In its ongoing competition with the United States for technical supremacy, China has presented a comprehensive strategy to increase its influence in AI governance, which includes the establishment of a global cooperation organisation.
China Proposes Global AI Oversight Body at WAIC 2025
During his speech at the inauguration of the World Artificial Intelligence Conference (WAIC) in Shanghai on 26 July, Chinese premier Li Qiang lamented that “bottlenecks” like the availability of computer chips were limiting AI advancement.
According to Li, there is still a lack of cohesion in the field of global AI governance. When it comes to things like institutional rules and regulatory ideas, there is a world of variation between countries.
He continued by saying that the international community should work together more closely to quickly establish a global framework for AI governance that can garner widespread support. The establishment of “a world AI cooperation organisation” would be aided by China, he declared.
Inside China’s 13-Point Plan for AI Regulation
Following Li’s speech, the foreign ministry released a thirteen-point plan for the international regulation of artificial intelligence. The plan included a safety governance framework, two new UN-sponsored AI conversation venues, and other measures.
The Chinese capital has been touting its “open” innovation and “share indigenous technologies” policies for the past few months. Large language models (LLMs) developed by two of China’s leading artificial intelligence (AI) companies, DeepSeek and Alibaba, are now open-source and accessible to programmers all around the globe.
Part of China’s strategy is to encourage more sharing of critical software and hardware, including semiconductors, and more cooperation on open-source technologies via new international platforms and developer communities. The United States is worried that China’s superior open-source LLMs would threaten Silicon Valley’s worldwide pricing and dominance because of the country’s cheap tech.
Global AI Power Play: Tensions With the U.S.
In light of Washington’s restrictions on shipments to China of sophisticated semiconductors and the machinery used to manufacture AI solutions, as well as its pressure on allies to follow suit, Li’s remarks demonstrate the severe technological rivalry between the two countries.
A Hangzhou-based company called DeepSeek released an LLM this year, which prompted some to question whether the United States could keep its technological advantage. This shows that China is still making progress.
According to Li, China is eager to share more of its answers with the world and add more of its wisdom to the governance of artificial intelligence on a global scale. He elaborated by saying that AI will power a new wave of economic expansion. He emphasised China’s desire to “make the achievements of AI development better benefit the world” by sharing technology with southern nations.
A Geopolitical Showdown Over AI Leadership
Over the course of the four-day artificial intelligence conference and exhibition, China’s foreign ministry extended invitations to high-ranking officials from over forty nations and international organisations. Compared to 2024, when the conference was mostly attended by Americans, this year’s WAIC has seen an increase in international attendees. Yoshua Bengio of Canada, Nobel laureate Geoffrey Hinton, and former Google CEO Eric Schmidt are among the speakers scheduled to appear.
China’s strategy follows the White House’s recent announcement of a plan to make the United States the AI industry leader. Accelerating innovation through reducing bureaucracy, constructing infrastructure, and maintaining US leadership in worldwide AI diplomacy and security were the primary goals.
According to persons with knowledge of the situation, Foxconn‘s Telangana facility has been unable to produce Apple AirPods because of a dysprosium scarcity brought on by China’s crackdown on the export of rare earth metals.
A little over forty-five kilometres from Hyderabad lies the Foxconn Interconnect Technology (FIT) facility at Kongara Kalan. FIT is a major subsidiary of Hon Hai Technology Group (Foxconn), a multinational electronics contract manufacturer based in Taiwan that is listed on the Hong Kong Stock Exchange.
According to the Apple vendor, there has been no interruption in production. In April of last year, Apple started producing AirPods at the India facility as part of a larger plan to diversify production away from China. Neodymium, dysprosium, and other rare earth metals are present in the earphones. China and other countries mine neodymium, which is used as a magnet.
What Caused the Rare Earth Shortage at Foxconn?
According to one of the individuals quoted in a news report, Foxconn alerted the Telangana government about the supply problem. According to various media reports, the Telangana government then brought up the issue with the Department for Promotion of Industry and Internal Trade (DPIIT).
The individual stated that Foxconn has requested assistance from the state government in order to have the end-user certificate (EUC) verified and attested by central ministries. The EUC confirms the intended purpose and recipient of products, particularly those that could be abused or diverted.
Another stated, “As part of the process, Foxconn received the end-user certificate from the Chinese embassy and the Ministry of External Affairs.” Following that, Foxconn’s supplier applied to the Chinese authorities for approval of exports of dysprosium. However, the (Chinese) government has not yet approved it; thus, it is still waiting.
The provider will export the rare earth metal after that is finished. Apple didn’t answer any questions. “There is no disruption to production,” Foxconn stated, adding that it “has no comment on the issue.”
How the Supply Chain Bottleneck is Affecting Apple AirPods Production?
Foxconn and Tata Electronics are two of Apple’s main suppliers in India. Apple’s largest contract manufacturer worldwide is Foxconn. An industry official stated, “The Foxconn AirPods plant did experience a production slowdown, but it appears to have improved since then.” “The company is currently handling the situation, but the metal supply chain is a little longer.”
The second individual cited previously stated, “The Foxconn logistics team is anticipating approval by the end of this month.” ” The application must be approved within 45 to 50 days of the date of submission. Before they receive the extra material, Foxconn is extending the product cycle by using whatever rare earth metals and dysprosium they currently have on hand.
China’s Export Curbs and Their Global Impact on Electronics
In response to US President Donald Trump’s tariff threats, China put seven types of medium and heavy rare earths—samarium, gadolinium, terbium, dysprosium, lutetium, scandium, and yttrium-related items—on an export control list early in April.
The India Cellular and Electronics Association (ICEA) advocacy group told the government that the restrictions were causing delays and cost inflation, according to an ET story on July 18. Foxconn reportedly recalled more than 300 Chinese engineers from its iPhone manufacturing facilities in India earlier this month, allegedly at Beijing’s request.
At the time, experts stated that although Taiwanese professionals could potentially replace Chinese engineers, machinery and metals were the main cause for concern. They have stated that it is more difficult to maintain operations when those are curbed.
China’s manufacturing sector saw its most rapid decline in over a year, with the April Purchasing Managers’ Index (PMI) falling to 49.0, its lowest level since December 2023. This marked contraction, indicated by a reading below 50, occurs against the backdrop of the export-driven parts of the economy being pushed hard, and not in a good way, by the US tariffs. But the PMI decline also reflects many of the other problems impacting Beijing’s industrial base.
The sharp downturn stems from external shocks, especially changes in the global trade environment. Across the country, manufacturers have been reporting a twin surge of order cancellations and production-line halts, especially those tied to exports bound for the United States. With demand rapidly evaporating, the pressure is now on policymakers to come up with some serious new policy measures.
Tariffs Deal a Major Blow to Exporters
The harm done by US President Donald Trump’s 145% tariffs has been fast and clear. Issued as part of a fresh trade offensive, these duties have thrown many Chinese exporters into disarray. A separate measure of new export orders dropped to 44.7 in April, a level not seen since late 2022, when the country was still wrestling with recovery from pandemic disruptions.
Exporters are currently not engaging in production and shipment activities. This is due to the uncertainty surrounding tariffs. Exporters are already scaling back, and that’s having a notable effect at just the wrong moment for the Chinese government. The trade measures are hitting real economic activity right now, and the industrial sector is already feeling the heat.
Beijing Eyes Targeted Stimulus Measures
Even though the officials have kept from launching big stimulus packages, Beijing is steadily moving in the direction of issuing targeted initiatives to help the hard-hit sectors. They’re doing this by making it less troublesome for affected businesses to obtain the financing they need and by taking steps to coax consumers back into the marketplace. It’s likely that these efforts will, in turn, lead to the issuance of more proposals, both fiscal and monetary, that are aimed at lifting the economy.
Zhao Chenxin, vice chairman of the National Development and Reforms Commission of China, indicated that the government has plenty of policy instruments at its disposal to tackle the current problems. He signaled that the government will speed up the implementation of already approved programs and seemed to commit to that effort. But the absence of any broad-sweeping, across-the-board stimulus seems to suggest a more cautious approach. This reflects a concern for overall financial stability and a wish not to upset the international trade situation any further than it already has been.
The tariff confrontation between Washington and Beijing has moved beyond the economic realm. Wang Yi, China’s foreign minister, dismissed talk of a negotiations, saying that yielding to U.S. pressure would just encourage more of it in the future. Chinese media has been having a field day with his and other officials’ remarks. The message: China is not going to back down.
India’s trade deficit with China has reached an unprecedented level of USD 99.2 billion, prompting Beijing to revise its approach to economic relations with New Delhi. Chinese Ambassador to India Xu Feihong described his nation as more than willing to import premium-grade, high-quality products from India. He characterized the push as part of a larger, more immediate strategy for Beijing to both balance trade figures and strengthen the hand of pro-economic engagement elements within the Indian government. China has recently been ramping up imports of Indian products it considers top-notch.
Xu urged Indian companies to take advantage of China’s enormous consumer market, which is now home to the world’s largest middle-income group. He advised them to answer China’s call for major trade events like the China International Import Expo and the China-South Asia Expo. Xu pointed out that direct access to buyers and distributors, which these platforms facilitate, is a good first step toward penetrating the otherwise hard-to-enter Chinese consumer market.
Trade with Conditions: A Call for Reciprocity
China welcomes more Indian imports and in return expects India to act in a business transparent and fair manner. Xu noted that Chinese companies in India have had to deal with all sorts of problems, including long delays in issuing visas to their professional staff, and a general climate of suspicion that has been created by regulatory scrutiny and negative media coverage.
He remarked that even after issuing many visas to Indian nationals and vigorously promoting bilateral exchanges, doing business in India remains a tall order for Chinese firms. He noted that for trade to flourish, Indian authorities must create a more open and consistent policy environment for Chinese investors.
Strengthening Economic Diplomacy
The strategic necessity of stable India-China relations was a theme the ambassador carried well past trade balances. Beyond the trade ledger, he hoisted the strategic need for stable India-China ties up the flagpole and checked to see whether it was flying at half-mast along with those of the many other ambassadorial signatories who have carried this same dead message over the years.
In this case, the deputy chief of mission largely echoed Prime Minister Narendra Modi’s viewpoint that what differs shouldn’t become a dispute. Xu asked for dialogue and cooperation to make long-term peace possible. Let’s hope this carries some weight, or should I say, gives Xi some face.
He said the attention should be on increasing collaboration areas instead of letting individual differences obscure more extensive relations. From this perspective, trade is both an economic and political means to bring the two countries closer together.
A Timely Shift Amid Global Turbulence
Due to a global shift in trade toward protectionism, particularly from the United States, both China and India have a vested interest in deepening South-South cooperation. As two of the largest developing economies, their ability to get along and work with others in the so-called South could act as a stabilizing force in an increasingly fragmented global economy.
When China offers to import more premium Indian goods, it is signaling not just a tactical recalibration of trade numbers, but a deeper, more profound shift in its approach to India. Imports of premium goods represents China’s willingness to invest in a more balanced and resilient partnership with India.
Nearly five years after the fast-fashion giant’s app was blocked in India due to rising diplomatic tensions between India and its neighbour, China, Isha and Mukesh Ambani’s Reliance Retail has successfully reintroduced Shein in India. Shein has returned to one of Asia’s biggest retail markets with the recently released Shein India Fast Fashion app, which was created under a license agreement with Reliance.
Reliance’s control over operations and data, with all consumer information retained in India, is one of the strict requirements attached to this agreement. The action also represents a change of strategy for Reliance, which aims to expand its online presence by providing Shein’s well-liked, reasonably priced clothing on a completely localised platform.
Nearly five years after its app was banned in India due to diplomatic concerns between China and India, Reliance Retail has formally restored its presence in the country by launching a new app to sell fashionwear from China’s Shein. According to sources, the app, Shein India Fast Fashion, was secretly released on Saturday morning; however, Reliance has not yet released an official statement.
Why Shien is Riding on Reliance’s Back?
Founded in 2012 in China and currently based in Singapore, Shein gained popularity for selling stylish yet reasonably priced Western clothing. It suffered a blow in 2020, though, when India blocked Shein and other Chinese apps like TikTok due to national security concerns in the midst of escalating border issues between the two nations. As a result, customers could no longer access the site, which had been very popular in India.
Shein is currently reviving in India despite the setback thanks to a license agreement with billionaire Mukesh Ambani‘s Reliance Retail. Reliance will pay a licensing fee to use the Shein brand name as part of this partnership, but no equity investment will be made.
The transaction marks a substantial departure from Reliance’s typical approach, even if the company has not yet made the financial details public. With the new agreement, Shein will have a dedicated platform for Indian consumers instead of just adding foreign brands to its existing Ajio fashion app, where it presently sells brands like Superdry and Gap.
Shein’s return is significant since the business will be operating under strict guidelines. Shein will only serve as a technological partner, while Reliance will maintain exclusive control over the platform and its operations. The fact that all client data would be kept locally in India and that Shein will not have access to it is a key requirement of this relationship.
This action supports the Indian government’s initiatives to preserve sensitive consumer data and uphold data sovereignty. To guarantee adherence to India’s stringent data standards, Shein will also need to submit to routine security audits conducted by cybersecurity companies that have been approved by the government.
What New Shein India App Will Offer
Dresses for as little as 199 rupees (about $2.30) are among the many affordable fashion items available on the new Shein India app. Customers will first be able to use the app in a few cities, including Bengaluru, Mumbai, and New Delhi, with hopes to quickly expand to more areas. One of the app’s noteworthy characteristics is that, in keeping with India’s efforts to strengthen its domestic textile sector, all Shein-branded products offered through the platform would be created and produced locally by Indian producers.
Why It’s a Win-Win Deal for Both Reliance and Shein?
Reliance’s decision to relaunch Shein in India is a component of a larger plan to bolster its online presence and subvert the dominance of competitors like Flipkart, Amazon, and Meesho, particularly in the fiercely competitive fashion e-commerce market. Even though it has the biggest retail chain in the nation, Reliance has had difficulty breaking through in the online retail space. With the recent introduction of quick delivery options like same-day delivery under 30 minutes for some orders on its Myntra platform, Flipkart in particular has been a formidable rival in the fashion e-commerce market.
As it gets ready for a possible public listing, this partnership offers Shein a calculated chance to re-enter one of Asia’s biggest and fastest-growing retail sectors. Following its unsuccessful bid to list in the United States due to lawmakers’ concerns about China’s rules that companies seek government approval before listing overseas, the platform has been preparing to go public in London later this year.
Over 300 platforms have been impacted by India’s continuous prohibition on Chinese applications since 2020; this cooperation is a rare exception. Several Indian government agencies, including IT and Home Affairs, conducted a thorough screening procedure before approving Shein’s return, paying particular emphasis to making sure Shein complied with the country’s strict cybersecurity and data protection regulations. The alliance intends to support the expansion of India’s textile manufacturing industry while protecting data privacy and national security objectives, according to Commerce Minister Piyush Goyal.
All things considered, Shein’s return to India under the Reliance collaboration marks a dramatic change in the fast-fashion sector in India and not only a win for Shein but also for the changing nature of global trade in the area. Shein’s affordable products, along with Reliance’s wide distribution and domestic production, have the potential to upend the competitive environment as the company continues to establish itself in the Indian retail sector, especially in the online fashion retail space.
A comparable decline has occurred in the fundraising efforts of Chinese venture capital firms, which has led to a reduction in the number of new businesses that are established in China on an annual basis.
The Chinese startup scene was portrayed in a recent media piece as being in a grave state, with founders, investors, and venture capitalists expressing negative remarks.
According to a report citing information from a Beijing-based executive, the entire industry has recently perished before our eyes. There is no longer any spirit of entrepreneurship. The entire sector is saddened to see this.
IT Juzi’s Data Reveals a Sad Story
Data from IT Juzi, which was quoted in the research, indicates that the number of firms that have been established in China up to this point in 2024 is just 260. This figure is on course to go below the goal of 1,202 in 2023 and represents a 99% decrease from the highest point of 51,302 in 2018.
It was stated by the CEO of IT Juzi in comments that were published on X that the data do not represent all companies. He also stated that despite the fact that China’s venture capitalists and founders have been facing issues in recent times, the country still possesses “great creativity and entrepreneurial spirit.”
On the other hand, venture capital fundraising has experienced a comparable decline. Since the beginning of the year, funds denominated in Yuan have raised the equivalent of $5.38 billion, which is a significant decrease from the peak of about $125 billion in 2017. According to Preqin, a privately held London-based investment data company, dollar-denominated funds have raised less than one billion dollars, which is a significant decrease from the high of $17.3 billion dollars in 2022.
The Present Scenario
The collapse of China’s startup scene occurs at a time when the country’s economy is still slowing down and continues to cool overall, according to new data released recently.
In the meantime, Beijing’s industrial policies have contributed to the worsening of economic imbalances, which in turn are contributing to the current economic downturn. In addition, the anti-corruption campaign, the “common prosperity” drive, and the crackdown on the private sector that President Xi Jinping has implemented have all contributed to a reduction in entrepreneurial activity.
According to the research, state-run funds have assumed a more significant role as a result of an increase in the number of investors’ withdrawals, and they currently account for around 80 percent of the total capital in the market.
The investment managers of these funds are also required to guarantee returns, which encourages them to look for opportunities with low risk or to steer money to Beijing’s designated priorities.
China may be the most fertile ground for business and startup creation. With 1.4 billion people, China’s user market is massive; there is fierce rivalry among entrepreneurs; firms receive enormous subsidies, and the economy is actively developing. In terms of the number of freshly formed unicorns, Chinese companies overtook Silicon Valley with 243 startups. Chinese startups made $25.7 billion from January to June 2023 up 8.8% YOY. In the second quarter of 2023, Chinese startups received a total funding of $11.2 billion, surpassing the funding levels seen in both the first quarter of 2023 and the second quarter of 2022. These businesses not only survived but flourished throughout the epidemic, growing at a breakneck pace by meeting and exceeding client expectations. With that in mind, let us look at the Top 15 startups in China.
Here are listed some of the best Chinese startups:
Yipin Fresh
Startup
Yipin Fresh
Founder
Jianfei Jiang
Founded
2013
Headquarters
Nanan, Chongqing, China
Yipin Fresh – Best Startups in China
Yipin Fresh, a grocery store company based in Hefei, operates almost 900 fresh-food neighborhood stores in 17 Chinese towns. Online ordering and second-day delivery are also available through the company’s Yipien Daojia app and WeChat microprogramme. This Chinese startup has been on a growth and financial tear over the previous three years, which the pandemic exacerbated in 2020.
ByteDance
Startup
ByteDance
Founders
Zhang Yiming
Founded
2012
Headquarters
Beijing, China
ByteDance – Best Startups in China
With a total worth of $220 billion in March 2023, ByteDance became the world’s most valuable unicorn, and its market capitalization has since risen to a staggering $353 billion in 2022. TikTok, its Chinese equivalent Douyin, the Indian Helo social network in many languages, the Chinese news site Toutiao, and several other services are all owned by the firm.
WeRide, a Chinese startup, is another critical competitor in the drone sector. The startup has already debuted its robotaxi, deployed 100 drones, and got approval to operate without drivers. Nissan, Renault, and Mitsubishi are among the firms that have invested in the business. This Chinese startup has raised $1.1 billion in funding over 6 rounds.
Zuoyebang
Startup
Zuoyebang
Founder
Hou Jianbin
Founded
2014
Headquarters
Beijing, China
Zuoyebang – Best Startups in China
For school children and preschoolers, Zuoyebang provides online classes, courses, and personal instructor consultations. During online broadcasts in the fall of 2020, 10 million people were recorded on the site.
WeDoctor is a firm that provides a wide range of healthcare services to its users. The concept for the service originated with an application for an online doctor’s appointment. You may now obtain an online consultation, write a prescription, and diagnose using a built-in artificial intelligence system with the aid of WeDoctor. The startup is valued more than $7 billion in 2023.
WeDoctor secured a grand total of $1.4 billion in funding across six funding rounds. Their most recent funding round was a Series F, concluded on February 1, 2021.
Pony.ai
Startup
Pony.ai
Founders
James Peng and Tiancheng Lou
Founded
2016
Headquarters
Fremont, California
Startup Pony.ai debuted in 2016, and since then, the company has grown at the same rate as drones. Pony.ai is now one of the most valuable unicorns globally when it comes to producing drone technology. The company’s main line of business is autonomous deliveries, and it’s also working on a robotic taxi.
After the initial closing of its Series D funding round in 2022, the company achieved a valuation of $8.5 billion.
Huochebang, based in Guizhou, China, is an on-demand logistics network that connects commercial drivers with shippers in need of transportation across China. Huochebang and Yunmanman joined in 2017 to develop a platform with over 4 million trucks and no plans to slow down anytime soon.
Huochebang is predicted to expand significantly as consumers demand more online, faster delivery, and coverage across China.
Shannon Artificial Intelligence
Startup
Shannon.AI
Founders
Jiwei Li
Founded
2017
Headquarters
Haidian, Beijing, China
Shannon.AI- Best Startups in China
Shannon.AI is a financial artificial intelligence business that employs algorithms to evaluate, extract, and integrate vast financial data. It was founded in 2017. Shannon Technology promotes a new natural language-based information interaction paradigm that allows investors to get the information they want faster, more intuitively, and precisely. The company’s headquarters are in Beijing, China.
Intellifusion
Startup
Intellifusion
Founders
Ning Chen, Dihong Tian
Founded
2014
Headquarters
Shenzhen, Guangdong
Intellifusion – Best Startups in China
Intellifusion was created in 2014 and is a visual intelligence AI firm providing solutions for public safety, social governance, new business, AIoT, and other disciplines based on their computer vision technology. The headquarters of Intellifusion is located in Shenzhen, Guangdong.
IntelliFusion has successfully secured a total of $287 million in funding across five funding rounds. Its inaugural funding round took place on May 1, 2015, while its most recent funding round was a Series D round on September 28, 2020, raising an impressive $147 million.
Intellifusion is on track to follow in the footsteps of a slew of AI unicorns that have forged close ties with China’s municipal, regional, and national governments.
Hui’an Jinke, like Shannon.ai, uses AI for a different reason than many other Chinese AI unicorns. The startup, which was formed in 2017, uses artificial intelligence to manage and mitigate risk.
Fraud Monitoring, Operational Risk Identification, and Anti-Money Laundering are AI/ML improved products.
In 2018, the firm secured a Series A round of funding.
Video++
Startup
Video++
Founders
William Joy
Founded
2014
Headquarters
Shanghai, China
Video++ – Best Startups in China
Video++, founded in 2014 and provides streaming services and advertising solutions to 65 percent of China’s leading video platforms, reaches over 500 million unique video users each month.
Video++ uses AI to insert adverts in post-production material, in addition to more standard streaming and advertising services.
Video++ most recently received $105 million in Series C financing in September 2018 and has amassed a total of $165.5 million in funding through five funding rounds.
Miss Fresh
Startup
Miss Fresh
Founders
Xu Zheng
Founded
2014
Headquarters
Beijing, China
Miss Fresh – Best Startups in China
Meiri Youxian/MissFresh has reaped significant benefits from the epidemic.
In 2020, the firm, which was launched in 2014, will get two rounds of finance. In July 2020, they secured $495 million in a Series E round, and then in December 2020, they raised an additional $306 million from investors with a total of $1.7 billion to date.
Although MissFresh is sometimes compared to Instacart, its business strategy is more akin to Farmstead. The corporation has 1,500 smaller distribution centers closer to residential areas, which allows for speedier delivery and cheaper cold-chain expenses.
Starfield
Startup
Starfield
Founders
Kiki Wu
Founded
2019
Headquarters
Shenzhen, China
Starfield – Best Startups in China
Starfield is a fast-growing alternative meat brand in China, founded in 2017 in Shenzhen. From August through October 2021, the firm received $10 million in a Series A round followed by $100 million in Series B in 2022.
Starfield has become China’s fastest-growing plant-based brand. Starfield intends to establish a facility in Shenzhen with this fresh capital to continue its research and development.
In addition, through working with eateries, the firm hopes to market its products to Chinese consumers. Despite the pandemic, it started partnering with many food service firms in 2019 and has created several new collaborative connections in 2020.
Geek+
Startup
Geek+
Founders
Yong Zheng, Hongbo Li, Kai Liu, Xi Chen
Founded
2015
Headquarters
Beijing, China
Geek+ – Best Startups in China
Geek+ was established in 2015 to assist warehouse and industrial operators in meeting the rising demands of eCommerce. Nike, Toyota, DHL, and Dell are among the firms that use the company’s logistics solutions today.
The business has installed over 10,000 logistics robots for a new generation of automated facilities.
In June 2020, the firm secured $50 million in a Series C expansion round. The company secured a remarkable $100 million in Series E1 funding, pushing its valuation beyond the $2 billion mark.
With offices in Germany, Japan, Hong Kong, Singapore, the United Kingdom, and the United States, the corporation is headquartered in Beijing.
Chehaoduo
Startup
Chehaoduo
Founders
Mark Yang
Founded
2015
Headquarters
Beijing, China
Chehaoduo – Best Startups in China
Chehaoduo is an online marketplace for secondhand cars that connects sellers and buyers. The Beijing-based startup was formed in 2015 and has raised an incredible $3.9 billion in the last six years, with the latest funding from a Series E round in June 2021.
Conclusion
Developed Asian nations are becoming full-fledged Silicon Valley rivals, and they have several advantages. The size of the potential user market to state business assistance and other regional benefits is excellent since competition fosters company development and new ideas and startups contribute to further human progress.
FAQs
Which are the top startups in China?
Some of the top startups in China are:
Yipin Fresh
ByteDance
WeRide
Zuoyebang
WeDoctor
Pony.ai
Huochebang
Shannon Artificial Intelligence
Intellifusion
Jinke Hui’an
Video++
MissFresh
Starfield
Geek+
Chehaoduo
What are the top Chinese startups operating in India?
Some of the top Chinese startups operating in India are:
China has been one of the world’s leading economic powers for almost two millennia. Until the late 1700s, it accounted for approximately one-quarter of the global GDP (Gross Domestic Product). By the time the industrial revolution was beginning in Great Britain by 1820, China was accounting for approximately one-third of the global GDP. These numbers factually reflected that China’s GDP at the time was six times as large as that of Great Britain.
Under the leadership of Deng Xiaoping, the Chinese government began introducing economic reforms in the year 1978 which resulted in the country becoming the fastest-growing major economy in the world. China registered an average growth rate of 10% over the next 30 years. Its sustained growth rate could be attributable to its export relationships, its large-scale manufacturing sector, and the country’s low-wage workers.
As one of the largest economies in the world, the country was successful in avoiding the global economic downturn due to the Covid-19 pandemic. However, in the year 2022, it posted one of its worst economic performances in decades because of the pandemic.
As of the year 2020, the national debt of the People’s Republic of China stood at an approximate amount of USD 7 trillion. This amount was equivalent to around 45% of the country’s GDP. The off-balance sheet debt of Chinese local governments, as per the Standard & Poor’s Global rating, was amounting to approximately USD 5.8 trillion while the International Monetary Fund said that the debt owned by the state-owned industrial firms was another 74% of the total country’s GDP.
According to Forbes, at the last measure, China’s debt of all kinds – public and private and in all sectors of the economy – amounted to a staggering USD 51.9 trillion, which is almost three times the size of China’s economy. Since the time Beijing first began tracking such statistics, twenty-seven years ago, this amount is the highest level of debt recorded.
The Beijing-backed National Institution for Finance and Development has stated that local authorities are set to issue a new debt amount of approximately USD 570 billion for the next year. This precarious situation of China is further highlighted by its comparison of relative debt to the United States. By mid of the year 2022, China’s national debt was 40% higher than that of the US.
National debt refers to the outstanding financial obligation of a particular country and what the central government owes to its creditors. The amount of the national debt of a country represents the past annual budget deficits. It is incurred especially to maintain government services during a recession when tax revenues decrease and government expenditure increases. Government debt is also created to cover costs from major shocks like a war, a public health emergency, or even a severe economic downturn.
Reasons for China’s Increasing National Debt
In previous years, China had successfully managed to keep its national debt lower than the US. This was possible due to the policies that were introduced by the state. The national debt of China had usually been held by domestic institutional investors, in particular state-owned banks. The investment and lending practices of these banks supported government policies like issuing bonds for infrastructure investments and insurance companies.
However, in the last few years, the country has seen a consistently increasing national debt that has included government spending on development projects and slowing economic growth. The global financial crisis in the face of the covid-19 pandemic caused the state to inject more credit into government-owned enterprises. At the same time, Chinese authorities eased the way for companies to secure loans to restart the economy. This further increased the burden of debt on the country’s economy.
China’s Local Government Debt Crisis Explained
Impact of High National Debt on the Chinese Economy
China’s financial system is not entirely transparent. This is given rise to concerns about the amount of actual debt that is being held by local governments and state-owned enterprises. Other related concerns are also highlighted like the risks associated with high-level borrowing and the overall debt of the country. Having said that, China is hopeful of ambitious economic growth due to its heavy investment in infrastructure projects. The economy has also taken proactive steps towards a consumption-driven growth model, although, it is yet to yield results.
Despite the shadow that is cast on China due to its growing national debt, analysts remain optimistic about the country’s long-term prospects. They remain positive that although this will slow China’s ascent, it won’t derail the economy entirely.
Conclusion
The debt situation of China is set to grow further. There are two notable and significant issues impacting it. One is its demographic challenge with over 60% of the country’s population either retired or nearing retirement age. The second big concern is the country’s shortage of young workers which supports a growing aging population due to its decades-long one-child policy. This situation within the country is likely to continue for the foreseeable future and the country will rely heavily on debt to fulfill its social security pension obligations.
FAQs
What is the current debt of China?
As of the year 2020, the national debt of the People’s Republic of China stood at an approximate amount of USD 7 trillion.
What is National Debt?
National debt refers to the outstanding financial obligation of a particular country and what the central government owes to its creditors. The amount of the national debt of a country represents the past annual budget deficits.
The long-term population pattern of China went through multiple cycles peaking with each imperial power and then being decimated due to wars and barbarian invasions. The percentage share of the world of China’s population has been at an average of 26% with a standard deviation of 6%. This percentage share has seen a downward slide in the late 20th and early 21st century.
As per the recent numbers by China’s National Bureau of Statistics, the country’s total population has declined by 850,000 people in the period between 2021 end and 2022 end. China’s population exceeds 1.4 billion people and the reduction number is not very big. However, it does indicate a concerning demographic shift of the elderly population outnumbering the young. An assistant professor of international social and public policy at the London School of Economics, Shuang Chen said – “What is concerning is not so much the decline in sheer size, but rather a rapid aging and the socioeconomic challenges of adapting to the rapid change in population structure.” This decline in China’s population has always been a very real possibility. What remains unclear is the role that the covid-19 pandemic might have played in pulling the timeline closer.
If this trend is allowed to continue without interference, then by the year 2035, more than one-third of China’s current population might be above the age of 60 years putting a heavy strain on the country’s infrastructure and resources.
After World War II, China’s population witnessed a rapid increase. The country’s population which was at 540 million in 1949 grew to 969 million in 1980, notwithstanding the decline it experienced in 1961 when China was in the grip of the four-year famine following the failed ‘Great Leap Forward’ campaign. However, its growth spurt was also putting a strain on the country’s limited supply of resources. Hence, the then Communist Party leader, Deng Xiaoping instituted the one-child policy in 1980. It remained in effect for more than 35 years and it was only in 2016 that the limit was expanded to 2 children. In the year 2021, the limit was further expanded to three children. This social experiment initially achieved its goal as fertility rates steadily decreased. Advances in the field of medicine also increased life expectancy from 57 years in 1970 to 78 years in 2020.
Another reason for the population decline is the high living and education costs despite the rapidly growing economy of the country over the last few decades. In the year 2021, China’s unemployment rate for the younger generation was as high as 16.7%. One more strong contributing factor has also been the strict anti-Covid measures which have lowered the birth rate.
According to the Shanghai Academy of Social Sciences, the population is expected to decrease by 0.49 per thousand in the present year. This is the first decline the country is witnessing since the famine. The academy has also predicted an annual average decline of 1.1% after 2021. It estimates that China’s population in 2100 will drop down to 587 million – less than half of what it is today. This will also lower the annual average of China’s working-age population setting the stage for lower economic growth.
Total population of China from 1980 to 2022 with forecasts until 2027 (in millions)
Effects Of Declining Population
As one of the top five global economies, any occurring event in China has worldwide repercussions. Yi Fuxian studying Chinese demographics at the University of Wisconsin-Madison said in an interview – “China’s labor force engaged in manufacturing is starting to shrink, meaning higher manufacturing costs in China will lead to high prices and high inflation in the US and EU.” Secondly, the decline can severely affect its stance as a global superpower.
Internally, a population lowering in number and simultaneously growing older will also reduce the country’s tax revenue and contributions to pensions affecting the extent to which the government can provide for its citizens. Even the country’s transition to a middle-income economy has become one of its great concerns. China will become old before becoming rich.
What China’s Shrinking Population Means For The Global Economy?
Action Plan To Improve Population
As concerning as the situation of a declining population is today, it is not inevitable, as per some demographers. Stuart Gietel-Basten, a professor of social science at Khalifa University in Abu Dhabi says – “It would only be a crisis if you carried on regardless. There are things the government can do to address the problem and it has already started to try.”
In his speech at the National Party Congress in October 2022, President Xi Jinping said – “China will improve the population development strategy. We will establish a policy system to boost birth rates, and bring down the costs of pregnancy and childbirth, child-rearing, and schooling.”
The country’s government has already proactively rolled out programs to ease these burdens on its citizens, including offering cash incentives for a third child.
Conclusion
While being a considerable problem for China in the coming years, it does not seem insurmountable. However, the obstacle is considered taking into account the imbalance between the male and female genders. It remains to be seen how the government’s policies help the country to successfully navigate the threat of a declining population.
FAQs
What are the main factors contributing to China’s population decline?
The main factors contributing to China’s population decline are low birth rates, aging population, and high living and education costs.
What measures has the Chinese government taken to address the population decline issue?
The Chinese government has implemented several measures to address the population decline issue, including:
Chinese investors have had a significant presence in the startup ecosystem In India. After the recent dispute at the Indo-China border, the Indian public is actively participating in the #BoycottChineseProducts movement. This has also resulted in the boycott of the services and products offered by different startups that have received investments from different Chinese companies.
However, there are many different Chinese companies that have invested huge amounts in many startups across the country. Many startups in India have been receiving investments worth millions of dollars from different Chinese companies that wish to establish themselves in the Indian market. And they have been quite successful in this by investing in big and popular startups and companies in India.
In this article, we discuss the top Chinese investors in the Indian Startup Ecosystem and their investments.
Alibaba Group is probably the topmost Chinese company that has invested in many Indian startups over the years, this multinational tech company was founded in the year 1999. Some of the biggest Indian startups and companies in which The Alibaba Group has invested include the Online Food Ordering and Delivery startup Zomato, Payments startup PayTM, and e-commerce startups such as Paytm Mall and SnapDeal and online grocery Store BigBasket.
Startup Name
Startup Founder
Amount
BigBasket
Hari Menon, VS Sudhakar and Vipul Parekh
$246 million
PayTM
Vijay Shekhar Sharma
$1.1 billion
Snapdeal
Kunal Bahl and Rohit Bansal
$150 million
Zomato
Deepinder Goyal
$512 million
Tencent Holdings
Tencent Holdings, or simply Tencent, is another Chinese technology and entertainment conglomerate that has hugely invested in Indian startups. It was founded in the year 1998. This company has invested in many different startups and companies such as PolicyBazaar, e-commerce store Flipkart, Online Taxi Booking startup Ola and Food Delivery Company Swiggy.
Startup Name
Startup Founder
Amount
MX Player
Karan Bedi
$110 million
PolicyBazaar
Yahishis Dahiya, Avaneesh Nirjar and Alok Bansal
$150 million
Ibibo
Ashish Kashyap
Undisclosed
Doubtnut
Tanushree Nagori and Aditya Shankar
$15 million
Swiggy
Sriharsha Majety, Rahul Jaimini and Nandan Reddy
Undisclosed
Flipkart
Binny Bansal and Sachin Bansal
Undisclosed
Byju
Byju Raveendran and Divya Gokulnath
$40 million
Hike
Kavin Bharti Mittal
$175 million
Dream11
Bhavit Sheth and Harsh Jain
$100 million
Ola
Bhavish Aggarwal and Ankit Bhati
$400 million
Fosun Group
The Fosun Group has been investing in Indian startups for a long time, keeping its main focus on Tech-based startups. It has invested in many startups including Delhivery, LetsTransport and others. Instead of investing large in big startups like the others that are already mentioned, Fosun Group mainly focuses on small tickets for relatively small startups. The group has its presence all around the world.
Startup Name
Startup Founder
Amount
MakeMyTrip
Deep Kalra
Undisclosed
Delhivery
Sahil Barua, Suraj Saharan and Kapil Bharati,
$30 million
LetsTransport
Pushkar Singh, Sudarshan Ravi and Ankit Parasher
$12 million
Shunwei Capitals
Shunwei Capitals has invested in many startups over the past years. It is a venture capital firm situated in Beijing, China. It was founded in 2011 by Lei Jun. In November of 2008, they raised around 1.2 billion dollars for investments in Indian startups.
Startup Name
Startup Founder
Amount
ZestMoney
Lizzie Chapman and Ashish Anantharaman
$13.4 million
Vokal
Mayank Bidawataka and Aprameya Radhakrishna
$6.5 million
Hillhouse Capital Group
Hillhouse Capital Group is one of the most famous private equity firms in Asia. It has invested in some well-known startups in India. The company was founded in the year 2005 by Zhang Lei.
Startup Name
Startup Founder
Amount
Udaan
Amod Malviya, Vaibhav Gupta, Sujeet Kumar
Undisclosed
Swiggy
Sriharsha Majety, Rahul Jaimini and Nandan Reddy
Undisclosed
Conclusion
China has maintained a firm grip on the Indian market by funding and investing in various startups and companies all across the country. Even after the tension regarding the Indo-Chinese dispute, Chinese companies are associated with some Indian startups. Some of the most popular and well known Indian startups got funds from these Chinese companies and with their promising future, more and more Chinese companies are looking forward to investing in them and other startups
FAQs
Have Chinese companies invested in Indian companies?
There are multiple Chinese companies that have invested in Indian startups.
Is BYJU funded by China?
Chinese conglomerate Tencent Holdings has invested in the Indian ed-tech startup Byju.
