China’s Generative AI: The Challenge of Regulation

 

Bloomberg Creative/Getty Images

China’s tech giants have showcased their artificial intelligence (AI) models, which can power products and applications such as image generators, voice assistants, and search engines. These new offerings include Ernie Bot, SenseChat, and Tongyi Qianwen. However, AI poses a challenge for China’s rulers, as the generative type holds excellent promise for Chinese tech firms but opens up vast new ways for information to spread outside its control. The Communist Party of China defines the truth, and generative AI may challenge this control.

Proposed AI Regulations in China

The government’s concerns are reflected in the rules proposed by China’s internet regulator on April 11th. According to the Cyberspace Administration of China (CAC), firms should submit a security assessment to the state before using generative AI products to provide services to the public. Companies would be responsible for the content that such tools generate. The content must not subvert state power, incite secession, harm national unity, or disturb the economic or social order. Those restrictions may sound arcane, but similar rules, applied to the internet, let the party repress speech about everything from Uyghur rights to democracy, feminism, and gay literature.

China’s Approach to AI Regulation

China’s approach to AI regulation appears more piecemeal and reactionary than other countries. The EU has proposed a law that categorizes different uses of AI and applies increasingly stringent requirements according to the degree of risk. China’s control of the internet has not stifled innovation. Still, when it comes to generative AI, it is difficult to see how a Chinese company could create something as wide-ranging and human-like as Chatgpt while staying within the government’s rules.

Source from European Commission

The arbitrary nature of the CAC’s proposed rules means it can tighten or loosen them as it sees fit. In recent years, companies in fields such as e-commerce, social media, and video gaming have had to rethink their business models based on the whims of President Xi Jinping. If Xi does not like where generative AI is going, he could reset that industry too.

Potential Limitations on Chinese AI Firms

One way Chinese AI firms may be held back is by limiting the personal data made available to train their AI models. Until recently, China’s tech companies could hoover up personal data. However, this freewheeling era seems to be coming to an end. Companies wanting to use certain types of personal data must, in theory, obtain consent. Under the draft rules on AI, firms would safeguard users’ personal information.

Conclusion

In conclusion, generative AI holds great promise for Chinese tech firms but challenges China’s rulers. The government’s proposed rules make clear its concerns about the potential for information to spread outside its control. The arbitrary nature of these rules means that the government can tighten or loosen them as it sees fit. The personal data available to train AI models may also be limited, which could hold back Chinese AI firms.

Backlinks

“重磅！刚刚，中国AI监管规定出炉！拜登也有大动作”, STCN, 11 Apr 2023, https://www.stcn.com/article/detail/838135.html

“ChatGPT：风起云涌的生成式AI和紧随而至的监管 从中国网信办新规看新赛道走向”, BBC News, 14 Apr 2023, https://www.bbc.com/zhongwen/simp/chinese-news-65274804

“How will China’s Generative AI Regulations Shape the Future? A DigiChina Forum”, Stanford University, 19 Apr 2023, https://digichina.stanford.edu/work/how-will-chinas-generative-ai-regulations-shape-the-future-a-digichina-forum/

“Proposal for a Regulation laying down harmonised rules on artificial intelligence”, European Commission, 21 Apr 2021, https://digital-strategy.ec.europa.eu/en/library/proposal-regulation-laying-down-harmonised-rules-artificial-intelligence

The Potential for Improving User Experience: Large Models in the Travel Industry and Future Scenarios

Source from 澎湃

Introduction

The travel industry has undergone significant changes in recent years, with technological advancements and the rise of digital platforms. With competition increasing, providing a good user experience has become essential for travel companies to retain customers. Large models, also known as artificial intelligence models, have shown immense potential to improve user experience in the travel industry. This article will explore the possibility of large models to enhance user experience in the travel industry and discuss future scenarios for the industry.

Large Models in the Travel Industry

Source from Sina

Large models refer to artificial intelligence models trained on large amounts of data to learn patterns and make predictions. In the travel industry, large models can be used for various purposes, such as predicting flight delays, optimising pricing strategies, and enhancing personalisation. The advantages of using large models in the travel industry include improved accuracy in predicting customer behaviour, increased efficiency, and reduced costs. However, some disadvantages exist, such as the need for significant computing power and data storage, which can be expensive.

Several successful implementations of large models in the travel industry exist. One example is the use of chatbots for customer service. Chatbots can provide 24/7 support to customers, and they can use large models to learn from previous interactions to improve their responses. Another example is using predictive analytics to personalise travel recommendations based on customer preferences and behaviour.

Improving User Experience through Large Models

Personalisation is a critical factor in improving user experience in the travel industry. Large models can personalise travel recommendations based on customer preferences, such as destination, accommodation, and activities. Real-time data and personalised recommendations can improve customer satisfaction and loyalty. For example, large models can analyse weather patterns and give customers personalised advice for indoor activities during inclement weather.

Large models can also enhance safety and security in the travel industry. For instance, large models can analyse patterns of fraudulent activity and identify potential security threats. Large models can also analyse data from various sources, such as social media and news reports, to provide real-time alerts to travellers in emergencies.

Future Scenarios in the Travel Industry

The potential for large models in the travel industry is vast, and the future scenarios for this technology are exciting. Here are two specific examples of how large models could be used to improve the user experience in the travel industry.

During the holiday or other peak travel periods, many popular tourist destinations become overcrowded, leading to long lines and frustrating experiences for travellers. To address this issue, large models could be used to analyse real-time booking data and search data to identify less crowded destinations for travellers to visit. The AI could recommend these destinations to travellers, allowing them to avoid crowds and enjoy a more relaxing trip. This would improve the traveller’s experience and help distribute tourism more evenly, reducing the strain on overcrowded destinations and promoting sustainable tourism.

Source from altexsoft

Another scenario where large models could be used to improve user experience is in the hotel booking process. Travellers often face challenges finding the right hotel for their needs, particularly when travelling with children, seniors, or individuals with disabilities. In this scenario, large models could analyse the traveller’s background information and preferences to recommend suitable hotels based on location and surrounding attractions. The AI could also use real-time data to predict foot traffic around the hotel and nearby attractions, helping travellers make informed travel plans.

In addition to these scenarios, the travel industry will likely see continued innovation in virtual reality, blockchain, and big data. These technologies have the potential to revolutionise the industry and provide travellers with even more personalised and immersive experiences.

Conclusion

In conclusion, large models have significant potential to improve user experience in the travel industry. They can be used for personalisation, real-time data analysis, and enhancing safety and security. The future of the travel industry is likely to be shaped by technological advancements such as virtual reality, blockchain, and big data. However, the industry will face sustainability concerns and increased competition from sharing economy platforms. The travel industry must embrace large models and other new technologies to stay ahead of the competition and provide a good user experience.

Reference

“They will be more likely to survive and thrive. As an ex-strategy consultant and public speaker on digital and technology trends, and now running venture-backed, travel-tech startup Beyonk, here …” https://www.forbes.com/sites/forbesbusinesscouncil/2021/12/27/the-travel-and-tourism-industry-by-2030/

“This desire to build memories, to connect with people, and to see new places drove 1.4 billion of us to travel internationally in 2019. 1 Creating safer travel experiences is now paramount to protect this privilege. Now is a moment of crisis for the travel industry. Available seat miles on US airlines were down 71 per cent in April 2020 …”https://www.mckinsey.com/industries/travel-logistics-and-infrastructure/our-insights/make-it-better-not-ust-safer-the-opportunity-to-reinvent-travel

“亚马逊云和携程成立联合创新实验室，探索大模型落地旅行应用”, 26 Apr 2023, The Paper, https://www.thepaper.cn/newsDetail_forward_22863250

“Share of travellers trusting to use Artificial Intelligence (AI) to plan travel in 2033 worldwide as of August 2022, by travel aspect”, February 2023, Statista, https://www.statista.com/statistics/1381319/expected-use-artificial-intelligence-for-travel-planning-worldwide/

Understanding Internet Addiction Among Elderly People in China: Root Causes and Potential Social Impacts

Source from 中国日报

Introduction

Internet addiction among older people in China has become a growing concern recently. As China’s population ages, more and more older people are turning to the Internet as a source of entertainment and social interaction. However, excessive internet use can negatively affect physical and mental health, leading to social isolation and other social issues. Understanding the root causes of this phenomenon and its potential social impacts is essential.

Current Situation

According to a report by mobile content aggregator Qutoutiao, 38.6% of people aged 60 or older in China were internet users, and around 0.2% of them spend at least 10 hours a day online. Excessive internet use can lead to health problems such as insomnia and depression, which are particularly common among older adults. Social consequences of internet addiction among older people include increased isolation and disconnection from family and friends.

Source from 澎湃

Source from 澎湃

The Root Reasons for the Current Situation

Loneliness and lack of social support can make older adults more susceptible to internet addiction. For example, older adults living alone or with limited social networks may use the Internet to alleviate loneliness or boredom.

The influence of digital technologies and social media can also contribute to internet addiction among older people in China. For instance, using social media platforms may create a sense of social pressure or FOMO (fear of missing out) among older adults who feel compelled to stay connected with friends and family online.

Broader social and economic changes in China, such as the rise of the “silver economy” and the increasing importance of digital technologies in healthcare and social services, may also contribute to internet addiction among elderly people. For example, older people who rely on digital technologies for healthcare or social services may be more likely to use the Internet excessively.

Potential Social Issues

Decreased social participation is one potential social issue arising from internet addiction among older adults in China. Excessive internet use can lead to decreased face-to-face interactions and social activities, leading to isolation and loneliness.

Increased healthcare costs are another potential consequence of internet addiction among elderly people. Excessive internet use can lead to various health problems, such as insomnia and depression, that may require medical attention.

The strain on family and caregiver relationships is a third potential social issue. Internet addiction can create tension and conflict within families and between caregivers and their elderly charges, particularly if excessive internet use interferes with daily activities or responsibilities.

Finally, internet addiction among older adults can make them more vulnerable to online scams and fraud. Older adults may be targeted by scammers who use the Internet to gain access to personal information or financial resources.

By addressing these root causes and potential social issues, we can work together to find solutions that promote healthy ageing and social connectedness for all members of our society.

Reference

[1] “Internet Use by China’s Elderly: Report.” China Daily. https://global.chinadaily.com.cn/a/202109/24/WS614d233fa310cdd39bc6b2b5.html.

[2] Yan, Wei. “The Social Impact of Digital Technologies on Chinese Society.” East Asia Forum. https://www.eastasiaforum.org/2018/02/26/the-social-impact-of-digital-technologies-on-chinese-society/.

[3] Zuo, Yuting. “Digitalisation of Healthcare and Senior Care in China.” E3 Magazine International. https://e3zine.com/digitalisation-of-healthcare-and-senior-care-in-china/.

[4] Liu, Jinyu, et al. “Internet Addiction and Loneliness Among Chinese Elderly Adults: A Moderated Mediation Model.” Frontiers in Psychology, vol. 12, 2021. https://www.frontiersin.org/articles/10.3389/fpsyg.2021.749092/full.

[5] China News Service. “Internet Addiction Among Elderly: Loneliness Causes Them to ‘Fall into the Net’.” Global Times. https://www.globaltimes.cn/content/1262052.shtml.

Navigating the Impact of Foreign Company Relocations in China

 

Apple Store in Shanghai/rfa

The news of foreign companies relocating out of China has been making headlines recently, but the situation may not be as widespread as it seems. German companies invested a record 11.5 billion euros ($12.6 billion) in China last year, indicating that some foreign companies are still keen on expanding their presence there. However, China must acknowledge that such relocations will have far-reaching effects, particularly in the electronics and semiconductor industries. To address this issue effectively, the country should seize many opportunities to minimize the adverse effects.

Source From 中国第六、七次人口普查

Facing the Reality

China must first understand their reasons for mitigating the impact of foreign company relocations. Most multinational corporations want to stay in China, as the country offers an enormous market, a vast pool of engineering talent, abundant capital, and active demand. It also provides greater efficiency than its rivals. However, some companies may be forced to relocate due to external pressures such as political sanctions and heavy tariffs.

Bridging the Gaps

Although Southeast Asia and Mexico lag far behind China regarding the quality of their infrastructure, electricity supply, and labour relations, recent developments suggest that these gaps can be bridged. For example, in recent years, India has invested heavily in railway construction to improve its train system. Vietnam has also been constructing numerous power plants to boost its electricity supply. Thus, unfavourable conditions can be resolved, as China did during its economic reform and opening-up period.

Maintaining Connections

Although some foreign companies are shifting operations out of China, most opt to maintain connections rather than sever ties. Large factories have adopted a “China+1” approach, which means preserving adequate capacity in the country to serve the Chinese market while relocating their other operations. Meanwhile, those with a limited market share in China might consider withdrawing completely. Keeping part of their operations and supply chains in China gives companies greater flexibility in the future. They can sustain a presence in the market and quickly expand if needed in the future.

Opportunities for Growth

Despite the challenges posed by foreign company relocations, there are still opportunities for growth in China. For example, the country can promote innovation and technology to attract foreign investment. It can also promote financial inclusion and support the development of digital banking to reach underserved populations. By doing so, China can expand its reach and serve new customers, mitigating the impact of foreign company relocations.

Backlinks

“美媒：在华外企频传遭突击搜查 五天近32亿美元外资撤离”, Zaobao, 29 Apr 2023, https://www.zaobao.com.sg/realtime/china/story20230429-1388709

“Opinion: How to Minimize the Damage When Foreign Firms Leave China”, Caixin Global, 01 May 2023, https://www.caixinglobal.com/2023-05-01/opinion-how-to-minimize-the-damage-when-foreign-firms-leave-china-102041183.html

“Foreign tech companies moving out of China, can India seize the opportunity?”, Bizz Buzz, 5 Jan 2023, https://www.bizzbuzz.news/eco-buzz/foreign-tech-companies-moving-out-of-china-can-india-seize-the-opportunity-1189506

The State of Digital Banking in China: A Look at MYbank and WeBank

Source from vtv.vn

Digital banking has been rising in China, with MYbank and WeBank leading as two of the country's first privately funded internet-only banks. Backed by Ant Group and Tencent Holdings, these banks have leveraged their parent companies' massive user bases to expand their reach and offer innovative financial products and services to consumers and small and micro enterprises. However, recent reports have shown that MYbank and WeBank are experiencing some challenges, including a rise in bad loans and slower growth of their balance sheets. In this article, we will take a closer look at the state of digital banking in China through the lens of MYbank and WeBank, examining their current challenges and opportunities for growth.

MYbank: Rising Bad Loans and Slower Growth

MYbank, which is 30% owned by Ant Group, reported a rise in its nonperforming loan (NPL) ratio for 2022, which was 1.94%, up 0.41 a percentage point from the previous year. While this increase was within expectations, it reflects measures taken to help small and micro enterprises offset the impact of the pandemic last year. Despite the rise in bad loans, MYbank still posted higher profits and healthy liquidity metrics, indicating that the bank is still in good shape.

One of the challenges facing MYbank is the slower growth of its balance sheet. The bank's total assets increased by only 9.7% in 2022, compared to 25.5% in the previous year. This slower growth is likely due to increased competition in digital banking and a more cautious lending environment in China. However, MYbank has maintained a healthy capital adequacy ratio (CAR) of 17.2%, which is well above the regulatory requirement of 10.5%.

Despite these challenges, MYbank has continued to innovate and expand its product offerings. In 2022, the bank launched a new product called "MYbank Business Credit," which provides small and micro enterprises with a credit line of up to RMB 5 million (US$780,000) that can be used for working capital, capital expenditures and other business needs. This product has been well-received by customers, with over 80% of the credit line already being used.

WeBank: Similar Challenges, Different Approach

WeBank, which is 30% owned by Tencent Holdings, has also reported a rise in its NPL ratio for 2022, which was 1.47%, up 0.27 percentage points from the previous year. While this increase is lower than MYbank, it still indicates that the bank is facing similar challenges in terms of credit risk. However, WeBank has also posted higher profits and healthy liquidity metrics, suggesting that the bank is still performing well overall.

Like MYbank, WeBank has also experienced slower growth of its balance sheet, with total assets increasing by only 9.7% in 2022, compared to an increase of 20.1% in the previous year. However, WeBank has taken a different approach to addressing this challenge. Rather than focusing solely on lending to small and micro enterprises, WeBank has expanded its product offerings to include wealth management and insurance products, which have helped to diversify its revenue streams and mitigate the impact of slower loan growth.

One of WeBank's most innovative products is its "WeSure" platform, which offers consumers a range of insurance products, including travel, health, and pet insurance. This platform leverages Tencent's massive user base to reach a wider audience and has attracted new customers to the bank. In addition, WeBank has also launched a new product called "Wealth Management Connect," which allows customers to invest in wealth management products offered by banks in both mainland China and Hong Kong. This product has been well-received by customers, with over RMB 1 billion (US$156 million) invested in the first month of its launch.

Opportunities for Growth

Despite the challenges facing MYbank and WeBank, there are still opportunities for growth in the digital banking space in China. One of the most significant opportunities is the increasing demand for digital financial services among consumers and small and micro enterprises. As more people in China become comfortable using digital platforms for financial transactions, the need for digital banking services will likely grow.

Another opportunity for growth is the increasing focus on financial inclusion in China. Digital banks like MYbank and WeBank have reached underserved populations in China, such as small and micro enterprises and rural residents, who may not have had access to traditional banking services. As the Chinese government continues to promote financial inclusion and support the growth of digital banking, these banks will have more opportunities to expand their reach and serve new customers.

Backlinks

“疫情冲击下 网商和微众银行2022年不良率上升、资产负债扩张放缓”, Caixin, 30 Apr 2023, https://finance.caixin.com/2023-04-30/102041630.html

"Top Chinese Digital Banks Report More Bad Loans but Higher Earnings", Caixin, 03 May 2023, https://www.caixinglobal.com/2023-05-03/top-chinese-digital-banks-report-more-bad-loans-but-higher-earnings-102041890.html

“微众银行年营收354亿：税收贡献近50亿 腾讯持股33%”, Sohu News, 16 Apr 2023, https://www.sohu.com/a/667151401_430392 

Outrageous Demand: Over 780,000 Apply for H1B Visas, With Only a 15% Acceptance Rate

 

The number of H1B visa applications has dramatically increased this year, with applications rising from 480,000 to 780,000 in just one year due to the hyper-growth of technology companies in 2021–22. The acceptance rate for H1B visas is now less than 15%, which is worrying.

Leading Firm and Trump Administration’s Effect

Leading the pack, Indian consulting firm ICC has submitted 400,000 applications on behalf of 96,000 people, which equates to each individual having raised more than four applications. The fall in applications between 2018 and 2019 was mainly due to the Trump administration’s strict scrutiny of company qualifications and professional matching. This led to a significant reduction in ICC’s applications and numerous false negatives.

Demand for High-Skilled Workers and Need for Visa System Reform

Removing the multiple applications, almost 500,000 people have applied for H1B visas this year. The demand for high-skilled workers in the tech industry is apparent, and it is high time that the U.S. visa system is reformed. Either the number of visa quotas should be increased, or the abuse of the visa system should be prevented, such as outsourcing firms obtaining over 50% of H1B visas by paying workers the minimum wage, for example, $80,000, which is entirely unchecked and only exacerbating the problem.

Historical Context of the H1B Visa System

Those who graduated before 2015 will need help understanding what it is like to experience the current situation of 780,000 H1B visa applications competing for 85,000 spots through the lottery-based system. It is akin to the difficulty of finding employment during the financial crisis in the early 2000s or even the mid-90s when only 115,000 H1B visas were issued yearly, which is insurmountable if quotas remain the same as they have done for over two decades.

The current political polarisation over illegal immigrant issues will likely make resolving the visa situation in the short term challenging.

Backlinks

“US H-1B Visa Lottery System Resulted In Abuse, Fraud, Says Federal Agency”, NDTV, 29 Apr 2023, https://www.ndtv.com/world-news/us-h-1b-visa-lottery-system-resulted-in-abuse-fraud-says-federal-agency-3989714

“H-1B fraud: Here’s how consultancies scam applicants without real job offers”, mint, 1 May 2023, https://www.livemint.com/news/world/h1b-fraud-heres-how-consultancies-scam-applicants-without-real-job-offers-11682911688723.html

“Tech companies accused of gaming the H-1B lottery system”, CBS News, 28 Apr 2023, https://www.cbsnews.com/news/tech-companies-accused-of-gaming-the-h-1b-lottery-system/