Daily Tech Roundup: Germany to Cut Huawei From 5G Network, Future of AI-Powered Learning Gadgets in China
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Welcome to the Daily Tech Roundup — a briefing of the top technology news making headlines in China and the rest of Asia.
In Depth: Are AI-Powered Learning Gadgets Ready to Be at the Head of the Class?
From point-and-read pens to electronic dictionaries and tutor machines that scan and answer questions, the excitement always fades when the device proves unsuitable or ineffective over time, said Qin Xin, who has bought countless educational gadgets for his child.
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- AI-powered learning gadgets are increasingly popular in China, with 4.7 million learning tablets sold last year, though their effectiveness and regulatory acceptance remain unclear.
- Germany plans to remove Huawei and ZTE components from its 5G core network by 2026 and from access and transport networks by 2029, citing national security concerns.
- AI's impact on China's music industry remains limited, focusing on support functions rather than creating top hits, unlike its more ambitious implementation in the U.S.
The Daily Tech Roundup features the top technology news in China and Asia.
A recent article delves into the effectiveness of AI-powered learning gadgets, such as point-and-read pens, electronic dictionaries, and tutor machines, often found ineffective over time. However, new AI-powered learning tablets have garnered attention for reportedly improving children's exam scores. Post-2021, when China banned after-school tutoring, these educational hardware devices saw a boom, with 4.7 million learning tablets sold last year. A survey indicated that nearly 70% of parents are inclined to buy these gadgets for their children. Despite positive feedback suggesting improved efficiency in mastering knowledge, there's uncertainty about whether these can replace in-person tutoring [para. 3][para. 4][para. 5].
Germany's ruling coalition has decided to remove Huawei and ZTE components from its 5G core mobile network by the end of 2026, citing national security concerns. By the end of 2029, these components will also need to be removed from the 5G access and transport network. This decision came after extending the deadline to implement the first phase by one year due to differences within the coalition on the proposal's strictness [para. 6][para. 7][para. 8].
While AI-generated music has seen significant investments in the U.S., China adopts a more targeted approach. Chinese initiatives in AI music primarily focus on improving song recommendation algorithms and providing soundtracks for short videos rather than creating chart-topping hits. Experts note that AI in music creation remains underdeveloped, more useful for predicting potential commercial success than actual music production [para. 9][para. 10].
The People's Liberation Army Southern Theater Command (STC) in China has shown unusual support for developing the low-altitude economy after the central government signaled more airspace would open for civilian use. The STC air force plans to collaborate with Guangdong's government to address issues like low-altitude airspace classification and coordination among various sectors [para. 11][para. 12].
Chenqi Technology Ltd., which runs the ride-sharing platform OnTime, saw its shares close 3.14% below its IPO price on its first trading day in Hong Kong, raising $124 million. Despite an initial 14% drop, shares closed at HK$33.90, positioning the company's market cap at HK$6.92 billion. Of the 30 million shares offered, 77% were acquired by cornerstone investors, including Guangzhou Automobile Industry Group and autonomous driving companies Pony.ai, WeRide Corp., and Didi Global’s self-driving unit Voyager Group [para. 13][para. 14][para. 15].
- Beijing Runto Technology Co. Ltd.
- Beijing Runto Technology Co. Ltd. is a market research firm that provided data indicating 4.7 million learning tablets were sold in the past year. They specialize in tracking the educational hardware market in China.
- Huawei Technologies Co. Ltd.
- Germany’s ruling coalition has agreed to remove critical components from Huawei Technologies Co. Ltd. from the nation’s 5G core mobile network by the end of 2026 for national security reasons. Companies will then have until the end of 2029 to remove parts made by Huawei from the 5G access and transport network.
- ZTE Corp.
- ZTE Corp. is a Chinese telecommunications equipment company. Germany's ruling coalition has agreed to remove components made by ZTE and Huawei from the nation's 5G core mobile network by the end of 2026 for national security reasons. Companies have until the end of 2029 to remove these parts from the 5G access and transport network.
- Udio
- Udio is a U.S. company that has drawn significant investments for its platforms that generate music using artificial intelligence (AI). These platforms enable users to create songs almost instantly with a text prompt, aiming to challenge the conventional music industry. While AI-generated music shows promise, it has not yet achieved major commercial success in China.
- Suno
- Suno is a U.S. company that has drawn significant investments for its promise of music generated by artificial intelligence (AI). While it allows users to create songs almost instantly with text prompts, contrasting approaches are seen in China, where AI's main value lies in enhancing song recommendation algorithms and auxiliary functions.
- Chenqi Technology Ltd.
- Chenqi Technology Ltd., operator of the ride-sharing platform OnTime, saw its Hong Kong IPO debut close 3.14% below its listing price, raising $124 million. Despite recovering from a 14% drop during the day, its market cap stood at HK$6.92 billion. The company offered over 30 million shares at HK$35 each. Key investors include Guangzhou Automobile Industry Group, Pony.ai, WeRide, and Didi Global’s self-driving unit Voyager Group, acquiring 77% of the shares.
- Guangzhou Automobile Industry Group Co. Ltd.
- Guangzhou Automobile Industry Group Co. Ltd. (GAC) is one of the cornerstone investors in Chenqi Technology Ltd.'s IPO. They, along with other investors, acquired 77% of Chenqi's offered shares. GAC is known to be a major player in the automotive industry and was part of the investment group that supported Chenqi's public offering, helping the ride-sharing platform raise $124 million.
- Pony.ai Inc.
- Pony.ai Inc. is an autonomous driving company. It is one of the cornerstone investors in Chenqi Technology Ltd.'s IPO, acquiring part of the 77% shares along with GAC, WeRide Corp., and Didi Global Inc.'s Voyager Group Ltd.
- WeRide Corp.
- WeRide Corp. is one of the cornerstone investors in Chenqi Technology Ltd., which is the operator of the ride-sharing platform OnTime. In Chenqi's IPO, WeRide Corp., along with other investors such as Guangzhou Automobile Industry Group Co. Ltd. (GAC), Pony.ai Inc., and Didi Global Inc.’s self-driving unit Voyager Group Ltd., acquired 77% of the shares.
- Didi Global Inc.
- Didi Global Inc. is a cornerstone investor in Chenqi Technology Ltd.'s IPO. Known for its ride-hailing services, Didi Global's self-driving unit, Voyager Group Ltd., acquired a portion of the shares, contributing to the HK$124 million raised from Chenqi's public offering on the Hong Kong Stock Exchange.
- 2021:
- Regulators banned after-school tutoring companies as part of the government's 'double reduction' policy.
- Last year (2023):
- 4.7 million learning tablets were sold, according to data from Beijing Runto Technology Co. Ltd.
- Last week (July 4-10, 2024):
- Wang Wei, a major general in the STC, spoke about the air force's support during a conference.
- Thursday (July 11, 2024):
- An accord was announced by Nancy Faeser, Germany’s Interior Minister, detailing the plan to remove Huawei and ZTE components from the 5G network.
- Thursday (July 11, 2024):
- A report published on the Guangdong government’s website described the STC air force's plans to collaborate with the government in Guangdong.
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