Technology in China in 2022

The main topic of 2020 was not the development of new technologies, but a change in the course of their development. The pandemic pointed to problems that should have been noticed much earlier – experts agreed on this in an interview with Tacnode. We asked them to share their observations on the development of technology over the past year under the banner of coronavirus, as well as to give their predictions for the near future.

In their opinion, China’s technology boom phase is coming to an end (and that’s a good thing). The Chinese have stopped blindly believing tech corporations (which is good again). Governments are paying more attention to the regulation of the technology sector. Questions have been brewing for a long time: the problem of monopolies, financial technologies, personal data protection. Resolving these issues will become one of the hot topics for controversy and discussion in 2021. For example, how can the government restrict group purchases of goods at wholesale prices to keep small businesses from going broke?

Today, the PRC has tense economic relations not only with the United States, but also with Australia, India, Japan and some EU countries. This affects access to the global market. Many expect Joe Biden’s rise to power in the United States to soften the relationship between America and China. Also, a certain optimism is inspired by the recently concluded trade deal between the PRC and the EU. Unfortunately, this happened after the recording of the interview, so it is not mentioned in the text. But no one expects a quick resolution of geopolitical problems. At first, the situation, on the contrary, may become even worse.

Hopefully 2021 will be healthier and more boring!

How has 2020 changed your views on the development of the tech market in China?

The consumer technology market is dead. In the new year, we should expect the development of sectoral markets, for example, healthcare or education. The get-rich-quick era is over, and for the best. Rapid financial growth distracted from many problems that no one wanted to deal with.

Western countries paid dearly for this lesson. Now companies should pay more attention to the distribution of finances and take care of employees. Management and organization methods will require rethinking.  But you will have to face the problems: many are unhappy with the 996 schedule (from 9 a.m. to 9 p.m. 6 days a week) and the negative economic impact associated with the increase in production scale.

– Lillian Lee, Cloud Developer, Chinese Characteristics Technology Newsletter

The rise in the value of tech stocks in 2020 came as an unexpected pleasant surprise. Some stocks (such as Bili Bili and Xiaomi) rallied as the market strengthened. And, for example, the electric car maker Nao practically froze operations a year ago, but in the end was able to stay afloat by following Tesla. Such companies now have sufficient funds to act more decisively in the new year.

– Elliot Zaman, host of the China Tech Investor podcast

I have become more skeptical about the “good intentions” and corporate social responsibility that some Chinese internet companies are chanting … Initiatives in rural e-commerce, food delivery, group purchasing are having a negative impact on Laogai lǎobǎixìng common people). I believe it is right to introduce additional regulatory measures: amendment of privacy laws, antitrust measures, and containment of the financial and technology sector.

– Ed Sander, Travel Guide, Founder of ChinaTalk.nl

I was quite surprised at how receptive the Chinese tech industry was to the decisions made in the United States. For decades, Beijing has been trying to reduce China’s dependence on American developments. It is necessary to try to protect this area from the influence of geopolitical differences. Even today, blacklisting or blocking by some other countries has a major impact on technology development in China.

Also, the issue of trust in Chinese companies from the West remains unresolved. Many countries are wary of modern Chinese developments such as 5G or cloud computing.

– Abitur Prakash, futurist, Center for Innovating the Future, Toronto

In general, China is increasing its technological capabilities, but fundamental developments (such as semiconductors) have not yet been adequately explored. Over the past two decades, the development of the Internet has brought a lot of innovations and modernized the consumption process. Now innovation has begun to creep into more fundamental areas. Here development will be more difficult and slower, but the results will be much more valuable.

– Ng Yilin, one of the founders of Yaqui Partners

The past year has had a major impact on the Chinese tech sector. The growing geopolitical tension between China and the West has led to a rift in various technologies: 5G, AI and even social media. On the one hand, what happened may push the development of new innovative technologies within China. On the other hand, the lack of cooperation with the outside world can complicate the development of the Chinese technology industry as a whole.

– Flex Yang, Managing Director of Babel Finance

What lessons has the pandemic taught to China’s tech sector?

The coronavirus has debunked common misconceptions and has brought the introduction of new technologies closer: electric transport, self-driving cars, and electric bikes. Large cities that have survived the pandemic are changing the way people move.

– Tu Le, Founder and CEO of Sino Auto Insights

In terms of technology, I believe the pandemic has the most impact on healthcare and data collection through “health codes”. During the quarantine, huge layers of personal information were collected, and its security depends on algorithms unknown to the information provider. This is troubling.

– Liu Weidie, Writer and Graduate Student at the School of Management in Xi’an

The pandemic has opened up a whole host of new opportunities. The surge in popularity of some of them – insane livestreams or subsidy wars in the area of ​​group purchases – can be called real fever. It will not last long, but while many panicked over the pandemic, some investors looked at the growth of the charts with pleasant surprise.