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China Business News (2021-04-13)

1. Tencent Music could face antitrust investigation

Tencent Music, Tencent's joint venture with Spotify, has also been preparing for an antitrust investigation into its licensing deals. In recent months, the company, therefore, deliberately waived some potential licensing agreements. After Alibaba paid a record fine of USD 2.8 billion because of antitrust violations, authorities are now ready to investigate other companies. Last month Tencent already had a meeting with antitrust regulators, who issued the company a fine for not proactively seeking approval in previous acquisitions. In general, it is said that Tencent has a good relationship with government authorities. But it would be interesting to see what is next for them after the investigation is over.


2. Xiaomi is rumored to be buying Chinese carmaker Borgward

There are rumors in the market that Xiaomi is about to buy the Chinese car company Borgward Automotive. It is said that Xiaomi is not ready to set up its factory in the early stage of its entry into the automotive market due to the high cost. By buying Borgward, they would have factories with a relatively new production line of Baowo new, with advanced factory design and a high degree of automation. An investment in the single-digit billion range would be conceivable through the announced investment goals of up to CNY 10 billion. The current offer still seems too small, but the investment would be an exciting alternative instead of choosing a company like BYD as OEM.


3. Ant Group becomes an financial holding and is not a technology company

Alibaba's Ant Group has now officially announced that it will submit a comprehensive application to become a regulated financial holding company. This follows China's top regulators' decision for the largest financial technology company, which brings all of Alibaba's mobile payment platform Alipay, its lending platform, its investment technology unit, and its burgeoning insurance business to stricter regulatory oversight in the future. In addition to more stringent regulations, Ant Group must also hold more equity. It would allow the company to restart the initial public offering (IPO) again, as there is now more clarity about the regulatory authorities' rules.


4. SAIC announced further modular customization of their cars

At SAIC's last developer conference, the company announced that it would introduce a platform on which car buyers and enterprise customers could make deep function customization of their cars. Thus, the traditional concept of "model" will be broken down, and the vehicle will become more like a large cell phone.


5. BAIC electric car daughter and Huawei release autonomous vehicle

BAIC Blue Valley and Huawei announced that an electric car model of BAIC would be the first product equipped with Huawei's intelligent car solution. Huawei will develop the autonomous driving system and adapt it for their vehicles. This deep cooperation was founded in 2019 with the "1873 Davidson Innovation Laboratory" to cooperate in intelligent driving, intelligent cockpit, intelligent electricity, security, and privacy.


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