10 Interesting Things from China Internet Report

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Given strong e-Commerce trends in China, let’s explore interesting behavioral patterns among their internet users.


1. The number of Chinese internet users has tripled that of in the U.S. and the difference is consistently trending upwards.

While there are estimated to be 772 million internet users in China, there are only 292 million in the U.S. The trend is expected to rise in the future as internet users in China currently account for only 55% of the entire population while the proportion is already 89% in the U.S.

2. Beijing is the hub of technology-based startups.

While large technology-based companies are located in Shenzhen, a group of startups are opting to conglomerate in Beijing, 31 of which are interesting companies while only 11 are in Shenzhen.  Anyone looking for a partner should go straight to Beijing.

3. Internet giants have expanded into many businesses.

The three major Chinese giants, namely Baidu, Alibaba and Tencent, have expanded into multiple areas ranging from web streaming to automated cars, both in the form of internal development and investments in almost every startup sectors.

4. Government policy still has strong influence on online business.

Government agencies are constantly keeping a close watch on internet users. Suspicious activities such as the use of crypto-currency for commercial purposes, posting of improper comments and topics of discussion can be removed overnight should the government deem inappropriate.

5. Spread of online shopping to retail shops

More and more retail shops are giving priority to online shopping.  In many, customers can scan for product details with their smartphones and shopping carts can lead them to the shelves with desired products.  Otherwise, customers can select products through the app and wait for the package to be delivered to their home.

6. The Chinese prefer shorter clips.  

More than 600 million people in China, or 80% of the total internet users, use applications to view short clips.  In 2017, the number of Chinese internet users who spent time watching these clips tripled in comparison with the year before.

7. Mini-app in WeChat has become a top hit among the Chinese.

WeChat offers a wide range of sub-programs which occupy no more than 10 megabytes of space. There are around one million programs currently available on WeChat that supposedly reach 400 million viewers per day.   

8. The Chinese government is intensifying AI development to be on a par with the U.S.

The government’s target is for China to become world AI leader by 2030.  It also plans to develop the technology through data collected from legacy domestic systems such as face recognition which can be used for other applications.

9. China smart speakers has not been as successful as it should.

With more than 100 companies manufacturing wireless smart speakers in China including by the three giants above, altogether merely 350,000 pieces were sold domestically in 2017.  On the contrary, as many as 25 million of them were sold in the U.S.

10. China has become the world’s biggest market for games.

Total sales of games from China makes up one third of the entire global market for games.  The second biggest is the U.S.  Market leaders are the two giants, Tencent and NetEase, both of which enjoy a 60% domestic market share.              


Compiled by BLOG.SCGLogistics

Reference and picture credits: abacusnews.com, freepik.com

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