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… href="https://www.uptimeai.com/">UptimeAI</a>, an AI tech startup, has raised USD 14 million in its Series A funding round led by WestBridge Capital, with participation from Emergent Ventures and Aditya Birla Ventures. The funds will be used to scale its platform, expand its product portfolio, and broaden its presence in North America, the Middle East, and Asia. —Entrackr</li>
<li>Infra.Market has secured nearly USD 18 million in debt financing. This debt infusion follows a USD 50 million equity funding round that saw support from the Mars Unicorn Fund. The funds, raised through non-convertible redeemable debentures, will support Infra.Market's operations in the construction materials sector. The company supplies across 16 states in India and exports to markets such as Dubai, Singapore, and Italy. —Entrackr</li>
<li>Dezerv, a wealth management platform, has raised USD 32 million in a Series B funding round led by Premji Invest, with participation from Elevation Capital, Matrix Partners, and Accel India. Dezerv offers portfolio management services to high-net-worth individuals (HNWI) and claims to have delivered close to 30% returns since its inception. The funds will be used for growth and strengthening the company's financial position. —Entrackr</li>
<li><a href="https://www.goatbrandlabs.com/">Goat Brand Labs</a>, an e-commerce rollup company, has raised USD 21 million in debt and equity from BlackRock, Mayfield, and NB Ventures, among others. The funds will be allocated toward the growth of its portfolio brands. —Entrackr</li>
<li><a href="https://www.awign.com/">Awign</a>, a “work-as-a-service” platform, has raised USD 24.5 million from Japan-based Mynavi Corporation, which now controls a 73% stake in the company. Awign will use the proceeds for its general operations, working capital needs, and business expansion. —Entrackr</li>
<li><a href="http://arya.ag">Arya.ag</a>, an agritech startup, has raised about USD 29.2 million from its existing investors. The funds will support Arya.ag's operations as a grain commerce platform, connecting agriculture producers and buyers while providing ancillary services such as warehousing and debt through third-party lenders. —Entrackr</li>
<li>Oyo, one of India’s leading hotel aggregators and operators, has raised close to SSD 50 million from InCred. —Entrackr</li>
</ul>
whereRelatedArticle
<h3>BluSmart, Niv Della, Kindred, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://blu-smart.com/">BluSmart</a>, a Gurugram-based electric mobility startup, raised USD 24 million in a pre-Series B funding round. The investment saw participation from responsAbility Investments AG, Sumant Sinha, the family office of cricketer Mahendra Singh Dhoni, existing investors, and the founders.</li>
<li aria-level="1">Niv Della Beauty Innovations, the company behind D2C brands Colourette and Fresh Formula, bagged USD 2 million in funding. The round was led by DSG Consumer Partners, with existing investor Foxmont Capital Partners also participating.</li>
<li aria-level="1"><a href="https://mykindred.co/">Kindred</a>, a women's health platform based in the Philippines, reportedly secured USD 2.5 million in the first tranche of its pre-Series A funding round. The round was led by Integra Partners and included participation from Kaya Founders, KSR Ventures, Pawikan Capital Group, Tenco Capital, and Ava Zobel Pessina.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Lhoopa raises USD 80 million, Breakthrough Victoria leads investment in JigSpace, 12 China and India deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Philippines

Southeast Asia

China

India

Oceania

36Kr has exclusively learned that TikTok is testing local services overseas, starting with Southeast Asia, with operations already launched in Indonesia and Thailand.
A source involved in TikTok's e-commerce services in Indonesia disclosed to 36Kr that TikTok's local services are still in the internal testing phase. Only a select group of users can see related group-buying packages in their feeds, primarily from dining merchants. Seizing this new opportunity, the source has begun expanding into local services, establishing connections with local influencers, and building a dedicated team.
On TikTok, some Thai accounts are already calling for merchants to join TTLS, representing “TikTok Local Services,” promoting it as a new business opportunity.
36Kr also found dozens of job postings related to local services on TikTok's recruitment website, with positions in Singapore, Jakarta, and Bangkok. Roles span ecosystem management, strategic analysis, product management, and business development sales.
For example, a business development lead position in the Jakarta office involves responsibilities such as developing business from scratch in sectors like dining and tourism, identifying key partners, and providing clients with integrated marketing solutions.
<figure id="attachment_149154" aria-describedby="caption-attachment-149154" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="wp-image-149154 size-large" src="https://console.kr-asia.com/wp-content/uploads/2024/07/TikTok-Local-Services-Jakarta-Business-Development-Lead-JD-1024x378.png" alt="Screenshot displaying the job description of a business development lead opening in TikTok’s Jakarta office." width="1024" height="378" srcset="https://console.kr-asia.com/wp-content/uploads/2024/07/TikTok-Local-Services-Jakarta-Business-Development-Lead-JD-1024x378.png 1024w, https://console.kr-asia.com/wp-content/uploads/2024/07/TikTok-Local-Services-Jakarta-Business-Development-Lead-JD-300x111.png 300w, https://console.kr-asia.com/wp-content/uploads/2024/07/TikTok-Local-Services-Jakarta-Business-Development-Lead-JD-768x284.png 768w, https://console.kr-asia.com/wp-content/uploads/2024/07/TikTok-Local-Services-Jakarta-Business-Development-Lead-JD-1536x567.png 1536w, https://console.kr-asia.com/wp-content/uploads/2024/07/TikTok-Local-Services-Jakarta-Business-Development-Lead-JD.png 1660w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-149154" class="wp-caption-text">Screenshot displaying the job description of a <a href="http://archive.today/2024.07.16-022852/https://careers.tiktok.com/position/7364338443478780187/detail">business development lead opening</a> in TikTok’s Jakarta office.</figcaption></figure>
From e-commerce to local services, ByteDance's ventures in the Chinese internet sector have demonstrated the value of these two monetization methods for a short video content platform. In 2023, Douyin's e-commerce gross merchandise value (GMV) reached RMB 2.7 trillion. According to LatePost, its local services business has also achieved a GMV of RMB 310 billion after three years.
TikTok's overseas growth mirrors Douyin's domestic success. According to YipitData, TikTok's global e-commerce GMV reached USD 13.6 billion in 2023, with over 90% contributed by Southeast Asia. Given the platform's local influence and the similarity of consumer markets, Southeast Asia is the ideal region to pilot local services.
Official data shows that Southeast Asia has nearly 700 million people, with over 50% under the age of 30. High penetration of online payments, unique culinary cultures fostered by the tropical climate, a thriving service industry due to cheap labor, and abundant natural and cultural tourism resources are all potentials for the local services sector.
whereRelatedArticle
However, the development of local services relies on robust infrastructure. A person close to TikTok revealed that the platform has long intended to enter local services overseas, but the local supply chain is challenging, hence the focus on building infrastructure first.
Southeast Asia's transportation and logistics systems are still underdeveloped, limiting the expansion of chain businesses and causing an immature supply side for local services. For instance, in 2023, the chain rate of dining establishments was only one-third of that in the US. A sizable number of dining outlets lag in hygiene and safety standards compared to those in more developed nations, lacking standardized and innovative new products.
The challenge for TikTok is substantial. Local services involve a significant amount of real location-based data and this need intertwines the digital platform more deeply with the local economies than its content and e-commerce arms. This deeper integration introduces additional regulatory risks, which could be a significant hurdle as TikTok expands its local services.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2857541368662660">article</a> was written by Zhang Rao for 36Kr.

TikTok breaks new ground in Southeast Asia with local services pilot

TikTok

Douyin

On-demand Services

E-commerce

Short Video

Logistics

Food Delivery

Grocery Delivery

Creative

Consumer Economy

Singapore

Malaysia

Thailand

Vietnam

Indonesia

… investment activities while continuing to deliver immersive, high-quality gaming experiences to players all around the world.

Mihoyo takes bold leap into investments to diversify beyond gaming

Gaming

Mihoyo

On July 4, the European Commission confirmed hefty import tariffs on EVs made in China, with negotiations continuing ahead of a definitive vote by member states in October on whether to lock in the rates for the next five years.
July 4 was the deadline for Beijing and Brussels to find a solution before the provisional tariffs kick in. Technical discussions with Chinese officials were held in Brussels beforehand, but they failed to yield a result.
The duties came into effect on July 5, but in the form of bank guarantees, which will only be collected if no agreement is reached in four months. The 27 EU member states is expected to cast an advisory vote on the measures that is nonbinding and only requires a simply majority. They will take a final vote in October on definitive duties that will be applied from early November, if no agreement is reached with China.
"Consultations with the Chinese government have intensified in recent weeks, following an exchange of views between executive vice president Valdis Dombrovskis and Chinese trade minister Wang Wentao," the EC said in a statement, with the aim of reaching "a WTO-compatible solution, which adequately addresses the concerns raised by the European Union."
The tariffs were announced on June 12 as the EC—the executive arm of the EU—sought to level the playing field for its companies after an investigation found that producers in China benefited from "unfair subsidies." Chinese-made EVs already face 10% EU import tariffs.
In response to the EC announcement, Chinese EV maker Xpeng Motors said it was studying the possibility of building local capacity in the EU which would allow it to avoid the duties, while Nio said it was assessing its market strategy and not ruling out price rises.
Although at least 15 countries representing 65% of the bloc's population have to support the tariff regime for it to be finalized and imposed for five years, analysts believe the EC is unlikely to roll back on its move.
"The commission doesn't really want to budge [on the tariffs], so it's really in China's court," said Gregor Sebastian, senior analyst at Rhodium Group.
While a mutiny by member states—such as Germany, Hungary and Slovakia who are anti-tariff—to veto the duties is unlikely, China could pressure them to push the EC to reach a solution in the form of import quotas, or lower duties, both of which are face-saving for both sides.
German Chancellor Olaf Scholz had been keen to find a resolution, given that Germany's industry is closely linked with China's. Germany's transport minister visited China in late June and called the duties a "destructive approach."
Italy, together with Spain and France, have been strong supporters of action against Chinese EV makers. Prime Minister Giorgia Meloni is expected to travel to China within weeks for a reset of relations after Italy pulled out of China's Belt and Road Initiative. Her trip there will be closely watched for any changes in Italy's approach to the EV saga.
How things unfold in France over the coming days could also have an impact on the EU stance. President Emmanuel Macron is facing a lame-duck presidency and the election result will have an impact on how internal EU negotiations go, analysts said.
German automaker association VDA called for a negotiated solution, saying tariffs would harm the EU's decarbonization goals, its companies and consumers, and, in some cases, could be higher for European carmakers in China than for Chinese companies.
Germany's <a title="" href="https://asia.nikkei.com/Business/Automobiles/German-automakers-pressure-EU-leaders-to-drop-China-EV-tariffs" target="_blank" rel="noopener">Volkswagen and BMW told Nikkei Asia</a> in June that they believe the import duties are a wrong move by the EU. Both have joint ventures in China.
Apart from those two companies, Sweden's Volvo is controlled by Geely, while the British MG brand is owned by SAIC Motor.
China's Ministry of Commerce said it hopes the EU will listen to voices within the bloc and carry out "rational and pragmatic" consultations, and avoid hurting mutually beneficial cooperation.
As retaliation for the tariff move, China has opened anti-dumping investigations into brandy and pork imported from the EU's 27 countries, acting on previous threats to do so. Commerce ministry spokesperson He Yadong said the pork probe came at the request of the domestic industry and would protect "stakeholders."
Dairy products and cars with large gasoline-powered engines could be next, according to reports in the state-backed Global Times.
Commerce ministry's He said in June that China reserves the right to file a lawsuit at the World Trade Organization, and "will take any necessary measures to firmly safeguard the legitimate rights and interests of Chinese companies."
Under the EC regime, BYD's electric cars will face the lowest additional import duties of 17.4%, because the company cooperated with the EC in its investigation.
The other rates previously announced were tweaked slightly downward due to clerical errors. Geely's EVs face 19.9%, slightly changed from 20%, while state-owned SAIC's models will be hit with 37.6% instead of 38.1%. Others will be subject to either a 20.8% or 37.6% rate, depending on their level of cooperation. Those are adjusted from 21% and 38.1% previously.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Economy/Trade-war/EU-presses-ahead-with-Chinese-EV-tariffs-as-talks-continue" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

EU presses ahead with Chinese EV tariffs as talks continue

Electric Vehicles

Mobility

Europe

… headlines:</h3>
<ul>
<li aria-level="1">HongShan, formerly Sequoia Capital’s China unit, reportedly raised RMB 18 billion (USD 2.5 billion) for its latest fund. Backed by the Hangzhou city government and several private and state-owned insurance companies, the new fund aims to invest in technology startups in China.</li>
<li aria-level="1">Partior, a fintech company facilitating real-time clearing and settlement over a unified ledger, announced the first close of a USD 60 million Series B round. The round was led by Peak XV Partners and included new investors Valor Capital Group and Jump Trading Group, alongside existing shareholders JP Morgan, Standard Chartered, and Temasek.</li>
<li aria-level="1"><a href="https://www.miridih.com/">Miridih</a>, known for its software-as-a-service design platform MiriCanvas, secured KRW 20 billion (USD 14.5 million) in a Series B funding round. The investors include Kiwoom PE, the Industrial Bank of Korea (IBK), Shinhan Venture Investment, and GN Tech Venture Capital.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.

Deals in brief: BluSmart raises pre-Series B funding, Alphabet in talks to acquire Wiz, seven China deals, and more

Google

Chinese electric vehicle champion BYD marked the opening of its first factory in Southeast Asia on July 4—a USD 486 million facility in Thailand's Rayong province—with hefty price cuts for local buyers.
The move, which has seen the Atto 3 SUV discounted by up to THB 340,000 (USD 9,234), reflects the fierce competition facing EV producers and other automakers in Thailand, where an economic slowdown and a rise in car loan rejections are weighing on sales.
But the factory is not intended to serve only the local market. Most of its 150,000 annual capacity would be exported elsewhere in Southeast Asia and to Europe, the company said when originally announcing the plant.
The opening also came on the first day that Chinese EV makers face new tariffs in Europe, one of China's most important export markets. The duties, levied in addition to the existing 10% tariff, are an attempt by the EU to even the playing field for its own brands against China's heavily subsidized automotive industry.
China has denied its use of subsidies is unfair, saying its EV industry has gained an edge thanks to its technology and supply chains. The additional tariff of 17.4% on BYD vehicles is among the lowest imposed by the bloc.
Analysts foresee a limited impact on Chinese carmakers, as only 10% of their exports went to western Europe between January and April. But that means more of the excess inventory that began piling up in China as domestic consumption slowed could spill into markets in its neighborhood, warn analysts and local industry players.
"China is still destocking. There might be more cars sent to Southeast Asia because they can't send them to Europe, and there is zero [additional] tariff in Thailand," said Krungsri Securities analyst Naruedom Mujjalinkool.
Chinese makers have made rapid inroads into Thailand's auto market thanks in part to low trade barriers. The Thai government offers reduced tariffs on finished cars and components imported by EV makers while they build local factories.
Thai drivers looking to switch to electric cars prioritize affordability and availability. EVs have also been the one bright spot for Thailand's weakening auto sector. New registrations of fully electric cars were up 31.64% between January and May from the same period last year, even as overall vehicle sales fell 23.8%.
On average, imported cars have comprised at least 30% of vehicles sold in Thailand each month this year.
At the end of last year, BYD had clinched 40% of the local EV market, helped by generous price offers and slick marketing by its official Thai distributor, Rever Automotive. Chinese peers Neta and Great Wall Motor trailed at 17% and 16%, respectively.
Neta recently announced a 50,000 baht price cut on its V-II SUV, an 8% discount. New models of BYD's Dolphin hatchback are already 18–26% cheaper than when it was launched in the second half of last year. BYD could offer even deeper discounts, as Thai prices are still about USD 2,700 higher than the domestic price in China.
BYD's factory in Rayong can produce up to 150,000 cars annually, but may not ramp up to that capacity in its first year. Total monthly output at competitors' local plants has been under 1,000 units, according to industry insiders. A BYD subsidiary is also building a THB 3.89 billion (USD 105.6 million) plant for electric and plug-in hybrid vehicle batteries before the tariff exemptions end in 2026.
In addition to pressure at home, Thailand's automotive sector is wary of losing market share to China in Australia, its most important export destination. Australia is set to enforce new vehicle efficiency standards in 2025, joining the vast majority of developed economies that already impose such limits. Last year, EV sales in Australia more than doubled, a worrying sign for Thailand's primarily internal combustion engine car exports. BYD was outsold in Australia only by Tesla.
Analysts at HSBC remain bullish in their outlook for BYD's sales volume and market share growth, despite lowering their net profit forecast for the company by 8%. "We believe peers cannot easily replicate the company's tech leadership, enhanced by a decade of innovation and unique vertical integration capabilities," they wrote.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Automobiles/Electric-vehicles/BYD-to-open-Thai-factory-as-new-EU-tariffs-on-China-EVs-kick-in" rel="noopener noreferrer" data-token-index="1">Nikkei Asia</a>. It has been republished here as part of 36Kr’s ongoing <a tabindex="0" href="https://www.kr-asia.com/nikkei-teams-up-with-36kr-in-asia-tech-news-coverage/" rel="noopener noreferrer" data-token-index="3">partnership with Nikkei</a>.

BYD to open Thai factory as new EU tariffs on China EVs kick in

<h3>HongShan raises RMB 18 billion fund amid challenging climate</h3>
HongShan, formerly Sequoia Capital’s China unit, has raised RMB 18 billion (USD 2.5 billion) for its latest fund, according to the Financial Times. Despite a challenging fundraising environment, this marks the largest fundraising by a privately-owned VC firm in China over the past year. The fund, backed by the Hangzhou city government and several private and state-owned insurance companies, aims to invest in technology startups in China.
The fund is smaller than HongShan’s USD 9 billion fund raised in 2022 but demonstrates the continued influence of its founder, Neil Shen. The new RMB fund allows for investments in sensitive technologies more easily compared to its USD fund, which faces stricter constraints due to geopolitical tensions.
<h3>Partior raises USD 60 million in Series B round</h3>
Partior, a fintech company facilitating real-time clearing and settlement over a unified ledger, has announced the first close of a USD 60 million Series B round.
The round was led by Peak XV Partners and included new investors Valor Capital Group and Jump Trading Group, alongside existing shareholders JP Morgan, Standard Chartered, and Temasek.
Partior plans to use the funds to enhance financial market infrastructure and improve global financial connectivity.
<h3>Miridih raises KRW 20 billion in Series B funding</h3>
<a href="https://www.miridih.com/">Miridih</a>, known for its software-as-a-service design platform MiriCanvas, has secured KRW 20 billion (USD 14.5 million) in a Series B funding round. The investors include Kiwoom PE, the Industrial Bank of Korea (IBK), Shinhan Venture Investment, and GN Tech Venture Capital.
The company plans to use the funds for talent acquisition and global marketing to accelerate its expansion.
<h3>Packworks secures USD 60,000 to support sari-sari stores</h3>
<a href="https://packworks.io/">Packworks</a>, a startup operating a B2B marketplace for fast-moving consumer goods (FMCG) targeting sari-sari stores in the Philippines, has received USD 60,000 from the Department of Science and Technology (DOST).
The funding, provided by the DOST-Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) startup grant program, will be used to develop a machine learning-powered marketing model that offers customized recommendations on sellable items and promotions for sari-sari stores. This feature will be launched on the startup’s Sari.PH Pro app.
whereAdBanner.Uptake
<h3>Recent deals completed in China:</h3>
<ul>
<li aria-level="1">UniXell Biotechnology, a company developing next-generation cell therapies based on human pluripotent stem cell technology, has raised RMB 10 million (USD 1.38 million) in a Series A funding round from CASVC. —<a href="https://36kr.com/newsflashes/2858913821231747">36Kr</a></li>
<li aria-level="1"><a href="https://www.quantentech.com/">Quanten Technologies</a>, a developer of automotive electric drive systems, has completed its angel round of funding. The investors include Innoangel Fund, Orinno Capital, Chengdu Capital Group, Panlin Capital, and Parkland Group. —<a href="https://36kr.com/newsflashes/2858650659736192">36Kr</a></li>
<li aria-level="1">Maize Yufeng, a germplasm R&amp;D company, has completed a pre-Series A round of financing, raising RMB 10 million. The investors include CITIC Agri Fund and Nest.Bio Ventures, while Yue Capital was the sole financial advisor. —<a href="https://36kr.com/p/2857573385735040">36Kr</a></li>
<li aria-level="1">Ligu Renewable Energy, a company specializing in hydrogen energy storage and renewable energy project development, has raised an eight-figure RMB sum in a pre-Series A round led by Ying Capital, with follow-on investment from K2VC. —<a href="https://36kr.com/p/2853514404760450">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Nika.co, Validus, Airs Medical, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1"><a href="https://www.nika.eco/">Nika.eco</a>, a Singapore-based climate tech company, has closed an oversubscribed seed funding round led by Silverstrand Capital, with additional backing from Timbul Ventures, DMV Investments, Orvel Ventures, and Ascend Network.</li>
<li aria-level="1">Validus Group, a Singapore-headquartered fintech company, has received USD 15 million in debt financing from Dutch development bank FMO, routed through its Indonesian arm, Batambu.</li>
<li aria-level="1"><a href="https://airsmed.com/en/">Airs Medical</a>, a healthcare-focused AI company, has closed a USD 20 million Series C funding round. This investment was co-led by BSK Investment and Shinyoung Securities.</li>
</ul>
If there are any news or updates you'd like us to feature, get in touch with us at: <a href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: HongShan raises RMB 18 billion fund, Partior and Miridih secure funding, four China deals, and more

East Asia

HongShan

South Korea

… can't form a complete loop.
Cars offer the best scenarios for multimodal interaction, comprising both interior and exterior interactions, and have the potential of high production volumes. Consumers' acceptance of multimodal large models will continue to grow. Inside the car, users can interact with multimodal large models. Outside, large models can extend the user's vision, providing information about traffic, buildings, text, and more.
<h3>36Kr: Is the 2025 end-to-end large model deployment for SenseAuto a must-win battle?</h3>
WX: Yes, there is no plan B. I often tell my colleagues that a team's life spans just six months—only by surviving beyond that can we sustain it. We have long-term goals for the next five to ten years, but our life is always just six months at a time.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2847854731971456">article</a> was written by Tian Zhe for 36Kr.

SenseAuto’s end-to-end AI model push: Wang Xiaogang emphasizes no plan B

China Tech

Autonomous Vehicles

Deep Tech

SenseTime

Artificial intelligence

Not everyone sees eye to eye with China's policies, but one thing is clear: when Beijing makes a promise, it delivers. That's why every new policy from the Chinese government gets scrutinized, with observers wary of the potential impacts.
While much of the recent spotlight has been on the <a href="https://www.economist.com/international/2024/04/25/the-tech-wars-are-about-to-enter-a-fiery-new-phase">tech rivalry</a> between China and the US, another significant initiative has been quietly progressing—Beijing’s vision of <a href="https://english.www.gov.cn/news/202307/19/content_WS64b71e58c6d0868f4e8dde72.html">"building a Beautiful China."</a>
Launched in 2012, this initiative focuses on ecological protection, sustainable resource use, and harmonious coexistence with nature. Last year, President Xi Jinping renewed interest in this vision at the National Conference on Ecological and Environmental Protection, emphasizing the next few years as pivotal. He called for a comprehensive approach to pollution reduction, green development, and environmental conservation, aiming for carbon neutrality by 2060.
In response, Chinese internet companies have been ramping up their sustainability efforts. Climate target setting has become more common, but the key is following through and achieving measurable outcomes.
Greenpeace recently analyzed the progress of 25 Chinese companies in its <a href="https://www.greenpeace.org/static/planet4-eastasia-stateless/2024/07/66902935-clean-cloud-2024-for-embargo.pdf">"Clean Cloud 2024"</a> report, focusing on energy usage. The report highlights that only eight out of the 25 companies, including tech giants like Tencent and ByteDance, have announced plans to fully switch to renewable energy sources by 2030. Six of these companies have also set carbon neutrality goals for Scope 1 and 2 emissions within the same timeframe.
As of June 2024, five of the analyzed companies reported annual renewable energy ratios exceeding 10%, compared to just one in June 2022. Alibaba Group, for example, purchased 1.61 billion kilowatt-hours of renewable energy in 2023, while Tencent’s contracted renewable energy exceeded 1.3 billion kWh in 2024. China Telecom and Chindata Group also reported significant renewable energy use. However, Baidu and VNET Group lagged behind, with renewable energy ratios of just 5.11% and 4.35%, respectively, in 2023.
A common strategy among these companies is deploying distributed photovoltaic projects at their data centers or operational buildings. Over 90% of the companies are doing this, and more than half are exploring advanced methods like source-grid-load-storage programs and distributed power trading to accelerate renewable energy adoption.
Despite some progress, there’s room for improvement. One major area where most companies fell short is Scope 3 emissions. Only Tencent has included Scope 3 emissions in its carbon neutrality goals, aiming for 2030. Disclosure of Scope 3 emissions is also lacking, with just nine companies providing data from 2022, compared to double that number disclosing electricity consumption and greenhouse gas emissions.
Additionally, the recent rise of generative artificial intelligence has been driving up computing power consumption, leading to higher energy demand.
whereRelatedArticle
The silver lining? China leads the world in renewable energy. It has cut its carbon dioxide emissions per unit of GDP by 34.4% and established the world’s largest carbon market. Its wind and solar power capacities are rapidly expanding and are <a href="https://globalenergymonitor.org/press-release/china-poised-to-double-wind-and-solar-capacity-five-years-ahead-of-2030-target/">expected to double by 2025</a>.
The main challenge now is efficiently channeling renewable energy from its sources to end users. China's vast geographical diversity and size mean considering factors like energy storage capacities, grid infrastructure, energy source accessibility, and, critically, cost. Ensuring renewable energy is as appealing, if not more so, than traditional nonrenewable sources is essential to maintain momentum toward a beautiful China and a greener future.

Are Chinese internet companies doing enough to achieve the “Beautiful China” vision?

Energy

Climate