In the earlier days of the Internet, tech companies relied on free content to attract users. As the volume of digital content surged, however, quality did not necessarily keep up. It was a struggle to weed through low-quality content, and the time-poor, money-rich in China were willing to pay someone else to do the curating. This was when Ximalaya invited users to become hosts themselves and began to leverage their reputation to charge a fee for their content. With high accessibility, a growing awareness of intellectual property among Chinese netizens, and the convenience of mobile payments Ximalaya got the Chinese to pay for digital content. Ximalaya now has over 5 million hosts who curate and advertise their content, driving sales for the company as a result.
Despite recent metrics around the globe showing severe production declines as a result of coronavirus, Chinese GDP growth continues to be one of the fastest among developed and developing nations. That’s not a new story. While the rest of the world experienced recessions and layoffs, China blew through the 2008-2012 years, reaching an all-time productivity growth peak of 11 percent in 2011. By all official accounts, China is on track to surpass aggregate U.S. output and take the mantle of economic hegemony within the next several decades.