Monday Tech Briefing: JD.com, Alibaba, GDP
1. JD.com to Launch Flagship U.S. Store on Google
JD.com Inc. will launch a flagship online store on Google’s shopping platforms to sell directly to American consumers by the end of the year.
China’s second-largest online retailer is working with Google as the U.S. search giant attempts to get a foothold in e-commerce and earn more advertising revenue.
JD.com wants to become a global provider in part because of growing competition from not just larger rivals like Alibaba Group Holding Ltd. but also the up-and-comer Pinduoduo Inc. Still, it faces potentially serious headwinds from a roiling trade war between the U.S. and China, which could inflate costs on goods and shipping. (Caixin)
2. Alibaba Forecasts Record One Billion Orders for Singles’ Day
E-commerce giant Alibaba Group Holding expects to achieve a record 1 billion orders in 24 hours during its Nov. 11 ‘Singles’ Day,’ as the company pulls together its entire retail ecosystem in China and overseas to participate in the world’s largest online shopping event this year, SCMP reports.
The shopping event will see the participation of more merchants and consumers outside China to mark its 10th anniversary, as the company’s Southeast Asian subsidiary Lazada Group will jointly hold promotions in Singapore, Malaysia, Thailand, Indonesia, the Philippines and Vietnam.
Alibaba has boosted investment to support its New Retail strategy amid increased competition on multiple fronts in China. (SCMP)
3. Wall Street's Biggest Apple Bull: China Sales are 'Fuel in the Engine'
A Wedbush Securities analyst has said that a $1.5 trillion market cap for Apple is “more than possible” thanks to strong Chinese demand and a growing services business, CNBC reports.
Analyst Dan Ives gave Apple an “outperform” rating and a 12-month price target of $310, higher than any other analyst on Wall Street. His target is 40% higher than Apple's closing price on Thursday.
Ives said that growing trade tensions between China and the U.S. could pose a threat to Apple, but he said the company is "ahead of the curve" when it comes to manufacturing. The Apple Watch and AirPods earphones were exempted last month from a new round of Chinese import tariffs imposed by President Donald Trump. (CNBC)
4. China's Growth Dragged Down by Construction, Bolstered by Tech
Chinese tech propped up slower-than-expected Q3 economic growth in China, which was weighed down heavily by construction and manufacturing, according to government data.
Growth in the construction sector slowed to 2.5% from a year earlier compared with 4% in the previous quarter, Bloomberg reports. The financial sector also grew at a slower pace of 4% while information technology continued to expand at a whopping 32.8%, compared with 31.7% in Q2.
GDP figures released Friday showed China’s economy grew 6.5 % -- the slowest pace since the global financial crisis in 2009. (Bloomberg)
5. China Seeks Global Cooperation to Build $100 Trillion Smart Economy
China has called for global Internet of Things (IoT) partnerships and for the creation of a joint IoT application platform and standards.
He Xuming, executive chairman of the World Internet of Things Convention, valued the market for a global IoT-based smart economy at $100 trillion.
A recent report released by China Economic Information Service claimed that the national IoT market grew by some 1 trillion yuan ($144 billion) between 2009 and 2017, with over 25 percent compound annual growth during that period. (China Daily)
6. Chinese Travel Platform Mafengwo Denies Faking Reviews After Social Media Storm
Chinese travel platform Mafengwo is under fire for allegedly using bots and hired writers to scrape hundreds of thousands of reviews from rivals such as Ctrip, Meituan-Dianping, Agoda and Yelp, SCMP reports.
Mafengwo, known mainly for its millennial user base of independent travelers, has denied a social media post that accused it of fabricating as much as 85% of review content.
Platforms like Mafengwo and competitors such as travel booking platform Ctrip and restaurant review app Meituan-Dianping offer booking and reservation services to users who can also leave reviews. (SCMP)
Compiled by Hou Qijiang and Qian Tong
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