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China Digital Digest Weekly: Exploring the Chinese Digital Landscape

Hi folks, we are back with our weekly edition of China’s Digital Digest, wherein we bring you weekly updates on China’s digital space. The report takes a quick glance at China’s complex and rapidly evolving social media landscape by providing updates on the latest happenings across the social media industry. Here are the major highlights of the report.


1. ByteDance Establishes Overseas Short Drama Team, Launches Short Drama App “Melolo”



ByteDance has launched a short-drama app in Southeast Asia in an attempt to replicate the genre’s success at home.



Melolo, released in November by ByteDance subsidiary Poligon, offers a variety of short dramas for free, with each episode typically a few minutes long. These online miniseries, filled with gripping plot twists designed to hook viewers, are quickly gaining traction in China. The app is currently available in markets including Indonesia and the Philippines and continues to explore new business opportunities.


ByteDance appears to be eyeing the potential for short dramas in the Western market as well.


2. TikTok Expands Ecommerce Operation Into Mexico Amid Potential US Ban



TikTok’s e-commerce operation is expanding into Mexico, the initial stop of a broader foray across Latin America.



TikTok Shop has started inviting merchants to open stores on the platform ahead of the expected start of transactions in February of its Mexico retail operation, according to two people with knowledge of the matter. They said merchants with a locally registered entity are eligible to sign up and be exempt from commission fees for the first 90 days of commercial activity. The push into Mexico was initially expected to be in the summer but was postponed amid scrutiny of TikTok in the United States.


3. ByteDance Denies Collaborating with Nubia to Develop AI Smartphones



ByteDance has rebutted rumors that the Chinese owner of TikTok will co-develop artificial intelligence phones with local handset manufacturer Nubia.



According to recent rumors circulating on social media, ByteDance and Nubia inked a deal to develop a detailed plan for an AI phone business this quarter, with prototype production and testing to start next quarter and a launch event to be held around the end of the third quarter. In a different rumor circulating last month, ByteDance was said to be cooperating with tech giant ZTE to establish a new phone brand using its Doubao AI bot.


4. US Adds Tencent, CATL to List of Chinese Firms Allegedly Helping Beijing’s Military



The Pentagon has added five Chinese companies including Shenzhen-based tech giant Tencent and the world’s biggest battery maker CATL to a list of mainland firms that Washington believes pose threats to US national security.



The new additions include chipmaker ChangXin Memory Technologies Inc, Quectel Wireless and drone-maker Autel Robotics, according to a document on the Federal Register. The move expanded the Pentagon’s list of Chinese military companies to 134, including 57 entities and their subsidiaries. The designation forms part of Washington’s efforts to counter Beijing’s military-civil fusion strategy.


5. Apple Offers Fresh Price Cuts on iPhones in China as Huawei Competition Heats Up



Apple is offering consumers in mainland China fresh price cuts on iPhones and other products via its local website, as the US tech giant seeks to boost sales amid stiff competition with Huawei Technologies and other domestic rivals in the world’s largest smartphone market.



Cupertino, California-based Apple announced a promotion running from January 4 to 7 that will provide a 500-yuan (US$68) discount on its latest premium models, the iPhone 16 Pro and iPhone 16 Pro Max. A 400-yuan deduction will be offered for the basic iPhone 16 and iPhone 16 Plus models. Older handsets, including the iPhone 15 and iPhone 14 series, will see up to a 300-yuan markdown.


Steeper discounts of up to 800 yuan will be available for the MacBook Air. Modest price cuts will also be applied to iPads, Apple Watches, AirPods and Apple Pencils, according to the company’s website. While the price cuts will also be offered at the firm’s bricks-and-mortar Apple Stores, the items on promotion will be limited in quantity, with only 29,300 iPhones available on discount.


6. Gucci Kicks Off CNY Campaign With Video Starring Xiao Zhan and Ni Ni



Italian luxury fashion house Gucci has launched a promotional video for its Chinese New Year (CNY) campaign, starring its brand ambassadors, Chinese actor and singer Xiao Zhan and Chinese actress Ni Ni.



The campaign also includes an exclusive WeChat Red Packet cover from the Italian brand, which can be pre-ordered now. Xiao’s star power caused the campaign video to be reposted 174,000 times and the official hashtag “Happy Chinese New Year with Gucci” (#跟古驰欢乐过年#) gained 160 million views in the past 30 days.


7. Alibaba Enters the AI Glasses Market and Reaches A Strategic Cooperation with RayNeo



Consumer-grade AR brand RayNeo held a strategic signing ceremony with Alibaba Cloud where both parties announced an exclusive strategic cooperation in the field of AI glasses.



As per the announcement, the Tongyi series large models will provide exclusive customized technical support for RayNeo’s AI glasses. It is reported that this is the first in-depth customization collaboration between a large model and an AI glasses hardware manufacturer in China. The Alibaba Cloud Tongyi series large models will provide a full set of AI technology and product support for RayNeo’s AI glasses products.


Both sides stated that they will jointly invest research and development resources and manpower around cloud computing, large models, AI hardware, and other areas to continue their cooperation.


8.Mexico Unveils New Tariffs That May Put Shein, Temu in The Crosshairs



Mexico’s tax authority SAT has issued new tariffs, which it said will strengthen the surveillance of goods from Asia, a measure that could impact popular online retailers like Shein and Temu.



Goods that enter Mexico via courier companies originating from countries that do not have an international treaty with Mexico will be subject to a duty of 19 per cent, SAT said in a statement shared with reporters. Mexico does not have an international treaty with China, where Shein and Temu are based.


Wrapping Up

The vast and diverse nature of the Chinese Social Media space makes it incredibly challenging to keep a tab on the rapid developments taking place. However, China’s Digital Digest brings you all the latest updates from there to keep you abreast of all the evolving trends.


To delve deeper into the findings of our latest report, click here.

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