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On November 7, iFeng Technology (Phoenix New Media) reported that NetEase Games has undertaken an internal investigation into alleged corruption, zeroing in on several senior executives within its marketing division. Among those questioned is the general manager of marketing at NetEase Games, along with several others who have been taken in for investigation.
“This is still in its early stages, and the results will take some time,” said a NetEase employee, who added that the marketing department is vast, encompassing various units like the distribution channel center and other marketing branches.
Rumors circulating in industry chat groups hint that the investigation could involve sums totaling in the hundreds of millions of RMB. The scope appears to extend to several high-ranking figures.
Amid the speculation, executives Wu Xinxin and Zhang Haixing have posted cryptic updates on social media, which some readers interpret as signaling their well-being.
36Kr reached out to NetEase for comment, but the company has not yet responded as of publication. The news outlet will continue tracking developments.
NetEase Games began a series of internal audits in 2023, according to 36Kr. Around this time, payment procedures within the marketing department reportedly became stricter.
According to a NetEase employee, the department’s marketing campaigns require payments to multiple suppliers, which raised concerns over potential bribes and abuse of power. This focus aligns with recent tightening of payment procedures within the department.
Earlier this year, several executives reportedly left the company amid investigations, a trend that may tie into the ongoing corruption probe, which is said to span other departments beyond marketing.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3026191720637705">article</a> was written by Liu Shiwu for 36Kr.

NetEase Games investigates top marketing execs in corruption probe

NetEase

China Tech

Gaming

Creative

China

… first- and second-tier cities, especially young urban women, form the core demographic.
"To achieve a sense of companionship, consumers have shifted from functional needs to emotional needs. It’s no longer just about features,” a source at Hisense said.
However, since their launch, companion machines have faced some skepticism on social media. Critics argue that they’re essentially oversized portable tablets with limited innovation, labeling them an <a href="https://thechinaproject.com/2023/04/21/stupid-tax-phrase-of-the-week/">“IQ tax”</a> product.
A Hisense representative addressed this perception, acknowledging it as a result of the category’s early development stage, where many devices appear similar. “While products from different manufacturers may look alike now, unique selling points will emerge as companies advance their technologies.”
<h3>An experiential device with expanding appeal</h3>
Companion machines are clearly an experiential product.
Unlike brands focusing solely on online sales, Hisense introduced the X7N in its offline experience stores immediately after launch. According to a Hisense representative, many users feel more inclined to buy after testing the device. “They realize it’s more than just a mix of a TV and tablet.”
With this insight, Hisense has expanded the number of offline stores offering demo units, targeting high-traffic areas in major cities. Nearly 1,000 units are now available across the country.
This offline strategy is bolstered by Hisense’s extensive after-sales network, which includes over 2,000 service centers in China. Orders are fulfilled directly from these centers, with installation services available. Should repairs be needed, technicians provide onsite support, reducing wait times and eliminating shipping.
While most units are still sold online, offline sales are gaining traction and are expected to become a critical growth channel.
<figure id="attachment_150625" aria-describedby="caption-attachment-150625" style="width: 640px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-150625" src="https://console.kr-asia.com/wp-content/uploads/2024/11/Hisense-X7N-1024x597.jpeg" alt="" width="640" height="373" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/Hisense-X7N-1024x597.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/Hisense-X7N-300x175.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/Hisense-X7N-768x448.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/Hisense-X7N-240x140.jpeg 240w, https://console.kr-asia.com/wp-content/uploads/2024/11/Hisense-X7N.jpeg 1280w" sizes="(max-width: 640px) 100vw, 640px" /><figcaption id="caption-attachment-150625" class="wp-caption-text">Image source: Hisense.</figcaption></figure>
As a new type of smart display, companion machines are gradually changing lifestyles. However, Zhang told 36Kr that current prices ranging from RMB 4,000–7,000 (USD 560–980) can deter first-time buyers.
Xiao noted that companion machines’ main advantages currently lie in hardware design and quality control. Hisense, for instance, is among the few brands that designs and manufactures its devices in-house, ensuring quality standards.
R&amp;D isn’t cheap. “Since production hasn’t yet scaled, we need dedicated molds and production lines for this new category. Some brands use shared molds to cut costs, but Hisense takes a higher-cost, more responsible approach,” a Hisense representative shared.
As more brands and models enter the market, it’s evident that companion machines are evolving from niche products to mainstream essentials.
Beyond technical specs, these devices center around creating meaningful experiences. Imagine returning home after a long day and moving the companion machine to the kitchen to catch up on a show while cooking. Later, it can guide a workout session, and before bed, angle down for a documentary. These interactions reflect a level of convenience and emotional connection that simple hardware upgrades can’t replicate.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3013511375529216">article</a> was written by Huang Nan for 36Kr.

Starting at RMB 4,000, “companion machines” open new revenue streams for TV giants

Entertainment

Japan’s push into tech and innovation is making waves with <a href="https://www.innovation-osaka.jp/hackosaka/en/index.html">Hack Osaka 2024</a>, where the spotlight will shine on pioneering startups and international partnerships.
Organized by Osaka Innovation Hub in collaboration with Japan's Urban Innovation Institute, the Japan External Trade Organization (JETRO), and Osaka Business Development Agency (OBDA), Hack Osaka is set for November 26 with the theme “Link Innovation to Our Future.” The event will draw a spectrum of voices—from rising startups like <a href="https://www.heralbony.jp/en">Heralbony</a>, the first Japanese company to win an LVMH Innovation Award, to Nvidia, which will discuss its support for Japan’s artificial intelligence ambitions.
Emerging innovators, including <a href="https://www.rutilea.com/en">Rutilea</a> CEO Takafumi Yano and <a href="https://datagrid.co.jp/">Datagrid</a> CEO Yuki Okada, will join the event, with 36Kr Global partner Robyn Tan also expected to contribute to the conversation.
Now in its 12th year, Hack Osaka reflects Kansai’s transformation into a hub for innovation. The event also aligns with the region’s broader vision: fostering partnerships that propel startups into global markets and cultivating homegrown unicorns.
Hack Osaka 2024 promises a dynamic showcase of innovation, with Kansai’s strengths in areas like clean energy and health tech setting the stage for over 70 startups tackling critical global challenges. This year’s lineup will feature top international names like logistics leader Lalamove, innovation intelligence platform <a href="https://kr-asia.com/the-hidden-power-of-patents-and-patsnaps-usd-100-million-milestone">PatSnap</a>, and graphene sensor developer <a href="https://grapheal.com/">Grapheal</a>, among others.
Attendees can look forward to a packed agenda, including the “Get In The Ring Osaka” pitch battle, a “speed dating” session connecting startups with investors, and insider perspectives on scaling globally from Australian unicorn <a href="https://synchron.com/">Synchron</a> and MedTech Actuator, a leading accelerator in health, medtech, and biotech.
The event also offers a unique look into the OIP Startup Acceleration Program, as early-stage startups from the program’s 17th cohort debut their latest developments. Meanwhile, “Start Line Osaka: Beyond Borders” will invite young, globally minded entrepreneurs to showcase real-world solutions and receive hands-on feedback.
As <a href="https://www.expo2025.or.jp/en/">Expo 2025</a> nears, Hack Osaka’s momentum reflects Kansai’s commitment to becoming a global innovation nexus. With backing from organizations like JETRO and alignment with Japan’s five-year, JPY 10 trillion (USD 65 billion) initiative, the event underscores Osaka’s aspirations as a premier destination for tech collaboration.
<h3>Event details</h3>
<ul>
<li aria-level="1">Date: Tuesday, November 26, 2024.</li>
<li aria-level="1">Time: 10:30 a.m. to 6:00 p.m, Osaka time (GMT+9).</li>
<li aria-level="1">Venue: <a href="https://www.congre-cc.jp/en/#directions">Knowledge Capital Congres Convention Center</a>, Osaka, Japan (hybrid format, attendees can participate in-person or online).</li>
<li aria-level="1">Registration: Free and open to the public.</li>
<li aria-level="1">Language: English and Japanese (English interpretation available).</li>
</ul>
Hack Osaka 2024 isn’t just an event—it’s a statement of Osaka’s ambition to drive change. For startups, investors, and tech pioneers, this is a chance to connect, innovate, and influence the future.
Join the conversation on November 26 and help shape what’s next alongside the global innovators set to gather at Hack Osaka.
<a href="https://lu.ma/oqwxcn1g">Register to attend Hack Osaka 2024, either in-person or online, by visiting this page.</a>
This article was published in partnership with Osaka Innovation Hub. 36Kr Global and KrASIA are media partners for Hack Osaka 2024.

Nvidia, Heralbony, and global tech leaders to converge at Hack Osaka 2024 to fuel innovation

Nvidia

Japan

… relationships with luxury department stores and duty-free retailers, an experience that shaped his broad view of Estee Lauder’s distribution strategy.
At the onset of the pandemic, de La Faverie recognized the transformative potential of social media and e-commerce in retail. In a podcast, he remarked that while in-store shopping would eventually rebound, certain changes were here to stay.
Confronting the issue of “over-distribution” in Western markets, de La Faverie pointed to the untapped potential in China’s smaller cities, where online sales are increasingly crucial. He anticipated that online channels could eventually drive 50–60% of Estee Lauder’s sales in China, around 40% in the US, and roughly 30% in Europe.
To meet these targets, however, de La Faverie noted that it would take more than simply listing products online. Estee Lauder, he argued, would need an entirely new approach to connecting with consumers—beyond just lowering costs or boosting marketing efficiency.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3016267636434432">article</a> was written by He Zhexin for 36Kr.

Estee Lauder names new CEO, pivots from tradition toward e-commerce and emerging markets

E-commerce

Retail

Consumer Economy

… cancel auto-renewals for apps.
The investment in AI is considerable. According to Vivo’s global AI research institute, the company’s cumulative spending on AI exceeds RMB 23 billion (USD 3.2 billion). Zhao said that Honor’s AI experience surpasses Apple’s in the Chinese market, similar to the advantage Apple once had over Android in connectivity.
<figure id="attachment_150633" aria-describedby="caption-attachment-150633" style="width: 720px" class="wp-caption aligncenter"><img loading="lazy" decoding="async" class="wp-image-150633" src="https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-1024x448.jpeg" alt="" width="720" height="315" srcset="https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-1024x448.jpeg 1024w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-300x131.jpeg 300w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-768x336.jpeg 768w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison-1536x672.jpeg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/11/Xiaomi-15-Apple-iPhone-16-Comparison.jpeg 1920w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption id="caption-attachment-150633" class="wp-caption-text">Chinese competitors like Xiaomi have increasingly used Apple’s iPhone 16 as a benchmark for describing model specifications and new features. Image source: 36Kr.</figcaption></figure>
<h3>Price increases amid supply chain strains</h3>
In October, flagship models from Vivo, Xiaomi, Oppo, Honor, and OnePlus saw price hikes, ranging from RMB 100–300 (USD 14–42).
An industry insider attributed the hikes to inflationary pressures from rising interest rates and geopolitical conflicts, which drove up the cost of materials like nickel and chromium by at least 5%. Among components, processors and memory experienced the largest price jumps. Analyst Kuo Ming-Chi noted that the new Snapdragon 8 Gen 4 processor now costs USD 180 per chip—a 15% increase.
Memory prices have also hit a two-year high, with the price of 1TB flagship models rising by RMB 500 (USD 68).
Despite some brands cutting back on features, such as haptic engines, fingerprint scanners, and dual speakers, flagship models have largely retained their specifications. “Supply chain price hikes are squeezing everyone,” an industry expert said.
The competition between Android and Apple phones in China is intensifying, with recent data indicating a shift. Counterpoint’s Q3 2024 report shows Apple’s market share fell by 2.6% year-on-year to 13.5%, while domestic brands gained: Vivo’s share rose by 10%, Huawei surged by 30%, and Xiaomi grew by 13%, though Oppo and Honor saw slight declines.
October’s flagship launches were pivotal for each brand, with entry-level models positioned against the iPhone 16 Pro and higher-end models taking on the iPhone 16 Pro Max.
Chinese brands are targeting Apple’s core user base: standard iPhone users who are increasingly upgrading to Pro and Pro Max models. Market data shows a 44% year-on-year increase in iPhone 16 Pro and Pro Max sales—the very segment Chinese brands are now vying to capture.
As China’s smartphone market grows tighter and supply chain pressures mount, Chinese brands have little room for a gradual approach. The battle for high-end market dominance is on, and they are all in.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3014364182619657">article</a> was written by Qiu Xiaofen for 36Kr.

Chinese smartphone giants unite to challenge Apple’s grip on the high-end market

Apple

OPPO

Japan, Korea, and the West

Deep Tech

Smartphones

Smartphone

… https://console.kr-asia.com/wp-content/uploads/2024/11/Station-Ai-Event-1536x1024.jpg 1536w, https://console.kr-asia.com/wp-content/uploads/2024/11/Station-Ai-Event.jpg 1920w" sizes="(max-width: 720px) 100vw, 720px" /><figcaption id="caption-attachment-150661" class="wp-caption-text">Station Ai hosts a variety of events, from small gatherings to large conferences.</figcaption></figure>
whereRelatedArticle
<h3>Strengthening ties with international startups</h3>
Station Ai’s vision includes fostering global innovation by building connections with international startups. The center offers resources to foreign startups entering the Japanese market and facilitates joint ventures with Japanese companies. Currently, Station Ai partners with organizations in nine countries and 21 universities and research institutions. At the opening event, representatives from the National University of Singapore, Shanghai Jiao Tong University, and Tus-Holdings of Tsinghua University Science Park underscored the center’s international reach. Aichi is increasingly seen as an entry point for foreign startups looking to establish a presence in Japan.
Despite this promising start, Hirotaka Sahashi, CEO of Station Ai, acknowledged ongoing challenges.
Speaking in Japanese, Sahashi said, “Transforming Aichi, once seen as barren ground for ventures, still presents many hurdles. We have the infrastructure in place, but now it’s time to enhance our services and content.” He added that strengthening international partnerships and boosting foreign startup occupancy are top priorities.
With a mission to nurture startup innovation, Station Ai aims to invigorate the regional economy and foster new industries in the years to come.

Aichi unveils Station Ai, Japan’s largest innovation hub, targeting Asia’s startup future

From delivery services to financial products, a growing number of Chinese and Hong Kong businesses have stepped up operations in the Middle East amid growing geopolitical tensions with the West.
The region's growing population and favorable industrial policy are among the pull factors as Western markets, in particular the US, appear challenging after Washington began imposing sanctions on Chinese entities under national security laws.
Chinese and Hong Kong business executives who have been visiting the Middle East the past two years are beginning to see some results, thanks to policy support from Chinese authorities.
A growing number of Chinese technology and electric vehicle companies have gained a foothold in the Middle East under China's Global South strategy aimed at forging closer ties with developing economies, according to Bill Qian, chief investment officer of Abu Dhabi-listed crypto mining and blockchain company Phoenix Group.
"The US is the hardest," said Qian, summing up the freedom of Chinese companies to operate abroad. "As for Europe, since it's not a single market, it depends on how you navigate" each country, added the CIO, who relocated from China to the United Arab Emirates in 2021 when he was in charge of mergers and acquisitions for blockchain company Binance.
Qian and other Chinese founder-backed crypto exchange platforms have established footholds in the Middle East, enticed by investor-friendly regulatory frameworks. The footholds give them an option other than Hong Kong, the only Chinese city that allows crypto trading.
AIFT, a Hong Kong-licensed virtual insurer formerly known as OneDegree, announced in September that it had obtained approval through a Dubai entity to provide an insurance product for licensed Web3 platforms or blockchain technology-enabled internet services. Dubai Insurance, AIFT's partner in the emirate and one of its four shareholders, is also keen to work with other Chinese companies looking to expand in the Middle East, Abdellatif Abuqurah, the insurer's CEO told Nikkei Asia in Hong Kong recently.
"There are certainly many interactions among politicians and businessmen," said Alvin Kwock, CEO of AIFT who commended the increase in flight frequency between Hong Kong and the Middle East compared to a year ago.
Hong Kong regulators are actively facilitating closer ties with the Middle East. In his policy address in mid-October, Chief Executive John Lee vowed to enhance hospitality services such as providing information in Arabic and halal food to visitors from the Middle East and Southeast Asian countries. Securities officials have begun closer communications with their Middle East counterparts with the aim of tapping opportunities in each other's market.
China's outbound direct investment rose 13.2% from the previous year to USD 85.3 billion in the first half of 2024, according to consultancy Ernst &amp; Young (EY). Greenfield investments in electric vehicles and digital infrastructure are among the projects Chinese companies are pursuing in Southeast Asia and Middle East regions under China's Belt and Road Initiative (BRI), EY said, citing large market potential and open attitudes toward foreign investors.
For Middle Eastern investors looking for opportunities in Hong Kong and the mainland, the primary goal is to attract technology, talent and capital to their home markets, businesses executives say.
"We are building the gateway, and it would be a near-future thing to attract more investments from the Middle East into the mainland," Ding Chen, CEO of CSOP Asset Management in Hong Kong told Nikkei Asia in an interview late last year. The company manages the Hong Kong-listed CSOP Saudi Arabia exchange-traded fund, which tracks the country's equities. Saudi Arabia's sovereign wealth fund, the Public Investment Fund, is an anchor investor in the ETF.
Chinese businesses remain committed to the Middle East despite rising competition. This month, a leading Chinese tech company, Meituan, launched the Keeta delivery service in Riyadh, Saudi Arabia. Hong Kong's CSOP is preparing to list an ETF in the Middle East that tracks equities listed in the Chinese city.
whereRelatedArticle
The Executive Centre, a flexible workspace provider headquartered in Hong Kong that invested USD 30 million to open its first center in Riyadh, said demand has been "piling in" for offices in the region as Chinese companies expand operations to mitigate downturn pressure even as they remain cautious about geopolitical risks.
"They are dedicated to China but they're using The Executive Centre as a hedge against costs and future uncertainty," Paul Salnikow, the group's founder and CEO, told Nikkei Asia.
For SenseTime Group, a Chinese artificial intelligence company blacklisted by the US, competition is coming from Western peers rather than Chinese companies, said George Huang, head of SenseTime's Middle East joint venture with a unit of the Public Investment Fund.
SenseTime has focused on expanding in Saudi Arabia and the UAE since 2018, aiming to double its headcount in Saudi Arabia to 150 people in 2025.
"It's just competition, it does not matter where you are from," Huang told Nikkei Asia.
This article first appeared on <a tabindex="0" href="https://asia.nikkei.com/Spotlight/Belt-and-Road/China-Hong-Kong-companies-tap-Middle-East-as-Western-ties-sour" 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, Hong Kong companies tap Middle East as Western ties sour

MENA

Deals in brief: Lenovo’s Leshines gains Saudi backing, Ampd Energy and Ensonic secure funding, Swiggy bags USD 606 million from anchor investors, and more

Lenovo

East Asia

Venture Capital

Private Equity

Investment

Merger &amp; Acquisition

Indonesia

Saudi Arabia

Southeast Asia

India

Middle East

… September, it launched <a href="https://daoinsights.com/news/and-did-the-star-buck-in-ancient-time-starbucks-debuts-microdrama/">I Opened a Starbucks in Ancient Times</a>, which reportedly attracted over 170 million views and over a million interactions.
Sources close to Starbucks told 36Kr that the minidrama preserved the brand’s values, focusing on quality coffee, attentive service, and a sense of partnership. To connect locally, the storyline incorporated traditional Chinese themes and a touch of romance. In one scene, the male lead confesses his feelings by making a caramel macchiato for the female lead—a symbol of sweetness from the heart.
Starbucks has spent 25 years growing in China, propelled not just by products or promotions but by the concept of a “third space.” This may explain why Niccol is doubling down on Starbucks' identity as a community hub. Rather than battling on unfamiliar ground with aggressive discounts and endless product options, Starbucks may find it wiser to shore up its original strengths.
In a twist, a day before Luckin’s earnings release, reports surfaced that the Chinese coffee giant is planning an entry into the US market next year, with adjustments underway in supply chain and technology.
Luckin aims to target US cities with high populations of Chinese students and tourists, leveraging its affordable coffee experience from China. Plans are reportedly in place to offer coffee at USD 2–3, undercutting US rivals, and the company has been airing ads during NBA games to build recognition ahead of the launch.
In an open letter to customers, partners, and stakeholders during his first week, Niccol reaffirmed Starbucks’ commitment to its roots, pledging to focus on four areas: empowering baristas, caring for customers, seizing each morning, reinforcing Starbucks as a community coffeehouse, and telling the Starbucks story.
Returning to basics may be a noble pursuit, but the immediate challenge remains: Starbucks will soon face its largest competitor from China, right on its home turf.
KrASIA Connection features translated and adapted content that was originally published by 36Kr. This <a href="https://36kr.com/p/3017398123341063">article</a> was written by Li Xiaoxia for 36Kr.

With Luckin Coffee on the rise, Starbucks scales back discounts and returns to its roots

Starbucks

Coffee