China Digital Digest Weekly: Exploring the Chinese Digital Landscape
- ClickInsights
- 2 hours ago
- 4 min read
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. Second Generation Doubao AI Phone Arrives
The second-generation Doubao AI phone, developed jointly by ByteDance and ZTE's Nubia brand, is expected to launch within the month, according to industry sources. After the first-generation Nubia M153 demonstrated the concept of an AI phone that can perform actions on behalf of the user, the new model aims to solve the two biggest challenges: user privacy and multi-agent collaboration.
The first-generation Doubao phone marked a breakthrough by moving beyond passive AI assistance to active AI operation of the phone itself. The second generation must evolve from an engineering prototype into a mass-production device that ordinary users can trust with their personal data. Hardware details remain limited, but the device is widely expected to feature Qualcomm's fifth-generation Snapdragon 8 Elite platform, whose key upgrades include on-device learning, real-time perception, personal knowledge graphs, and Agentic AI capabilities. Rather than simply chasing traditional smartphone specs, the device is rumored to be architecturally redesigned around AI agent needs, with enhanced NPU performance, larger batteries, improved thermal management, and dedicated AI input keys.
2. Alipay Unveils AI-Powered Revamp
Ant Group is testing an AI-powered version of Alipay, marking the most radical overhaul in the payment platform's nearly 20-year history. Unlike simply embedding an AI assistant into the existing app, the new version allows users to switch with one click into an entirely conversation-driven Alipay interface.
The project, internally codenamed "Bao Plan" and led by Alipay Business Group President Li Jun, has been under development with the highest level of secrecy at Ant Group. The revamped Alipay shifts the fundamental user interaction model from "service as app" — opening individual mini-programs to complete tasks — to "service as conversation," where a single natural language or voice command handles user needs. The product team went through more than 100 design iterations before settling on a dialogue-centric interface, driven by the conviction that natural language has become the mainstream AI interaction paradigm.
3. DeepSeek Raises $7.4 Billion in Series A Round
DeepSeek has completed its first-ever external fundraising round, raising over RMB 50 billion (approximately $7.4 billion) in what is the largest single funding round in China's AI industry history. The deal marks the prominent AI company's formal opening to outside capital after nearly three years of zero external equity financing.
According to reports, founder Liang Wenfeng personally contributed RMB 20 billion (about 3 billion) of his own capital, accounting for approximately 40 percent of the total and making him the single largest investor. Tencent invested RMB 10 billion (around $1.5 billion), and CATL and its affiliates invested approximately RMB 5 billion (almost $740 million). The financing structure breaks conventional business norms. Except for the National AI Industry Investment Fund, external investors' capital does not directly enter DeepSeek's corporate entity. Instead, funds flow into a limited partnership managed by Liang Wenfeng as General Partner, which then injects capital into DeepSeek. All external investors receive zero voting rights, a five-year lock-up period with no secondary market liquidity, and no board seats or protective provisions.
4. Shein to be Ousted From Paris Store After Other Brands Flee
French department store BHV Marais will end its partnership with Shein after its operating company said that it was selling the Paris outlet following criticism of its deal with the Asian e-commerce giant.
La Societe des Grands Magasins (SGM), owner of the historic BHV Marais, which sits opposite Paris City Hall a few hundred meters from Notre-Dame cathedral, has sold the store to a group of executives, led by Karl-Stephane Cottendin, the group’s outgoing CEO, according to a statement from the company. Agence France-Presse reported that SGM sold the store at a loss. Cottendin, who publicly defended the decision to open a Shein store at BHV Marais last November, admitted seven months later that the decision was a “strategic error” and said Shein would “ideally” leave the store by Christmas.
5. Meituan Accused of Running Smear Campaign Against Alibaba
Meituan has been accused of paying merchants to provide negative information about a major rival, according to an investigative report by Shanghai Securities News. The controversy dates back to October 2025, when Beijing’s market regulator launched a campaign to curb unhealthy competition and price wars in the food delivery sector.
The newspaper reported that Meituan paid merchants to report alleged irregularities by Alibaba Group Holding’s Taobao Shangou, while engaging in similar practices itself. In one case, a dumpling restaurant received 5,000 yuan (US$738) for disclosing that Taobao Shangou had reduced the listed price of one of its dishes without the restaurant’s consent, according to the report, which cited the restaurant’s manager. The revelations come as competition in China’s food delivery market intensifies and regulators step up scrutiny of industry practices. Just days earlier, police uncovered a coordinated smear campaign targeting Taobao Shangou and another major player, JD.com.
6. China Proposes Ban on ‘Irrational’ Food-Delivery Subsidies to End Price Wars
Chinese authorities have introduced draft regulations to crack down on the misuse of subsidies by food-delivery platforms, as Beijing seeks to rein in the sector’s intense competition.
The proposed rules, open for public comment until July 17, identify several practices that would be banned, including using subsidies to disrupt the market and selling goods at a loss, according to a statement from the State Administration for Market Regulation (SAMR). The draft regulations will ban platforms from using “long-term, large-scale” subsidies to hamper market competition or disrupt market order, according to the SAMR. Platforms will also be prohibited from forcing merchants to participate in subsidy activities or making them bear the associated costs. They would also be barred from using their relatively deep pockets to engage in monopolistic or unfair competition, and from pricing goods below cost.
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.
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