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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 would 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. US Bill Would ‘Turn Off Tap’ for Tiktok Data to China, Lawmakers Say

A bipartisan group of six senators and two members of the House of Representatives introduced legislation on 14th June to protect Americans’ data from being used by US adversaries.

The bill is the latest in a series of proposals aimed at addressing concerns about the data of Americans using foreign-owned social media apps like TikTok. Senate Finance Committee Chairman Ron Wyden, a Democrat, said the bill “would turn off the tap of data to unfriendly nations, stop TikTok from sending Americans’ personal information to China, and allow nations with strong privacy protections to strengthen their relationships”.

2. TikTok to Spend Billions in Southeast Asia as E-Commerce Move Pays Off

TikTok’s chief executive Shou Zi Chew has said that the company would pour billions of dollars into Southeast Asia in the coming years, as a report showed its nascent venture into online shopping is paying off.

The popular video-sharing app’s e-commerce affiliate has gained a substantial market share in the region just a year after its launch. Chew said 125 million Indonesians comprised most the app’s 325 million Southeast Asian users every month and more than two million sell their wares on TikTok Shop in Indonesia, the region’s biggest economy and most populous nation. Users sell a range of tech, fashion, home-made products and other goods on the platform.

3. Amazon Excludes Chinese E-Commerce App Temu From Competitive Price Checks

Amazon is excluding its new competitor Temu from its price searching algorithm that checks if products sold on its platform are competitive with rivals, saying the site doesn’t meet its standards.

According to Amazon, Temu, an e-commerce marketplace that launched in September, does not meet its strict qualification requirements for Amazon’s fair pricing policy. That means some low-priced general merchandise on Temu, owned by PDD Holdings, could beat out prices offered by Amazon’s marketplace sellers.

4. Subway Seals Largest Franchise Deal Since China Debut

American sandwich chain giant Subway has made a momentous decision regarding its operations in the Chinese market. The company’s global headquarters had recently announced the signing of a new master franchise agreement with Shanghai Fu-Rui-Shi Corporate Development Co., Ltd.

Funded by a consortium of private investors including Asia Investment Capital, the agreement now stands as the largest in Subway’s history since its China debut and one of the biggest in the entire fast-food chain industry. The latest franchise agreement highlights Subway’s desire to find a more suitable trader for the mainland Chinese market, as it aims to further expand its presence and market size in the region.

5. iPhone 15 Series Starts Trial Production at Foxconn in Zhengzhou

Apple is expected to start receiving orders for the iPhone 15 series shortly after it is introduced. The new smartphone is expected to be popular, with sales likely reaching tens of millions in its first weeks. To meet this demand, Apple has begun trial production of the iPhone 15 series at Foxconn’s Zhengzhou plant in China. The testing phase is expected to be brief, and mass production is scheduled to begin before the end of this month.

Apple is reportedly targeting a stocking level of 85-90 million units for the iPhone 15 series. The Pro models are expected to make up the majority of those units. In order to meet the production and supply needs, Foxconn has increased the signing bonuses for new employees. In addition to Foxconn, Shenzhen Luxshare Precision will also serve as a second supplier for the new series.

6. TikTok's '30 Days of Gaming' Showcase Event to Spotlight the Gaming Community

TikTok is set to honor the gaming community this month by hosting a series of live broadcasts, events, and activations as part of its 'Gaming on TikTok' event. Throughout June, TikTok will partner with various gaming entities to provide coverage of major gaming events such as Summer Games Fest and the upcoming Xbox showcase. Given gaming's significant impact on online culture, it's no surprise that TikTok actively embraces gaming-related trends and content that align with its unique presentation format.

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 the June report, click here.


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