China as One of the Most Digitally Developed Countries in the World, and the Latest Initiatives of Mega-IT Companies



China is now taking leadership in the world, primarily in the field of technology development in AI and big data. At this event, Tencent, the biggest tech-company in China, shared details about the current situation and business environment in China’s digital market, the transitions of Tencent, future outlooks, and services utilizing the latest technology.

Digitalization in the Chinese Market

ZHOU Jianchuan, Tencent Cloud Senior Solution Architect

In China, many internet companies have grown. In particular, consumer-oriented fields such as e-commerce, delivery, and finance are developing rapidly, and, as a result, new lifestyles are being created.

With the development of the internet, allow me to tell you about examples of what digitalized daily life is like in Shenzhen, the location of Tencent’s headquarters.

In the morning, train commuters will present a QR code at the ticket gate. If necessary, it is also possible to call a taxi with an app. If you commute by car, you can use a map app for navigation, or if you live near your workplace you can rent a bicycle with a bicycle sharing service that utilizes a QR code. While commuting, people can check the latest news, catch up with friends’ lives, or read books and magazines.

At work, they use an online chat and video conference system, and share, edit, and save files with multiple people. When they go out to eat, they use an app to find nice restaurants and pay by using facial recognition software, so wallets and smartphones are not necessary.

When you want to shop online, there are various e-commerce apps available that will have packages sorted and shipped automatically by robotic technology.

You can book tickets and hotels for business trips and even check-in just with the use of your smartphone.

In this way, due to the development of internet technology, people’s lifestyles have changed.

Recently, the concept of Internet Plus has been proposed, and it is assumed that the Internet will connect various industrial fields and eventually become the industry Internet. It is like a chain from agriculture to industry, manufacturing to service, and production to consumption.

In the future, the industry internet will value the connection between people and goods, goods and goods, goods and operation, and between company and company.

“Industry Internet” is a new word, but I think it can be used in existing fields such as business, industry, healthcare, transportation, education, government, finance, travel and others. Tencent hopes to leverage the power of the cloud and its development experience to bring out the potential of the Chinese industrial field.

An Introduction of Tencent, the IT Mega-Enterprise of China

QIU Binbin, Tencent Cloud Senior Solution Architect

Tencent was established in November 1998, with the headquarters in Shenzhen, the so called the Silicon Valley of China.

Please allow me to introduce Tencent’s core businesses.

The first is WeChat. It has already become a platform, not just a social app. On it, you can use your company’s services via the mini-programs (various small programs that run on the app). WeChat users can use the service by simply scanning a QR code without needing to install the app itself. WeChat has over 1.1 billion monthly active users and is used by the most people in China.

Next is QQ. Although some of the target demographic sectors overlap with WeChat users, we are developing services for young people, like Chinese students born after the year 2000, such as SNS, games, and streaming services. There are approximately 800 million active monthly users.

As for the gaming service, we are developing a “Tencent Games” and e-Sports platform.

Regarding the Tencent Cloud, we have developed the technology through a B2C project, and eventually we will operate the technology for B2B through the Tencent Cloud. IoT, AI and 5G have already been put to practical use in China, so Tencent’s technical capabilities and know-how such as security, are already being used in various fields as services and products.

I would like to finish with talking about investments. We are investing in companies to expand Tencent’s ecosystem including E-commerce sites, delivery services, and streaming.

It has only been a year since we have entered the Japanese market, but the Japanese are gradually recognizing Tencent’s abilities. We are working hard to make our ongoing projects available, and they will be announced soon, so please look forward to them. Thank you for your time and attention.

A Discussion of the Latest Technologies that Support Entry into the Chinese Market

FU Ang, Tencent Cloud Senior Solution Architect

As for expanding into the Chinese market, I do not think that it is necessary to have an office in China. In a way, expanding inbound business is similar to expanding into the Chinese market. When you do expand into the Chinese market, please take advantage of the WeChat ecosystem. The two main ecosystems are official WeChat accounts and the mini-programs. Now I will talk more about the mini-programs. The concept of the mini-program is that it requires no download, is easy to access, and never needs to be uninstalled.

WeChat is the most frequently used digital application in China, with about 50% of its users spending more than 90 minutes a day utilizing it. Most of them use the chat system as a communication tool.

For 18 years, between 1999 and 2017, approximately one million programs have been released. Among them, I would like to tell you about a case study of a mini-program used by the Shenzhen Airport. Through the program, airport services are divided into four categories: departure, arrival, connecting flights, and transportation services. You can also find information about any flight delays, or search for a restaurant at the airport. While these services are used to improve advertising and user experience, the data is most valued by airport operators. Based on the data, we create user profiles and extract certain data including gender, routes to the airport, and shopping habits. The configured profile is then used for promotions, among other things.

Other airports and airfreight companies in China have adopted the same service. You can use mini-programs via WeChat at both the Kansai International Airport and the Haneda International Airport. Please try it for yourselves. Thank you for coming today.