Hello and welcome back to TechCrunch’s China Roundup, a grasp of recent events shaping the Chinese tech landscape and what they mean to parties in the rest of the world. It’s been a tumultuous week for Chinese tech firms abroad: Huawei’s attaching pres from the U.S ., a big blow to U.S.-listed Chinese conglomerates, and TikTok’s high-profile brand-new boss.
Pottery tech abroad
Over the years, American investors have been pumping billions of dollars into Chinese houses listed in the U.S ., from beings like Alibaba and Baidu to surfacing musicians like Pinduoduo and Bilibili. That could change soon with the Holding Foreign Companies Accountable Act, a new bill overstepped this week with bipartisan support to tighten accounting standards on foreign corporations, with the self-evident target being China.
” For too long, Chinese corporations have ignored U.S. reporting standards, misleading our investors. Publicly rostered companies should all be held to the same standards, and this statement realizes commonsense changes to level the playing field and give investors the transparency they need to reach informed choice ,” said Senator Chris Van Hollen who introduced the legislation.
Here’s what the proposed regulations is about 😛 TAGEND
1) Foreign companies that are out of compliance with the Public Company Accounting Oversight Board for three years in a row will be delisted from U.S. stock exchanges.
PCAOB, which was set up in 2002 as a private-sector nonprofit corporation overseen by the SEC, is meant to inspect examines of foreign firms listed in the U.S. to prevent fraud and wrongdoing.
The rule has not sat well with foreign record houses and their neighbourhood regulators, so over age PCAOB has negotiated multiple agreements with foreign counterparts that allowed it to perform audit inspections. China is one of the few countries that has not been cooperating with the PCAOB.
2) The bill will also require public firms in the U.S. to disclose whether they are owned or controlled by a foreign government, including China’s socialist government.
The question now is whether we will see Chinese firms give in to the new regulates or be moved to bourses outside the U.S.
The Chinese firms still have a three-year window to figure things out, but they are getting more scrutiny already. Most recently, Nasdaq announced to delist Luckin, the Chinese coffee challenger that admitted to membership in fabricating $310 million in sales.
Those that do choose to leave the U.S. will probably find a warmer welcome in Hong Kong, attracting investors closer to home who are more acquainted with their businesses. Alibaba, for instance, come to an end a secondary listing in Hong Kong last year as the city began letting investors buy dual-class shares, a condition that initially prompted countless Chinese internet firms to go public in the U.S.
The long-awaited announcement is here: TikTok has pickedits brand-new chief executive, and taking the helm is Disney’s onetime head of video streaming, Kevin Mayer.
It’s understandable that TikTok would want a global face for its fast-growing world-wide app, which has come under inquiry from foreign governments over concerns of its data practices and Beijing’s possible influence.
Curiously, Mayer will likewise take on the role of the chief operating officer of parent company ByteDance. A closer look at the company announcement reveals nuances in the appointed: Kelly Zhang and Lidong Zhang will continue to lead ByteDance China as its chief executive officer and chairman respectively, reporting directly to ByteDance’s founder and world CEO Yiming Zhang, as industry analyst Matthew Brennan painfully pointed out. That signifies ByteDance’s China businesses Douyin and Today’s Headlines, the cash cow of the conglomerate, will remain within the purview of the two Chinese directors , not Mayer.
Huawei is in limbo after the U.S. swiped more limiteds on the Chinese telecoms material heavyweight, limiting its ability to procure chips from foreign foundries that use American technologies. The fellowship called the rule “arbitrary and damaging ,” while it admitted that the attack would impact its business.
As Huawei faces adversity abroad due to the Android ban, other Chinese telephone producers have been steadily making headway across the world. One of them is Oppo, which really announced a partnership with Vodafone to deliver its smartphones to the mobile carrier’s European markets.
The U.S. has extended sanctions to more Chinese tech firms to include CloudWalk, which focuses on developing facial approval technology. This necessitates all of the” four dragons of computer eyesight” in China, as the neighbourhood tech clique collectively announces CloudWalk, SenseTime, Megvii and Yitu, have landed on the U.S. entity list.
Pottery tech back home
China has a brand-new master plan to invest $ 1.4 trillion in everything from AI to 5G in what it dubs the” brand-new infrastructure” initiative.
The smartwatch maker is eyeing a translucent, self-disinfecting mask, becoming the latest Chinese tech firm to jump on the bandwagon to develop virus-fighting tech.
The TikTok parent bankrolled fiscal AI startup Lingxi with $6.2 million, tagging one of its first speculations for exclusively money returns rather than for an immediate strategic purpose.
The once-obscure video site for anime followers is now in the mainstream with a whopping 172 million monthly user base.
It’s part of the smartphone giant’s plan to conquer the world of smart-alecky dwelling manoeuvres and wearables.
Like Amazon, Alibaba has a big ambition in the internet of things.
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