Note: The article was written by Yimie and translated by Zinan.

Get ready for the annual insights from TechNode Content Team! The year 2023 can be considered a groundbreaking year in the technology field. As wrapping up this year, we gathered different insights from our content team. We’ll present nine Q&As, with timely updates every Wednesday and Friday in the following weeks!

Today, our Q&A comes from Yimie Yong, Reporter at TNGlobal. Yimie is a reporter who focuses on EV, AI, FinTech, and InsurTech.

1. Which company has impressed you the most in 2023?

This year, the most impressive company for me is OpenAI. ChatGPT is the most eye-catching product of the year, sparking a trend in AI. This generative AI has influenced various fields, including creativity, design, media, etc. Tech giants in China and the U.S. are competing to develop and launch similar products.

2. Which company has surprised you the most in 2023?

TikTok Shop being shut down in Indonesia by the government was unexpected. The Indonesian government believed that TikTok Shop’s business model would impact the livelihood of local small businesses, leading to the shutdown order. Later, TikTok announced a $1.5 billion investment in the Indonesian e-commerce platform Tokopedia. The developments of these two companies will continue to be watched closely.

3. Which industry professional/entrepreneur/startup founder has left the most profound impression on you in 2023?

Sam Altman, the creator of ChatGPT. After being removed from the CEO position, Microsoft announced his hiring along with co-founder Greg Brockman. In a surprising turn of events, with the support of core employees and investors, Altman and Brockman returned to the company, highlighting their influence and status.

4. What is the most memorable overseas event for you in 2023?

Sam Altman, the creator of ChatGPT, was unexpectedly removed from the CEO position by the OpenAI board. Later, Microsoft announced his inclusion, and he returned to OpenAI in a strong comeback.

5. If you were to recommend one significant industry trend for everyone to follow, what would it be?

NVIDIA’s collaboration with Malaysia’s YTL Group to build a $4.3 billion AI data center in Malaysia. The development of NVIDIA in Malaysia is anticipated, and there are hopes that it will drive the growth of AI in the country. Due to the popularity of ChatGPT, AI has become a focal point, making NVIDIA the best-performing listed company on the S&P 500 index last year. The founder, Jensen Huang, created a buzz with his whirlwind tour of Southeast Asia, including Singapore, Malaysia, and Vietnam, at the end of last year.

6. What industry buzzword have you encountered the most in 2023?

Artificial Intelligence (AI), ChatGPT.

7. Which phrase or sentence best summarizes your perspective on the field you’ve been following in 2023?

AI field: Rapid advancement, intense competition. With the significant success of ChatGPT, major tech giants and startups are competing to launch AI-related products, leading to a rapid advancement of AI.

8. What product/company/technology/industry are you most looking forward to next year?

I’m very excited about the developments in the Electric Vehicle (EV) sector. Huawei and Xiaomi have recently launched their EV models, and I’m eager to see the impact and changes they will bring to the overall EV industry. Additionally, the Chinese EV brands BYD and NIO have surpassed Tesla in global sales, and I’m looking forward to the plans and developments of BYD, especially its introduction of products in Indonesia in January.

9. Do you believe AI has the potential to threaten humanity?

I believe AI may affect some jobs, but currently rather than replacing people’s jobs, I tend to believe that AI is helping people enhance efficiency and solve problems such as quick data collection. Furthermore, I have confidence that humans will find ways to control or balance the threats posed by AI and use AI more effectively to enhance efficiency and solve various problems.

Note: The article was written by icebin and translated by Zinan Zhang.

Get ready for the annual insights from TechNode Content Team! The year 2023 can be considered a groundbreaking year in the technology field. As wrapping up this year, we gathered different insights from our content team. We’ll present nine Q&As, with timely updates every Wednesday and Friday in the following weeks!

Today, our Q&A comes from icebin, reporter at TechNode. icebin is a tech reporter based in Shanghai who focuses on Sustainability, EV, VR/AR, IoT, and New Material.

1. Which company has impressed you the most in 2023?

It’s BYD. This company has transitioned from one era to another. After years of dedicated efforts, BYD has become a leader in China’s EV market, with 1557 patent applications making it the company with the highest number of pure EV-related patent applications among the top four EV manufacturers in China. Leveraging their accumulated technology and patents in the battery field, coupled with the expansion of product categories, they achieved a remarkable annual sales figure of 3,024,417 vehicles, a year-on-year growth of 61.9%. With this impressive data, BYD not only fulfilled its goal of selling 3 million vehicles set at the beginning of the year but also secured the top spot in China’s annual automotive sales, claiming the global crown in new energy vehicle sales. The 3 million mark also set a new record for annual car sales in China.

2. Which company has surprised you the most in 2023?

The most surprising company for me is Huawei. Before the launch of the Apple 15 series, Huawei preemptively released and sold the new Mate 60 series, especially considering the chip restrictions. Additionally, Huawei has made a strong product layout in the automotive market, exerting significant competitive pressure on other car manufacturers.

3. Which industry professional/entrepreneur/startup founder has left the most profound impression on you in 2023?

The entrepreneur who has left a deep impression on me is Sam Altman, the CEO of OpenAI. The products he has led have ushered in a new era of AI. The revolutionary AI chatbot, ChatGPT, introduced by OpenAI, connects extensive corpora to train the model, achieving conversations in chat scenarios almost similar to real human interaction. In the future, as intelligent applications in areas such as customer service, education, healthcare, and search engines continue to be implemented, ChatGPT, integrated with various industry applications, is set to witness the establishment of more paid business models.

4. What is the most memorable overseas event for you in 2023?

The overseas event that left the deepest impression on me this year is the continuous surge in NVIDIA’s stock price. This also signifies the industry’s recognition of its key role in AI sector. In the AI frenzy, NVIDIA has emerged as the biggest winner, surpassing a trillion-dollar market cap. The sudden popularity of ChatGPT has triggered a global AI race between major tech companies and startups, all eager to acquire NVIDIA’s H100 product. Jensen Huang referred to it as “the world’s first computer [chip] designed for generative AI”.

5. If you were to recommend one significant industry trend for everyone to follow, what would it be?

The industry trend that I’d like to highlight is Microsoft’s strategic layout in the field of AI. With Microsoft’s involvement in AI and its integration with the Windows and PC ecosystem, AI can now bring significant innovation in both software and hardware ecosystems.

6. What industry buzzword have you encountered the most in 2023?

Without a doubt, the hottest trend is AI. This term has made an impact across various industries, with almost every sector leveraging AI for innovation and breakthroughs. It can be foreseen that this trend will continue in the coming years.

7. Which phrase or sentence best summarizes your perspective on the field you’ve been following in 2023?

It can be described as “Let a hundred flowers bloom; let a hundred schools of thought contend”. Whether in the field of AI, new energy vehicles, or consumer electronics, with the collaborative efforts of AI and related hardware and chips, the pace and diversity of changes in the world have become even more rapid.

8. What product/company/technology/industry are you most looking forward to next year?

Next year, what I am most looking forward to is the integration of AI in consumer electronics and personal digital products, breakthroughs in the MR/AR field, technological innovations in the new energy vehicle sector, and the refinement of technology in the field of intelligent driving. This includes leading enterprises both domestically and internationally. Of course, the actions of companies led by Musk next year are also worth paying attention to, as he always manages to bring unconventional breakthroughs and innovations.

9. Do you believe AI has the potential to threaten humanity?

From a technological perspective, AI, when used friendly, will undoubtedly significantly improve human work and life. However, technology can also be exploited by malicious actors, and what we need to do is take preventive measures. In the current trend, AI will not pose a threat to humanity; it will only assist humanity in entering a new era of development, resolving more conflicts.

As China and its economy regain momentum after three years of strict Covid control policies, the country’s top lawmakers and political leaders are meeting in Beijing this week to discuss the country’s governance, economy, budget, and various key issues. The meeting is part of a week-long annual gathering known as the “two sessions,” or lianghui.

Increasing domestic demand is a top priority for the government in 2023. In 2022, China failed to reach the 5.5% GDP growth rate target it set last year (China grew 3% instead). For 2023, China has set an annual GDP growth target of 5% and hopes that its people will spend more to support the country’s economy. 

Much of this year’s growth plan is centered around stimulating consumer spending. Particularly in areas related to technology, the country is relying on people to make more big-ticket purchases like cars, and spend more on various shopping platforms, while building more network infrastructure this year. These include continuing to increase the steady growth of new energy vehicles and charging stations, supporting newer models of e-commerce, building 5G network infrastructure in smaller cities, and constructing national data centers in planned regions. 

Buy more EVs

China will continue to push the adoption of electric vehicles as part of its stimulus package to boost consumption and to “enhance its leadership position” in the new energy vehicle industry, policymakers said in this year’s annual government work report. It will also promote the wider use of battery swap technology and continue to support the battery industry.

The two sessions is also an opportunity for enterprise leaders (both private and state-owned) to present policy recommendations to the country’s top political and advisory bodies. 

Most proposals from leaders of domestic auto companies have echoed the government line. Feng Xingya, general manager of GAC, a manufacturing partner of Toyota and Honda in China, urged the government to roll out supportive policies to reduce the construction cost of battery swap facilities and push for a standard battery design among different manufacturers. CATL chairman Zeng Yuqun called for the establishment of a quality assessment framework to pave the way for the spread of lithium-ion batteries for grid energy storage.

Lei Jun, CEO of Xiaomi and also a delegate to China’s top legislative body the National People’s Congress (NPC), suggested that China issue data security standards for automobiles and promote data sharing among companies for intelligent connected vehicles. In addition, He Xiaopeng, CEO of Xpeng Motors, called for new legislation to clarify liability in traffic accidents involving autonomous driving cars. 

Shop more online 

Expanding consumption is key to China’s 5% economic growth this year, as the country tries to recover after stringent Covid-19 controls slowed economic growth. The country’s economic planner sees huge potential for e-commerce platforms as drivers of growth.

Strong export growth in the first half of 2022 has boosted China this year, with the country’s total trade of goods reaching a record high of RMB 42.07 trillion ($6 trillion). In particular, cross-border e-commerce exports grew by 11.7%, reaching RMB 1.55 trillion in 2022, reflecting the rise of overseas retail as a major component of China’s export trade. This year, the government pledged more support for cross-border e-commerce and overseas warehouse development in the annual report. 

For the domestic market, Chinese authorities vowed to guide the development of new models such as live commerce and on-demand retail, and lead the sector towards high-quality growth.

Wang Yinxiang, an NPC deligate from Cao county, a garment and coffin manufacturing hub in eastern Shandong province, found in her search that e-commerce in her rural county has helped increase the average lifespan of people in the region. The county is known for being a Taobao village (where at least 50 households own shops on Alibaba’s e-commerce platform Taobao).

Build more 5G, data centers, and other infrastructure 

This year, China will continue to upgrade to modern infrastructure systems such as 5G, data centers, and the Internet of Things. Specifically, China will focus on expanding internet networks in small- and medium-sized cities. The government aims to accelerate the development of 5G and broadband networks, and achieve greater integration of cloud networks. In addition, the country will continue the expansion of data centers and data hubs planned under the national data center project the “East-to-West Computing Capacity Diversion Project,” aiming to move more data processing from the country’s prosperous but land-scarce eastern regions to the country’s less-developed but sparse western regions.

In addition to networking and data infrastructure projects, the country also said in its work report that it plans to support the construction of smart highways, civilian space infrastructure, and a commercial space launch center on the southern island of Hainan. 

Voice recognition company iFlytek CEO Liu Qingfeng proposed that China should accelerate the construction of artificial intelligence models to enjoy the AI boom. Liu pointed out that while Chinese institutions and enterprises have published a series of large-scale models, the intelligence level of the large-scale models is still significantly lower than OpenAI’s ChatGPT. He asked China to accelerate the development of AI.

Although billions of dollars have been spent on pursuing breakthroughs in electric vehicle batteries, global automakers General Motors, Hyundai, and Honda believe there is still a long way to go to bring next-generation battery technologies to the market.

Speaking on Dec. 14 during an online conference held by SES, a New York-listed battery maker, executives from the world’s major automakers said they are still looking for a pathway to scaling lithium-metal batteries, which could offer higher energy density at a lower weight than existing batteries.

Backed by a list of big auto names that includes GM, Hyundai, and Honda, SES now expects its lithium-metal batteries to be mass-adopted first in drones for freight delivery services over the next three years, according to chief executive Hu Qichao. He added that the company would not introduce EV batteries until after 2025.

Lithium-metal batteries have pure metal lithium in the anode and come without the carbon materials that existing lithium-ion batteries use. Their adoption could allow automakers to develop EVs with a longer driving range and more cabin space.

Industry players are also racing to develop solid-state batteries with a lithium-metal anode, which has a solid electrolyte to enable charging and discharging and is viewed as being safer than those currently in use. SES’s products use liquid materials like today’s lithium-ion batteries and therefore have been considered “a bridge” between existing offerings and solid-state ones.

Other than the challenges in commercializing the newest battery technologies, representatives from the three automakers, SES, Canadian mining group Ivanhoe Mines, and Chinese lithium producer Tianqi Lithium talked about the ongoing US push for supply-chain decoupling from China at the Dec. 14 event.

The text below has been condensed and edited for clarity.

Timothy Grewe, director of electrification strategy, General Motors

We’re very excited about the lithium-metal battery and accelerating it into the marketplace. General Motors has a dedicated EV architecture that we call Ultium, and we specifically designed it to accept this new technology with minimum disruption in the manufacturing process. 

We’re aggressively pursuing this technology and trying to accelerate it as fast as possible. We think we’ve proven the durability of SES’s battery samples with 150,000 miles demonstrated in the lab. The next step is: “How do we get it into people’s hands?”

As we expand into this light-duty, high-volume application, there’s going to be a natural localization. That’s true for anything that we do in a high-volume automotive business. And now we have some of these accelerants, such as the Inflation Reduction Act or some of the other moves by the miners to make the supply chain more local where people use products and we can develop the whole ecosystem.

One of the most important things in high-volume manufacturing is always securing a stable supply. That’s always high value to us and fundamental in our business model. How do we make sure we never get a production interruption? We have numerous processes and contracts to make sure that happens.

Yongjun Jang, global R&D master, Hyundai

To make a battery with higher energy density, lithium metal could be the next-generation material for the anode, and there are two different pathways within it: the liquid approach and the solid-state approach.

Lithium-metal batteries use high-concentrated liquid electrolytes, so it is necessary to induce stable redox reactions to prevent excessive depletion of the liquid electrolyte and the lithium-metal anode at the interface. On the other hand, all-solid-state batteries use solid electrolytes, and it is necessary for solid electrolytes to maintain continuous close contact with lithium metal and prevent short circuits of the battery.

For these reasons, both electrolytes are important factors in determining the long-term durability of higher energy density batteries. It becomes even more sensitive and important in large-format batteries than in smaller ones. We should solve these issues before the commercialization of these new batteries.

SES is developing lithium-metal battery technology rapidly with the manufacturing completeness of large-format, 50Ah high energy density battery cells. If the long-term stability of the battery is secured by applying artificial intelligence technology, it will greatly help automotive companies.

Yoshiya Joshua Fujiwara, expert engineer, Honda

Honda focuses on safe, reliable, and low-cost technology, such as all-solid-state battery technology with lithium-metal anode. We think that’s the holy grail of low-cost battery technology due to its high energy density. We hope to realize commercialization within this decade, before 2030.

The approach SES is making is a more hybrid-based, lithium-ion-like manufacturing process. Honda is working on both technologies simultaneously. We don’t know which one is a cheaper way at the moment, but all-solid-state technology is new compared with what SES is utilizing.

Localization is one of our principles. We have been operating facilities and building supply chains locally in the US since the beginning of the last century. Honda will do the same for electric vehicles, and we are focusing on the US and China, the two major markets where we need to establish our supply chain individually. In particular, it is urgent for us to establish a supply chain in North America due to the Inflation Reduction Act. We believe it is important for us to control and integrate our supply chain locally.

Alice Lei, senior analyst, Tianqi Lithium

As an upstream player in the battery supply chain, Tianqi focuses a lot on lithium-related material innovations, such as lithium sulfur and lithium metal. That’s why we invested in SES, as we are trying to work with downstream battery cell makers to ensure we know what kind of lithium materials they want. We are quite excited about introducing new battery technologies to the market, but it will take a lot of courage and time to commercialize a disruptive technology like full solid-state battery.

We believe that the globalized battery supply chain that has been built in the past decade will probably be changed to be more localized in the next few decades. The Inflation Reduction Act has clarified that most of the critical minerals and materials could be produced in the US and we think it’s a trend that Europe will probably have its own battery act in the future. Therefore, it is important to choose our next location of expansion to comply with the trend and deal with geopolitical tensions.

Hu Qichao, founder and CEO, SES

Regarding ramping up the supply chain for new technology, our lithium-metal battery shares a lot of the supply chain with the current lithium-ion batteries, such as the cathode and manufacturing process. However, there are different parts and the current supply chain for lithium anodes is very fragmented and insufficient.

So we are working with partners to make the process, from mining to the final anode, as simple, streamlined, optimized, and with as few players involved as possible. I think that could be a really key factor to ramp up the supply chain for lithium-metal batteries. 

On geopolitical issues, we do recognize this manufacturing renaissance in North America where there is a lot of potential for battery manufacturing: abundant raw materials, fairly low-cost electricity, and access to well-trained labor and high technology. So we are preparing to build this entire supply chain in North America, for example, electrolyte, anode, and battery cell. This trend offers a lot of opportunities.

Robert Friedland, founder and executive co-chairman, Ivanhoe Mines

Every action begets an equal and opposite counterreaction. When you Balkanize the world economy, you stress the integrated world economy on the supply side. That means the critical raw materials we need to enable this energy revolution become even more important and that’s why we call this the revenge of the miners.

We’ve identified very important lithium resources in the US that can produce lithium metal quickly and efficiently. We’ve been looking at new ways to make lithium metal foil and the types of deposits that will enable us to actually do that. All of these instruments will be part of the orchestra that’s required for the US to have its own secure domestic supply chain for new battery technologies.

Lithium metal has the highest energy density on the anode side of the battery. So we will be a very low-cost lithium-metal producer and solve part of that problem. For the copper, nickel, and cobalt, that’s what we’ve been doing for the past decades. We intend to ensure that the entire supply chain can be audited, carefully studied, and done in a better and more responsible way.

CATL founder and chairman Zeng Yuqun detailed on Wednesday how his electric vehicle battery powerhouse could help reduce greenhouse gas emissions for Macau and potentially revolutionize many sectors, from public transportation to urban electricity, in the special Chinese administrative region.

On Wednesday, the BEYOND Expo 2022 opens online at a 3D metaverse space. As Asia’s largest and most influential tech event, the Expo will have more than 40 talks and panel discussions where leaders and experts across sectors dive deep into the topics of consumer tech, health tech, global investments, sustainability, and Web3.

Please find below the transcript of the opening day speech from Zeng Yuqun, founder chairman of CATL. The following transcript has been edited for clarity:

It is my great honor to participate in the opening ceremony of the BEYOND EXPO 2022 and share my thoughts on the future with you.

CATL is a new energy innovative technologies company. We are committed to taking electrochemical energy storage as well as renewable energy power generation as the core to replace stationary fossil energy, thus reducing dependence on thermal power generation in energy production; taking EV batteries as the core to replace mobile fossil energy such as petroleum; taking electrification and intellectualization as the core to promote the integrated innovation of market applications, providing sustainable, affordable and reliable new energy solutions for all walks of life.

The three topics of this year’s BEYOND: healthcare, sustainability, and consumer tech, are actually closely related to CATL and the new energy industry we are engaged in.

Life sciences are the eternal theme of human beings. Environmental degradation is putting unprecedented pressure on all human beings and our earth. Disasters caused by global warming have threatened the survival and health of human beings. Therefore, it is the responsibility of every citizen of the earth to spare no effort to reduce carbon emissions.

Last year, we supplied 40% of the world’s energy storage batteries, helping to greatly improve renewable energy consumption efficiency. In the first half of this year, our EV batteries accounted for 34.8% of the global market, providing electrification solutions for 57 countries and regions worldwide. Behind this data is a huge amount of carbon emissions reduction.

On average, the entire life cycle of a pure electric vehicle contributes about 14.1 tons of carbon emissions reduction. I believe that our batteries can facilitate the electrification of more sectors and make a greater contribution to global carbon neutrality.

High quality is the key to sustainable development. The new energy industry must work hard in two directions. One is that the products must be perfect so consumers can use them confidently; the other is that the batteries must be low carbon for consumers to protect the environment.

CATL has been making efforts in these two directions for a long time. Our extreme manufacturing has improved the defect rate of battery products from PPM to PPB level, reducing it from one in a million to one in a billion. Our Ningde production base has also become the only lighthouse factory in the battery industry recognized by the World Economic Forum. Our Yibin production base achieved carbon neutrality in 2021, becoming the world’s first zero-carbon battery factory.

We are also committed to sharing our high-quality, sustainable development experience with upstream and downstream partners to help reduce carbon emissions in the entire industry chain.

The third topic is consumer tech. As electric cars continue to penetrate the market, batteries as the core power source are becoming a typical consumer technology. Over the years, CATL has been committed to leveraging innovative technologies to solve consumers’ pain points regarding range, safety, low-temperature performance, and charging speed. With the continuous improvement of battery performance, more and more consumers have joined new trends championed by battery technologies.

For example, supported by our pioneering CTP (cell to pack) technology, Qilin battery has achieved the highest integration level globally, offering 1,000 km (621 miles) range and 4C fast charging. Many OEMs received inquiries from consumers about purchasing Qilin-powered models right after our Qilin battery was launched. The first model powered by Qilin batteries will be launched in the first quarter of next year. Friends in Macao are welcome to stay tuned.

Macao is a beautiful and vibrant city. What’s next? I think in the near future, Macao can take the lead in becoming a zero-carbon city, a global model of comprehensive electrification and carbon neutrality.

In the process of “electrifying” Macao, CATL intends to facilitate Macao in three aspects. The first is the electrification of transportation. In recent years, the Macao SAR government has actively responded to the country’s call to achieve the goal of peaking carbon emissions and achieving carbon neutrality, advocated green transportation, plus a strong awareness of environmental protection among Macao residents, all of which have provided favorable conditions for Macao’s electrification.

As an experienced player in this field, CATL has the world’s leading solutions for the electrification of various transportation facilities. For the urban characteristics of Macao, CATL’s EVOGO modular battery swapping solution has outstanding advantages. The battery can be adapted to different brands and models. It only takes one minute to swap a battery block.

Our battery swap station solution highlights high compatibility, need-based battery rental, and complementarity with charging services. There are up to 48 batteries in one station, which can fully meet the high-frequency demand for a battery swap. Not only that, our battery swap station can also become the city’s UPS, ensuring the uninterrupted supply of electricity in a certain region.

Secondly, Macao boasts a well-developed water transportation network, and the development of electric ships is at the right time. CATL is the first EV battery company that has passed the approval and inspection of the latest testing guideline of the China Classification Society “Inspection Guidelines for Battery Electric Ships.” Our batteries have been widely used in electric passenger vessels, sightseeing ships, governmental maritime vessels, scientific research ships, yachts, etc., and have accumulated many solutions. Once Macao realizes the electrification of water transportation, it will be able to bid farewell to diesel smell and noise.

Also, we are poised to support energy conservation and carbon emissions reduction in Macao’s electricity consumption. Macao’s commercial electricity accounts for about 80%, and most of the electricity is not supplied locally. Therefore, improving the efficiency of urban energy utilization is an inevitable requirement for carbon emissions reduction, and energy storage can play a huge role in power transmission and distribution, as well as power consumption.

Featuring long service life, a high level of integration, and substantial safety, our energy storage system EnerOne can achieve a service life of 10,000 cycles and is compatible with converters ranging from 600V to 1500V. It covers an area of only 1.69 square meters, which is especially suitable for the application of industrial and commercial energy storage. The energy storage system can facilitate frequency regulation and a peak load of the power grid while enabling large commercial facilities to reduce electricity costs effectively.

At present, there are more than 5 million new energy vehicles in the world equipped with CATL batteries. We will innovate to develop the aftermarket, have established the world’s largest after-sales service network, and have a large number of after-sales product solutions.

Dear leaders and friends, technology creates a better life, and electrification helps achieve energy freedom. I believe that electrifying Macao will help Macao become a zero-carbon garden that shines in the world. CATL will go all out to increase investment in innovation and use the most advanced new energy solutions with the lowest carbon emissions consumption to contribute to the high-quality and sustainable development of Macao and the world.

Thank you!

Chinese flying car startup HT Aero has raised $500 million as part of a new round of funding as it pushes to popularize its technology.

Why it matters: HT Aero, an Xpeng-affiliated company, said the fund is the largest venture funding round for a startup in Asia’s passenger flying vehicle sector to date, according to a Tuesday press release. 

Details: Electric vehicle maker Xpeng Motors led the Series A funding round, along with Chinese venture capitalists IDG Capital and 5Y Capital.

• A number of other new investors also jumped on board, including Sequoia China, Eastern Bell Capital, and GGV Capitals. HT Aero saw its valuation rise above $1 billion before the investment.
• The Guangzhou-based aviation startup plans to use the proceeds to develop a new version of its flying vehicles for both low-altitude air travel and road driving, scheduled for release in 2024, founder Zhao Deli said in the press release.  
• “The investment in HT Aero will further accelerate the build-up of our ecosystem to integrate driving and flying,” Xpeng chief executive He Xiaopeng said.

Context: HT Aero in July unveiled its latest electric passenger drone, Voyager X2, featuring a flight time of 35 minutes and a maximum speed of 130km per hour (around 80mph). Yet the company has no plans for mass production of the two-seater flying vehicle prototype, for now, Caixin (in Chinese) reported Wednesday, citing a company representative.

• The technology is still at an experimental stage, making market valuation difficult. Morgan Stanley estimated the global autonomous urban aircraft sector to be worth $1.5 trillion in a report published in May 2020. However, they cut this figure to $1 trillion earlier this year.

Shares of Baidu rose nearly 14% on Tuesday on the news that the Chinese search engine company is planning to build its own electric vehicles.

Why it matters: The search engine leader’s interest in jumping into EV manufacturing is the latest sign that investment in the sector is picking up tempo, as Chinese tech companies are seeking to get in on enthusiasm for EVs amid a sales rebound in their home market.  

• Baidu is not the only tech giant buying in to the sector. Alibaba has partnered with China’s biggest automaker SAIC and a Shanghai government-backed entity in an RMB 7.2 billion ($1.1 billion) project to develop premium EVs, according to an announcement released Nov. 27 (in Chinese).

Details: Baidu has been in discussion with car companies including China’s biggest private automaker Geely, Toyota manufacturing partner GAC, and the state-owned FAW Group for a possible majority-owned venture to build EVs, according to a Reuters report.

• A Baidu spokesperson responded that it has no comment on market rumors. GAC said it recently signed a framework agreement with Baidu, but has no further details regarding the partnership. The two companies last Tuesday announced a collaboration to jointly develop self-driving and connected vehicles.
• A Geely spokesman said it was “not familiar with the matter.” Baidu is also deepening its alliance with Geely, in October leading the RMB 1.3 billion Series A in Ecarx, a Geely-backed in-car software company. Geely’s infotainment system has been enabled with Baidu’s voice recognition technology and embedded with Baidu’s mobile apps since late 2019.
• “It wouldn’t be a wise move if Baidu decides to build its own EVs,” said industry watcher Yu Linglin, a former reporter at Chinese financial media 21st Century Business Herald (our translation). The tech company would have to put large amounts of capital into the business, but is not likely to get signs of commitment such as exclusivity or cownership of each other’s stocks in return, Yu added.

Context: Chinese tech giants have backed leading young EV makers aiming for control over the companies and a foothold in the booming segment, and are doubling down as the country’s EV sales started to recover since March.

• Baidu has been a major backer of Shanghai-based EV startup WM Motor since late 2017, and led its RMB 3 billion Series C two years later. WM Motor in September secured another RMB 10 billion war chest mainly from a group of capital funds backed by the Shanghai local government.
• Alibaba is the biggest external shareholder in EV maker Xpeng, while food delivery platform Meituan and its founder Wang Xing are the largest shareholders in Li Auto after founder Li Xiang.
• Baidu is also accelerating efforts to get its voice-enabled operating system and content offerings into vehicles’ dashboards amid a rising user demand for in-car information and entertainment services. Progress has been slower than expected, as leading carmakers are reluctant to cede over their control to tech giants.

Read more: DRIVE I/O | The battle for leadership in car software

Shanghai-based lending and wealth management unicorn Lufax is looking to raise $2.36 billion in its debut on the New York Stock Exchange, according to the market’s website.

Why it matters: Lufax is one of two Chinese fintech firms looking to raise multi-billion dollar amounts on US exchanges this autumn. Chinese tech companies meanwhile face increasing scrutiny from US regulators and China vies to keep homegrown tech companies from listing abroad.

• Ant Group has filed a draft prospectus to list on Nasdaq, for what could be one of the biggest IPOs in history.
• The Shanghai STAR market, with relaxed IPO rules, is aimed at keeping Chinese tech firms from overseas listings.

READ MORE: Ant Group IPO filings: five key takeaways

Details: Lufax filed in early October to go public but details have not been released.

• The Ping An-backed giant is selling 175,000 American Depositary Shares priced between $11.50 and $13.50, bringing the higher end of the range to $2.36 billion.
• Lead underwriters are Goldman Sachs, Bank of America Securities, UBS Investment Bank, HSBC, and China PA Securities.
• Lufax’s net profit dipped 2.8% year-on-year in the first half of 2020 to RMB 7.272 billion in H1 2020, according to a filing to the US Securities and Exchange Commission (SEC). In the same time period, its total revenues increased by 9.45%, the company said.

Context: Lufax was founded in 2011 by Ping An Insurance as a peer-to-peer lending company, but has gradually expanded its business into wealth management.

• In the six months ended June 30, 2020, less than 3.5% of the revenue of its tech platform came from wealth management services.
• Ping An reportedly now owns 43% of the unicorn after several rounds of investment.
• Lufax has raised $3 billion to date, according to startup information site Crunchbase. It was valued at $38 billion after its latest funding round in 2018, Reuters reported.
• In April, US-listed Chinese coffee startup Luckin Coffee admitted to fabricating RMB 2.2 billion in sales. Since, streaming platform Iqiyi and edtech company GSX Techedu have both admitted that they are under investigation for fraud by the SEC.
• Congress has proposed a bill to enhance regulatory oversight of US-listed Chinese companies, and a working group convened by the US president has made similar recommendations to the SEC.

READ MORE: INSIGHTS | What’s at stake in fight over delisting Chinese firms

• The prospects of increased regulatory oversight haven’t stopped Chinese tech firms from tapping into US capital markets. Electric vehicle companies Xpeng and Li Auto both went public in the US in the third quarter.
• JD.com’s fintech unit is one of the Chinese tech companies planning to float shares on the Shanghai STAR market.

DST, a startup which provides online logistics solutions for new energy vehicle (NEV) fleet management, has secured an undisclosed amount of funding in the tens of millions of dollars in a Series C1 round, Chinese media reported.

Why it matters: The Shenzhen-based startup is taking a different approach to NEVs, betting on commercial logistics fleets instead of individual cars.

Details: The round was led by New York-based venture capital firm Olympus Capital, and the other two investors have both participated in DST’s past fundraising rounds.

• The first repeat investor, according to the report, is Japanese conglomerate Itochu Corporation. It participated in the startup’s October 2018 Series B when it raised RMB 300 million (around $43 million).
• The second is Jeneration Capital, a Hong Kong-based venture capital firm which led DST’s Series B+ in June 2019, when it raised $70 million.
• The new funds will be used to upgrade DST’s digital operation management platform, expand their smart assets and services, and fund research and development for new products, the article said.

Context: DST was founded in 2015 and provides maintenance and operation support for 10,000 NEV logistics vehicles using a fleet management app and a network of offline services.

• The company now counts more than 3,000 charging stations in 50 cities in China in its network, as well as maintenance facilities, according to its website (in Chinese).
• Qiming Ventures led the startup’s Series pre-A and A funding rounds, according to startup tracking website Itjuzi. The Chinese VC has also backed bike-sharing app Mobike, streaming site Bilibili, and artificial intelligence startup Megvii.