As Celine Tang – CBBC’s Retail & e-Commerce Sector Lead – pointed out at the beginning of the session, China’s zero Covid restrictions have been relaxed for almost a year now, but this will be the first Spring Festival holiday where travellers have had enough notice to book a trip overseas during the festival. What’s more, restrictions on group travel for Chinese people have also been lifted in the interim.

The big catch? The UK’s decision to end its tax-free shopping scheme for international tourists back in 2021. In other words, where Chinese visitors were previously allowed to claim back the VAT on items purchased during their stay in the country, that is no longer the case. As a result, Tang explains, countries including France and Italy are now more popular destinations for Chinese shoppers, who favour splurging in Paris and Milan over London.

The burden, therefore, falls on UK businesses to present alternative reasons to choose Britain for a trip, since it has become clear that relying on tax-free shopping as Chinese people’s primary motivation is no longer an option.

The panel during the recent CBBC event about unlocking Chinese visitors’ spending power during Chinese New Year

One of the UK’s advantages is its strong education sector, with thousands making the trip to see their children who study here during major holidays, or using education research as an excuse to come and check out the country.

This is where Hainan Airlines comes in, says Peter Han, who points out that unlike other Chinese carriers, Hainan flies to multiple UK cities outside of London, including Manchester, Edinburgh and Dublin. Next year, the airline will double its frequency.

Since Hainan Airlines is also perceived to be a higher quality airline than the national carrier – with better in-flight food and entertainment, for starters – Alexander Graham points out that its passengers are just the type of client UK businesses should be targeting.

His company, Luxe Life, has devised a smart strategy to use the real estate on the back of everyone’s paper airline tickets, which previously went to waste, to target Chinese clients with advertising before they board their flights to the UK. Targeting Hainan Airlines’ clients “is a great chance to get to the end consumer,” he says, adding that fast conversion is key. “There’s a certain time of year when people feel like spending, to have fun and be frivolous, and now is the time to capitalise on that.”

Graham also says that Chinese New Year can also be a great time for brands to “go for it” when it comes to advertising and marketing to Chinese consumers, as it’s a gamble that he’s seen pay off in the past. “If in two weeks you can get a year’s worth of revenue, you’re really going to win,” he added.

So what exactly should brands be considering when targeting 2024’s Chinese traveller to the UK?

For Qumin’s Arnold Ma, it’s about tapping into trends that are popular right now in China and meeting consumers exactly where they are. When advertising, “hijacking what people are already talking about works really well,” he says, adding that this is far more effective than attempting to create a new conversation. And there are plenty of topics to draw on for inspiration, too – from coffee culture and people’s new-found desire to be “spiritual and connected”, to city walks, urbancore (an aesthetic based on imagery of urban life and urban streets) and mountaincore (an aesthetic based on outdoor activities like hiking and rock climbing).

If he could give one piece of advice to brands trying to reach Chinese visitors to the UK, it would be to use social media, which simply cannot be ignored. And if your company plans to engage creators and influencers in its marketing – which he also advises – don’t freak out if the content they come up with doesn’t make a huge amount of sense to you or isn’t exactly how you would do things: “Focus on what you’re good at as marketers, and let creators focus on what they’re good at – creating content,” he says, pointing out that it’s the influencers on the ground who know their audiences most intimately.

Qumin’s Arnold Ma presenting during the CBBC event

Ma also says it’s important not to simply advertise your products. For a market that grows more sophisticated by the month, that just won’t cut it: “Chinese consumers want content that will make them feel good,” he says. “That’s aspirational. That will make them laugh, or cry.”

Another potential trap when strategising a Chinese New Year campaign is relying on the idea that something being “made in the UK” carries the same weight it used to because this is no longer the case.

Finally, for those creating in-store or hospitality experiences and interacting with Chinese customers on the ground, simply being friendly, helpful and accommodating can make a huge difference, says Graham.

“Chinese travellers don’t always feel welcome, so if your brand is welcoming, you already have an advantage.”

The post Unlocking the Consumer Power of Chinese New Year appeared first on Focus - China Britain Business Council.

It’s hard to forget the photograph of a jovial Xi Jinping in a British pub, smiling as he sipped on a pint of beer alongside then-Prime Minister David Cameron. And yet, for most, such a photocall seems like a lifetime away – an incongruous blast from the past when relations with China were in a better place

David Cameron stepped down as prime minister in 2016, and the period in between has seen China and the UK grow further and further apart – not least because of a deadly global pandemic.

But while China may have pulled away from the UK, Cameron has not pulled away from China. In fact, in the last few years, the former prime minister has been a key figure advocating for the world to engage more with the country.

As he returns as Britain’s foreign secretary, we recap how Cameron has been involved with China over the years and why.

Why was Cameron’s tenure as PM considered the “Golden Era” of UK-China Relations?

David Cameron’s time in the UK government between 2010 and 2016 has been referred to as the Golden Era of relations between the UK and China because he repeatedly emphasised mutual benefits in trade, investment and cultural exchanges between the two.

Cameron led several high-profile delegations to China to boost economic ties, including efforts to increase Chinese investment in the UK and to promote British exports to the Middle Kingdom.

Huawei

According to The Guardian, in September 2012, Cameron welcomed Huawei’s founder Ren Zhengfei to Downing Street for a ‘fireside chat’ after it was announced the company would invest an additional £1.3bn in the UK. However, international opinion of the controversial telecommunications firm has since shifted, and by 2020 Boris Johnson’s government had banned Huawei from Britain’s 5G mobile communications network entirely, ordering operators to remove the firm’s technology by 2027.

Hinkley Point C

Perhaps the most controversial project during David Cameron’s tenure as prime minister was the Hinkley Point C nuclear power station. When Cameron’s government approved the participation of Chinese state-owned companies in the project – including CGN (China General Nuclear Power) and CNNC (China National Nuclear Corporation) – many weren’t happy about such critical infrastructure being part foreign-owned. Originally set to open this year, due to escalating costs and construction delays, the project still hasn’t been completed and is now scheduled to open in 2027.

The Silk Road Fund

In December 2017, 17 months after he gave his farewell address outside 10 Downing Street, it was announced that Cameron would head up a US$1 billion (£750 million) Chinese investment fund established to finance China’s BRI infrastructure projects. The state-endorsed fund didn’t involve taxpayers’ money, but rather was a joint endeavour by private financial institutions in both countries – and was lauded as a way to boost the UK’s global trade ties in a post-Brexit era.

A spokesman for Cameron said he was “very proud of his work launching the golden era between the UK and China with President Xi”, and that “in an effort to build on that work out of office, he wishes to play a role in the … fund that will invest in innovative and sustainable growth opportunities in both the UK and China to create jobs and further boost trade links.”

Though many criticised Cameron at the time, some still saw it as a smart move by the former prime minister. “The UK would have equal management powers in the new funds,” Bruno Maçães, senior fellow at the Hudson Institute and a former Europe minister of Portugal, wrote in Foreign Policy at the time, adding that it would bring the country “close to becoming a junior partner in the most significant geopolitical initiative of the next 50 years.”

The Port City Colombo Project

The Port City Colombo is a multibillion-dollar building project in Sri Lanka touted as the sort of metropolis that could one day rival Singapore or Dubai. Due to be completed by 2040, the project is being managed by the CCCC (or China Communications Construction Company).

According to Politico, the US-sanctioned Chinese company has already spent US$1.4 billion on the project, and in return, obtained the right to use 62 hectares of land on a 99-year lease, raising concerns about “debt trap diplomacy” and fears it could serve as a military outpost for China in the future​​.

So, how is David Cameron involved? The now Foreign Secretary is on record promoting the project as a “sea of opportunity” that will help “[build] bridges and [bring] greater prosperity for all”. In January, he visited the site in person alongside the Sri Lankan prime minister and was photographed shaking hands with Yang Lu, the project’s Chinese managing director.

But it’s his on-stage appearance at an investment conference in the Middle East just two months ago in September that’s most recently raised eyebrows. Cameron was filmed engaging audiences with insights on trade and investment trends, in particular emphasising the significance of the Port City in transforming the global business landscape and downplaying an IMF report that criticised the project’s tax arrangements.

According to Politico, “Cameron was paid thousands of pounds to fly to the UAE to drum up investment in the project”, though it was KPMG Sri Lanka that footed the bill for his appearance, rather than any involved Chinese party.

What does David Cameron’s China ties mean for business?

Given his new role at the centre of government – and with many MPs concerned he should have been discouraging, not supporting, reliance on Chinese influence and debt​​ – he is facing a grilling from Conservative and opposition colleagues alike and will be called in front of parliament in December to answer questions.

While many were keen to back Cameron’s gung-ho attitude to cooperation with China in the mid-2010s, today, the political landscape is vastly different. Not only will Britain’s new foreign minister have his work cut out in the new climate, but so will foreign businesses forced to defend their own support for trade with the country as the furore grows louder.

Lead image sourced from @bbcnews on Instagram

The post What are David Cameron’s ties to China? appeared first on Focus - China Britain Business Council.

According to Statista, almost 60% of China’s online live commerce shoppers are female, and they make up around 51% of Chinese e-commerce users in general. But with so much noise, and so many choices, what influences the platform they decide to shop on, and how can their habits inform your China strategy?

We asked four women what their typical buying journey looks like: Jenny Jing, a 38-year-old production manager and mother of two living in Beijing; Cecilia Wu, a 38-year-old editor living in Kunming; Fiona Yang, a 34-year-old teacher living in Beijing; and Cicely Shang, a 34-year-old working in tech and living in Shanghai.

What were the last products you bought for yourself online?

Jenny Jing: Skincare products from a Canadian brand called Cocoon.

Cecilia Wu: Two pairs of Birkenstock sandals

Fiona Yang: Bleaching agent (for clothes). I accidentally died my favourite jacket blue and wanted to get it back to white again. It worked! Made my jacket good as new.

Cicely Shang: Cosmetics, coffee capsules and catnip

Which platform did you use to make your purchase and why?

Jenny: Xiaohongshu this time. But I often use Taobao. I follow a skincare professional on Xiaohongshu who has her own clinic, so she is able to share industry knowledge, insider tips and secrets. Taobao used to be my first choice for this kind of thing, but now I only go there for Li Jiaqi.

Cecilia: Douyin. Normally I use Taobao because they have almost everything, but for these Birkenstocks, the brand’s official Douyin store offered a discount, so I went with that.

Fiona: Taobao. I always use Taobao because it puts the customer’s needs first. If you have a dispute or an issue arises between you and the seller, you feel confident that if something goes wrong, they will fix it. In general, you have more options with Taobao than JD.com and the quality is almost the same.

Cicely: The Harmay mini programme, then Tmall. Harmay [a retail chain selling beauty brand samples with a market value above US$76.4 million] carries so many niche brands and the prices are below market rate.

If an influencer persuaded you to buy this product, tell us more about them. Which influencers do you like and trust, and why? 

Jenny: Yes, there are loads of small influencers on Xiaohongshu who influence me, I’d say. The main one is called Haha Chen. We have a similar body size, she lives in Beijing like me, has a daughter like me. She’s aged around 34. The fact that we are similar means I can trust that I won’t be going too wrong if I follow her lead.

Cecilia: No influencer persuaded me to buy the Birkenstocks.

Fiona Yang: I wasn’t influenced by a streamer this time. I don’t even have Douyin downloaded now because it’s too addictive.  

Cicely: This time, I was watching 钳钳妈阿曼达 (‘Qian Qian’s Mom Amanda’) on Xiaohongshu. I think she’s just over 30 years old and I’ve been following her for more than three years now. Her style/aesthetic is similar to mine, and the items she recommends are always really practical and it’s clear she uses them herself.

What convinced you to buy this product when it came down to it?

Jenny: Nothing really, I just wanted to try something different, and you can return the product within seven days so it was a pretty low-risk purchase.

Cecilia: In this case, the time-limited discount!

Fiona: It was the best price I could find. If I didn’t get this deal, I knew I would regret it. In general, these time-limited deals definitely make me more impulsive. If a site or a person says ‘take advantage of this deal or you’ll miss out’ I usually just pull the trigger.

Cicely: The product seemed to perform well according to the influencer, so I thought I’d give it a try.

Did you get a special discount on this item?

Jenny: Yes, the influencer gave a discount price on the items I bought.

Cecilia: Yes, because I bought on Douyin, the price was RMB 100 (£11) lower than the store.

Fiona: Yes, that’s the major reason why people like me prefer to buy online these days instead of at a shopping mall.

Cicely: No discount this time.

Did you buy the product directly in the app or did you see it in one app, then go and buy it in a different one?

Jenny:  Yes, I bought the items directly from Xiaohongshu because the discounted price can only be claimed during the influencer’s live stream. But sometimes, before I decide to buy it in Xiaohongshu, I quickly go to Taobao, search the same item and check people’s reviews and comments there too.

Cecilia: Yes, I bought the shoes directly from the Douyin app, because it’s cheaper and the delivery is fast.

Fiona: I don’t shop around. It’s too time-consuming. That’s why I really just use Taobao. It gives me a headache doing lengthy comparisons. I prefer to have options because I want to see different styles and prices, but overall I prefer just to buy from a platform I trust and know than shop around for the cheapest products.

What I like about the way Taobao functions is that once you see a product you like and click ‘Like’, when you go back to the previous page, Taobao automatically shows you options for the same product (so you don’t need to search again) and makes it super easy to do your own price comparison. It takes so little effort. Then you can just focus on the reviews rather than the price.

Cicely: I saw the recommendation on Xiaohongshu and then went to Harmay and then finally to Tmall to make the purchase.

How often do you buy imported/foreign brand products on these platforms? 

Jenny: I never buy foreign brand clothing, but I do buy many international brand products for the children as well as skincare products. I buy foreign brand skincare and make-up every two or three months on Taobao and kids’ stuff every one or two weeks, such as baby formula, Vitamin D or A and nappies.

Cecilia: I’d say I buy foreign brand beauty products like La Roche-Posay and Lancôme once every one to two months.

Fiona: I buy imported brands from Taobao (Tmall) since it was one of the earliest platforms to stock foreign brands, and the prices are always similar to duty-free shops at the airport. I also think Tmall has stronger relationships with overseas brands and better quality control. I know it’s the real thing. Mostly I buy cosmetics like Lancôme or Dior or Cote perfume. Sometimes I buy little things from Coach or sports brands like Puma or Nike. If they have something that domestic stores don’t, that’s when I buy them from Tmall because I’m getting something I couldn’t otherwise.

Cicely: I’d say I buy foreign brand products once every quarter – mostly Lululemon and Nespresso!

What influences your decision to buy those foreign brands, and which country’s brands do you trust the most?

Jenny: For me, it’s about quality and safety. In general, I trust Japanese and German brands the most because I know they are serious about quality control. Also, there is a British clothing brand called Next that I like a lot! The designs are really cute, it’s good quality and the price is good too. Unfortunately, it only had an online shop in Taobao for a while, and then it closed, so now there are no online or offline shops in mainland China for it, but it is available in Hong Kong, I think.

Cecilia: The quality and safety aspect, for sure. I feel products from the UK, Europe and the US are especially good.

Fiona: I just buy things based on my personal taste. I seldom try new things. I’m quite a loyal customer. If I like a brand, I use it for years, like Lancôme, for example. Most of the brands I like are from the US, and in general, I think that’s because I see them as mid-range luxury. They’re more affordable than high-end European brands.

Cicely:  I like Lululemon because I know it’s a durable product. And Nespresso holds up for daily consumption too.

Which is your favourite e-commerce platform and why?

Jenny: It’s hard to say. I use Xiaohongshu mostly for myself, JD.com mostly for the children and Taobao for daigou or stuff I can’t buy on JD mall.

Cecilia: Taobao because of the sheer selection, and JD.com for same-day or next-day delivery.

Fiona: Taobao.

Cicely: Tmall for brand assurance, fast logistics, and convenient returns and exchanges.

Are there any platforms that you never use? And if so, why not? 

Jenny: Amazon. I don’t see the reason why I need it. Many years ago, the page looked messy, and the payment method wasn’t China-friendly, but I haven’t used it for years, so maybe they’ve made some changes [Amazon shut down its domestic operations in 2019].

Cecilia: I don’t use Xiaohongshu. I feel like the content is more about showing off, whereas people on Douyin are just having fun.

Fiona: Pinduoduo. It’s like Taobao but with a much lower price, sometimes even below RMB 10, but the quality can’t be guaranteed, so I don’t like it. I also get annoyed by their model. You can make things cheaper by getting bonus discounts for sharing deals with your friends. In other words, you have to ask your friends to help click on the link Pinduoduo sends you to get the price down, usually by just RMB 1 or 2.

But so many friends send you these links. Ok, it’s an easy favour to do for people, but it’s so annoying! Go there and click, go there and click. I didn’t want this app on my phone, but I felt obliged to download it to help my friends get cheaper deals. Since then, I deleted the app. Now when friends ask me to open their links to get them discounts, I just say, “sorry, it’s not worth it for RMB 1!”

China Consumer 2023

This article was produced as part of a series for China Consumer 2023.

Learn more about CBBC’s flagship consumer event of 2023 here.

The post How Chinese women really shop: 4 case studies appeared first on Focus - China Britain Business Council.

And it’s no exaggeration to say that, in the case of Yao being allowed to travel, the world will quite literally be better off.

“Coming back this time is quite nostalgic for me” she says when asked whether she has a long history with the UK. From the moment she was handed an Oxford English textbook as a schoolchild, to studying geography at Cambridge “because it has a long tradition”, to finding inspiration in its Scott Polar Research Institute, the country should be flattered that it’s one of the first places Yao is visiting now she has the chance.

Yao is a pioneer in every sense of the word. Not only did she join 76 scientists on the largest ever all-female expedition to Antarctica in 2016, but the trip was so impactful that she wanted others to share her experience.

“I was the only Chinese in the first cohort and for the second cohort I helped fundraise so that more Chinese could go. Now we have around 20 women who have been on this journey,” she explains.

The trip was, unsurprisingly, life changing for Yao. She stayed on afterwards, acting as an expedition guide on cruise ships going to Antarctica and said she noticed that people were “completely transformed” when they made the journey, but that they were mostly older: “They would want to do something for the environment after their experience but usually they were quite late in their careers. I felt there weren’t enough young people appreciating and learning about these things, so I saw a huge need for that, especially in China.”

And this is where Yao differs from many of her contemporaries when it comes to taking action on the environment. Rather than allowing it to be an abstraction in most people’s lives, she knows that the key to real, lasting change is to get people to form a deep respect for nature from a young age, and for them to be keenly aware of their ability to make a difference.

So she founded WildBound, a company that initially set about creating learning journeys for school kids to Antarctica, Greenland, the Himalayas, Nepal, Qinghai and Bhutan, creating curriculums for them before they left and giving them projects to do in their communities when they returned. Paid for by a combination of parents’ money and scholarships, such trips weren’t cheap, with the Antarctica journey in particular costing north of $15,000 per child. And then came the pandemic. Like many businesses forced to pivot and refine their business models at the time, the changes for WildBound have also been long lasting.

“We sent lots of kids on these journeys but the feedback we would get was that once they were back in their classroom, back in their homes, everything was the same. They have these amazing life-changing experiences but they didn’t know what to do in their own communities or how to get people to share the passion they have, so now we work more on a systemic level.”

The goal was not necessarily to send more and more people to Antarctica, says Yao, but to inspire the next generation to care and take action for nature. The main pandemic switch her team made? Working directly with schools in a more holistic way to transform curriculums and engage in teacher and parents training.

“We help Chinese schools think about climate issues from many different perspectives – from campus operations to culture, the community that they’re engaged with, the messaging they give kids, teacher training programmes and information on energy use and school gardens, that kind of thing. Because we want to change the environments that young people are in. They need to be able to create change in their own environments.”

What’s impressive is that WildBound’s efforts are getting real world results. Older alumni have gone on to do environmental studies, climate change research projects and make documentaries on the subject, while the younger children do things like starting Meatless Mondays, or hold local supermarkets to account for poor environmental practices.

And if you think we’ll be waiting a while to see the results of this drive toward action that benefits the environment, you’d be wrong. The beauty of WildBound’s work is that it can touch people in unexpected ways.

“We actually helped a Chinese company in the luggage and bags business,” says Yao. “We helped them completely change their strategy. They closed hundreds of shops after the pandemic and the group instead adopted a sustainability strategy, launching new products made of recycled materials and totally overhauling their operations.”

The founder of the bag business? A parent who went on two of WildBound’s trips to Greenland and Antarctica with her son. “She already knew about sustainability before she left, but these trips were so meaningful for her that after the pandemic and through further collaboration with us, her and the whole team shifted towards a sustainable strategy.”

Multinationals including Unilever have also worked with WildBound to educate its staff, and Yao says it’s important that businesses aren’t engaging in greenwashing, which is all too easy to do. “I honestly think a lot of businesses have to change in a very fundamental way and we also probably will need new businesses to emerge or new ways of working [to really see a difference],” she reflects.

“We think education is the missing piece in all these solutions, because nowadays everyone just wants an electric car or some other rapid way to reduce emissions. And of course those are all very important, but you need to change people’s mindsets. Education is a long term and very powerful tool that often gets neglected in a lot of the policy conversations…”

And what of collaboration with the West on these issues going forward? Does Yao think China can rebuild such relationships post pandemic, or is all the mudslinging from both sides getting in the way of progress?

“It’s making it harder because of the noise it creates. When we’re facing these global challenges we really need collaboration and we don’t just need one player to solve all the problems.”

This reminds me of something she brings up earlier in our conversation – a book she gathered stories for in 2021. Although the book (in Chinese and titled The Self We Choose) was about leadership, it featured the voices of all 20 of the women who had made the journey to Antarctica, all of whom are now in climate or nature-related jobs.

“That’s very rare in leadership books. Usually they’re about one story or one person’s success, and how they’ve monetised that. You know, like Bill Gates or Ray Dalio – it’s never about a collective.

“I think it’s quite special to think about the power of community, and to know that we don’t need to create the same kind of lone heroes that the male dominated model argues for. The individual explorer; the one superhero who’s gonna save everything…it takes a lot more. It takes community, soft skills, communication, emotional intelligence…”

It seems both businesses and governments have something to learn from Songqiao Yao. Now she’s able to meet with their stakeholders face to face, let’s just hope they’re listening.

Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC’s Launchpad service gets your company boots on the ground in China quickly and cost effectively.

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From Liz Truss’ tirade against TikTok as a “threat to children’s safety”, to American senator Richard Blumenthal’s concern that “TikTok’s policies and practices for children and teens are fundamentally different in the United States and China” – most politicians in the West have zeroed in on the Chinese video app more than any other in their fight back against social media’s vice like grip on their country’s youngest citizens.

Known for its viral dance videos and micro crazes – remember the Mannequin Challenge? – TikTok is now the biggest app in the world, with over a billion users who spend almost an hour a day scrolling.

So is the hysteria justified? Is China’s version of TikTok – better known as Douyin – really a watered-down app with greater protections in place for kids? And are those in the West simply escalating tensions with China every time the app is singled out?

There was certainly something ironic about the metaphor former Google employee Tristan Harris used to describe TikTok’s Chinese parent company Bytedance on an episode of 60 Minutes last year.

“It’s almost like they recognise that technology is influencing kids’ development, and they make their domestic version a spinach version of TikTok, while they ship the opium version to the rest of the world”, he told host Bill Whitaker.

The ‘spinach version’ he was referring to, of course, is Douyin, the original Chinese app launched into the local market in 2016 – a year before the internationalised version, TikTok, made its way onto the Apple and Android app stores.

Students of history familiar with the Opium Wars in China – when Britain attempted to address a trade imbalance by illegally flooding China with opium, creating millions of addicts in the process – will find the comparison between TikTok and the addictive drug a little too on the nose if they’re looking for reasons to call either side a hypocrite.

But the idea that children in China are fed content on Douyin that promotes everything from maths and science to athletic achievement rather than more frivolous content is true.

In September 2021, Bytedance announced it was making several changes to its algorithm and user interface in China, limiting children to just 40 minutes a day, introducing a Youth Mode for under 14s, and preventing the app being accessible to children between 10pm and 6am. The new policy also saw the company filter out any “inappropriate content” on the app, with a declaration that they would introduce new content such as science experiments, art exhibitions, nature and history to “inspire” youth, according to The Independent.

The moves followed a Cyberspace Administration of China (CAC) crackdown just one month prior on “unhealthy fan culture” and a reminder to use algorithms to promote content that “adheres to mainstream values”. Bytedance, it seems, were left with no choice but to accelerate features that protected minors and watered-down gossipy content.

But one key difference that often gets overlooked is Douyin vs TikTok’s e-commerce capabilities. In 2022, Douyin generated 1.5 trillion RMB (over £175 billion) from e-commerce within the app, with 33% of its users below the age of 25. That’s a lot of click-happy teenage shoppers. Meanwhile, TikTok’s e-commerce capabilities have barely begun. It wasn’t until October last year that Axios reported the company had posted job adds relating to TikTok’s development of an international e-commerce fulfilment system to rival Amazon’s – meaning it will be a while yet before the West’s young people are sucked into the frictionless, in-app shopping experience that has been so successful in China.

Douyin and TikTok are entirely separate entities, but the discrepancies between them have still been the subject of much handwringing in the US, where even controversial US podcaster Joe Rogan seemed to speak with a degree of admiration at the way in which the Communist Party has successfully regulated companies like Bytedance.

“China’s version of TikTok celebrates academic achievements, athletic achievements… and at 10pm those kids are not allowed to get on it,” he told his interviewee in January 2022. “They’re doing all these things with this idea of engineering a society of more accomplished, more successful people. Whereas what are we doing? Kids are f*****g dancing and screaming about veganism. It’s wild.”

Though pushing propaganda or banning certain topics might be anathema to Western democratic governments – not to mention in breach of laws guarding free speech – the British government has made more headway than the US on regulating apps like TikTok for children.

In September 2021, The Age Appropriate Design Code – also known as the Children’s Code – came into effect in the UK, requiring companies to “put the best interests of the child first” when designing their apps or websites. Stipulations include defaulting to the highest level of privacy in settings if the user is thought to be a child; geolocation turned off; and a ban on using “nudge techniques” to encourage children to provide unnecessary personal data or turn off their privacy protections.

Nevertheless, earlier this month, the UK’s Information Commissioner’s Office fined TikTok £12.7 million – one of the largest ever issued – for illegally processing the data of 1.4 million children under the age of 13 who were using the platform without parental consent. The fine relates to a period in 2020, and Bytedance insists they have made significant changes to verify children’s ages since then.

Ultimately then, it seems that Bytedance behaves no differently when operating in China as Douyin as it does in the West as TikTok – or any of Silicon Valley’s biggest players for that matter: companies are reluctant to make changes before being required to by law.

And while more hawkish government ministers like Tom Tugendhat won’t rule out banning the app altogether, it’s more likely that regulations against TikTok and other social media companies’ less scrupulous practices will become increasingly effective as time passes. No matter who legislators’ ire is aimed at, young people may yet be better off in the long run as a result – and for now at least, get to keep dancing.

Entering China is a key decision for businesses of all sizes. Call +44 (0)20 7802 2000 or email enquiries@cbbc.org now to find out how CBBC can provide you with the platform to unlock your potential.

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You don’t need a science degree to understand the life-saving benefits of Beijing X-Magtech Technologies’ commercial-grade atomic magnetometer.

Possessing sensitivity about a billionth of earth’s magnetic field, it acts like a tiny microscope with the ability to detect extremely weak magnetic fields. The outcome for doctors around the world? The chance to detect cardiovascular and brain diseases such as Alzheimer’s with more precision, more quickly and in the most non-invasive way possible.

However, what’s perhaps most impressive about this groundbreakingly affordable magnetic sensor is that it’s been developed by a small, Beijing-based company that only started in 2020, has raised capital from high-profile investors such as IDG and has already won a British Business Award. The device is now being used by hundreds of patients a day in some of China’s key hospitals, with patents pending in Europe and the US.

Beijing X-Magtech Technologies’ commercial-grade atomic magnetometer

Providing scientists and engineers with a powerful tool to investigate new physics and engineering applications, it’s not just the medical field that the technology will impact either: everything from geophysics and materials testing to the defence industry are potential beneficiaries going forward.

The company was co-founded by Bin Cai, a Xi’an-born entrepreneur who studied Aerospace Engineering at the University of Bath before working at Rolls Royce and Jaguar Land Rover in the UK for over 12 years. Bin is clear about the influence his UK education and work experience had on X-Magtech’s creation: “My experience helped me gain an international perspective and an open mind in terms of what was possible, which was crucial for creating something so innovative and disruptive,” he says.

Bin says collaborations in scientific research and education between the UK and China have also played a key role in his company’s origin story.

“All four co-founders of our company have their highest degree from the UK, and each of us spent at least four years in the UK on average,” he says, adding that, combined with his cultural knowledge of how to do business in his home country, he and his co-founders were able to combine the technical and commercial skills needed to get the atomic magnetometer into hospitals back home.

However, Bin’s journey hasn’t been without its difficulties.

“The greatest challenge was how to establish a technology start-up aimed at disrupting the market and changing the sector,” he explains. “Most people in China believe that products like this have to be developed by famous universities or research centres rather than a small company with no government support or research grants – which made our first fundraising round very difficult.”

After investing RMB 10 million (£1.2 million) of their own money on a prototype to demonstrate the product’s capabilities – and a lot of persistence – the four founders were able to get the first group of investors on board.

Since then, Bin says, the UK and China’s relatively stable economic relations throughout the pandemic have helped his company move forward more efficiently, since X-Magtech has a very specific supply chain for components from the UK.

“We depend heavily on each other’s technical breakthroughs, commercial validation, supply chains and, most importantly, talent,” he says, adding that supporting companies like X-Magtech benefits not just the UK and China, but other countries too.

“Products like ours help everybody. Our contribution to the field has been to provide an affordable and robust commercial solution so the technology can be applied in the real world faster and benefit more patients – ultimately saving more lives.”

X-Magtech’s Magnetocardiography (MCG) system – for measuring magnetic fields caused by electrical currents in the heart – was cleared by the CFDA (China Food and Drug Administration) for market entry in early 2022, and the company estimates 20-30 hospitals will become their customers in 2023. They hope to reach as many as 1,000 hospitals in the next five years.

“This year our MCG system will be installed in many more hospitals, and we will keep developing the product, especially with a large dataset from across the country that could allow us to improve the accuracy of a [patient’s] diagnosis,” Bin says.

“Our MEG product will also come to the market this year so there will be a lot of work to do, but we are excited to see our quantum technology helping scientists and doctors better understand our brains and to treat brain disease with this new tool.”

So how can companies like Bin Cai’s be helped to reach their goals more quickly?

“It may sound like I’m being diplomatic, but I really would like to see us continue being great collaborators in these areas, and where necessary to agree to disagree.”

“But it would also be very helpful if there were more opportunities for companies like ours to showcase our products to relevant audiences in the UK, since quantum technology is a key strategic area and the UK has a great medical market and industry.”

The truth is, with robust support behind Bin Cai and his 50-strong team, there really is no limit to what X-Magtech can do for global good.

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