China’s flood preparations + Car exporters push into European markets
China’s battle strategy against floods
Carmakers focus on sales abroad
Tax breaks to boost birth rate
Buddhists donate Biontech vaccine to Taiwan
Nanjing airport under COVID-19 lockdown
Cyberspace agency bans exploitation of children
US vice-minister Sherman travels to Tianjin
Profile: Meta-human Ayayi
The heaviest rainfall in decades has caused massive flooding in the megacity of Zhengzhou. According to official figures, maximum precipitation of 201.9 millimeters was reached within hours on Tuesday. In a three-day period from Saturday to Tuesday evening, around 617 millimeters of precipitation were measured – almost reaching the average 640 millimeters of rainfall of an entire year within the city limits
Not only since the catastrophic flooding in the province of Henan has the People’s Republic been aware that large parts of the country are prone to flooding. Our colleagues Jörn Petring and Gregor Koppenburg take a look at the steps the Chinese government has so far taken to fight these forces of nature. Their analysis proves: For far too long, China relied too much on its dams and dikes, but now authorities are starting to rethink their approach.
The situation in Zhengzhou remains very tense. On social networks, users and influencers are sharing offers of help and emergency numbers for those affected. A video showing a band playing for the stranded at the city’s East Railway Station quickly went viral. At the same time, however, reports of critical posts apparently being censored are on the rise.
Public criticism of Chinese authorities by bloggers and influencers often led to unpleasant consequences for them in the past. A new kind of poster child is just what the government and companies need now: Computer-created, virtual meta-humans without opinions. In today’s Profile, Frank Sieren introduces Ayayi, the latest and already very successful addition to the ranks of AI influencers.
Feature
China relies on sponge cities in its fight against floods
Chaos reigns in Zhengzhou after the heaviest rainfalls in recent history. Since Tuesday, the capital of ten million people has seen as much rainfall as it normally did in eight months. According to official reports, at least 25 people have died within the region by Wednesday evening, with seven missing – but given the horrific images, the actual death toll is likely to rise. In the surrounding province of Henan, more than a million people were affected by floods. Footage shows multi-lane roads turning into raging torrents, sweeping people away. The floodwaters also inundated the subway system, where hundreds of people were temporarily trapped in trains and tunnels. The historic city of Luoyang is also at risk. The military had to blow up a dam on Tuesday night to release floodwaters. The famous Shaolin Monastery and the Longmen Grottoes with thousands of ancient Buddha statues are also at risk of flooding.
China’s state media calls it the “flood of the century”. For Zhengzhou, the capital of Henan province, it was indeed an exceptionally severe storm. In other parts of China, however, deadly floods are unfortunately a normal seasonal occurrence. Last summer, 200 people were killed nationwide after heavy rains, according to the state-run news agency Xinhua. And those are just the official numbers.
Casualties grow year by year
The government is aware that large parts of the country are prone to severe flooding, and climate change is exacerbating an already severe situation. With the number of victims continuing to soaring each year, Chinese experts have been pondering possible countermeasures against these forces of nature for a long time now.
Too much asphalt: In the metropolis of ten million people, large amounts of rainwater cannot drain
For a long time, China tried to control floods with large-scale engineering projects such as massive dams and dikes. Almost 34,000 kilometers of dikes were built along the Yangtze River. The Three Gorges Dam on the Yangtze, built over the course of twelve years, plays a major role in flood control. The controversial project, completed in 2006, forced 1.4 million people to relocate, and experts hoped it could withstand even the worst floods. Confidence in its capabilities, however, has waned. The Yangtze basin still suffers frequent water damage, and the river remains the source of the country’s deadliest floods.
Natural floodplains
In recent years, there has been a change in tactics. China is shifting its flood protection methods towards increased nature-based solutions. One core strategy, for example, is the restoration of natural floodplains with many trees and other plants that were previously lost when rivers were artificially straightened.
A lot of money has also been spent on so-called “hydrological monitoring“, i.e. the electronic collection of river data to predict water levels and floods. These efforts have helped to respond much more quickly to disasters and reduce damage.
Back in 2015, China also launched so-called “Sponge Cities“, which aim to ensure that urban areas no longer resemble completely sealed concrete deserts, but instead re-enable soils to absorb significantly more rainwater. Since then, many cities have been trying to control water levels during heavy rainfall, for example with grass-covered rooves, green strips along roads, water-absorbing pavements, and new wetlands.
Still a long way to go
However, this concept is still far from working perfectly everywhere, as anyone who has experienced a heavy summer rain in Beijing knows. Manhole covers are sometimes installed at the highest point of intersections, and a sewer system is only rudimentary.
Within minutes, streets can still turn into knee-deep rivers. And this is despite the fact that the Chinese capital should have already learned its lesson long ago: According to official figures, at least 77 people died in Beijing in the summer of 2012 after heavy rainfall. The footage of Zhengzhou is reminiscent of what happened in Beijing back then. Gregor Koppenburg /Joern Petring
Climate
Flooding
Henan
Zhengzhou
Cars for the world: China focuses on exports
103, this was the number of the week in mid-July for veteran car expert Michael Dunne. This was the percentage increase of Chinese car exports. As the Chinese Passenger Car Association (CPCA) announced, exports had more than doubled compared to the same period last year. According to its report, about 760,000 passenger cars had been shipped from China to markets around the globe through May, – already matching total exports in the COVID-19 battered year of 2020. “China is launching a relentless push into markets around the world,” Dunne says. “Keep a lookout for more Chinese models on German, British, Italian, and especially Australian roads. This is where China’s exports have doubled in 2020.”
According to statistics by the Shanghai Customs Bureau, in 2020 the People’s Republic exported cars to 128 countries. The five largest export markets of 2020 were Saudi Arabia, Bangladesh, Egypt, Chile, and Russia, according to Dunne. These are the usual suspects among emerging markets. Yet Europe, along with Russia, have now the biggest growth drivers in 2021, writes state-controlled newspaper China Daily. According to CPCA data, exports to Russia increased from 35,352 cars to 44,339. Exports to the UK jumped from 18,689 to 27,780 vehicles. The overall numbers may be low, but leaps are huge.“Overseas markets have performed better than expected,” CPCA Secretary-General Cui Dongshu told the Global Times.
Saturation of China’s domestic market
More and more manufacturers are entering the export business. In addition to well-known exporters such as Chery and Geely, Shanghai Automotive, BYD and, most recently, China’s electric startups are now also selling their cars abroad. Then there are foreign brands that produce locally. Japanese manufacturers have been exporting for many years, as has GM. Geely subsidiary Volvo is using its new factories in Chengdu and Daqing for exports. BMW launched exports of its iX3 electric model in November – initially on a small scale. Geely’s fledgling Lynk & Co brand is also shipping its 01 models to Europe – with production not ruled out at a later date. Although the share of foreign sales of the total export volume is dropping, it still accounts for just under 30 percent.
Exports are becoming an important business segment due to limited growth of the domestic market, especially for cars with internal combustion engines: In the first half of 2021, passenger car sales were still 1.4 percent lower than in the same period in 2019 – the year before the pandemic hit. Another factor is the global chip shortage, which is impairing production in China. In June, production actually dropped in comparison to the same month a year prior – with no export data for the current month of July. So it’s too early for a conclusive analysis. But the trend seems to grow towards exports, given saturated markets along the coast. Car-manufacturing capacity in China lies at around 40 million models a year, while sales in China have been leveling off at around 22 million cars for years, Dunne said. Exports seem like a natural solution.
An example demonstrates this: According to a study by LMC Automotive, the Korean manufacturer Kia, had to cope with a drop of 20 percent to 300,000 sold cars in China in 2019. Large parts of their capacity remained unused. As a result, the company switched to exports during the same year – and had already built at least 50,000 cars in China, all ready for export. That is something at least.
Electric car exports are rising
According to state media reports, the export of electric cars also increased sharply – especially to Western Europe. Interestingly, the main driver of the electric export boom so far has been Tesla. Of 20,000 electric cars exported in May, 11,500 – which is more than half – were Model 3s and Model Ys built in Tesla’s Gigafactory in Shanghai, according to newspaper Global Times. But local brands are likely to follow suit. “It’s no secret that most electric startups have global ambitions,” says Tu Le, managing director of consulting company Sino Auto Insights in Beijing. And CPCA Secretary-General Cui speaks of a lot of growth potential in electric car exports: “It is expected that there will be an increase of 100,000 electric models this year.” In 2020, there had been 222,900 in total; down by 12.5 percent from 2019 due to COVID-19.
“Europe is likely to see a far greater influx of electric cars made in China in the future”, trade magazine Automotive Logistics recently predicted. “Volvo, Polestar and BMW are already building a number of vehicles for the European market in China.” The article states further: “Once the global aspirations of the Chinese OEMs start gaining momentum, that flow is only going to increase. MG already managed to get a foot in the door with its keenly priced EV offerings.”
Once a British brand, Oxford-based MG has been part of Shanghai Automotive (SAIC) since 2005 and is an example of how Chinese brands can use electric cars to build a presence in Europe. The brand had little success with conventional cars in the UK. In 2019, SAIC launched sales of the MG ZS EV compact electric SUV, of which the company has since sold tens of thousands thanks to a low price, good range and favorable crash-test results – lately also available in the Netherlands, France, Italy, and Norway. Soon, SAIC now plans to enter Europe with a new premium electric brand called “R Auto”. BYD and electric startups Nio, Xpeng, and Aiways have also shipped their electric cars to Norway. Here, all companies currently try to establish a presence and begin to sell the first models.
Europe is not a single market
In their push, Chinese brands are benefiting from generous subsidies in several European countries for the purchase of electric cars – while these have just been abolished in their domestic market. Nevertheless, quick success is not guaranteed. Electric or internal combustion: Motorists will need time to get used to Chinese brands, just as they once did to Japanese and Korean models. In a recent survey, jointly conducted by China.Table and polling institute Civey, 69 percent of respondents in Germany could not see themselves buying a car from a Chinese manufacturer for the time being.
Europe’s electric car stronghold Norway is better suited for entering the European market, at least for Chinese electric startups. But electric manufacturers should not consider Europe a homogeneous market, warned expert Tu Le at a conference last winter. “Chinese EV makers really need to focus on individual European countries as opposed to looking at Europe as one big market. Moving forward, what they do with new funding and where they invest could be an important indicator of how successful they’re going to be,” Le said.
BYD
Car Industry
Electromobility
Europe
Export
Lynk & Co
SAIC
Xpeng
News
Tax benefits to increase birthrate
On Tuesday, China’s State Council approved measures to increase the birth rate. These measures include an amendmentto individual income tax law. In the future, parents will be able to deduct childcare expenses for children under the age of three from their taxes, according to the business portal Caixin. Accordingly, the central government wants to spend more financial resources on affordable daycare. State-owned enterprises are to be encouraged to participate in improving childcare. Local governments are to assist parents of minors in renting public housing and buying homes. Whether these measures will bear fruit is unclear. Cai Fang, a demographer, and economist at the Chinese Academy of Social Sciences, recently said, “The decline in the birth rate is basically an irreversible long-term trend. “
China’s population growth has slowed significantly, as the last census revealed. The fertility rate is now only 1.3 children per woman of childbearing age. Before these new measures, the three-child policy had already been introduced. The high cost of living, new lifestyles and career plans, as well as daycare problems, are believed to be the reasons for low population growth (as China.Table reported). nib
Children
Demographics
Drei-Kind-Politik
Growth
Society
Buddhists donate vaccine for Taiwan
Taiwan continues to have issues in obtaining Biontech’s COVID-19 vaccine, which is highly sought after by Taiwanese. The Mainz-based company is not allowed to supply the Taiwanese government directly. According to their information, the People’s Republic had prevented an agreement that was supposed to be signed at the beginning of the year – which Beijing, however, denies. Now, the Buddhist aid organization “Tzu Chi” is stepping in.
On its Facebook page, the organization announced plans to purchase five million doses of the Biontech/Pfizer vaccine for Taiwan. “Once the contract is successfully signed, all purchased vaccines will be donated to the relevant authority for use by the public,” the humanitarian organization wrote. Taiwan’s government thanked Tzu Chi.
The Tzu Chi Foundation was founded in 1966 in Hualien on the east coast of Taiwan by Buddhist nun Dharma Cheng Yen. The organization started out with 30 women who donated two cents a day to support people in need. In the late 1980s, Buddhism saw an increase in popularity not only in Taiwan, but also in Europe and North America. Tzu Chi counted four million members in 1994. Today, the organization has more than ten million members in over 50 countries and 500 representations worldwide. One of its most important sub-organizations is the Tzu Chi International Medical Association (TIMA). Its helpers are usually recognizable by their blue and white uniforms, which are supposed to symbolize blue skies and white clouds.
Just two weeks ago, Taiwanese tech companies Foxconn and TSMC also announced a $300 million purchase of around ten milliondoses of the COVID-19 vaccine directly from Biontech to supply Taiwan. flee
Biontech
Corona Vaccines
Coronavirus
Health
Taiwan
Nine COVID-19 cases, more than 400 flights canceled
Nanjing authorities have reported nine cases of COVID-19 among airport employees. As a result, more than 400 flights were canceled on Wednesday evening. In addition, the city of Nanjing launched mass testing in four areas near the airport. Anyone planning to leave the Yangtze metropolis, with a population of eight million, must provide proof of a negative COVID-19 test. Authorities had detected new infections during routine tests. The infected employees were immediately isolated and quarantined. According to authorities, these cases have been brought in from outside.
Unlike in Europe, North and South America, China’s authorities follow a strict “zero covid policy”. As soon as new infections occur, they react immediately with mass tests, exit restrictions, contact tracing, and quarantines throughout the region. China also has some of the strictest entry and exit regulations in the world. Anyone who has been abroad must immediately spend at least two weeks in a quarantine facility upon return. Vaccinations and tests are not sufficient.
Despite these efforts, China sees regular outbreaks, which are brought under control by the local authorities under great effort. Most new infections have recently occurred in the province of Yunnan on the border with Myanmar in southwestern China. The Dehong prefecture recorded 267 infected people in hospitals, as well as another 31 asymptomatic infections, as Chinese news agency Xinhua reports. flee
Air traffic
Coronavirus
Health
Nanjing
Fines for content exploiting children: China reprimands online platforms
China’s Cyberspace Administration CAC has ordered several of the country’s largest online platforms to remove inappropriate child-related content. Kuaishou, Tencent’s messaging tool QQ, Alibaba’s Taobao and Weibo are to “correct” and “clean up” the illegal content, as the authority issued in a statement. The platforms were also fined. The CAC stated that the operation focused on online topics that “endanger the physical and mental health of minors.” As an example, the Administration cited the use of children as influencers on live streams, as well as pornographic and violent content. Cyberbullying and “Internet addiction” have also been inadequately addressed in the past, CAC criticized.
Platforms were given a deadline to remove all corresponding content. However, the CAC did not name any details on the amount of the fines or the lengths of the deadline. China’s major internet companies are under increased scrutiny as China tightens its grip on the tech industry. Just earlier this month, regulators had the ride-hailing app Didi Chuxing removed from app stores for violations of privacy rules (as China.Table reported). ari
Children
Cybersicherheit
Didi
Internet
Kuaishou
Taobao
Technology
Weibo
US Deputy Secretary Sherman to meet Foreign Minister Wang Yi
US Deputy Secretary of State Wendy Sherman will travel to China this weekend. Sherman will address several topics of conflict, but also wants to talk about mutual interests, the US State Department announced on Wednesday. The US diplomat will meet representatives of the Chinese government, including Foreign Minister Wang Yi, in Tianjin on Sunday. Sherman is visiting China as part of a multi-day trip to Asia. US media reports suggested there had been disagreements in the preparation for the meeting, which is why the visit to China was not announced along with other destinations in Asia. Beijing had initially planned for Sherman to meet only with a representative of lower diplomatic rank, The Economic Times, among others, reported.
Sherman is the second senior US representative to travel to China since President Joe Biden took office, following US climate envoy John Kerry. Kerry also did not make an official visit to Beijing during his trip in mid-April, but met with his Chinese counterpart in Shanghai for talks on climate policy. US Secretary of State Antony Blinken had met with his counterpart Wang Yi in Alaska in March for consultations. At the ministerial meeting in Anchorage, both two sides engaged in heated exchanges in front of rolling cameras. Sherman’s visit is considered as potential preparation for a high-level meeting between Xi Jinping and Biden. (as China.Table reported). ari
Antony Blinken
Diplomacy
Geopolitics
USA
Wang Yi
Wendy Sherman
Profile
Meet meta-human influencer Ayayi
The artificially created Influencer Ayayi
Ayayi may only be two months old, but she already has almost 90,000 followers. With her blonde bob hairstyle, at first glance, one might actually think of her as a human being of flesh and blood. But she isn’t. Instead, Ayayi is a digitally programmed, hyper-realistic-looking woman modeled as a Chinese girl in her twenties. She debuted on e-commerce platform Xiaohongshu (Little Red Book, or RED) in May – and immediately went viral. Ayayi’s very first post racked up three million views.
Like a real-life human influencer, Ayayi can also be booked by companies to host their events. French cosmetics and perfume brand Guerlain immediately expressed interest in working with her for promotional purposes. She has already attended the Disney event “Mickey: The True Original Exhibition” in Shanghai and posted her impressions on Xiaohongshu. Guerlain invited her to the “Beloved Garden” party. The fact that she never actually attended cannot be verified on the web. She was also already seen in a photo with Hong Kong star William Chan. And she’s also developing a partnership with “No Problem”, a label for virtual musicians. Politically, she’s not causing any problems. She even obediently congratulated the launch of the manned spacecraft Shenzhou.
Latest cutting edge 3D technology now allows for light and shadow to be imitated perfectly, especially on her face. This way, there is no longer any difference to a real person on the web. It took developer company Ranmai Technology about six months to develop Ayayi. Around 40 versions of her were produced for this purpose. Ayayi was tailored to the tastes and preferences of Generation Z, those born after 1996. The influencer also looks much more realistic than Hatsune Miku, a virtual singer who went online in Japan in 2007. So far, there are 51 virtual meta-humans worldwide.
Screenshot of Ayayi’s profile on the e-commerce platform Xiaohongshu.
In doing so, companies rely on well-known faces to ensure customer loyalty and trust in the products and create demand where there was none before. Online sales personas made famous by live-streaming, such as charismatic Li Jiaqi, who regularly breaks sales records with her lipstick tests, are becoming increasingly important to China’s economy.
However, as the market power of influencers grows, so does government scrutiny. In May, China’s regulators issued new rules to regulate live-streaming platforms. Providers such as Kuaishou must now ensure that they do not offer products and services that are “illegal or unsuitable for sale via live-streaming,” as the Cyberspace Administration of China (CAC) announced on its website. This includes offering fake products, but also falsifying viewer numbers, promoting pyramid schemes, or promoting illegal gambling.
Digital counterparts, a godsend for entrepreneurs
Influencers themselves can also quickly fall out of favor with the Chinese state and companies. In recent months, for example, there have been repeated warnings or even bans. Among the reasons were wasteful handling of food or the sale of adulterated diet pills by live-stream hosts. In such cases, virtual influencers like the aforementioned Ayayi come in handy. They don’t get caught up in scandals, can work around the clock, and are less economically risky and more politically malleable than their human counterparts.
Ayayi is not the first virtual influencer controlled by artificial intelligence. Influencer Ling has been appearing online since May 2020, promoting Tesla as well as Vogue and Nayuki Tea & Bakery. But Ling doesn’t look as sophisticated as Ayayi. Frank Sieren
Advertising
Artificial intelligence
E-commerce
social media
Technology
Dessert
What is still a controversial topic in Germany is now being implemented in China: The vaccination of 12- to 17-year-olds. The nationwide vaccination campaign launched on Wednesday.
The heaviest rainfall in decades has caused massive flooding in the megacity of Zhengzhou. According to official figures, maximum precipitation of 201.9 millimeters was reached within hours on Tuesday. In a three-day period from Saturday to Tuesday evening, around 617 millimeters of precipitation were measured – almost reaching the average 640 millimeters of rainfall of an entire year within the city limits
Not only since the catastrophic flooding in the province of Henan has the People’s Republic been aware that large parts of the country are prone to flooding. Our colleagues Jörn Petring and Gregor Koppenburg take a look at the steps the Chinese government has so far taken to fight these forces of nature. Their analysis proves: For far too long, China relied too much on its dams and dikes, but now authorities are starting to rethink their approach.
The situation in Zhengzhou remains very tense. On social networks, users and influencers are sharing offers of help and emergency numbers for those affected. A video showing a band playing for the stranded at the city’s East Railway Station quickly went viral. At the same time, however, reports of critical posts apparently being censored are on the rise.
Public criticism of Chinese authorities by bloggers and influencers often led to unpleasant consequences for them in the past. A new kind of poster child is just what the government and companies need now: Computer-created, virtual meta-humans without opinions. In today’s Profile, Frank Sieren introduces Ayayi, the latest and already very successful addition to the ranks of AI influencers.
Feature
China relies on sponge cities in its fight against floods
Chaos reigns in Zhengzhou after the heaviest rainfalls in recent history. Since Tuesday, the capital of ten million people has seen as much rainfall as it normally did in eight months. According to official reports, at least 25 people have died within the region by Wednesday evening, with seven missing – but given the horrific images, the actual death toll is likely to rise. In the surrounding province of Henan, more than a million people were affected by floods. Footage shows multi-lane roads turning into raging torrents, sweeping people away. The floodwaters also inundated the subway system, where hundreds of people were temporarily trapped in trains and tunnels. The historic city of Luoyang is also at risk. The military had to blow up a dam on Tuesday night to release floodwaters. The famous Shaolin Monastery and the Longmen Grottoes with thousands of ancient Buddha statues are also at risk of flooding.
China’s state media calls it the “flood of the century”. For Zhengzhou, the capital of Henan province, it was indeed an exceptionally severe storm. In other parts of China, however, deadly floods are unfortunately a normal seasonal occurrence. Last summer, 200 people were killed nationwide after heavy rains, according to the state-run news agency Xinhua. And those are just the official numbers.
Casualties grow year by year
The government is aware that large parts of the country are prone to severe flooding, and climate change is exacerbating an already severe situation. With the number of victims continuing to soaring each year, Chinese experts have been pondering possible countermeasures against these forces of nature for a long time now.
Too much asphalt: In the metropolis of ten million people, large amounts of rainwater cannot drain
For a long time, China tried to control floods with large-scale engineering projects such as massive dams and dikes. Almost 34,000 kilometers of dikes were built along the Yangtze River. The Three Gorges Dam on the Yangtze, built over the course of twelve years, plays a major role in flood control. The controversial project, completed in 2006, forced 1.4 million people to relocate, and experts hoped it could withstand even the worst floods. Confidence in its capabilities, however, has waned. The Yangtze basin still suffers frequent water damage, and the river remains the source of the country’s deadliest floods.
Natural floodplains
In recent years, there has been a change in tactics. China is shifting its flood protection methods towards increased nature-based solutions. One core strategy, for example, is the restoration of natural floodplains with many trees and other plants that were previously lost when rivers were artificially straightened.
A lot of money has also been spent on so-called “hydrological monitoring“, i.e. the electronic collection of river data to predict water levels and floods. These efforts have helped to respond much more quickly to disasters and reduce damage.
Back in 2015, China also launched so-called “Sponge Cities“, which aim to ensure that urban areas no longer resemble completely sealed concrete deserts, but instead re-enable soils to absorb significantly more rainwater. Since then, many cities have been trying to control water levels during heavy rainfall, for example with grass-covered rooves, green strips along roads, water-absorbing pavements, and new wetlands.
Still a long way to go
However, this concept is still far from working perfectly everywhere, as anyone who has experienced a heavy summer rain in Beijing knows. Manhole covers are sometimes installed at the highest point of intersections, and a sewer system is only rudimentary.
Within minutes, streets can still turn into knee-deep rivers. And this is despite the fact that the Chinese capital should have already learned its lesson long ago: According to official figures, at least 77 people died in Beijing in the summer of 2012 after heavy rainfall. The footage of Zhengzhou is reminiscent of what happened in Beijing back then. Gregor Koppenburg /Joern Petring
Climate
Flooding
Henan
Zhengzhou
Cars for the world: China focuses on exports
103, this was the number of the week in mid-July for veteran car expert Michael Dunne. This was the percentage increase of Chinese car exports. As the Chinese Passenger Car Association (CPCA) announced, exports had more than doubled compared to the same period last year. According to its report, about 760,000 passenger cars had been shipped from China to markets around the globe through May, – already matching total exports in the COVID-19 battered year of 2020. “China is launching a relentless push into markets around the world,” Dunne says. “Keep a lookout for more Chinese models on German, British, Italian, and especially Australian roads. This is where China’s exports have doubled in 2020.”
According to statistics by the Shanghai Customs Bureau, in 2020 the People’s Republic exported cars to 128 countries. The five largest export markets of 2020 were Saudi Arabia, Bangladesh, Egypt, Chile, and Russia, according to Dunne. These are the usual suspects among emerging markets. Yet Europe, along with Russia, have now the biggest growth drivers in 2021, writes state-controlled newspaper China Daily. According to CPCA data, exports to Russia increased from 35,352 cars to 44,339. Exports to the UK jumped from 18,689 to 27,780 vehicles. The overall numbers may be low, but leaps are huge.“Overseas markets have performed better than expected,” CPCA Secretary-General Cui Dongshu told the Global Times.
Saturation of China’s domestic market
More and more manufacturers are entering the export business. In addition to well-known exporters such as Chery and Geely, Shanghai Automotive, BYD and, most recently, China’s electric startups are now also selling their cars abroad. Then there are foreign brands that produce locally. Japanese manufacturers have been exporting for many years, as has GM. Geely subsidiary Volvo is using its new factories in Chengdu and Daqing for exports. BMW launched exports of its iX3 electric model in November – initially on a small scale. Geely’s fledgling Lynk & Co brand is also shipping its 01 models to Europe – with production not ruled out at a later date. Although the share of foreign sales of the total export volume is dropping, it still accounts for just under 30 percent.
Exports are becoming an important business segment due to limited growth of the domestic market, especially for cars with internal combustion engines: In the first half of 2021, passenger car sales were still 1.4 percent lower than in the same period in 2019 – the year before the pandemic hit. Another factor is the global chip shortage, which is impairing production in China. In June, production actually dropped in comparison to the same month a year prior – with no export data for the current month of July. So it’s too early for a conclusive analysis. But the trend seems to grow towards exports, given saturated markets along the coast. Car-manufacturing capacity in China lies at around 40 million models a year, while sales in China have been leveling off at around 22 million cars for years, Dunne said. Exports seem like a natural solution.
An example demonstrates this: According to a study by LMC Automotive, the Korean manufacturer Kia, had to cope with a drop of 20 percent to 300,000 sold cars in China in 2019. Large parts of their capacity remained unused. As a result, the company switched to exports during the same year – and had already built at least 50,000 cars in China, all ready for export. That is something at least.
Electric car exports are rising
According to state media reports, the export of electric cars also increased sharply – especially to Western Europe. Interestingly, the main driver of the electric export boom so far has been Tesla. Of 20,000 electric cars exported in May, 11,500 – which is more than half – were Model 3s and Model Ys built in Tesla’s Gigafactory in Shanghai, according to newspaper Global Times. But local brands are likely to follow suit. “It’s no secret that most electric startups have global ambitions,” says Tu Le, managing director of consulting company Sino Auto Insights in Beijing. And CPCA Secretary-General Cui speaks of a lot of growth potential in electric car exports: “It is expected that there will be an increase of 100,000 electric models this year.” In 2020, there had been 222,900 in total; down by 12.5 percent from 2019 due to COVID-19.
“Europe is likely to see a far greater influx of electric cars made in China in the future”, trade magazine Automotive Logistics recently predicted. “Volvo, Polestar and BMW are already building a number of vehicles for the European market in China.” The article states further: “Once the global aspirations of the Chinese OEMs start gaining momentum, that flow is only going to increase. MG already managed to get a foot in the door with its keenly priced EV offerings.”
Once a British brand, Oxford-based MG has been part of Shanghai Automotive (SAIC) since 2005 and is an example of how Chinese brands can use electric cars to build a presence in Europe. The brand had little success with conventional cars in the UK. In 2019, SAIC launched sales of the MG ZS EV compact electric SUV, of which the company has since sold tens of thousands thanks to a low price, good range and favorable crash-test results – lately also available in the Netherlands, France, Italy, and Norway. Soon, SAIC now plans to enter Europe with a new premium electric brand called “R Auto”. BYD and electric startups Nio, Xpeng, and Aiways have also shipped their electric cars to Norway. Here, all companies currently try to establish a presence and begin to sell the first models.
Europe is not a single market
In their push, Chinese brands are benefiting from generous subsidies in several European countries for the purchase of electric cars – while these have just been abolished in their domestic market. Nevertheless, quick success is not guaranteed. Electric or internal combustion: Motorists will need time to get used to Chinese brands, just as they once did to Japanese and Korean models. In a recent survey, jointly conducted by China.Table and polling institute Civey, 69 percent of respondents in Germany could not see themselves buying a car from a Chinese manufacturer for the time being.
Europe’s electric car stronghold Norway is better suited for entering the European market, at least for Chinese electric startups. But electric manufacturers should not consider Europe a homogeneous market, warned expert Tu Le at a conference last winter. “Chinese EV makers really need to focus on individual European countries as opposed to looking at Europe as one big market. Moving forward, what they do with new funding and where they invest could be an important indicator of how successful they’re going to be,” Le said.
BYD
Car Industry
Electromobility
Europe
Export
Lynk & Co
SAIC
Xpeng
News
Tax benefits to increase birthrate
On Tuesday, China’s State Council approved measures to increase the birth rate. These measures include an amendmentto individual income tax law. In the future, parents will be able to deduct childcare expenses for children under the age of three from their taxes, according to the business portal Caixin. Accordingly, the central government wants to spend more financial resources on affordable daycare. State-owned enterprises are to be encouraged to participate in improving childcare. Local governments are to assist parents of minors in renting public housing and buying homes. Whether these measures will bear fruit is unclear. Cai Fang, a demographer, and economist at the Chinese Academy of Social Sciences, recently said, “The decline in the birth rate is basically an irreversible long-term trend. “
China’s population growth has slowed significantly, as the last census revealed. The fertility rate is now only 1.3 children per woman of childbearing age. Before these new measures, the three-child policy had already been introduced. The high cost of living, new lifestyles and career plans, as well as daycare problems, are believed to be the reasons for low population growth (as China.Table reported). nib
Children
Demographics
Drei-Kind-Politik
Growth
Society
Buddhists donate vaccine for Taiwan
Taiwan continues to have issues in obtaining Biontech’s COVID-19 vaccine, which is highly sought after by Taiwanese. The Mainz-based company is not allowed to supply the Taiwanese government directly. According to their information, the People’s Republic had prevented an agreement that was supposed to be signed at the beginning of the year – which Beijing, however, denies. Now, the Buddhist aid organization “Tzu Chi” is stepping in.
On its Facebook page, the organization announced plans to purchase five million doses of the Biontech/Pfizer vaccine for Taiwan. “Once the contract is successfully signed, all purchased vaccines will be donated to the relevant authority for use by the public,” the humanitarian organization wrote. Taiwan’s government thanked Tzu Chi.
The Tzu Chi Foundation was founded in 1966 in Hualien on the east coast of Taiwan by Buddhist nun Dharma Cheng Yen. The organization started out with 30 women who donated two cents a day to support people in need. In the late 1980s, Buddhism saw an increase in popularity not only in Taiwan, but also in Europe and North America. Tzu Chi counted four million members in 1994. Today, the organization has more than ten million members in over 50 countries and 500 representations worldwide. One of its most important sub-organizations is the Tzu Chi International Medical Association (TIMA). Its helpers are usually recognizable by their blue and white uniforms, which are supposed to symbolize blue skies and white clouds.
Just two weeks ago, Taiwanese tech companies Foxconn and TSMC also announced a $300 million purchase of around ten milliondoses of the COVID-19 vaccine directly from Biontech to supply Taiwan. flee
Biontech
Corona Vaccines
Coronavirus
Health
Taiwan
Nine COVID-19 cases, more than 400 flights canceled
Nanjing authorities have reported nine cases of COVID-19 among airport employees. As a result, more than 400 flights were canceled on Wednesday evening. In addition, the city of Nanjing launched mass testing in four areas near the airport. Anyone planning to leave the Yangtze metropolis, with a population of eight million, must provide proof of a negative COVID-19 test. Authorities had detected new infections during routine tests. The infected employees were immediately isolated and quarantined. According to authorities, these cases have been brought in from outside.
Unlike in Europe, North and South America, China’s authorities follow a strict “zero covid policy”. As soon as new infections occur, they react immediately with mass tests, exit restrictions, contact tracing, and quarantines throughout the region. China also has some of the strictest entry and exit regulations in the world. Anyone who has been abroad must immediately spend at least two weeks in a quarantine facility upon return. Vaccinations and tests are not sufficient.
Despite these efforts, China sees regular outbreaks, which are brought under control by the local authorities under great effort. Most new infections have recently occurred in the province of Yunnan on the border with Myanmar in southwestern China. The Dehong prefecture recorded 267 infected people in hospitals, as well as another 31 asymptomatic infections, as Chinese news agency Xinhua reports. flee
Air traffic
Coronavirus
Health
Nanjing
Fines for content exploiting children: China reprimands online platforms
China’s Cyberspace Administration CAC has ordered several of the country’s largest online platforms to remove inappropriate child-related content. Kuaishou, Tencent’s messaging tool QQ, Alibaba’s Taobao and Weibo are to “correct” and “clean up” the illegal content, as the authority issued in a statement. The platforms were also fined. The CAC stated that the operation focused on online topics that “endanger the physical and mental health of minors.” As an example, the Administration cited the use of children as influencers on live streams, as well as pornographic and violent content. Cyberbullying and “Internet addiction” have also been inadequately addressed in the past, CAC criticized.
Platforms were given a deadline to remove all corresponding content. However, the CAC did not name any details on the amount of the fines or the lengths of the deadline. China’s major internet companies are under increased scrutiny as China tightens its grip on the tech industry. Just earlier this month, regulators had the ride-hailing app Didi Chuxing removed from app stores for violations of privacy rules (as China.Table reported). ari
Children
Cybersicherheit
Didi
Internet
Kuaishou
Taobao
Technology
Weibo
US Deputy Secretary Sherman to meet Foreign Minister Wang Yi
US Deputy Secretary of State Wendy Sherman will travel to China this weekend. Sherman will address several topics of conflict, but also wants to talk about mutual interests, the US State Department announced on Wednesday. The US diplomat will meet representatives of the Chinese government, including Foreign Minister Wang Yi, in Tianjin on Sunday. Sherman is visiting China as part of a multi-day trip to Asia. US media reports suggested there had been disagreements in the preparation for the meeting, which is why the visit to China was not announced along with other destinations in Asia. Beijing had initially planned for Sherman to meet only with a representative of lower diplomatic rank, The Economic Times, among others, reported.
Sherman is the second senior US representative to travel to China since President Joe Biden took office, following US climate envoy John Kerry. Kerry also did not make an official visit to Beijing during his trip in mid-April, but met with his Chinese counterpart in Shanghai for talks on climate policy. US Secretary of State Antony Blinken had met with his counterpart Wang Yi in Alaska in March for consultations. At the ministerial meeting in Anchorage, both two sides engaged in heated exchanges in front of rolling cameras. Sherman’s visit is considered as potential preparation for a high-level meeting between Xi Jinping and Biden. (as China.Table reported). ari
Antony Blinken
Diplomacy
Geopolitics
USA
Wang Yi
Wendy Sherman
Profile
Meet meta-human influencer Ayayi
The artificially created Influencer Ayayi
Ayayi may only be two months old, but she already has almost 90,000 followers. With her blonde bob hairstyle, at first glance, one might actually think of her as a human being of flesh and blood. But she isn’t. Instead, Ayayi is a digitally programmed, hyper-realistic-looking woman modeled as a Chinese girl in her twenties. She debuted on e-commerce platform Xiaohongshu (Little Red Book, or RED) in May – and immediately went viral. Ayayi’s very first post racked up three million views.
Like a real-life human influencer, Ayayi can also be booked by companies to host their events. French cosmetics and perfume brand Guerlain immediately expressed interest in working with her for promotional purposes. She has already attended the Disney event “Mickey: The True Original Exhibition” in Shanghai and posted her impressions on Xiaohongshu. Guerlain invited her to the “Beloved Garden” party. The fact that she never actually attended cannot be verified on the web. She was also already seen in a photo with Hong Kong star William Chan. And she’s also developing a partnership with “No Problem”, a label for virtual musicians. Politically, she’s not causing any problems. She even obediently congratulated the launch of the manned spacecraft Shenzhou.
Latest cutting edge 3D technology now allows for light and shadow to be imitated perfectly, especially on her face. This way, there is no longer any difference to a real person on the web. It took developer company Ranmai Technology about six months to develop Ayayi. Around 40 versions of her were produced for this purpose. Ayayi was tailored to the tastes and preferences of Generation Z, those born after 1996. The influencer also looks much more realistic than Hatsune Miku, a virtual singer who went online in Japan in 2007. So far, there are 51 virtual meta-humans worldwide.
Screenshot of Ayayi’s profile on the e-commerce platform Xiaohongshu.
In doing so, companies rely on well-known faces to ensure customer loyalty and trust in the products and create demand where there was none before. Online sales personas made famous by live-streaming, such as charismatic Li Jiaqi, who regularly breaks sales records with her lipstick tests, are becoming increasingly important to China’s economy.
However, as the market power of influencers grows, so does government scrutiny. In May, China’s regulators issued new rules to regulate live-streaming platforms. Providers such as Kuaishou must now ensure that they do not offer products and services that are “illegal or unsuitable for sale via live-streaming,” as the Cyberspace Administration of China (CAC) announced on its website. This includes offering fake products, but also falsifying viewer numbers, promoting pyramid schemes, or promoting illegal gambling.
Digital counterparts, a godsend for entrepreneurs
Influencers themselves can also quickly fall out of favor with the Chinese state and companies. In recent months, for example, there have been repeated warnings or even bans. Among the reasons were wasteful handling of food or the sale of adulterated diet pills by live-stream hosts. In such cases, virtual influencers like the aforementioned Ayayi come in handy. They don’t get caught up in scandals, can work around the clock, and are less economically risky and more politically malleable than their human counterparts.
Ayayi is not the first virtual influencer controlled by artificial intelligence. Influencer Ling has been appearing online since May 2020, promoting Tesla as well as Vogue and Nayuki Tea & Bakery. But Ling doesn’t look as sophisticated as Ayayi. Frank Sieren
Advertising
Artificial intelligence
E-commerce
social media
Technology
Dessert
What is still a controversial topic in Germany is now being implemented in China: The vaccination of 12- to 17-year-olds. The nationwide vaccination campaign launched on Wednesday.
