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The Belt and Road Initiative (BRI), Chinese President Xi Jinping's signature international infrastructure building program, may have hit snags with some projects, but China's massive green energy push is helping it gain geopolitical and economic influence.
China is a global leader in developing technology aimed at reducing carbon dioxide and other greenhouse gas emissions. Chinese electric vehicles are increasing their market share in Europe and beyond, while Chinese solar panels and wind turbines are also winning customers worldwide.
Xi unveiled the Belt and Road, China's modern take on the ancient Silk Road, in 2013. The initiative aims to connect Asia and Europe through railways, ports, and other infrastructure projects, with construction led by Chinese companies. However, some projects have faced challenges, including delays and local protests.
One notable exception to these difficulties is China's decarbonization push. Chinese manufacturers of EVs are expanding rapidly in Europe. Last year, Chinese EVs captured 19% of the European Union market by unit sales. Transport &amp; Environment, a European think tank, forecasts this share will reach 25% this year.
Concerned about the sharp rise in Chinese EV sales, the European Union imposed additional tariffs in July. EU trade officials allege that Chinese EV makers benefit from massive government subsidies, undermining fair competition.
China's formidable presence extends beyond EVs: In 2021, Chinese companies accounted for 75% of solar panel production capacity worldwide. In the EU, imported Chinese solar panels accounted for 89% of all units installed last year, compared with just 7% for locally made panels.
Chinese manufacturers have also captured a significant share of the global market for wind turbines. According to the Global Wind Energy Council, an international forum for the wind energy industry, six Chinese companies ranked among the top ten suppliers of wind turbines by global sales last year.
In the first half of 2023, China stepped up investment in solar and wind power projects in developing countries, particularly in Asia and Africa, as part of the BRI. China's dominance in nearly all related technologies set off alarm bells at the International Energy Agency, which stresses the need to promote supply chain diversification.
One factor contributing to China's success in developing decarbonization technology and products is its large domestic market. Intense competition among Chinese manufacturers over cost and technology has driven innovation. Additionally, the government has actively promoted renewable energy, gradually transforming the country's power mix.
According to China's National Energy Administration and other sources, renewables made up 50% of the nation's power generation capacity in 2023, an increase of 21 percentage points from a decade earlier, surpassing the share of coal and other fossil fuels. While renewables include hydropower and other sources, it is solar and wind power that have driven this growth. Renewables generated 30% of China's total electricity output, compared with just over 20% in Japan and the US.
China "could become energy self-sufficient by 2060," said US investment bank Goldman Sachs in a March 2023 report.
In fact, China's carbon emissions may be reaching their peak, thanks to a sharp increase in renewable energy. "China is likely still on track to begin a structural decline in emissions in 2024," according to a report by Carbon Brief, a UK-based website that analyzes climate change issues.
whereRelatedArticle
China, the world's largest carbon emitter, has pledged to curb its emissions growth by 2030. With a significant rise in investments in renewables and energy efficiency, the country may achieve this goal ahead of schedule. However, international pressure on China could grow, as some experts argue its current pace of emissions reduction is insufficient to meet the Paris Agreement's target of carbon neutrality by 2050.
China's expanding role in decarbonization has increased its influence over the industrial policies of others, particularly in developing and emerging economies. There is concern that, if Beijing gains sway in these nations, it could undermine the power of the US and Europe, thereby enhancing China's geopolitical standing globally.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Datawatch/Decarbonization-now-drives-China-s-Belt-and-Road-push" 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>.

Decarbonization now drives China's Belt and Road push

Electric Vehicles

Deep Tech

Energy

Climate

China

… href="https://console.kr-asia.com/wp-content/uploads/2024/09/MiniMax-Hailuo-AI-English-Knights.mp4">https://console.kr-asia.com/wp-content/uploads/2024/09/MiniMax-Hailuo-AI-English-Knights.mp4</a></video></div>
Video generated by Hailuo AI in response to a prompt requesting “medieval knights in combat.”
To test whether specificity could improve results, a follow-up prompt for “two medieval knights in combat” was tested. The results were better, but still not quite there—some movements felt overly repetitive, and the pace was far too fast to pass as realistic.
<div style="width: 640px;" class="wp-video"><video class="wp-video-shortcode" id="video-150008-7" width="640" height="360" loop="1" autoplay="1" preload="metadata" controls="controls"><source type="video/mp4" src="https://console.kr-asia.com/wp-content/uploads/2024/09/MiniMax-Hailuo-AI-English-Two-Knights.mp4?_=7" /><a href="https://console.kr-asia.com/wp-content/uploads/2024/09/MiniMax-Hailuo-AI-English-Two-Knights.mp4">https://console.kr-asia.com/wp-content/uploads/2024/09/MiniMax-Hailuo-AI-English-Two-Knights.mp4</a></video></div>
Video generated by Hailuo AI in response to a prompt requesting “two medieval knights in combat.”
The current version of Hailuo AI can generate six-second video clips at 1280x720 resolution, running at 25 frames per second. The model is limited by the short duration of clips, though MiniMax has promised to address this with future updates. A new iteration of Hailuo AI is already in development, expected to offer longer clip durations and introduce features such as image-to-video conversion—something Kling AI already provides.
whereRelatedArticle
Founded in 2021 by Yan Junjie, former vice president and head of general AI technology at SenseTime, MiniMax has quickly gained a foothold in the AI industry. In March this year, reports emerged that the company raised at least USD 600 million from various investors, including HongShan, with Alibaba expected to lead the round. This adds to the USD 250 million MiniMax raised mid last year, backed by Tencent and other investors. The latest Alibaba-led round is said to value MiniMax at more than USD 2.5 billion.
MiniMax was also among the initial companies <a href="https://kr-asia.com/baidus-ernie-bot-among-eight-chinese-llm-products-approved-for-public-launch">approved</a> by Beijing to offer large language models (LLMs) for public use in August 2023, placing it among the leading AI firms in China as the country accelerates its focus on advancing AI capabilities.
Aside from Hailuo AI, MiniMax offers a range of AI solutions, including speech and language generation. Its Talkie AI app has been downloaded millions of times and was dubbed one of the “hottest entertainment apps” in the US by <a href="https://www.wsj.com/tech/ai/one-of-americas-hottest-entertainment-apps-is-chinese-owned-04257355">WSJ</a>.
With strong financial backing and a growing portfolio of AI tools, MiniMax’s advances will increase pressure on other companies in the AI race. As further refinements to Hailuo AI are made, it remains to be seen how far MiniMax can go.
<style>@media (min-width:991px){video{min-width:760px;width:100%}}video{min-width:unset;width:100%;height:auto}.wp-video{width:unset!important}.addcaption{font-family:sans-serif;font-size:14px!important;line-height:20px!important;padding:8px 0;margin-left:auto;margin-right:auto;color:inherit;border-bottom:1px solid #e8e8e8}.addcaption em{font-size:12px;color:inherit}</style>

MiniMax’s Hailuo AI text-to-video generator: How does it stack up?

East Asia

MiniMax

Artificial Intelligence

Video

Creative

… single-player gameplay and open-world exploration, the insider said, adding that Where Winds Meet would likely push for more development on the PC platform.
<figure id="attachment_149907" aria-describedby="caption-attachment-149907" style="width: 480px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-149907" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Where-Winds-Meet-1024x639.jpeg" alt="Promotional image of Where Winds Meet." width="480" height="300" srcset="https://console.kr-asia.com/wp-content/uploads/2024/09/Where-Winds-Meet-1024x639.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/09/Where-Winds-Meet-300x187.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/09/Where-Winds-Meet-768x479.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/09/Where-Winds-Meet.jpeg 1080w" sizes="(max-width: 480px) 100vw, 480px" /><figcaption id="caption-attachment-149907" class="wp-caption-text">Promotional image of Where Winds Meet. Image source: 36Kr.</figcaption></figure>
Compared to mobile gaming, the PC user base may be smaller, but player retention and spending power are typically higher. Developers also don’t have to share revenue with mobile platforms. High-quality developers, confident in their technology, are more inclined to shift their players to PC platforms. Games like Wuthering Waves and Zenless Zone Zero are leading the charge.
According to CGIGC, mobile games still dominate the Chinese market, but PC games have captured 22.93% of the market share in the first half of 2024, signaling a comeback.
While Tencent and NetEase are riding the wave of competition, not every company is faring as well. At Perfect World, layoffs are a constant concern. Xiaoxiong (pseudonym), who works on one of the company's older IPs, said that although his project has been relatively stable, colleagues are asking if layoffs are coming.
"If there’s a quota, we’ll eventually be hit," Xiaoxiong said. "Getting laid off might actually be better," he added. One of his former colleagues worked at a small company that couldn’t pay its staff. “When he left, the company still owed him two months’ wages.”
Another employee at a gaming company in Guangzhou mentioned that layoffs were taking place there, too. "The only secure job is the cleaner," he said. "Everyone else is at risk."
Reports from Entertainment Capital show that, over the past two years, layoffs have affected 7,400 people across 35 gaming companies, excluding giants like Tencent, NetEase, and Mihoyo. Between 2019–2021, these companies had been rapidly expanding.
As conditions worsen, industry professionals are taking matters into their own hands. Xiaoyou (pseudonym) left FunPlus after less than four months and joined NetEase. "When the market was good, everyone could make money with games," he said. "Now, if you’re not making premium games, you’re not making money."
Arthur also recently left Perfect World after years of service to pursue better opportunities and a higher salary elsewhere. Even though minigames are providing a lifeline for midsized game companies, the reshuffling continues.
"It’s easier for big companies and small companies," Xiaoxiong said. "The big ones have resources and advantages, while the small ones have lower costs and more motivation to try new things. But the older, listed companies in A-shares aren’t doing so well."
Now that the calm summer season has ended, an even fiercer arms race is brewing.
In this zero-sum game, those who lose will find it hard to get back in.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2936923221842820">article</a> was written by Lan Jie and Liu Shiwu for 36Kr.

Black Myth: Wukong stirs China’s gaming industry as a fierce “arms race” looms

Gaming

… B+ funding round. The round was led by SDIC Unity Capital, with participation from Hongsheng Capital, Oriza Holdings, and So-Young. Junhemeng plans to channel the funds toward advancing its product pipeline in the fields of medical and consumer health. —<a href="https://36kr.com/newsflashes/2943589207906947">36Kr</a></li>
<li aria-level="1"><a href="https://www.nullht.com/">Null Hypothesis</a>, a Shanghai-based developer of generative AI solutions for the healthcare and medical sectors, has completed a Series B funding round, securing tens of millions of RMB from ZBJL Capital. The investment will help the company optimize its AI-driven medical content solutions and deepen collaborations with major pharmaceutical and medical device companies. —<a href="https://36kr.com/newsflashes/2943561401768832">36Kr</a></li>
<li aria-level="1">LightX, an industrial-grade metal additive manufacturing company, has bagged tens of millions of RMB in a pre-Series A funding round. Shenzhen HTI Group led the round, with follow-on participation from Youde Capital, Rongxi Venture Capital, and others. The capital will go toward product development for the aerospace and energy sectors. —<a href="https://36kr.com/newsflashes/2943559087430528">36Kr</a></li>
<li aria-level="1"><a href="https://eliee.cn/">Eli</a>, a manufacturer of air suspension solenoid valves, has raised tens of millions of RMB in a Series A round of financing led by Richen Capital. —<a href="https://36kr.com/newsflashes/2943556926299011">36Kr</a></li>
<li aria-level="1"><a href="http://www.winscene.com.cn/Enindex.asp">Winscene</a>, a Shanghai-based advanced materials startup, has secured nearly RMB 100 million (USD 13.7 million) in a Series B funding round co-led by Glory Ventures and Shanghai Guohe Capital, with FG Venture and Jinshui Lake Venture Capital joining as follow-on investors. The funds will support the expansion of its production facilities and the growth of overseas R&amp;D centers. —<a href="https://36kr.com/p/2936957071514501">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>Trive Ventures, Zus Coffee, Genesis Alternative Ventures, and more led yesterday’s headlines:</h3>
<ul>
<li aria-level="1">Trive Ventures, a Singapore-based venture capital firm, launched a new fund to back early-stage companies leveraging artificial intelligence and blockchain technologies. The new fund targets startups in infrastructure, entertainment, and financial services globally.</li>
<li aria-level="1"><a href="https://zuscoffee.com/">Zus Coffee,</a> a chain coffee brand, raised MYR 250 million (USD 57.3 million) in funding from a group of investors led by KV Asia Capital, alongside Kumpulan Wang Persaraan (KWAP) and Kapal Api Group.</li>
<li aria-level="1">Genesis Alternative Ventures, a Singapore-based private venture debt firm, secured USD 125 million in commitments for its second fund. Investors from the firm’s first fund—including Aozora Bank, Korea Development Bank, Mizuho Leasing, and Silverhorn—renewed their support, while newcomers like Mizuho Bank and OurCrowd joined the fold.</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: Humble secures pre-Series A funding, Renewable Metals closes seed extension round, Maybank invests in Funding Societies, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Indonesia

Philippines

Southeast Asia

India

Oceania

… needs—it looks cooler and is easier to use. But beyond the visual appeal, these maps are also functional.
<figure id="attachment_149898" aria-describedby="caption-attachment-149898" style="width: 280px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-149898" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Amap-Gaode-3D-Map.gif" alt="GIF showcasing Amap’s 3D mapping technology." width="280" height="401" /><figcaption id="caption-attachment-149898" class="wp-caption-text">GIF showcasing Amap’s 3D mapping technology. Graphic source: Amap via 36Kr.</figcaption></figure>
Different destinations create different consumer needs, and Amap’s vast consumer data fuels the new “reachable zone” feature, which helps users quickly locate points of interest within their area.
This feature acts like a mini-radar, showing nearby restaurants, entertainment options, and amenities. Users can filter locations by walking distance, whether 5, 10, or 15 minutes away.
For instance, zooming in on Amap’s 3D map, nearby commercial areas appear as heatmaps. Users can then explore the details of these areas, including the floor plans and store locations of high-rise buildings.
<figure id="attachment_149899" aria-describedby="caption-attachment-149899" style="width: 280px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="size-full wp-image-149899" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Amap-Gaode-Reachable-Zone.gif" alt="GIF showcasing Amap’s “reachable zone” feature." width="280" height="400" /><figcaption id="caption-attachment-149899" class="wp-caption-text">GIF showcasing Amap’s “reachable zone” feature. Graphic source: Amap via 36Kr.</figcaption></figure>
Another standout feature is the AI navigator, designed to act as both a companion and assistant as users navigate or access location-based services.
Along with satellite SOS, offline navigation, and performance improvements, Amap’s latest version delivers full coverage while addressing concerns about battery life.
Data shows that the new version boosts app startup speed by 89%, improves overall performance by 90%, reduces storage usage by 50%, and conserves over 30% more battery than before.
<h3>Converting tech assets into time-saving tools</h3>
With the rise of AI and precision mapping powered by large models, the digital mapping industry is transforming. Amap is now becoming not only a critical geographic tool but also a potential solution for big data visualization systems.
With the introduction of large models, Amap’s ability to perceive spatiotemporal data is said to have improved significantly. For instance, roadside data captured by vehicle cameras, which wasn’t previously considered part of spatiotemporal data, can now be understood in that context thanks to multimodal technologies.
As an example, marathon event data—once just text and images—can now be converted into spatiotemporal data that highlights real-time road closures.
Amap has already shown its ability to calculate traffic light patterns based on vast amounts of user-generated data. Essentially, Amap’s system calculates the status of red and green lights by analyzing whether users are driving or waiting at intersections.
While large models are now used for these computations, spatial judgment still has room to improve.
Amap’s lane-level navigation sees beyond the horizon, detecting road conditions that are out of sight or camera range. It also gathers data from surrounding users, bypassing obstacles like large trucks or buses.
In summary, Amap’s dedication to AI and innovation is transforming technological assets into time-saving tools, forming a moat. Its streamlined tech review processes have become valuable assets, setting barriers that competitors will likely struggle to overcome.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2935119318686341">article</a> was written by Xiao Xi for 36Kr.

Amap’s latest update turns maps into smart, real-time companions for drivers

China Tech

Gaode

Amap

… to boost volumes still works. In January 2024, the GLE sold 6,630 units, driven by price fluctuations due to inventory clearance. To increase sales, Mercedes-Benz must continue pushing localization to cut costs.
The localization of the GLE will set the stage for Mercedes-Benz’s entire product lineup in China. This will be a powerful tool for boosting both sales and profitability.
To achieve these cost reductions, local suppliers will play a crucial role. Their enthusiasm for partnering with Mercedes-Benz stems not only from the company’s impressive sales volumes but also from the chance to upgrade their own brands and join the global supply chain.
In September 2024, Mercedes-Benz chairman and CEO Ola Kallenius visited China for the fourth time this year. According to insiders, one of the key reasons for his visit was a meeting with the Shanghai government.
Currently, Mercedes-Benz operates a digital R&amp;D center in Shanghai, focusing on smart driving and intelligent cockpits. Its vehicle R&amp;D and production facilities are located in Beijing. In the past, poor sales of its EVs caused Mercedes-Benz’s partners to lose confidence in its electric strategy.
In July, Shanghai government officials also met with Toyota to discuss the potential establishment of a Lexus EV plant in the city.
So, will Mercedes-Benz’s RMB 14 billion investment and Kallenius’s latest trip to Shanghai bring new hope for the company? The entire industry is watching closely.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2936722553019008">article</a> was written by Xu Caiyu for 36Kr.

Mercedes-Benz bets big on China with RMB 14 billion push

Transportation

Mobility

… the spotlight after <a href="https://thediplomat.com/2024/07/how-is-huawei-growing-despite-heavy-us-sanctions/">years of sanctions</a> that cut off access to global chip supplies. The Mate XT, built with homegrown tech, symbolizes Huawei’s comeback. It’s more than just a phone—it’s a point of <a href="https://edition.cnn.com/interactive/2019/05/business/huawei-cnnphotos/index.html">national pride</a>. In China, Huawei leads the foldable market, and this device reinforces that position.
Apple, on the other hand, is feeling the pressure. For the first time in years, Apple has <a href="https://www.globaltimes.cn/page/202407/1316908.shtml">dropped out</a> of the top five smartphone vendors in China. Domestic brands like Huawei, Vivo, and Honor have grown in stature, and Apple’s iPhone 16 series is its attempt to fight back. But with Huawei’s Mate XT grabbing attention, the competition is heating up.
whereRelatedArticle
The Mate XT has turned heads, no doubt, but analysts are cautious about its long-term impact. The foldable market, while growing, remains small—it accounts for just a minute portion of the total smartphone market, and the Mate XT’s high price and limited production won’t change that overnight. Yet, the trifold concept is a technical achievement, and as senior researcher Will Wong from IDC pointed out to <a href="https://www.reuters.com/technology/artificial-intelligence/apples-ai-gap-new-iphones-disappoints-china-users-huawei-threat-looms-2024-09-10/">Reuters</a>, “it’s telling the consumers that [Huawei’s] still the tech leader.”
Apple, meanwhile, is expected to keep its grip on the global market. The iPhone 16’s AI capabilities, ecosystem integration, and more affordable pricing will likely continue to drive sales outside of China.
<h3>Two companies, two futures</h3>
Huawei’s Mate XT and Apple’s iPhone 16 paint two very different pictures of where the smartphone market is heading. Huawei is betting on hardware innovation, hoping that foldables will catch on as a mainstream product. Apple is focused on refining its software, embedding AI deeper into everyday functions.
For Huawei, the Mate XT’s success isn’t just about sales—it’s about showing the world, and especially China, that it’s still in the game, sanctions or not. For Apple, the iPhone 16 is another step toward an AI-driven future, where the device doesn’t need to fold or flex—it just needs to work smarter.

Mate XT or iPhone 16: Huawei’s hardware gamble faces Apple’s AI evolution

Apple

Huawei

Japan, Korea, and the West

Smartphones

Smartphone

… href="mailto:hello@kr-asia.com">hello@kr-asia.com</a>.
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Deals in brief: Trive Ventures launches new fund, Zus Coffee bags MYR 250 million, East Ventures and Temasek Foundation wrap up CIIC 2024, and more

Malaysia

… hard to build a competitive edge with just good tea leaves,” Li explained. Ultimately, the aim is to create a unique product by blending the old and the new.
<h3>Beyond Chengdu: Li Shanshan Tea’s expansion plans</h3>
Li Shanshan Tea started in the heart of Chengdu’s Chunxi Road, a district known for balancing tradition and modernity. The combination of claypot tea and contemporary milk tea feels right at home here.
Interestingly, Li Shanshan Tea didn’t secure the busiest locations. Instead, it opted for a quieter corner. As a young brand, Li explained that the brand did not want to rely on a prime location to attract customers, but for the product to speak for itself. However, staying in a high-traffic district ensures that customers can easily stop by while shopping.
After establishing its first store, Li Shanshan Tea quickly expanded, opening seven locations in the Chunxi Road area alone. Surprisingly, this hasn’t hurt business. In fact, it has had an exponential effect, where all the stores benefit. On social media, customers now refer to Li Shanshan Tea as a must-try brand on Chunxi Road.
One reason for the brand’s rapid growth is the rising trend of Chinese-style milk tea. According to Li, the industry is moving from modern milk tea brands like Heytea toward more traditional Chinese-style beverages. “The more a brand connects with Chinese tea culture, the better it can grow,” he noted.
<figure id="attachment_149854" aria-describedby="caption-attachment-149854" style="width: 360px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-149854" src="https://console.kr-asia.com/wp-content/uploads/2024/09/Li-Shanshan-Tea-Claypots-683x1024.jpg" alt="" width="360" height="540" srcset="https://console.kr-asia.com/wp-content/uploads/2024/09/Li-Shanshan-Tea-Claypots-683x1024.jpg 683w, https://console.kr-asia.com/wp-content/uploads/2024/09/Li-Shanshan-Tea-Claypots-200x300.jpg 200w, https://console.kr-asia.com/wp-content/uploads/2024/09/Li-Shanshan-Tea-Claypots-768x1152.jpg 768w, https://console.kr-asia.com/wp-content/uploads/2024/09/Li-Shanshan-Tea-Claypots-1024x1536.jpg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/09/Li-Shanshan-Tea-Claypots.jpg 1280w" sizes="(max-width: 360px) 100vw, 360px" /><figcaption id="caption-attachment-149854" class="wp-caption-text">Photo source: 36Kr.</figcaption></figure>
The shift toward Chinese-style tea drinks is significant. Brands like SexyTea and Chagee are leading the charge, while regional brands like Tea'stone in Shenzhen, Chahuanong in Xi’an, Quchashan in Guiyang, and Chichas in Chengdu are also emerging. Herbal teas, inspired by traditional Chinese medicine, are becoming popular as well.
The shift toward health-conscious choices is fueling the rise of Chinese-style milk tea. More and more consumers are gravitating toward fresher ingredients, trimming down on sugar, and seeking out zero trans-fat options. Big-name tea brands are catching on, rolling out drinks brewed with original tea leaves and adding calorie and caffeine labels to cater to this growing demand.
Li Shanshan Tea’s approach has broadened its customer base, attracting not only younger crowds but also those over the age of 50. Li said older customers don’t feel out of place in its stores. “We don’t want to be a brand that only young people would visit,” he said. Younger customers, meanwhile, appreciate the traditional elements without feeling alienated.
Despite its success, Li Shanshan Tea is careful not to become just another passing fad. “Brands that last are validated by the market and accepted by consumers for its product,” Li said. “If you rely on trends, you’ll eventually fade.”
This year, Li Shanshan Tea has aggressively expanded beyond Chengdu. Since the second quarter, the brand has opened stores in Guiyang, Xi’an, Nanjing, Chongqing, and other cities, bringing its total to 29 locations. The current focus is on western and central China, with plans to expand eastward. Each new city gets a local office to ensure smooth operations.
Li Shanshan Tea’s store models vary depending on location. In residential areas, stores are larger with outdoor seating, while shops in commercial districts are designed for quick takeout. The typical store size is about 40–60 square meters, with drinks priced between RMB 15–20 (USD 2.1–2.8).
But expansion is just one part of its strategy. “Right now, our focus is on two things: product and service consistency, and staff training,” Li said. “Building a strong team doesn’t happen overnight.”
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2932575873571718">article</a> was written by Yang Yafei for 36Kr.

Li Shanshan Tea brings claypot milk tea tradition to Chengdu's hottest district