Table.Briefing: China

Beijing and the Ukraine crisis + Taiwan’s chipmakers

  • Is Xi learning from Putin’s Ukraine policy?
  • The dilemma of Taiwan’s chip industry
  • IOC chief Thomas Bach under fire
  • WTO: China allowed to impose punitive tariffs against Washington
  • US plans stricter foreign investment law
  • Chinese mRNA vaccine passes first clinical phase
  • Xi urges careful energy transition
  • Profile: Claudia Barkowsky – Chief Representative of VDMA in Beijing
Dear reader,

Luxembourg’s Foreign Minister Jean Asselborn pointed out earlier this week that wars should not be waged during the Olympic Games. He referred to a United Nations resolution. “I believe that gives everyone time to think about war and peace and then make the right decision,” Asselborn said. A notion that also suits Xi Jinping at the moment. Nothing would be more inconvenient for him than a war in Eastern Europe overshadowing his Games. But will Vladimir Putin play along?

But Beijing is keeping a close eye on the Kremlin’s Ukraine tactics for a very different reason. The similarities between Ukraine’s symbolic importance to Russia and what China considers the breakaway province of Taiwan are obvious. Looking at Ukraine, Beijing is trying to figure out what reactions can be expected from US President Joe Biden and the West in the event of a Chinese invasion of Taiwan, analyzes Christiane Kuehl.

Taiwan’s extremely successful chip industry is also in a bind. The high global demand is currently raking in record profits. At the same time, it could be crushed in the dispute between China and the USA, writes Frank Sieren in his analysis. Without Western know-how, even the best Taiwanese chip companies cannot remain competitive. And neither can they without the Chinese market.

I hope you enjoy today’s issue!

Your
Felix Lee
Image of Felix  Lee

Feature

The Ukraine conflict also makes Beijing nervous

Did Xi or did he not? Earlier this week, Bloomberg reported that the Chinese leader had asked his Russian counterpart Vladimir Putin at least not to invade Ukraine during the Winter Olympics. China’s foreign office spokesman Zhao Lijian immediately rejected the report on Monday as an attempt to divide Beijing and Moscow. An invasion that casts a shadow over the Winter Games “would not go down well in Beijing,” said Helena Legarda, a security expert at the China think tank Merics in Berlin. “But I can imagine that Putin would definitely consider it.” An invasion of Ukraine during the Games “could change relations with Russia completely.”

But China is likely concerned about more than just the spotlight from the Games. Because the obvious question is how Beijing would position itself in the event of a possible invasion. The more Russia allows the situation to escalate, the more difficult it will be for China to stay out of the Ukraine crisis. When Russia annexed Crimea in 2014, Beijing maintained its ironclad principle of “non-interference” in the affairs of other states.

So far, official Beijing has remained silent. Joe Webster noted in his blog on Russian-Chinese relations, that China’s military and diplomatic structures, as well as the state media, remain awfully quiet and without any opinion. The expert believes two reasons to be at play: “First, Beijing is uneasily balancing its security and economic interests. Second, […] ambiguity can be a useful tool.” It’s a tool Putin also likes to apply – especially when currently dealing with the West.

China: Difficult decision

In fact, Beijing faces the difficult choice of either snubbing its partner Russia or potentially intensifying the conflict with the West. Both also entail economic risks for the People’s Republic. It is therefore likely that China will maintain a semi-neutral position for as long as possible – and, as usual, call for peace and dialogue. Direct support for Ukraine and NATO makes no sense for China, Legarda tells China.Table. “At the same time, Beijing will most likely not fully side with Russia either, because that also would not serve China’s interests.”

But an invasion would change the situation. “If Russia, hypothetically, invades Ukraine and a Western power gets involved militarily, it would be hard for China to stay out of it completely,” Legarda is convinced. While no one believes that soldiers of the People’s Liberation Army could be deployed to Europe, “China could offer Moscow more diplomatic support.”

Russia and China: How close are relations?

But how far will this go? Webster regards the two states’ mutual aversion to a US-dominated world order as a uniting factor. “Both Moscow and Beijing continue to regard constitutional democracies as an obstacle to their geopolitical ambitions and, more importantly, a threat to their domestic political regimes,” he writes. Putin is increasingly willing to break rules and directly challenge the free world. “Beijing has operated more cautiously, but it has frequently – if only tacitly and quietly – supported Putin’s actions.”

Legarda also identifies mutual interests and concerns between the two partners. “But it’s not absolute. They don’t fully trust each other. For example, China is increasing its footprint in Russia’s former sphere of influence, such as Central Asia and the Arctic.” Russia sees that with suspicion. The balance is also increasingly shifting in China’s favor due to the economic rise of the People’s Republic. That could cause tensions in the future. Legarda does not yet consider the relationship a true alliance. “There are limits to what both would do for each other,” she says.

But there are isolated indications of growing geopolitical cooperation. Moscow has briefed Beijing on its negotiations with the US and NATO countries, Russia’s ambassador to China, Andrei Denisov, said on Tuesday. He also announced a possible “surprise gift” for bilateral relations during Putin’s visit. What that might be, he did not reveal. On Wednesday, diplomats from both countries decided to strengthen coordination of their Asia policy.

China and Russia: growing economic relations

Economic relations have also increased. Shortly after Russia invaded Crimea, Beijing and Moscow signed off on the construction of the Power of Siberia gas pipeline in May 2014, which has since pumped natural gas to China. That pipeline has accelerated Russia’s “economic swing to China,” Webster writes. Between 2014 and 2020, Russian exports rose from about $42 billion to $57 billion – in part because of the expansion of oil pipelines along Russia’s Pacific coast.

China needs these Russian raw materials to fuel its economic growth. But as an export market, Russia is less important to the People’s Republic: “China exported almost as much to Mexico as to Russia in 2020. And China’s exports to Russia in 2020 represented only 0.3% of its 2020 GDP.” Conversely, it was four percent, according to Webster.

China’s decisive role for future sanctions

But the growing ties between the two states certainly have geopolitical consequences – especially when it comes to future sanctions against Russia. Since 2014, Chinese banks have largely complied with Western sanctions imposed in the wake of Russia’s incursions into Crimea and the Donbas region. That would be more difficult and costly for China today if those sanctions were tightened further, writes Chris Miller, Director of the Foreign Policy Research Institute’s Eurasia Program, in a newly-released study. “The decisions Beijing makes will either undermine sanctions or intensify their impact,” Miller writes. This, in turn, would affect how high Russia calculates the economic costs of a possible escalation.

If China decides to support Russia directly, it could transfer bilateral trade to other payment systems based on the Chinese currency, the renminbi. Beijing could also provide renminbi loans to Russia, which Russia could then use to source goods in China. “Such a move would be costly for China, as some of these loans might not get repaid,” Miller further writes. And it would significantly increase tensions between the US and China. But if successful, such renminbi payment systems could later become attractive to third countries that want to continue trading with Russia.

Such a scenario would be a severe blow to the efficacy of Western sanctions. But it is not out of the question. After all, according to Miller, China’s “alternative would be to tolerate major disruptions to China-Russia trade while watching the US demonstrate sanctions efficacy.” That sounds hardly appealing from Beijing’s perspective.

Putin in Beijing: display of friendship

But that is not yet the case. First, Putin is flying to Beijing to attend the Olympic opening ceremony on February 4 to demonstrate friendship. Russian plans for a joint maneuver in Belarus rule out an attack before the end of the Games on February 20, according to Webster. From February 10-20, the two planned to hold maneuvers “to fine-tune the tasks of suppressing and repelling external aggression during a defensive operation,” according to official announcements. Putin has branded boycotts of the Games as “politicization of sport” in line with Beijing’s position. It is not known if he expects anything in return.

Helena Legarda believes that Ukraine will be a discussion point, even if neither of them explicitly urges it. “I think Putin and Xi will discuss their relations more broadly in the deteriorating geopolitical environment of 2022.” Webster expects they will both announce an agreement at the summit on a second gas pipeline called “Power of Siberia 2” – and perhaps an expansion of political or military cooperation. But would they also coordinate on a joint approach to the Ukraine crisis? Helena Legarda believes this to be unlikely.

China will probably hold its cards close to its vest and decide depending on the situation. But Legarda believes the conflict has a different dimension for the People’s Republic – one that has nothing to do with Russia. “In the event of a Russian invasion, China would observe the reaction of NATO and the West very closely. It will give Beijing information about a possible reaction of the West to a potential Chinese invasion of Taiwan,” the expert says. Of course, the two cases can hardly be compared. But America’s reaction would tell China “whether there’s still an appetite in Washington to get involved in a conflict overseas – and to observe the level of coherence in the West.” Another reason why the West hopes that it won’t come to open aggression.

    • Geopolitics
    • Russia
    • Taiwan
    • Ukraine

    Taiwan’s chip industry depends on China despite everything

    Taiwan’s chip industry has signed an agreement to establish its own semiconductor equipment industry. The initiative by Taiwanese companies is a reaction to Washington’s sanctions on China by former President Donald Trump in May 2020. Accordingly, anyone using US technologies, software, or even equipment in semiconductor production was no longer allowed to supply certain Chinese companies such as Huawei.

    Huawei, until then the world’s leading manufacturer of smartphones and one of the most important customers of Taiwan Semiconductor Manufacturing Company (TSMC), was left effectively paralyzed. The Chinese tech giant was barely able to produce 5G phones, lost market share to the Chinese cell phone manufacturer Xiaomi and had to sell off its smartphone subsidiary Honor.

    USA and China depend on Taiwan’s chip industry

    Taiwan’s chip industry leads the world. According to TrendForce, a Taipei-based research company, Taiwanese chip manufacturers accounted for 63 percent of the global foundry market last year. With a global market share of about 55 percent, TSMC alone is the world’s dominant player, ahead of South Korea’s Samsung. Taiwanese chips are also among the most advanced chips available. Both the US and China rely on supplies of Taiwanese 7-nanometer chips, be it for the production of cell phones or fighter jets.

    The US government no longer wants chips for the US military to be manufactured in Taiwan. It is considered too risky. The US and most other countries do not recognize Taiwan as a sovereign state. However, Washington also provides political and military support for Taiwan against the leadership in Beijing, which in turn considers Taiwan to be a renegade part of the People’s Republic. In its own words, Beijing is counting on “peaceful reunification,” but does not rule out a military invasion under certain circumstances.

    Due to this volatile political situation, TSMC is currently building a plant in the US state of Arizona for around $12 billion. In Japan, construction of a $7 billion plant will soon start for similar reasons, and even a chip factory in Germany is on the table. At the same time, however, TSMC does not want to abandon the large market in China.

    China strive for more independence

    China had to import around $300 billion worth of chips in 2020, with Taiwan being the main source. Semiconductors are fundamental to virtually every one of China’s many technological ambitions. China’s main domestic manufacturer, Semiconductor Manufacturing International Corporation (SMIC), is still some two years behind Taiwanese global leader TSMC in terms of development and production, according to expert estimates, although the gap is narrowing.

    While SMIC is testing a 7-nanometer chip, its Taiwanese competitor has already arrived at the 3-nanometer process. Smaller transistors consume less power and calculate faster. However, they cannot be scaled down indefinitely. Even the Chinese company SMIC still relies heavily on production equipment from US manufacturers such as LAM Research, Applied Materials, and KLA-Tencor.

    According to Roy C. Lee, an economist at Taiwanese think tank CIER, the People’s Republic can currently only cover about 15 to 20 percent of its semiconductor demand through domestic production. The initiative by Taiwanese chipmakers came after China, in turn, poached more than 100 engineers and managers from TSMC to bolster its own chip industry and reduce its dependence on Western countries in the long term.

    Beijing is keenly interested in building its own chip industry in the long term, partly to make Chinese companies independent of overseas suppliers. Beijing’s 14th Five-Year Plan envisages a series of measures to strengthen the semiconductor industry, including tax breaks, tariff exemptions, and investment boosts. China’s progress in the research and development of semiconductors in recent years has been “particularly impressive” by international standards, writes the Berlin-based think tank of the “Stiftung Neue Verantwortung” (SNV) in a study.

    According to the report, China’s leading chip manufacturer SMIC invested almost ¥4.7 billion (about €610 million) in its research and development last year. That represented 17 percent of the group’s revenue, more than the average 13 to 14 percent that is standard in the international semiconductor industry. This is another reason why Taiwan has decided to work more closely with mainland China to avoid losing too much business now that China is becoming more independent.

    Difficult triangular relationship

    There is a lot at stake for all sides: China and the USA want their supplies to be as independent as possible, and Taiwan does not want to be crushed between the two major powers. The worst-case scenario would be a military confrontation that would completely sever the chip supply chain on one side. Indeed, the idea of Beijing taking control of TSMC is tempting. From one moment to the next, Beijing would be in the driver’s seat. However, that would be a huge military risk and costly in global politics.

    China could already dry up Taiwan’s economy at any time without firing a single shot. The democratic island is closely economically intertwined with the communist mainland. Some 8,000 Taiwanese companies are active in China, including Apple contract manufacturer Foxconn, which is the largest private employer in China. Around 45 percent of Taiwanese exports go to the People’s Republic.

    But even with a “peaceful” merger through economic pressure, China would not be on the safe side. Many international experts and researchers, which TSMC depends on, would leave if they were to fall under Chinese control. Foreign companies cooperating with the Taiwanese would withdraw. International sanctions against the Taiwanese semiconductor industry would then also be likely. Without Western know-how, even the best chip companies from Taiwan cannot remain competitive. But neither can they without China.

    • Chips
    • Semiconductor
    • Taiwan
    • Technology

    Athletes turn their backs on IOC head

    IOC President Thomas Bach had actually scheduled a lunch meeting with Chinese tennis player Peng Shuai in Beijing in January. The sports world is deeply concerned about the whereabouts of the world-class athlete after she accused a top Communist Party cadre of sexual assault and has since only appeared in public under mysterious circumstances. So far, however, the meeting has not happened.

    Now the IOC has told China.Table that the appointment still stands and will take place during the Games. Since the first video phone call between Peng and Bach on November 21 last year, “the IOC team has kept in touch with her.” There have been several online meetings during which they “got to know each other better.”

    According to the IOC, Peng expressed that she was very much looking forward to the Olympic Games and intended to follow the competitions and the performance of the Chinese team very closely. She is also looking forward to meeting Thomas Bach, to which the chair of the IOC Athletes’ Commission, Emma Terho, has also been invited. “In arranging the different conversations, the Chinese Olympic Committee has always been very supportive and will also ensure that the meeting can take place under very strict COVID-19 measures (…).”

    Bach praises Beijing’s efficiency, determination, and vigor

    The president of the International Olympic Committee has been in Beijing, the host city of the Winter Olympics that begin February 4, since last Saturday. State and party leader Xi Jinping has already met Bach for a face-to-face meeting. The IOC chief took the opportunity to express his admiration for the sports venues and the “efficiency, determination, and vigor” of the organizers. Whether it was also about Peng Shuai – nothing about this leaked to the public. According to the IOC, Bach and Xi spoke about the “strong support of the international community for the Olympic Winter Games Beijing 2022.”

    This assessment is astonishing. After all, it is already clear that numerous nations such as the United States, Australia, Japan, the UK, Denmark, and Canada will boycott the Games diplomatically because of China’s massive human rights violations. The German government is avoiding an official boycott, yet no German government representative has announced a trip to the People’s Republic. In addition, athletes and officials are increasingly criticizing China’s zero-covid strategy and even suspecting a possible manipulation of the Games.

    Most recently, German five-time World Cup medalist Felix Neureuther expressed these suspicions in an interview with RTL/ntv. “It’s easy to manipulate these Games. And that’s where I think you have to take a very close look. Otherwise, the Games become an absolute farce,” said the former ski racer.

    Top luger demands respect for human rights

    Neureuther believes that the host country could cheat its way to sports victories. He is certain that China would try to be successful in sports “by any means necessary.” “And what easier way is there to eliminate competition than with a positive Covid test? No one checks how the tests are controlled,” Neureuther told the TV station. German Alpine Head Coach Wolfgang Meier and the President of the German Snowboard Association, Michael Hoelz, also do not rule out potential manipulations of Covid test results.

    The distrust against the Chinese organizers is the result of the authoritarian state leadership and the sheer endless list of human rights violations in China, which makes many Olympic participants sick to their stomachs. Three-time Olympic luge champion Felix Loch told ARD television before leaving for Beijing that the Games should never have been awarded to Beijing in the first place. “Nothing has changed” about the issues of human rights and freedom of the media.

      • Freedom of the press
      • IOC
      • Peng Shuai
      • Sports

      News

      WTO permits punitive tariffs against USA

      China has scored another victory against the USA at the World Trade Organization (WTO). The WTO authorized the People’s Republic to impose countervailing duties worth $645 million against certain US imports in a case that has been pending for a good decade. The background to the case is a complaint filed by China at the WTO against punitive tariffs imposed by the United States on 22 Chinese products between 2008 and 2012, alleging government subsidies and dumping prices. The products affected ranged from solar modules to steel wire.

      The core of the decades-old dispute revolves around the dispute whether the US may consider companies in which the Chinese state has a stake as state-owned enterprises. China originally asked the WTO panel to grant the right to impose tariffs on $2.4 billion worth of US goods.

      The WTO’s ruling was now lower – but it represents another symbolic victory for Beijing at the Geneva-based trade organization. In November 2019, the WTO awarded China the right to impose $3.58 billion in retaliatory tariffs after it objected to how the US government justified accusations that dumped Chinese products were offered in the US. Former US President Donald Trump had imposed punitive tariffs on more than $300 billion worth of Chinese goods, most of which are still in effect. rtr/ari

      • Trade
      • USA
      • WTO

      Planned US law threatens China investments

      US analysts have warned of severe repercussions for US-China economic relations if Washington enacts a planned sweeping legislative proposal for industry-specific restrictions regarding American investments in China. The so-called National Critical Capabilities Defense Act (NCCDA) could negatively impact US-China investment relations and the competitiveness of US companies in the People’s Republic, the analyst group of the National Committee on United States-China Relations and the Rhodium Group wrote in a report released on Wednesday. Future investments by US companies in China could decline sharply, the report stresses. Existing business activities were also at risk of facing greater pressure as a result

      The background to the NCCDA is a push by the US Congress to more effectively screen foreign investments for national security risks. Increasing geopolitical tensions and the Covid pandemic have raised concerns in Washington about the transfer of potentially sensitive technologies, the outsourcing of key production facilities, and the loss of transparency in supply chains, the report says.

      The extensive legislation currently covers several sectors, including medical care, protective equipment, military equipment, and everything that relates to infrastructure essential to national security. These, in turn, include industries ranging from agriculture to nuclear technology. Other industries, such as semiconductor manufacturing, are also to be included. That, however, is still under review. Under the proposed legislation, any transaction by a US company to a country listed as a foreign adversary in affected sectors could be reviewed and blocked. According to the report, no individual countries are listed, but China is on the US State Department’s foreign adversary list, along with other countries such as Iran, Venezuela, and North Korea.

      The final wording of the bill and details on implementation are still pending. However, under the current draft, up to 43 percent of all US direct investment into China over the past two decades already falls under the categories already established in the NCCDA, the analysts explain.

      Should such a law be enacted, the United States would be one of a handful of countries with industry-specific restrictions on foreign investment that differ from traditional sanctions regimes, the report emphasizes. The authors advise against a blanket sweep: “If not designed in a targeted, predictable manner, this change could negatively impact not only the global competitiveness of US companies in affected industries but also the attractiveness of the United States as an investment location for firms that operate globally” ari

      • Investments
      • USA

      mRNA vaccine passes phase 1 clinical trials

      One of China’s mRNA vaccines against Covid is expected to achieve 95 percent efficacy in tests. This was shown by data from the first phase of clinical trials, reports business portal Caixin. The vaccine was jointly developed by Walvax Biotechnology and Suzhou Abogen Biosciences, as well as the Academy of Military Sciences of the Chinese People’s Liberation Army, according to Caixin. It bears the designation Arcov.

      However, the results are based on a Phase 1 study of the vaccine involving only 118 participants between the ages of 18 and 59. The study found that neutralizing antibodies were present in 80 to 95 percent of participants who received two doses of the vaccine. The difference in efficacy is attributed to different doses. The study noted no serious side effects. The majority of participants exhibited only mild reactions, such as fever and pain at the insertion point.

      Neither of the two available mRNA vaccines has yet been approved in China, although Chinese vaccines prove to be less effective against the Omicron variant (China.Table reported). According to Caixin, the Chinese mRNA vaccine Arcov is already in phase 3 trials abroad, for example in Mexico, Indonesia, and Nepal. However, data from the phase 2 and 3 trials have not yet been published. A production facility for the vaccine is already being built in Yunnan. Production is scheduled to start in August, with a capacity of 120 million doses per year.

      Meanwhile, the European Chamber of Commerce believes that the limited effectiveness of China’s covid vaccines will force mainland China to uphold strict travel restrictions. The chamber does not expect a Chinese mRNA vaccine until late 2023 or early 2024, and Hong Kong faces a massive exodus of foreign corporations if travel is not reopened soon. Hong Kong’s role as a financial center could be jeopardized as a result, according to the chamber, which declined to comment on the report. nib

        • Corona Vaccines
        • Coronavirus
        • Health

        Xi urges careful energy transition

        China’s ambitious climate goals should not come at the expense of power and food security, or people’s normal daily lives, President Xi Jinping said on Monday in a speech to the Politburo. Reducing greenhouse gas emissions is not aimed at curbing productivity or stopping emissions altogether, news agency Xinhua quoted Xi as saying.

        The People’s Republic faces a major challenge in its energy transition to meet its climate targets without not jeopardizing too many jobs and economic development. Industries such as the coal, steel, cement and construction sectors, which cause the majority of CO2 emissions, employ tens of millions of people (China.Table reported).

        Last fall’s power shortages once again brought home to the leadership the importance of energy security. Xi urged a cautious energy transition. “The gradual withdrawal of traditional energy must be based on the safe and reliable replacement by new energy,” he said at the Politburo meeting. His goal of being appointed president for the third time by the People’s Congress of the Communist Party at the end of the year should not be overlooked. A slump in growth would not make him look good. nib

        • Climate
        • Energy
        • Xi Jinping

        Profile

        Claudia Barkowsky – a Chinese career

        Claudia Barkowsky is Chief Representative of the VDMA in Beijing

        At long last, Claudia Barkowsky can finally travel from China to Germany again. She has not been back to her home state of Brandenburg since the outbreak of the Covid pandemic two years ago. She is now visiting friends and family during the Chinese New Year – and is accepting a three-week quarantine in China to do so. ” Hopefully, you can work properly in the quarantine hotel,” she says.

        The 45-year-old sinologist has lived in the Chinese capital for 17 years. Barkowsky has headed the China office of the German Engineering Federation (VDMA) since 2016. It is the largest foreign office of the VDMA: 850 of its approximately 3,400 member companies have invested in China.

        The Covid pandemic and its effects have been the major challenge of the past two years, not only for her private life but also for her work. Barkowsky describes this period as “busy”: supply chain problems, travel restrictions, price developments, the trade disputes with the US – the turbulences of the past few years have directly affected VDMA companies in China. Added to this were unforeseen difficulties, such as acute power shortages last fall.

        “All this has led us to be less optimistic overall about the Chinese market,” says Barkowsky. On the other hand, there is no pessimism, but rather increased caution: People are keeping a closer eye. Accordingly, the interest of managers at German company headquarters in China has risen sharply. “Now even management is reading the Five-Year Plan closely.”

        Conversely, the Chinese management of VDMA companies is currently unsure whether and how the change of government in Germany will affect German-Chinese relations. “I am not too concerned, however, that the German government will make a change in direction here.”

        Language as the key to integration

        Claudia Barkowsy has spent her entire career in China so far. The country made her independent at a very early stage. Even as a young newcomer, she was given a lot of trust and a lot of leeway, which gave her additional motivation. “I started from scratch here, both in my professional and private life,” she says. You can certainly go far in China with English. “But for me, mastering the Chinese language has always been the key to integration.”

        She first traveled to China in 1999 while studying sinology at the University of Goettingen. She spent one academic year in Beijing. Although she had already studied Mandarin for three years by that time, her first contact with the locals was “very bumpy and frustrating.” “Hardly anyone understood my school Chinese.” That didn’t discourage her; rather, she was drawn to the challenge of exploring a foreign culture. This foreign Asia had already fascinated her as a child; the TV show “Revenge of the Samurai” was one of her favorite shows.

        After studying sinology, Barkowsky returned to Beijing for an internship at the German Chamber of Foreign Trade – and got her first job there right away. She then worked for several years in expat management at Daimler. She deliberately left the expat bubble some time ago, she says, to give China even more room.

        Even though she does not want to spend her retirement there, Beijing is still the center of her life. Even today, she likes to drink a coffee in the Forbidden City or visit the Great Wall. “It reminds me of my fascination with Chinese history and culture,” she says. This is something she is determined to hold on to. Adrian Meyer

        Claudia Barkowsky is the representative of the German Engineering Federation (VDMA) in China.

        • Autoindustrie

        Executive Moves

        Karina Steinmetz has moved to Shanghai as Senior Manager R&D Satellite for Porsche China. Prior to this, Steinmetz held various positions at Porsche in Germany.

        Maximilian Dietz is the new Director Industrial Engineering for eMobility China at Schaeffler in Jiangsu. Among other things, Dietz is responsible for Industrialization, Production Technology and Cost Engineering for Schaeffler’s eMobility products in the China region. He was previously Senior Manager for Industrialization at Schaeffler in China.

        Dessert

        Is everything already decorated for the Year of the Tiger? There are still a lot of red and gold trinkets left in Bangkok’s Chinatown for the Chinese New Year, which begins on February 1st. Large celebrations, as is usually the case around the Chinese holidays in the Thai capital, have been canceled due to the pandemic.

        China.Table editorial office

        CHINA.TABLE EDITORIAL OFFICE

        Licenses:
          • Is Xi learning from Putin’s Ukraine policy?
          • The dilemma of Taiwan’s chip industry
          • IOC chief Thomas Bach under fire
          • WTO: China allowed to impose punitive tariffs against Washington
          • US plans stricter foreign investment law
          • Chinese mRNA vaccine passes first clinical phase
          • Xi urges careful energy transition
          • Profile: Claudia Barkowsky – Chief Representative of VDMA in Beijing
          Dear reader,

          Luxembourg’s Foreign Minister Jean Asselborn pointed out earlier this week that wars should not be waged during the Olympic Games. He referred to a United Nations resolution. “I believe that gives everyone time to think about war and peace and then make the right decision,” Asselborn said. A notion that also suits Xi Jinping at the moment. Nothing would be more inconvenient for him than a war in Eastern Europe overshadowing his Games. But will Vladimir Putin play along?

          But Beijing is keeping a close eye on the Kremlin’s Ukraine tactics for a very different reason. The similarities between Ukraine’s symbolic importance to Russia and what China considers the breakaway province of Taiwan are obvious. Looking at Ukraine, Beijing is trying to figure out what reactions can be expected from US President Joe Biden and the West in the event of a Chinese invasion of Taiwan, analyzes Christiane Kuehl.

          Taiwan’s extremely successful chip industry is also in a bind. The high global demand is currently raking in record profits. At the same time, it could be crushed in the dispute between China and the USA, writes Frank Sieren in his analysis. Without Western know-how, even the best Taiwanese chip companies cannot remain competitive. And neither can they without the Chinese market.

          I hope you enjoy today’s issue!

          Your
          Felix Lee
          Image of Felix  Lee

          Feature

          The Ukraine conflict also makes Beijing nervous

          Did Xi or did he not? Earlier this week, Bloomberg reported that the Chinese leader had asked his Russian counterpart Vladimir Putin at least not to invade Ukraine during the Winter Olympics. China’s foreign office spokesman Zhao Lijian immediately rejected the report on Monday as an attempt to divide Beijing and Moscow. An invasion that casts a shadow over the Winter Games “would not go down well in Beijing,” said Helena Legarda, a security expert at the China think tank Merics in Berlin. “But I can imagine that Putin would definitely consider it.” An invasion of Ukraine during the Games “could change relations with Russia completely.”

          But China is likely concerned about more than just the spotlight from the Games. Because the obvious question is how Beijing would position itself in the event of a possible invasion. The more Russia allows the situation to escalate, the more difficult it will be for China to stay out of the Ukraine crisis. When Russia annexed Crimea in 2014, Beijing maintained its ironclad principle of “non-interference” in the affairs of other states.

          So far, official Beijing has remained silent. Joe Webster noted in his blog on Russian-Chinese relations, that China’s military and diplomatic structures, as well as the state media, remain awfully quiet and without any opinion. The expert believes two reasons to be at play: “First, Beijing is uneasily balancing its security and economic interests. Second, […] ambiguity can be a useful tool.” It’s a tool Putin also likes to apply – especially when currently dealing with the West.

          China: Difficult decision

          In fact, Beijing faces the difficult choice of either snubbing its partner Russia or potentially intensifying the conflict with the West. Both also entail economic risks for the People’s Republic. It is therefore likely that China will maintain a semi-neutral position for as long as possible – and, as usual, call for peace and dialogue. Direct support for Ukraine and NATO makes no sense for China, Legarda tells China.Table. “At the same time, Beijing will most likely not fully side with Russia either, because that also would not serve China’s interests.”

          But an invasion would change the situation. “If Russia, hypothetically, invades Ukraine and a Western power gets involved militarily, it would be hard for China to stay out of it completely,” Legarda is convinced. While no one believes that soldiers of the People’s Liberation Army could be deployed to Europe, “China could offer Moscow more diplomatic support.”

          Russia and China: How close are relations?

          But how far will this go? Webster regards the two states’ mutual aversion to a US-dominated world order as a uniting factor. “Both Moscow and Beijing continue to regard constitutional democracies as an obstacle to their geopolitical ambitions and, more importantly, a threat to their domestic political regimes,” he writes. Putin is increasingly willing to break rules and directly challenge the free world. “Beijing has operated more cautiously, but it has frequently – if only tacitly and quietly – supported Putin’s actions.”

          Legarda also identifies mutual interests and concerns between the two partners. “But it’s not absolute. They don’t fully trust each other. For example, China is increasing its footprint in Russia’s former sphere of influence, such as Central Asia and the Arctic.” Russia sees that with suspicion. The balance is also increasingly shifting in China’s favor due to the economic rise of the People’s Republic. That could cause tensions in the future. Legarda does not yet consider the relationship a true alliance. “There are limits to what both would do for each other,” she says.

          But there are isolated indications of growing geopolitical cooperation. Moscow has briefed Beijing on its negotiations with the US and NATO countries, Russia’s ambassador to China, Andrei Denisov, said on Tuesday. He also announced a possible “surprise gift” for bilateral relations during Putin’s visit. What that might be, he did not reveal. On Wednesday, diplomats from both countries decided to strengthen coordination of their Asia policy.

          China and Russia: growing economic relations

          Economic relations have also increased. Shortly after Russia invaded Crimea, Beijing and Moscow signed off on the construction of the Power of Siberia gas pipeline in May 2014, which has since pumped natural gas to China. That pipeline has accelerated Russia’s “economic swing to China,” Webster writes. Between 2014 and 2020, Russian exports rose from about $42 billion to $57 billion – in part because of the expansion of oil pipelines along Russia’s Pacific coast.

          China needs these Russian raw materials to fuel its economic growth. But as an export market, Russia is less important to the People’s Republic: “China exported almost as much to Mexico as to Russia in 2020. And China’s exports to Russia in 2020 represented only 0.3% of its 2020 GDP.” Conversely, it was four percent, according to Webster.

          China’s decisive role for future sanctions

          But the growing ties between the two states certainly have geopolitical consequences – especially when it comes to future sanctions against Russia. Since 2014, Chinese banks have largely complied with Western sanctions imposed in the wake of Russia’s incursions into Crimea and the Donbas region. That would be more difficult and costly for China today if those sanctions were tightened further, writes Chris Miller, Director of the Foreign Policy Research Institute’s Eurasia Program, in a newly-released study. “The decisions Beijing makes will either undermine sanctions or intensify their impact,” Miller writes. This, in turn, would affect how high Russia calculates the economic costs of a possible escalation.

          If China decides to support Russia directly, it could transfer bilateral trade to other payment systems based on the Chinese currency, the renminbi. Beijing could also provide renminbi loans to Russia, which Russia could then use to source goods in China. “Such a move would be costly for China, as some of these loans might not get repaid,” Miller further writes. And it would significantly increase tensions between the US and China. But if successful, such renminbi payment systems could later become attractive to third countries that want to continue trading with Russia.

          Such a scenario would be a severe blow to the efficacy of Western sanctions. But it is not out of the question. After all, according to Miller, China’s “alternative would be to tolerate major disruptions to China-Russia trade while watching the US demonstrate sanctions efficacy.” That sounds hardly appealing from Beijing’s perspective.

          Putin in Beijing: display of friendship

          But that is not yet the case. First, Putin is flying to Beijing to attend the Olympic opening ceremony on February 4 to demonstrate friendship. Russian plans for a joint maneuver in Belarus rule out an attack before the end of the Games on February 20, according to Webster. From February 10-20, the two planned to hold maneuvers “to fine-tune the tasks of suppressing and repelling external aggression during a defensive operation,” according to official announcements. Putin has branded boycotts of the Games as “politicization of sport” in line with Beijing’s position. It is not known if he expects anything in return.

          Helena Legarda believes that Ukraine will be a discussion point, even if neither of them explicitly urges it. “I think Putin and Xi will discuss their relations more broadly in the deteriorating geopolitical environment of 2022.” Webster expects they will both announce an agreement at the summit on a second gas pipeline called “Power of Siberia 2” – and perhaps an expansion of political or military cooperation. But would they also coordinate on a joint approach to the Ukraine crisis? Helena Legarda believes this to be unlikely.

          China will probably hold its cards close to its vest and decide depending on the situation. But Legarda believes the conflict has a different dimension for the People’s Republic – one that has nothing to do with Russia. “In the event of a Russian invasion, China would observe the reaction of NATO and the West very closely. It will give Beijing information about a possible reaction of the West to a potential Chinese invasion of Taiwan,” the expert says. Of course, the two cases can hardly be compared. But America’s reaction would tell China “whether there’s still an appetite in Washington to get involved in a conflict overseas – and to observe the level of coherence in the West.” Another reason why the West hopes that it won’t come to open aggression.

            • Geopolitics
            • Russia
            • Taiwan
            • Ukraine

            Taiwan’s chip industry depends on China despite everything

            Taiwan’s chip industry has signed an agreement to establish its own semiconductor equipment industry. The initiative by Taiwanese companies is a reaction to Washington’s sanctions on China by former President Donald Trump in May 2020. Accordingly, anyone using US technologies, software, or even equipment in semiconductor production was no longer allowed to supply certain Chinese companies such as Huawei.

            Huawei, until then the world’s leading manufacturer of smartphones and one of the most important customers of Taiwan Semiconductor Manufacturing Company (TSMC), was left effectively paralyzed. The Chinese tech giant was barely able to produce 5G phones, lost market share to the Chinese cell phone manufacturer Xiaomi and had to sell off its smartphone subsidiary Honor.

            USA and China depend on Taiwan’s chip industry

            Taiwan’s chip industry leads the world. According to TrendForce, a Taipei-based research company, Taiwanese chip manufacturers accounted for 63 percent of the global foundry market last year. With a global market share of about 55 percent, TSMC alone is the world’s dominant player, ahead of South Korea’s Samsung. Taiwanese chips are also among the most advanced chips available. Both the US and China rely on supplies of Taiwanese 7-nanometer chips, be it for the production of cell phones or fighter jets.

            The US government no longer wants chips for the US military to be manufactured in Taiwan. It is considered too risky. The US and most other countries do not recognize Taiwan as a sovereign state. However, Washington also provides political and military support for Taiwan against the leadership in Beijing, which in turn considers Taiwan to be a renegade part of the People’s Republic. In its own words, Beijing is counting on “peaceful reunification,” but does not rule out a military invasion under certain circumstances.

            Due to this volatile political situation, TSMC is currently building a plant in the US state of Arizona for around $12 billion. In Japan, construction of a $7 billion plant will soon start for similar reasons, and even a chip factory in Germany is on the table. At the same time, however, TSMC does not want to abandon the large market in China.

            China strive for more independence

            China had to import around $300 billion worth of chips in 2020, with Taiwan being the main source. Semiconductors are fundamental to virtually every one of China’s many technological ambitions. China’s main domestic manufacturer, Semiconductor Manufacturing International Corporation (SMIC), is still some two years behind Taiwanese global leader TSMC in terms of development and production, according to expert estimates, although the gap is narrowing.

            While SMIC is testing a 7-nanometer chip, its Taiwanese competitor has already arrived at the 3-nanometer process. Smaller transistors consume less power and calculate faster. However, they cannot be scaled down indefinitely. Even the Chinese company SMIC still relies heavily on production equipment from US manufacturers such as LAM Research, Applied Materials, and KLA-Tencor.

            According to Roy C. Lee, an economist at Taiwanese think tank CIER, the People’s Republic can currently only cover about 15 to 20 percent of its semiconductor demand through domestic production. The initiative by Taiwanese chipmakers came after China, in turn, poached more than 100 engineers and managers from TSMC to bolster its own chip industry and reduce its dependence on Western countries in the long term.

            Beijing is keenly interested in building its own chip industry in the long term, partly to make Chinese companies independent of overseas suppliers. Beijing’s 14th Five-Year Plan envisages a series of measures to strengthen the semiconductor industry, including tax breaks, tariff exemptions, and investment boosts. China’s progress in the research and development of semiconductors in recent years has been “particularly impressive” by international standards, writes the Berlin-based think tank of the “Stiftung Neue Verantwortung” (SNV) in a study.

            According to the report, China’s leading chip manufacturer SMIC invested almost ¥4.7 billion (about €610 million) in its research and development last year. That represented 17 percent of the group’s revenue, more than the average 13 to 14 percent that is standard in the international semiconductor industry. This is another reason why Taiwan has decided to work more closely with mainland China to avoid losing too much business now that China is becoming more independent.

            Difficult triangular relationship

            There is a lot at stake for all sides: China and the USA want their supplies to be as independent as possible, and Taiwan does not want to be crushed between the two major powers. The worst-case scenario would be a military confrontation that would completely sever the chip supply chain on one side. Indeed, the idea of Beijing taking control of TSMC is tempting. From one moment to the next, Beijing would be in the driver’s seat. However, that would be a huge military risk and costly in global politics.

            China could already dry up Taiwan’s economy at any time without firing a single shot. The democratic island is closely economically intertwined with the communist mainland. Some 8,000 Taiwanese companies are active in China, including Apple contract manufacturer Foxconn, which is the largest private employer in China. Around 45 percent of Taiwanese exports go to the People’s Republic.

            But even with a “peaceful” merger through economic pressure, China would not be on the safe side. Many international experts and researchers, which TSMC depends on, would leave if they were to fall under Chinese control. Foreign companies cooperating with the Taiwanese would withdraw. International sanctions against the Taiwanese semiconductor industry would then also be likely. Without Western know-how, even the best chip companies from Taiwan cannot remain competitive. But neither can they without China.

            • Chips
            • Semiconductor
            • Taiwan
            • Technology

            Athletes turn their backs on IOC head

            IOC President Thomas Bach had actually scheduled a lunch meeting with Chinese tennis player Peng Shuai in Beijing in January. The sports world is deeply concerned about the whereabouts of the world-class athlete after she accused a top Communist Party cadre of sexual assault and has since only appeared in public under mysterious circumstances. So far, however, the meeting has not happened.

            Now the IOC has told China.Table that the appointment still stands and will take place during the Games. Since the first video phone call between Peng and Bach on November 21 last year, “the IOC team has kept in touch with her.” There have been several online meetings during which they “got to know each other better.”

            According to the IOC, Peng expressed that she was very much looking forward to the Olympic Games and intended to follow the competitions and the performance of the Chinese team very closely. She is also looking forward to meeting Thomas Bach, to which the chair of the IOC Athletes’ Commission, Emma Terho, has also been invited. “In arranging the different conversations, the Chinese Olympic Committee has always been very supportive and will also ensure that the meeting can take place under very strict COVID-19 measures (…).”

            Bach praises Beijing’s efficiency, determination, and vigor

            The president of the International Olympic Committee has been in Beijing, the host city of the Winter Olympics that begin February 4, since last Saturday. State and party leader Xi Jinping has already met Bach for a face-to-face meeting. The IOC chief took the opportunity to express his admiration for the sports venues and the “efficiency, determination, and vigor” of the organizers. Whether it was also about Peng Shuai – nothing about this leaked to the public. According to the IOC, Bach and Xi spoke about the “strong support of the international community for the Olympic Winter Games Beijing 2022.”

            This assessment is astonishing. After all, it is already clear that numerous nations such as the United States, Australia, Japan, the UK, Denmark, and Canada will boycott the Games diplomatically because of China’s massive human rights violations. The German government is avoiding an official boycott, yet no German government representative has announced a trip to the People’s Republic. In addition, athletes and officials are increasingly criticizing China’s zero-covid strategy and even suspecting a possible manipulation of the Games.

            Most recently, German five-time World Cup medalist Felix Neureuther expressed these suspicions in an interview with RTL/ntv. “It’s easy to manipulate these Games. And that’s where I think you have to take a very close look. Otherwise, the Games become an absolute farce,” said the former ski racer.

            Top luger demands respect for human rights

            Neureuther believes that the host country could cheat its way to sports victories. He is certain that China would try to be successful in sports “by any means necessary.” “And what easier way is there to eliminate competition than with a positive Covid test? No one checks how the tests are controlled,” Neureuther told the TV station. German Alpine Head Coach Wolfgang Meier and the President of the German Snowboard Association, Michael Hoelz, also do not rule out potential manipulations of Covid test results.

            The distrust against the Chinese organizers is the result of the authoritarian state leadership and the sheer endless list of human rights violations in China, which makes many Olympic participants sick to their stomachs. Three-time Olympic luge champion Felix Loch told ARD television before leaving for Beijing that the Games should never have been awarded to Beijing in the first place. “Nothing has changed” about the issues of human rights and freedom of the media.

              • Freedom of the press
              • IOC
              • Peng Shuai
              • Sports

              News

              WTO permits punitive tariffs against USA

              China has scored another victory against the USA at the World Trade Organization (WTO). The WTO authorized the People’s Republic to impose countervailing duties worth $645 million against certain US imports in a case that has been pending for a good decade. The background to the case is a complaint filed by China at the WTO against punitive tariffs imposed by the United States on 22 Chinese products between 2008 and 2012, alleging government subsidies and dumping prices. The products affected ranged from solar modules to steel wire.

              The core of the decades-old dispute revolves around the dispute whether the US may consider companies in which the Chinese state has a stake as state-owned enterprises. China originally asked the WTO panel to grant the right to impose tariffs on $2.4 billion worth of US goods.

              The WTO’s ruling was now lower – but it represents another symbolic victory for Beijing at the Geneva-based trade organization. In November 2019, the WTO awarded China the right to impose $3.58 billion in retaliatory tariffs after it objected to how the US government justified accusations that dumped Chinese products were offered in the US. Former US President Donald Trump had imposed punitive tariffs on more than $300 billion worth of Chinese goods, most of which are still in effect. rtr/ari

              • Trade
              • USA
              • WTO

              Planned US law threatens China investments

              US analysts have warned of severe repercussions for US-China economic relations if Washington enacts a planned sweeping legislative proposal for industry-specific restrictions regarding American investments in China. The so-called National Critical Capabilities Defense Act (NCCDA) could negatively impact US-China investment relations and the competitiveness of US companies in the People’s Republic, the analyst group of the National Committee on United States-China Relations and the Rhodium Group wrote in a report released on Wednesday. Future investments by US companies in China could decline sharply, the report stresses. Existing business activities were also at risk of facing greater pressure as a result

              The background to the NCCDA is a push by the US Congress to more effectively screen foreign investments for national security risks. Increasing geopolitical tensions and the Covid pandemic have raised concerns in Washington about the transfer of potentially sensitive technologies, the outsourcing of key production facilities, and the loss of transparency in supply chains, the report says.

              The extensive legislation currently covers several sectors, including medical care, protective equipment, military equipment, and everything that relates to infrastructure essential to national security. These, in turn, include industries ranging from agriculture to nuclear technology. Other industries, such as semiconductor manufacturing, are also to be included. That, however, is still under review. Under the proposed legislation, any transaction by a US company to a country listed as a foreign adversary in affected sectors could be reviewed and blocked. According to the report, no individual countries are listed, but China is on the US State Department’s foreign adversary list, along with other countries such as Iran, Venezuela, and North Korea.

              The final wording of the bill and details on implementation are still pending. However, under the current draft, up to 43 percent of all US direct investment into China over the past two decades already falls under the categories already established in the NCCDA, the analysts explain.

              Should such a law be enacted, the United States would be one of a handful of countries with industry-specific restrictions on foreign investment that differ from traditional sanctions regimes, the report emphasizes. The authors advise against a blanket sweep: “If not designed in a targeted, predictable manner, this change could negatively impact not only the global competitiveness of US companies in affected industries but also the attractiveness of the United States as an investment location for firms that operate globally” ari

              • Investments
              • USA

              mRNA vaccine passes phase 1 clinical trials

              One of China’s mRNA vaccines against Covid is expected to achieve 95 percent efficacy in tests. This was shown by data from the first phase of clinical trials, reports business portal Caixin. The vaccine was jointly developed by Walvax Biotechnology and Suzhou Abogen Biosciences, as well as the Academy of Military Sciences of the Chinese People’s Liberation Army, according to Caixin. It bears the designation Arcov.

              However, the results are based on a Phase 1 study of the vaccine involving only 118 participants between the ages of 18 and 59. The study found that neutralizing antibodies were present in 80 to 95 percent of participants who received two doses of the vaccine. The difference in efficacy is attributed to different doses. The study noted no serious side effects. The majority of participants exhibited only mild reactions, such as fever and pain at the insertion point.

              Neither of the two available mRNA vaccines has yet been approved in China, although Chinese vaccines prove to be less effective against the Omicron variant (China.Table reported). According to Caixin, the Chinese mRNA vaccine Arcov is already in phase 3 trials abroad, for example in Mexico, Indonesia, and Nepal. However, data from the phase 2 and 3 trials have not yet been published. A production facility for the vaccine is already being built in Yunnan. Production is scheduled to start in August, with a capacity of 120 million doses per year.

              Meanwhile, the European Chamber of Commerce believes that the limited effectiveness of China’s covid vaccines will force mainland China to uphold strict travel restrictions. The chamber does not expect a Chinese mRNA vaccine until late 2023 or early 2024, and Hong Kong faces a massive exodus of foreign corporations if travel is not reopened soon. Hong Kong’s role as a financial center could be jeopardized as a result, according to the chamber, which declined to comment on the report. nib

                • Corona Vaccines
                • Coronavirus
                • Health

                Xi urges careful energy transition

                China’s ambitious climate goals should not come at the expense of power and food security, or people’s normal daily lives, President Xi Jinping said on Monday in a speech to the Politburo. Reducing greenhouse gas emissions is not aimed at curbing productivity or stopping emissions altogether, news agency Xinhua quoted Xi as saying.

                The People’s Republic faces a major challenge in its energy transition to meet its climate targets without not jeopardizing too many jobs and economic development. Industries such as the coal, steel, cement and construction sectors, which cause the majority of CO2 emissions, employ tens of millions of people (China.Table reported).

                Last fall’s power shortages once again brought home to the leadership the importance of energy security. Xi urged a cautious energy transition. “The gradual withdrawal of traditional energy must be based on the safe and reliable replacement by new energy,” he said at the Politburo meeting. His goal of being appointed president for the third time by the People’s Congress of the Communist Party at the end of the year should not be overlooked. A slump in growth would not make him look good. nib

                • Climate
                • Energy
                • Xi Jinping

                Profile

                Claudia Barkowsky – a Chinese career

                Claudia Barkowsky is Chief Representative of the VDMA in Beijing

                At long last, Claudia Barkowsky can finally travel from China to Germany again. She has not been back to her home state of Brandenburg since the outbreak of the Covid pandemic two years ago. She is now visiting friends and family during the Chinese New Year – and is accepting a three-week quarantine in China to do so. ” Hopefully, you can work properly in the quarantine hotel,” she says.

                The 45-year-old sinologist has lived in the Chinese capital for 17 years. Barkowsky has headed the China office of the German Engineering Federation (VDMA) since 2016. It is the largest foreign office of the VDMA: 850 of its approximately 3,400 member companies have invested in China.

                The Covid pandemic and its effects have been the major challenge of the past two years, not only for her private life but also for her work. Barkowsky describes this period as “busy”: supply chain problems, travel restrictions, price developments, the trade disputes with the US – the turbulences of the past few years have directly affected VDMA companies in China. Added to this were unforeseen difficulties, such as acute power shortages last fall.

                “All this has led us to be less optimistic overall about the Chinese market,” says Barkowsky. On the other hand, there is no pessimism, but rather increased caution: People are keeping a closer eye. Accordingly, the interest of managers at German company headquarters in China has risen sharply. “Now even management is reading the Five-Year Plan closely.”

                Conversely, the Chinese management of VDMA companies is currently unsure whether and how the change of government in Germany will affect German-Chinese relations. “I am not too concerned, however, that the German government will make a change in direction here.”

                Language as the key to integration

                Claudia Barkowsy has spent her entire career in China so far. The country made her independent at a very early stage. Even as a young newcomer, she was given a lot of trust and a lot of leeway, which gave her additional motivation. “I started from scratch here, both in my professional and private life,” she says. You can certainly go far in China with English. “But for me, mastering the Chinese language has always been the key to integration.”

                She first traveled to China in 1999 while studying sinology at the University of Goettingen. She spent one academic year in Beijing. Although she had already studied Mandarin for three years by that time, her first contact with the locals was “very bumpy and frustrating.” “Hardly anyone understood my school Chinese.” That didn’t discourage her; rather, she was drawn to the challenge of exploring a foreign culture. This foreign Asia had already fascinated her as a child; the TV show “Revenge of the Samurai” was one of her favorite shows.

                After studying sinology, Barkowsky returned to Beijing for an internship at the German Chamber of Foreign Trade – and got her first job there right away. She then worked for several years in expat management at Daimler. She deliberately left the expat bubble some time ago, she says, to give China even more room.

                Even though she does not want to spend her retirement there, Beijing is still the center of her life. Even today, she likes to drink a coffee in the Forbidden City or visit the Great Wall. “It reminds me of my fascination with Chinese history and culture,” she says. This is something she is determined to hold on to. Adrian Meyer

                Claudia Barkowsky is the representative of the German Engineering Federation (VDMA) in China.

                • Autoindustrie

                Executive Moves

                Karina Steinmetz has moved to Shanghai as Senior Manager R&D Satellite for Porsche China. Prior to this, Steinmetz held various positions at Porsche in Germany.

                Maximilian Dietz is the new Director Industrial Engineering for eMobility China at Schaeffler in Jiangsu. Among other things, Dietz is responsible for Industrialization, Production Technology and Cost Engineering for Schaeffler’s eMobility products in the China region. He was previously Senior Manager for Industrialization at Schaeffler in China.

                Dessert

                Is everything already decorated for the Year of the Tiger? There are still a lot of red and gold trinkets left in Bangkok’s Chinatown for the Chinese New Year, which begins on February 1st. Large celebrations, as is usually the case around the Chinese holidays in the Thai capital, have been canceled due to the pandemic.

                China.Table editorial office

                CHINA.TABLE EDITORIAL OFFICE

                Licenses:

                  Sign up now and continue reading immediately

                  No credit card details required. No automatic renewal.

                  Sie haben bereits das Table.Briefing Abonnement?

                  Anmelden und weiterlesen