Generative artificial intelligence in China: a rapidly expanding technological revolution

Generative artificial intelligence (AI), a technology that enables the creation of textual, visual, audio and other content, is developing rapidly in China. With applications ranging from artistic creation to scientific research, not forgetting improved business services, this technology is becoming a strategic pillar of innovation. At the forefront of patent filings and research initiatives, China is positioning itself as a major player on the global generative AI scene, consolidating its ambition for technological leadership.

China leads the way in generative AI patent applications

China has been investing heavily in AI for several years, particularly in generative applications. According to the World Intellectual Property Organisation (WIPO), China has filed more patents than any other country in the field of AI over the past decade, accounting for around 60% of worldwide filings.

The patent landscape in China is dominated by large companies such as Baidu, Tencent and Alibaba. These companies are working closely with universities and research centres to develop new applications for generative AI. The synergy between the private sector, academic institutions and the government creates a favourable environment for rapid innovation.

The role of Chinese companies in generative AI

Tech giants such as Baidu, Huawei and Tencent play a central role in China’s generative AI ecosystem. Baidu, for example, has developed its own language model, Ernie, which aspires to rival Western models such as GPT. This model is used for a variety of applications, including automatic content generation, translation and the creation of intelligent chatbots.

Emerging uses and applications of generative AI

Advances in generative AI in China are finding applications in many sectors of the economy.  In marketing, for example, Chinese companies are exploiting generative AI to create tailor-made advertising campaigns tailored to consumer behaviour and preferences. These applications enable greater automation and optimisation of production costs. Huawei is integrating generative AI into its cloud infrastructures, offering solutions for automating processes such as generating reports or creating personalised content.

AI and the cultural and creative industries

AI is also being used in the cultural and creative industries. Tencent has invested in generative AI applications for entertainment, such as script creation and virtual art. In media and entertainment, platforms such as iQiyi and Bilibili use AI models to create content tailored to user preferences, such as animated series or podcasts. There are numerous projects and tests of specific applications, which are gradually being rolled out.

AI, education and scientific research

In the education sector, generative AI is being exploited to develop personalised learning tools, such as chatbots capable of proposing exercises tailored to the level of each student. Applications in the medical field are also promising: AI-based diagnostic systems assist doctors in interpreting medical images or generating complex clinical reports. Start-ups such as SenseTime are exploring applications in the health and finance sectors.

Conclusion: A promising future for generative AI in China

Generative AI represents a strategic opportunity for China, which is establishing itself as a world leader in this field. With massive investment in research, a dynamic technology development ecosystem and applications with high economic potential, China is shaping the future of generative AI. By continuing on this trajectory, China could redefine industry standards, play a central role in the evolution of artificial intelligence on a global scale and make it an asset of its economic and technological power.

The calendar of holidays in China for 2024

The Chinese year is rich in celebrations that present real opportunities for businesses. Traditional festivals, celebrations and commemorations are special occasions for people to come together. These key dates in the Chinese calendar are accompanied by a peak in consumption of refined foods, cosmetics and other luxury goods, which are often bought and given as gifts. The economic dynamism is also linked to the numerous trips across the country to gather and celebrate these moments with family and friends. These celebrations are complemented by commercial events. These annual marketing operations are very successful, with record sales. Here’s an overview of the most important dates to remember when planning your marketing activities and campaigns in China this year.

Traditional Holidays

Chinese New Year – February 10th, 2024

The Chinese New Year marks the beginning of the lunar year, which this year is under the sign of the Wooden Dragon. The New Year is followed two weeks later by the Lantern Festival. This period is characterized by an extended holiday season preceded by intense commercial activity. Tourism is also at its peak. However, during this week-long holiday, the productive economy slows down: most shops and factories shut down.

Qingming Festival – April 4th, 2024

This festival, held on April 4th, is dedicated to the memory of the deceased. Families visit graves to care for them and make offerings. A short holiday is granted on this occasion.

Dragon Boat Festival – June 10th, 2024

The Dragon Boat Festival, a tribute to the poet Qu Yuan, is marked by boat races and the tasting of zongzi, traditional rice cakes.

Mid-Autumn Festival – September 17th, 2024

Also known as the Moon Festival, this celebration is an opportunity for families to get together and enjoy traditional moon cakes. The two days before are public holidays for family reunions and tourism.

Qixi – August 10th, 2024

Celebrated on the 7th day of the 7th moon, this love festival is comparable to Western Valentine’s Day. (In China, May 20 can also be considered Love Day, as the pronunciation of this date (520) is phonetically close to “I love you” in Chinese).

Commercial Days

E-Commerce Day (18.06) – June 18th

This date is marked by promotions and special offers on e-commerce platforms, attracting the attention of consumers.

Singles’ Day (11/11) – November 11th

Initiated by Alibaba, Singles’ Day has become the world’s largest e-commerce event, offering massive promotional opportunities.

Double 12 Festival – December 12th

December 12 is another opportunity for promotions after Singles’ Day, prolonging the commercial frenzy.

Holidays and working days

In China, in order to take advantage of consecutive days off for certain holidays, working days are compensated by weekend days that are exceptionally worked. This year, for example, the Chinese will work on Sundays February 4th and 18th, April 7th and 28th, Saturday May 11th, Saturday September 14th, Sunday September 29th, and Saturday October 12th.

China’s uniqueness lies in its ability to blend ancestral traditions with contemporary influences. The Chinese calendar combines traditional holidays such as Lunar New Year and Mid-Autumn Festival with modern commercial events such as Singles’ Day and E-Commerce Festival. By understanding and incorporating these traditions into their marketing strategies, companies can not only strengthen their relationships with Chinese consumers, but also increase their sales and visibility in this dynamic market. In fact, every holiday is an opportunity for companies to offer attractive promotions and build strong relationships with Chinese consumers. By strategically planning your activities around these dates, you can maximize your impact on this market.

[PODCAST] Medical innovations in China Mainland and HK : The opportunities for foreign companies

Irénée Robin, Managing Partner at VVR Medical was present during the third Asia Summit on Global Health, in Hong Kong which brought stakeholders from healthcare experts to renowned academia and influential business leaders to explore opportunities in the healthcare sector.

Irénée Robin was one of the speakers at a session focused on medical technology at the event. On this occasion, he was invited by Radio Television Hong Kong for an interview about opportunities in the healthcare sector in Mainland China and HK.

You can listen to the replay of this interview by following this link:

• RTHK website
• Apple Podcasts
• Spotify

First of all, how healthy would you say the level of investments into the healthcare industry in Mainland China is?

In Mainland China I tend to think that it’s never enough […] but it is increasing and it’s refocusing. The Chinese government has made the health of their own population a priority that they want to address with their own solutions. This strategy is leading to the integration of the whole manufacturing line of every medical device, product, medicine that is needed. In the healthcare sector, the cheapest consumable to the highest end implant tends to be made in China by China, for the Chinese people. This integration will actually generate affordability and eventually decrease the amount of investment or the amount of money needed to take care of the people.

These market dynamics are observable mainly in the day-to-day problems of healthcare in China, but not necessarily in Innovation scope.

About innovation, what are the sort of innovations you’re talking about here and where do we stand with those and what needs to happen to make those go ahead?

Over the past 20 years, China has been very good at scaling up and enabling as many people as possible to have access to basic healthcare. […] During the pandemic, especially the early stage, we saw a few of returnees having spent between 10 and 20 years in Europe or in the US, coming back to China to bring overseas innovation and trying to incubate it in China as well. Now the innovation mindset and spirit is strongly on the rise in China. A growing number of biotech and metric industries and companies are resolutely committed to innovation and introducing new technologies to the Chinese market. China’s gap in medical innovation is closing, but the challenge remains for foreign innovators wishing to penetrate the market. Indeed, this can prove difficult as the government focuses on mass production in China for the Chinese at the expense of innovative products which may not have the best commercial opportunities on the market […]. In this context, I work daily to find a way for the most innovative products to find their place on the Chinese market.

About some of these innovations, what are the most exciting developments that you’re keeping a watch on more broadly around medical technology […]?

Overall, everything related to AI and big data is at the forefront right now. But if we focus on China, […] big data innovations related to diagnosing diseases at an early stage are particularly interesting. A lot of China’s health problems could be solved by earlier diagnosis, but this is complicated by the sheer numbers of people and the way healthcare changes are organized, so the prospects for diagnostic innovations in the Chinese market are promising for years to come.

[…] You mentioned a lot about how China is very much focused on making things domestically and having them available domestically. Are there still opportunities for foreign enterprises to get involved in the sector?

A lot. […] For newcomers, if it’s a company offering an innovation that can solve a patient problem, a doctor problem, a problem related to hospital operations, or a problem related to health economics, or several of these problems at once, there’s a way forward. […] In addition, the legislation applicable in China may in some cases give an advantage to certain imported products: their registration may be faster than that of domestic products. Moreover, if products are registered as import devices, the company can make full use of its data abroad, including clinical data, which is not possible if the product is registered domestically.

Let’s take our attention now to Hong Kong and the greater Bay Area. […] What role do you think Hong Kong in the greater Bay Area can play in helping save the mainland companies’ expansion to a more global market?

Hong Kong has many roles to play for the medical industry. […] In terms of culture and relationships, Hong Kongese have a good understanding of the players and how the mainland market works. As a result, they are able to grasp the needs of Chinese companies wishing to go abroad. They can provide this cultural insight, but also in terms of investment capacity and the ability to mobilize local financial resources to ensure that these companies have a very strong and solid international arm.

You are interested in the opportunities offered by the Chinese Healthcare market? Irénée Robin and the dedicated team of VVR Medical experts can advise your company and help you realize your development project in China.

Contact us

VVR International team wish you all the best for this Chinese New Year of the Metal Ox!

Dear Friends, dear Partners,

According to the Chinese calendar, 2020 was the year of the Rat, as we have not lost our sense of humor, we will say that 2020 was the year of the Pangolin… or the year of the Bat…

Despite an unprecedented and difficult context, the year 2020 was for VVR International’s teams a symbol of solidarity, cohesion, resilience, recovery, and innovation.

We hope that 2021 will be synonymous of new projects, freedom, travel, and exchange.

Once again, an excellent year 2021 to all of you.

October is a special month in China: because of the Mid-Autumn festival and the National Day (the 1st of October), Chinese enjoy a week-long holiday.  Some go on travelling, but most still use this rare holiday time to gather with their family. Life in China follows a calendar quite different from the Western one… This month’s article will give you a short presentation of the most important celebrations in the Chinese society, explaining not only their meaning but most importantly their impact on contemporary China. Indeed, when doing business in a country, it is essential to know about that aspect of culture, in order to seize the induced opportunities (in retail for instance), but also to understand and anticipate increase or decrease in your local activity.

To begin with, most of Chinese celebrations are linked to the Chinese lunar calendar (that also explains why they never fall on the same date). Then, some of the international day-offs are celebrated in China (women day, labor day, mother’s day, father’s day…), but their importance is likely to be different from that in the West. Lastly, a third kind of celebrations emerged during the last decade that can be compared to sales in Europe: economic actors (mostly e-commerce platforms) each launched their own annual celebrations, such as the 11/11 from Alibaba.

October

Thus, in October, Chinese enjoy one week of holidays. If these long-holidays gather two celebrations, the Mid-Autumn festival and the National Day, most of the festivities revolve around the Mid-Autumn festival, also called the Moon Festival as this is the time of the year when the Moon is the closest to the Earth. Without entering into the details of Chang’e and Hou Yi’s story which gave birth to this festival, the Moon festival is a time of family gathering, and that’s when the famous mooncakes are shared. These mooncakes can take all forms and all tastes and are sometimes incredibly expensive!

November

In November, people « celebrate » the single day. Originally a day for single people, it was popularized by Alibaba in 2009 as a consumption festival: on that day, Alibaba will offer on their e-commerce platforms incredible promotions, mostly for fashion, F&B, cosmetics, and house appliances products (see VVR’s article on this topic). Because of the popularity of this commercial operation, JD.com also launched their 11/11 : 11 days of sales… preceding Alibaba’s 11/11.

December

December is synonym of Christmas in China too, but this celebration has nowhere the same impact nor the same scope as it has in the West. In China, it is mostly about decorating the streets, the malls, one’s house and sometimes buying presents for the kids (this happens in first-tier cities mostly). In families that are the most open to the world, December might also be a moment to enjoy the Christmas delicacies imported from the West.

January-February

The Chinese New Year (or Spring Festival) is the most important celebration of the year. Happening between the end of January and mid-February, depending on the lunar calendar, these celebrations which last two weeks are the equivalent of our Christmas and New Year.  On this occasion, Chinese people enjoy their second one-week long holidays. Just like the October’s week, it is either an opportunity for travelling, or one to return home. These celebrations are rather peculiar as, for one to two weeks, Chinese big cities are emptied, train stations crowded, and most of the businesses and plants are closed. In terms of celebrations, the arrival of Spring is welcomed by several festivities, which end in the Lantern Festival, with diverse traditions: firecrackers (now forbidden in the large cities), Chinese dumplings, sticky rice balls on the eve of the Lantern Festival…, with feasts and with the exchange of gifts (the famous hongbaos: red enveloppes filled with money). For a businessman, it is important to know that while the time preceding the Chinese New Year is not recommended for new undertaking, the time that follows it is favorable to big changes and decisions.

March

On the 8th of March, China celebrates the International Women’s Day in a way that is not common in the West. Indeed, some companies give a half-day holiday to their female employees, and others offer them gifts. These traditions are less common among international companies: while not mandatory, they remain appreciated.

April

Beginning of April, Qingmingjie is another of the most important celebrations in the lunar calendar. Also called the Tomb Sweeping Festival, it is the day for Chinese people to pay tribute to their dead ones. Enjoying some days off for this occasion, they gather on their ancestors’ graves, share a picnic, clean the grave and make offerings. Yet, this festival also celebrates life and renewal. Therefore, after visiting their ancestors, Chinese enjoy outdoor activities such as flying kites.

May

After Qingmingjie comes the Labor Day, the 1^st of May. Its importance is self-evident in China and bears a strong political meaning. Workers enjoy one day off and many defiles are organized in the cities.

June

Next comes the Dragon Boat Festival in June (depending on the lunar calendar). This festival is mostly known for its dragon-headed boats competitions which became a national sport in China and even exported themselves to cities like London. Originally paying a tribute to a great official of Ancient China, the Dragon Boat festival is a celebration of courage. When the sun is at the zenith, it is said to be the most favorable time of the year to try out new things. When it comes to food, the Dragon Boat Festival is the time of songzis, triangular sticky rice cakes stuffed with diverse delicacies and packed in a bamboo leaf. Just like our Christmas chocolates, songzis can be found in Chinese shops two weeks before the festival, and two weeks after.

August

The Western February’s Valentine’s Day is celebrated in the more internationalized cities. Yet, the Chinese Lover Day comes around September, on the 7th day of the 7^th month of the year to be precise (according to the lunar calendar). Given the popularity of romantic behaviors (often identified with France), offering something to one’s beloved is a must-do.

All in all, days-off are an opportunity (often one of the only) for Chinese to go on holidays. The October’s Golden Week or the Spring Festival are thus important opportunities for the touristic industry and related sectors: France is still one of the first destination for Chinese tourists, whose incomes are increasing. During shorter holidays or for those families that have less income, Chinese festivals are a time of family gatherings and leisure. In all cases, abundant dinners will be prepared on these dates, with the specialties linked to the festival but also with high quality, premium products. Chinese celebrations are thus moments when Chinese consumers are willing to spend more to get premium products, a direct opportunity for European F&B businesses that often have this positioning on the Chinese market. Besides these direct opportunities, knowing the Chinese calendar is essential to understand some of the Chinese imaginary: Chinese New Year is synonym of family gathering and undertakings, Qingmingjie is about renewal and Dragon Boat Festival is assimilated with outdoor sportive activities. While some foreign companies go as far as to offering their own mooncakes and songzis (like Starbucks), which might not be needed nor even recommended for all businesses, it is important to, at least, be aware of this imaginary when designing a marketing strategy in F&B and other consumer goods.

By Manon Bellon

Image credits : Le Petit Journal