Huawei narrowly survives British Parliament revolt

Hi everyone – James here. The cost of the coronavirus is counted; check out the estimate that it threatens $ 11 billion in Asian tech profits (Mercedes top 10). In other evidence of a collapse of Asian technology, find the FT scoop on growing pressure for a merger between Grab and Gojek, the most valuable start-ups in Southeast Asia (Mercedes top 10). Don't miss the podcast on “Digital Dictators” and more of the big issues competing for Huawei and 5G in Europe in our great history. Take care wherever you are in the world. Remember that Tech Scroll is free to read for a month, so forward this email to anyone who may be interested.

The great story

Huawei's ambitions to build 5G infrastructure in Europe survived a British parliamentary rebellion, but just. A total of 38 Conservative MPs voted against the government of Boris Johnson to support a legal amendment which, if adopted, would have banned Huawei from British telecommunications networks in late 2022.

The rebellion failed, but by a narrower majority than expected by 306 votes to 282. However, opposition to the Parliament should persist because London has not yet legislated on Huawei's involvement. The United States has pressured European allies to flee Chinese society.

Key implications: President Donald Trump was "apoplectic" about the UK's decision this year to allow Huawei a limited role in its 5G telecommunications infrastructure. The United States is also pressuring Germany, which is expected to decide on the involvement of Chinese society this month.

France, where Huawei pledged last month to build a telecommunications equipment manufacturing plant, has yet to make a clear decision. Its cybersecurity agency examines equipment Huawei and Orange, the leading French mobile operator, has already chosen Nokia and Ericsson, Huawei's European competitors, for its 5G services.

Result: Europe is a crucial battleground for Huawei, which denies all allegations of espionage. The United States, Australia and New Zealand have already clearly indicated their intention to ban Chinese society, while Japan seems to follow this line without specifying it. Canada and Singapore are considering their positions.

Mercedes top 10

A summary of the best tech stories of the week from Asia tech FT journalist Mercedes Mercedes Ruehl.

1. Investors in Grab and Gojek, South East Asia the biggest tech start-ups lobby Japan SoftBank to achieve a merger between the two companies. Discover the FT scoop here.
2. Here is the editor of Nikkei Asian Review, Ken Koyanagi, who explains why critics may be wrong this Indian the Oyo hotel chain is "just another WeWork".
3. Goldman Sachs counts Asian Chip and other high-tech manufacturers, including Samsung, TSMC, Lenovo and Foxconn, will face nearly $ 11 billion in profit – a decrease of 7% – in fiscal 2020 due coronavirus. More here.
4. Ikea chose a Chinese will launch one of its most critical tests: selling its products through a third-party website for the first time. The retailer hopes the deal with Alibaba will help it reach more Chinese consumers. (Swedish meatballs not included.)
5. The alternative meat industry uses "microextrusion" technology to create ambitious products whose textures are like real "cuts" of steak and chicken breast. This gives the Impossible Burger a positively archaic appearance.
6. The Trade Secrets team, FT's trade newsletter, analyzed China campaign to increase its influence within powerfully silent regulatory agencies. But the Beijing candidate lost the race for the head of the World Intellectual Property Organization after a dramatic counterattack by wealthy economies, in particular WE. Discover the saga here.
7. Here's a good catch on how Walmart-supported Google and PhonePe are mitigating hatches before the imminent launch of WhatsApp Pay in India. WhatsApp Pay from Facebook received the regulatory sign last month and I tip the platform to make rapid breakthroughs given its large user base.
8. Apple's next iPhone software update looks like will become much more comfortable with Alipay & # 39; s Alipay, China main payment provider. It's a good thing for both companies. Don't miss either this piece on how Alipay is stepping up its battle against WeChat, its main Chinese rival.
9. Malaysia The technology sector has been one of the biggest beneficiaries of the United States-China trade war. The coronavirus has quickly knocked down this windfall.
10. Tokyo & # 39; s the busy Yamanote train line is one of the government's unlikely priority areas for technological innovation. We mentioned before the exercise app was tested on its trains, the new station on the line use robots.

When the wise speak

• Catch that great podcast about "digital dictators" and how they use artificial intelligence to suppress cheap populations. Andrea Kendall-Taylor of Transatlantic Security Program at the Center for New American Security explains how technologies that used to be used to protest are now being used to suppress reluctant populations.
• Don't miss it detailed report on the industrial revolution led by computing power, digital technology and renewable energies by Damien ma, Houze Song and Neil Thomas at MacroPolo, a think tank at the Paulson Institute. China is a leading player in these technologies.
• here is a reflection test through Moqierish Tak for the Indian think-tank ORF on the low representation of women in technology sectors in India. As a female tech entrepreneur, the author claims that the scarcity of women in the start-up community is due to a mix of influences.
• Rui Ma and Ying-Ying Lu, which we often present in this section, have recorded a Podcast on how cohabitation and co-work have moved from the hottest to perhaps the coldest sector of Chinese technology. You may wonder if cohabitation and co-working qualify for the "technology" label, but what is clear is that these activities have been burdened with coronavirus.

In the spotlight

Coronavirus, associated with an oil price war, has brought Alibaba founder Jack Ma back to his position of The richest man in Asia, overthrowing Indian magnate Mukesh Ambani.

The virus has affected Alibaba, but the damage has been mitigated by increased demand for its cloud services and mobile applications. According to the Bloomberg Billionaires Index, Mr. Ma returned to first place (he was number one in 2018) with a fortune of $ 44.5 billion. Ambiance's Reliance Industries share price has fallen by more than 26% this year, compared to around 7% for Alibaba's US stocks.

Alibaba is one of the leading companies trying to tap into the national practice of working from home in China during the Covid-19 epidemic with its business app DingTalk. The cloud unit of the Chinese tech group has also grown rapidly and, although it continues to lose money, these losses are shrinking.

The art of the deal

A year of uncertainty for Grindr, the world's most popular gay dating app, has finally come to fruition. Beijing Kunlun Tech, the Chinese owner of Grindr, has agreed to sell the app to San Vicente Acquisition for around $ 608.5 million, which is worth reading if you don't have not follow the case to understand how deep the concerns of the United States over the perceived threat from China using sensitive data.

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• A Chinese start-up that helps companies reimburse their employees for business travel and other work-related expenses has obtained series B + round. Fenbeitong & # 39; s Round was led by Silicon Valley-based fintech venture capital, Ribbit Capital and Paul Hudson's growth stock company Glade Brook Capital. Eight Roads Ventures, Fidelity International's investment platform, also participated.
• A number of Asian investors participated in a $ 22.6 million Series B round for Numab Therapeutics, a Zurich-based biotechnology company that develops cancer immunotherapies. These include Sunshine Guojian, a subsidiary of the Chinese-listed biotechnology company 3SBio, Mitsubishi UFJ Capital in Japan and the pharmaceutical company Eisai.

Smart data

Here is a striking table on the effect of coronavirus on China's largest public transport company. According to data from Aurora Mobile, daily active users on the Didi Chuxing app dropped by more than half after the government recognized the coronavirus epidemic. Beijing drivers, meanwhile, say they can spend up to two hours waiting for a passenger. To learn more about how the fall comes at a crucial time for Didi, who is struggling to achieve profitability, click here.

Regulatory summary

Australian policymakers have made it clear that they disagree with Big Tech companies, particularly with regard to data and the power they exercise. This week, the government hit Facebook again, continuing the WE about his role in the Cambridge Analytica scandal. The Australian case, one of the many that Facebook faces, is now before the Federal Court. The FT correspondent in Sydney, Jamie Smyth, has more.