Friday Tech Briefing: Richard Liu, Quantum computing, Didi

BIG TECH COMPANIES

1. Prosecutors in Minneapolis to Review JD.com Founder’s Sexual Assault Case

What: The Minneapolis Police Department’s investigation into a sexual assault allegation against Chinese internet tycoon Liu Qiangdong has been turned over to prosecutors, who will decide whether to file charges.

Why it’s important: Liu is the founder of Beijing-based e-commerce site JD.com. He was arrested Aug. 31 in Minneapolis on suspicion of felony rape but was released 18 hours later without posting bail.

Big picture: Although Liu had returned to China shortly after his release, he “absolutely” has to be present for trial if charges are brought against him, the Hennepin County Attorney’s Office said. (Caixin, link in Chinese)

2. Alibaba Vows to Produce Quantum Computing Chips to Compete with Google and IBM

What: China's e-commerce giant Alibaba plans to unveil a demo of a quantum computing chip in five years, a company researcher told Caixin.

Why it’s important: Companies like Google, IBM, and Intel have been rushing to expand on quantum computing, a technology likely to transform industries like cryptography, drug development and weather forecasting.

Big picture: Chinese companies have been slow on the draw. Now the three local internet giants — Alibaba, Tencent, and most recently Baidu — have all set up laboratories for quantum computing research. (Caixin, link in Chinese)

3. JD.com Steps Up Challenge to Alibaba in Bricks-and-Mortar Retailing

What: China’s second-biggest online retailer, JD.com plans to open 1,000 supermarkets in the next three to five years, the company announced Wednesday.

Why it’s important: The opening of supermarkets known as “7Fresh” is part of JD.com’s broader strategy to expand offline, which also includes thousands of convenience and home-appliance stores.

Big picture: JD.com has been playing catch-up with its rival Alibaba Group Holding Ltd., a pioneer of the “new retail” concept, which seeks to blend online and physical retail. (Caixin)

PRODUCTS

4. Didi Rolls Out Safefy Measures After Passengers Deaths

What: Didi Chuxing, China’s dominant ride-hailing platform, is rolling out a function to allow users to share riding details with emergency contacts automatically in self-designated periods like late in the night.

Why it’s important: Didi is under heavy pressure to improve safety measures after two passengers using its Hitch service were killed by drivers. The company has been accused of expanding at the expense of safety standards.

Big picture: Didi rose to dominance in China’s ride-hailing industry after winning costly subsidy wars and absorbing rivals, most notably Uber China in 2016. (Product announcement, link in Chinese)

POLICY

5. Authorities Expect New-Energy Vehicles Sales to Grow Despite Sluggish Car Consumption

What: New-energy vehicles sales have reached 601,000 in the first eight months in 2018, up 88% from last year, and are expected to be a key driver of China’s slow-growing car consumption, the Commerce Ministry said Thursday.

Why it’s important: Overall car sales in China have been declining since May. The authorities attribute the decline to an already large ownership base, fewer first-time car purchases and a shift toward high-end consumption. (Xinhua, Link in Chinese)

6. Artificial Intelligence Startup Picked by Beijing as a Partner

What: China’s Ministry of Science and Technology has named Hong Kong image-recognition startup Sensetime as a partner in building the nation’s artificial intelligence (AI) platform, authorities announced Thursday.

Why it’s important: Sensetime is the fifth company picked by the government to develop next generation AI, after Alibaba Cloud, Baidu, Tencent, and voice-recognition firm iFlytek. (Announcement, link in Chinese)

Complied by He Shujing