Which of his many words will Donald Trump follow up with action once he has been sworn in as US President for the second time? How much of his promises were campaigning, and how much will he actually implement? Many politicians around the world are probably asking themselves these questions after his election victory.
Trump had also lashed out at Zhongnanhai: 60 percent punitive tariffs on all Chinese imports, fewer semiconductor exports, and a “hunt” for Chinese spies. Nonetheless, Beijing’s reaction to Trump’s victory on Wednesday was noticeably calm. Marcel Grzanna explains why appearances are deceptive.
However, the EU wants to offer a serious alternative to China’s Belt and Road Initiative with its Global Gateway. So far, this has failed for several reasons: a lack of transparency, too few projects and a lack of economic integration. The man who wants to drive forward Brussels’ infrastructure initiative in the future is Jozef Síkela. Amelie Richter followed his hearing in Parliament on Wednesday and analyzed what the Czech wants to change.
Anyone looking for a mix of Instagram, Pinterest, Tripadvisor and X will find what they are looking for on Xiaohongshu. The Chinese social media platform is one of the most important marketing tools for reaching China’s young, and on the platform, primarily female, generation. In today’s Heads, Jörn Petring introduces Miranda Qu, the founder behind the successful company.
I wish you a good start to the day!
Donald Trump’s election victory alone will cost the People’s Republic of China a lot of money. It is a foregone conclusion that the Standing Committee of the National People’s Congress will announce a further increase in state economic aid on Thursday. Previously, ten trillion yuan (€1.3 trillion) had been announced as a stimulus to provide the domestic economy with urgently needed impetus. However, it had already been leaked that the volume would be increased again if Trump were to be elected US president.
Beijing has been keeping a close eye on the election campaign in the United States. China seems to be prepared for the Republican’s second presidency – as far as that is possible. There is speculation that at least an additional two trillion yuan could be released, perhaps more. Nevertheless, the People’s Republic is facing economic damage that cannot be repaired with an economic stimulus package alone.
Trump had announced that China would no longer be the “most favored nation” in the future. He wants to impose 60% punitive tariffs on Chinese imports across the board. Trump also wants to further restrict semiconductor exports to China and regulate US investments in the country.
China is certain: Trump is not bluffing. “A re-elected Trump will put his words into action. For Trump, tariffs are not just a negotiating tool, but also an ideology that Trump considers to be an effective economic policy instrument and profitable for the USA”, said Wu Xinbo from the Center for American Studies at Fudan University in Shanghai to the financial magazine Jiemian News. Wu also expects fewer exchanges between the two countries – both at the official level and in the private sector.
The new challenges for the second-largest economy have already taken their toll on the financial markets. Hong Kong’s leading index, the Hang Seng, lost more than two percent. For many German companies in China, a possible escalation of Chinese trade relations with the USA also means a feat of strength. The German Chamber of Foreign Trade in Beijing has already published a fact sheet “to help German companies in China better monitor the geopolitical situation between the two economies”.
Beijing, however, was clearly trying to remain calm on Wednesday. “China will handle relations with the US on the principle of mutual respect, peaceful coexistence and win-win cooperation”, said a spokeswoman for the foreign ministry on Wednesday. The online portals of leading Chinese media, meanwhile, treated the election result as one of those international news items that seem to be given less importance than the recent visit of party leader Xi Jinping to Hubei province.
But the supposed serenity is deceptive. The new static nature of economic relations will put Beijing’s economic model and its relations with its other trading partners to the test. There are also additional unpredictabilities in terms of the geopolitical security situation.
Taiwan is one of the key issues that Trump has fueled with his price tag to Taipei for future US support. Wang Dong of Peking University presumably reflected the government’s official stance in an interview. The US under Trump should stop promoting “Taiwan independence” through arms sales. Instead, the US should “support the Chinese side in realizing reunification through peaceful means”, Wang said. However, it is highly doubtful whether Beijing’s pious wish for a U-turn in US policy on Taiwan will be fulfilled. If Taiwan pays, Trump should be satisfied.
In the short term, however, the war in Ukraine is likely to become the focus of attention. China is supporting Russia in its war of aggression and the Americans are calling on Beijing to persuade Russia to cease hostilities. It is likely that the war “will become a top issue between China and the USA and that the USA will exert much greater pressure on China”, says Lu Xiang, an expert from the Chinese Academy of Social Sciences. And the Middle East conflict will also keep the two superpowers busy. “Above all, China has no interest in a war between Israel and Iran, which would have a massive impact on China, for example in terms of energy supply”, says Lu.
There are also those who believe that China sees Trump’s new presidency as a second chance to take on the role of a responsible actor on the world stage. While the US under Trump is only looking out for itself, Beijing could praise its global vision as being good for humanity. This may fall on fertile ground with some of the international community – but probably more with those who are already on Beijing’s side.
In Europe, on the other hand, Beijing has massively lost trust in recent years. Covid, Xinjiang, Hong Kong, Taiwan, the war in Ukraine – the list is long and, in the eyes of many critics, tends to indicate irresponsible behavior.
Jozef Síkela wants to drive forward Brussels’ Global Gateway infrastructure initiative as the designated EU Commissioner for International Partnerships. He was confirmed for the post on Wednesday. At the hearing in the EU Parliament, it became clear that the EU is still struggling with the definition of the initiative, which is supposed to be an alternative to China’s Belt and Road Initiative (BRI). Is Global Gateway official development assistance, a “partnership of equals” with investments – or both?
All descriptions were mentioned at Síkela’s hearing. The EU wants to pursue a “Team Europe” approach – but the definition remains vague, for example with regard to the question of how much funding comes from which sources and who is responsible. This has not made it easy for Global Gateway to present itself to the outside world. The designated EU Commissioner wants to change this, among other things through closer contact with civil society organizations in the partner countries. “We need more visibility.”
According to Síkela, one thing is clear: Global Gateway urgently needs to acquire massive funding from the private sector. The banker wants to work more closely with the development banks in the EU member states and the European Investment Bank (EIB). Síkela also sees work to be done in marketing and communication in order to take Global Gateway from “start-up to scale-up“.
The Czech outlined six points for the successful implementation of Global Gateway:
Síkela openly criticized the BRI at his hearing: “Our partners need more from Europe. Recently, however, they have received more attention from assertive actors with aggressive approaches that bring little development and few clear benefits”, he said in a clear reference to China. The People’s Republic is not doing a good job with the BRI, said Síkela. “In some countries, there is great disappointment with Chinese activities”, he stated, citing the rights of indigenous peoples in relation to land grabbing as an example. “I have received a strong call for more European presence.”
The politician remained vague on the topics of transparency and tracking. “Of course there has to be measurability”, said Síkela. He was prepared to discuss the options for doing so. The EU parliamentarians criticized the fact that monitoring Global Gateway and the associated use of taxpayers’ money had been difficult up to now – because there was no information. Síkela promised improvement in this area. “I have no problem with monitoring.”
“I very much hope that we were able to convince Mr. Síkela today to push ahead with Global Gateway 2.0”, S&D MEP Udo Bullmann told Table.Briefings after the hearing. “He will only be successful with Global Gateway if he aligns his strategy with the UN Sustainable Development Goals and involves relevant stakeholders, such as the European Parliament as budget legislator, appropriately.” Bullmann is critical of the current Global Gateway approach: “Not only because we do not give our partner countries enough of a say, but also because the European Parliament and civil society organizations are not sufficiently involved in the evaluation of the results.”
Bakehouse can hardly save itself from customers. The queues outside the Hong Kong bakery’s branches are always so long that the waiting customers have to be kept at a distance with fluttering tape. Bakehouse, known for its pancakes and croissants, has long been a well-known brand in Hong Kong. But the huge rush has only come about since users started recommending the bakery on Xiaohongshu.
The Chinese social media app provides detailed instructions on how to find the best stores, cafés, and photo spots – not just in Hong Kong or China, but now worldwide. Bakehouse went viral, and now shopping here is a must for Chinese tourists on any visit to Hong Kong.
Founder Miranda Qu, 39, has hit the bull’s eye with her app. “Little Red Book” – the literal translation of the company name – is now one of the most important platforms for fashion and cosmetics brands to reach affluent consumers in Chinese cities, whether through advertised posts or paid influencers. Analysts and marketing experts agree: If you want to reach China’s bargain-hunting youth, there is no way around Xiaohongshu. The platform has 300 million active users every month. Almost three-quarters of them are women, and half were born after 1995.
It is often said that Xiaohongshu is “China’s Instagram”. However, as the US magazine Fortune recently summarized, it is actually a mixture of Instagram, Pinterest, Tripadvisor and X. The platform combines photography, e-commerce, reviews and the latest jargon from social networks.
Miranda Qu has made it to 60th place on Fortune’s list of the most powerful women in Asia. In 2020, she was named a “Young Global Leader” by the World Economic Forum. In China, she is considered one of the country’s most influential businesswomen. Today, she is President of Xiaohongshu and is responsible for cultivating business partnerships and the long-term direction of the company. She grew up in Wuhan, studied journalism in Beijing, and worked in marketing at Bertelsmann before founding Xiaohongshu together with Charlwin Mao in 2013. Mao is now the CEO of the company and is responsible for day-to-day operations.
Xiaohongshu is China’s fastest-growing social media platform and is considered one of the few success stories in a sector that has been characterized by many bankruptcies and falling valuations in recent years.
According to the Financial Times, citing insiders, sales reached the one billion US dollar mark in the first quarter of 2024. The reason for this was an advertising offensive by retailers, who primarily target Gen Z women on the platform. Net profit amounted to $200 million. In the previous year, the net profit in the same period was $40 million, with a turnover of $600 million. The company is currently valued at $17 billion.
Investors are hoping that Xiaohongshu will soon have a successful IPO, with a listing in Hong Kong planned, according to the Financial Times, citing company sources.
Xiaohongshu is receiving support from internet giants Alibaba and Tencent as well as venture capitalists such as GSR Ventures, Hongshan, and private equity firm Hillhouse, among others. Investors are hoping that Beijing will soon relax its tough regulatory policy on the tech sector and foreign listings. The recent upswing in the Chinese stock markets is also contributing to confidence. Jörn Petring
Some Chinese responded to the US election with creativity and humor. On Wednesday, the shares of software manufacturer Wisesoft from Shenzhen rose to the daily limit. The reason lies in the Chinese name, “Chuan Da Zhi Sheng”, which is a homophone of “Trump wins” in Chinese. At the same time, the share value of a thermos manufacturer from Zhejiang fell by 8.1%. The name – “Hears” – is similar to that of the defeated US Democrat Kamala Harris.
Which of his many words will Donald Trump follow up with action once he has been sworn in as US President for the second time? How much of his promises were campaigning, and how much will he actually implement? Many politicians around the world are probably asking themselves these questions after his election victory.
Trump had also lashed out at Zhongnanhai: 60 percent punitive tariffs on all Chinese imports, fewer semiconductor exports, and a “hunt” for Chinese spies. Nonetheless, Beijing’s reaction to Trump’s victory on Wednesday was noticeably calm. Marcel Grzanna explains why appearances are deceptive.
However, the EU wants to offer a serious alternative to China’s Belt and Road Initiative with its Global Gateway. So far, this has failed for several reasons: a lack of transparency, too few projects and a lack of economic integration. The man who wants to drive forward Brussels’ infrastructure initiative in the future is Jozef Síkela. Amelie Richter followed his hearing in Parliament on Wednesday and analyzed what the Czech wants to change.
Anyone looking for a mix of Instagram, Pinterest, Tripadvisor and X will find what they are looking for on Xiaohongshu. The Chinese social media platform is one of the most important marketing tools for reaching China’s young, and on the platform, primarily female, generation. In today’s Heads, Jörn Petring introduces Miranda Qu, the founder behind the successful company.
I wish you a good start to the day!
Donald Trump’s election victory alone will cost the People’s Republic of China a lot of money. It is a foregone conclusion that the Standing Committee of the National People’s Congress will announce a further increase in state economic aid on Thursday. Previously, ten trillion yuan (€1.3 trillion) had been announced as a stimulus to provide the domestic economy with urgently needed impetus. However, it had already been leaked that the volume would be increased again if Trump were to be elected US president.
Beijing has been keeping a close eye on the election campaign in the United States. China seems to be prepared for the Republican’s second presidency – as far as that is possible. There is speculation that at least an additional two trillion yuan could be released, perhaps more. Nevertheless, the People’s Republic is facing economic damage that cannot be repaired with an economic stimulus package alone.
Trump had announced that China would no longer be the “most favored nation” in the future. He wants to impose 60% punitive tariffs on Chinese imports across the board. Trump also wants to further restrict semiconductor exports to China and regulate US investments in the country.
China is certain: Trump is not bluffing. “A re-elected Trump will put his words into action. For Trump, tariffs are not just a negotiating tool, but also an ideology that Trump considers to be an effective economic policy instrument and profitable for the USA”, said Wu Xinbo from the Center for American Studies at Fudan University in Shanghai to the financial magazine Jiemian News. Wu also expects fewer exchanges between the two countries – both at the official level and in the private sector.
The new challenges for the second-largest economy have already taken their toll on the financial markets. Hong Kong’s leading index, the Hang Seng, lost more than two percent. For many German companies in China, a possible escalation of Chinese trade relations with the USA also means a feat of strength. The German Chamber of Foreign Trade in Beijing has already published a fact sheet “to help German companies in China better monitor the geopolitical situation between the two economies”.
Beijing, however, was clearly trying to remain calm on Wednesday. “China will handle relations with the US on the principle of mutual respect, peaceful coexistence and win-win cooperation”, said a spokeswoman for the foreign ministry on Wednesday. The online portals of leading Chinese media, meanwhile, treated the election result as one of those international news items that seem to be given less importance than the recent visit of party leader Xi Jinping to Hubei province.
But the supposed serenity is deceptive. The new static nature of economic relations will put Beijing’s economic model and its relations with its other trading partners to the test. There are also additional unpredictabilities in terms of the geopolitical security situation.
Taiwan is one of the key issues that Trump has fueled with his price tag to Taipei for future US support. Wang Dong of Peking University presumably reflected the government’s official stance in an interview. The US under Trump should stop promoting “Taiwan independence” through arms sales. Instead, the US should “support the Chinese side in realizing reunification through peaceful means”, Wang said. However, it is highly doubtful whether Beijing’s pious wish for a U-turn in US policy on Taiwan will be fulfilled. If Taiwan pays, Trump should be satisfied.
In the short term, however, the war in Ukraine is likely to become the focus of attention. China is supporting Russia in its war of aggression and the Americans are calling on Beijing to persuade Russia to cease hostilities. It is likely that the war “will become a top issue between China and the USA and that the USA will exert much greater pressure on China”, says Lu Xiang, an expert from the Chinese Academy of Social Sciences. And the Middle East conflict will also keep the two superpowers busy. “Above all, China has no interest in a war between Israel and Iran, which would have a massive impact on China, for example in terms of energy supply”, says Lu.
There are also those who believe that China sees Trump’s new presidency as a second chance to take on the role of a responsible actor on the world stage. While the US under Trump is only looking out for itself, Beijing could praise its global vision as being good for humanity. This may fall on fertile ground with some of the international community – but probably more with those who are already on Beijing’s side.
In Europe, on the other hand, Beijing has massively lost trust in recent years. Covid, Xinjiang, Hong Kong, Taiwan, the war in Ukraine – the list is long and, in the eyes of many critics, tends to indicate irresponsible behavior.
Jozef Síkela wants to drive forward Brussels’ Global Gateway infrastructure initiative as the designated EU Commissioner for International Partnerships. He was confirmed for the post on Wednesday. At the hearing in the EU Parliament, it became clear that the EU is still struggling with the definition of the initiative, which is supposed to be an alternative to China’s Belt and Road Initiative (BRI). Is Global Gateway official development assistance, a “partnership of equals” with investments – or both?
All descriptions were mentioned at Síkela’s hearing. The EU wants to pursue a “Team Europe” approach – but the definition remains vague, for example with regard to the question of how much funding comes from which sources and who is responsible. This has not made it easy for Global Gateway to present itself to the outside world. The designated EU Commissioner wants to change this, among other things through closer contact with civil society organizations in the partner countries. “We need more visibility.”
According to Síkela, one thing is clear: Global Gateway urgently needs to acquire massive funding from the private sector. The banker wants to work more closely with the development banks in the EU member states and the European Investment Bank (EIB). Síkela also sees work to be done in marketing and communication in order to take Global Gateway from “start-up to scale-up“.
The Czech outlined six points for the successful implementation of Global Gateway:
Síkela openly criticized the BRI at his hearing: “Our partners need more from Europe. Recently, however, they have received more attention from assertive actors with aggressive approaches that bring little development and few clear benefits”, he said in a clear reference to China. The People’s Republic is not doing a good job with the BRI, said Síkela. “In some countries, there is great disappointment with Chinese activities”, he stated, citing the rights of indigenous peoples in relation to land grabbing as an example. “I have received a strong call for more European presence.”
The politician remained vague on the topics of transparency and tracking. “Of course there has to be measurability”, said Síkela. He was prepared to discuss the options for doing so. The EU parliamentarians criticized the fact that monitoring Global Gateway and the associated use of taxpayers’ money had been difficult up to now – because there was no information. Síkela promised improvement in this area. “I have no problem with monitoring.”
“I very much hope that we were able to convince Mr. Síkela today to push ahead with Global Gateway 2.0”, S&D MEP Udo Bullmann told Table.Briefings after the hearing. “He will only be successful with Global Gateway if he aligns his strategy with the UN Sustainable Development Goals and involves relevant stakeholders, such as the European Parliament as budget legislator, appropriately.” Bullmann is critical of the current Global Gateway approach: “Not only because we do not give our partner countries enough of a say, but also because the European Parliament and civil society organizations are not sufficiently involved in the evaluation of the results.”
Bakehouse can hardly save itself from customers. The queues outside the Hong Kong bakery’s branches are always so long that the waiting customers have to be kept at a distance with fluttering tape. Bakehouse, known for its pancakes and croissants, has long been a well-known brand in Hong Kong. But the huge rush has only come about since users started recommending the bakery on Xiaohongshu.
The Chinese social media app provides detailed instructions on how to find the best stores, cafés, and photo spots – not just in Hong Kong or China, but now worldwide. Bakehouse went viral, and now shopping here is a must for Chinese tourists on any visit to Hong Kong.
Founder Miranda Qu, 39, has hit the bull’s eye with her app. “Little Red Book” – the literal translation of the company name – is now one of the most important platforms for fashion and cosmetics brands to reach affluent consumers in Chinese cities, whether through advertised posts or paid influencers. Analysts and marketing experts agree: If you want to reach China’s bargain-hunting youth, there is no way around Xiaohongshu. The platform has 300 million active users every month. Almost three-quarters of them are women, and half were born after 1995.
It is often said that Xiaohongshu is “China’s Instagram”. However, as the US magazine Fortune recently summarized, it is actually a mixture of Instagram, Pinterest, Tripadvisor and X. The platform combines photography, e-commerce, reviews and the latest jargon from social networks.
Miranda Qu has made it to 60th place on Fortune’s list of the most powerful women in Asia. In 2020, she was named a “Young Global Leader” by the World Economic Forum. In China, she is considered one of the country’s most influential businesswomen. Today, she is President of Xiaohongshu and is responsible for cultivating business partnerships and the long-term direction of the company. She grew up in Wuhan, studied journalism in Beijing, and worked in marketing at Bertelsmann before founding Xiaohongshu together with Charlwin Mao in 2013. Mao is now the CEO of the company and is responsible for day-to-day operations.
Xiaohongshu is China’s fastest-growing social media platform and is considered one of the few success stories in a sector that has been characterized by many bankruptcies and falling valuations in recent years.
According to the Financial Times, citing insiders, sales reached the one billion US dollar mark in the first quarter of 2024. The reason for this was an advertising offensive by retailers, who primarily target Gen Z women on the platform. Net profit amounted to $200 million. In the previous year, the net profit in the same period was $40 million, with a turnover of $600 million. The company is currently valued at $17 billion.
Investors are hoping that Xiaohongshu will soon have a successful IPO, with a listing in Hong Kong planned, according to the Financial Times, citing company sources.
Xiaohongshu is receiving support from internet giants Alibaba and Tencent as well as venture capitalists such as GSR Ventures, Hongshan, and private equity firm Hillhouse, among others. Investors are hoping that Beijing will soon relax its tough regulatory policy on the tech sector and foreign listings. The recent upswing in the Chinese stock markets is also contributing to confidence. Jörn Petring
Some Chinese responded to the US election with creativity and humor. On Wednesday, the shares of software manufacturer Wisesoft from Shenzhen rose to the daily limit. The reason lies in the Chinese name, “Chuan Da Zhi Sheng”, which is a homophone of “Trump wins” in Chinese. At the same time, the share value of a thermos manufacturer from Zhejiang fell by 8.1%. The name – “Hears” – is similar to that of the defeated US Democrat Kamala Harris.
