China
How Mobile Commerce in Southeast Asia Will Leapfrog China
While mobile commerce is big in China – one-third of total online shopping in China is done through mobile – Southeast Asia’s mobile commerce is on a faster growth trajectory than the Dragon.
Prior to joining aCommerce, I spent three years working in Beijing that included a stint in the ecommerce business of a major PC manufacturer and retailer.
That was back in 2009, when ecommerce was starting to take off in China. At that time mobile shopping wasn’t even on consumers’ minds. People shopped on their laptop and desktop computers and mostly during office hours.
My BlackBerry could barely load Google Reader let alone access ecommerce sites.
But for many in Southeast Asia today, mobile is the first and only way people are accessing the web. While mobile commerce is big in China – one-third of total online shopping in China is done through mobile – Southeast Asia’s mobile commerce is on a faster growth trajectory than the Dragon.
Source: http:thenextweb.com/asia/2014/02/26/mastercard-survey-finds-that-nearly-60-of-chinese-online-shoppers-made-purchases-via-smartphones/
According to Google Consumer Barometer, 31% and 21% of users in Malaysia and Vietnam go online strictly via smartphone, compared to only 8% in China. In a MasterCard study, 59% of Chinese respondents made a purchase on mobile in the last three months, ranking China number one across all Asia.
This isn’t very surprising because most of China skipped landline adoption and jumped straight into mobile. What is surprising is the fact that Thailand and Indonesia are ranked second and fifth with 51% and 46%, respectively. This reinforces the notion that while Southeast Asia’s ecommerce lags behind China’s by several years, their mobile commerce does not.
What Next?
Despite the forecast that mobile commerce is imminent, many companies in Southeast Asia still struggle getting users to buy via mobile. One of the problems as highlighted Tech in Asia, “Mobile commerce is still crippled by poor UX.” When analyzing the LINE Flash sale data that showed desktop purchases far surpassing mobile despite being a mobile first platform, TechCrunch journalist Jon Russell said:
“It […] challenges the belief that mobile commerce is already ahead of ecommerce. That’s something that could well happen in the future as smartphone uptake continues to grow but it isn’t the reality right now.”
So while we are witnessing a grand leapfrog of mobile potential, LINE’s mobile grocery campaign with aCommerce as a fun example, companies must continue to invest strategically into mobile commerce knowing that it will take off much sooner in Southeast Asia than the 5-6 years it took in China.
It won’t reap immediate rewards today in terms of financial ROI but companies won’t regret it when the market hits tipping point 2-3 years from today.
Business
China and the UK Resume Economic and Financial Discussions After Six-Year Break
China and Britain resumed economic talks after six years, aiming to improve relations. Chancellor Reeves seeks cooperation but raises concerns over Russia’s support and Hong Kong’s civil liberties.
Resumption of Talks
Taipei, Taiwan (AP) — China and the United Kingdom have reignited economic discussions after a six-year pause, spurred by British Treasury Chief Rachel Reeves’ recent visit to Beijing. The Labour government aims to mend strained relations with China, the world’s second-largest economy. Reeves met with Chinese leaders and underscored the necessity for a "stable, pragmatic" partnership, emphasizing collaboration on mutual interests while maintaining transparency in disagreements.
Economic Collaboration
During her talks, Reeves sought to address key issues such as reducing economic support to Russia and advocating for basic rights in Hong Kong. Both nations signed agreements expected to infuse £600 million ($732 million) into the U.K. economy over the next five years. These agreements target crucial sectors including finance, with Reeves emphasizing that this renewed engagement may generate up to £1 billion for the U.K.
National Security Concerns
While seeking better ties, there are mounting concerns regarding national security and human rights abuses in China. Critics from the opposition have questioned the balance between economic opportunities and safeguarding Britain’s interests. Reeves acknowledged the importance of national security but highlighted the need for pragmatic relations with global partners, stating that ignoring China is not a viable option for the U.K.’s economic future.
Source : China and the UK restart economic and financial talks after a 6-year hiatus
China
Indonesia Needs to Take a Critical Stance on China’s Global Order Vision
During his visit to China, Indonesian President Prabowo secured $10 billion in investments and issued a Joint Statement, raising concerns about Indonesia’s neutrality amid China’s global vision and territorial claims.
Indonesian President’s Visit to China
During his visit to China from November 8 to 10, 2024, Indonesian President Prabowo Subianto secured a remarkable US$10 billion in investments and issued the Joint Statement on Advancing the Comprehensive Strategic Partnership. This document has raised eyebrows as it suggests alignment with China’s global vision, potentially undermining Indonesia’s traditionally impartial stance among major powers. Notably, it includes discussions on joint development in areas with overlapping territorial claims, despite Indonesia being a non-claimant in the contentious South China Sea.
Strengthening Bilateral Relations
President Prabowo considers China a significant partner, reflecting on centuries of bilateral collaboration. This visit highlights Indonesia’s commitment to enhancing cooperation across various sectors, including technology and green energy. China also pledged support for Prabowo’s free meal program, which is part of Indonesia’s larger Food Supplementation and School Feeding initiative, reinforcing the ties between the two nations.
Implications of the Joint Statement
The Joint Statement emphasized shared aspirations for the future but also raised concerns about Indonesia’s strategic positioning. By commending China’s narrative, particularly the concept of a "community with a shared future," Indonesia may inadvertently compromise its neutrality amid major power rivalries. Given the complexities surrounding this language, it is crucial for Indonesia to approach such statements carefully to uphold its independent foreign policy.
Source : Indonesia must be critical of China’s global order vision
China
Cross-Border Data Transfers: New Draft Guidelines Clarify Certification for Personal Information Protection
China’s draft measures for personal information protection in cross-border data transfers clarify certification procedures, eligibility, and requirements. Released by the Cyberspace Administration, they aim to enhance data governance and privacy, ensuring compliance and safeguarding personal information in international exchanges.
China’s new draft measures provide clarity on the certification process for personal information protection in cross-border data transfers (CBDT). Aimed at enhancing data governance, safeguarding privacy, and ensuring regulatory compliance, the draft measures outline eligibility criteria for applying the certification mechanism, specify the requirements, and detail the certification procedures.
On January 3, 2025, the Cyberspace Administration of China (CAC) issued a draft document titled Measures for the Certification of Personal Information Protection for Cross-Border Data Transfers (hereinafter, draft measures) for public consultation. The draft measures, comprising 20 detailed articles, outline a comprehensive framework for certifying the security and compliance of personal data transfers beyond China’s borders.
With the feedback deadline set for February 3, 2025, the draft measures represent a crucial step in China’s broader strategy to strengthen data governance, ensure cybersecurity, and address global concerns over the safety of cross-border information flows.
Article 3 of the draft measures defines “PI protection certification” in cross-border data transfers as the formal evaluation process carried out by bodies authorized by the State Administration for Market Regulation (SAMR).
These certification bodies are responsible for assessing the compliance of personal information processors with the requirements of secure cross-border data transfers. The certification ensures that processors—whether domestic or foreign—adhere to the stringent criteria set out in the regulations, thereby protecting individuals’ personal information while enabling international data exchanges. Certified entities must demonstrate their capacity to manage cross-border data transfers in compliance with the standards laid out by the CAC and SAMR.
The certification process not only verifies compliance but also serves as an assurance to the public and regulatory authorities that the certified processors meet the required data protection measures.
Moreover, the scope of “cross-border data transfers” encompasses several scenarios where personal information moves across national boundaries. These include:
This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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