China’s Internet Landscape Explained: How it’s Reshaping the lives of 772m Internet Users

July 11, 2018
SCMP Updates
Abacus News, 500 Startups and South China Morning Post Release 2018 China Internet Report

HONG KONG, July 10, 2018 -- During the RISE international tech conference today, the 2018 China
Internet Report [ www.abacusnews.com/china-internet-report ] was released exclusively on Abacus,
a new media platform from the South China Morning Post (SCMP). Covering twelve industries, this
hundred-page report summarizes China’s dynamic internet industry for international readers.

China's internet is now ubiquitous across the country's industries and population, and it continues
to change and grow. The report includes key information about China’s internet landscape,
including lists of Chinese unicorns, the country’s top internet companies and most active investors,
and a side by side comparison of the internet population in China and the US. The report begins
with a summary of four overarching themes that captures the uniqueness of China's tech industry
growth over the past year. It then delves more deeply into 12 sectors of importance: ecommerce,
content & media, social & messaging, sharing economy, artificial intelligence, smart devices,
autonomous cars, blockchain, fintech, education, gaming and esports.

Here are some key takeaways from the report:
Chinese internet giants are doing everything: In China, it’s not enough to do one thing well
-- the internet giants have decided to do everything. BAT (Baidu, Alibaba, Tencent) have
exposure to most key sectors by either building in-house or through investment. BAT is also
growing beyond the domestic market; combined, the big three have had invested in 150
companies outside of mainland China.
Chinese internet companies are playing an important role empowering the country’s next
wave of development:
490K online shops are run by rural households and 55M rural
students are reachable by live-streaming classes.
China is a cashless society: China’s total mobile payment transaction volume hit $15 trillion
USD in 2017 with the Alibaba-Tencent duopoly dominating 92% of the market.
Retail digitization adds new form of O2O: Online grocery is expected to become a $30
billion USD business in 2018; major players like Tencent, JD, and Alibaba are all making
significant investments in new forms of online-to-offline (O2O) grocery stores.
Short video apps captured the most eyeballs in 2018: Over 230M people in China are
actively using Kuaishou, the country’s leading short video app; Douyin, China’s second most
popular short video app, was the most downloaded iOS app in Q1 2018 globally, beating
out YouTube, WhatsApp, and Facebook.
China remains the world's largest gaming market and is still growing: China captured
US$30.8 billion in gaming revenue in 2017, which is more than one-fourth of total global
gaming revenue. In China, more than 200M viewers tune in to esports via live streaming
each year. Top Chinese game streaming sites each have more active streamers than Twitch
has.
Artificial intelligence is one of the Chinese government's key priorities: Autonomous
driving, computer vision and voice intelligence are among the areas of focus.
Chinese people love cryptocurrencies, but the government doesn’t: A few Chinese
cryptocurrencies have reached over $1 billion in market cap. The Chinese government
wants to be a front-runner in blockchain technology, but has completely banned crypto
trading.

The annual report was introduced by 500 Startups in 2017. Featured exclusively this year on
Abacus, SCMP’s digital news brand focused on China tech, it offers comprehensive coverage of
China’s internet trends with insights from professional tech editors, and the summary microsite is
designed by SCMP’s award-winning infographics team.

“The China Internet Report provoked a massive response last year among the international
business and technology communities. This year, I am excited to partner with the Abacus and the
SCMP Tech team in our mission to help the world better understand China Internet landscape.”
said Edith Yeung, Partner and Head of China at 500 Startups.

“Abacus is all about unboxing China tech for the rest of the world, and this report fits that mission.”
said Ravi Hiranand, Executive Producer of Abacus. “China’s internet population is huge and its tech
sector is vast, but this report helps to break it down by giving you a curated look at key trends and
companies that you need to know.”

"The China Internet Report is the most in-depth and visually accessible deep-dive available to the
global audience," said Chua Kong Ho, SCMP's Technology Editor. "What sets it apart is that we are
marrying the first-hand industry knowledge of 500 Startups with original, on-the-ground reporting
from the South China Morning Post and Abacus."

The full report is available for free download on Abacus.

For more details and the full report, please visit www.abacusnews.com/china-internet-report .

ABOUT ABACUS NEWS

Launched in March 2018 by the South China Morning Post, Abacus offers an insider's look at the
China tech revolution, highlighting the key players, emerging companies, hottest gadgets, and
more through editorial and multimedia storytelling. Abacus is led by Ravi Hiranand, who joined
SCMP's editorial leadership from CNN.

ABOUT 500 STARTUPS

500 Startups is a venture capital firm on a mission to discover and back the world’s most talented
entrepreneurs, help them create successful companies at scale, and build thriving global
ecosystems.

CONTACT
For further information please contact:
communications@scmp.com

About South China Morning Post 

South China Morning Post is a leading global news company that has reported on China and Asia for more than a century. Founded in 1903, SCMP is headquartered in Hong Kong, where it is the city’s newspaper of record, with a growing correspondent staff across Asia and the United States.Its editorial teams are powered by emerging digital technologies to create innovative ways to tell Asia’s most important and compelling stories.

Against the backdrop of shifting discovery and consumption behaviours, SCMP reaches users across distributed media platforms including scmp.com, smartphone and tablet apps, social media and messaging platforms, as well as our flagship newspaper.  SCMP is also home to Abacus, a digital news brand focused on China's tech industry; and Inkstone, a daily news brief for those curious about China's growing impact around the world.


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