Caixin
Jan 15, 2019 08:04 PM
YOUR BRIEFING

Tuesday Tech Briefing: Huawei Canada Exec Quits Troubled Company

1. Huawei Canada Exec Quits Troubled Company

Scott Bradley, Huawei Canada’s senior vice president for corporate affairs, has quit the company as its chief financial officer awaits U.S. extradition proceedings in Vancouver.

Bradley disclosed his move in a post on job networking site LinkedIn. He didn’t give a reason but wrote “as we start 2019, it is time for a change.”

In December, Meng Wanzhou, Huawei’s chief financial officer, was arrested in Canada in connection with alleged violations of U.S. sanctions on Iran. Last weekend, the company received more bad news with the arrest of a Chinese Huawei executive in Poland on charges of spying.(Caixin)

2. Alibaba Confident in China Sales Despite ‘Troubling Headwinds’

Alibaba Group President J. Michael Evans has expressed confidence in the China’s consumer market despite recent data showing a deepening economic slowdown, The Wall Street Journal reports.

“This is a market that requires patience,” Evans said at the U.S. National Retail Federation’s annual trade show on Monday.” But if you think about where the country is going in the long-term…The future I think looks very good, notwithstanding some troubling headwinds.”

Alibaba cut its full-year revenue forecast by 4% to 6% in November, citing growing doubts about the economy and slowing sales growth for smartphones and other consumer electronics amid trade tensions with the U.S. (The Wall Street Journal)

3. Canadian Sentenced to Death for Drug Smuggling

A court in northeastern China sentenced Canadian Robert Lloyd Schellenberg to death for smuggling illegal drugs Monday.

The conviction is likely to further inflame a diplomatic row between China and Canada. Tensions have risen since Canada’s arrest Huawei’s chief financial officer in early December. Two Canadian nationals have since been detained in China on allegations of endangering national security.

Canada’s Prime Minister Justin Trudeau said Monday morning that Schellenberg’s case is of “extreme concern.” (Caixin)

4. Luckin Coffee Reportedly Seeks IPO in Hong Kong

China’s Luckin Coffee is reportedly seeking to list on the Hong Kong stock exchange. Investment banks have begun to prepare listing materials for the IPO, research firm EqualOcean said.

Luckin was founded only 13 months ago, and quickly emerged as a fierce challenger to Starbucks in China. Its estimated valuation is $2.2 billion, after a $200 million B-round of funding in December. Luckin has opened 2,073 stores in China and aims to launch another 2,500 in 2019.

Citing leaked financial information, local media reported that the coffee chain lost more than 857 million yuan ($127 million) in 2018 amid rapid expansion. (Caixin)

5. Huawei’s 5G Gear Seen as a Bargain in European Capitals Despite Polish Arrest

Huawei Technologies’ competitive 5G advantage in central and eastern Europe is likely to remain because of its affordable technology, even as suspicion rises following the arrest last week in Poland of a Chinese sales director on spying charges, the South China Morning Post reports.

“Countries will be keen to slash costs [when buying 5G gear] wherever possible, and one way to do so is to opt for cheaper but proven Chinese equipment,” Kenny Liew, a Fitch Solutions analyst said. “The US may find that they lack the requisite leverage to successfully push for a ban on Chinese equipment in these countries.” (South China Morning Post)

6. You Can Now Send Money to Inmates With Alipay

Friends and families of prison inmates can now transfer money to Beijing jails through Alipay to pay for services and optional purchases for inmates, the mobile payment giant confirmed Monday.

In China, jails cover most of inmates’ expenses, but in some circumstances allow them to purchase extra items and services upon approval.

This is Alipay's latest public-service function. The platform already allows users to pay utilities, book medical appointments, check for updates on their social insurance status, and collect digital divorce certificates. (Caixin)

Compiled by Hou Qijiang and Qian Tong

Contact editor Teng Jing Xuan (jingxuanteng@caixin.com)

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