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JD.com Struggles to Gain Ground in China’s Instant-Delivery Market

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Chinese e-commerce giant JD.com (9618.HK) is ramping up efforts to expand its instant-delivery business through JD Takeaway, launched in February, aiming to diversify revenue beyond its core retail operations. Despite significant investments and improvements in user engagement—quarterly active customer growth and shopping frequency rose over 40%—the company faces a steep challenge breaking into a market dominated by established players.

Daily active users of JD’s delivery service have declined steadily since mid-June, falling more than 13% week-on-week by July 27, according to M Science data, signaling potential market share loss. Analyst Vinci Zhang noted that Meituan (3690.HK) and Alibaba’s (9988.HK) Ele.me service possess strong expertise in food delivery, making JD’s expansion particularly difficult.

JD’s investments in food delivery have also compressed profitability, with the adjusted operating margin dropping to 0.3% in the June quarter from 4% a year ago. By comparison, Meituan recently recorded an all-time high of 120 million daily orders across food and retail, controlling nearly 70% of the delivery market, while Alibaba’s Taobao instant commerce combined with Ele.me hit 80 million daily orders, with 200 million daily active users early in July.

The market is seeing fierce competition, with the three companies collectively pledging nearly 200 billion yuan ($27.87 billion) in subsidies, fueling a price war in instant retail that has drawn regulatory attention. JD.com CEO Sandy Xu emphasized the company’s focus on platform improvements to attract more users, merchants, and delivery riders, even as competitors prepare to report their quarterly results.

China Slams U.S. as “Surveillance Empire” Over Chip Shipment Trackers

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China’s state-run media Xinhua criticized the United States on Friday for secretly placing location trackers in shipments of advanced chips at risk of diversion to China, calling the practice indicative of the “instincts of a surveillance empire.” Reuters had reported earlier that U.S. authorities embedded these devices to monitor shipments subject to export restrictions aimed at curbing China’s access to advanced semiconductor technology.

In a commentary titled “America turns chip trade into a surveillance game,” Xinhua accused Washington of running “the world’s most sprawling intelligence apparatus” and treating trade partners as rivals to be undermined. The piece warned that if U.S. chips are perceived as potential surveillance tools, global customers may seek alternatives.

The commentary reflects ongoing tensions between the two tech superpowers. The U.S. government has imposed strict limits on exports of advanced chips and related equipment to China, while Washington and its allies have previously accused China of embedding potential surveillance capabilities in exported products, ranging from telecom gear to vehicles.

In recent moves, China has asked U.S. chipmaker Nvidia to clarify whether its H20 chips contain hidden backdoors and has cautioned domestic tech companies about their use, amid heightened scrutiny of foreign technology for security risks.

Ant Group Says Bright Smart Acquisition on Track Despite Delay Reports

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China’s Ant Group has confirmed that procedures for its acquisition of Bright Smart Securities & Commodities Group (1428.HK) are proceeding as planned, following reports suggesting the deal could face delays due to increased regulatory scrutiny.

Shares of Bright Smart fell as much as 26.2% to HK$10.26 on Friday after the Wall Street Journal reported that mainland Chinese regulators might review the transaction more closely. In a filing, Bright Smart said it had observed media reports of a potential delay but reaffirmed that discussions with the relevant authorities are moving forward.

Under the agreement, Ant will acquire a 50.55% controlling stake in Bright Smart Securities for HK$2.81 billion ($359.37 million), according to a filing in April. Ant, founded by billionaire Jack Ma and 33% owned by Alibaba, operates China’s widely used mobile payments platform Alipay.

The deal comes after Chinese regulators blocked Ant’s $37 billion IPO in 2020 and imposed a nearly $1 billion fine following a speech by Ma criticizing financial oversight. Ant is currently working to obtain a financial holding company licence, a step that could support its long-term IPO ambitions.