Table.Briefing: China

Book special: Recommendations for your fall reading list

Dear reader,

As China editors, we have noticed some particularly interesting recent publications this summer. Therefore, we have been reading avidly over the past weeks – and we don’t want to keep our recommendations from you. So we took the opportunity to present a China.Table book special.

The topics of these recent books range from politics and emerging conflicts to the Chinese writing system and culinary arts, covering both highly topical and historical issues.

Our selection features six books by Liao Yiwu, Bethany Allen-Ebrahimian, Julia Lovell, Clarissa Wei, Jing Tsu, as well as Hal Brands and Michael Beckley.

Although we only cover one novel and otherwise non-fiction, some of the non-fictional works depict events so wild that no one could have made up.

Your
Finn Mayer-Kuckuk
Image of Finn  Mayer-Kuckuk

Feature

The best books about China and Taiwan

Liao Yiwu: Love in the Time of Mao Zedong

Liao Yiwu calls the admiration for Mao the “most impressive idolatry” of the 20th century. To the Red Guards, he was like a god who could even mysteriously arrange love affairs. At least, that is what Zhuang Zigui, the protagonist of Liao’s novel “Love in the Time of Mao Zedong,” believes. For the 17-year-old, the hardships of adolescence are heightened to an unbearable level by the plights of the Cultural Revolution; life between power-drunk agitation and bleak rural deportation degenerates into one big mood swing.

Liao wrote the first parts of the novel while in prison in China in 1992, where he was serving time for writing a political poem. He completed it in 2016 in exile in Germany. The words are appropriately brutal, the imagery archaic to the point of disturbing – revolution in Liao’s work is a wet nightmare in which the hope of waking up has to be hidden between the sheets like a reactionary poem. fpe

Liao Yiwu: Love in the Time of Mao Zedong, S. Fischer, 448 pages, 26 euros. So far only available in German.

Bethany Allen-Ebrahimian: Beijing Rules

In “Beijing Rules,” Bethany Allen-Ebrahimian, a correspondent for the US platform Axios in Taipei, explains how the People’s Republic used the chaos caused by the Covid pandemic to step up its push to become a superpower. China attempts to instrumentalize its economic power and access to its markets to enforce obedience and compliance from other nations. This leads to an “international expansion” of the Communist Party’s values.

However, “Beijing Rules” also shows that governments around the world have recognized the threat. The book lists several suggestions on how to protect democracy. Allen advocates, for example, more coordinated intervention by Western states and their institutions to better support companies. Although the book does not necessarily provide new insights for geeks who deal with China’s trade policy daily. For those who are not too familiar with the subject, however, it offers a good overview, especially of the developments in global trade over the past five years, which have been increasingly dominated by China. ari

Bethany Allen-Ebrahimian: Beijing Rules, Harper, 336 pages, 24 euros.

Julia Lovell: Maoism – A Global History

For centuries, China has stood for a policy of non-interference – a narrative often used by Beijing. On the other hand, Sinologist Julia Lovell shows how the country only recently sought to turn its Maoist world revolution into a Chinese export hit by investing much capital and manpower. Its ventures overseas led to disastrous consequences all over the world, from the mass murders in Indonesia and Cambodia to the terrorist attacks in the German Autumn. In the Germany of the 1970s, even football stars like Paul Breitner displayed their admiration for the Red Guards. Of course, the unreflective radical chic had little to do with the conditions on the ground.

Lovell expertly dispels another misconception: That Mao, the supposedly simple-minded but cruel dictator, is resting on the compost heap of history. Mao’s ideas still maintain power, especially in emerging and developing countries and China itself. Xi Jinping once again proclaimed the country the center of a global revolution, albeit with different means, but with similar authoritarian vigor and a cult of personality inspired by Mao. Not least, the book deals with a complex that still puzzles many China observers today: The Chinese perception of history and their relationship to Mao’s crimes. Lovell writes that the People’s Republic is an “economic and cultural hybrid” in which many Maos coexist today, both good and bad. And she concludes: Perhaps China’s ability to endure paradoxes is the most remarkable legacy of the Great Helmsman. fpe

Julia Lovell: Maoismus – A Global History, Bodley Head, 642 pages.

Clarissa Wei: Made in Taiwan

Taiwanese food is often grouped with Chinese cuisine, but has a unique culinary identity, according to Clarissa Wei, a US-born journalist with Taiwanese roots. “Made in Taiwan” features 100 recipes Wei has compiled through historical research, reportage and her experiences on the island. They include salad made from Judas ear mushroom, fried milkfish belly and sesame flatbread. Wei also explains what belongs in a classic Taiwanese pantry.

It was essential for Wei to present the perspective of the Taiwanese people. “Taiwan is at the center of US-China tensions,” she writes. “In the States, people can’t distinguish Taiwanese people from Chinese people, and my Taiwanese friends face a lot of discrimination. This book sits at the intersection of all of those things.” The fact that the book apparently also strikes a geopolitical chord with many is shown by reviews and comments on book platforms, which include outraged remarks about the island being part of mainland China. ari

Clarissa Wei: Made in Taiwan – Recipes and Stories from the Island Nation, S&S, 343 pages, 38.99 euros.

Jing Tsu: Kingdom of Characters

There is probably no other country where the writing system and language are as important as in China. It is hard to imagine many Western politicians writing down a few carefully chosen words to sway the public – as an expression of education and wisdom. But in China, that is the case. Mao’s handwriting is enshrined on the front page of the People’s Daily every day. And the Chinese people know what Xi Jinping’s geopolitical proclamation of “changes not seen for 100 years” alludes to: Li Hongzhang, the time around 1872 and the beginning of the modern age.

In her excellent book “Kingdom of Characters – A Tale of Language, Obsession, and Genius in Modern China,” Jing Tsu shows how China’s centuries-old characters have found their way into the modern era. It is a story full of challenges, in the course of which many believed the end of Chinese characters was imminent. None other than renowned writer Lu Xun once said: “If Chinese characters are not destroyed, then China will die.”

There were challenges such as the invention of the typewriter, the telegram or the computer – but time and time again, China’s brilliant minds managed to transport their characters into the modern age. What seems like a form of weakness in Lu Xun’s case has long since become an instrument of political power when, for example, Beijing and Taipei argue about which characters should be included in the international code and standards as a standard and which as a mere variant. It is not without reason that “Kingdom of Characters” has been shortlisted for the Pulitzer Prize. Jing Tsu has written a spectacular book that shows China from an entirely different perspective. rad

Jing Tsu: Kingdom of Characters – A Tale of Language, Obsession, and Genius in Modern China, Penguin, 336 pages, 24.95 euros.

Hal Brands and Michael Beckley: Danger Zone

In their book “Danger Zone – The Coming Conflict with China,” the two US-Americans, Hal Brand and Michael Beckley, suggest that China and the USA may soon go to war over Taiwan. In fact, as early as the year 2025. They explain the reasons for this in a shockingly convincing way and refer to the phenomenon of “Peak China.” The People’s Republic is now powerful enough to disrupt the existing world order. However, they believe Xi Jinping is increasingly losing confidence that time is still on China’s side. That is why he must act now, reach for Taiwan in the coming years and challenge the United States.

This means that a “danger zone” is opening up for the world – and the West must urgently prepare itself for it. This is where Brands and Beckley are absolutely convincing. They do not hide behind pretty phrases and name clear points, problems and questions. “Danger Zone” is therefore not least clearly addressed to the political leadership in Washington. But the West as a whole must deal with the tense situation between the USA and China. After all, Europe is still comfortably sheltered under the protective wing of the US. However, should a conflict between the two world powers arise, this time would ultimately end. rad

Hal Brands and Michael Beckley: Danger Zone – The Coming Conflict with China, Norton & Company, 304 pages, 19.50 euros.

  • KP Chinas
Translation missing.

Sinolytics Radar

US investment screening with limited impact

Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
  • On August 9, the US government released an executive order (EO) on outbound investment screening. The new controls either prohibit or require a notification for transactions such as acquisition of equity interest, joint ventures, and greenfield investments into semiconductors, quantum information, and AI.​
  • Concrete implications for industries will depend on the specificities of the final regulation. Affected industry associations, such as the U.S. Semiconductor Industry Association, are still reviewing the impacts for their member companies. ​
  • However, US capital flows into the controlled technologies had already started to dry up due to expansive export controls. VC deals with US involvement dropped to 64 so far this year, down from 179 in 2022 and 246 in 2021. An especially sharp drop can be observed in the areas of Artificial Intelligence and semiconductors.​
  • Even though the position of US direct investments in China has remained high at 129.9 billion USD as of now, growth of US investments has been slowing. US direct investment transactions in Q1 2023 fell to 3 billion USD compared to 4.3 billion USD in Q1 2022.​
  • Given the narrow scope of the current EO regulations, it will have a limited impact on US investments into China. It will also have a limited impact on China’s development in the three tech fields as most Chinese start-ups are funded by domestic capital. ​
  • However, US controls are still under discussion and might be expanded to cover a broader set of technologies. The US controls also set a benchmark for the debate within the EU around an outbound investment screening. But any European approach will, at least for now, likely be narrowly targeted at military-related technologies. ​

Sinolytics is a European research-based consultancy entirely focused on China. It advises European companies on their strategic orientation and concrete business activities in the People’s Republic.

News

Expats continue to be exempt from fringe benefits tax

Expats will remain exempt from tax on allowances paid by their companies for rent, their children’s school fees or language courses for the time being. This is according to an announcement by the government’s highest tax authority on 18 August. Originally, these individual income tax benefits were supposed to end at the end of the year. However, the Ministry of Finance extended them on Monday by four years until the end of 2027. Various business associations, including the EU Chamber of Commerce in China, welcomed the extension.

The EU Chamber stated that it had lobbied for this issue at all levels of government. The continued tax exemption could “help halt the exodus of foreign talent” in recent years. It was “welcome news for families who have decided to come to China or stay there.”

Especially the costs for rent and fees for their children’s international schools can amount to the equivalent of several thousand euros per month for many expats. This is why employers cover these costs for expatriates, as their time in China would otherwise not be financially worthwhile for them. Conversely, China attempts to gradually include non-cash benefits such as these in taxation, as is not uncommon in the West. ck

Raimondo also meets Li Qiang

US Secretary of Commerce Gina Raimondo has met with China’s Premier Li Qiang. At the meeting, she stressed that the US wanted to work with China to solve global issues such as climate change and artificial intelligence (AI). She stated the United States’ intention to collaborate with China “as two global powers to do what is right for all of humanity.”

Li said that solid economic relations and trade cooperation between China and the US would benefit the world. The fact that Li received Raimondo is considered a success.

In the morning, Raimondo agreed with Tourism Minister Hu Hepin to hold the 14th China-US Tourism Leadership Summit in China in the first half of next year. On Monday, the minister met with her counterpart Wang Wentao, who agreed on several working groups and dialogue formats. ck/rtr

British Foreign Secretary Cleverly travels to Beijing

British Foreign Secretary James Cleverly will visit Beijing on Wednesday. The visit marks the first time a British Foreign Secretary has traveled to China in over five years. The Foreign Office in Beijing confirmed the long-planned visit on Tuesday. Cleverly is expected to meet his Chinese counterpart Wang Yi and Vice-President Han Zheng.

“The two sides will have in-depth communication on bilateral relations and international and regional issues of mutual interest,” Foreign Office spokesman Wang Wenbin said. “We hope the UK will work with China to deepen exchanges and enhance understanding in the spirit of mutual respect, so as to promote the steady development of China-UK relations.” Cleverly was originally supposed to travel to Beijing in July. However, his visit, like that of EU Foreign Affairs Commissioner Josep Borrell, was postponed amid the turmoil surrounding the disappearance of former Foreign Minister Qin Gang.

Diplomatic relations between the two countries are at an all-time low. The situation in the former British colony of Hong Kong is a central source of conflict. Several Hong Kong activists live in exile in the UK. London also criticized human rights violations and China’s support for Russia. In June, Cleverly stated he would raise issues such as Xinjiang and Hong Kong during his visit. He also said he would ask Beijing to lift sanctions imposed on five British MPs in 2021. ari

Volkswagen forced lower prices again

The discount battle in the Chinese car market goes into the next round. As Nikkei Asia reports, Volkswagen offered special deals of up to 60,000 yuan (a good 7,600 euros) for nine different SUV models in August. In July, VW already considerably lowered the price of its basic electric model ID.3 – by 37,000 yuan (a good 4,500 euros) to an entry-level price starting at 125,900 yuan (just under 16,000 euros).

The German group is by no means alone with its discount policy. The US carmaker Tesla started the price-cutting spiral in January – and again lowered the prices of several versions of its Model Y in August. And the Chinese competition has also jumped on the bandwagon. Zhejiang Leapmotor has lowered the price of an SUV by 20,000 yuan, while Geely is offering a ten percent discount on its Zeekr luxury SUV.

The concern now is that the already uncertain consumers will further postpone their purchases in the hope of even lower prices. Therefore, China’s government attempts to persuade the sector to refrain from granting excessive discounts. fin

  • Autoindustrie
  • Tesla
  • Volkswagen

Heads

Yi-Wei Keng – dramaturg receives the Goethe Medal

Yi-Wei Keng
Carola Lentz,(l), President of the Goethe-Institut, congratulates Taiwanese curator and dramaturg Yi-Wei Keng on being awarded the Goethe Medal 2023.

Together with the Georgian film executive Gaga Chkheidze and the curatorial collective of the OFF Biennale from Hungary, the Taiwanese dramaturg Yi-Wei Keng 一偉耿 was awarded the Goethe Medal in Weimar on Monday. The award, presented by the Goethe-Institut, honors individuals who have made a special contribution to global cultural exchange. “Yi-Wei Keng is one of the most important initiators of cultural exchange in Taiwan, especially for networking with the German theater scene,” said Carola Lentz, President of the Goethe-Institut.

Focus on German-Taiwanese cooperation

Yi-Wei Keng was born in 1969 and grew up in Hualien. After studying philosophy, he spent two years in Prague in 1997, where he accidentally ended up in a course for nonverbal theater. “Back in Taiwan, I worked with deaf people, so nonverbal theater was ideal. Inclusive theater didn’t even exist here at that time,” Keng said in an interview with the German newspaper taz.

Soon after, Keng became the artistic director of the Taipei Arts Festival, where he also set standards in experimental theater, dance in public spaces, and children’s theater. In this position, he organized collaborations with theaters worldwide from 2012 to 2017, focusing on a German-Taiwanese collaboration. For instance, Yi-Wei Keng has brought shows by the Deutsches Theater Berlin, the Rimini Protokoll group, and Raumlabor Berlin, among others, to Taiwan. His thoughts can also often be found in the prefaces of translations of German novels published in Taiwan.

Keng’s concept “Axis Taipei & International Collaboration” was not least an attempt to diplomatically represent an internationally isolated Taiwan on the political world stage using art. “Taiwan maintains hardly any official relations with other countries. Culture is therefore all the more important,” he says. Keng’s vision is for artists around the world to network and forge friendships with Taiwanese art professionals. As a side effect, they might get to know and love the island – and perhaps one day stand up for it should China invade Taiwan.

More visibility with the help of art

Keng worries that Taiwan could face an even worse fate than Hong Kong: “In Hong Kong, power was peacefully handed over to China. Taiwan, however, has its own military. We would face more of a situation like the one we’re seeing in Ukraine right now.” For the time being, however, Beijing would try to divide Taiwan in order to exert control.

That is why Yi-Wei Keng wants to continue using his art to strengthen the visibility and identity of the Taiwanese people. He has been doing this since 2018 as a dramaturge at the National Kaohsiung Center for the Arts, one of the three largest theater houses on the island, where he can direct four major stages simultaneously. He is also a co-curator at the “Want to Dance” dance festival in Taipei and, starting this year, in charge of the Tainan Arts Festival in southern Taiwan. In a video contribution by the Goethe-Institut, he said that being an artist gives him a responsibility to his homeland. “I have to use my influence to get more people to notice Taiwan.” Fabian Peltsch

Executive Moves

Li Xinming – also known as Jeff Li– has been appointed head of China government affairs at US memory chipmaker Micron Technologies.

Rod Ireland, head of global markets Asia-Pacific, has been promoted to interim head of RBC Wealth Management Asia. He replaces Terence Chow, who recently left the bank.

Is something changing in your organization? Let us know at heads@table.media!

Dessert

Not a UFO, but a museum. Perhaps even a time machine. It will only be two months before science fiction fans in Chengdu take off in it. In October, it will be the venue for the Hugo Awards, the Oscars of science fiction and fantasy literature. For the associated event, the 81st World Science Fiction Convention Worldcon, Zaha Hadid Architects (ZHA) designed the Chengdu Science Fiction Museum. The event will be held in China for the first time.

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    As China editors, we have noticed some particularly interesting recent publications this summer. Therefore, we have been reading avidly over the past weeks – and we don’t want to keep our recommendations from you. So we took the opportunity to present a China.Table book special.

    The topics of these recent books range from politics and emerging conflicts to the Chinese writing system and culinary arts, covering both highly topical and historical issues.

    Our selection features six books by Liao Yiwu, Bethany Allen-Ebrahimian, Julia Lovell, Clarissa Wei, Jing Tsu, as well as Hal Brands and Michael Beckley.

    Although we only cover one novel and otherwise non-fiction, some of the non-fictional works depict events so wild that no one could have made up.

    Your
    Finn Mayer-Kuckuk
    Image of Finn  Mayer-Kuckuk

    Feature

    The best books about China and Taiwan

    Liao Yiwu: Love in the Time of Mao Zedong

    Liao Yiwu calls the admiration for Mao the “most impressive idolatry” of the 20th century. To the Red Guards, he was like a god who could even mysteriously arrange love affairs. At least, that is what Zhuang Zigui, the protagonist of Liao’s novel “Love in the Time of Mao Zedong,” believes. For the 17-year-old, the hardships of adolescence are heightened to an unbearable level by the plights of the Cultural Revolution; life between power-drunk agitation and bleak rural deportation degenerates into one big mood swing.

    Liao wrote the first parts of the novel while in prison in China in 1992, where he was serving time for writing a political poem. He completed it in 2016 in exile in Germany. The words are appropriately brutal, the imagery archaic to the point of disturbing – revolution in Liao’s work is a wet nightmare in which the hope of waking up has to be hidden between the sheets like a reactionary poem. fpe

    Liao Yiwu: Love in the Time of Mao Zedong, S. Fischer, 448 pages, 26 euros. So far only available in German.

    Bethany Allen-Ebrahimian: Beijing Rules

    In “Beijing Rules,” Bethany Allen-Ebrahimian, a correspondent for the US platform Axios in Taipei, explains how the People’s Republic used the chaos caused by the Covid pandemic to step up its push to become a superpower. China attempts to instrumentalize its economic power and access to its markets to enforce obedience and compliance from other nations. This leads to an “international expansion” of the Communist Party’s values.

    However, “Beijing Rules” also shows that governments around the world have recognized the threat. The book lists several suggestions on how to protect democracy. Allen advocates, for example, more coordinated intervention by Western states and their institutions to better support companies. Although the book does not necessarily provide new insights for geeks who deal with China’s trade policy daily. For those who are not too familiar with the subject, however, it offers a good overview, especially of the developments in global trade over the past five years, which have been increasingly dominated by China. ari

    Bethany Allen-Ebrahimian: Beijing Rules, Harper, 336 pages, 24 euros.

    Julia Lovell: Maoism – A Global History

    For centuries, China has stood for a policy of non-interference – a narrative often used by Beijing. On the other hand, Sinologist Julia Lovell shows how the country only recently sought to turn its Maoist world revolution into a Chinese export hit by investing much capital and manpower. Its ventures overseas led to disastrous consequences all over the world, from the mass murders in Indonesia and Cambodia to the terrorist attacks in the German Autumn. In the Germany of the 1970s, even football stars like Paul Breitner displayed their admiration for the Red Guards. Of course, the unreflective radical chic had little to do with the conditions on the ground.

    Lovell expertly dispels another misconception: That Mao, the supposedly simple-minded but cruel dictator, is resting on the compost heap of history. Mao’s ideas still maintain power, especially in emerging and developing countries and China itself. Xi Jinping once again proclaimed the country the center of a global revolution, albeit with different means, but with similar authoritarian vigor and a cult of personality inspired by Mao. Not least, the book deals with a complex that still puzzles many China observers today: The Chinese perception of history and their relationship to Mao’s crimes. Lovell writes that the People’s Republic is an “economic and cultural hybrid” in which many Maos coexist today, both good and bad. And she concludes: Perhaps China’s ability to endure paradoxes is the most remarkable legacy of the Great Helmsman. fpe

    Julia Lovell: Maoismus – A Global History, Bodley Head, 642 pages.

    Clarissa Wei: Made in Taiwan

    Taiwanese food is often grouped with Chinese cuisine, but has a unique culinary identity, according to Clarissa Wei, a US-born journalist with Taiwanese roots. “Made in Taiwan” features 100 recipes Wei has compiled through historical research, reportage and her experiences on the island. They include salad made from Judas ear mushroom, fried milkfish belly and sesame flatbread. Wei also explains what belongs in a classic Taiwanese pantry.

    It was essential for Wei to present the perspective of the Taiwanese people. “Taiwan is at the center of US-China tensions,” she writes. “In the States, people can’t distinguish Taiwanese people from Chinese people, and my Taiwanese friends face a lot of discrimination. This book sits at the intersection of all of those things.” The fact that the book apparently also strikes a geopolitical chord with many is shown by reviews and comments on book platforms, which include outraged remarks about the island being part of mainland China. ari

    Clarissa Wei: Made in Taiwan – Recipes and Stories from the Island Nation, S&S, 343 pages, 38.99 euros.

    Jing Tsu: Kingdom of Characters

    There is probably no other country where the writing system and language are as important as in China. It is hard to imagine many Western politicians writing down a few carefully chosen words to sway the public – as an expression of education and wisdom. But in China, that is the case. Mao’s handwriting is enshrined on the front page of the People’s Daily every day. And the Chinese people know what Xi Jinping’s geopolitical proclamation of “changes not seen for 100 years” alludes to: Li Hongzhang, the time around 1872 and the beginning of the modern age.

    In her excellent book “Kingdom of Characters – A Tale of Language, Obsession, and Genius in Modern China,” Jing Tsu shows how China’s centuries-old characters have found their way into the modern era. It is a story full of challenges, in the course of which many believed the end of Chinese characters was imminent. None other than renowned writer Lu Xun once said: “If Chinese characters are not destroyed, then China will die.”

    There were challenges such as the invention of the typewriter, the telegram or the computer – but time and time again, China’s brilliant minds managed to transport their characters into the modern age. What seems like a form of weakness in Lu Xun’s case has long since become an instrument of political power when, for example, Beijing and Taipei argue about which characters should be included in the international code and standards as a standard and which as a mere variant. It is not without reason that “Kingdom of Characters” has been shortlisted for the Pulitzer Prize. Jing Tsu has written a spectacular book that shows China from an entirely different perspective. rad

    Jing Tsu: Kingdom of Characters – A Tale of Language, Obsession, and Genius in Modern China, Penguin, 336 pages, 24.95 euros.

    Hal Brands and Michael Beckley: Danger Zone

    In their book “Danger Zone – The Coming Conflict with China,” the two US-Americans, Hal Brand and Michael Beckley, suggest that China and the USA may soon go to war over Taiwan. In fact, as early as the year 2025. They explain the reasons for this in a shockingly convincing way and refer to the phenomenon of “Peak China.” The People’s Republic is now powerful enough to disrupt the existing world order. However, they believe Xi Jinping is increasingly losing confidence that time is still on China’s side. That is why he must act now, reach for Taiwan in the coming years and challenge the United States.

    This means that a “danger zone” is opening up for the world – and the West must urgently prepare itself for it. This is where Brands and Beckley are absolutely convincing. They do not hide behind pretty phrases and name clear points, problems and questions. “Danger Zone” is therefore not least clearly addressed to the political leadership in Washington. But the West as a whole must deal with the tense situation between the USA and China. After all, Europe is still comfortably sheltered under the protective wing of the US. However, should a conflict between the two world powers arise, this time would ultimately end. rad

    Hal Brands and Michael Beckley: Danger Zone – The Coming Conflict with China, Norton & Company, 304 pages, 19.50 euros.

    • KP Chinas
    Translation missing.

    Sinolytics Radar

    US investment screening with limited impact

    Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
    • On August 9, the US government released an executive order (EO) on outbound investment screening. The new controls either prohibit or require a notification for transactions such as acquisition of equity interest, joint ventures, and greenfield investments into semiconductors, quantum information, and AI.​
    • Concrete implications for industries will depend on the specificities of the final regulation. Affected industry associations, such as the U.S. Semiconductor Industry Association, are still reviewing the impacts for their member companies. ​
    • However, US capital flows into the controlled technologies had already started to dry up due to expansive export controls. VC deals with US involvement dropped to 64 so far this year, down from 179 in 2022 and 246 in 2021. An especially sharp drop can be observed in the areas of Artificial Intelligence and semiconductors.​
    • Even though the position of US direct investments in China has remained high at 129.9 billion USD as of now, growth of US investments has been slowing. US direct investment transactions in Q1 2023 fell to 3 billion USD compared to 4.3 billion USD in Q1 2022.​
    • Given the narrow scope of the current EO regulations, it will have a limited impact on US investments into China. It will also have a limited impact on China’s development in the three tech fields as most Chinese start-ups are funded by domestic capital. ​
    • However, US controls are still under discussion and might be expanded to cover a broader set of technologies. The US controls also set a benchmark for the debate within the EU around an outbound investment screening. But any European approach will, at least for now, likely be narrowly targeted at military-related technologies. ​

    Sinolytics is a European research-based consultancy entirely focused on China. It advises European companies on their strategic orientation and concrete business activities in the People’s Republic.

    News

    Expats continue to be exempt from fringe benefits tax

    Expats will remain exempt from tax on allowances paid by their companies for rent, their children’s school fees or language courses for the time being. This is according to an announcement by the government’s highest tax authority on 18 August. Originally, these individual income tax benefits were supposed to end at the end of the year. However, the Ministry of Finance extended them on Monday by four years until the end of 2027. Various business associations, including the EU Chamber of Commerce in China, welcomed the extension.

    The EU Chamber stated that it had lobbied for this issue at all levels of government. The continued tax exemption could “help halt the exodus of foreign talent” in recent years. It was “welcome news for families who have decided to come to China or stay there.”

    Especially the costs for rent and fees for their children’s international schools can amount to the equivalent of several thousand euros per month for many expats. This is why employers cover these costs for expatriates, as their time in China would otherwise not be financially worthwhile for them. Conversely, China attempts to gradually include non-cash benefits such as these in taxation, as is not uncommon in the West. ck

    Raimondo also meets Li Qiang

    US Secretary of Commerce Gina Raimondo has met with China’s Premier Li Qiang. At the meeting, she stressed that the US wanted to work with China to solve global issues such as climate change and artificial intelligence (AI). She stated the United States’ intention to collaborate with China “as two global powers to do what is right for all of humanity.”

    Li said that solid economic relations and trade cooperation between China and the US would benefit the world. The fact that Li received Raimondo is considered a success.

    In the morning, Raimondo agreed with Tourism Minister Hu Hepin to hold the 14th China-US Tourism Leadership Summit in China in the first half of next year. On Monday, the minister met with her counterpart Wang Wentao, who agreed on several working groups and dialogue formats. ck/rtr

    British Foreign Secretary Cleverly travels to Beijing

    British Foreign Secretary James Cleverly will visit Beijing on Wednesday. The visit marks the first time a British Foreign Secretary has traveled to China in over five years. The Foreign Office in Beijing confirmed the long-planned visit on Tuesday. Cleverly is expected to meet his Chinese counterpart Wang Yi and Vice-President Han Zheng.

    “The two sides will have in-depth communication on bilateral relations and international and regional issues of mutual interest,” Foreign Office spokesman Wang Wenbin said. “We hope the UK will work with China to deepen exchanges and enhance understanding in the spirit of mutual respect, so as to promote the steady development of China-UK relations.” Cleverly was originally supposed to travel to Beijing in July. However, his visit, like that of EU Foreign Affairs Commissioner Josep Borrell, was postponed amid the turmoil surrounding the disappearance of former Foreign Minister Qin Gang.

    Diplomatic relations between the two countries are at an all-time low. The situation in the former British colony of Hong Kong is a central source of conflict. Several Hong Kong activists live in exile in the UK. London also criticized human rights violations and China’s support for Russia. In June, Cleverly stated he would raise issues such as Xinjiang and Hong Kong during his visit. He also said he would ask Beijing to lift sanctions imposed on five British MPs in 2021. ari

    Volkswagen forced lower prices again

    The discount battle in the Chinese car market goes into the next round. As Nikkei Asia reports, Volkswagen offered special deals of up to 60,000 yuan (a good 7,600 euros) for nine different SUV models in August. In July, VW already considerably lowered the price of its basic electric model ID.3 – by 37,000 yuan (a good 4,500 euros) to an entry-level price starting at 125,900 yuan (just under 16,000 euros).

    The German group is by no means alone with its discount policy. The US carmaker Tesla started the price-cutting spiral in January – and again lowered the prices of several versions of its Model Y in August. And the Chinese competition has also jumped on the bandwagon. Zhejiang Leapmotor has lowered the price of an SUV by 20,000 yuan, while Geely is offering a ten percent discount on its Zeekr luxury SUV.

    The concern now is that the already uncertain consumers will further postpone their purchases in the hope of even lower prices. Therefore, China’s government attempts to persuade the sector to refrain from granting excessive discounts. fin

    • Autoindustrie
    • Tesla
    • Volkswagen

    Heads

    Yi-Wei Keng – dramaturg receives the Goethe Medal

    Yi-Wei Keng
    Carola Lentz,(l), President of the Goethe-Institut, congratulates Taiwanese curator and dramaturg Yi-Wei Keng on being awarded the Goethe Medal 2023.

    Together with the Georgian film executive Gaga Chkheidze and the curatorial collective of the OFF Biennale from Hungary, the Taiwanese dramaturg Yi-Wei Keng 一偉耿 was awarded the Goethe Medal in Weimar on Monday. The award, presented by the Goethe-Institut, honors individuals who have made a special contribution to global cultural exchange. “Yi-Wei Keng is one of the most important initiators of cultural exchange in Taiwan, especially for networking with the German theater scene,” said Carola Lentz, President of the Goethe-Institut.

    Focus on German-Taiwanese cooperation

    Yi-Wei Keng was born in 1969 and grew up in Hualien. After studying philosophy, he spent two years in Prague in 1997, where he accidentally ended up in a course for nonverbal theater. “Back in Taiwan, I worked with deaf people, so nonverbal theater was ideal. Inclusive theater didn’t even exist here at that time,” Keng said in an interview with the German newspaper taz.

    Soon after, Keng became the artistic director of the Taipei Arts Festival, where he also set standards in experimental theater, dance in public spaces, and children’s theater. In this position, he organized collaborations with theaters worldwide from 2012 to 2017, focusing on a German-Taiwanese collaboration. For instance, Yi-Wei Keng has brought shows by the Deutsches Theater Berlin, the Rimini Protokoll group, and Raumlabor Berlin, among others, to Taiwan. His thoughts can also often be found in the prefaces of translations of German novels published in Taiwan.

    Keng’s concept “Axis Taipei & International Collaboration” was not least an attempt to diplomatically represent an internationally isolated Taiwan on the political world stage using art. “Taiwan maintains hardly any official relations with other countries. Culture is therefore all the more important,” he says. Keng’s vision is for artists around the world to network and forge friendships with Taiwanese art professionals. As a side effect, they might get to know and love the island – and perhaps one day stand up for it should China invade Taiwan.

    More visibility with the help of art

    Keng worries that Taiwan could face an even worse fate than Hong Kong: “In Hong Kong, power was peacefully handed over to China. Taiwan, however, has its own military. We would face more of a situation like the one we’re seeing in Ukraine right now.” For the time being, however, Beijing would try to divide Taiwan in order to exert control.

    That is why Yi-Wei Keng wants to continue using his art to strengthen the visibility and identity of the Taiwanese people. He has been doing this since 2018 as a dramaturge at the National Kaohsiung Center for the Arts, one of the three largest theater houses on the island, where he can direct four major stages simultaneously. He is also a co-curator at the “Want to Dance” dance festival in Taipei and, starting this year, in charge of the Tainan Arts Festival in southern Taiwan. In a video contribution by the Goethe-Institut, he said that being an artist gives him a responsibility to his homeland. “I have to use my influence to get more people to notice Taiwan.” Fabian Peltsch

    Executive Moves

    Li Xinming – also known as Jeff Li– has been appointed head of China government affairs at US memory chipmaker Micron Technologies.

    Rod Ireland, head of global markets Asia-Pacific, has been promoted to interim head of RBC Wealth Management Asia. He replaces Terence Chow, who recently left the bank.

    Is something changing in your organization? Let us know at heads@table.media!

    Dessert

    Not a UFO, but a museum. Perhaps even a time machine. It will only be two months before science fiction fans in Chengdu take off in it. In October, it will be the venue for the Hugo Awards, the Oscars of science fiction and fantasy literature. For the associated event, the 81st World Science Fiction Convention Worldcon, Zaha Hadid Architects (ZHA) designed the Chengdu Science Fiction Museum. The event will be held in China for the first time.

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