7/29 TBC Insider Digest
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Insider Digest 7/29/21: Policies Week: Education, Delivery Workers, Link Blocking, and ... Manufacturing Upgrade
It’s policies week in China — really didn’t get around to doing much else except try to calm down investors that the sky wasn’t falling. Just kidding. None of you were panicking! But yeah … not much else happened of note, except one more CGB company went bankrupt (the second now), and Alibaba filed their 20-F.
Announcement: Let’s all de-stress and laugh a little at our weekly Zoom. FRIDAY 7/30/21 6AM PST / 9AM EST / 9PM Asia Time on Zoom!
In addition, we are going to be moving away from the WhatsApp group as there are now too many of us. You get to vote, Discord or Slack??
Please fill out this survey to let us know your preference!
7/20/21 After School Tutoring Rules
It seems like a year ago when the government instituted these rules, but if you are still pondering them, I summarized the most important clauses and also give you some thoughts on whether or not this extends outside of edtech (clearly not, the government has confirmed a few days later). Unfortunately, I have no idea what the dismantling looks like, and can only tell you that right now, there are already pivots / new product announcements focusing on nonacademic (ie STEAM) tutoring or offering services to schools, since the rules make it clear that schools will have to offer after school services until parents are off of work.
7/26/21 Gig Worker Economy New Guidance
A summary of the new guidance followed by some super basic arithmetic to try to tease out what the impact to Meituan could be. It seems that it could vary a lot, depending on your assumptions. I personally lean towards the “probably not that bad” angle, not to mention, it isn’t clear this will be that strictly implemented just yet. I don’t know the answer, and would love to know what you are thinking.
7/26/21 MIIT Rules on Internet Apps: Everyone Open Up Now!
The official rules came out on prohibiting link blocking, and I refer you to my thinking that I posted last week on who wins. After talking to some of you, I’ve amended my opinion from WeChat to Alibaba, but pretty reluctantly, since it really only hinges on Taobao Deals … without this, I’m really not sure Alibaba net benefits, because of the potential loss of advertising revenues. I was hoping for a much more lively discussion on this! Isn’t this one of the more interesting things to think about??
China's "New" National Strategy: Manufacturing over Financialization
I almost feel silly writing this, since I'm sure it is obvious to everyone here, but figured it might be a good place to collect all the evidence anyway, even if all of us know that this is how the government is thinking:
Manufacturing over financialization. Do not succumb to the easy "value" accrued to services businesses, and continue to invest heavily into manufacturing, making sure that it does not decline in importance as a part of the economy.
Other Threads …
Tarmo posted a few questions to the group, thank you!
Sky asked:if Didi will be delisted?
Documents to Share:
3500 word article I wrote for TechCrunch on Genki Forest, the bottled beverage unicorn (please don’t share as it’s actually paywalled!)
That’s it! Please check the forums for amazing contributions from our members!
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