H&M got hit by an unprecedented boycott from Chinese consumers, as the China internet went after the company for its stance on labor in Xinjiang. Partly that vehement outpour of anger was caused because internet companies have been under government investigations, says veteran business analyst Shaun Rein, so they had to prove more than ever they were not a danger for that government, he says at AP.
The main difference with the rest of the world is that in China social media and e-commerce merged into platforms, says China marketing guru Ashley Dudarenok. When you want to dive into China, you have to pick your platform and realize they are different from what you are used to, she adds. Most likely you have to pick one of them.
China is following the European Union’s GDPR in trying to regulate the unruly data industry, says Winston Ma, Winston Ma, adjunct professor at the New York University School of Law at CNBC. China’s internet companies based for years their business models on consumers’ lack of awareness of privacy, he adds, but those days are over.
Alibaba and Tencent were high-profile casualties as the central government stepped in to regulate free-wheeling tech firms with growing financial clout. To the relief of consumers and smaller competitors, exponential growth in the tech industry is over, tells Winston Ma, former managing director of the sovereign wealth firm China Investment Corporation (CIC) in New York to Reuters.
China’s government shocked the fintech industry by introducing firm financial measures, similar to the banking sector. Ant Financial even had to cancel its massive IPO. But what we have seen is only the start of more government action to regulate the internet, says fintech expert Sara Hsu in the Diplomat. Managing capital and data are key elements.
China’s automotive industry has traditionally taken a backseat compared to global competitors, but is planning a major overtake when it comes to pushing startups on self-driving, says China lawyer Mark Schaub in the Asia Nikkei. “In China, if you always wait till the law comes into effect, you are six months to a year behind what the regulators are saying,” Schaub said.
In the early days, KFC and McDonald’s tried to conquer China’s consumers with a standard US menu. Now diversification and localization have become a key feature in the success of both fast-food chains, although the road has not been without bumps, says marketing expert Ashley Dudarenok to the Panda Daily.