beijing, China but it is operated with an international team and vision led by founder and CEO Bertrand Schmitt.

Not many people know but App Annie was actually first started by an offshore outsourcing development company in Beijing called Exoweb in March 2010. Unfortunately, the Exoweb team didn’t have any idea on how to monetize it. But Bertrand saw the potential, he spun-off the company from Exoweb (they remain as minor shareholders), and took over App Annie’s operations in April 2010 with around five people in the team. He told me:

The people at Exoweb are friends of mine. App Annie was a free product. They were focusing on other stuff, software products, and not working on App Annie. I was also very frustrated with the lack of market data on the stores. So I felt as a marketer, I was missing a lot of information about what are the most interesting markets, how much are others doing in terms of downloads etc.

Bertrand who has been in the internet and mobile industry for 14 years also said that the early version of App Annie, though it only had basic data, could serve as a base for premium market data in the future. It first started tracking iOS applications but it now also tracks other app stores such as Google Play and Amazon.

While other data providers provide SDKs to track what’s happening for apps in terms of usage. At App Annie, Bertrand says that things are done different because it is connecting to the backend of the stores to get the data. To put it simply, App Annie works with Apple and Google directly.

For its premium product, App Annie has developed a statistical model with 90 percent accuracy that estimates an app’s revenue opportunity, market share etc and is today used by companies such as Gameloft, Microsoft, Nokia, Google, Tencent, and more. Bertrand assures that the top ten apps are well-measured since they are used by most users.

Today, the App Annie team is made up of about 85 people across 16 nationalities. 70 of them are based in Beijing who largely focus on the product. The others are in San Francisco, Japan, and London who focus on sales (Update: SF is a secondary headquarters for App Annie’s sales, marketing, and market insights.). The App Annie team uses English across all team members and that includes its Beijing headquarters. When asked why China, Bertrand said:

We like it in China and China is a fast growing market. It is hard to get into the market so starting in Beijing is easier.

Despite being a fast growing market, the large publishers who are willing to pay for App Annie’s products are mostly still international companies. 90 percent of App Annie sales are generated outside of China with US and Japan its biggest markets.

To date, App Annie has raised $7 million of venture capital in total and is already cash flow positive. Over 220,000 apps are using App Annie with 85 percent of the top 100 iOS publishers using its service.

“At some point, we’re also interested to do digital content, not just apps,” said Bertrand.

That would certainly seem to be a denial. But interestingly, reporters got a somewhat vaguer text from Sogou CEO Wang Xiaochuan, who told them simply that nothing had yet been finalized. On his microblog account, Wang has denied rumors that he’s slated to join Alibaba. And Sohu CEO Zhang Chaoyang stressed earlier this week that the company has enough cash in the bank that it doesn’t need to put Sogou up for sale.

None of these statements have done much to quash the rumors, however, because it seems no one is willing to come out and directly say: “We’re not selling (or buying) Sogou, period.” Whether or not a deal is ever finalized, the lack of absolute language in all three statements suggests that there is, at the very least, some consideration of an acquisition deal going on behind the scenes. And with Qihoo hoping to pose a more serious threat to Baidu, and Baidu wanting to prevent that, it certainly makes sense that both companies would be looking at Sogou and other minor search players as potential acquisitions to bolster their search offerings.

For now, though, we’ll just have to wait and see. Perhaps someone will outright deny the rumors, or perhaps in a few weeks or months we’ll find out that there was some truth to them when Sogou announces a new investment or merger.

(Tencent Tech via TechWeb)

Beijing may be China’s capital, but as we saw last month, it’s still not winning any races when it comes to internet speed. But the Beijing subsidiary of China Unicom may help to change that today, as it launches a new broadband connection scheme that ups speeds and makes 4 Mbp the slowest connection in the city. Given that Beijing’s average broadband speed right now is 3.5 Mbps, that’s pretty good.

So, if you have a Unicom broadband connection, here’s what’s changing for you, starting today:

• If you had a 512 kbps or 1 Mbps connection, then your connection speed is being raised to 4 Mbps.
• If you had a 2 Mbps connection, your connection speed is being raised to 10 Mbps.
• If you had a 4 or 8 Mbps connection, your speed is being raised to 20 Mbps.
• Fiber-optic customers may be able to get speeds of up to 100 Mbps.

In short, it’s good news all around, with everybody’s internet getting faster while prices stay the same (at least for now).

The move is in part a response to China’s Ministry of Industry and Information Technology’s goal of having 75 percent of Chinese broadband users on 4 Mbps or higher connections this year (up from its 50 percent goal for 2012). Given that seems likely that Unicom may roll out similar plans in other cities across China, so even if you don’t live in Beijing, you can hold out some hope that someday soon, your internet speed will get kicked up a notch too.

(Tencent Tech via Techweb)

Youku is seeing users go mobile – but so are the web pirates.

After merging into one company last year, Youku Tudou (NYSE:YOKU) further established itself as China’s top online video business with its two sites. Combining user-generated videos and licensed movies and TV shows, Youku and Tudou collectively spent over US$100 million last year on securing the rights to an array of Chinese and overseas streaming content. It’s a significant investment (with studios like Sony Pictures and Warner Bros) in capturing the attention of China’s web users – and it’s a treasure they need to protect from web pirates.

In this battle against piracy, Youku Tudou is up against illegal downloading sites that rip licensed content from the company’s sites, and rogue video streaming sites that seek to profit from uploading these rips. And not to forget the ample number of rival Hulu-like services in the nation, like the fast-growing Tencent Video, Sohu TV, and Baidu’s iQiyi (which recently made a major acquisition to expand even further). Yes, they also pay for the rights to content – thereby pushing up the price of licensing – but I get the feeling that they all keep a keen eye on each other.

Overseeing all this for Youku Tudou is Carl Lu, the company’s legal supervisor and leader of the anti-piracy team. Carl tells us that as the site has grown to 150 million daily views from mobile devices, the pirates are going mobile as well. That’s a phenomenon we’ve also seen with Chinese authorities struggling to take down mobile-only porn sites. He explains:

Ever since the establishment of our anti-piracy team in early 2012, […] we have seen a quick expansion for anti-piracy fronts from mainly PC to include mobile devices. Additionally, the fast growth in small piracy video sites is astonishing. The team in July and August 2012 recorded around 500 to 600 such video sites, yet the latest monitoring – now we have to outsource to a third-party agency – in mid-April reported as many as 1,995 such sites, many of them not registered [in China], or with their servers overseas.

The pirates are going mobile

The company’s apps for Tudou (left) and Youku.

Carl points out that Youku Tudou’s “content cost in 2012 was $118.3 million, representing 41 percent of our consolidated net revenues.” The anti-piracy team is there to protect those assets. That team, we’re told, expands as needed, and also loops in outside agencies for added support. Exclusive licensed content is inevitably the most closely guarded:

As a standard procedure, the team will issue warning letters to our contacts, to inform them the upcoming exclusive copyrighted content we carry. Once we detect any [copyright] infringement, we will send them take-down notices. Attorney letters if no response. If we need to prepare for more serious steps, we will take notarized evidence. The last resort is an official lawsuit.

The Youku and Tudou sites have to monitor what their own users are up to because an individual uploading, say, another site’s licensed content in bite-sized chunks will cause problems. Carl says, “For that, we have an in-house fingerprinting system, and another third-party system to detect pirated content in addition to our team’s manual review.”

Despite China’s top web companies pushing forward licensed content – like Baidu’s revamped music streaming portal, and many of China’s top video streaming sites converting their movie and TV serials content into kosher copies – there’s still plenty of offline and online piracy in mainland China. From the country’s notorious DVD shops, to P2P platforms like Xunlei, to blatant direct download pirates, there are still plenty of dodgy ways of watching a new movie or an entire season of a popular TV show.

Last month, authorities took down two of China’s biggest media piracy sites, conveniently enough on World Intellectual Property Day. But one of then, YYeTs, is now back online.

Chinese TV dramas make up 60% of traffic

Despite the challenges, it’s clear that web video is now a crucial draw for major web companies in China. A total of 4.1 billion hours of online videos were watched in one month last summer, and that number has plenty of room for growth as smartphones gradually become more ubiquitous across broader swathes of China.

Of all the licensed content on Youku and Tudou right now, 60 percent of total traffic on the sites stem from Chinese TV serials. US dramas – I see that The Vampire Diaries is the hottest right now on Tudou – represent, Carl says, “one of the fast growing categories” but still only account for three percent of traffic.

While much of the streaming is free, some require a fee as part of the Youku Premium package. That service has seen two million transactions since its beta launch, but that’s a figure which hasn’t been updated by the company since last year. While the transition to mobile seems to be going well for Youku Tudou and a few other such sites, it’ll be tougher to get consumers to pay for the latest movies or TV shows. In order to capture the fast-growing mobile user-ship, Youku is launching mobile ads this month.

Youku Tudou plans to ramp up its battle with the web pirates even more this year, so we’ve not heard the last of this fight.

CEO and Founder at InMobi, Naveen Tewari, speaking at the Global Mobile Internet Conference 2013 in Beijing

Founder and CEO of mobile ad network giant, InMobi, Naveen Tewari, has come a long way. Naveen is an engineer by training, studied at Harvard Business School, and worked at consulting firm McKinsey. In between all that, Naveen also had some experience working in startups while he was in Silicon Valley.

Entrepreneurs being entrepreneurs, Naveen was very fascinated with the rapidly changing mobile internet. He wanted to build something which he could call his own. Naveen and his team started to dabble and among their first few projects was a VOIP application and also a chat application. But it was too early for the market back then. So the team started to question, “What are the things that could work? Maybe there’s a play for us if we were to build a fundamental service?”

These fundamental services range from mobile e-payments to advertising platforms. Therefore, with more interest in the advertising side of the business, mKhoj was founded in 2007. The name was later rebranded to InMobi to suit the international audience better. Naveen told me:

Over the period of years, we started to see success. We decided to go broader and into different markets and not just stick only to Asia. That’s how we expanded.

InMobi has had many turning points. Naveen pointed out three. The first was when the team decided to pivot when their chat application wasn’t gaining traction. “Pivoting really lead to the next level of growth for us,” he added.

The second one was when InMobi received funding from Kleiner Perkins Caufield and Byers (KPCB), a renowned global venture capital firm. The investment, said Naveen, gave InMobi a lot of confidence to grow and compete globally. The vote of confidence from KPCB also helped InMobi attract more talent to join the team. The third turning point was when InMobi received $200 million in funding from Softbank which really helped the company scale quickly in various markets.

We have doubled or tripled down on technology. We have built multiple platforms to go after the entire value chain of the ad business. We made acquisitions too to fill that up. We have also deepened our strengths in local markets – in the UK, Europe and launching ourselves in Korea, China, and Japan.

“We’re one of the largest mobile ad networks in China”

Today, InMobi can pat its chest and call itself a global company. Outside of India, it has offices and operations in Australia, Taiwan, the US, the UK, France, Italy, Russia, Germany, China and more. Despite launching in China only in late 2011, Naveen says that InMobi is “one of the largest mobile ad networks in China.”

An InMobi China PR representative later filled me in that the company is seeing 400 million impressions a day, serving 30,000 applications in China. Naveen believes that by the end of 2013, InMobi will be the largest mobile ad network in China.

We have aggressively invested into China. It’s a big market, we can’t just fiddle around with it. We don’t want to lose.

InMobi has offices in Beijing and Shanghai with more than 50 people running its China operations. When looking for talent, Naveen says that hunger and passion are the key things he is looking for.

Growing from a startup to a multi-national corporation, InMobi faces challenges like any fast growing young company would too. Naveen told me that as a young organization with little processes it was tough running a global operation with 25 offices while keeping one culture, one system, and communicating clearly with everyone. He also said:

As a company what we faced was to showcase and tell people that we have a great product. People expect great products coming out of Silicon Valley, innovations coming out of Silicon Valley and probably didn’t expect that innovation to come from an Indian company.

Despite the problems, InMobi has had a great reception around the world. Today, the company is close to reaching 700 million smartphone users across the world. InMobi was also recently crowned by MIT Technology Review as one of the 50 most disruptive companies in the world.

The new page asks players “How else can you play an FPS?” and then presents them with a eight this-or-that voting options, each relating to a particular element of gameplay design. The percent of votes each option has accrued is prominently displayed, and while the site doesn’t explicitly say so, it certainly implies that the higher-voted options will be implemented into the game.

If Netease really plans to abide by these votes — we’ve contacted the company for comment — then I believe this will be the world’s first FPS from a major development studio to crowd-source such huge aspects of its game design. It’s a bold move, and one that likely means we won’t be seeing this game anytime soon, as based on these questions it seems like the game must be in a very early phase of development.

So what choices are gamers being given, and what are they choosing so far? The page has only been up for a day, but it appears to have already attracted thousands of votes, resulting in these choices:

Aim-assist vs. pure skill: Here, 83.69 percent of respondents so far have voted for having some degree of aim-assist to make shooting more precise. This shouldn’t come as much of a surprise as many modern shooters including Call of Duty and Battlefield have aim-assist mechanisms so that aiming is not 100 percent manual.

Progressive characters vs. static characters: Here, players are pretty torn, with 45.67 percent voting for progressive characters that can be leveled-up, specialized, and personalized, and 54.32 percent voting for static characters whose only differences are their external appearances (which makes the game fairer in multiplayer matches).

Responsive maps vs. static maps: Players overwhelmingly (89.09 percent) prefer responsive maps that may change over the course of gameplay (for example, a hole gets blown in a wall or a building collapses).

Story-based single player vs. arcade-style single player: When asked whether they preferred a single player mode with characters and a story or an arcade-style single player mode that just focuses on fun carnage, voters so far definitely prefer the game to tell a story (87.71 percent).

Large-scale battles vs. small-scale battles: Do players want Battlefield style engagements, with huge maps, vehicles, and long range engagements, or Call of Duty style smaller maps that are more focused on speed and foot battles? Voters so far prefer the former (82.74 percent).

Varied actions vs. traditional actions: Players have thus far indicated that they’d prefer playable characters to have varied actions (running, crouching, walking, creeping, assassinations, etc.), rather than have a game with fewer actions that’s more focused on pure speed and skill (83.9 percent to 16.09 percent).

Character classes vs. All-around warriors: Voters are split on whether they want different character classes with different skill sets (for example, a medic whose stats are geared towards healing, a heavy whose stats are geared towards causing maximum damage, etc.) or characters who are equally capable of doing anything so long as they have the right equipment, with the former option thus far garnering 46.98 percent of the vote and the latter 53.01 percent of it.

Upgradeable guns vs. standard weapons: Having ‘standard’ guns that can’t be upgraded ensures fairness and emphasizes the differences between each weapon, but so far gamers still prefer weapons that can be modded and upgraded, with 83.73 percent of respondents voting for that option.

As you can see, some of these options certainly indicate that not much work has yet been done on the game beyond the apparent creation of a new game engine (for example, the fact that Netease is asking if gamers prefer a story mode or an arcade mode for single player would seem to indicate developers haven’t really started work on the single player sections of the game yet).

We’re not completely certain that Netease is totally committed to abiding by these votes, and we’re hoping to hear back from the company soon with more details about how the game will be designed. If major design decisions like this really are being crowd-sourced, that would seem to be an industry first, but I wonder whether it will make for a good game. There is always the risk that when you try to please everyone you end up pleasing no one, and the crowd-sourced approach to design could certainly lead to a Frankenstein-style final product with lots of interesting bits but no cohesive whole. Either way, it’s a fascinating idea and we’re going to pry as much detail as we can out of Netease about it, so stay tuned!

Image via Reuters

I’m beginning to think we might as well just consider Huawei and ZTE, given that they seem to pop up together constantly in the news. And, unfortunately for both companies, it’s never something good. When we last checked in with the dynamic duo it was because they were (and still are) under investigation by Indian Intelligence authorities, and now there’s more bad news for the Chinese telecoms in the form of this Reuters report suggesting the European Union may levy trade duties against Huawei and ZTE over what it considers to be illegal subsidies from the Chinese government.

Needless to say, Huawei and ZTE don’t see it that way and deny any wrongdoing. Chinese foreign ministry spokesman Hong Lei told reporters on Wednesday:

We hope the EU can proceed from the standpoint of protecting the stable development of trade relations with China and not make promises to undertake protectionist measures or adopt restrictive measures.

I have a feeling that having an official government spokesperson step in to defend the companies is not going to help dissuade the EU or anyone else that Huawei and ZTE are entirely too closely tied with the Chinese government. And indeed, the EU is apparently as concerned about security as the US and India are:

An internal EU report last year recommended that the 27-member bloc should take action against Chinese telecoms equipment makers as their increasing dominance of mobile networks made them a threat to security as well as to home-grown companies.

The increased scrutiny bodes poorly for both Huawei and ZTE, as both companies do significant business overseas, although ZTE is probably worse off since it is already losing boatloads of money. But the concerns expressed by lawmakers in the US, India, and the E.U. should give the companies pause — if they’ve managed to scare three of the world’s biggest markets on three separate continents, perhaps there really is something wrong with the way they conduct business.

Or perhaps it’s just a PR problem. Certainly neither company could be accused of having mastered international public relations, and the occasional revelations that they’re doing things like working with the Iranian government on “big brother” domestic spy equipment haven’t helped. As I pointed out above, it also isn’t helping when the Chinese government jumps to their defense — all that does is reinforce the perception that it’s a de facto state-run company, even though that’s not the case. Obviously Huawei and ZTE can’t really control what the government says, but if China wants its tech brands to succeed abroad, it might want to consider letting them sink or swim on their own, because the current method clearly isn’t working very well.

(via Reuters)

China’s biggest web company by revenue has just posted its Q1 2013 financial report. Tencent (HKG:0700) reports rocketing revenues and profits for the whole group, which covers products across social media, gaming, advertising, e-commerce, media, and more. Tencent’s quarterly revenues hit US$2.161 billion, up 11.5 percent on Q4 last year, and up 40.4 percent from the same period last year; net profits reached $649.4 million in Q1, up 17.3 percent QoQ or 37.4 percent YoY.

Tencent makes China’s biggest social export, WeChat. In today’s report, the company revealed that it now has nearly 195 million monthly active users on the social messaging app (194.4 million to be precise); that’s up 23.1 percent on the previous quarter, which is up 228.4 percent in a year. WeChat has over 300 million registered users, and is likely to exceed 400 million some time this month. As we noted last week, WeChat’s significant number of active users puts it close to surpassing Whatsapps’s 200 million actives, though about 90 percent of WeChat’s user-base is within mainland China, so it’s not that much of a global success yet.

Other social numbers:

• QQ instant messenger hit 825.4 million monthly active users, up 9.8 percent on Q1 2012. QQ’s peak simultaneous users reached 173.0 million, which was down 3.3 percent across the year.
• Qzone, the broader social network around QQ, got up to 611 million monthly actives, up 5.9 percent in a year.
• QQ Game Platform saw peak simultaneous users of 9.2 million, up 5.9 percent over the same period.

In other financial data, value-added services accounted for 78.7 percent of revenues in Q1 this year, reaching $1.72 billion. That’s up 13.6 percent from the last quarter. Online gaming revenues increased 19.3 percent over the same period to amount to $1.21 billion. That was mostly down to China-area gamers on things like Crossfire, and was boosted by increased gaming activity during Chinese New Year.

Founder, chairman, and CEO Pony Ma says in today’s report:

During the first quarter of 2013, we saw broad-based growth in user engagement and revenue across our key activities. This growth has enabled us to fund investments in longer-term opportunities such as WeChat international user acquisition, online video content aggregation, and e-commerce footprint expansion, while maintaining a healthy expansion rate in earnings and cash flow. We saw both strategic and financial benefits from our portfolio of investee companies, including a further special dividend from Mail.ru.

We will continue to invest proactively in innovation and technology, and to cultivate our open platform, in order to capture the mobile opportunities ahead and strengthen our position as the leading internet platform company in China.

WeChat hasn’t really been monetized so far, but Tencent will soon endow it with social gaming integration similar to what has been done by rival apps Line and KakaoTalk.

Find the full report on Tencent’s investor relations page.

WeiboSuite should prove an invaluable tool for China researchers and journalists who don’t speak Chinese but still want to keep track of what’s happening on China’s most happening social network. Obviously, with billions of posts, WeiboSuite hasn’t — and cannot — translate every single post into English, but it indexes and auto-translates the 1,000 most recent deleted posts, which makes it valuable for journalists who generally only need to see recent posts anyway. For example, when I searched for “Tibet,” WeiboSuite turned up an interesting post from yesterday alleging that there was a fairly major anti-government protest in Naqu Biru County in Tibet on Sunday.

WeiboSuite also includes an image-to-text translator that should be effective in helping journalists deal with those pesky “long weibo” posts that include long sections of text uploaded as an image to circumvent Weibo’s character limit (not to mention its keyword blocks).

Finally, WeiboSuite also comes with an image splitter. Weibo users often upload multiple photos in one long image, and while that format is convenient for Weibo it’s not great for other platforms. WeiboSuite’s image splitter helpfully breaks those images down into separate image files for each photo without the need for any editing software or tiresome cropping.

In short, WeiboSuite is an awesome tool for journalists or anyone with an interest in following what’s going on on Weibo. My hat is off to the team at Hong Kong University that created these tools; they have really done something quite cool here.

(via SCMP)

Internet cafe or fight club?

Last week, an argument between some patrons at a Chinese internet cafe ended in violence when one man smashed another in the face with an empty beer bottle. The victim was hospitalized; the aggressor arrested. The sum they were arguing over? 1 RMB ($0.15).

The dispute arose when internet cafe cashier Song Na accidentally charged a Mr. Cui’s card with 1 RMB more than he had paid. Since her wages are only 30 RMB per day ($4.76) and her boss deducts any errors from her wages, she sought out Cui in the cafe to ask him to return 1 RMB. Cui was playing games with his friend Jin and Jin’s girlfriend, and he refused to return the money, saying that she hadn’t charged his card with any extra money. An argument started, Song’s husband ran in to defend her, blows were exchanged, and the parties were ultimately pulled apart relatively unscathed. Song and her husband gave up on getting the 1 RMB back, and Cui and his friends left the cafe.

But Cui’s friend Jin apparently couldn’t get over the conflict, and doubled back to the cafe, grabbing an empty beer bottle along the way. He came up behind Song’s husband as he was getting onto his bike, tapped him on the shoulder, and then smashed him in the face with the beer bottle when he turned around.

In the subsequent interrogation with police, Cui and Jin said that the initial dispute arose in part because they were right in the middle of playing a game and Song had asked them to stop, putting them in a bad mood. Jin also said that Song had cursed at his girlfriend, which pissed him off. Cui was released after a 500 RMB ($79) fine, but Jin has been detained by police. Song’s husband, meanwhile, was hospitalized and racked up a significant medical bill.

Internet cafes are a great way for people without the resources to buy their own computers to access the web, but they can also be a breeding ground for violent disputes, including murders, and they’ve also proved a good hunting ground for pedophiles and serial killers. I have argued before that China’s internet cafes are not a good place for children, and violent disputes like last week’s bottle-smashing certainly seem to support that hypothesis.

But I also wonder whether internet cafe owners might be better off investing in some security, or alternatively whether they’re something that Chinese police ought to keep a closer eye on. Granted, disputes like this happen all over the place in a country as large as China, but perhaps because of the dark, smoky atmosphere or the often-tired patrons who’ve been gaming for hours on end, internet cafes seem to be particularly fertile soil for conflict. I continue to believe China would be well-served if the government offered some better-lit, better-policed alternatives to internet cafes.

(via QQ Games)

We are reviewing our business to optimize our global game development operations through a process of selection and concentration, and this has led us to the difficult decision to close our China office and studio. GREE Beijing has developed several excellent games and the talented people who made up its staff have made a valuable contribution to GREE. We regret that we have had to make this closure and wish all the best to everyone affected.

Japan’s GREE has been a dominant force in mobile games on its home turf, and over the past few years has overseen an aggressive expansion overseas. But late last year the company was forced to lay off employees at its North American office, and now it has apparently shuttered its China branch completely.

We have contacted GREE for comment on this story and will update it if we hear back.

According to an internal announcement at GREE China yesterday (as reported by Sina Tech), the branch will totally cease operations on June 28th, and all of its employees will be laid off. The company has not yet announced a compensation plan for employees, but it should have plenty of time to roll something out over the next month and a half before the shutdown actually takes place.

The reason for GREE China’s demise — and the company’s declining fortunes in general — is generally believed to be its failure to recognize and commit to the global movement towards smartphones quickly enough. 60 percent of GREE’s revenue is still coming from feature phone users, but feature phone users are getting scarcer and the company has not carved out a dominant position as a smartphone gaming platform on either Android or iOS.

Of course, this is not to say the company is about to collapse. GREE is still projecting a net profit of around $300 million this quarter, but then again, if the company’s projections are correct it will be the first time since 2008 that GREE has seen its profits drop. It seems likely that given this shift, the company has decided to concentrate on its strengths on its home turf of Japan and reduce the degree to which it’s extended overseas. That’s probably a smart business move, but it’s a bummer for everyone working in the GREE China office.

Related: GREE’s founding story

(via Sina Tech)

Yesterday, Sina Tech sub-site Startup Stories posted an interesting op-ed from T.H. Capital CEO Hou Xiaotian entitled “Why is Sina’s Stock Undervalued on Wall Street?” In it, Hou argues that given that Alibaba valued Sina Weibo at $32.56/share for its big Weibo investment, when you add in the value of Sina’s (NASDAQ:SINA) other services, the company’s stock ought to be up around $73, yet it continues to languish in the $50-$60 range instead.

Of course, some have argued that Alibaba gave Sina a pretty sweet deal in terms of Weibo’s valuation, but Hou asserts that the Alibaba number is actually quite reasonable, and lays out five reasons why this is the case:

1. “Weibo has a monopoly on the market.” Hou says that 85% percent of all time spent microblogging in China is spent on Sina Weibo, and it has more than 500 million registered users. Tencent Weibo has big numbers too, of course, but Hou says that it’s much less actively used.
2. “Weibo is a real-life platform.” Hou argues that beyond real-name registration, users actually build real “micro-lives” on Weibo complete with their own social circles, entertainment, news, and a lot of voluntary sharing about their real lives. It’s almost like an online journal in some ways.
3. “Weibo creates web 2.0 content.” To explain this, Hou compares Weibo search — where users can find the answers to questions (because the hottest posts on any given topic tend to be what most people are looking for) — to traditional search where users find “a pile of indexed links” that can be hard to sort through”. Weibo, Hou argues, produces a ton of content that sorts itself more or less automatically, and it’s always timely and based on what users want.
4. “Weibo is an entrance point for the mobile web.” Hou says Weibo’s daily traffic exceeds 1 billion pageviews per day, and that 75% of it comes via mobile clients.
5. “Weibo is a kind of self-run media.” Hou points out that Weibo has been exceedingly valuable as a way of spreading information and has arguably increased transparency in Chinese society, even if the information it spreads is sometimes of dubious veracity.

I’m not an investor, or an expert in how companies are valued, so I won’t dispute any of Hou’s specific numbers. But I do think that she’s viewing Weibo with a particularly rosy set of glasses — perhaps it’s not a coincidence this article was published on Sina Tech — and there do seem to be some legitimate reasons to think Alibaba’s Weibo valuation was a bit over the top.

To begin with, some of Hou’s numbers are pretty shocking. She doesn’t cite sources for any of them but I’m guessing most of them come from T.H. Capital’s own research, but even so a few jump out as questionable. For instance: Sina Weibo gets more daily traffic and pageviews than Baidu? That would be pretty surprising. And while yes, Weibo does have 500 million registered users, only a small fraction of them are active (a study published in March found that only 200 million or so users had ever posted, and only 30 million users wrote unique posts in a given week).

Hou’s point about Weibo’s search being more valuable than Baidu’s is interesting but, I think, misleading in some ways. Weibo search is extremely effective at helping users find certain kinds of information. If you want the latest trends, to see what people are saying about a particular actress, or to hear the latest about a political scandal, for example, Weibo search is probably better than Baidu. But at the same time, if you’re looking for biographical information about a historical figure, a link to a popular e-commerce site, or information about the lineup of an NBA team (for example), Baidu is going to be far more effective than Sina. At one point in her article, Hou asserts that Sina’s Weibo search should be valued at double what Baidu’s search is worth per capita because it is more effective, but that is only true for a specific sort of search. Personally, I do a fair amount of searching for my job, and while sometimes Weibo search is the right tool, most of the time my search begins and ends with Baidu.

Finally, I think Hou is understating the threat that Weibo faces from WeChat. Granted, WeChat doesn’t offer the quasi-journal-like features Weibo has, but frankly Weibo isn’t that great for journaling either. Both platforms are best at communicating the here and now, what’s happening within your circles of contacts, and while there are significant differences between the services, WeChat’s growth should still be pretty alarming to Sina — even CEO Charles Chao has said WeChat poses a threat — and it’s no surprise it’s also affecting Sina’s stock price. Users, after all, only have so much time in the day, and the more time they spend on WeChat, the less time they’re spending on Weibo.

There are other reasons to be bearish on Sina — Weibo faces regulatory threat constantly, Sina has had a really tough time monetizing it — but generally speaking, I do think Weibo is a very valuable service. Is it as valuable as the $32.56 per share that Aliababa paid for it? Right now, I’d argue it’s definitely not, but then again, Alibaba didn’t invest just to make a quick buck, and over the long term if it can help Sina make Weibo profitable, the service certainly could be worth that, and a great deal more.

(image via Sina Tech)

A new report in the Beijing Times quotes police as saying that in their investigation of Silu HD following its takedown, they found not only 22,296 instances of IP violation, but also that the site was hosting what the article calls “obscene pornographic films.” We’re not sure whether those are any worse than regular pornographic films, but since any kind of porn is illegal in China, the folks behind the site are likely in a lot more trouble for this than the piracy aspect.

Interestingly, it seems the site was mostly hosting quasi-historical-themed pornography from the 1970s, as the two titles mentioned specifically in the article are The Opening of Misty Beethoven (1976) and Caligula (1979). These films and a few others were deemed to be pornographic “after police appraisal,” and we imagine that police are currently combing through the rest of Silu HD’s catalogue in search of other films to, ahem, appraise.

Double-entendres aside, the news that Silu HD was hosting pornography ensures that “China’s first HD video portal” (as the site billed itself) is dead for good. YYeTs may have survived the crackdown, but apparently Silu HD’s apparent affinity for 1970s pornography has ensured the site will definitely not be coming back online.

(Beijing Times via Sina Tech)

Tencent’s (HKG:0700) chat service QQ is used by over half a billion people and is China’s top app for iPhone and Android. When the QQ mobile apps got a radical update and make-over recently to make them look more like WeChat, Tencent probably thought it was a great idea. But the vast majority of QQ users disagree – to the point of anger, hatred, and vitriol.

The new QQ v4.0 for iPhone currently has an average user rating of one star. Of 41,482 reviews of the updated app in the iTunes App Store, an astonishing 39,298 people (that’s 94.7 percent) have given it the lowest star rating. Prior to the WeChat-inspired update for QQ, the instant messaging (IM) app had been enjoying mostly five-star feedback. This is the scene now:

The anger is mostly about the looks – with users mockingly calling it a “second hand WeChat” – as the QQ v4.0 update for iPhone (or v4.1 for Android) has taken on less of a traditional IM user interface. For example, there’s no longer an indicator light besides contacts’ names on your QQ contacts list, so you can’t see who’s online until you click their name. Also, the chat window now looks more like a new-style messaging app – ie: more like WeChat or Whatsapp – which means that there’s a lot of wasted space in between users’ words (pictured top).

It seems that Tencent has not taken into account that their two very popular apps – WeChat will soon hit 400 million users – are used quite differently. QQ tends to be activated when someone specifically wants to chat, so that necessitates clearly seeing who’s online and being easily able to view a fast-paced conversation in one window. WeChat, in contrast, is for more casual messaging, sort of like a replacement for SMS.

QQ users are certainly making their displeasure known wherever possible. On the official ‘Mobile QQ’ account on Tencent Weibo, worried iPhone users are asking how they can downgrade to the previous version; others are telling Tencent that the update is “garbage”, “disgusting”, and “dogshit”. Over on the third-party Baidu Android app store, commenters are being more polite, asking and pleading for previous IM-like features to be restored.

One very useful feature from WeChat that’s in the new version of QQ is that it now supports group chats for up to 50 people. These can be accessed by sending invites through the app, or by sharing a QR code. I’ve been at a conference where this WeChat group chat feature was used to let audience members ask questions to onstage speakers, which was fun; that could also be put to great use in QQ. That is, if QQ has any users left after this kerfuffle.

(Hat-tip to Sina Tech for spotting this – article in Chinese)

Alibaba CEO, Jonanthan Lu and his management team

Now that we’ve heard Jack Ma’s final speech as Alibaba’s CEO, we can focus on his successor, Jonathan Lu. Compared to Ma, fewer people will have heard of Lu. But Ma’s last big decision at Alibaba as CEO was perhaps to appoint Lu as CEO.

In his first speech as Alibaba CEO last Friday, Jonathan Lu thanked Ma for giving the one-time waiter at a hotel a chance to shine under Alibaba’s wings. Lu’s leadership quality and great execution has seen him in several leadership positions within Alibaba. 13 years in Alibaba made him one of the early team members to have followed Ma’s journey, seeing the e-commerce firm grow from a David to a Goliath.

I have translated most (like 90+ percent) of his speech. If anything, his speech somewhat echoed Ma’s thoughts which centered around Alibaba’s mission, values, responsibilities, and customers.

“If not me, who? If not now, when?”

Jonathan Lu: Hi family and friends. Today marks my 13th anniversary working with Alibaba. I’m very thankful, as Mr. Jack Ma says, “We are lucky.” But for me, I think that I’m extremely lucky. Because from tomorrow onwards, I’m taking over Alibaba’s mission, our values, responsibility. Taking over our vision of having an open and responsible internet spirit.

I worked at Alibaba’s B2B website for more than three years […] and Taobao for about four years and then back to B2B (Alibaba.com), and then on to big data and also managed our mobile operating system, Yun OS. Through this journey, I learned a lot. But I feel more gratitude. It is because of all of you, that’s why I’m able to learn and grow. It is because of our customers who have helped us grow. I’m very thankful to everyone and Jack Ma. Before Alibaba, I was working in a hotel as a waiter.

Jonathan Lu and Jack Ma saying their thanks with a hug

But today, I have this chance to take over Alibaba’s culture, fight for our dream. This is really an honor. Alibaba been through a lot and our mission and values are what we need to uphold. We insist that customers are our number one priority. In the future, we will continue to uphold and pass on our values and mission. […]

Today, because we have so many customers and so much data, we have a chance to let every customer be on the platform and have their own space and growth opportunities. Alibaba and Taobao are built for the customers. I hope our team can achieve our mission and let Alibaba’s customers enjoy the best experience when they are onboard our platforms.

Another thing we need to uphold is innovation. For the last 13 years, from Alibaba B2B, Taobao, Alipay [online payment solution], Juhuasuan [deals site], Aliyun [cloud computing], to AliFinance [micro-financing service], we have been innovating from the very start and will continue to do so in the future. My team and I will push harder for innovation. […]

For the last 13 years, Alibaba has done very well in upholding its belief and executing our plans. […] Everyone has this signature at the end of their emails: “If not me, who? If not now, when?”

This is a responsibility, a task […] A big dream and vision requires good execution to complete it. Because of our great execution, customers trust us better. […] Thanks to our customers, partners, and competitors who allow us to continue fighting. Our customers give us warmth. Taobao went through seven non-profitable years, but it has grown thanks to customers’ trust. In the future, the thing that pushes us forward is our dream and family.

Moving forward, I hope we can continue to gain the support of our customers, friends, partners, and family. And I hope everyone at Alibaba and Taobao can stay happy and lead a fruitful life. Thank you, everyone!

Jack Ma, Chairman at Alibaba

Last Friday in Hangzhou, China, Alibaba celebrated Taobao’s tenth anniversary (pictures below). But it didn’t feel like it was really entirely a celebration for Taobao. I’m sure that while enjoying the songs and dances at this concert-style event, at the back of the mind of everyone at the stadium was that it was Jack Ma’s last day as CEO.

True enough, Jack Ma’s speech reflected that. It felt a little more like a goodbye speech from the founder as he moves on to become chairman. It was a speech that paved the way for Jonathan Lu to take over his position as Alibaba’s CEO.

“Small businesses are where most of the Chinese dreams live”

After a couple of hours of music and extravaganza – including Ma himself singing – he gave his speech to the roaring stadium audience of over 20,000 employees, merchants, and guests. Below is our unofficial translation of Jack’s speech. I do hope it captured a large part of what he communicated:

Jack Ma: In the last ten years, there are many people who have paid a big price to live this dream. For our dream, we have walked ten years. I have been thinking, even if someone had removed 99 percent of Alibaba’s assets, we are still worthy. We have no regrets. We have our team, our partners, and friends. What is the thing that has made Alibaba what it is today? What is the thing that has made me what I am today? I have no reasons to succeed. Alibaba and Taobao have no reasons to succeed either. But today, we have walked so far and for so many years with so many aspirations for the future. I believe, it is trust that has made us walk this far.

When no one believes in the future, we chose to believe… we chose to trust.. that 10 years later, China will be better. We chose to believe that our colleagues will do better than myself. I believe, the younger generation of Chinese will do better than us. I’m very thankful that my colleagues have trusted me. It’s tough to be a CEO but being a CEO’s employee is even tougher. At times when trust was doubted, people actually bought things online, even when they haven’t even seen the items before. Over thousands of kilometers, through an unknown person, the goods fall safely into your hands. Today’s China has trust and belief. Everyday, there are 24 million transactions on Taobao signifying China’s trust.

I’m proud to be everyone’s colleague and working partner. Even after life, we will still be colleagues. Because of you, it allows this generation to see hope. All of you are building a new kind of trust. This trust helps to make the world more open, more transparent, and more responsible. I feel proud of you. Today’s world is ever-changing. 30 years ago, we didn’t expect what would have happened today. We didn’t expect China to be a manufacturing giant. We didn’t expect computers to be part of everyone’s life. We didn’t expect the internet in China could grow so rapidly. We didn’t expect Taobao can rise. We didn’t expect Yahoo could become what it is today. We’re in a rapidly changing world. We didn’t expect we can all sit together today to celebrate and look forward to the future.

Computers are fast, the internet is even faster. When we haven’t really understood what is mobile internet, big data comes along. Times of change are for the younger generation. Today, a lot of young people think that big companies like Google, Baidu, Tencent, and Alibaba took all of your chances to succeed. Ten years ago, when we saw numerous giant companies, we were also once lost and worried. Do we have a chance? But ten years of determination, we have walked to today. If it wasn’t a time of change, the younger generation would not have a chance. We don’t need a rich father to succeed. What we have is determination and a vision. A lot of people hate change, but because we have embraced this change that’s why we have a future. The next 30 years, this world and China, will have even more change. This change is an opportunity for everyone. Grab this chance.

A lot of people complain about yesterday. We have no power to change yesterday. But this very day, 30 years later, is what we can control and decide. Change yourself, take baby steps, and stay determined for ten years. I thank the times of change and everyone’s complaints. Because when everyone is complaining, that is your chance, an opportunity. It’s only in times of change that someone can be clear of what he has and wants, and what he needs to give up.

Building Alibaba for 14 years, I’m honored that I’m a businessman. As we enter the modern age, it’s a pity that business people don’t get the respect they deserve. Business people in this age aren’t just doing business for profits. I think, we are the same as any artist, educator, and politician who’s doing our best to make this society complete. 14 years in business made me understand life, hardship, determination, and responsibility. It also made me understand that when other people succeed it means we have succeeded as well. What we look forward to most is the smile on our employees’ faces.

After today, I will no longer be a CEO. From tomorrow onwards, business will not be my sole focus. 14 years into business, I feel proud. In this world, no one can say that they will not age – make no mistakes, and be undefeatable. To make sure a company doesn’t age and make no mistakes, I chose to believe the younger generation. By believing in them, you also believe in the future. So I will not return to Alibaba as CEO. There’s no use for me to return because all of you will do better.

Building a company to this size, I feel humbled and proud. But what we have contributed to society is only just a start for Alibaba. What we achieved today, has greatly surpassed the efforts we have put in. This society, at this time, for Alibaba to continue to prosper, we have to solve problems in society. There are so many problems in society and these are opportunities for everyone. If there isn’t any problem, then there’s no need for all of you. All people of Alibaba, please continue to serve small businesses. Because small businesses are where most of the Chinese dreams live. 14 years ago, we set a mission that there will be no business too hard to do, helping small enterprises to grow. Today, this mission lies in your hands. People say e-commerce and the internet created an unfair advantage. But my understanding is that the internet created a truly fair platform.

Moving forward, I will be doing things that I’m interested in, such as working on education and the environment. Besides work, let’s work hard together to improve China. Let the water be clear, the sky be blue, and the food be safe. Everyone, please! (Jack Ma kneels down to the audience).

I’m very honored to introduce you to Alibaba’s future leader and team. They have worked with me for many years and understood me better than myself. Jonathan Lu worked for 13 years at Alibaba and has been through multiple positions and hardships. I should say both tears and smiles are equally the same. Taking over Ma Yun’s (Jack Ma’s) position is very difficult. I can walk till today all thanks to everyone’s trust. Because of trust, it has made the journey easy. I believe and I also urge everyone to support and trust Jonathan Lu and the team as you have always supported and trusted me.

Thank you everyone! From tomorrow onwards, I will live my own life of choice. From tomorrow onwards, life will be my work.

AutoNavi is China’s top online mapping company, so the most obvious benefits for Alibaba are mapping-related. If the company is interested in moving into location-based services and commerce — and it obviously is — there’s no better partner in China than Autonavi, as no one has better maps or more location data than the company. And if Alibaba and AutoNavi can integrate their systems effectively, Alibaba will be able to quickly amass a remarkably precise database of things like purchases and consumer behavior based on location.

This data could be used in all kinds of ways. For example, Alibaba could monitor public pollution data and then automatically market air filters and masks to people who are located in the most polluted areas. Its system could analyze trends and notice that people in your neighborhood tend to buy more of one type of product than the general public, and then market that product more heavily to anyone from the neighborhood. It could even analyze AutoNavi’s data to determine which areas lack easy access to which brick-and-mortar businesses and then push those products more heavily online. ‘We see you live six miles from the nearest store that sells maternity clothing; why not buy it online instead?’

But another more easily overlooked aspect of AutoNavi’s appeal may be its userbase. The company has more than 100 million users on its mobile apps alone, and Alibaba certainly recognizes that China’s internet is getting increasingly mobile, so any access the company can get to large groups of mobile users is certainly valuable. And there are certainly ways to integrate location-based marketing like I’ve described above into AutoNavi’s existing apps, should the company choose to do so.

Still, with all these investments it’s starting to feel like Alibaba has some very specific course laid out for itself, the details of which aren’t yet clear to the public. The company has obviously embraced Big Data with both arms (it apparently wants to know what you’re saying, where you’re going, and even what music you’re listening to) but the ultimate endgame remains something of a mystery. Uber-targeted marketing? A groundbreaking new social commerce mobile app? Major changes to its web platforms to make them more social and localized? All of the above? We’ll have to wait and see.

The team has been hard at work this week collecting all the top stories in China, so let’s take a look.

1. Report: More Layoffs at Renren, Signs of a Strategic Shift?

China’s Facebook, Renren, just might be looking at some serious changes to its internet strategy. Charlie speculates that this might be a shift into games and mobile apps.

2. China’s MadeiraCloud Gets $1.5 Million Funding, Opens US Office

Congrats to MadeiraCloud for another round of funding!

3. Alibaba Explores Online Mapping, Takes Stake in Autonavi For $294 Million

There’s rumors of Facebook acquiring Waze back in the Valley but Alibaba has already stepped up to the plate with the acquisition of Autonavi.

4. WeChat Now Has 190 Million Active Users, Close to Passing Whatsapp

Watch out WhatsApp, WeChat is after your spotlight. This chat app battle is happening on so many fronts it’s hard to keep up. There are so many battlefields here in Asia and across the world.

5. Umeng Dominates Chinese Mobile App Analytics, Plots Overseas Expansion

Thus continues the trend of Chinese internet companies increasingly looking global.

6. China’s Top 3 Most Profitable Web Companies

TL;DR: The top three are Baidu, Alibaba, and Tencent. They basically rule over the Chinese internet, but it’s telling to know what business models work in Vietnam.

7. After 1 Year in China, Evernote Reaches 4 Million Chinese Users

Evernote is getting more and more aggressive in Asia and 4 million in a year is quite a lot for the note taking service.

8. Tencent CEO Pony Ma Talks WeChat, Competition, Going Mobile and Global

Click here to get more notes on where Tencent is headed next. It’s fascinating to see the moves this innovative company makes.

9. Not Only on WeChat: Tencent Hints at Integrated Mobile Gaming Platform

And to follow up the last article, let’s look in more detail at where Tencent is really headed.

10. China’s Top 10 Smartphone Apps for Android and iOS

A really nice break down from Charlie on the top apps in China. Of course, QQ dominates both charts.

That’s all for this week, folks. For our full spread of China coverage, you can click here or subscribe to our China RSS.

That number comes from a “knowledgable” but anonymous source and, as usual, it should be taken with a grain of salt. But Renren spokespeople did admit to Sina Tech that some personnel adjustment was happening, characterizing it as being part of “an attempt at an internal startup mechanism [within Renren],” whatever that means. They also suggested that some of those laid off might be re-hired internally for work on more promising projects like Nuomi and Renren Games. (On a related note, Renren denied outright reports that there were also layoffs at Nuomi, saying that the team is actually in the process of expanding and that there have been no layoffs there).

We’ve already seen Renren beginning to move away from traditional social networking and toward games and mobile apps, so it shouldn’t be too surprising that a strategic shift of that magnitude would result in a little internal upheaval and personnel turnover. It seems there have been some layoffs, but I don’t think it’s time for Renren fans to panic just yet.

(Sina Tech via TechWeb)

This is what Alibaba wants: Autonavi’s mobile maps know-how and market reach.

You can wait years for a big deal to hit the Chinese web, but recently the blockbuster moves are coming in thick and fast. The latest sees e-commerce company Alibaba taking an approximate 28 percent stake in Autonavi (NASDAQ:AMAP), makers of online maps and navigation. This comes just two weeks after Alibaba got more social by taking a 18 percent stake in Sina Weibo, the country’s hottest social network right now.

Autonavi is China’s top independent online mapping company, with over 100 million users on its mobile apps, constituting just over 25 percent market share among mobile maps in China. Search giant Baidu is second in this sector, while Google Maps continues to lose market share. This evening’s announcement points out:

The parties plan to share certain data, including AutoNavi’s map data and location-related information of the merchants on Alibaba’s e-commerce platforms, including Taobao Marketplace and Tmall.com. AutoNavi and Alibaba will also cooperate in the areas of map engine, location search, navigation and cloud computing services and will cross-promote their respective products and services, with a goal of developing new location-based business models.

Joseph C. Tsai, executive vice chairman of Alibaba, and Eddie Wu, president of Alibaba’s mobile products division, will join AutoNavi’s board of directors upon the closing of the transaction. The transaction is expected to close in the near future, subject to the satisfaction of customary closing conditions.

Alibaba, which is today celebrating 10 years of Taobao, its eBay-beating C2C shopping site, has been diversifying in the past year. Aside from acquiring the social music service Xiami last year and today’s significant stake in Autonavi, there’s lots of talk that the e-shopping behemoth is planning to do a lot of shopping of its own, with rumors of acquisitions/stakes in Umeng (mobile ads and analytics for app developers) and UCWeb, makers of the hugely popular mobile browser UC Browser. It’s no coincidence that these all relate to mobile.

Everybody loves a good mystery. And it seems the folks at Netease have gotten people talking about one with this teaser page for a new first-person shooter. More about the game will be revealed next Tuesday, but there are some very interesting clues on the teaser page (pictured above).

First is the series of “passwords” used to “hack” into the computer. The three passwords that fail initially are CryEngine, Unreal, and Frostbite. As hardcore gamers know, these are the names of three of the biggest and most modern FPS game engines in the world, and have been used for many of recent globally high-profile FPS titles. But the computer on the teaser site rejects those “passwords” and instead chooses Dynamite. Since that’s not the name of an existing game engine, we can only assume that Netease has developed its own engine for use with this upcoming game.

While it could just be marketing hype, it was definitely bold for Netease to put this apparently engine in the same league as CryEngine, Unreal, and Frostbite. If it really is on that level — and that’s a big if — it could signify an attempt by Netease to move beyond China, or at least to license its new engine to the global game developers who are now using CryEngine or the Unreal engine for their games.

We can also make a few guesses about the game itself from the teaser page. Given that the gun and helicopter on the desk appear to be pretty modern, we can assume the game takes place in or around the present day, and that it probably also involves some vehicle combat. The bloody biohazard symbol is interesting, too — could the game’s plot concern chemical warfare of some kind?

There are also a few guesses we can make about the game based on Netease’s past record of game development. While it seems clear this game is a first-person shooter, Netease’s most successful games have been MMORPGs, and it seems likely that this game may include some MMORPG elements, although it’s hard to say exactly what. More interestingly, though, many of Netease’s biggest games include elements of Chinese history and mythology. Will this shooter also include some China-specific elements to make it more appealing to the hometown crowd?

Whatever it turns out to be, the game is facing what is likely to be stiff competition from the impending release of Call of Duty Online, Activision and Tencent’s interpretation of the global smash-hit shooter franchise as a freemium PC game for the Chinese market. The game is coming out soon, and while I’ve argued that hardcore Chinese gamers may be put off by it, it’s still likely to be very popular, and Netease’s game will need to be pretty impressive to turn heads away from the CoD spectacle.

We’ve been following the progress of Beijing-based MadeiraCloud pretty closely since last year, and today the cloud visualization and management startup has its biggest news ever – a round of series A funding worth $1.5 million from Sequoia Capital.

MadeiraCloud founders Peng Zhao and Daniel O’Prey

The funding will be used to open an office in San Francisco and to enhance its newly rolled out support for Amazon Web Services’ (AWS) Virtual Private Cloud (VPC) service. MadeiraCloud will also grow to 12 staffers.

The simple idea behind the software-as-a-service (SaaS) MadeiraCloud platform is that it allows users to manage their AWS cloud architecture the way you design it – diagrammatically. It’s proving especially useful for startups managing an app backend on AWS as they grow and scale, and MadeiraCloud is currently utilized by thousands of users in 85 countries – from startups to large enterprise – to manage $25 million worth of AWS resources.

MadeiraCloud CEO and co-founder Daniel O’Prey puts the early success down to a “simple, familiar, self-service interface” that allows drag-and-drop re-organization that saves companies “significant time and money” in managing their servers and connections.

It seems that San Francisco will be the new base for this globally-minded startup, with Beijing retained as a development office.

Image via Reuters

On Monday, the US Department of Defense released a report that once again points the finger at China for hacking and other forms of digital data theft that pose a threat to American public and military interests. And although the report doesn’t mention Chinese telecom companies Huawei and ZTE by name, it apparently spooked Indian intelligence authorities enough that Indian intelligence agencies are now undertaking a thorough investigation of the Chinese companies.

According to the Hindustan Times, Indian intelligence has set up a testing facility in Bangalore and plans to run Huawei and ZTE equipment through the ringer.

This isn’t the first time Huawei and ZTE have found themselves in the sights of Indian authorities. Last year, India considered investigations into the telecoms, and earlier this year both were denied ‘domestic telecom’ status in the country over lingering security concerns.

Concerns about Huawei and ZTE stem from their apparent ties with the Chinese government and military. Huawei, for example, was founded by a former military officer and maintains a Chinese Communist Party office within its corporate headquarters.

(Hindustan Times via Sina Tech)

Consisting of an incubator, accelerator program, and a final contest, ChainLabs is now seeking its first ever intake, with applications open until June 1st. It’ll begin one month later, with November 7th slated for the final demo day and competition.

This new incubator is run by Hong Kong-based company Chain Media, which also operates specialist logistics magazines and Chain.net, a “supply chain social network”. Though the program is based in Shanghai, it’s open to startups from around the world.

ChainLabs principal and Chain Media CEO Max Henry says in today’s announcement:

As the first supply chain accelerator in the world, ChainLabs will provide seed funding, a virtual workspace, mentoring program and a demo day that nurtures skills and relationships to enable entrepreneurs to build remarkable supply chain, procurement and logistics solutions.

While it won’t produce any sexy apps or anything that most of us will ever use, it’s an interesting move that broadens the startup landscape in the region.

Interested startups with big ideas for moving stuff around can apply for ChainLabs here.

With 190 million monthly active users on WeChat, that means the fast-growing app is poised to pass Whatsapp, which has 200 million monthly actives in new data revealed in April.

But Whatsapp enjoys far more international success. Tencent recently revealed that WeChat has 40 million users overseas, meaning that its reach beyond China is far smaller than Whatsapp’s – and behind Japan-made Line app as well.

Hou Xiaonan’s number, spotted by Marbridge Daily, was revealed yesterday at the final day of the Global Mobile Internet Conference (GMIC) in Beijing. The day before that, we saw Tencent CEO Ma Huateng explaining some of the company’s strategies and visions for more mobile success.

This is part of our coverage of GMIC 2013 in Beijing, which was on May 7 and 8. For other stories from this event, click here.

One of the hottest startups in China, Umeng (pronounced as “you meng” in English), is run and was founded by Fudan University graduate and ex-Googler in China Jiang Fan.

Umeng is like Google Analytics for mobile applications in China. Founded in 2010, Jiang said that the company came about because there was a need for it. Knowing that mobile will be huge in China over the next couple of years, Jiang believed that mobile developers would require tools to help them understand their users’ data and in-app behavior. He was right. Today, Umeng is serving over 100,000 mobile applications across all major mobile platforms — iOS, Android, and Windows Phone — with more than 50 percent of all Chinese developers using the service.

Umeng’s fast-paced growth was a mixture of timing, luck, a good team, and a solid product. Jiang says that Umeng is the only mobile app analytics company that was first launched in China and for China. Even today, there are very few competitors because making money through analytics is tough. Jiang also says that Umeng started early and grew together with the ever-growing mobile industry in China.

The team at Umeng is made up of folks who used to work at big companies including Google, Microsoft, Baidu, Sohu, and Yahoo. Today, Umeng has over 100 people in the team and has raised more than $10 million from Innovation Works and Matrix Partners.

Speaking about turning points and challenges, Jiang says that there were times when Umeng was tempted to go astray to run other mobile-related businesses which have a more direct way of generating revenue (such as mobile advertising). But he is thankful that Umeng ultimately stuck to its vision to serve the Chinese developer crowd. And being in the mobile space, changes are rapid, especially for mobile games. Umeng, as a startup, has to learn how to keep up with the changing trends. He said (translation ours):

Some developers grew very big very quickly. So it’s always a challenge to keep up with their usage and tracking demands as a startup.

Despite 100 percent of its developers being local Chinese developers, Jiang reveals that 40 percent of their apps are actually targeting the global market. Expanding abroad is part of Umeng’s plan and the team is already strategizing on how to do exactly that.

Jiang told Tech in Asia that Umeng will be releasing its English version by Q3 of this year, and stresses that the service will offer value to overseas developers just as it does to Chinese ones. Since China is an unique market, he says the purpose of an English site is to help overseas developers who are targeting Chinese users track and mine user data better and with more precision. He added (translation ours):

The potential is there. In the future, China could represent half of the entire world’s mobile user population.

In addition to analytics, Umeng also provides developers with an app network service that helps to cross-promote apps. The future of Umeng, as Jiang explains, is that it will continue to provide the services developers need. He believes that if the mobile industry in China continues to grow and mature, Umeng will eventually find a way to build a sustainable business model around its service.

And if you’re wondering about the Alibaba acquisition rumor that is spreading, Jiang confirms that both companies are speaking to each other but nothing has been finalized so far!

The source, who works at an unnamed telecom, says that among other reasons, China Mobile is not currently prepared to launch the network commercially, and is on pace to be ready for launch in October if nothing goes wrong. But the roll-out could come as late as early 2014, depending on how things develop over the summer and into the fall.

And those who’re waiting for FDD-LTE rather than China Mobile’s TD-LTE are likely to be waiting even longer. China’s Ministry of Industry and Information Technology is reportedly unlikely to issue any permits for FDD-LTE networks until months or possibly even a year after China Mobile’s TD-LTE network is launched, as it favors the home-grown TD-LTE technology.

While Southern Metropolis Daily is a pretty reliable paper, this is still just another anonymously-sourced rumor and should be taken with a grain of salt. Rumors about the launch of 4G in China have been flying for more than a year now, and at this point the most prudent response seems to be simply: we’ll believe it when we see it. That said, all signs do seem to point to 4G coming to China at some point before the end of this year if all goes smoothly.

(Southern Metropolis Daily via Sina Tech)

Sina’s report cites a “knowledgable” source in “investment circles” as saying that Sogou is looking for a buyout, and the three aforementioned internet giants have jumped at the chance. According to the source, Qihoo has offered a $140 million deal that includes cash and stock options, Baidu is offering more in cash (he doesn’t cite a specific sum), and Tencent is mostly in the mix because it wants to be sure Sogou doesn’t go to Qihoo.

Furthermore, the report suggests a difference of opinion high in Sogou’s ranks, with CEO Wang Xiaochuan wanting to take the Qihoo 360 deal while board chair Zhang Chaoyang would prefer to sell to Baidu. But as Zhang has reportedly been taking more personal time of late, Wang has been taking the front seat in the proceedings, and Sina’s source says, “it’s a bit more likely that [Qihoo] 360 will win.”

Of course, this is still just a rumor, even if these kinds of rumors do seem to be coming true a bit lately. We’ve contacted Baidu, Qihoo 360, and Tencent for comment, and will update this story if we hear back, but we don’t expect much as most companies have a general policy of not commenting on rumors. All three of them declined to comment for the Sina Tech story (although apparently none of them denied it outright, which is interesting). Sogou CEO Wang Xiaoquan has called the rumor “unreliable” on his Weibo account.

By some counts, Sogou has the third-largest market share in Chinese search, so acquiring it would be a big boost for Qihoo, which has been struggling to close in on Baidu after its initial grab of more than 10% of the market shortly following its launch. But Sogou’s real value may lie in its widely-used Chinese input method software. The company has already begun to integrate search into its input method in a way that I think is potentially very significant. New applications of that concept could be a nice — and very valuable — bonus that comes along with the boost in market share of buying Sogou.

(via Sina Tech, image deleted)

It’s worth noting that compared with Q4 2011, Alibaba also has had the strongest growth both in revenue and profits.

If these numbers are any indication, Alibaba is likely to hold that top spot on the profit charts for some time to come. But of course, all of these companies are making gobs of money, so I don’t imagine any of them are going to be all that upset about who places where on this ladder.

It’s also worth noting that Tencent’s fall in profits could be due to increased investment in WeChat, which is fighting similar apps like Line and KakaoTalk for international users, and which hasn’t been fully monetized yet. Baidu is also moving internationally – we just spotted the company making inroads into Indonesia — and splashed some cash on a big local acquisition, too. And of course, Alibaba is clearly not going to be content to rest on its laurels, as it just invested a boatload in Sina Weibo and rumors are swirling about a number of other acquisitions and a possible IPO on the horizon.

(via Sina Tech)

Brisbane-headquartered game studio Halfbrick is nailing it in China with its Fruit Ninja game. If you think people are sick of slicing all kinds of fruit on their mobile screens, then you’re so wrong.

Speaking with Phil Larsen, chief marketing officer at Halfbrick on the sidelines of the Global Mobile Internet Conference (GMIC) in Beijing today, he told me that Fruit Ninja has been downloaded 500 million times across the world. Out of which, China accounted for 200 million of these downloads with 50 million monthly active users coming from China. Phil told me:

Fruit Ninja is a very simple casual game that has a universal theme. It’s not about shooting, action, or any particular game play. It’s based on fruits and it’s all around the world… So it crosses the language barrier [since] it doesn’t need any text to play. You can understand just from the visuals alone. And that kind of simple arcade gameplay really works well in China.

The Fruit Ninja craze in China is done without having an office in China. Phil says that Halfbrick wanted to keep the company small and lean. Instead of opening an office in China, the Australian company works with iDreamSky who helps Halfbrick distribute their games in China, mainly working with telcos and local Android app marketplaces.

Despite having huge download numbers, the revenue figures from China aren’t proportionally large. In China, the Fruit Ninja Android app generates revenue through in-app purchases and ads. Phil explains that Chinese gamers in general are okay as long as they are able to enjoy 90 percent of the game without spending. If needed, Chinese gamers are willing to farm (without paying) for higher level items. So in the future, Fruit Ninja is looking to draw in paying Chinese users to try the 100 percent full gaming experience for a limited time and hope that they will buy to keep up with that level.

Besides Fruit Ninja, Halfbrick also has other games including Jetpack Joyride, Zombie Dash, and its latest title, Fish Out Of Water.

This is part of our coverage of GMIC 2013 in Beijing, running yesterday and today (May 7 and 8). For other stories from this event, click here.

Earlier we announced the winner of the Seed Stage G-Startup contest at the Global Mobile Internet Conference (GMIC) here in Beijing, and now we are also delighted to know that Israel-based QR code generator, Visualead, has walked away as the winner of the G-Startup Growth Stage competition.

Interestingly, it was also one of the startups which caught my attention during the G-Startup pitches. It converts ugly QR codes into visually appealing ones, and aims to be one of the most effective and useful technologies in leading consumers from offline to online.

How the idea came about

The current Visualead that you see is actually a pivot from the original idea that the startup founders had. It first started out as an image scanning and detection application, where users can scan images and obtain more information about what’s in the picture. However, this poses two problems: First, how would users know that they are able to scan the picture? It would probably require another line which directs users to scan, which could visually ruin the picture. Second, it would require users to download another specific application to scan the product, which could be tedious for users.

They then saw an opportunity in the perfect marriage between QR codes and image scanning, since there was a rise in use of the former. Visualead was the eventual hybrid solution which takes advantage of both technology. Users would be aware (in theory) that they can scan it based on the prior knowledge of QR code scanning.

Click to enlarge.

Engaging consumers

Speaking to Uriel Peled, co-founder and CMO at Visualead, he tells us that QR codes are too ugly and often placed on the side of offline marketing materials. With Visualead, it has been proven, says Uriel, to increase the percentage of scans, which shows that the prettier image is more effective in engaging an audience.

He also reveals that consumers are more inclined to engage with brands that produce visually appealing QR codes, and it makes it more personal for consumers to connect with QR codes that are branded and more creative. In fact, within six months of operation, Visualead is experiencing an exponential growth of businesses adopting its platform, seeing more than 200,000 new business users each month. CEO and co-founder, Nevo Alva, also revealed in his pitch that one particular Austrian firm saw a 200 percent increase in signups using a Visualead generated QR code.

Nevo Alva gives his winning pitch this afternoon in Beijing.

Looking to China and Asia

At present, Visualead is free to use to replace normal and boring QR codes with sparkly new ones. It plans to collect a premium fee as it rolls out new features, such as analytics that enable companies to better understand consumer scanning habits. This would ensure businesses would be able to effectively target its consumers. It also targets advertisers and designers to adopt its platform in the designing of marketing collaterals, acting as Visualead’s ‘resellers’.

Visualead first opened with the aim of attracting business from the US and Europe, but also sees an opportunity in the Chinese market which is experiencing an exponential growth in smartphone usage and QR code scanning. Indeed, we’ve seen that QR codes are an integral part of WeChat, the hugely popular messaging app. It is looking to have some business co-operation with bigger companies, such as Baidu, Alibaba, and Sina. It is also searching for a Chinese partner.

Uriel explained that as much as copying is a concern for many startups when it comes to entering into Chinese waters, he said that its technology has several international patents, with a China patent currently pending.

Apart from China, it hopes to expand into other markets such as Singapore, Japan, and Korea. It is also currently looking to raise series A investment.

This is part of our coverage of GMIC 2013 in Beijing, running yesterday and today (May 7 and 8). For other stories from this event, click here.

While we were doing our usual browsing of the web we stumbled on something very interesting: a new site by China’s Baidu (NASDAQ:BIDU) that’s an Indonesian version of its web links portal Hao123. Just like Baidu’s other Hao123 sites outside of China, the new portal for Indonesia uses Google’s search engine rather than Baidu’s. Baidu declined to comment about this stealthy launch.

Baidu also runs its Hao123 portal – which is a sort of web directory like AOL or Excite – in other Asian and Mid-East countries in their local languages, like Vietnamese, Japanese, Thai, and Arabic. Plus it operates in Portuguese for Brazilian netizens.

Like all such web directory sites, Baidu’s Hao123 monetizes from advertising and paid links. The Indonesian site has links to local web favorites such as Kaskus and Tokobagus, plus lots of other local and global media and social sites. It’s not clear if those are all paid link. Of the five search options on the Baidu Hao123 site, three lead to Google searches, while ‘video’ leads to Youtube, and ‘music’ goes to the notorious piracy site 4Shared.

Earlier this year, another Chinese company made a move into Indonesia when Tencent president Martin Lau was cautious in saying that it’s in talks with local company MNC Media about the possibility of launching a search engine in the country.

While it’s not guaranteed that Indonesia will see the launch of Baidu’s search engine any time soon, Baidu is doing research into Southeast Asian languages at its new Singapore R&D lab, so it’s core search engine could finally expand to somewhere other than China and Japan.

Baidu, which is China’s top search engine, has been looking overseas a lot more in the past year; aside from that lab, it has launched antivirus products for Southeast Asian markets, and zoned in on north Africa and the Mid-East with its mobile browser app.

Whereas the Jawbone Up costs a whopping $130, Codoon’s little clone – which will launch soon, though no date is set – will cost only RMB 299, which is $48. There is some demand for imported Jawbone Up devices in the country, but they sell for RMB 1,100, which is a staggering $177. Here are the two gadgets side by side:

The new gadget will work with Codoon’s existing tracking apps for iPhone and Android to give you analytics about your exercising, movements, and sleep patterns. The Codoon homepage has had a nice, slidey revamp to welcome its new product – and that’s reminiscent of Jawbone’s homepage as well.

The new Codoon Sports Bracelet and its fitness data app.

Codoon was founded in October 2009 and received over $1 million in investment in April 2011.

Aside from sending data to Codoon’s mobile apps, the new Codoon Sports Bracelet will also zap your data to a Baidu Cloud account.

In the past, Codoon’s wearable hardware was optional, as its smartphone app can do a lot of data tracking. But with its new Codoon Sports Bracelet, there’s much more emphasis put on its hardware, which will surely help with the startup’s revenue stream.

Regardless of the derivative design, the price is right on this new fitness-tracking gizmo. RMB 299 is definitely the kind of price-point where a lot of Chinese smartphone owners could think Well, I’ll give it a shot. Perhaps this kind of wearable tech, after a sluggish start in China, will finally pick up pace.

(Hat-tip to QQ Tech for spotting this)

Translated chart via youxistory.com

The rankings are apparently calculated based on the scores of individual students, and I suspect it’s not an extremely precise system, but even so, it’s interesting that some of China’s most elite academic schools are also the best schools at DOTA. I guess when you work hard, you play hard too! It’s also worth noting that Wuhan has two schools in the top six (though having once visited Wuhan, I can’t say I’m surprised students there prefer to stay indoors playing computer games).

(QQ Games via Youxi Story)

LeTV SuperTVs at the launch event, displaying the screen of a smartphone that is connected to them via wifi.

Chinese video and television company LeTV has been talking about its SuperTV (a smart TV) for quite a while. In fact, you may remember that last fall Kaifu Lee’s Innovation Works invested in the LeTV subsidiary that does its television hardware and software. Yesterday, LeTV CEO Jia Yueting announced the final details about the SuperTV at a press event in Beijing.

The SuperTV comes in two models, a 39 inch model called the S40 that will cost 1999 RMB ($317), and a 60 inch model called the X60 that will cost 6999 RMB ($1,111). The TVs both feature 3D 1080p HD displays, and come installed with a LeTV operating system, app store, and streaming video platform that have all been designed specifically for a big-screen ecosystem. They both support wifi, and have some other cool features like the ability to be controlled via mobile phones. They also apparently feature a front-facing camera with some Kinect-like motion sensing capabilities. The televisions are being manufactured by Foxconn.

Taking a page out of Xiaomi’s book, the televisions will only be available directly through LeTV’s online shop when they go on sale sometime near the end of June. Jia says that even the expensive X60 has twice the features of competing products at only half the price, so the company is clearly expecting the TVs to do well. So, presumably, is Kaifu Lee and the rest of Innovation Works.

As with most products, though, it’s hard to forecast what the future might hold for the SuperTV until its out in the world being used every day by people who don’t work for LeTV. Will the apps fly or fizzle? Will the picture quality and color be as good as competing brands? We’ll have to wait until June to find out.

(via Sina Tech)

Yesterday, in an interview with Sina Tech at GMIC, Kingsoft CEO Fu Sheng made an announcement: soon, the company plans to release a mobile version of its popular “Cheetah” web browser. Although he didn’t reveal a precise release date, Fu told reporters that the browser would be available on both iOS and Android in about a month.

Of course, it’s not a huge surprise that a company operating a PC browser would choose to launch a mobile one, but it’s worth pointing out that Kingsoft faces some strong domestic challengers in this space. In fact, as we saw recently in this list of China’s top 10 smartphone apps, UC Mobile Browser and QQ Mobile Browser are among the ten most installed and most used apps on both iOS and Android.

Numerous other Chinese internet companies also offer mobile browsers but have struggled to match the success of these frontrunners, and Kingsoft has come especially late to the party. Fu says that the mobile browser will work to fully support HTML5, and although he didn’t say as much, perhaps Kingsoft hopes that can be one factor that differentiates the Cheetah mobile browser from some of its competition.

But the challenge of launching a new mobile browser clearly hasn’t affected Fu’s good humor. At GMIC yesterday he reportedly joked with condom brand Durex’s Asia director Aditya Sehgal that what Kingsoft and Durex do is actually similar, as Kingsoft works to “make mobile phones last longer.” In a follow-up weibo post, he cheekily added that the similarities don’t end there: Kingsoft also offers a “pleasurable” user experience and noted that its software prevents you from getting viruses.

(image via this awesome cover of 东方企业家)

Last time we got some China numbers from Evernote, makers of the notes syncing service, it had hit 1.1 million users in the country in July 2012, a mere two months after launching its Chinese operations. At today’s Global Mobile Internet Conference (GMIC) in Beijing, Evernote CEO Phil Libin gave some updated figures, revealing that his company now has four million Chinese users.

Earlier today, the Evernote China team in Beijing flipped the switch on the Chinese version of its Evernote Business service (see here). That team has now grown to 17 people.

Aside from the stats and that launch, Phil talked about how China is an integral part of Evernote’s strategy of being a long-term startup that can survive up against the world’s top web giants. Speaking of China’s own web ecosystem, he said that the next decade will see Chinese tech companies going global, and the nation will, as it shifts away from manufacturing and towards a knowledge-based economy, become a creative melting pot. Startups in China will fit into that melting pot, Phil added, by being an innovation furnace.

Evernote still has two rivals larger than it in China: Shanda’s Mknote (five million users last year), and Netease’s Cloud Notes, which reached eight million users in December.

(Source: 36Kr – article in Chinese; Photo by @chadcat)

This is part of our coverage of GMIC 2013 in Beijing, running today and tomorrow (May 7 and 8). For other stories from this event, click here.

Tencent’s Pony Ma (sat on right) takes questions from the host and a panel of industry experts.

This afternoon at the Global Mobile Internet Conference (GMIC) event in Beijing, Tencent’s ‘Pony’ Ma Huateng was on stage speaking about his company’s strategy and future. The first question was about the struggle Tencent’s WeChat has with China’s mobile telcos, which is one of the hottest tech topics in China right now. But Ma seems confident that WeChat isn’t going to charge users.

Ma was questioned how WeChat will be monetized by Tencent (HKG:0700). There are quite a few methods – stickers and games – as the onstage panelists suggest. (Line and KakaoTalk have been doing all these so successfully). Ma agrees that these are indeed the ways to make money for WeChat. Another way to make money, he explains, is via offline to online services and also digital products, such as an artist who could share their art on mobile platforms like WeChat. That sounds a lot like digital publishing which Line and KakaoTalk recently started doing.

The next question asked was if QQ, Tencent’s traditional IM service, will cannibalize WeChat. Pony explained that their functions are different, for example push-to-talk and voice messaging never existed on QQ. QQ’s active users are double that of Wechat. Ma says that companies can’t just have a department that helps desktop products turn into mobile products. Rather, there must be a department that needs to focus entirely on building for mobile from scratch.

Ma says that mobile is a very tricky industry; despite the existence of a lot of giant web companies, many of them may not be winners in the end. Tencent is always not at the start of the wave nor at the end. It always comes in at the right time, the host states.

The onstage host commented that Tencent is winning on every front on the Chinese web, especially mobile. But Ma humbly said that search and e-commerce aren’t successful points for Tencent. Indeed, it’s Soso search engine, and its various e-stores, like Paipai and QQ Buy, have always struggled.

Learning from Facebook

Ma says that overs the years, Tencent learned that it couldn’t do everything and will be working with third-party companies closely in the future. He also confirms that WeChat will have social games and assures game developers that Tencent will not be providing their own games. Ma now sees Tencent as a platform company rather than a content company.

The founder and CEO adds that Facebook is the first successful open platform on the web, and that emerged back in 2007. Tencent only got into this kind of space in 2009. Ma says that doing an open platform is technically challenging and must be done with care. So it took Tencent two years, starting in 2011, before Tencent really pushed itself as an open platform company. If I’m not interpreting this wrongly, Tencent seems to be prepping hard for its mobile gaming platform despite seeing KakaoTalk and Line out in the market already.

Will Tencent go into hardware? Ma says he is interested but doesn’t have a clear plan on hardware. One thing’s for sure, Tencent isn’t going to work on a phone. There’s no clue about Tencent doing a Google Glass-like device either.

Pony Ma is also famous for testing the user experience of his own products. Ma explains that he will try to imagine himself as an average user or a not so savvy user to test applications. He says that besides providing a great user experience in its applications, Tencent’s success factor is to keep innovating.

Competition, innovation

WeChat went global in 2012. It now has nearly 400 million users – but most are in China.

Commenting on Alibaba’s investment in Sina Weibo last week, the Tencent CEO says he doesn’t feel threatened; rather, he feels that it is only natural. Instead of clashing, Ma suggests that the real challenge is to keep innovating and create new technologies to serve people better.

When the host asked the panelists if WeChat can help Tencent get on the global stage, all but one person raised their hands. Ma himself feels 50/50 about this opportunity, noting that there are strong competitors overseas – a reference, I believe, to Whatsapp and Line. But as Ma has always said, mobile has given Chinese companies a good chance to innovate and succeed globally.

Ma actually met the NHN Line CEO this afternoon and revealed that there might be a way to collaborate. Both of them agree that once a chat app is popular in the country, it tends to stick on unless something major crops up. Ma explains that in the future, there could be more collaboration. But for now, Line and WeChat are competitors both in China and in the international markets (also note that Tencent has invested in rival Korean-made app KakaoTalk). And Ma believes that to do well globally, localization is important. For example, some aspects of WeChat in China (where the app is called Weixin), such as the ‘drifting bottle’ with secret messages that go out to random people, have been removed from international versions of the WeChat app.

Ma concludes by saying that he is enjoying the journey now as Tencent’s WeChat expands globally. And, regardless of the result, win or lose, he will be giving his best shot to put Tencent and Chinese tech companies on the global map.

This is part of our coverage of GMIC 2013 in Beijing, running today and tomorrow (May 7 and 8). For other stories from this event, click here.

China’s UCWeb and its UC Browser app for mobiles have more than 400 million users worldwide with 100 million outside of China. Today at the Global Mobile Internet Conference (GMIC) in Beijing, UCWeb announced that it will invest RMB 3 billion (more than $480 million) over the next three years. The project is codenamed/abbreviated ‘GEEK’ and will focus on four things:

• Global expansion: Focusing on Brazil, Vietnam, Russia, and Indonesia. CEO and founder, Yu Yongfu also said that UCWeb will be opening up offices in these four countries very soon.
• Open Ecosystem: UCWeb will continue to strengthen its platform and replicate local success overseas. UCWeb says that its gaming platform has more than 20 games which are generating more than $150,000 each month right now. 200 million clicks are registered every day across all versions of UC Browser.
• Evolved monetization: Searching for new revenue streams while sustaining the growth for gaming content. In 2012, more than $15 million was generated from the games platform.
• Technology Know-how: Integrate with the cloud and scale to support new extensions and services in the future through technology advancement.

UCWeb CEO Yu Yongfu talking at GMIC2013 this afternoon.

To fuel UCWeb’s GEEK plan, CEO Yu said that the company has more than RMB 1 billion ($161 million) in cash and is already profitable. UCWeb’s revenue has doubled in the last three years and is generating revenue from ads (50 percent) and games (50 percent). The profit margin for ads could be as high as 85 percent, he added. If needed, CEO Yu claims that there are a lot of investors who are hungry to invest in UCWeb.

UCWeb, as we have written before, is poised for IPO in 2013. But in the interview with CEO Yu today, he said that he would rather delay going public to avoid unnecessary pressure from investors. Yu also said that UCWeb isn’t interested to get acquired and be part of a larger company. So while Baidu may be actually interested in UCWeb, it seems like Yu isn’t willing to let go.

UCWeb currently has more than 1,500 staff across the world and is looking to add another 1,000 more people in the coming three years.

(Photo of Yu from QQ Tech)

This is part of our coverage of GMIC 2013 in Beijing, running today and tomorrow (May 7 and 8). For other stories from this event, click here.

One of the most popular Chinese-made apps around the world is Camera360, the photo filter app made by a startup team in Sichuan province. Today the crew has revealed that Camera360 has 100 million global users across its three versions for iPhone, Android, and Windows Phone. Of that number, the startup tells us that 30 million of them are active monthly users.

The major milestone comes almost exactly a year after Pinguo, the makers of Camera360, received nearly $10 million in funding. At that time, it had 30 million users across its three mobile apps, Camera360, Photo360, and Movie360.

In the intervening year, Camera360 – which doesn’t have an Instagram-like social element – added its Cloud Albums feature to allow easy photo back-ups. While optional, the team has already seen more than 240 million photos uploaded into Cloud Albums.

Camera360 has also built a platform on its popular photo filters in the past few months, and that SDK is now available for free to other developers. The SDK has been used to put filters into apps made by major web companies like Tencent, Renren, and Kaixin. Camera360 is now in talks with a number of smartphone manufacturers to have its filters preinstalled in some new phones.

Of course, Camera360 is up against a lot of competition in this niche. We recently rounded up 25 Asia-made photo apps, which is a list worth seeing.

First of all, Ma clearly recognizes that some observers have been a little nervous about the e-commerce company’s step in to social media. After all, nobody wants to see Weibo turned into a glorified advertising platform, and Ma knows that. On the topic of how the services will be separated, he said:

If we turned Weibo into an e-commerce platform, we would be condemned by its users and also condemned by history [...] We’re now 18 percent shareholders in Sina Weibo, so if Weibo is doing well that’s good for us. We want Weibo to do well before we discuss what it can give Alibaba. Weibo is Sina’s thing, but if [Sina] needs us to do something, we will support them. That’s the only way this cooperation can continue.

Alibaba didn’t invest in Weibo for no reason. “The investment in Weibo is an important step in Alibaba’s future development,” said Ma. He didn’t name any specific reasons; we can think of a few.

But at the same time, Ma seems to suggest that the investment is also designed to help what he sees as a valuable service that might be in trouble. He says Weibo has increased transparency in Chinese society, and that Alibaba wants to help it be healthier and more successful. It’s no secret that Sina has struggled to monetize Weibo effectively, and although Ma never suggests that Alibaba is the white knight swooping in to rescue a damsel in distress, it sometimes feels a little like that’s what happened.

Everyone — Jack Ma included — agrees that Sina Weibo has really changed China’s society (mostly for the better), and everyone knows it faces a threat in WeChat. Users likely would never have guessed that a partnership with Alibaba might be the thing that really lets Weibo flourish, but that could prove to be the case. In ten years, we may well believe that Jack Ma saved Weibo with the Alibaba investment, allowing the service to continue changing Chinese society.

(via Sina Tech)

Well, the rumors are true. Chinese search company Baidu (NASDAQ:BIDU) announced today that it has acquired PPS.tv’s streaming video service for $370 million. The acquisition bolsters Baidu’s video offerings (it already owns iQiyi) and puts it in a position to challenge market leader Youku-Tudou (NYSE:YOKU) for a bigger share of China’s web video marketplace. By some user counts, this acquisition makes Baidu the proud new owner of China’s biggest video platform. (UPDATE: Unsurprisingly, representatives from Youku-Tudou dispute the claim that Baidu is now China’s largest video platform. Baidu’s official press release states that the acquisition “create[s] China’s largest online video platform” but does not cite specific numbers; however, Tech in Asia believes this claim to be based on data collected by a domestic market research firm.)

PPS.tv will continue to operate as a sub-brand of iQiyi, according to the release, but current iQiyi CEO Gong Yu will also be CEO of the new PPS sub-brand. Current PPS president Xu Weifeng and CEO Zhang Hongyu will remain onboard as co-presidents.

In a TechWeb poll from before the news became official, respondents were split on whether Baidu’s newest acquisition could help it win the video market, but the massive move to mobile is complicating the question further. Chinese net users watch billions of hours of video each month, but increasingly they’re doing it from mobile devices, and on that front Baidu’s iQiyi is already closing in on Youku-Tudou. (iQiyi claims 200 million monthly mobile users to Youku-Tudou’s 150 million daily users).

Even so, Youku-Tudou president Dele Liu says he welcomes the competition. Responding to rumors of the merger two weeks ago, Liu told reporters:

After the success and synergy created by the Youku-Tudou merger, increasing consolidation was inevitable throughout the video industry. We are happy to see this purchase go forward; we expect this acquisition will further rationalize the industry and help reduce piracy in the sector.

Nevertheless, the news poses serious questions for Youku-Tudou, and puts Baidu in a better position than ever to challenge for dominance of the streaming video market, especially on mobile devices.

UPDATE: Updated 11:38 to add “monthly” and “daily” to better clarify the Youku and iQiyi mobile numbers.

We’ve seen crowdfunding been put to use for zany gadgets and enacting positive social change, but we’ve not yet seen it being used for investment purposes. But Crowdbaron wants to change that. It’s a Hong Kong-based startup that wants to make investing in real estate as simple as booking a hotel online. Aimed at folks who want to bolster their personal investment portfolio, the idea is that buying a small stake in one or numerous properties lets you take advantage of surging property prices in several countries.

While you are buying a share in a property, this is not a sort of timeshare for the 21st century and so you won’t be staying in the apartment or villa in which you have a stake. This is purely for the profit. So you can spread the risk, Crowdbaron lets you take as little as a one percent stake.

Crowdbaron is aiming its platform at users across Asia, with an initial focus on customers based in Hong Kong, China, and Indonesia. Founder and CEO Saeed Hassan explains to us that the startup is “targeting a less wealthy target group” than would normally take a 100 percent stake in properties – a phenomenon seen recently with wealthy Chinese snapping up properties (and potential escape routes) in Australia, the UK, the US, and many other nations. Instead, Saeed says the site is good for “middle income families who are saving for the future, and who have been burned by the stock market and are frustrated by low interest rates”. He adds:

For these individuals, there is little chance they can purchase in Hong Kong or elsewhere. This group is very large and are willing to enter shared purchase arrangements – because it opens the door to potentially higher and stable returns they otherwise wouldn’t be able to afford. It’s about lowering the entry barriers and getting more people involved.

Aside from making a profit from rising property prices, Crowdbaron investors can also earn revenues from renting out their properties, which will be unfurnished to save hassle for the crowdfunded landlords. Saeed points out that these properties will remain managed by Crowdbaron through its network of property agents, and is also responsible for finding tenants. In the event of a property being empty, Crowdbaron promises to pay investors their share of rental revenue anyway.

Crowdbaron is split between a team of four in Hong Kong, and a further four in Jakarta, Indonesia. More sales staffers are being added this month, and a Madrid office is being prepared. While its investors are mostly in this region, it’s open to global investors aside from, for tax reasons, the UK and the US. Crowdbaron’s properties are currently spread across London and Jakarta, with more in Madrid and perhaps some US cities being added soon.

Real estate crowdfunding could turn out to be one of 2013’s hottest startup – and investment – trends. I notice that US-based RealtyMogul also looks promising, and recently won a bunch of awards and plaudits.

We know that Tencent is developing a social gaming platform for WeChat, its popular messaging app, but so far we’ve not heard about its mobile gaming ambitions. Now, vice-president of Tencent’s Game Division Ma Xiaoyi has explained how WeChat’s gaming features will be influenced by more than a decade of Tencent’s experience in both casual and hardcore gaming, and suggests that the platform will be integrated with QQ, the company’s ubiquitous instant messenger service that already has game and virtual currency elements and also other core mobile products including its Android store, MyApp.

Talking today at the Global Mobile Game Confederation (GMGC) event in Beijing, Ma added that WeChat will be aiming its gaming platform initially at Chinese mobile gamers who he predicted to be at 300 million by the end of this year. Basically, that’s everyone with a half-way decent smartphone. That makes the Chinese mobile gaming market, Ma reckons, worth around RMB 60 billion (about US$9.68 billion) in a year.

Ma shared more about Tencent’s unified platform (translation ours):

In the future, Tencent will release a unified mobile gaming platform. This platform will comprise of Tencent’s main mobile applications. Through this unified platform, we can create an excellent platform for our developers to bring the best games to our users.

Echoing CEO and founder Pony Ma’s view, Ma believes that mobile has provided a great platform for Chinese companies to rise. He says in his speech today that China was 30 years late on video gaming compared to Japan and US, 15 years late on PC gaming compared to US and Europe, and five years late on web gaming compared to Korea. But for mobile gaming he believes that China is finally on the same starting line as other nations. With Tencent’s loyal gamers, reach, proven business model, and resources, Ma is hopeful to work with China’s most talented mobile game developers to bring the best games to users on both WeChat and mobile QQ.

WeChat’s social gaming elements will rival similar platforms from Line, KakaoTalk, Apple, GREE, and DeNA. Tencent is already China’s top gaming and internet company, posting company-wide revenues of $7 billion for full-year 2012.

(Source: Techweb – article in Chinese)

Despite a lack of regulatory approval yet, the world’s biggest mobile telco by user-base, China Mobile (NYSE:CHL; HKG:0941) is said to be ready to make a massive final push to get the infrastructure in place to launch China’s first national 4G network later this year. According to informed sources cited by QQ Tech, China Mobile will invest RMB 41.7 billion (US$6.7 billion) to build 200,000 base stations that will cover 344 Chinese cities this year.

Regulatory approval is said to be announced on May 17th, with China Mobile hoping to switch on its nationwide 4G network this August.

China Mobile has been conducting extensive city-area 4G trials for over a year, most recently in the cities of Hangzhou and Wenzhou on the outskirts of Shanghai.

Whereas China Mobile will use the TD-LTE system for 4G (also known as TDD-LTE), rivals China Unicom and China Telecom will have FDD-LTE networks. But that means China Mobile’s network doesn’t work with any of Apple’s mobile devices, initially leaving the new service – as with the company’s homegrown TD-SCDMA 3G variant – devoid of support for iPhones or iPads (except basic calling, texting, and 2G of course).

China Mobile is rumored to have already selected eight companies to serve as initial network equipment partners, including Huawei, ZTE, Ericsson, and Nokia Siemens (Update: Corrected that they’re not providing handsets).

With relatively small numbers coming from 4G networks in nations like Japan and Singapore, one research group estimates there’ll only be about 72 million people on LTE networks in Asia by the end of this year. But China, pushing ahead faster than the previously anticipated 2014 launch, could bring a big bump to that number.

Across China’s three telcos, there are over 230 million subscribers on 3G (Update: Corrected this figure).

(Source: QQ Tech – article in Chinese)

China’s Top 10 iOS Apps

1. QQ
2. WeChat
3. Sina Weibo
4. Taobao
5. UC Mobile Browser
6. Alipay
7. QQ Spaces
8. QQ Mobile Browser
9. QQ Mobile Music
10. Kingsoft Battery Doctor

China’s Top 10 Android Apps

1. QQ
2. UC Mobile Browser
3. WeChat
4. 360 Mobile Guardian
5. Sina Weibo
6. Taobao
7. Alipay
8. QQ Mobile Browser
9. 360 Mobile Helper
10. QQ Spaces

The biggest difference between the two lists is the rather conspicuous absence of Qihoo products from the iOS list. In fact, Qihoo has four products on the Android top 20 list, but not a single Qihoo product made the top 40 on iResearch’s iOS list. Apple has a history of not being particularly fond of Qihoo’s apps, and it banned them from its App Store back in early 2012. That time, they were quickly reinstated, but they were banned again in late January of this year and are apparently under special investigation and still haven’t been re-approved months later.

It’s also worth pointing out that not a single foreign-developed app is featured on either list.

Of course, a more interesting way to measure app popularity is to monitor apps’ time usage; luckily, iResearch has a list for that too (combining both Android and iOS):

Looking at all these lists, if you had to pick a winner the pretty obvious one is Tencent, given that its products (QQ IM, QQ Browser, WeChat, etc) hold the top spot — and a bunch of other spots to boot — on every list. But since most of the apps listed offer free services, we might well call Alibaba another winner, given that its Taobao and Alipay apps exist almost exclusively to help users spend money and yet still made the top ten.

(All data via iResearch)

Late last week, Qihoo 360 CEO Zhou Hongyi spoke to the press about a number of things. Among them was his ultimate aspirations for the company in the long term:

[Qihoo] 360′s free security software has already become the biggest in China, and made-in-China products are sold in every corner of the world. China’s unique free web security business model must also go out into the world [...] Just like made-in-China, we must go out and promote China’s uniquely-innovated free antivirus business model to the world, and make [Qihoo 360] the biggest web security company in the world.

It’s a lofty goal, but is it an attainable one? That depends in part on the proposed timeline, but anytime in the near future I think Qihoo is going to face huge obstacles in any attempt to expand beyond China and perhaps the overseas Chinese diaspora. Among them:

Consumer perceptions: Qihoo doesn’t have the best reputation even within China, and many Chinese technology companies have found expanding beyond China’s borders to be incredibly difficult because of the general distrust many people have (whether that’s fair or not) towards Chinese software. Companies like Huawei and ZTE have been learning this the hard way over the past few years, and Qihoo’s product is, if anything, more likely to cause even more consternation given that security software tends to have access to large swaths of the user’s computer and communicates frequently with the company’s servers.

Whether or not Qihoo is actually using this access to do anything malicious will not matter. If there are any doubts, most people simply aren’t going to install the software. And with Chinese companies, there are always doubts. Perhaps in the long run, that could change. But I don’t see it likely to change much in the immediate future, and if the frequent stories about hacking and spyware coming from China in the Western press are any indication, it could get even worse.

Entrenched competition: Like most of China’s first-generation internet startups, Qihoo has grown and developed in parallel with China’s internet industry. But to become the biggest web security company in the world, it would have to enter — and ultimately dominate — fully developed industries with deeply entrenched competition. There are already plenty of free security suites out there, and Qihoo would face tough battles in many markets to even gain a foothold, let alone become the dominant player.

And in fact, Qihoo even lags behind its biggest domestic competitor in this regard. Baidu launched a free PC security suite aimed at Southeast Asia (starting with Thailand) earlier this year. While Qihoo has been focused on trying to take some of Baidu’s search market share in China, Baidu has been quietly laying the groundwork to beat Qihoo at its own game overseas. There are huge potential markets that are still developing in Southeast Asia where Qihoo might gain itself a foothold from which it could more easily target other international markets. But as far as I’m aware, it has thus far focused completely on China. And while it dominates the security market there, its competitors are becoming more and more entrenched overseas.

PR and legal problems: Qihoo CEO Zhong Hongyi is, to put it mildly, an opinionated guy. Working for him is apparently a nightmare. In the press, he’s been more than willing to take on competitors and stoke “wars” like the famous ‘3Q War‘. I feel quite certain that Qihoo would argue that and its other battles are its competitors’ fault, but China’s courts seem to disagree. Qihoo has lost two separate court cases in the past couple weeks. Now imagine a Qihoo that’s fighting in these “wars” on five different continents, and constantly engaged in dozens of legal battles in various court systems around the world. It would be a nightmare.

Moreover, Zhou’s blustery style of PR isn’t likely to win the company many supporters overseas. Last week Zhou spoke about Steve Jobs as a role model, but Jobs was the exception, not the rule, and even Jobs tended to keep his famously sharp tongue out of the public eye as much as possible. Zhou’s personal vendettas, sharp rhetoric, and microblog battles are going to turn people off in international markets where consumers are not used to seeing CEOs slinging mud in public so frequently.

And, without getting too personal, in my own experience Qihoo handles people questioning it less well than any company in China I have ever dealt with. But the sort of scrutiny an occasional Tech in Asia article puts on the company is nothing compared to the suspicion, doubt, and speculation that will be targeted at it from all corners of the globe if it attempts to expand internationally. Recently, the company has apparently hired a PR firm that has been helping arrange interviews in the Western press, but from what I’ve seen of how Qihoo’s executives respond to criticism, even a skilled PR firm isn’t going to be capable of holding them back (or undoing the damage) when the company is facing Huawei-like levels of scrutiny internationally.

Zhou talks about overseas expansion and domination in the context of it being his dream, a driving force that keeps him and the team motivated to push the company forward. In that sense, it’s certainly quite valuable, but I think this is the sort of dream that’s destined to stay in Zhou’s head, at least for the foreseeable future.

(Incidentally, Zhou also talked a bit last week about the things he doesn’t plan to do, which include e-commerce and mobile phones, although Qihoo does plan to keep making mobiles with hardware partners. Previously, Zhou has also promised Qihoo won’t get into instant messaging.)

All of China was on holiday for half the week, yet it still managed to be a particularly eventful few days in terms of tech news.

1. Alibaba Gets More Social, Takes Stake in Sina Weibo for $586 Million

The week started with a bang as China’s top e-commerce company took a sizable stake in the nation’s hottest social network.

2. Why Did Alibaba Invest $586 Million in Sina Weibo?

Now that the long-rumored deal was a reality, we also pondered some of the social commerce strategies behind the Alibaba-Weibo tie-up.

3. Amazon Appstore Opens in China, Leaps Final Hurdle Before Kindle Fire Launch

The week ended with some big news as well, with Amazon launching its Android-oriented Appstore in China yesterday. In theory, everything’s now in place for all of Amazon’s hardware to hit the Chinese market.

4. ‘China’s Silicon Valley’ Has More Startups Now Than Ever Before

Beijing’s tech district is still growing fast – both in terms of the number of startups and the scope of angel funding available in the capital.

5. China’s Top Video Sites Reveal Hundreds of Millions of Mobile Users, Start Race to Monetize Them

The top two video sites in the country revealed some very interesting mobile viewership stats this week. Inevitably, the numbers are huge – and so is the urgency to monetize these mobile users.

6. Sina Weibo Has Already Added Taobao Ads in Wake of Alibaba Investment

Getting back to the subject of the Sina Weibo and Alibaba deal, the social network already has some e-commerce adverts. Perhaps this is the start of targeted ads on Weibo.

7. SnapWeibo: This Weibo Post Will Self-Destruct in 10 Seconds

One last Weibo story this week. This one’s on a much lighter and more ephemeral note.

8. Get Lost, GPS: China Invests $810 Million to Create Products for Homegrown Navigation System

China’s self-developed navigation system has been in development since 2000, but this week’s major investment will lead to Beidou-equipped devices finally getting into the hands of consumers.

That’s all for this week, folks! For our full spread of China coverage, you might like to subscribe to our China RSS feed.

In a surprise move, Amazon (NASDAQ:AMZN) has opened its Android-oriented Appstore in China today. That’s despite the fact that China wasn’t listed on Amazon’s Appstore expansion roadmap last month, in which the company took its service into 200 new countries, including over a dozen major Asian markets.

The Amazon Appstore launch in China means that the American e-tailer has leapt the final hurdle in its long pursuit of selling its own hardware in China. Though the Amazon Appstore can be used with any Android device (and is now available in Chinese here), it features as the main store on Amazon’s own Kindle Fire tablets. It’s now likely that these tablets will launch in China soon, perhaps accompanied by the Kindle e-reader.

Amazon is promising Chinese users that there’ll be a host of locally made and overseas gaming titles on the store, including ones from Tencent (HKG:0700) and Sina (NASDAQ:SINA).

This comes just a few weeks after Amazon rolled out its Cloud Drive storage service in China, and over four months after its e-bookstore launched in the nation. In theory, everything’s in place for all of Amazon’s hardware to hit the Chinese market.

While Amazon’s Appstore isn’t the first third-party Android app store to accept payments in China, it should boost revenues for app developers by placing a stronger emphasis on paying for digital content. The Google Play store only supports free apps in China.

(Hat-tip to 36Kr for spotting this)

If you’re a fan of Sina Weibo but don’t like the idea of your posts swirling around the web for all of eternity, you might like to try out a tiny little tool called SnapWeibo. Inspired by the time-limited messages on Snapchat, SnapWeibo lets you vanish your Weibo post after a set time.

It’s really simple to use: just sign into SnapWeibo with your Weibo account details, and then any post you make (in the usual way, via any Weibo supporting app) that contains a certain time-related hashtag – #10m# would indicate 10 minutes, for example – will self-destruct after that time period.

Its flexible hashtags allow you to set times by minutes, hours, or even days. If anyone retweets your Weibo before it gets deleted, your missive will later appear blank – in the normal way that it does on Sina Weibo anyway.

You can set self-destruct hashtags in either English or Chinese: like, #2m# #5h# #1d# or #2分钟# #5小时# #1天#.

Yes, it’s a bit silly, but someone might find it useful.

Of course, there is a simpler way to make your Sina Weibo posts disappear quickly – say something controversial.

(Source: 36Kr – article in Chinese)

We know that Tencent (HKG:0700) is working on a social gaming platform for WeChat, its popular social messaging app, but what else is in the pipeline? According to industry analyst Guan Peng, the next major version of WeChat app, which will be v5.0 for iPhone and Android, will come with support for three major new features.

Anticipating that WeChat v5.0 will appear later this month, he reckons we’ll see:

• Paid publishing or subscriptions for accounts on the WeChat public platform – ie: those run by celebrities, media outlets, and brands.

• Mobile payments with users able to scan QR codes to make payments within WeChat.

• Social gaming integration will arrive as promised.

In addition to all that, Guan Peng expects the WeChat brand/celebrity accounts to be given more emphasis and prominence.

Of course, none of that is officially coming in WeChat v5.0. We know there is a social gaming platform coming for sure – similar to those from rival apps Line and Kakaotalk – but it might not be ready to go live this month. E-payments are far from a certainty as well; indeed, when we listened in on Tencent’s most recent earnings call in March – revealing $7 billion in revenue in 2012 – Tencent president Marin Lau had this to say of mobile payments:

We take a long-term view – there are so many hurdles and a lack of standardization [for payments]. So it’s an experiment that we take a lot of interest in, but it takes a long time to see what needs to be done to build a business model on it.

As for paid publishing or subscriptions for content, that’s also an area covered by Line and KakaoTalk. Just a few weeks ago, KakaoTalk rolled out its KakaoPage platform for selling digital content, while Line recently started selling e-books. Neither of those will impact WeChat in China, we suspect, where most of its users actually are, but it’s interesting to see these similar patterns.

It’s conceivable that WeChat will pursue many other channels in the future as well, such as a rumored mobile wallet capability.

My own feature request for WeChat is a badly needed makeover – especially for its slow and clunky Android app with its dated, pre-Android 4.0 stylings.

(Source: Techweb – article in Chinese)

The funding situation has also gotten much better for Chinese startups, though it’s still no cakewalk. From 2010 to 2011, for example, the number of startups in Zhongguancun grew by 17 percent, but the scope of total angel funding went up 248 percent, meaning there is a lot more angel money flowing into the startup scene than there used to be. In fact, the report suggests that since the dot-com boom, the general pattern has shifted from startups chasing investors to investors chasing startups. “In the past, there wasn’t enough capital; now the problem is that there aren’t enough great startups [for all the capital available],” a representative of the Zhongguancun regulatory commission told the Beijing Daily.

But interestingly, the report also indicates an ideological shift of sorts, asserting that around 60 percent of today’s founders are chasing self-realization rather than investment capital. That’s not to say that Chinese founders are turning away money, of course, but when asked why they’re pursuing a startup instead of working their way up through a regular career, apparently more founders talked about realizing their own dreams and creating something that reflects themselves than talked about wanting to be rich.

And, in news that shouldn’t come as any surprise, Zhongguancun’s tech entrepreneurs are also remarkably youthful, with 47 percent of founders under the age of 34.

(Beijing Daily via TechWeb, image via China Daily)

Of course, handling a billion RMB in transactions doesn’t mean the company sees nearly that much in profits or even revenue. But it does indicate that as the daily deals market continues to consolidate, Meituan is gaining ground rather than losing it. That’s important, given that founder Wang Xing has set his sights on breaking the hundred billion mark in yearly transactions by the year 2015.

(via Sina Tech)

Specifically, a source told the paper that Li was taken from his home by police on the evening of April 27. While it’s not known what Li is being questioned about, it’s likely related to the apparent corruption case police have been pursuing since former China Mobile chairman Zhang Chunjiang was indicted back in 2010.

While Li has served as Guangzhou Mobile’s CEO since 2009, it is also possible that he’s being investigated for wrongdoing that predates his appointment to that position (he was the company’s marketing director from 2003 to 2009).

Of course no charges have been made public yet, and while China Business News is generally a reliable publication, one should always take anonymously-sourced stories with a few grains of salt. If China Mobile executives are guilty of corruption, it will be announced officially sooner or later. But the news of such high-profile detentions certainly doesn’t help the company, and I suspectit’s making other China Mobile executives who might have skeletons in their closets very nervous.

(China Business News via Sina Tech)

We know that Chinese netizens watch billions of hours worth of online videos each month, but how many of them are doing so from a mobile device? Now we have the answer. China’s top two mobile sites (in terms of time spent viewing) have recently revealed their mobile user-base. The leading company, Youku Tudou (NYSE:YOKU) says it has 150 million million daily mobile users, while Baidu’s (NASDAQ:BIDU) iQiyi has 200 million monthly mobile viewers.

Youku Tudou, whose data covers both of its standalone sites after the corporate merger last year, says it sees 50 percent quarter-to-quarter growth in mobile users. iQiyi, meanwhile, explains that mobile traffic now accounts for 37 percent of its total.

With such fast-growing mobile engagement, both companies are rushing to implement mobile-based ads so as to monetize all those views. To that end, iQiyi has a new cross-platform ad service that was launched last week, covering its website and apps for Windows, iOS, and Android. Youku Tudou is also offering mobile ads starting from this month.

Though the figures don’t give a perfectly analogous picture – daily views vs monthly, etc. – it stresses that these companies need to translate their desktop advertising prowess to smaller screens without ruining the viewing experience – especially for the big draw, which is their licensed (but mostly free) TV series and movies.

Baidu is rumored to be acquiring another video site, PPS, for a substantial sum so as to bolster its Hulu-like iQiyi site even further.

IDC says that smartphones represent 73.2 percent of all mobiles sold in China right now, but feature phones are still more numerous in the country as a whole. So mobile viewership of video-streaming sites has a lot more growth to come.

(Source: Technode (1) and (2))

The report notes that the best newcomer, in the eyes of Chinese netizens, is Tottenham Hotspurs’ Gareth Bale. Interestingly, Spain’s La Liga players are a lot more popular than those in the English Premier League (BPL). La Liga’s top six most popular players on Weibo have eight times – yes, x8 – the number of followers compared to BPL’s top eight players.

One interesting thing to note is that Japan’s Hidetoshi Nakata – who retired a few years back – is the fourth most popular European player on China’s leading social networks. Although he’s Japanese, he’s played in a few European clubs like AS Roma and Parma in the past.

The last time the Mailman Group, which helps celebrities do social marketing in China, assessed football mania on Weibo, it noted that European football clubs have 15.6 million supporters online in China.

Here’s the infographic for you football fans:

For more fun graphics like this one, check out previous entries in our infographic series.

Always concerned about being reliant on foreign technology, China has been developing a homegrown satellite navigation system for the past decade that it hopes will replace GPS in the hands of consumers. That’s one step closer to reality today with a massive investment worth RMB 5 billion (US$810 million) to build an industrial park to make products that support Beidou.

Authorities are hoping that the Beidou-focused industrial zone will become a sort of mini Silicon Valley, home to 30 to 50 companies once it’s completed in the city of Tianjin, just outside Beijing, by 2015. It’s hoped that all these in the park will be worth RMB 10 billion ($1.61 billion) in revenue by 2017.

Today’s China Daily says (via TechCrunch) that the Beidou Strategic Emerging Industrial Park will cover an area of 270,000 square meters. 20 companies will be opening there this June. It’s not clear if any major Chinese web companies are being encouraged – or coerced – into opening up facilities in this new area.

Beidou is currently made up of a network of 10 satellites, but will eventually comprise 35 of them in orbit. Beidou is available for use, much like GPS, to Chinese and Asia-region users already, and will open up to the world by 2020.

Like GPS, Beidou has two modes: civilian and military. But it’s not known how accurate it will be for military purposes. The total cost of implementing Beidou is $25 billion.

It’s anticipated that Beidou will account for 70 to 80 percent of the Chinese market for navigation systems by 2020. It’s plausible that GPS could be strongly discouraged in years to come, with makers of things like smartphones possibly forced to support Beidou for location-based services. Currently, nearly all such phones and gadgets rely on GPS.

(Source: China Daily)

It’s worth pointing out that for some reason TechWeb didn’t offer a straight-up “no” option, but even so, it seems pretty clear readers are split on this. Frankly, I agree with them — it’s very hard to say. On the one hand, Youku-Tudou has been holding the number one spot for a while and even with PPS’s market share in hand, Baidu’s services wouldn’t surpass it. On the other hand, though, Baidu has a lot more money, and a much more diverse platform it can use to integrate video in a number of ways that might tempt viewers away from Youku-Tudou, assuming that it can match that site for quality of content.

This is one where I think we’re all just going to have to wait and see.

(via TechWeb)

The move is the latest in a competitive battle between China’s major telecom companies to offer the lowest international roaming rates, and it has been excellent for consumers. For example, China Telecom calls from the US, South Korea, Singapore, or Taiwan to mainland Chinese numbers now cost just 0.99 RMB/minute ($0.15/minute). Of course, that’s still quite a bit more expensive than domestic calling rates, it is quite a bit cheaper than most international competitors. A similar international roaming call made with America’s Verizon Wireless, for example, costs $1.99/minute. In other words, China Telecom is more than ten times cheaper.

And the battle may not yet be over. China Mobile dropped its international roaming rates in February in a move to gain a competitive advantage, and Telecom’s latest price drop could trigger a response from either it or China Unicom. Here’s hoping it does; this kind of price war may be hell for the telecoms but it’s awesome for consumers!

(Beijing News via Sina Tech)

Basically, Hashiji is a curated directory of products (mostly clothing) that are actually sold on other e-commerce platforms like Taobao. But in addition to the curation aspect, it offers users a much more pleasant shopping experience. No advertisements are shoved in your face, the site is attractive, quick, and intuitive, and it makes good use of comments to give you feedback about a product you might be interested in. When you mouse over a new product, for example, a comment snippet will slide gracefully up from the bottom, quickly giving you an idea of what people are saying about the product in question (pictured below).

On the bottom bar of the site, the founders have written a brief explanation of why they created Hashiji in 2012:

We wanted to make a simple thing, that allowed you to see the item and the comments clearly before you make a purchase, and then if you like it you can go buy it [on another site].

That’s a pretty good summary of what the site offers, and it does it very well. Perhaps the next time I’m looking for something on Taobao, I’ll start with Hashiji. Sure, I’m going to end up on Taobao one way or another eventually. But Hashiji looks, and frankly feels, better. That may be a simple thing, but it’s enough to make you wonder why Taobao and other e-commerce platforms don’t look and feel this nice.

Tuesday marked the beginning of the blockbuster Call of Duty franchise’s first real entry into China: Call of Duty Online. Western publisher Activision has paired with China’s Tencent to launch the game in China, and while not everything is online yet — microtransactions aren’t yet available and it’s called “closed beta” for a reason — we should soon begin to see how China’s gaming marketplace will react to the game.

On the one hand, there’s every reason to expect success. Call of Duty is a popular franchise everywhere — China is not an exception — and having an official version and official (hopefully lag-free) servers on the mainland should help to increase the franchise’s popularity.

Even so, though, I have to wonder if the game is offering enough. While it’s being billed as “a totally new game” on the official site, there isn’t much to it that’s new at all. For example, the “new maps” in the latest alpha build of the game are almost all from previously-released Call of Duty games, including a couple from the original Modern Warfare game that is now more than half a decade old.

And while previous Call of Duty games were never marketed to Chinese players, many Chinese gamers have played them. Indeed, Call of Duty titles are among the most widely pirated in China (if street-side pirated game salesmen are any indication). For many Chinese gamers, these “new maps” are six years old because they played the original Modern Warfare at the same time everyone else did. So what’s new and exciting about Call of Duty Online for them? As far as I can tell: nothing, except for the fact that they now have the opportunity to pay for things in the game. Oh joy.

To be clear, I still expect Call of Duty Online to do well, if for no other reason than that the promise of being able to play lag-free games on Tencent’s servers is going to entice a lot of FPS gamers into trying the game out (again). But I suspect a subset of Chinese gamers will still be a bit miffed about having what is very clearly old content repackaged and shoved in their faces while Activision and Tencent shout about how it’s “all new.” Chinese FPS fans have played Call of Duty games and they are not idiots; the game may be fun but there isn’t much about it that’s actually new.

With that said, we’re still planning to take the new game for a spin and kick the tires a bit once it comes out of closed beta. It will be interesting to see just how deeply Tencent and Activision have embedded microtransactions into this game, and whether they ultimately enhance it or cripple it. My hopes are for the former, but neither Activision nor Tencent have a great record when it comes that sort of thing, so we’ll have to wait and see. In the meantime, though, don’t believe the hype about Call of Duty Online being “all new.” It’s not.

At present, the ads don’t seem to be very targeted. For example, the ads pictured above, on my own personal weibo feed, were exclusively for women’s clothing items (which, as a man, I don’t have much use for). So it certainly seems as though, at least for the moment, Alibaba probably hasn’t started thoroughly mining Weibo’s mountain of data yet. But we’re confident that it will, and Weibo users should get ready to start seeing more carefully targeted ads as time goes by.

In the meantime, it will be interesting to see if these new ad placements have any effect on Taobao’s sales numbers.

Now that we know it finally has happened, the next immediate question is why. It’s not hard to figure out why Sina went for this deal; the company has been having trouble monetizing Weibo and having an extra $586 million in the bank certainly (to put it lightly) helps. But what’s Alibaba up to here?

As my colleague Steven pointed out in his article yesterday, it’s clear that Alibaba has been interested in becoming more social for some time, as evidenced in (for example) its apparent investment in chat app Momo and its acquisition of music service Xiami. OK, so Alibaba invested in Weibo because it wants to get more social. Why?

Getting Customers Where They Spend The Most Time

The most obvious answer is that that’s where all the customers are. Weibo has over 300 million registered users, and while only around 50 million of them are daily active users, my guess is that Alibaba is less concerned with how many users there are — everyone in China who’s on the internet already knows about Taobao anyway — and more about how users are spending their time, and how much time is being spent on Weibo.

Alibaba’s e-commerce sites, after all, aren’t really fun places to “hang out.” But people hang out on Weibo all the time. It seems likely Alibaba is looking not so much to increase its userbase as it is to increase the amount of time users spend with products from Alibaba platforms in front of their faces. After all, many people go on Taobao only when they need something, but 50 million people go on Weibo every day to discuss the news, follow their friends, etc. Putting products there should help give Alibaba better access to the impulse buy than it currently has, simply because people do not generally load an Alibaba site unless they’re already planning to buy something. Alibaba, I suspect, is hoping that Weibo will help it snag users who had no plans to buy anything but fell in love with a product they ran across while browsing Weibo (or chatting or listening to music on the other platforms the company has invested in thus far).

And of course, it has already been demonstrated that people will buy things from Weibo. The Xiaomi Weibo sale, with over a million phones sold via Weibo in just five minutes, must have impressed on Alibaba’s leadership that Weibo users will fork over their cash via that platform when given a product they’re actually interested in. And if there’s one thing Alibaba has a lot of, it’s products.

Access to a Goldmine of Data

Of course, the other side of the coin is that Weibo’s massive databases can also probably provide Alibaba with tons of useful information about consumer behaviors, desires, and trends that it can use to optimize marketing and maximize sales. We know the folks at Alibaba like data, and Weibo has literally billions of public posts that can serve as useful data points on everything from sentiments about a particular brand or product to general insight into the thoughts and desires of particular demographics. And with full integration into Weibo, Alibaba platforms’ marketing could be tweaked to respond automatically and in real time to new trends as they emerged.

Think, for example, about Beijing’s “Airpocalypse” earlier this year. Now imagine that for Beijing-based users, next to every Weibo post about the pollution there’s an ad for an air filter or a mask on Taobao. That, I think, is why Alibaba is so interested in Weibo that it is willing to pay what many analysts feel is a pretty generous sum for an 18 percent stake.

Of course, there could be more to it than that. Or I could be missing the forest for the trees. We’re hoping to head more from Alibaba about its specific strategy here soon, but in the meantime, what do you think about Alibaba’s investment in Weibo?

On Sunday, Ren addressed both of these rumors directly in an email sent to internal team members but subsequently published by the Chinese tech press. In it, he firmly denies the rumors of an IPO, writing that in the next five to ten years, Huawei has no plans for an IPO or for any kind of merger, segmentation, or acquisition that would get the company into capital markets. “The rumors that [Huawei] will IPO have no basis,” wrote Ren in his letter.

He was, if anything, even more blunt in his rebuttal of claims that he planned to appoint a member of his family as his successor. After laying out a number of qualities he feels his successor must have such as vision, character, and a number of business-specific abilities, he wrote:

None of my family members possess these qualities; therefore, they will never be included in the sequence of successors [for Huawei].

Harsh words if you’re a member of Ren’s family, but it’s good to see that he’s willing to address both of these rumors clearly and directly and deny them both in very clear terms. I can’t believe I’m about to write this about Huawei, but other Chinese tech companies would do well to learn from Ren’s example when it comes to squashing rumors.

(via Sina Tech)

China’s top e-commerce company has secured what could be the biggest web deal of the year in the country. Alibaba, which has been a lot more keen to venture into social media recently, has taken an 18 percent stake in Sina Weibo, the Twitter-like microblogging service run by Sina (NASDAQ:SINA).

Sina Weibo has over 500 million registered users, and has been China’s most talked about social network in the past couple of years. Despite all that enthusiasm, only 46.3 million are daily active users of Weibo, and the service has been a headache for Sina in terms of real-time censorship and great difficulty in monetizing it.

Alibaba’s stake in Sina Weibo comes with an option to increase that, notes the New York Times’ Dealbook blog, to 30 percent in the future. The deal also involves cooperation between these two Chinese web giants that will fuse social media and e-commerce. Sina and Alibaba expect such projects to bring in about $380 million in revenue from Weibo in the next three years.

What forms could such social commerce take? Last year, the startup phone-maker Xiaomi made use of Sina Weibo to sell some of its phones. This little experiment – it was not a long-term sales channel – yielded amazing results, with 1.3 million reservations for the phones made in just five minutes. We’ll likely see Sina Weibo do more like that – but on a more permanent basis, and with Alibaba’s consumer-oriented e-commerce sites, Taobao and Tmall.

Alibaba has invested in a few social media startups in the past few months, such as a funding round put into a flirting app, and the acquisition of one music streaming site.

In a statement this evening, Alibaba founder and chairman Jack Ma said:

We believe that the cooperation of our two robust platforms will bring unique and valuable services to Weibo users, as well as making the mobile internet a core part of Alibaba’s strategy.

China-Axlr8r – which used to be known as Chinaccelerator – is seeking startups for its summer 2013 intake. The application deadline is May 1st (Wednesday), so interested parties better hurry. There are 10 spots available in the incubator, but two will be reserved for startups building for Leap Motion, the 3D gesture controller that’s expected to launch this summer.

Why Leap Motion? That’s because, as explained to us by Todd Embley, the program manager at China’s funkiest incubator, China-Axlr8r founder Cyril Ebersweiler is an investor in Leap Motion through his role in SOS Ventures (Update: Corrected that relationship). The gesture-based controller has a full SDK for developers to build upon, and will launch with a dedicated app store called AirSpace. I guess the 2013 intake up in Dalian will get plenty of access to the Leap Motion hardware (actually just a tiny box that augments the computer or gadget you’re already using), and will be able to build any kind of app or game for that platform. It’d be fun to see some that integrate with Chinese web services.

As for the change of name (I guess “Axlr8r” is pronounced “accelerator”, so it actually sounds the same as before), Todd says:

We’ve slightly rebranded due to our growing family of accelerators backed by Cyril Ebersweiler and Sean O’Sullivan from SOS Ventures. We now have China-Axlr8r, Haxlr8r, and Selr8r, with a fourth in the works for the end of this year in the US.

That latter one hasn’t been revealed, but it’s quite likely it’ll be devoted to Leap Motion developers.

To see what has emerged from this incubator before, check out our list of its 2012 batch of startups.

China-Axlr8r’s application form is here, and it’s available in both Chinese and English. If you want to see Leap Motion in action, check out this demo video:

Chinese web company Qihoo has lost its second lawsuit and legal tussle this week. This time, Qihoo (NYSE:QIHU) was up against search engine rival Baidu (NASDAQ:BIDU) in the Beijing High People’s Court, where a judge ruled in favor of Baidu’s unfair competition suit and ordered Qihoo to pay a fine and publish an apology.

Just two days earlier, another court ruled that Qihoo should pay damages to Tencent in a separate case – and say it’s very sorry.

The Baidu lawsuit against Qihoo dates back to the events of last fall, shortly after Qihoo – initially a web portal and software maker – launched its own search engine. While the Beijing court only imposed a fine of RMB 450,000 (US$72,000), smaller than the damages that must be paid to Tencent, Baidu’s legal claims were quite significant, accusing Qihoo of things like violating industry practices by circumventing Baidu’s block on Qihoo indexing Baidu’s content on sites such as Baike, which is a sort of Wikipedia clone. The court ruling today also accused Qihoo of utilizing Baidu’s search results in its own new search engine.

The leading search engine had earlier accused the newcomer of illegal seizure of Baidu’s intellectual property, and was seeking RMB 100 million ($15 million) in damages. Clearly the judges had a different idea of the value of that content.

Qihoo’s apology to Baidu must be displayed for 15 days [1] – coincidentally the same period of time as its apology to Tencent. But, as noted by Rihanna, I’m guessing that the perpetrator is not very sorry.

(Source: NBD – article in Chinese)

(Source: NBD – article in Chinese)

Oh hi, I didn’t see you there! I’m Charlie Custer, and on today’s episode of China This Week, we’re going to be looking at some tech stories from around China that are definitely going to interest you. We’ve got everything from legal losses to vulgar billboards to government subsidies. What’s not to like? Stay tuned!

1. Apple and Samsung Make Donations, Offer Practical Support, in Chinese Quake Aftermath

In the wake of another devastating earthquake in China’s Sichuan province, tech companies like Apple and Samsung stepped up and did the right thing by making donations to help the victims. Is this a surprise? No. But it’s a good thing to do and they deserve to be recognized for it.

2. Apple: “Best Quarter Ever” in China with $8.8 Billion Revenue

Speaking of Apple, the company most definitely has money to burn following its best-ever quarter in China with nearly $10 billion in revenue. Get a lot of the size of those numbers.

3. China Won’t Force WeChat to Subsidize Telecoms, Says MIIT Spokesman

It was good news for Tencent and bad news for telecoms this week as MIIT announced that contrary to what an official had previously said, the government does not plan to force Tencent to subsidize telecoms for the bandwidth and business WeChat eats up.

4. Qihoo Loses Tencent Lawsuit (Again), Must Pay Fine and Show Frontpage Apology (Again)

Is the definition of insanity really doing the same thing over and over again? Qihoo has lost a big court case to Tencent for the third time in as many years. Its executive team may be defiant, but regardless of how they feel, they’re still going to have to post an apology and fork over another big wad of cash.

5. Why a $2B Chinese Gaming Company Put “Dick Strings” on a Billboard in Times Square

Controversial advertising sometimes pays off, and Giant Interactive came up with a very clever — if, some would say, vulgar — way of advertising its latest game.

That’s all for this week, folks. For our full spread of China coverage, you can click here or subscribe to our China RSS.

In the latest in a series of high-level executives at China Mobile being detained by authorities investigating an apparent corruption case, China Business News reports that according to sources at China Mobile, an executive at the company’s Tianjin subsidiary was detained by police on Tuesday. Sources say that four other employees nationwide were detained, but that the Tianjin Mobile executive was the highest-level employee taken by police on Tuesday. The other detentions were mid-level employees at Guangdong Mobile and Inner Mongolia Mobile, and one of the Guangdong Mobile managers has since returned to work, but the others apparently remain in police custody.

The detentions would seem to be an indication of continuing police investigations at China Mobile; investigations that came blazing into the public eye last February when former China Mobile vice-chairman was questioned for economic crimes. He subsequently resigned his position at China Mobile. China Mobile’s leadership apparently also expects the Tianjin executive to be gone for good; the China Business News cites sources as saying that internally the company is already making arrangements for finding a successor and redistributing the work.

The detentions come at a particularly bad time for China Mobile (not that there’s ever a good time to have your high-level executives detained by police), which is already facing slowing growth numbers, dropping calling and texting rates, and an increased threat from mobile web apps like WeChat that the company has thus far been unable to compete with.

(China Business News via Sina Tech)