Tech Insider: Foreign Automakers’ China JV Gamble, Ehang’s Air Taxi Certified to Fly
Courier J&T Global aims to raise $501 million in Hong Kong IPO, TikTok appeals $363 million EU teen data privacy fine
Photo: VCG
Welcome to Caixin’s Tech Insider, your twice-weekly wrap on the movers, shakers and deal-makers in China’s tech scene.
As China sales stall, foreign auto giants turn to local JVs
The growing popularity of Chinese new-energy vehicle (NEV) brands in China has foreign auto giants sweating. As they try to rev up sales in the country amid a broader economic decline, some are trying an unorthodox strategy: tapping their local joint venture (JV) partners for NEV research and development.
International carmakers were traditionally forced to enter into JVs with local state-owned car brands to access the mainland market under rules that were finally lifted in 2022.
As sales of local NEVs grow, these JVs have found their own market shares slipping.
Headline announcements from the likes of Volkswagen AG, BMW AG and Toyota Motor Corp. in the past year have brought the strategy into relief. They are pivoting their China ventures hard into electrification.
But for the plan to work, these local JVs will have to overcome their reputation for being essentially glorified assemblers that rely on technology developed by their foreign stakeholders. In interviews with Caixin, industry insiders raised doubts about the efforts due to concerns over the level of innovation at such JVs, as well as the challenge of developing the sophisticated supply chains already honed by China’s EV-focused startups.
EHang obtains China type certification for self-flying vehicle
EHang Holdings Ltd. got the green light to begin trial air-taxi operations this year, a step closer to its goal of launching the world’s first commercial service using its futuristic, battery-powered craft.
The Guangzhou-based startup said Friday that its autonomous, two-passenger EH216-S secured a typecertificate from the Civil Aviation Administration of China (CAAC) a classification which signifies airworthiness.
The EH216-S, priced at 2.16 million yuan ($300,000), can travel at about 100 kph (62 mph) for 25 minutes, according to EHang, which declined to estimate how much a flying-taxi tour might cost.
TikTok appeals $363 million EU teen data privacy fine
Chinese-owned video-sharing sensation TikTok is fighting back in court after European regulators imposed a 345 million euro ($363 million) data privacy fine and issued a compliance order for failing to safeguard the private information of teenage users.
The ByteDance Ltd. unit said that it filed an appeal against the penalty in the European Union’s General Court. TikTok is also challenging an order by the lead EU data regulator in Ireland to eliminate “deceptive or manipulative” practices that could undermine privacy.
The fine followed intense scrutiny of child safeguarding practices at the company, which has more than 1 billion users worldwide. Last week, it was added to a growing list of leading social media players that received warnings from the EU to take prompt action to stop the spread of disinformation.
Courier J&T Global aims to raise $501 million in Hong Kong IPO
Courier services provider J&T Global Express Ltd. is seeking to raise about HK$3.92 billion ($501 million) through an IPO in Hong Kong, the city’s second-largest so far this year.
The company is taking orders until Thursday for about 326.6 million shares, which are being sold at HK$12 each, according to a statement on Monday. Pricing is expected to be hammered out by Thursday, with listing set for Oct. 27.
The IPO is poised to be the biggest in the Asian financial hub since ZJLD Group Inc.’s $676 million listing in April. J&T Global’s offering will test investor appetite in Hong Kong, where new share sales are down nearly 80% from the same period last year.
Cash-challenged retailer Suning gets $685 million lifeline
Embattled retail giant Suning.com Co. Ltd. is getting a 5 billion yuan ($685 million) lifeline from state-backed Citic Trust Co. Ltd. and China Huarong Asset Management Co. Ltd. to help turn its business around.
Citic Trust and China Huarong will invest the funds over 10 years to help revive the once-highflying retailer, according to Citic Trust, a unit of state-owned conglomerate Citic Group Co. Ltd. Citic Group is also the largest shareholder of China Huarong.
The initial tranche of funding will provide relief for Suning’s logistics park projects in the cities of Shaoxing, Hangzhou, Nanjing and Chengdu, Citic Trust said in a statement. The investment will also help overhaul Suning through debt and equity restructuring.