FT Chinese Column

[Financial Times Chinese column] Submarine cables carry approximately 99% of the global intercontinental data flow, making them crucial for the development of digital economy. The Chinese government has emphasized the need to accelerate digital infrastructure development in its "14th Five-Year Plan," promoting the "Digital Silk Road."

Does a "free lunch" really exist? Some online shopping platforms let consumers disclose if they received products for free or at a discount when writing reviews. Although these reviews for free products are not the majority, they can energize online communities where reviews are limited. The lack of objectivity in free product reviews can trigger self-regulation within online communities, prompting more users to provide fair feedback. Voluntary disclosure policies can effectively boost the number of reviews at a lower cost than hiring experts to write positive reviews.

Are environmental and social (ES) funds really voting in support of their claims? Each year, asset managers vote on various proposals from the companies in their investment portfolio on behalf of fund investors, who expect strong support for ES initiatives from these companies. However, in a recent research conducted by the author, Prof. Roni Michaely, along with Prof. Guillem Calafi-Ordonez, and Prof. Silvina Rubio, a surprising pattern has been identified. These ES funds often support proposals that are expected to pass or fail easily. However, when it comes to close votes—where their decision really matters—they tend to vote against these proposals.

Since ChatGPT was introduced, large language models (LLMs) have quickly become a focus in the global tech competition. LLMs are being applied in various fields, presenting ample opportunities for AI development. The U.S. currently leads in technology development and innovation, with its models excelling at the technological forefront. In contrast, Chinese models focus on optimizing for local languages and practical applications. Striking a balance of competition and cooperation between the two countries will be crucial in the coming years.

The authors have found that pressuring businesses to implement a completely fair pricing system may actually backfire and lead to tacit collusion where consumers will ultimately suffer.

In this data-driven age, companies across the economy are actively seeking ways to collect and use consumer data. For example, the car-hailing app Uber has been accused of monitoring their users’ mobile phone battery and then charging them more if their battery is low (see Note 1). The travel website Orbitz has also faced questions on whether they display more costly hotels to Apple Mac users (see Note 2). If data is misused, this will only fuel consumer concerns about how their information is collected and force lawmakers to seek more prudent ways to monitor the data collection practices of companies.