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… 10,000 (USD 1,400) for the first, second, and third versions, respectively, with more price hikes anticipated.
Li Auto has also bolstered its brand with intelligent driving, offering E2E capabilities across all Max models. As a result, user satisfaction has risen significantly.
In Q2, Li Auto reported that 70% of its vehicles priced above RMB 300,000 (USD 42,000) are equipped with AD Max, its advanced autonomous system, priced at RMB 20,000 (USD 1,400) more than the Pro model—reflecting a strong demand for intelligent driving features.
<h3>Buying GPUs and building data centers</h3>
In addition to car sales for data collection, automakers are rapidly building their GPU capabilities. Tesla, according to its Q3 earnings report, currently holds AI capacity equivalent to 67,500 Nvidia H100 chips—totaling about 67.5 exaflops. Tesla aims to increase this capacity to 88.5 exaflops with the addition of another 21,000 H100 chips by the end of October.
Beyond substantial Nvidia GPU acquisitions, Tesla is also advancing its in-house Dojo supercomputer, targeting a capacity of 100 exaflops, bolstered by 8,000 H100 GPUs expected by year-end.
This intensifying GPU competition is sparking reactions among Chinese automakers. Due to US export restrictions, Nvidia’s H100 is more challenging to acquire in China, pushing companies there to rely on the A800, a more affordable but less powerful alternative. Currently, Huawei leads in computing power within China, with 7.5 exaflops derived from both Nvidia GPUs and its own Ascend chips. While Ascend’s toolchain has limitations, Huawei’s proprietary supply secures steady progress in cloud processing.
Following Huawei, Li Auto holds 5.39 exaflops of capacity, achieved with approximately 10,000 Nvidia GPUs. According to industry estimates, attaining this capacity with A800 chips would require around 16,800 units. Cloud GPUs have become more accessible since last year, with A800 servers priced at around RMB 950,000 per eight-card module. Nevertheless, achieving such computational strength remains a significant financial undertaking for Chinese automakers.
Li Auto aims to reach 8 exaflops by the end of the year, recently partnering with Volcano Engine to establish a joint data center, with further expansion under consideration. Meanwhile, Xpeng has reached 2.51 exaflops—around 7,800 A800 GPUs—and targets 10 exaflops by 2025. Nio currently trails with 1.4 exaflops, or about 4,300 A800 cards.
For context, China’s national compute capacity was 246 exaflops as of June 2024 (FP32 basis), equivalent to roughly 492 exaflops at FP16 precision. Huawei, Li Auto, Xpeng, and Nio collectively contribute around 3.5% of this national total.
Amid this race, smaller companies are making strides through partnerships: IM Motors collaborates with Momenta, and Great Wall Motors has joined forces with DeepRoute.ai to accelerate market entry. The global AI model landscape has reached unprecedented scales, with some Chinese companies investing over USD 50 million just to enter the field. Leading Chinese AI firms are now building trillion-parameter models, fueled by extensive computing resources, with companies like Kimi and Stepfun assembling massive GPU clusters in collaboration with cloud providers.
A parallel shift is emerging in the automotive industry. Automakers are evolving from conventional car sellers into AI-driven tech companies, leveraging massive data and computing resources to push toward fully autonomous vehicles and embodied intelligence. In this intensely competitive, low-margin field, the pursuit of greater computing power is relentless, with the ongoing price war signaling that AI differentiation could be the ultimate key. For automakers, the high-stakes game of compute has only just begun.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3013286807217667">article</a> was written by Li Anqi for 36Kr.

China’s automakers pour billions into AI compute race, chasing Tesla’s lead

Xpeng Motors

Tesla

China

Artificial Intelligence

Autonomous Vehicles

Deep Tech

Mobility

… https://console.kr-asia.com/wp-content/uploads/2024/01/Luckin-Coffee-Kweichow-Moutai-Alcohol-Latte-225x300.jpg 225w, https://console.kr-asia.com/wp-content/uploads/2024/01/Luckin-Coffee-Kweichow-Moutai-Alcohol-Latte.jpg 1080w" sizes="(max-width: 360px) 100vw, 360px" /><figcaption id="caption-attachment-147157" class="wp-caption-text">Luckin Coffee’s “sauce-flavored latte” was crafted in collaboration with Kweichow Moutai. The beverage is infused with “moutai,” a type of liquor named after the town where it originated. Image source: Luckin Coffee.</figcaption></figure>
Li Yingbo, COO of Cotti, said in an interview that Cotti plans to adjust products according to local tastes, from coffee bean roast levels to sweetness. However, 36Kr noted that Cotti’s Middle Eastern menu largely mirrors its Chinese offerings, with milk-based coffees as the mainstay.
So far, Cotti’s adaptations for international markets have involved only minor changes. Meeting the Middle East’s specific demands may require more substantial R&amp;D investment and a broader selection of specialty offerings, which would add strain to its overseas supply chain.
Relying on low prices and broad market penetration alone may prove more challenging than anticipated for Chinese coffee brands seeking to establish a presence in the coffee-rich Middle East.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2997339623206787">article</a> was written by Ye Danxuan for 36Kr.

Chinese coffee brands set sights on Middle East as next big market

Luckin Coffee

Cotti Coffee

China Tech

MENA

Coffee

Middle East

… aria-level="1">Robopoet, a companion robotics company, completed an angel funding round in mid-2024, raising millions of RMB from undisclosed industry investors. The funding will advance the development of its companion robots, including its first product, with expectations for market release next year. —<a href="https://36kr.com/p/3015805862127111">36Kr</a></li>
<li aria-level="1">Zhongke Bosheng, an advanced thermoelectric semiconductor company, has closed a pre-Series A funding round, raising tens of millions of RMB. Casstar led the round, joined by a Jiangyin state-backed angel fund, Sukong Venture Capital, and Oriza Seed. The funds will expand production, boost R&amp;D, and strengthen its team. —<a href="https://36kr.com/p/3017273903359495">36Kr</a></li>
</ul>
whereRelatedArticle
<h3>81Ravens, Honor, Eikto Battery, and more made recent headlines:</h3>
<ul>
<li aria-level="1"><a href="https://81ravens.com/">81Ravens</a>, a Singapore-based game development company known for its arena shooter game <a href="https://paravox.games/">Paravox</a>, raised USD 4.5 million in a seed funding round co-led by Digital Hearts Holdings and Gree Ventures.</li>
<li aria-level="1">Honor, once a subsidiary of Huawei Technologies, reportedly attracted new investors, including China Telecom, CICC Capital, and Cornerstone.</li>
<li aria-level="1"><a href="https://www.eikto-battery.com/">Eikto Battery</a>, a developer of industrial lithium-ion batteries from Anhui, secured RMB 400 million (USD 56 million) in a funding round led by state capital investors including Hefei Industry Investment and Kaisheng Group. A RMB 3 billion (USD 420 million) industry fund backed by China Galaxy Investment (CGI) also participated.</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: Insider raises USD 500 million, UOB FinLab funds ASEAN green tech pilots, six China deals, and more

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Singapore

Indonesia

Philippines

Southeast Asia

… design team of five. “It was more intense than at other startups I’ve been with,” the employee added.
This feedback-driven approach has made Talkie and its domestic counterpart, Xingye, MiniMax’s most resourced projects, with roughly 300 employees working on them compared to fewer than 100 on Hailuo AI. Talkie’s rapid and user-centered design keeps it ahead of imitators.
Each Talkie employee can point to details that make the app distinctive—from the elegant black and gold color scheme to the thoughtfully designed star icons embedded throughout the app, character designs, and payment buttons. Talkie’s chat feature even formats user responses to include parentheses, mirroring users’ habits of adding side comments.
<figure id="attachment_150614" aria-describedby="caption-attachment-150614" style="width: 1024px" class="wp-caption alignnone"><img loading="lazy" decoding="async" class="size-large wp-image-150614" src="https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-1024x496.jpeg" alt="Screenshot displaying Talkie’s chat interface." width="1024" height="496" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-1024x496.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-300x145.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface-768x372.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/Talkie-Interface.jpeg 1280w" sizes="(max-width: 1024px) 100vw, 1024px" /><figcaption id="caption-attachment-150614" class="wp-caption-text">Screenshot displaying Talkie’s chat interface. Image source: 36Kr.</figcaption></figure>
By staying attuned to user preferences, Talkie has remained challenging to copy. “Most companies could recreate Talkie’s design, but they wouldn’t achieve the same results,” the product manager said. “Talkie works because it serves its specific audience, unlike other consumer AI apps that try to do everything but can’t retain users.”
<h3>A success hard to replicate</h3>
Despite Talkie’s triumphs, MiniMax’s reliance on the app as a cash cow reveals potential vulnerabilities. The first warning came in March 2023, when MiniMax encountered a significant hurdle: Glow, Talkie’s predecessor, was removed from app stores just six months after its release.
While no official reason was given, and AI licensing laws were still pending, many industry insiders and MiniMax staff believe Glow’s removal was linked to its loosely moderated user interactions. “Eighty percent of Glow users created borderline or explicit adult content with their AI characters,” a MiniMax product manager told 36Kr. This willingness to cater to user demand gave MiniMax’s consumer products an early boost but underscored the regulatory risks of similar models in the domestic market.
Adult content production is currently the most profitable commercial model for AI, according to one investor. Several AI products with international traction, like Replika and Civit AI, have also taken a relaxed approach to adult content. To maintain momentum, Talkie has shifted its focus to overseas markets with less stringent regulations. However, its domestic version, Xingye, hasn’t achieved the same level of success.
Launched in September 2023, Xingye mirrors Talkie in gameplay but with an upgraded interface. A former Talkie employee explained, “Talkie’s original design was kept simple for Western markets, where devices often lag behind Chinese models in performance. Adding extra visuals could create lag.” Despite these upgrades, Xingye hasn’t met MiniMax’s domestic expectations.
“To meet local licensing requirements, Xingye had to install a strict firewall for sensitive language,” the product manager said. “But this impacts user experience—users can’t vent or swear if they’re frustrated—the AI simply responds with ‘stay positive.’”
Data shows that female users are generally more inclined to pay for companion-style products. A former Talkie employee noted that Character.AI’s user base is 20% female and 80% male, whereas Talkie’s split is closer to 40:60. Xingye’s gender ratio, meanwhile, is 60% female to 40% male, highlighting different monetization challenges.
Even abroad, Talkie’s growth isn’t without risks. Anxiety about market risk has permeated MiniMax’s team since early 2024. “Talkie is MiniMax’s heartbeat,” one Hailuo AI employee said. “It’s risky when you depend so much on one revenue stream.” Concerns over a potential US ban prompted MiniMax’s leadership to keep Talkie’s US presence low-profile.
These concerns are well-founded. On October 17, <a href="https://us-east-1.envoy.cirrus.bloomberg.com/opinion/articles/2024-10-16/can-china-s-ai-dragons-make-it-in-the-us?srnd=opinion-technology-and-ideas">Bloomberg</a> reported that Chinese AI apps in the US might face scrutiny similar to TikTok due to escalating geopolitical tensions. In response, MiniMax has allocated resources to tightening Talkie’s content controls.
MiniMax employees confirm that Talkie’s responses to suggestive topics have become notably restrained due to new engineering measures. According to a product manager, users who seek out AI apps for such purposes typically don’t stay long, making them less ideal for retention.
Meanwhile, MiniMax has begun exploring ways to build the next Talkie. A Hailuo AI employee told 36Kr that MiniMax briefly experimented with adding companion features to Hailuo AI, but the results were underwhelming. Sources revealed that Hailuo AI’s ambiguous identity as both a productivity and companion tool led to team departures, and competitors like Kimi and Doubao have since entered the market, leaving Hailuo AI with low user retention.
whereRelatedArticle
MiniMax is also testing new growth avenues by expanding Talkie’s reach beyond the US and European markets.
One source said that, during this year’s spring, MiniMax CEO Yan Junjie mentioned a pivot to Southeast Asia in company meetings, stressing that Talkie would need local adaptations.
“English-speaking markets are saturated, but Asia’s niche language markets hold untapped potential,” the source said, adding that Southeast Asia also offers lower marketing costs and strong user engagement for nurturing games.
As MiniMax continues to expand Talkie’s reach, maintaining its growth trajectory will be key to securing a position in the highly competitive AI space.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3012129118414342">article</a> was written by Zhou Xinyu for 36Kr.

Talkie’s global traction puts MiniMax in AI’s top tier, but risks loom

East Asia

MiniMax

… message the policy sends.
A woman living in Seoul, who asked not to be named, ordered a jumpsuit from a Chinese e-commerce platform in late August, but found the material didn't meet her expectations. She contacted the platform for a possible return and was told she could keep the item and still receive a full refund.
"The refund-only policy is a little disturbing to me; it feels like they are mass producing cheap items without caring about shoppers' preferences, focusing more on quantity than quality," she said, adding that because the jumpsuit's material felt too cheap to give away, she ended up throwing it out.
"While it's convenient for me as a shopper since I don't have to repack and return the item, I do feel guilty about the environmental impact. I would feel better if the item could be resold through the platform," she said.
Back in China, there is also debate over the policy. Eleven posted an image on social media of the letter she received, sparking heated discussion over the pros and cons of returnless refunds.
"It's really hard to reach a consensus," she told Nikkei. "As a consumer, I was very upset to see the warning. If there are no quality issues, I wouldn't return the goods. But in the current environment, I also understand the sellers' frustration."
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Tech-Asia/China-s-e-commerce-industry-pushes-back-on-no-return-refunds" 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>.

China's e-commerce industry pushes back on "no-return" refunds

JD.com

Taobao

Tmall

Temu

E-commerce

Consumer Economy

Li Auto, a leading Chinese electric vehicle maker, is stepping up its overseas strategy, having just established a dedicated division for international markets. This new division is helmed by Wang Jin, who reports directly to senior vice president Zou Liangjun. Wang, who previously managed Huawei’s sales in Chile, joined Li Auto over a year ago and brings crucial experience to the role.
For now, Li Auto’s overseas team is small, with limited activity. But the company is focusing its initial efforts on the Middle East and Central Asia, especially the UAE and Saudi Arabia. Earlier this year, Zou announced a shift to a direct sales model in these regions, with plans to create a dedicated after-sales network. The company expects to launch deliveries in the fourth quarter, with flagship models, the L7 and L9, leading the way.
Until recently, Li Auto’s international sales relied on a parallel export model—an approach that, while practical, marks a transitional phase. With the recent formation of a direct overseas division, Li Auto is signaling a deeper commitment to international growth.
However, the company has temporarily shelved its plan to open its own overseas stores. Sources close to the matter say Li Auto hesitated, fearing that such a move might alienate local partners and potentially drive them toward competitors.
As China’s automotive market grows increasingly competitive, international expansion is rapidly becoming a must for leading Chinese automakers. For Li Auto, the initial groundwork in the Middle East and Central Asia through parallel exports has built brand awareness, giving it an advantage as it begins expanding into these markets.
Now, Li Auto is experimenting with a more adaptable approach, recruiting local dealers to manage sales in regions where demand is already strong.
“Direct sales networks come with many challenges. Li Auto is now working with dealers in markets where there’s proven demand,” said a source familiar with the company’s plans.
The company is also customizing its models for international markets. “At the beginning of the year, we completed a review of the modifications needed for the Middle East,” an insider said. Besides the Middle East, Latin America is emerging as a target market for Li Auto. With Wang’s background in Latin American markets, this region could provide a promising new growth channel.
Li Auto declined to respond to these recent developments when 36Kr reached out for comment.
Li Auto’s journey toward international expansion has seen twists and turns. In 2020, CEO Li Xiang said that overseas markets were a necessary next step for the company. But by July 2022, he signaled a more reserved approach, announcing that Li Auto would delay foreign market plans until at least 2025. During a meeting held in October the same year, an even more conservative outlook emerged, with the company suggesting it might wait until 2028 to enter global markets in earnest, relying on parallel exports for the time being.
This year, however, Li Auto’s stance has shifted once again.
The adjustment reflects Li Auto’s evolving growth strategy. Following challenges in fully electric vehicle sales, Li Auto revised its 2023 sales target from 800,000 to around 500,000 units. Sources say the company now anticipates a longer timeline to reach its next million-unit milestone, with a slower growth trajectory.
Intense competition within China is also a factor. Aito, backed by Huawei, is matching Li Auto in sales. Meanwhile, brands like Xiaomi, Leapmotor, and Xpeng Motors are expanding rapidly, gaining traction in the domestic market.
whereRelatedArticle
For Li Auto, overseas expansion could present a new growth path amid the tight domestic competition.
Since the start of 2023, numerous Chinese automakers have accelerated their overseas expansion. Nio, Xpeng, Leapmotor, BYD, Chery, SAIC MG, Changan, Geely, and Voyah have all launched models in Europe.
However, the European Union’s tariffs on Chinese vehicles have made European factories a costly requirement for Chinese companies. BYD, for instance, plans to establish its first European factory in Szeged, Hungary. Chery will repurpose a former Nissan plant, and SAIC, Geely, and others are exploring European manufacturing options. Leapmotor, meanwhile, has chosen to leverage Stellantis’ European sales network.
Li Auto remains cautious about entering the European market. “Europe and the US are red lines for our export operations,” an insider said.
For now, Li Auto prefers expanding into markets validated by parallel exports. In 2023, many of its vehicles reached the Middle East, Central Asia, and Russia. In Russia, a Li L9, priced at RMB 450,000 (USD 63,000) in China, reportedly sold for as much as RMB 900,000 (USD 126,000) after parallel export.
Earlier this year, CEO Li posted on social media that monthly parallel export volumes had reached around 3,000 units across Central Asia and the Middle East. If this pace continues, Li Auto’s annual exports could exceed 30,000 units, providing a solid growth foundation. By contrast, Chinese startups exporting to Europe report annual sales of around 3,000 units.
However, parallel exports come with risks. This year, Russia introduced regulations requiring taxes on vehicles shipped through Central Asia, which could cut into profit margins.
Li Auto is also exploring new Latin American markets, including Mexico, Brazil, and Chile, where demand shows promise. According to data from the China Association of Automobile Manufacturers, Russia, Mexico, and Brazil were the top three destinations for Chinese vehicle exports in the first half of 2023.
These new markets bring potential for growth but will also challenge Li Auto to evolve and strengthen its capabilities.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3014837753144836">article</a> was written by Li Anqi for 36Kr.

Li Auto expands overseas with dealer partnerships in Middle East, Central Asia

Electric Vehicles

Central Asia

… months prior, after which suppliers begin production—a process that can take four to five months. Finished goods then undergo sorting and distribution, requiring another month.
In contrast, Shein’s initial orders per SKU are typically just 100–200 items, significantly improving both efficiency and product variety. Wang said that his factory, initially accustomed to large, lengthy traditional orders, had to adapt quickly to Shein’s high turnover model. Early on, he almost lost Shein as a client.
To support suppliers in adapting to its operational model, Shein is said to provide training across areas like management, planning, production scheduling, stock operations, and quality assurance. Shein has even designed a three-stage supplier development program tailored to each supplier’s growth stage, offering targeted technical and resource support.
For trial-phase suppliers, Shein assigns mentors to provide one-on-one guidance, sharing professional advice and tips on avoiding pitfalls. For growth-phase suppliers, Shein offers training in supply chain integration, system support, and management practices. For core suppliers, Shein uses project-based training, allowing them to access additional cooperative benefits.
After five years, Wang has become one of Shein’s leading suppliers. His factory adapted to Shein’s flexible model and saw a near 150% sales increase during last year’s Black Friday sale. Many other Shantou-based businesses in lingerie and loungewear have undergone similar transformations.
Shantou, once known as “China’s underwear and loungewear capital,” supplies roughly 45% of the nation’s loungewear and 75% of related branded products. Wang’s factory, launched in 2010, grew into one of Shantou’s major apparel exporters, mirroring the boom and digitalization challenges of the local industry. With Shein’s steady demand, Shantou’s lingerie exports have flourished, leading to an industry-wide transformation.
This partnership exemplifies Shein’s decade-long role in upgrading the global fashion industry. Shein’s ongoing platform strategy extension helps a wider array of suppliers enter international markets.
<h3>Empowering more small businesses to go global</h3>
Since 2012, Shein has transformed itself from a single brand into a global platform, with site visits surpassing all other fashion websites as of September and third-quarter 2024. By the year-end, Shein is expected to be France’s top-selling fashion brand, outranking global icons Nike, H&amp;M, and Zara—companies founded 52, 77, and 49 years ago, respectively.
While Shein’s swift rise marks a significant achievement for a fashion brand, its platform strategy offers an even faster track for many vendors eyeing global markets.
During the early stages of this strategy, Shein invested substantial resources in vendor development, as well as warehouse and logistics center construction, securing long-term competitive advantages. In 2023, Shein announced plans to extend its outreach to the industrial belts in 500 cities in China, which would enable businesses across over 20 provinces in China to access global markets through cross-border e-commerce.
Beyond operating its brand, Shein began incorporating third-party products and brands years ago. In 2023, it further refined its platform strategy, developing a two-pronged approach with both its brand and platform businesses. The platform offers options for fully managed operations, semi-managed support, or self-management.
Under the fully managed model, Shein handles logistics, warehousing, marketing, and after-sales services, allowing merchants to focus on product development and supply. This option suits traders and manufacturers with existing supply strengths.
The self-managed model, meanwhile, is for businesses with cross-border e-commerce expertise, requiring them to independently handle selection, pricing, operations, logistics, and after-sales.
In contrast, the semi-managed model, introduced this year, allows vendors to manage inventory and pricing while Shein supports the rest. Launched in markets like the US, UK, Germany, and France, this model offers greater autonomy and lower entry barriers.
Compared to Shein’s direct support for its brand’s supply chain, the platform model allows for a broader industry impact, reaching more sectors. Although on-demand production in small batches has been attempted previously, Shein’s established platform, methods, resources, and traffic help empower a wider range of businesses to grow.
In 2023, Shein also launched an initiative aimed at supporting 10,000 global vendors, including those in China, achieve annual sales of USD 1 million, and to assist 100,000 small businesses in reaching USD 100,000.
At the recent 2024 China Cross-border E-commerce Trade Fair, Guangdong’s department of commerce named Shein’s initiatives as model cases in cross-border e-commerce.
As the cross-border e-commerce industry shifts from rapid expansion to a focus on quality and sustainability, Shein’s initiatives support industrial belts and boost vendors’ global competitiveness. By nurturing quality vendors and promoting premium products, Shein helps drive sustainable global expansion for more small businesses.
Currently, Shein’s 500-city initiative includes more than 20 product categories, such as apparel, footwear, accessories, home goods, beauty, personal care, electronics, and outdoor sports products. Entrepreneurs across these sectors, like Wu and Wang, are experiencing similar growth stories.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3006249826574850">article</a> was written by Wang Hanbo for 36Kr.

How Shein’s strategy pushed it past H&M, Zara, and the rest

Fashion

Creative

Retail

Consumer Services

… "rectification" process over its monopolistic practices is over. The crackdown on Alibaba, which followed founder Jack Ma's critical remarks about financial regulators in 2020, led to the scrapping of a blockbuster listing of fintech affiliate Ant Group and a record RMB 18.2 billion (USD 2.6 billion) fine against the e-commerce giant.
But when it comes to venture capital, the Chinese government is doubling down on the state-led approach. Premier Li Qiang chaired a State Council meeting on September 18 that studied initiatives to advance the development of venture capital. The meeting pointed out that "state capital needs to become more responsible, long-term, and patient capital."
The policy was reflected in the lobby of a "venture capital building" managed by the Shenzhen government. "Follow our party, start your business" read a slogan posted on the wall, along with the emblem of the ruling party.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Business/Technology/Tech-Asia/China-s-entrepreneurship-for-everyone-era-ends-as-state-sets-agenda" 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>.

China's "entrepreneurship for everyone" era ends as state sets agenda

Jess Ling, a 35-year-old in Malaysia, manages a day job in administration but finds a creative outlet as a content creator on Lemon8. For her, the app offers an easy entry point for new creators, largely thanks to its high engagement rates.
Jess is far from obsessive about her posts, usually sharing just once a month. Despite a modest following of under 1,000, her posts typically get around 100 views. Yet, between September 28 and October 4, after a month-long hiatus, one of her posts rocketed past 1,700 views.
Jess, who also shares content across similar platforms, told 36Kr that achieving such high engagement without regular updates is rare. Lemon8, she said, feels like a promising channel for creators—a sentiment that seems to be catching on as Lemon8 expands from Southeast Asia to the US and Europe.
A ByteDance platform, Lemon8 focuses on sharing lifestyle photos and videos in a dual-column feed. Its bright yellow palette and Xiaohongshu-inspired design have earned it the nickname “Xiaohuangshu,” or “little yellow book.”
In the US, Lemon8 has led the lifestyle category for iPhone apps over the past month and regularly ranks within the top 30 overall, according to Diandian. Though not yet a viral sensation, Lemon8’s steady growth has caught attention.
Bunny (pseudonym), a US-based marketer, believes that Lemon8’s affordable content creation and Xiaohongshu’s proven model in China have given the platform an edge in the US. “We’re already getting on board,” he said.
<h3>What is behind Lemon8’s appeal?</h3>
Locally tailored content plays a major role.
For instance, Nini (pseudonym), a Malaysian user who speaks with a strong Southeast Asian accent, uses popular Xiaohongshu and Douyin phrases like “sisters” and “scoring deals.” On Lemon8 and TikTok, she often incorporates Malaysian slang, such as “gou li,” which she described as similar to “amazing.” Nini values Lemon8 for its international flavor, with content primarily in English and Malay. “Thais, Indonesians, and Malaysians are all on it,” she said, adding that she frequently browses for posts on budget finds, gossip, food, and travel tips.
Meanwhile, Endia, a US-based Lemon8 creator with over 10,000 followers, shared with a fellow creator that beauty and skincare content performs exceptionally well.
Ling and Nini both appreciate Lemon8’s sleek, user-friendly templates, which they describe as “very Instagram.” Last November, Lemon8 added an artificial intelligence-driven photo studio with features like facial analysis, skin assessment, body evaluation, and an idea notebook, aiming to draw more female users.
Yet, these features alone don’t fully explain why Lemon8 has thrived in a crowded social media landscape.
Ling credits TikTok as a key source of Lemon8’s traffic, noting that creators can post their Lemon8 content directly to TikTok. Both platforms offer one-click sharing, and TikTok even allows users to link their Lemon8 profiles for easy cross-promotion. On TikTok’s “For You” page, content tagged “#Lemon8” has surpassed 4 billion views, with many TikTok influencers receiving invitations to join Lemon8.
In many ways, TikTok is Lemon8’s growth engine.
The app’s recent surge in downloads also ties to its increased advertising. According to App Growing, Lemon8’s daily ad volume in October tripled from the same time last year. Users who spoke to 36Kr reported seeing frequent Lemon8 ads on Instagram and Facebook.
Data.ai indicates that Lemon8 has reached over 56.1 million global downloads. As of September, Thailand was its largest market, with active users comprising 36.18% of the total, followed by the US at 22.13%. Southeast Asian users drive engagement, while US users represent the app’s next growth wave.
<h3>An app inspired by Xiaohongshu, but not from Xiaohongshu</h3>
So why does a Xiaohongshu-like platform come from ByteDance?
Xiaohongshu has, in fact, launched several international products, including Uniik in Japan (February 2021), Spark in Southeast Asia (April 2022), and Catalog, a lifestyle-sharing app in Europe and the US (November 2022). Each echoes Xiaohongshu’s design and user experience.
Jae (pseudonym), who led Xiaohongshu’s overseas product Spark from 2022–2023, witnessed its launch and eventual decline. She told 36Kr that Xiaohongshu recently outsourced its latest overseas app, S'more, a review platform, to a third-party team in March.
Looking back on Lemon8, Jae, who left Xiaohongshu nearly two years ago, is still frustrated, noting that she and former colleagues refer to it as a “copycat.”
Three years ago, Jae initially felt uneasy about Lemon8, but over time, she and her team focused on replicating Xiaohongshu’s domestic success abroad. In retrospect, Xiaohongshu’s overseas apps and Lemon8 never even had a direct faceoff.
Xiaohongshu, however, did have a model to learn from: TikTok.
Jae recalled that one of her four product managers and many engineers had previously worked at ByteDance. In Xiaohongshu’s overseas strategy, the company sought to incorporate some of TikTok’s features, including live commerce.
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For TikTok, Lemon8 is more of a complement than a competitor, reaching new audiences and engagement that TikTok itself may not fully capture.
In contrast, while Lemon8 capitalizes on TikTok’s reach, aggressive ads, and Xiaohongshu’s model, Xiaohongshu’s subdued approach has led some users to doubt Spark is even its product, mistaking it for a knockoff. Jae cited several reasons for Xiaohongshu’s international struggles, such as limited local expertise and unclear objectives.
In the end, Xiaohongshu’s apps like Uniik and Spark faded, while Lemon8 established itself in Southeast Asia and the US, leveraging Xiaohongshu’s playbook.
Yet, Xiaohongshu still resonates among overseas Chinese users, with over 1.5 million in Malaysia alone in 2022. Jae shared a story of one former student who, after graduating, went full-time on Xiaohongshu and now earns over RMB 1 million (USD 140,000) annually through brand sponsorships.
Whether Lemon8 will reach TikTok-level success remains uncertain, especially with Instagram’s billion-strong user base.
For now, Lemon8 rides a wave of traffic but needs time to show it’s more than a passing trend.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/2997661048630920">article</a> was written by Lan Jie for 36Kr.

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