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Companies

Baidu will shift business model to AI

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3The head of Baidu Inc has pledged to shift the company’s business from a search-oriented model to one based on artificial intelligence, after a recent government probe put a chill on its core search business.

Baidu CEO Li Yanhong said in an internal letter on Tuesday that the shift will allow the company to develop such areas as voice search, automatic translation and driverless vehicles.

Li, who is a co-founder of Baidu, which runs China’s largest online search engine, also vowed to emphasize user experience over income and to set up a department to root out any behavior that might damage user experience.

“The department will have the final say to veto any behavior that is not in line with a good user experience,” Li said in the letter, which Baidu made public later on Tuesday. “Some of the measures we take may have a negative impact on the company’s income. But I believe it is the right thing to do.”

Analysts said the move is expected to dampen Baidu’s near-term profitability, which in turn would make it more challenging for the company’s new business initiative to gain momentum.

The vow to put users ahead of business performance came after a government investigation led to a demand that the search giant overhaul its paid listing system. The probe came after the death of Wei Zexi, a 21-year-old college student, who underwent an experimental medical treatment that had been advertised among Baidu’s search results.

The Cyberspace Administration of China, which launched a joint investigation of Baidu with other authorities last week, said on Monday that the company had “influenced the impartiality and objectivity of its search results, making it easy to mislead users, and this must be immediately rectified.”

In response to the government’s demand, Baidu said on Monday that it will restrict the proportion of sponsored search results to 30 percent per web page and adopt a new listing system that does not fully depend on the…

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China

Government subsidies don’t boost Chinese firms’ productivity

China’s industrial subsidies have caused considerable controversy both internationally and domestically. Trading partners have accused China of unfairly favouring its indigenous firms with subsidies, leaving foreign companies at a disadvantage in the race to lead the technologies of the future.

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East Asia Forum

Governments around the world regularly spend an enormous amount of money subsidising businesses. But few spend like China. A 2022 report suggests that China spends 1.7–5 per cent of its GDP on industrial policies, more than most countries.

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Companies

Chinese Smartphone Manufacturer Lays Off 3,000 Employees Following Closure of Chip Design Division

OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).

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OPPO, a major Chinese smartphone maker, announced the closure of its chip design company ZEKU Technology (ZEKU).

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Companies

Company Owned by Chinese Billionaire Guilty of Paying $1 Million in Bribes to LA Councilman

A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.

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A Los Angeles real estate firm owned by a Chinese billionaire is guilty of paying more than $1 million in bribes to a Los Angeles city councilman as part of a scheme that involved luxury cruises, high-rolling trips to casinos, and prostitution.

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