What is driving the acceleration of China’s unicorn enterprises

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 The view of the Yangtze River Bridge in Southwest China's Chongqing. Photo: VCG

The China Unicorn Enterprise Development Report (2025), released at the Second Global Unicorn Company Conference, reveals that China currently has 409 unicorn enterprises with a total valuation of approximately $1.5 trillion. This accounts for nearly 30 percent of the global unicorn firms and ranking China second worldwide. At the same time, international capital is demonstrating its confidence in China's technological innovation and economic growth through concrete actions. Foreign media, including Fortune magazine, have noted the significant inflow of international capital into China, emphasizing the immense appeal of the country's tech companies and their innovative potential. These developments send an increasingly clear message to the world: walking alongside China means walking with opportunities, believing in China means believing in the future and investing in China means investing in tomorrow.  

In 2013, American venture capitalist Aileen Lee coined the term "unicorn" to describe tech startups valued at over $1 billion that are not listed on a share market, drawing inspiration from the mythical creature known for its rarity and value. While unicorn enterprises are no longer as scarce as they were a decade ago, they continue to represent highly innovative and fast-growing companies, widely regarded as key indicators of the latest technological revolutions and industrial transformations. Compared to the 369 unicorn enterprises listed in last year's report, the number and geographical distribution of Chinese unicorns have further expanded this year. Additionally, according to another report released last year, from 2016 to 2023, the number of unicorn enterprise sectors in China increased from 22 to 39, shifting from a focus on business model innovation to one increasingly driven by technological advancements. Unicorn enterprises are playing an increasingly prominent role in China's economic transformation and upgrading.

With breakthroughs in cutting-edge technologies such as artificial intelligence (AI), quantum computing and biotechnology, China's innovative tech enterprises undoubtedly are set to play an increasingly significant role in the global unicorn enterprise landscape. The deep integration of the digital and real economies, the construction of an innovation ecosystem, and the deepening of capital market reforms will all help more startups with disruptive innovation capabilities to quickly grow into unicorn enterprises. 

Moreover, what is becoming increasingly evident to the world is the value of China as a fertile ground for the growth of innovative technology enterprises. From the national level to local governments, a multi-tiered and comprehensive support system enables these enterprises to face market competition and unknown territories with greater confidence, allowing them to continuously catch up with and even lead the forefront of the world.

China's development approach, which focuses on handling its own affairs well, fundamentally ensures that the country's technological innovation remains a process of continuous self-breakthrough. Take unicorn enterprises as an example: The meeting of the Political Bureau of the CPC Central Committee last July called for strong and effective support for gazelle companies and unicorn firms and this year's two sessions reaffirmed this commitment, from which people see the momentum for development in China that demands urgent actions to seize every opportunity. While trade wars, regional conflicts, and climate disasters continue to challenge the international community, China has remained steadfast in its direction and is forging ahead on its chosen path.

China, with its massive market of over 1.4 billion people, has seen its tech companies innovate through competition, transforming people's lifestyles and, to some extent, redefining the era. Today, China's mobile payment, e-commerce, and sharing economy models have been widely studied in regions such as Southeast Asia, Africa, and Latin America. Breakthroughs in fields like 5G, AI, and biomedicine are also providing new options for optimizing global supply chains and improving healthcare. When China's convenient, efficient, and low-cost lifestyle leaves a deep impression on foreign vloggers visiting the country, and when DeepSeek amazes the world with the new opportunities brought by AI, people believe that this is far from the endpoint of "Made in China" reshaping global imagination.

There is a viewpoint that 2025 could be the year when Chinese tech firms stun the world. In fact, this serves as yet another higher starting point for the idea that "investing in China is investing in the future." Data shows that in the past five years, the return rate of foreign direct investment in China is around 9 percent, which is at relatively high level in the world. Additionally, China is actively addressing the issues faced by foreign enterprises operating within the country and is willing to share vast development opportunities. Looking back, there is a solid foundation for cooperation; looking forward, there are positive expectations for development. Oliver Zipse, chairman of the board of management of BMW Group, stated that as long as the spirit of cooperation is upheld, new growth potential will be unleashed, which reflects the common sentiment of both Chinese and foreign enterprises in the face of opportunities.

The way a country views technological development and competition often reveals its aspirations and character. From substantial investments of international capital to widespread enthusiasm for the global sharing of technological achievements, it is clear that open cooperation is a common desire among the people and a prevailing trend of the times. China will continue to demonstrate through action that technological innovation will further flourish in this vibrant land, as it not only has a vast market, strong policy support, and a dynamic talent ecosystem, but also a steadfast commitment to pursuing development in collaboration with the world.

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By Global Times | 2025/3/19 10:33:59

Chip ambitions hinge on talent development

 

M’sia must overcome shortage of engineers, Ic designers

”There are an estimated 10,000 to 15,000 IC designers in the country, but the bulk of them work in multinational companies like Intel and Infineon. It is a challenge to coax these experienced personnel out of their comfort zones and venture into a startup. Hence, talent is concentrated in multinational corporations.”

PETALING JAYA: The country’s potential to be a key hub for advanced semiconductor manufacturing, packaging and fabrication hinges on talent.

Kenanga Research said in a report that talent remained an important concern, after taking into account the country’s strengths, including a well-developed infrastructure, pro-business policies and neutral stance in geopolitics.

The research house said during a meeting with the Malaysia Semiconductor Industry Association (MSIA), the question of how players can move up the value chain and how the government can pivot away from the typical tax incentive mindset to one of attracting and retaining talent was raised.

“Among the environmental, social and governance or ESG components, talent development is a constant concern for the semiconductor industry.

“Key findings from the Semiconductor Quarterly Pulse Survey (fourth quarter of 2024 or 4Q24) showed that talent – specifically a shortage of engineers and integrated circuit (IC) designers, and market competition remained the top challenges for the industry,” it said.

Additionally, data showed that 72% of companies were hiring engineers and technicians in 1Q25, a trend that has continued from previous quarters, indicating a continuous need for talent.

Data also showed that in 2022, the average monthly salary for employees within the electrical and electronics (E&E) industry was RM6,450.

However, only 0.3% of the E&E workforce held an advanced degree, indicating potential for further growth.

According to the research house, there are an estimated 10,000 to 15,000 IC designers in the country, but the bulk of them work in multinational companies like Intel and Infineon.

“It is a challenge to coax these experienced personnel out of their comfort zones and venture into a startup. Hence, talent is mostly concentrated in the already well-established multinational corporations,” Kenanga Research noted.

MSIA then said some steps must be taken to mitigate this.

These include setting up a university focused on Science, Technology, Engineering and Mathematics (STEM), facilitating the hiring of foreign STEM students studying in Malaysia, providing the right incentives to attract foreign talent and encouraging semiconductor players to intensify training.

“The government has earmarked about 10% of the RM25bil allocation to train and upskill 60,000 engineers by 2030 to support advanced manufacturing, research and development, and technological advancements in the semiconductor industry,” it noted.

Meanwhile, Kenanga Research said there were potential opportunities that could emerge in the industry for Malaysia.

There has been growing interest in expanding to Malaysia, especially from Chinese semiconductor firms which are looking to leverage on local infrastructure to facilitate global exports.

“Malaysia remains focused on driving economic growth by fostering a pro-business environment that attracts foreign investments.

“Moreover, Malaysia is actively pursuing high-value foreign direct investment while encouraging collaboration between the local private sector and the government to strengthen and develop a robust semiconductor ecosystem, particularly in advanced packaging,” it added.

To successfully do this, the country will focus on several key factors, including strengthening government incentives for IC design, improving supply chain resilience to support high-end semiconductor manufacturing, and attracting semiconductor fabrication investments.

To add to this, the country had committed US$250mil over 10 years in a strategic partnership with Arm Holdings plc recently to access chip design blueprints and training, aiming to transition from chip assembly and testing (back-end) to high-value semiconductor design and production.

With that, Kenanga Research reiterated the need for greater investments into the semiconductor supply chain to strengthen resilience and attract suppliers from key markets.

“While Malaysia has a strong semiconductor foundation, it must accelerate technological adoption, talent development and infrastructure investments to maintain its competitive edge in the rapidly evolving global market,” the research house said.

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Tech war: Pelosi meets TSMC chief in Taiwan as US ramps up chip pressure on China

Trump seeks to toughen Biden’s chip controls over China failed as China make AI cheap, ubiquitous, not controlled by any one country or company and is available for everybody

 

Trump seeks to toughen Biden’s chip controls over China, and ask key allies match China curbs the US has placed on American chip-gear companies. How will Japan and Netherland response to that? Can China's chip industry overtake the US?

Your scenario is already ex-post. Biden wanted to starve China of technology. He had bullied Japan and Netherlands into submission. They dared not sell to China whatever machines and components that Biden forbade.

Biden’s problem was he did not know what China was cooking and what it has in the pipeline. China has a huge talent pool. It is an innovation powerhouse. Its developments were fast and numerous. Instead of being the hunter, he ended up playing catchup to China’s developments, to its frequent announcements of products and innovations. I suppose this is what his Commerce Secretary Raimondo meant when on the last days of her office, she called the whole exercise a Fool’s Errand.

But Biden was determined that US shall be the AI leader. Nvidia is the US bellwether of AI. He barred it from selling high-end AI chips to China. Trump was sold to the idea that AI dominance requires rising computing power, and large investments of money for large returns. So, with great fanfare, the bosses of Softbank, OpenAI, and Oracle, announced the establishment of a $500 billion AI fund that will ensure US leadership is unassailable.

But, lo and behold, along come DeepSeek. It spent only $5.6 million to teach its R1 model, a tiny fraction of the cost incurred by OpenAI’s o1. It achieves this through algorithm efficiency and innovation than relying on high-end chips. It made it open-source and even has mini “distilled” versions to allow researchers with limited computing power to use the model. It up-ended completely the thesis of ever rising computing power, big investments, and big returns. US attempt to dominate AI is curbed, in all likelihood, permanently.

Can China’s chip industry overtake the US?

This is not the point.

China’s purpose is democratic. Take DeepSeek’s open-source. It could make AI cheap, ubiquitous, not controlled by any one country or company, and is available for everybody.

This is not to say powerful AI chips are unimportant. Only that it is not the whole story.

China is one generation behind the US. Huawei Ascend 910C equals Nvidia’s last generation H100. Its 920 due in a year matches Blackwell, the latest Nvidia’s chip.

China is also catching up with production. Two the new SMIC fabs that will onstream this year and next each has capacity of 50,000 wafer per month, more than enough to meet its needs. Huawei plans to produce 100,000 910C and 300,000 910B chips this year.

Digitimes Asia reported that the yield in the manufacture of 910C has doubled from 20% to 40%, and is profitable. The aim is to increase it to 60% this year to match the industry norms. The yield for the older 910B is 50%.

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Boao forum conveys powerful roar of Asian engine

 

Boao forum conveys powerful roar of Asian engine

 

Ban Ki-moon, Boao Forum for Asia Chairman of the Board, addresses a plenary session at the BFA on March 27, 2025. Photo: IC

The Boao Forum for Asia (BFA) Annual Conference 2025 opened on Thursday in Boao, South China's Hainan Province.

Chinese Vice Premier Ding Xuexiang, also a member of the Standing Committee of the Political Bureau of the Communist Party of China Central Committee, attended the opening ceremony, calling for strengthening mutual trust, enhancing win-win cooperation, promoting economic globalization and safeguarding the free trade system. 

Ding's remarks resonated with officials, business executives as well as scholars participating in the forum. They called for collaboration, highlighting China's role as a stabilizer and promoter of the global multilateral framework and free trade at a time when the world is facing increasing global challenges such as climate change and a complex international situation.

However, as voices for cooperation spoke loudly during the ongoing BFA, the US on Wednesday announced plans to impose 25-percent auto tariffs, with the measures set to take effect on April 2. Participants at the forum slammed the US' irresponsible move, saying that unilateralism has no future.

China presents opportunity

On the Chinese economy, Ding said economic performance in the country has been running steadily with a stronger outlook. The country will do its best to fulfill this year's goals and tasks for economic and social development, he said. "China is confident of realizing these goals and will contribute to development in Asia and the world."

Noting that China has set an economic growth target of around 5 percent for 2025, Michele Geraci, former Undersecretary of State at the Italian Ministry of Economic Development, told the Global Times that "I think 5 percent is a very, very good number...we do know that China is now evolving into a high-tech, innovative model, and this is also reassuring."

"This year, technology and innovation will become the main driver for China's economy," Geraci said, taking DeepSeek as an example, "It's open source, it's cheap, it's fast. DeepSeek is more efficient in the use of resources... and when we have a tech revolution that makes the hardware cheaper, that means that the whole world now can start developing applications on top of this hardware that is not as expensive as we thought it would be."

Wang Huiyao, founder and president of the Center for China and Globalization, a leading Chinese nongovernmental think tank, said that China is once again sending a signal to the world of its continuous opening-up, and the country will put the goals set during the annual two sessions into practice this year. "This has given the world a 'reassuring pill,' and China serves as the ballast stone of global development," Wang told the Global Times.

Jenny Shipley, former Prime Minister of New Zealand, told the Global Times on Thursday during the forum that "One of the greatest strengths of the Boao forum is that it brings government leaders and visitors from around the world, and they cherish the moment to be able to hear the update."

"The speech this morning gave real clarity on areas that China is focusing on. And I know that many people will take that back to their own businesses and to their home economies and think about how we can as partners leverage together. So it was an excellent speech, refreshing in this moment where people are very distracted. And I think we'll create some positive momentum after this conference," she noted.

Unilateralism vs multilateralism

While the BFA was advocating multilateral cooperation and free trade, the US announced on Wednesday its decision to impose 25 percent tariffs on imports of automobiles and certain automobile parts under the name of a so-called national security threat, a move that CNN described as "a significant escalation in a global trade war."

The new levies on cars and light trucks will take effect on April 3, the day after US plans to announce reciprocal tariffs aimed at the countries responsible for the bulk of the US trade deficit, Reuters reported. They come on top of duties already introduced on steel and aluminum, and on goods from China.

Speaking at a session of the BFA themed "US Foreign Policy and Its Implications on Asia-Pacific Cooperation" on Thursday, panelists from home and abroad outlined their respective concerns over the US government's tariff policy, saying that the move will not serve its purpose but backfire on the US.

"Do not try hard to understand the new US administration's trade policy. It is based on many falsehoods and many basic misunderstandings. It is primitive," US economist Jeffrey Sachs said at Thursday's session.

"If you do the basic arithmetic, the tariffs don't come anywhere close to offsetting the tax cuts for the richest people in America... they (tariffs) hit the poor Americans," Sachs said.

The American economist also noted that the tariffs will not protect the corresponding US industry but will have the opposite effect. "When the auto duties were announced, what happened to the auto share prices? They went down 5 percent... this will harm the US auto industry, making it permanently uncompetitive," Sachs said.

Responding to the tariff policy of the new US administration, Cui Tiankai, a former Chinese Ambassador to the US, said at the session that "more tariffs is an indication of less competitiveness... afraid of competition. It's a lack of confidence."

The latest tariff moves, particularly the increased tariffs on the automotive sector, are part of a broader pattern of escalating measures by the new US administration, Wang Huiyao said.

Wang believes the 25 percent tariff hike on automobiles will have little impact on China, "as we do not export many cars to the US." In contrast, this move will have a significant effect on other countries, such as those in Europe and Japan, Wang said.

In stark contrast with the US move, China has a clear perspective on tariffs, which is exemplified by offering zero-tariff treatment on 100 percent of tariff lines to the 43 least developed countries with which it has diplomatic relations in a bid to support their development and foster mutual benefits.

While the US raises tariffs, we are lowering them, creating a dynamic contrast, Wang said. 

Zheng Yongnian, dean of the School of Public Policy at the Chinese University of Hong Kong, Shenzhen, said during the BFA that we should not underestimate the ability of China's opening-up policy to reshape the global trading system. China has now entered a high level of openness, and its unilateral opening-up is the best international public platform.

"History has proven time and again that only with opening-up and cooperation can a better prospect be embraced. China will continue to join hands with all parties to create an open, fair, just and non-discriminatory environment for sci-tech development, bringing benefits to more countries and peoples," Guo Jiakun, spokesperson from China's Foreign Ministry, said on Thursday.

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Police patrol many homes in safe hands

 

Keeping a watchful eye: Lans Kpl Mohammad Azwan Azman (left) and Konstabel Muhammad Al Mubarak Zulkifli, from the Taman Tun Dr Ismail police station in Kuala Lumpur, checking and patrolling homes as residents return to their hometowns for Hari Raya. — File pic

PETALING JAYA: More than 3,000 crime hotspots will be watched by police during patrols for the upcoming Hari Raya celebrations, says Bukit Aman.

The balik kampung holiday exodus, which begins this weekend, will also see the deployment of more than 6,000 personnel from the Crime Prevention and Community Safety Depart­ment (JPJKK) throughout the dura­tion of Op Selamat, from March 29 to April 3.

Speaking to The Star, Bukit Aman JPJKK director Comm Datuk Wan Hassan Wan Ahmad said 3,148 crime prevention hotspots had been identified across the country.

“These hotspots are identified based on reports received by the police regarding crimes involving property and violence and have been studied by the JPJKK chiefs at the state and district levels,” he said.

Selangor tops the number of hotspots with 764, followed by Kuala Lumpur with 446.

Comm Wan Hassan said JPJKK would focus on efforts to reduce property crime rates such as burglary cases throughout the period of Op Selamat.

“To achieve this objective, the elements within JPJKK that will be fully mobilised are the Mobile Patrol Vehicle (MPV) and Motor­cycle Patrol Unit (URB) elements.

“This will involve more frequent patrols in residential areas and high-risk locations,” he said.

A total of 2,670 patrol cars and 1,800 URB motorcycles along with 6,543 personnel from MPV and URB will be deployed for patrol duties through this festive season.

(Click To Enlarge)

“Patrols will be conducted 24 hours in shifts, covering 1,129 patrol areas,” he said, adding that leave had been frozen and would only be granted for emergency cases.

Police statistics show that there was a slight increase in burglary cases during the Raya period last year compared to previous years.

There was a total of 190 burglary and theft cases in 2024 compared to 166 in 2023 and 172 in 2022.

Comm Wan Hassan said crime prevention patrols during the festive season and Op Selamat will also focus on homes that have been left vacant by residents returning to their hometowns, where residents have made movement reports at nearby police stations or through online reports using the Volunteer Smart­­phone app.

“Based on the information received, frontline personnel will carry out more frequent patrols at these places,” he said.

“Checks show that most of these burglary cases involve homes or premises whose occupants had not reported their return to their hometown to the police.”

Additional patrols will also be conducted by other elements within the police force, including patrols at the police station levels.

Comm Wan Hassan advised those who are not returning to their hometowns to report suspicious activities to the police.

Meanwhile, Deputy Inspector-General of Police Datuk Seri Ayob Khan Mydin Pitchay said Bukit Aman had identified 432 congestion hotspots and 122 accident blackspots nationwide.

For highways and expressways, police found hotspots and 46 black­spots, while federal, state and city roads contained 407 hotspots and 76 blackspots.

“Traffic Investigation and Enforce­ment Department (JSPT) personnel will be on hand to monitor the situation continuously and provide assistance in case of emergencies or vehicle breakdowns.

“The presence of JSPT personnel is aimed at facilitating traffic if a major congestion occurs.

“Stern action will also be taken against any traffic offenders.”

“Close to 7,000 JSPT personnel will be on duty for this year’s Ops Selamat.

“We advise the public to abide by traffic regulations and drive or ride safely.

“Road users must also ensure their vehicles are at optimum level and get enough sleep and rest before beginning their journeys,” he said.

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Make sure your vehicles have a 'selamat' Hari Raya too

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