Made in China #74: how Tencent grabs e-sports, what happened to China’s economy and other news
Under the heading “Made in China” collected news from China over the week, which was not included in the main ribbon 4PDA. Announcements, rumors and interesting events in the life of the main supplier of electronic goods in the world. In this issue you will learn about how Chinese supercomputers ousted from world-ranked American; as a Internet service provider Tencent has been gradually taking the world of eSports and how mobile technology has influenced the economy of China.
Chinese supercomputers were replaced by the American of the world rankings
We already wrote several times that the world’s most powerful supercomputer Sunway TaihuLight performance about 100 Pflops is located in China. There is now building some more powerful systems, including the world’s first computer with a capacity of 1 GFlops, which can perform a billion billion operations per second. The efforts of Chinese engineers did not go unnoticed. Twice a year since 1993, the TOP500 organization publishes a ranking of the 500 most powerful supercomputers on the planet. According to the latest report, China has managed to displace from the first three of the United States.
For nearly 25 years, the US only once (in November 1996) dropped out of the top three in the ranking TOP500. Then all three first places were taken by Japanese supercomputers. Until recently the third most powerful computer in the world was considered a Titan based at the National laboratory oak ridge in oak ridge, Tennessee. But in an article published in this month’s 49th ranking TOP500 first two places were taken by supercomputers from China, and in third place is the Swiss Piz Daint.
Thus of the 500 most powerful supercomputers of the world, 169 are located in the United States, which is the highest in the world. China is in second place with 160 cars in the rating. But when you consider the number of created now supercomputers in China, soon the U.S. may cede leadership.
Tencent plans to create a cyber Empire
Until recently Tencent was known as China’s largest Internet service provider and developer in China, the most popular messaging service QQ. But since then, the Corporation began to show increased interest in the games. In 2015, the whole Tencent acquired Riot Games, is the Creator of the popular MOBA League of Legends, and a year later she bought an 84% stake in Supercell, the developer is the most profitable mobile games such as Clash of Clans and Clash Royale. Moreover, Tencent intends to compete with the popular service of online distribution of games Steam using your store WeGame. Now the Chinese giant has taken over eSports.
Tencent announced a new five-year plan, which will be established eSports leagues, tournaments, associations, theme parks and training players. This will be created at the beginning of December last year, Tencent E-Sports. According to research firm Newzoo, Tencent intends for these five years to create e-sports industry worth 100 billion Chinese yuan, which at the current rate is about $ 15 billion. Tencent expects that by the end of this year in China is 220 million competitive players from the total of 335 million worldwide.
In the report research firm IDC says that the total income of eSports in China has increased over the year by 52% to USD 7.3 billion. Primarily this was due to the rapid rise in popularity in the country thanks to eSports leagues, tournaments and different sites to monitor the stream.
Gao Li, General Manager of Tencent E-Sports, noted that they have many plans to increase revenue. For example, Tencent signed a deal with local smartphone maker Vivo, which will soon release a special version of the smartphone to a professional League mobile game King of Glory.
As mobile technology has changed the economy of China
Over the past few years of financial technology in China has grown at an exponential value. Digital currency, mobile payment platforms and peer lending has gained wide popularity in China, which led to a change in the entire banking industry. This growth was attributed to cooperation between government agencies and start-UPS.
China has developed a very strained relationship and cryptocurrencies, in particular bitcoins. In 2013, the government banned financial institutions handle the processing of bitcoin, and in early 2017, the people’s Bank of China stated that it does not recognize them as legal currency. But despite all this, China is the leader on turnover of bitcoins. According to estimates CoinDesk, the share of Chinese bitcoin transaction is up to 85% of the total market. In addition, the industry of digital currency in China is also growing, and investment firms such as Huiyin Group, often to announce future venture capital financing of start-UPS related to digital currencies.
Moreover, the Chinese government also expressed interest and even plans to create its own digital currency. In early 2014, the Governor of the people’s Bank of China Zhou Syaochuan said that the Chinese government is making efforts to create official digital currency. As a result, in December 2016, held a trial run of the digital currency of the people’s Bank of China, which was attended by several large commercial banks.
In addition to the digital currency in China is also actively developing mobile payment systems. According to estimates by Iresearch, the market for mobile payments in China last year amounted to over 5.5 trillion us dollars. As local consumers and companies have adopted mobile payment platform, and many retailers have stimulated the users to pay this way instead of using cash or credit cards.
Major players in the Chinese market of mobile payment systems are Alibaba (Alipay), Lenovo (Lakala), Tencent (Tenpay) and WeChat (WePay). These companies are actively involved in the development of mobile Internet technologies. They create their own payment platform, covering all large number of consumers via smartphones, services, and traditional banking institutions. According to some estimates, to e-wallets in China account for almost 60% of all mobile payment methods, allowing these systems completely bypass the traditional banking institutions and thereby alter the movement of the money supply in the market.
Especially popular in China, the use of payment methods using NFC and QR codes. For example, WeChat has integrated QR codes with their own platform, covering thus more than 75% of users of social networks.
A huge impact on the banking industry in China also has equal (P2P) lending. The market in China was named the largest and fastest growing in the world with more than 4,000 operators in the past year. Its influence extends even beyond China. Beijing startup Yirendai was the first Chinese company that engaged in Internet Finance, which was included in the lists of the stock exchange of the United States.
Market equal lending is very popular in China as it increases the availability of credit. For comparison, 80% of people accessing conventional Bank for a loan, get rejected. The advantages of online credit also can be attributed to a wide variety of sizes of loans and interest rates.
The development of financial technologies of China demonstrates the country’s transition from an economy based on manufacturing, to service-oriented consumer. This growth allows a standard user to make quick financial decisions on the spot, which is far from how I work the traditional state-owned banks.