China Digital Digest Weekly: Exploring the Chinese Digital Landscape

Hi folks, we are back with our weekly edition of China’s Digital Digest, wherein we bring you weekly updates on China’s digital space. The report takes a quick glance at China’s complex and rapidly evolving social media landscape by providing updates on the latest happenings across the social media industry. Here are the major highlights of the report.

1. Alibaba Teams Up With Social Media Platform RedNote in Fresh Ecommerce Push

https://www.reuters.com/business/retail-consumer/alibaba-rednote-tie-up-china-e-commerce-competition-intensifies-2025-05-07/

Alibaba Group Holding is expanding the reach of its primary online marketplaces, Taobao and Tmall, through a collaboration with popular Chinese social media platform RedNote, known on the mainland as Xiaohongshu, which translates to “little red book”.

The cross-platform collaboration will enable merchants on the two Chinese e-commerce sites to embed product links directly in social-media posts, according to a joint announcement by Taobao and Tmall Group (TTG), Alibaba’s domestic e-commerce business unit, and Shanghai-based RedNote.

2. Alibaba’s Joe Tsai: AI Set to Transform Operations in Next Five Years

https://completeaitraining.com/news/alibaba-chairman-joe-tsai-ai-will-drive-all-business-units/

Alibaba Group Holding’s operations will be driven by artificial intelligence (AI) in the next three to five years, in line with the e-commerce giant’s ambitious AI strategy, according to chairman Joe Tsai.

He said that he envisioned AI helping to grow the user base for its e-commerce and other businesses, according to video clips from the gathering, the authenticity of which was confirmed by Alibaba employees. Alibaba kicked off its two-day annual gathering to recognise family members and employees for their steadfast support. This year, AliDay celebrations are being held in the group’s offices in Hangzhou, Beijing, Shanghai, Guangzhou and overseas.

3. Alibaba Launches Taobao Fast-Delivery Service Ahead of Schedule

https://www.techinasia.com/news/alibaba-launches-taobao-one-hour-delivery-service

Alibaba Group Holding has said that its Taobao Instant Commerce initiative was introduced “ahead of schedule”, according to its post on Weibo.

The new service – covering categories that include food, groceries, electronics and clothing – was designed as an upgrade to Alibaba’s original local delivery operation, with orders handled by food delivery unit Ele.me. Alibaba’s early introduction of the new Taobao service – targeting less than an hour to fulfil online orders of food and consumer items – reflects heightened domestic demand for efficient and affordable delivery, which has become a vital element of urban life in China.

4. Alibaba, JD.Com and ByteDance Prepare For 618 Shopping Festival Next Week Amid Price War

https://beijingtimes.com/business/2025/05/09/e-commerce-giants-gear-up-for-intense-618-shopping-festival-amid-economic-slowdown/

Alibaba Group Holding, JD.com and ByteDance’s Douyin are preparing their campaigns for 618, China’s second-largest online shopping festival, as major e-commerce players gear up for battle in a nationwide price war amid weak consumer spending.

The three companies each announced they would start discounts next week for the event, which now spans weeks but retains its original June 18 name. Taobao and Tmall Group (TTG), Alibaba’s domestic e-commerce unit, said the first stage of its 618 sales would begin Tuesday evening and run through May 26, with a three-day presale period followed by 10 days of direct sales.

5. Alibaba Offers 100 Million Free Drinks As Instant Deliveries Hit Milestone

https://doonwire.com/category/news/alibabas-100-million-free-drinks-promotion-celebrates-instant-delivery-milestone-2025050603

Chinese e-commerce giant Alibaba Group Holding, less than a week after launching an on-demand delivery service, has achieved an early win with daily orders reaching 10 million during one of the company’s largest promotional campaigns.

Alibaba announced the milestone just days after rival JD.com, which ventured into food delivery in February, said its daily orders reached 10 million on April 22. Continuing its campaign, Alibaba’s Taobao, the largest shopping platform in China, announced it would offer 100 million free drinks – including milk tea and coffee – to users of its new Taobao Instant Commerce service, which launched on April 30.

6. Alibaba Breaks Down Barriers as Ecommerce Giant Focuses on Core Priorities

https://www.asiabusinessoutlook.com/news/alibaba-ceo-eddie-wu-urges-shift-back-to-entrepreneurial-spirit-nwid-8719.html

Eddie Wu Yongming, Alibaba’s CEO, has told employees that the company would mobilise at full strength and concentrate our efforts on a few core strategic priorities, with key initiatives driven jointly by multiple businesses, according to an internal memo.

The Hangzhou-based technology giant co-founded by Jack Ma 26 years ago in a flat started allowing employees from different business groups to communicate with each other via an internal website, according to Alibaba employees who have access to the website. The remarks by Wu, and the internal changes, came ahead of Alibaba Day on May 10, an annual gathering of the company’s employees to build a sense of community and recognition within the group. This year, Alibaba has recreated in its campus the flat where Ma launched the company, as a pilgrimage site for employees.

7. EU Fines TikTok €530 Million for China Data Transfer

https://www.theguardian.com/technology/2025/may/02/tiktok-fined-530m-for-failing-to-protect-user-data-from-chinese-state

TikTok was hit with a massive EU fine of €530 million (US$600 million), accused of sending personal data of Europeans to China and failing to guarantee it was shielded from access by Chinese authorities.

The Chinese-owned social media giant, which is also in the crosshairs of the United States, acknowledged during a probe that it has hosted European data in China, contrary to a previous denial, according to Ireland's data protection watchdog. One of the largest fines ever imposed by the authority followed a probe into the lawfulness of data transfers by TikTok.

8. Douyin Teams Up With Bazaar Pets For May Day Pet Photoshoot

https://daoinsights.com/news/douyin-teams-up-with-bazaar-pets-for-may-day-pet-photoshoot/

As the May Day holiday begins, Douyin Shop has partnered with Bazaar Pets to unveil a delightful workplace-themed photoshoot starring pets. In a charming twist, furry friends are dressed in professional attire and posed in office settings—from meeting rooms and tea corners to desks—showcasing their own version of the 9-to-5 grind.

Adding to the fun, popular pet influencers and their companions have joined livestreams as “Product Experience Officers.” They test and present items like pet food, smart gadgets, and stylish outfits, giving viewers a firsthand look at each product’s practicality and charm.

9. Aesop to Close First Mainland China Store

https://www.globalcosmeticsnews.com/aesop-to-shut-first-mainland-china-store-after-less-than-three-years/

Aesop has announced that it will shut down its Dongping Road store in Shanghai—its first location in mainland China—after May 10.

The store opened in November 2022, making its closure come just two and a half years later. Aesop told Beijing Business Today the decision was due to the lease expiring. This marks the brand’s first store closure in China. Even before being acquired by L’Oréal in 2023, Aesop saw strong growth in Asia, with the region accounting for half of its global sales. China, in particular, was its fastest-growing market. Since the acquisition, Aesop has ramped up expansion, opening roughly one store per month. It now runs 21 stores across China (including airport locations), with the highest number in Shanghai.

10. JD.Com Expands Its Offline Presence With First JD Mall in Beijing

https://en.jiemian.com/article/12741430.html

JD.com has soft-opened its first offline JD Mall in Beijing for a week, starting just before the May Day holiday.

The mall itself is located near the Haihutun station on Line 8 of Beijing Subway, in the Dahongmen (大红门) area in South 3rd Ring Road, known for its apparel wholesale centres. With a whopping 70,000 square metres of space, it is by far the largest JD Mall. The mall is divided into 7 floors. Ground floor, of course, will host the roots of JD.com, consumer electronics and computers. It will have interactive touch points such as an AR smart watch try-on service and an e-sports experience.

11. Tariff Reprieve Gives Shein, Temu Time to Restock US Warehouses

https://www.cnbc.com/2025/05/13/shein-temu-find-temporary-reprieve-as-us-relaxes-tariffs.html

An agreement between the US and China to temporarily slash tariffs stopped short of reinstating the US “de minimis” duty exemption for e-commerce packages from China, but still gives online retailers like Shein and Temu a window to adapt their businesses.

The Chinese firms, which have taken market share from dollar stores and shopping-centre rivals to surge to among the top 10 downloaded apps in the US, would likely use the 90-day reprieve to bring in bulk shipments and restock their US warehouses, trade experts said. US President Donald Trump’s administration on May 2 ended the de minimis policy allowing packages worth less than US$800 ordered online from mainland China and Hong Kong to enter the US duty-free.

12. Luxury Labels Ditch Steep China Discounts to Rebuild Value

https://www.livemint.com/companies/news/luxury-labels-ditch-steep-china-discounts-to-rebuild-brand-value-11746739178298.html

Some luxury labels are pulling back from steep markdowns in China, seeking to rebuild an image of exclusivity to lure back wealthy shoppers whose spending is more immune to economic slowdown.

None of the products sold by Kering’s Balenciaga on Tmall, China’s dominant e-commerce platform, were discounted in the first quarter of this year – or even during China’s biggest annual online shopping festival in November – according to data consultancy Re-Hub. That is a marked contrast to the brand’s average discount of about 41 percent on Alibaba Group Holding’s Tmall during the same period a year earlier.

Wrapping Up

The vast and diverse nature of the Chinese Social Media space makes it incredibly challenging to keep a tab on the rapid developments taking place. However, China’s Digital Digest brings you all the latest updates from there to keep you abreast of all the evolving trends.

To delve deeper into the findings of our latest report, click here.