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China Roundup: GitHub’s China ambitions and WeWork rival’s big hopes

Hello and welcome back to TechCrunch’s China Roundup, a digest of recent events shaping the Chinese tech landscape and what they mean to people in the rest of the world. This week, we are looking at how WeWork’s largest rival in China — UCommune — is pulling ahead with its initial public offering and GitHub’s potential big move in China.

GitHub turns to China

The world’s largest source code repository host GitHub is mulling to open a Chinese subsidiary, the company’s CEO told the Financial Times recently. The plan comes at a time when the technological rift between China and the U.S. is deepening. The U.S.’s trade sanctions on Huawei, which includes limiting the company’s access to certain Android services, has stirred concerns of further “decoupling” between the two countries. Since then Huawei has stepped up efforts to cut its reliance on American suppliers and develop its own core chips and software operating system.

American tech companies are feeling a similar chill from the trade war. Opening a China office could potentially help GitHub hedge against trade war bans and alleviate the company’s risks in its second-largest market. The demand for a China backup plan appears to have grown after GitHub restricted accounts of users in Cuba, Iran and a few other countries to comply with U.S. sanctions, a decision that sparked an outcry from open-source developer communities around the world and worried Chinese users that the same could befall them.

On the other hand, developers in China and overseas worry that maintaining a China-based operation might subject GitHub’s local projects to Beijing censorship as the country requires foreign companies operating in China to store users’ data locally. Though GitHub has previously been blocked in China seemingly for sharing anti-censorship tools, the restriction was usually temporary. As of now, the site remains largely accessible in China, according to Greatfire.org, a website that monitors China’s online censorship. But the concerns are justified. LinkedIn and Bing, sharing the same parent company — Microsoft — with GitHub, have been roundly criticized for practicing censorship in China.

Big hopes and losses

China’s shared space provider UCommune is moving ahead of its rival WeWork as it filed with the U.S. securities exchange for an IPO this week. Like its American counterpart, UCommune — which rebranded from UrWork after a name dispute with WeWork — hasn’t yet found its way to profitability. The Beijing-based company posted a net loss of 573 million yuan ($80.13 million) for the first three quarters ended September 30, 2019, up from 271 million yuan a year earlier, shows its F1 filing.

UCommune founder Mao Daqing, a real estate veteran, has previously forecasted that China’s co-working industry would be valued close to 100 billion yuan ($14 billion) by 2030. The reality is a bit more dismal. WeWork is reportedly coping with high vacancy rates across major Chinese cities, although sources told TechCrunch that spaces could be easily filled up with one or two large corporate contracts per location.

Perhaps more notably, half of UCommune’s revenue is derived from so-called “marketing and branding services,” which include content design as well as online and offline advertising services it sells to customers. The marketing segment, curiously, is attributed to one single subsidiary, a digital marketing services provider it acquired in late 2018. UCommune warns in its prospectus that “the historical financial results of our marketing and branding services may not serve as an adequate basis for evaluating the future financial results of this segment” because revenue from the unit relies overwhelmingly on a small number of major enterprise clients.

Also worth your attention…

Despite Huawei’s push to build its own alternative operating system — HarmonyOS — the Chinese giant is sticking with Android for the foreseeable future. At a company event this week in Shenzhen, its home city, consumer software executive Wang Chenglu announced (in Chinese) that all of Huawei’s handsets, tablets and laptops will continue to carry Android-based OS in 2020. Meanwhile, Huawei’s other products, including a broad range of Internet of Things that make up a smaller chunk of its consumer revenue, will ship with HarmonyOS.

Kuaishou, the largest rival to TikTok in China has reached 100 million daily active users, the company announced (in Chinese) this week. Tencent-backed Kuaishou was one of China’s first short-video apps to have attracted a meaningful following, but it was quickly leapfrogged by a latecomer, ByteDance’s Douyin, which is TikTok’s brand in China.

Though similarly focused on bite-sized videos, the two apps differ fundamentally in the way they distribute content. Trending videos on Douyin tend to come from pedigreed influencers and professional creators; users are fed what Douyin’s complex algorithms determine as “quality” content. Kuaishou, in comparison, works to cultivate a sense of community as its users get exposed to a broader range of long-tail content — often from creators with insignificant followings.

That places Douyin closer to a form of “media” and Kuaishou closer to a “social network,” suggested (in Chinese) Liu Jianing, managing director of China’s top boutique investment bank China Renaissance, at a recent industry conference. For that reason, the two apps also monetize differently — while Douyin generates revenue mainly from ads, Kuaishou harnesses its social graphs to enable social commerce wherein shoppers leverage other users’ recommendations to make purchases.


Source: TechCrunch

The new new weird

Neo-Pentecostal gangs in Brazil, driving out other faiths at gunpoint. A mob of 100 lawyers attacking a hospital in Pakistan to revenge themselves on violent doctors there. Anti-vaxxers, neo-Nazis, and red-pillers. Sometimes it seems like the world has fragmented into a jagged kaleidoscope of countless mobs and subcultures, each more disconcerting than the last.

Much of this is selection bias: if it bleeds, it leads, in both mass media and social-media algorithms. But it does seem plausible that the Internet is contributing to this kaleidoscope, to this growth in worrisome fringe subcultures, in three separate ways: complexity, information, and connectivity.

Connectivity is the most obvious avenue. The Internet empowers everyone to find their like-minded people, and this is as true of the hateful and vengeful as it is of the dispossessed and downtrodden. Furthermore, the power of a group increases nonlinearly with its size. The hateful views of one man in a community of 100 people are unlikely to make a huge collective difference; worst case, they become a fabled missing stair. But 1% of a nation of 100 million? That’s a million people. That’s a movement ready to join, to march, to pay tithes, to reinforce one another.

Information is more subtle. There’s a fascinating quote from the recent New Yorker profile of William Gibson: “Gibson noticed that people with access to unlimited information could develop illusions of omniscience.” You can get any kind of information you want on the Internet. You can find what appear at first glance to be closely argued and well-supported claims that global warming will kill off all but half a billion people by the end of this century, and also, if you prefer, that global warming is an authoritarian hoax.

No wonder people increasingly act as if the truth is something you choose from a buffet rather than a fact that will eventually bite you, hard, if you refuse to believe in it. As Philip K. Dick put it, “Reality is that which, when you stop believing in it, doesn’t go away.” But if all your information comes from the Internet, and is never testable, you never have to stop believing in it … until it’s far too late.

Complexity is, I think, the saddest. It has nothing to do with being led astray by evil companions or disinformation. It’s just that our modern world has become so complicated, such an endless buzz of noise and events and obligations, that lashing back against it, fixating on a simple solution to all the world’s problems, makes people feel strong. This delightful article about schisms among believers in a flat Earth includes the telling quote: “When you find out the Earth is flat … then you become empowered.”

Is the world going to get weirder yet, with new and more bizarre and inexplicable subcultures erupting from the Internet with every passing year? Have we hit the plateau of an S-curve? Or are we in a local minimum, and as we get better at dealing with connectivity and complexity, will we look back on these as the crazy years? My money’s on door number two … but I’ve been outweirded before.


Source: TechCrunch

WWE TLC 2019: Results, Daniel Bryan return, match ratings and full recap – CNET

WWE ends 2019 with one strange pay-per-view.
Source: CNET

Max Q: Blue Origin launches a New Shepard and Rocket Lab officially opens U.S. launch site

Max Q is a new weekly newsletter all about space from TechCrunch. Sign up here to receive it weekly on Sundays in your inbox.

This is it – the very first edition of Max Q: TechCrunch’s space newsletter. Despite approaching the end of the year, it’s been a really busy week in the space industry, too. Between launches real and metaphorical, there’s plenty of activity to catch up on. And if you’ve got any space stuff you want to share for future newsletters, feel free to email me at darrell@techcrunch.com or let me know on Twitter @etherington.

Space enters a bit of a frenzy time at year’s end as a lot of other areas in tech are slowing down – especially over the past few years, as a number of companies push to re-ignite crewed spaceflight in the U.S. It’s common for many of these companies, and NASA itself, to set ambitious, optimistic timelines, and that often also means trying to fit in as much as possible before the year is out to make good on at least some of those promises.

Blue Origin launches and lands 12th New Shepard

Blue Origin launched its 12th New Shepard sub-orbital spacecraft this week, on its second try after bad weather scrubbed the first attempt. The launch was the sixth for the booster stage rocket used on the mission, and it landed perfectly meaning it could potentially serve even more launches in future.

Onboard were experimental and research payloads from Columbia University and NASA’s Kennedy Space Center, as well as student postcards and art projects from a collaborative contest launched with the band OK Go. This mission is also noteworthy because it’s yet another step in Blue Origin’s progress towards qualifying New Shepard for human flight, after which it’ll start to shuttle tourists to space for a quick, but unbeatable, view.

Rocket Lab’s U.S. launch site is officially open

Rocket Lab, one of few launch startups that’s actually flying payloads to space, has officially opened its second launch pad – this one in the U.S. The company’s original launch site, which will continue to fly missions, is in New Zealand, but its new launch facility on Wallops Island in Virginia will open the doors for a key new customers, the U.S. Air Force. The first launch from this site, designed LC-2, should happen sometime in the first half of next year.

Kepler Communications books SpaceX rideshare missions

Small satellite startup Kepler Communications has booked two batches of nanosatellite launches on board SpaceX’s new rideshare missions. SpaceX announced earlier this year that it would be doing this as a new offering, allowing companies with smaller payloads to book space on a ride that will take up a bunch at once. It’s perfect for startups like Kepler, who wouldn’t be the primary customer on any SpaceX mission, and who might not be able to find a large lead partner to foot the majority of the bill for a mission that works on their schedule.

Near Space Labs uses stratospheric satellites to do what orbital ones can’t

A new startup is looking to produce high-resolution, on-demand and timely imaging for various customers and applications, and it’s using its own custom satellites hat are carried by weather balloons to make it happen. Advantages of taking this approach include cost, as well as access and the ability to capture very detailed pictures without having to use massively expensive and bulky optics, as you would from space.

Northrop Grumman booked a customer for its first OmegA rocket flight

Northrop Grumman’s in-development OmegA launch craft will be able to carry large payloads, and it’ll be doing that mostly on behalf of the U.S. Air Force and other U.S. defence agencies. But the rocket will first need to qualify to get USAF clearance to operate, and it’s going to be using its first ever launch in pursuit of said qualification to also ferry payloads for paying customers. Two birds, one stone, as they say.

What starfighters would look like if Porsche was in the Star Wars universe

There’s a new Star Wars movie coming out this week, and it’ll definitely feature new ships and other fancy sci-fi gadgets, if previous films are any indication. One you won’t see in the movie is this starfighter, which was designed in collaboration with both Porsche and Lucasfilm . The ship has a distinctive Star Wars vibe, to be sure – but Porsche says it’s also got elements inspired by the 911 and Taycan. Still definitely wouldn’t look out of place berthed next to the Millennium Falcon.

What to watch out for this week

SpaceX has a launch coming up on Monday, and the crucial Boeing/NASA commercial crew capsule test launch is set for Friday, December 20. That launch will be the uncrewed version of the first-ever commercial crew launch for Boeing’s Starliner crew capsule, and if all goes well, that will mean we’re closer than ever for U.S. astronauts launching once again from U.S. soil aboard an American launch vehicle.


Source: TechCrunch

China podría usar la ciencia occidental con fines militares, según un informe

La ‘start-up’ de inteligencia Strider defiende que el país asiático se estaría aprovechando de las instituciones europeas y estadounidenses para formar a investigadores cuánticos y desarrollar tecnología militar. Sin embargo, las pruebas no son concluyentes y algunos expertos critican las conclusiones
Source: MIT

SpaceX lanzará satélites menos brillantes por el bien de los astrónomos

Tras desplegar parte de su constelación de satélites Starlink en la órbita baja, la compañía ha recibido críticas de los científicos porque sus miles de luces brillantes perjudican la observación espacial. Ante la presión, probará una mejora para que sean menos reflectantes, aunque tal vez no sea suficiente
Source: MIT

WWE TLC 2019: How to watch, start times, full match card and WWE Network – CNET

The women will steal the show.
Source: CNET

Uber all set to sell UberEats’ India business to Zomato

Uber is in advanced stages of talks to sell its food delivery service UberEats’ India business to local rival Zomato, as the American ride-hailing giant looks to cut its spending globally, three people familiar with the matter told TechCrunch.

The deal values UberEats’ India business at around $400 million, one of the sources said. As part of the deal, Uber may invest between $150 to $200 million in Zomato and get a sizable stake in the 11-year-old Indian firm, people said.

A spokesperson for Uber declined to comment on Saturday. A text to Zomato founder and chief executive Deepinder Goyal, who met Uber executives mid-last week, remained unanswered.

The deal comes at a time when Zomato is in final stages to close a new financing round of $600 million, Goyal told news agency PTI earlier this month. TechCrunch reported earlier that China’s Ant Financial was close to leading a financing round of up to $600 million in the 11-year-old firm.

The terms of the deal are still being negotiated, and the deal could finalize before the end of the year, people said. Indian newspaper Times of India first reported about Zomato and Uber’s talks last month.

If the deal goes through, it would mark the end of a year-long struggle for the U.S. giant that has had conversations with both Zomato and Prosus Ventures-backed Swiggy to offload UberEats’ India business.

Uber launched its food delivery service UberEats in India in mid-2017. Even as the ride-hailing giant offered significant discount to customers, UberEats never posed a real threat to Zomato and Swiggy, both of which process more than 1 million orders each day.

In comparison, UberEats’ daily volume of orders peaked under 600,000, said one of the sources. Furthermore, recent quarters have been tough for UberEats, which saw two key executives — Bhavik Rathod (UberEats’ India and Southeast Asia head), Deepak Reddy (head of central operations for UberEats in India) — leave the company.

During his visit to India in October this year, Dara Khosrowshahi said the company remains committed to India, but avoided a question surrounding UberEats’ future in the nation.

In recent earnings call, Khosrowshahi has acknowledged that UberEats is facing tough competition in India but said that the company would continue to operate in the good delivery space.

“Right now the market is very, very competitive. There are a few very strong competitors there. Generally, I would tell you that we want to be the #1 or #2 in every single market. Right now in India, we’re the #3. And so the team knows there’s a big lift ahead of them, but we’re on the game,” he said in August.

More to follow…


Source: TechCrunch

New Orleans city computers offline after cyberattack – CNET

It wasn’t immediately clear whether ransomware was to blame.
Source: CNET

RCS messaging has rolled out to Android users in the US

Here’s a nice little surprise for Android users this weekend. It seems that Google’s pans to roll out Rich Communication Services (RCS) messaging is slightly ahead of schedule. The company announced in November that it would be making the feature available for all Android users in the country by year-end.

A tweet from Android Messages product manager Sanaz Ahari confirms that the SMS-successor has been made available to users in the States as of this week. The new protocol brings with it some key advances over messaging stalwart, SMS.

The update brings a lot of features that many have been compared to iMessage, Apple’s standard protocol that’s done a good keeping many users onboard with iOS, for fear of becoming a green bubble. Key features include read receipts, the ability to see another user typing in real-time, larger file transfers and improved group messaging (though, as noted, some features like end to end encryption are still lacking).

Notably back in October, the U.S.’s four primary carriers formed a rare joint effort to accelerate the adoption of RCS. Both the Messages app and carrier services have to be updated to get access. Users in the U.K. and France also have access to the feature as of this summer, with more countries coming soon.


Source: TechCrunch

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