In the news: Chinese listed companies go tech, drone company DJI wins VC funding and a national security law is drafted

Chinese companies go tech to woo investors

Chinese companies are watching their share prices rocket as they reinvent themselves as tech firms. Almost 100 China-listed corporates changed their official names last year in a move that has been likened to the US dotcom boom in the 1990s. Lossmaking coalminer Shanghai Ace Co bought an online gaming company in February and renamed itself Shanghai U9 Game Co – and its stocks soared by 140% even though its assets still lie mainly in mining. Another, Panda Fireworks, changed its name to Panda Financial Holding in April as it announced it would launch a P2P lending platform. Beijing Xiangeqing Group became Cloud Live Technology Group after moving away from luxury restaurants and into cloud computing. These corporate shifts away from core businesses and industries like manufacturing signal a broader economic trend. Environmental regulations hurt the businesses of Shanghai Ace and Panda Fireworks (though the latter was hit by low demand as well), while luxury dining and hospitality have suffered amid a tough anti-corruption campaign. Simultaneously, recent polices have shown the government is pushing for internet and tech innovation, which stem from the realisation of how much e-commerce contributes to the world's second-largest economy.

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Drone maker DJI Technology wins Silicon Valley backing

The Shenzhen-based drone maker SZ DJI Technology has secured one of its largest investments yet from venture capital firm Accel Partners, which also backed internet pioneers like Facebook, Etsy and Dropbox. It received US$75 million to fund its expansion and develop more sophisticated drones as it is currently seen by Western rivals as a low-end producer. In an interview with Managing IP, DJI's IP manager Adair Zhou said the company's strategy is focused more on global markets than China, compared with that of many other Chinese companies that expand outwards. The newness of the consumer drone market and the complex technology means the company needs to stay on top of its IP portfolio management – a challenge as DJI kicks off on international ground. Filing and protecting its patents from potential infringers will allow it to grow, unhampered by litigation.

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China's national security law poses cyber concerns

The second draft of China's national security law released on May 7 emphasises the need to strengthen internet security. It calls for beefing up the country's financial systems and banking infrastructure to withstand international risks and shocks. It also seeks to protect core industries and economies, such as by guaranteeing grain security and avoiding food safety scandals. Aimed at reducing the country's reliance on foreign technology for any aspects related to China's internet infrastructure, the law has replaced but significantly expanded upon the previous counterespionage law. It could be passed next year. This law acts as a national cyber safety net and follows the recent draft anti-terrorism law, which put foreign tech companies in China in a difficult position by being required to hand over secret codes, and a draft law on NGOs that tightened registration requirements and could make it challenging for foreign NGOs to operate in the country. It is open to public consultation until June 5.

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