Table.Briefing: China (English)

China expert Tim Walz + Vape exports

Dear reader,

All developments leading up to the US presidential election are being closely monitored in Beijing. The stance of Donald Trump and his running mate J.D. Vance on China is clear: China is “the real enemy of the USA,” Vance said shortly after his appointment. But what about the newly chosen running mate of Kamala Harris, Timothy J. Walz?

The Governor of Minnesota is a true expert on China. In 1989, he went to Guangdong to teach at a school. He has since made many trips, including to Tibet. Even his honeymoon was spent in China. Walz advocates for human rights and criticizes the Communist Party. Michael Radunski has analyzed what direction US-China policy might take under a Vice President Walz.

When “18+” is written on a product, it becomes exponentially more interesting to teenagers, especially if the product is tailored specifically for them, like vapes. These battery-operated alternatives to cigarettes come in flavors ranging from raspberry to cotton candy. According to a study by the Charité, one in four schoolchildren has tried vapes at least once.

However, these lifestyle cigarettes pose health risks. Some European countries – though not Germany – and China have banned the sale of e-cigarettes to minors. In China, flavored devices are no longer allowed to be sold.

But what about the large quantities of vapes produced in the country? You guessed it. Export! Manufacturers shipping steaming e-cigarettes overseas benefit from tax breaks and eased export controls. Fabian Peltsch has taken a closer look at what this means for consumers in Germany and what the EU is doing about it.

Your
Julia Fiedler
Image of Julia  Fiedler

Feature

Kamala Harris’ vice presidential candidate: How Tim Walz views China

The selection of Timothy J. Walz as Kamala Harris’ running mate is a deeply domestic political decision. However, aside from aspects like swing states, unions, and the white middle class, Walz’s career is also shaped by an important foreign policy point: China.

Nothing will shape future US foreign policy as much as the competition with China. And here, Tim Walz has substantial experience. He has visited China frequently and regularly, has many contacts in the People’s Republic and even speaks a bit of Mandarin. His stance and approach toward China are clear: Walz appreciates the Chinese people, seeks direct contact, criticizes the Communist Party and advocates for human rights.

What sets Walz apart from Donald Trump

In short, Walz is a friend of China but a fierce critic of the Communist Party. As early as September 1990, Walz told the Star-Herald newspaper, “If [the Chinese people] had the right leadership, their achievements would know no bounds. They are such friendly, generous, and capable people.”

This differentiation is what sets Walz apart from Donald Trump and his team. While Trump generalizes and disparages – think “China virus” – Walz knows how to distinguish. More importantly, Trump seeks closeness to autocratic rulers – willingly leaving behind the respective population, bridge builders, and value partners. Walz, on the other hand, advocates for imprisoned Nobel Peace Prize laureates like the late Liu Xiaobo and meets with Hong Kong human rights activists.

Tim Walz leverages US partners in the trade war with China

Walz knows from personal experience the impact a confrontational China policy can have on the US population. When he was elected governor of Minnesota in November 2018, China imposed retaliatory tariffs on US soybeans. The problem for Walz: Minnesota’s main exports are soybeans and pork, most of which go to China.

In response, he criticized Trump’s erratic trade policy. Additionally, Walz traveled with a US delegation to South Korea and Japan to strengthen trade relations with these countries. And the success speaks for itself: During his tenure as governor, the number of Japanese companies in Minnesota increased by 50 percent.

For human rights in Hong Kong and Tibet

Another aspect close to Walz’s heart is human rights. From 2007 to 2016, Walz was a member of the Congressional-Executive Commission on China, a body addressing human rights and rule of law in China. Walz traveled to Tibet in 1990 and again in 2016.

In a hearing, he emphasized the importance of closely monitoring developments there: “The increased economic growth, higher household incomes and railway projects have enabled rapid modernization of the Tibet Autonomous Region. However, we must continue constructive dialogues with China to ensure the preservation of traditional Tibetan culture and Tibet’s fragile ecology.”

Here too, Walz continually seeks direct engagement, meeting with Chinese human rights activists like Hong Kong democracy activist Joshua Wong or the Dalai Lama, Tibet’s exiled spiritual leader, in 2016.

US consensus: Hard stance on China

One should not be under any illusions: A US Vice President inherently has limited influence on the country’s political direction. Additionally, Tim Walz will not break the bipartisan consensus on a tough stance towards China – neither could he nor does he want to.

But Walz differentiates. He criticizes where necessary but also seeks collaboration. “We must work with China on issues like climate change and agricultural production, but I am disappointed with China’s recent actions – in the Ukraine issue, they side with Russia,” he told the Japanese newspaper Nikkei Asia last year.

1989: Walz goes to China despite Tiananmen

To understand how Tim Walz developed his stance on China, one must look back to 1989 when he went to China shortly after earning his bachelor’s degree to teach English at Foshan No.1 High School for a year. At that time, the leadership in Beijing brutally suppressed the protests around Tiananmen Square, prompting many Americans to leave China.

However, Walz chose the opposite direction. “I thought it was more important than ever to go there… to ensure that this story is told and to let the Chinese know that we were there, that we were on their side.” Walz maintains the connection. Together with his wife, he founded a summer exchange program with China and has traveled to China every year for more than two decades with dozens of US students – even during his honeymoon with his wife Gwen. Their wedding anniversary is marked by that time in China. He wanted a day to remember, Walz says. It is June 4.

  • Climate & Environment
  • Donald Trump
  • Geopolitics
  • Tibet
Translation missing.

Cheap vapes: How China dominates the global market while banning e-cigarettes at home

“Smoking is cool again,” reported media like FAZ and the Redaktionsnetzwerk Deutschland in recent months. They weren’t talking about the old-school cigarette but vapes, small devices powered by lithium-ion batteries that heat and vaporize nicotine-infused liquid. China is the largest producer of these so-called e-cigarettes – more than 90 percent of global exports come from there.

Last year, the total export value from China reached 111 billion dollars, a 13 percent increase compared to the previous year. Most of the shipments went to the USA, the UK, and thirdly to Germany, where industry estimates suggest five million disposable vapes are sold per month.

Even though manufacturers deny it and officially adhere to the “18 and over” rule, it’s clear that teenagers are being targeted, much like with alcopop drinks in the past. The colorful packaging, advertising deals with trendy rappers, and flavors like raspberry, cherry and cotton candy speak for themselves. Vapes are now easily accessible in supermarkets, kiosks and snack machines, right next to Snickers bars and Coca-Cola.

Since 2021, the consumption of e-cigarettes or vapes has significantly increased, reported the Berlin Charité hospital earlier this year. About one in four schoolchildren has tried e-cigarettes. Long-term studies on the health risks are not available.

However, the health risks of these devices seem evident. In some European countries, vapes are already banned for youth protection reasons, such as in Denmark and Hungary. In Germany, the narrative from providers still holds that vaping can help people quit traditional cigarettes.

Beijing facilitates exports

In China, the country that is flooding the world with vapes, they are interestingly strictly regulated. In 2019, the government in China banned the sale of e-cigarettes to minors, which today also means that they can no longer be sold in vending machines or near schools. In 2022, the “mandatory national standard for electronic cigarettes” came into force.

It stipulates that the nicotine concentration in electronic cigarettes is strongly capped. E-cigarettes with flavors are no longer allowed to be sold at all. If you search for electronic cigarettes on e-commerce platforms like Pinduoduo, the initial result will show a message stating, “Smoking harms your health.” However, with the right keywords, they can still be found online without much trouble.

Critics say the bans are not only about public health but also involve a conflict of interest. Beijing has a state cigarette monopoly, which accounts for 8.7 percent of domestic tax revenue. Due to the regulations introduced in 2022, e-cigarettes are now also subject to a corresponding consumption tax. The strict rules on sales and advertising have simultaneously led to a collapse in the Chinese market for vapes.

As a result, providers have significantly shifted their focus to exports. The Chinese government supports this shift. Authorities have placed some Chinese vaping companies on a “white list”, allowing fewer export controls at certain airports. New taxes that apply to domestic retailers do not affect e-cigarette manufacturers who exclusively serve overseas markets.

German comedian Jan Boehmermann even drew historical parallels in a TV segment, likening it to the British opium trade in the 19th century, where the colonial power exported the strictly banned addictive substance to China in massive quantities. Untaxed and counterfeit vapes from China are also becoming a global problem. In Germany, for instance, only vapes with up to 600 puffs per device are legal. However, on the black market, untaxed disposable e-cigarettes from China with up to 15,000 puffs per vape are available.

The king of ‘Vape Valley’

The market leader in exports is Heaven Gifts, which sells its disposable vapes under brand names like Elfbar, EBDesign and Lost Mary. Behind Heaven Gifts is the company iMiracle Technology, founded in 2007 by Zhang Shengwei. Zhang is a veteran in the vaping world. As early as the early 2000s, he was exporting e-cigarettes from his Shanghai apartment for the Hong Kong brand Ruyan, the first e-cigarette for the mass market.

In 2014, Heaven Gifts moved to Shenzhen, the “Vape Valley” of China. Here, supply chains are short. From batteries to mouthpieces to nicotine liquid, everything can be assembled and shipped in highly automated production facilities on site. According to its own statements, a single Elfbar factory can produce up to one million vapes per day.

Recently, the trend has shifted to so-called smart vapes, high-tech versions promising even more distinction with screens and LED lights. Some devices are even compatible with simple animations and video games like Pac-Man. The dynamic is similar to the automotive industry: to drive the old cigarette, essentially the combustion engine, out of the market, China relies on high-tech and entertainment.

Whether these devices will be approved in Europe is questionable, as they generate even more electronic waste. The EU plans to ban disposable vapes in their current form by 2027. The demand is that the lithium-ion batteries must be removable so they can be properly recycled at designated collection points. However, it is also doubtful whether consumers will make this effort.

  • Batterien
  • Gesundheit

News

Economy: Where exports fall short of expectations

China’s exports grew by seven percent in July compared to the same month last year, according to new data released on Wednesday. In June, exports had increased by 8.6 percent. Economists surveyed by Reuters had actually predicted a further acceleration to 9.7 percent for July. Imports rose by 7.2 percent, after a 2.3 percent decline in June, also exceeding analysts’ expectations of a 3.5 percent increase.

The increase in imports is largely attributed to the heightened demand for semiconductors by Chinese companies. Many managers feared further reductions in US chip exports. Chinese tech companies such as Huawei and Baidu, as well as start-ups, have therefore ramped up their purchases of high-bandwidth memory semiconductors. Due to the announced US restrictions on chip exports to China, companies are also stocking up on chips from third countries, such as those from Samsung.

While trade between the EU and China fell by 3.8 percent between January and July, according to customs data released on Wednesday, imports from the Netherlands continued to rise – up by 24 percent over the same period. This is due to growing export restrictions on Dutch chip equipment manufacturer ASML, prompting Chinese companies to hoard such equipment.

Both imports and exports could weaken in the third quarter, according to analysts. “Given the slowing foreign demand and new tariffs, exports will face greater pressure in the second half of 2024,” said ING economist Lynn Song. China’s economy has struggled to regain momentum since the COVID-19 crisis. It grew by 4.7 percent in the second quarter, falling short of expectations. Beijing might, therefore, consider new support measures. The government has set a growth target of around five percent for the entire year. rtr

  • Exporte

Evergrande Auto: Why the company is laying off all employees

The electric crossover Hengchi 5: The automotive division of Evergrande has dismissed all remaining employees and must declare bankruptcy.

Evergrande Auto, the automotive arm of China Evergrande Group, has laid off all remaining employees, according to reports from Car News China. Most of these were contract workers with over a year left on their contracts. The company had already halted production at the end of last year and reduced its workforce from 6,000 to fewer than 500 employees at that time.

On Monday, it was announced that Evergrande Auto must declare bankruptcy and restructure following a court order. In July, Evergrande Auto revealed that its subsidiaries, Evergrande New Energy Vehicle and Evergrande Smart Vehicle, had filed for bankruptcy. Executive directors Liu Yongzhou and Qin Liyong were dismissed, with investigations into unspecified criminal activities against Liu initiated in January. Over the past five years, the company has accrued losses amounting to up to 14 billion euros.

Evergrande Auto produced only a few cars

Evergrande Auto has had a turbulent few years. In 2020, the company introduced a series of concept vehicles under the Hengchi brand and planned to begin mass production in 2021. The goal was to sell one million electric cars by 2025.

However, when the parent company Evergrande Group, once the world’s most valuable real estate company, faced financial troubles in 2021, the automotive division was initially set to be sold. A deal with Xiaomi fell through. Despite this, in 2022, the first vehicle, the electric crossover Hengchi 5, went into production. Due to poor sales, production was repeatedly halted. In the end, only 1,700 Hengchi electric cars were built. In May of this year, it was again suggested that a potential buyer might acquire a 29 percent stake in Evergrande Auto. This now appears to be off the table.

Due to non-fulfillment of contractual obligations, Evergrande Auto faces significant payments. Local authorities have demanded that the company repay approximately 240 million euros in subsidies it received from local governments. The company also risks the seizure of land, buildings, and equipment at its Tianjian plant, acquired through government incentives. The real estate giant Evergrande Group has been in liquidation since January 2024. jul

  • E-Autos
  • Evergrande
  • Evergrande

De-risking: Where HP is relocating its production

HP intends to shift over 50 percent of its PC production away from China, as reported by Nikkei Asia. The US company aims to produce up to 70 percent of its notebooks outside of China in the future. HP is the second-largest PC manufacturer, after Lenovo.

The decision is prompted by geopolitical risks. HP is reportedly in discussions with suppliers; at least five suppliers are already setting up new sites and distribution centers in Thailand or expanding their existing capacities in the country. Additionally, HP is apparently establishing a design hub in Singapore and is hiring engineers and managers there. This location is intended to serve as a backup for the Taiwan Design Center, which currently develops most of the new products.

“HP is hiring around two hundred additional engineers and specialists, including electrical and mechanical engineers as well as supply chain experts,” Nikkei Asia quotes a source with direct knowledge of the matter. “The move is a risk mitigation measure to avoid extreme scenarios related to a potential conflict between Taiwan and China.” jul

  • De-Risking

Doping: Why WADA does little against China

Hajo Seppelt
Doping expert Hajo Seppelt.

According to ARD doping expert Hajo Seppelt, geopolitical and strategic considerations are increasingly influencing the actions of the International Olympic Committee (IOC) and the World Anti-Doping Agency (WADA) concerning doping allegations: “China is now a global player in international sports,” Seppelt says in the Table.Today podcast. Major sponsors are also increasingly coming from the Far East.

ARD doping investigation revealed in April that 23 Chinese swimmers tested positive for a heart medication at a national competition in 2021. However, the Chinese Anti-Doping Agency (CHINADA) did not issue any bans. WADA accepted a CHINADA report without conducting its own investigation, which attributed the positive tests to food contamination in a hotel kitchen. Several of these athletes have since competed in the Paris Olympic Games and won gold medals.

Do the suspicions of Chinese doping overshadow the Games? “I would only partially agree with that,” says the doping expert, adding that not many doping cases have been uncovered during the Games themselves. Often, the athletes involved are not in the forefront: “There are people who claim that anyone who dopes at the Olympics must be quite naive.” Doping is more beneficial during the training phase before the Games to enhance performance.

In his view, the IOC has little interest in tackling the doping problem vigorously: “There are a few scattered individuals who are serious about fighting doping.” Often, the focus is more on protecting the image and reputation of sports organizations rather than addressing the issue. An open approach to doping could be damaging to business and deter sponsors. ari

  • Sport
Translation missing.

Opinion

Front against freedom: Xi and Putin are more similar than it seems

By Adrian Geiges
Adrian Geiges was a correspondent in Moscow and Beijing for many years. He is the author of the newly released book “Front gegen die Freiheit” (“Front against freedom”) about Chinese-Russian relations.

Myths persist for a long time, such as the belief that the People’s Republic of China is very different from today’s Russia and that the two only cooperate for tactical reasons. This view may be influenced by the historical fact that under Mao, China was first an ally and then a rival of the Soviet Union. In 1969, they even fought an armed border conflict. However, even then, they followed the same ideology, only arguing about who should lead the world revolution – the Soviet Union as the first socialist country or China as the most populous country.

Today, the leadership question has been decided in favor of the People’s Republic, primarily due to its economic power. At the same time, the two countries are more closely allied than ever. “At the moment, we are seeing changes that we haven’t seen in 100 years,” Xi Jinping told Vladimir Putin at their meeting in Moscow on March 21, 2023. “And we are the ones driving this change together.” The attack on Ukraine and the threats against Taiwan are part of this “change”.

But that has nothing to do with communism anymore, some might say. Really? Under Xi Jinping, the role of the Communist Party has further increased, with party cells involved in all strategic business decisions and ideological indoctrination in schools and universities intensifying. In Russia today, one hears more about orthodox religion than orthodox communism. However, the leadership around Putin comes from the KGB, which originated from Lenin’s state terror organization, the Cheka. The secret service members say about themselves: “Once a Chekist, always a Chekist.” Today, Dec. 20 is again celebrated in Russia as “Chekist Day” in memory of the founding of the Cheka on Dec. 20, 1917. Their main principle: Never to give up the power once gained.

Russia and China – more similar than it seems

And this is also much more important for the Communist Party of China than the question of how much or how little private property there is in the economy. Thus, it follows Lenin, who invited entrepreneurs to invest with his New Economic Policy (1921-1928). He spoke of “private capitalism in the role of an aid to socialism”. Then as now, it is about a strong common front against “imperialism”, meaning the USA and the former European colonial powers.

Putin also sees himself in the tradition of the Soviet Union, which, according to the Kremlin ruler, “led the anti-colonial movement of the world in the 20th century”. Xi Jinping also styles himself as a leader of the “Global South” and partly already is, with growing alliances like BRICS and the Shanghai Cooperation Organization. He often talks about the Opium Wars of 1839-1842 and 1856-1860, when colonial powers committed terrible crimes, which is rightly remembered, and every Chinese child knows about it. The problem is that one learns nothing in Chinese schools or mass media about much more recent crimes like the Cultural Revolution (1966-1976) and the Tiananmen Square Massacre (1989).

Putin and Xi have much in common

In addition to deep historical and ideological roots, they have personal similarities. Vladimir Putin was born on Oct. 7, 1952, in Leningrad, Xi Jinping on June 15, 1953, in Beijing. They are almost the same age and spent their childhood in socialist metropolises. Their backgrounds differ at first glance but also show parallels. Putin’s father was a factory worker in a wagon-building plant, while Xi’s father served as a vice premier. Both fathers were members of their countries’ communist parties (as their sons would later become). Putin himself claims that his grandfather was a cook for Lenin and Stalin.

Xi Jinping‘s father fell out of favor, was deposed, arrested and imprisoned when Xi was nine years old. The young Xi also spent time in prison and was banished to the countryside at 15, like other urban youth of his generation, living in a cave. Meanwhile, Putin lived in a 20-square-meter room with his parents in a typical Soviet communal apartment, sharing the kitchen and bathroom with neighbors. His two older brothers died in childhood. Xi Jinping’s half-sister took her own life during the Cultural Revolution. Xi applied for membership in the Communist Party ten times, repeatedly being rejected until he was finally accepted.

Putin and Xi – humiliated and ambitious

Putin experienced something similar. He didn’t even make it into the Lenin Pioneers, a youth organization, because he fought with other boys. Nonetheless, at 15, he went to the Leningrad KGB building and asked the duty officer how he could become a spy. The officer told him they didn’t need volunteers; they recruited suitable candidates themselves, usually after military service or university. “And which courses are particularly preferred?” young Putin asked. The officer recommended law, which Putin then studied.

Both Xi Jinping and Putin felt humiliated in their childhood and youth. Both drew the same conclusion: to adapt especially well to the system and pursue a career, Putin in the KGB (later FSB) and Xi in the Communist Party. And they did so with comparable persistence. When they came to power, they were considered unknown quantities. But then they quickly eliminated all real or potential opponents, Putin with a campaign against oligarchs and Xi with a campaign against corruption. For this reason alone, they trust each other and distrust politicians in free countries who have risen through democratic competition.

This text is partly based on the newly released book: Adrian Geiges, “Front gegen die Freiheit” (“Front against freedom”): Beijing, Moscow, and Their Accomplices Worldwide, Piper Verlag Munich.

  • KP Chinas

Executive Moves

Elisa Hoerhager has headed the BDI representation in Beijing as Chief Representative since the beginning of August. She previously worked as a diplomat at the Federal Foreign Office.

Norbert Riedel is to become the new German Consul General in Shanghai. He will take up his post in the fall. Riedel is currently the German ambassador in Singapore.

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

Dessert

The Yang Xiao Chu 杨小厨 restaurant in Paris’s 15th arrondissement has become a popular meeting spot for Chinese Olympic athletes. Not far from the table tennis venues, owner Tang Zhongqiu serves spicy soups and hotpot that are eagerly enjoyed by table tennis stars such as Ding Ning and Liu Guozheng. In recent weeks, queues have formed outside the small restaurant, partly due to the large number of Chinese tourists currently visiting Paris. Yuan Jia Nan, a table tennis icon born in China but now a French citizen, is also a regular patron of the establishment.

China.Table editorial team

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    All developments leading up to the US presidential election are being closely monitored in Beijing. The stance of Donald Trump and his running mate J.D. Vance on China is clear: China is “the real enemy of the USA,” Vance said shortly after his appointment. But what about the newly chosen running mate of Kamala Harris, Timothy J. Walz?

    The Governor of Minnesota is a true expert on China. In 1989, he went to Guangdong to teach at a school. He has since made many trips, including to Tibet. Even his honeymoon was spent in China. Walz advocates for human rights and criticizes the Communist Party. Michael Radunski has analyzed what direction US-China policy might take under a Vice President Walz.

    When “18+” is written on a product, it becomes exponentially more interesting to teenagers, especially if the product is tailored specifically for them, like vapes. These battery-operated alternatives to cigarettes come in flavors ranging from raspberry to cotton candy. According to a study by the Charité, one in four schoolchildren has tried vapes at least once.

    However, these lifestyle cigarettes pose health risks. Some European countries – though not Germany – and China have banned the sale of e-cigarettes to minors. In China, flavored devices are no longer allowed to be sold.

    But what about the large quantities of vapes produced in the country? You guessed it. Export! Manufacturers shipping steaming e-cigarettes overseas benefit from tax breaks and eased export controls. Fabian Peltsch has taken a closer look at what this means for consumers in Germany and what the EU is doing about it.

    Your
    Julia Fiedler
    Image of Julia  Fiedler

    Feature

    Kamala Harris’ vice presidential candidate: How Tim Walz views China

    The selection of Timothy J. Walz as Kamala Harris’ running mate is a deeply domestic political decision. However, aside from aspects like swing states, unions, and the white middle class, Walz’s career is also shaped by an important foreign policy point: China.

    Nothing will shape future US foreign policy as much as the competition with China. And here, Tim Walz has substantial experience. He has visited China frequently and regularly, has many contacts in the People’s Republic and even speaks a bit of Mandarin. His stance and approach toward China are clear: Walz appreciates the Chinese people, seeks direct contact, criticizes the Communist Party and advocates for human rights.

    What sets Walz apart from Donald Trump

    In short, Walz is a friend of China but a fierce critic of the Communist Party. As early as September 1990, Walz told the Star-Herald newspaper, “If [the Chinese people] had the right leadership, their achievements would know no bounds. They are such friendly, generous, and capable people.”

    This differentiation is what sets Walz apart from Donald Trump and his team. While Trump generalizes and disparages – think “China virus” – Walz knows how to distinguish. More importantly, Trump seeks closeness to autocratic rulers – willingly leaving behind the respective population, bridge builders, and value partners. Walz, on the other hand, advocates for imprisoned Nobel Peace Prize laureates like the late Liu Xiaobo and meets with Hong Kong human rights activists.

    Tim Walz leverages US partners in the trade war with China

    Walz knows from personal experience the impact a confrontational China policy can have on the US population. When he was elected governor of Minnesota in November 2018, China imposed retaliatory tariffs on US soybeans. The problem for Walz: Minnesota’s main exports are soybeans and pork, most of which go to China.

    In response, he criticized Trump’s erratic trade policy. Additionally, Walz traveled with a US delegation to South Korea and Japan to strengthen trade relations with these countries. And the success speaks for itself: During his tenure as governor, the number of Japanese companies in Minnesota increased by 50 percent.

    For human rights in Hong Kong and Tibet

    Another aspect close to Walz’s heart is human rights. From 2007 to 2016, Walz was a member of the Congressional-Executive Commission on China, a body addressing human rights and rule of law in China. Walz traveled to Tibet in 1990 and again in 2016.

    In a hearing, he emphasized the importance of closely monitoring developments there: “The increased economic growth, higher household incomes and railway projects have enabled rapid modernization of the Tibet Autonomous Region. However, we must continue constructive dialogues with China to ensure the preservation of traditional Tibetan culture and Tibet’s fragile ecology.”

    Here too, Walz continually seeks direct engagement, meeting with Chinese human rights activists like Hong Kong democracy activist Joshua Wong or the Dalai Lama, Tibet’s exiled spiritual leader, in 2016.

    US consensus: Hard stance on China

    One should not be under any illusions: A US Vice President inherently has limited influence on the country’s political direction. Additionally, Tim Walz will not break the bipartisan consensus on a tough stance towards China – neither could he nor does he want to.

    But Walz differentiates. He criticizes where necessary but also seeks collaboration. “We must work with China on issues like climate change and agricultural production, but I am disappointed with China’s recent actions – in the Ukraine issue, they side with Russia,” he told the Japanese newspaper Nikkei Asia last year.

    1989: Walz goes to China despite Tiananmen

    To understand how Tim Walz developed his stance on China, one must look back to 1989 when he went to China shortly after earning his bachelor’s degree to teach English at Foshan No.1 High School for a year. At that time, the leadership in Beijing brutally suppressed the protests around Tiananmen Square, prompting many Americans to leave China.

    However, Walz chose the opposite direction. “I thought it was more important than ever to go there… to ensure that this story is told and to let the Chinese know that we were there, that we were on their side.” Walz maintains the connection. Together with his wife, he founded a summer exchange program with China and has traveled to China every year for more than two decades with dozens of US students – even during his honeymoon with his wife Gwen. Their wedding anniversary is marked by that time in China. He wanted a day to remember, Walz says. It is June 4.

    • Climate & Environment
    • Donald Trump
    • Geopolitics
    • Tibet
    Translation missing.

    Cheap vapes: How China dominates the global market while banning e-cigarettes at home

    “Smoking is cool again,” reported media like FAZ and the Redaktionsnetzwerk Deutschland in recent months. They weren’t talking about the old-school cigarette but vapes, small devices powered by lithium-ion batteries that heat and vaporize nicotine-infused liquid. China is the largest producer of these so-called e-cigarettes – more than 90 percent of global exports come from there.

    Last year, the total export value from China reached 111 billion dollars, a 13 percent increase compared to the previous year. Most of the shipments went to the USA, the UK, and thirdly to Germany, where industry estimates suggest five million disposable vapes are sold per month.

    Even though manufacturers deny it and officially adhere to the “18 and over” rule, it’s clear that teenagers are being targeted, much like with alcopop drinks in the past. The colorful packaging, advertising deals with trendy rappers, and flavors like raspberry, cherry and cotton candy speak for themselves. Vapes are now easily accessible in supermarkets, kiosks and snack machines, right next to Snickers bars and Coca-Cola.

    Since 2021, the consumption of e-cigarettes or vapes has significantly increased, reported the Berlin Charité hospital earlier this year. About one in four schoolchildren has tried e-cigarettes. Long-term studies on the health risks are not available.

    However, the health risks of these devices seem evident. In some European countries, vapes are already banned for youth protection reasons, such as in Denmark and Hungary. In Germany, the narrative from providers still holds that vaping can help people quit traditional cigarettes.

    Beijing facilitates exports

    In China, the country that is flooding the world with vapes, they are interestingly strictly regulated. In 2019, the government in China banned the sale of e-cigarettes to minors, which today also means that they can no longer be sold in vending machines or near schools. In 2022, the “mandatory national standard for electronic cigarettes” came into force.

    It stipulates that the nicotine concentration in electronic cigarettes is strongly capped. E-cigarettes with flavors are no longer allowed to be sold at all. If you search for electronic cigarettes on e-commerce platforms like Pinduoduo, the initial result will show a message stating, “Smoking harms your health.” However, with the right keywords, they can still be found online without much trouble.

    Critics say the bans are not only about public health but also involve a conflict of interest. Beijing has a state cigarette monopoly, which accounts for 8.7 percent of domestic tax revenue. Due to the regulations introduced in 2022, e-cigarettes are now also subject to a corresponding consumption tax. The strict rules on sales and advertising have simultaneously led to a collapse in the Chinese market for vapes.

    As a result, providers have significantly shifted their focus to exports. The Chinese government supports this shift. Authorities have placed some Chinese vaping companies on a “white list”, allowing fewer export controls at certain airports. New taxes that apply to domestic retailers do not affect e-cigarette manufacturers who exclusively serve overseas markets.

    German comedian Jan Boehmermann even drew historical parallels in a TV segment, likening it to the British opium trade in the 19th century, where the colonial power exported the strictly banned addictive substance to China in massive quantities. Untaxed and counterfeit vapes from China are also becoming a global problem. In Germany, for instance, only vapes with up to 600 puffs per device are legal. However, on the black market, untaxed disposable e-cigarettes from China with up to 15,000 puffs per vape are available.

    The king of ‘Vape Valley’

    The market leader in exports is Heaven Gifts, which sells its disposable vapes under brand names like Elfbar, EBDesign and Lost Mary. Behind Heaven Gifts is the company iMiracle Technology, founded in 2007 by Zhang Shengwei. Zhang is a veteran in the vaping world. As early as the early 2000s, he was exporting e-cigarettes from his Shanghai apartment for the Hong Kong brand Ruyan, the first e-cigarette for the mass market.

    In 2014, Heaven Gifts moved to Shenzhen, the “Vape Valley” of China. Here, supply chains are short. From batteries to mouthpieces to nicotine liquid, everything can be assembled and shipped in highly automated production facilities on site. According to its own statements, a single Elfbar factory can produce up to one million vapes per day.

    Recently, the trend has shifted to so-called smart vapes, high-tech versions promising even more distinction with screens and LED lights. Some devices are even compatible with simple animations and video games like Pac-Man. The dynamic is similar to the automotive industry: to drive the old cigarette, essentially the combustion engine, out of the market, China relies on high-tech and entertainment.

    Whether these devices will be approved in Europe is questionable, as they generate even more electronic waste. The EU plans to ban disposable vapes in their current form by 2027. The demand is that the lithium-ion batteries must be removable so they can be properly recycled at designated collection points. However, it is also doubtful whether consumers will make this effort.

    • Batterien
    • Gesundheit

    News

    Economy: Where exports fall short of expectations

    China’s exports grew by seven percent in July compared to the same month last year, according to new data released on Wednesday. In June, exports had increased by 8.6 percent. Economists surveyed by Reuters had actually predicted a further acceleration to 9.7 percent for July. Imports rose by 7.2 percent, after a 2.3 percent decline in June, also exceeding analysts’ expectations of a 3.5 percent increase.

    The increase in imports is largely attributed to the heightened demand for semiconductors by Chinese companies. Many managers feared further reductions in US chip exports. Chinese tech companies such as Huawei and Baidu, as well as start-ups, have therefore ramped up their purchases of high-bandwidth memory semiconductors. Due to the announced US restrictions on chip exports to China, companies are also stocking up on chips from third countries, such as those from Samsung.

    While trade between the EU and China fell by 3.8 percent between January and July, according to customs data released on Wednesday, imports from the Netherlands continued to rise – up by 24 percent over the same period. This is due to growing export restrictions on Dutch chip equipment manufacturer ASML, prompting Chinese companies to hoard such equipment.

    Both imports and exports could weaken in the third quarter, according to analysts. “Given the slowing foreign demand and new tariffs, exports will face greater pressure in the second half of 2024,” said ING economist Lynn Song. China’s economy has struggled to regain momentum since the COVID-19 crisis. It grew by 4.7 percent in the second quarter, falling short of expectations. Beijing might, therefore, consider new support measures. The government has set a growth target of around five percent for the entire year. rtr

    • Exporte

    Evergrande Auto: Why the company is laying off all employees

    The electric crossover Hengchi 5: The automotive division of Evergrande has dismissed all remaining employees and must declare bankruptcy.

    Evergrande Auto, the automotive arm of China Evergrande Group, has laid off all remaining employees, according to reports from Car News China. Most of these were contract workers with over a year left on their contracts. The company had already halted production at the end of last year and reduced its workforce from 6,000 to fewer than 500 employees at that time.

    On Monday, it was announced that Evergrande Auto must declare bankruptcy and restructure following a court order. In July, Evergrande Auto revealed that its subsidiaries, Evergrande New Energy Vehicle and Evergrande Smart Vehicle, had filed for bankruptcy. Executive directors Liu Yongzhou and Qin Liyong were dismissed, with investigations into unspecified criminal activities against Liu initiated in January. Over the past five years, the company has accrued losses amounting to up to 14 billion euros.

    Evergrande Auto produced only a few cars

    Evergrande Auto has had a turbulent few years. In 2020, the company introduced a series of concept vehicles under the Hengchi brand and planned to begin mass production in 2021. The goal was to sell one million electric cars by 2025.

    However, when the parent company Evergrande Group, once the world’s most valuable real estate company, faced financial troubles in 2021, the automotive division was initially set to be sold. A deal with Xiaomi fell through. Despite this, in 2022, the first vehicle, the electric crossover Hengchi 5, went into production. Due to poor sales, production was repeatedly halted. In the end, only 1,700 Hengchi electric cars were built. In May of this year, it was again suggested that a potential buyer might acquire a 29 percent stake in Evergrande Auto. This now appears to be off the table.

    Due to non-fulfillment of contractual obligations, Evergrande Auto faces significant payments. Local authorities have demanded that the company repay approximately 240 million euros in subsidies it received from local governments. The company also risks the seizure of land, buildings, and equipment at its Tianjian plant, acquired through government incentives. The real estate giant Evergrande Group has been in liquidation since January 2024. jul

    • E-Autos
    • Evergrande
    • Evergrande

    De-risking: Where HP is relocating its production

    HP intends to shift over 50 percent of its PC production away from China, as reported by Nikkei Asia. The US company aims to produce up to 70 percent of its notebooks outside of China in the future. HP is the second-largest PC manufacturer, after Lenovo.

    The decision is prompted by geopolitical risks. HP is reportedly in discussions with suppliers; at least five suppliers are already setting up new sites and distribution centers in Thailand or expanding their existing capacities in the country. Additionally, HP is apparently establishing a design hub in Singapore and is hiring engineers and managers there. This location is intended to serve as a backup for the Taiwan Design Center, which currently develops most of the new products.

    “HP is hiring around two hundred additional engineers and specialists, including electrical and mechanical engineers as well as supply chain experts,” Nikkei Asia quotes a source with direct knowledge of the matter. “The move is a risk mitigation measure to avoid extreme scenarios related to a potential conflict between Taiwan and China.” jul

    • De-Risking

    Doping: Why WADA does little against China

    Hajo Seppelt
    Doping expert Hajo Seppelt.

    According to ARD doping expert Hajo Seppelt, geopolitical and strategic considerations are increasingly influencing the actions of the International Olympic Committee (IOC) and the World Anti-Doping Agency (WADA) concerning doping allegations: “China is now a global player in international sports,” Seppelt says in the Table.Today podcast. Major sponsors are also increasingly coming from the Far East.

    ARD doping investigation revealed in April that 23 Chinese swimmers tested positive for a heart medication at a national competition in 2021. However, the Chinese Anti-Doping Agency (CHINADA) did not issue any bans. WADA accepted a CHINADA report without conducting its own investigation, which attributed the positive tests to food contamination in a hotel kitchen. Several of these athletes have since competed in the Paris Olympic Games and won gold medals.

    Do the suspicions of Chinese doping overshadow the Games? “I would only partially agree with that,” says the doping expert, adding that not many doping cases have been uncovered during the Games themselves. Often, the athletes involved are not in the forefront: “There are people who claim that anyone who dopes at the Olympics must be quite naive.” Doping is more beneficial during the training phase before the Games to enhance performance.

    In his view, the IOC has little interest in tackling the doping problem vigorously: “There are a few scattered individuals who are serious about fighting doping.” Often, the focus is more on protecting the image and reputation of sports organizations rather than addressing the issue. An open approach to doping could be damaging to business and deter sponsors. ari

    • Sport
    Translation missing.

    Opinion

    Front against freedom: Xi and Putin are more similar than it seems

    By Adrian Geiges
    Adrian Geiges was a correspondent in Moscow and Beijing for many years. He is the author of the newly released book “Front gegen die Freiheit” (“Front against freedom”) about Chinese-Russian relations.

    Myths persist for a long time, such as the belief that the People’s Republic of China is very different from today’s Russia and that the two only cooperate for tactical reasons. This view may be influenced by the historical fact that under Mao, China was first an ally and then a rival of the Soviet Union. In 1969, they even fought an armed border conflict. However, even then, they followed the same ideology, only arguing about who should lead the world revolution – the Soviet Union as the first socialist country or China as the most populous country.

    Today, the leadership question has been decided in favor of the People’s Republic, primarily due to its economic power. At the same time, the two countries are more closely allied than ever. “At the moment, we are seeing changes that we haven’t seen in 100 years,” Xi Jinping told Vladimir Putin at their meeting in Moscow on March 21, 2023. “And we are the ones driving this change together.” The attack on Ukraine and the threats against Taiwan are part of this “change”.

    But that has nothing to do with communism anymore, some might say. Really? Under Xi Jinping, the role of the Communist Party has further increased, with party cells involved in all strategic business decisions and ideological indoctrination in schools and universities intensifying. In Russia today, one hears more about orthodox religion than orthodox communism. However, the leadership around Putin comes from the KGB, which originated from Lenin’s state terror organization, the Cheka. The secret service members say about themselves: “Once a Chekist, always a Chekist.” Today, Dec. 20 is again celebrated in Russia as “Chekist Day” in memory of the founding of the Cheka on Dec. 20, 1917. Their main principle: Never to give up the power once gained.

    Russia and China – more similar than it seems

    And this is also much more important for the Communist Party of China than the question of how much or how little private property there is in the economy. Thus, it follows Lenin, who invited entrepreneurs to invest with his New Economic Policy (1921-1928). He spoke of “private capitalism in the role of an aid to socialism”. Then as now, it is about a strong common front against “imperialism”, meaning the USA and the former European colonial powers.

    Putin also sees himself in the tradition of the Soviet Union, which, according to the Kremlin ruler, “led the anti-colonial movement of the world in the 20th century”. Xi Jinping also styles himself as a leader of the “Global South” and partly already is, with growing alliances like BRICS and the Shanghai Cooperation Organization. He often talks about the Opium Wars of 1839-1842 and 1856-1860, when colonial powers committed terrible crimes, which is rightly remembered, and every Chinese child knows about it. The problem is that one learns nothing in Chinese schools or mass media about much more recent crimes like the Cultural Revolution (1966-1976) and the Tiananmen Square Massacre (1989).

    Putin and Xi have much in common

    In addition to deep historical and ideological roots, they have personal similarities. Vladimir Putin was born on Oct. 7, 1952, in Leningrad, Xi Jinping on June 15, 1953, in Beijing. They are almost the same age and spent their childhood in socialist metropolises. Their backgrounds differ at first glance but also show parallels. Putin’s father was a factory worker in a wagon-building plant, while Xi’s father served as a vice premier. Both fathers were members of their countries’ communist parties (as their sons would later become). Putin himself claims that his grandfather was a cook for Lenin and Stalin.

    Xi Jinping‘s father fell out of favor, was deposed, arrested and imprisoned when Xi was nine years old. The young Xi also spent time in prison and was banished to the countryside at 15, like other urban youth of his generation, living in a cave. Meanwhile, Putin lived in a 20-square-meter room with his parents in a typical Soviet communal apartment, sharing the kitchen and bathroom with neighbors. His two older brothers died in childhood. Xi Jinping’s half-sister took her own life during the Cultural Revolution. Xi applied for membership in the Communist Party ten times, repeatedly being rejected until he was finally accepted.

    Putin and Xi – humiliated and ambitious

    Putin experienced something similar. He didn’t even make it into the Lenin Pioneers, a youth organization, because he fought with other boys. Nonetheless, at 15, he went to the Leningrad KGB building and asked the duty officer how he could become a spy. The officer told him they didn’t need volunteers; they recruited suitable candidates themselves, usually after military service or university. “And which courses are particularly preferred?” young Putin asked. The officer recommended law, which Putin then studied.

    Both Xi Jinping and Putin felt humiliated in their childhood and youth. Both drew the same conclusion: to adapt especially well to the system and pursue a career, Putin in the KGB (later FSB) and Xi in the Communist Party. And they did so with comparable persistence. When they came to power, they were considered unknown quantities. But then they quickly eliminated all real or potential opponents, Putin with a campaign against oligarchs and Xi with a campaign against corruption. For this reason alone, they trust each other and distrust politicians in free countries who have risen through democratic competition.

    This text is partly based on the newly released book: Adrian Geiges, “Front gegen die Freiheit” (“Front against freedom”): Beijing, Moscow, and Their Accomplices Worldwide, Piper Verlag Munich.

    • KP Chinas

    Executive Moves

    Elisa Hoerhager has headed the BDI representation in Beijing as Chief Representative since the beginning of August. She previously worked as a diplomat at the Federal Foreign Office.

    Norbert Riedel is to become the new German Consul General in Shanghai. He will take up his post in the fall. Riedel is currently the German ambassador in Singapore.

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

    Dessert

    The Yang Xiao Chu 杨小厨 restaurant in Paris’s 15th arrondissement has become a popular meeting spot for Chinese Olympic athletes. Not far from the table tennis venues, owner Tang Zhongqiu serves spicy soups and hotpot that are eagerly enjoyed by table tennis stars such as Ding Ning and Liu Guozheng. In recent weeks, queues have formed outside the small restaurant, partly due to the large number of Chinese tourists currently visiting Paris. Yuan Jia Nan, a table tennis icon born in China but now a French citizen, is also a regular patron of the establishment.

    China.Table editorial team

    CHINA.TABLE EDITORIAL OFFICE

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