Table.Briefing: China (English)

Confrontation in the South China Sea + Crash at online gaming giants

Dear reader,

The South China Sea may hide oil and gas deposits deep beneath its surface. There are rich fishing grounds there. And almost every third shipping container passes through its waters. China wants sovereignty over this sea region. And there have been frequent clashes with the Philippines recently because of this. The Philippines, in turn, are currently building up their defenses, including adding a Japanese radar system and Indian supersonic cruise missiles.

The USA is also adjusting its strategy. A large part of the US Air Force is currently stationed at a small number of bases in the Pacific, making it vulnerable. This is why a former US military base in the Pacific is being rebuilt on the island of Tinian in the Northern Mariana Islands, as Michael Radunski reports. He analyzes the tense situation, which some fear could become the next conflict zone.

Several large Chinese online gaming providers, including tech giant Tencent, experienced a shock just before Christmas: Their stock prices plummeted, losing more than 80 billion US dollars in market capitalization. The crash was caused by the Ministry of Propaganda, which drafted new, stricter regulations for the sector.

One of the authority’s top supervisors is now forced to resign, and the regulations are to be revised. Joern Petring analyzes whether this reaction is a sign of political support for the tech industry battered after crackdowns.

Feature

On confrontation course in the South China Sea

Archive photo from July 2021: Members of the US Air Force at Tinian International Airport.

Tinian is probably best known to historians, not so much because the small island in the Pacific Ocean was once part of the colony of German New Guinea. Instead, because one of the worst chapters in human history started on this island in the Northern Mariana Islands. On 6 August 1945, the B-29 bomber “Enola Gay” took off from the local US military airfield “North Field” and dropped the first atomic bomb shortly afterward.

Almost 80 years later, Tinian again appears to shift into the focus of geostrategists and politicians. The US plans to rebuild its former military base in the Pacific. “If you pay attention in the next few months, you will see significant progress, especially at Tinian North,” General Kenneth Wilsbach, commander of the US Pacific Air Forces, told Nikkei Asia in an interview. The Pacific Air Forces confirmed the US plans, but did not make an official statement. The US Air Force’s budget request for the 2024 fiscal year includes 78 million US dollars for construction projects on Tinian.

This represents a significant escalation of the situation in the South China Sea. China claims practically the entire South China Sea – including areas in the exclusive economic zones (EEZs) of neighboring countries. There is a lot at stake: current resources (rich fishing grounds) and future resources (potential oil and gas deposits), global trade (almost one in three shipping containers passes through the South China Sea), military and geostrategy.

USA fears China’s missiles

The US strategy behind the reconstruction of Tinian is called Agile Combat Employment, ACE for short. The US Air Force aims to “shift operations from centralized physical infrastructures to a network of smaller, dispersed locations that can complicate adversary planning and provide more options for joint force commander.” This is because a large part of the US Air Force in the Pacific is stationed at only a few large airbases – on Guam or Okinawa. This makes the US units a comparatively easy target.

An analysis by the Air University of the US Air Force from 2022 states that ACE would help mitigate Chinese threats by spreading its own forces across the theater of operations, making their deployment unpredictable and forcing the People’s Liberation Army to make greater use of missiles.

China’s Ministry of Defense subsequently warned of a further deterioration of the situation. The Chinese military is keeping a close eye on the US plans. The spokesperson for the Ministry of Defense in Beijing announced that China’s maritime rights, security and sovereignty in the region will be firmly defended. On Wednesday, the military’s Southern Theatre Command announced routine patrols in the South China Sea shortly.

China firmly defends its claims

The Philippines, in particular, feel the effects of how firmly China defends its claims. Most recently, water cannons were fired, and several vessels were even rammed. Another incident involved China erecting a sea barrier to keep Philippine vessels from the disputed Scarborough Shoal.

Manila is aware of the military imbalance and focuses on “assertive transparency.” As former US Air Force pilot Raymond Powell told Table.Media, “With this new campaign, the Philippines is trying to defend itself against China’s ‘grey zone’ tactics.” Powell now heads Sealight, a project on transparency in maritime law at Stanford University.

The Philippines install a Japanese radar system

Now, hardware is to follow. A few days ago, a Japanese radar system was set up on the north-west coast of the Philippines’ largest island. Located around 300 kilometers from the disputed Scarborough Shoal, it will monitor areas where recent clashes with Chinese vessels have occurred.

The system is part of a comprehensive modernization of the Philippine armed forces. An important aspect is that the radar is the first time Japanese-manufactured defense equipment has been deployed in a foreign country. The move also represents a clear signal from Tokyo.

Meanwhile, the Eurasian Times reports that the Philippines will receive Indian-made supersonic cruise missiles this month. The purchase of the BrahMos missiles was already agreed upon in 2022 and will now be delivered to the Philippine Navy. In addition, the Philippine Congress authorized the construction of a permanent facility on another reef disputed between Beijing and Manila.

China warns of escalation

China’s state media reacted accordingly harshly. In an editorial in the People’s Daily, the Philippines were warned against “causing unrest and chaos.” It accused the Philippines of repeatedly violating China’s territorial claims, a serious “miscalculation.”

“This behavior is extremely dangerous and has seriously harmed peace, stability, prosperity and development in the region,” the article states. The commentary was written under the name “Zhong Sheng” (钟声). It is a homophone for the “Voice of China,” a pseudonym used to express strong views on foreign policy issues.

The Philippine ambassador to the USA recently made it clear how real the danger is. In an interview, Jose Manuel Romualdez warned that the clashes between Philippine and Chinese ships in the South China Sea could spark a major conflict “at any time” – with dramatic consequences. “[If] anything happens in our area, it’s like the beginning of another war, world war.”

  • Geopolitics
  • Military
  • Philippines
  • South China Sea
  • USA

Change of heart after Tencent crash

Tencent’s proposed measures may have improved the protection of minors, but they caused a severe crash on the stock market.

Beijing has performed a remarkable U-turn, providing a glimmer of hope for China’s ailing internet industry. This week, apparently in response to massive criticism of significantly stricter regulations for online games, a top supervisor had to resign. As reported by Reuters and the South China Morning Post, citing sources familiar with the matter, Feng Shixin is no longer head of the publishing department at the Chinese Ministry of Propaganda, which is also responsible for regulating online games.

Shortly before Christmas, on the last trading day of the year, the shares of Tencent, NetEase and other online gaming giants experienced their biggest slump in years. Within a few minutes, they lost around 80 billion dollars in market capitalization.

The reason: The department headed by Feng surprisingly issued new regulations for online game providers. Although it was only a draft, it was tough for the companies concerned. Among other things, the draft stipulated that providers should set spending limits and prohibit certain incentive mechanisms, such as rewards for daily logins.

Memories of tech crackdown

Such measures may help protect minors. However, investors immediately responded negatively. The panic on the markets was not just because investors immediately feared for the profits of the companies affected. They also saw the proposed regulations as a sign that the crackdown on China’s tech companies, which began in 2021, is not yet over.

However, Beijing appears to be willing to give companies more leeway again to help the economy get back on its feet. There is no other explanation for the leadership’s swift and decisive reaction after the crash. Not only did Feng apparently lose his job: the day after the new rules were presented, his department issued a statement assuring that the draft was still being “revised and improved.”

On Monday, the authority followed up and announced that it had authorized 105 games in one fell swoop in December – the highest number this year. The state media also backed the industry and reported extensively on the sector’s “healthy and robust development.”

Investors remain skeptical

Nevertheless, analysts believe it is too early to give the all-clear. Uncertainty about the Chinese technology sector remains high, which has also been reflected on the stock market over the past twelve months. While US tech stocks reached new record highs, most Chinese stocks are still trading well below their all-time peaks.

“Overall, investors are still skeptical,” market strategist Redmond Wong from Saxo Capital Markets told Bloomberg. Beijing’s intervention following the sell-off is seen as positive, but there are still many uncertainties, he said.

It is also clear that even if Beijing allows its tech giants more leeway, their freedom will remain smaller than in the past. This is also evident in the game industry. Although 1,076 online games were approved this year, more than twice as many as in 2022, it was still 2,095 four years earlier.

  • Games
  • Tech Crackdown
  • Tencent

Events

Jan. 11, 2024, 4 p.m. CET (11 p.m. CST)
Center for Strategic & International Studies, Webcast: Prospects for Digital Trade in the Asia-Pacific in 2024 More

Jan. 11, 2024, 2:15 p.m. CET (9:15 p.m. CST)
Berlin Contemporary China Network, Webinar: Lecture Series “Digital Governance in China”: Digital Control and Emotions Under Autocracy More

News

VDA President Mueller criticizes Brussels’ ‘protectionism’

Hildegard Mueller, President of the German Automobile Association (VDA), has openly criticized the “protectionist efforts in Brussels,” including the controversial punitive tariffs against Chinese EVs. These could trigger “backlash” effects. “I would have liked to see a broader discussion of the advantages and disadvantages before punitive tariffs were introduced.”

My concern is that we will end up harming ourselves as an export nation as a result,” Mueller told Table.Media. Ultimately, other sectors besides the automotive industry could be drawn into a “negative spiral.” In such a scenario, German companies would have to pay tariffs on goods that they produce in China for the German market.

This may harm economic growth for all parties involved. The VDA President said that the guiding principle for de-risking should be: “As autonomous as necessary and as open, global and market-orientated as possible,” with free trade remaining the goal.

However, Mueller also acknowledged that China subsidizes its car industry, making Chinese cars cheaper. “Of course, it is important to be self-confident when dealing with China – and of course, we are also extremely critical of many developments there,” emphasized Mueller.

China’s car market continues to grow

China is the world’s largest car market and, as such, is also the single most important market for German manufacturers. Last year, sales of passenger cars in China grew by six percent. According to the China Passenger Car Association, sales totaled around 22 million cars. Stefan Braun/jul

  • Autoindustrie

Joseph Wu announces details about election manipulation from China

The Taiwanese Foreign Ministry has stated that it has documented China’s alleged attempts to interfere in the presidential election and will publish details after the vote. “Taiwan is taking measures to counter China’s interference and is documenting its experiences. The analysis will be published soon after the elections in consultation with international experts,” Foreign Minister Joseph Wu wrote in the latest issue of The Economist.

In the article, Wu cited the establishment of fake organizations, the creation of fake websites with fake news, fake social media accounts and fake polls as examples of methods used to manipulate public debate and opinion-forming. He also said that China had invited elected Taiwanese representatives to tour China in order to “indoctrinate” them.

Call for vigilance

China’s Taiwan Affairs Office has described the elections in Taiwan as a “purely internal Chinese affair” and declared that the ruling Democratic Progressive Party (DPP) is trying to label any kind of interaction between the two sides of the Taiwan Strait as interference in the elections. On Thursday, the authority responded to the accusations of election interference with a statement, saying that such attacks were the DPP’s “usual tricks” during elections to divert attention away from the party’s own problems.

“Should China succeed in shaping the outcome of voting in Taiwan, it will apply the same tactics to other democracies to promote its preferred international order,” Wu wrote. He urged the international community to pay more attention to China’s efforts to undermine Taiwan’s democracy through influence and disinformation campaigns, as well as hybrid warfare, including cyberattacks. rtr/cyb

  • Präsidentschaftswahlen
  • Presidential elections
  • Taiwan

Provinces prop up fragile banks

Last year, the Chinese provinces pumped a record sum of 218.3 billion yuan (around 28 billion euros) into fragile regional banks through special-purpose bonds. This was reported by the Financial Times. Data from the Chinese financial data provider Wind shows that sales of bonds, which are intended to strengthen the capital buffers of regional lenders, more than tripled compared to the previous year.

The bonds are sold by the local governments. Their proceeds can only be used to provide banks with capital. They are also used to accelerate mergers of lenders affected by the property crisis. The bonds were introduced in 2020 to help banks through the Covid pandemic.

On Tuesday, Bloomberg reported that the People’s Bank of China (PBOC) lent around 45 billion euros to the three state-owned banks – the so-called “policy banks”- for infrastructure financing last month. This indicates that the central bank could increase financing for housing and infrastructure projects in order to prop up the economy. rtr/cyb

  • Immobilienkrise

France attracts Chinese travelers with cheaper visas

France hopes to attract more Chinese tourists by offering cheaper visas. “We are working to improve the processing of applications,” said the staff of French Tourism Minister Olivia Grégoire, according to a report by AFP. The improvements include new visa offices throughout the country and lower fees. Grégoire was due to travel to China herself on Thursday.

The minister’s trip aimed to give potential Chinese tourists confidence in the country as a tourist destination in view of the Summer Olympics in Paris, the ministry said. In 2019, before the outbreak of the COVID-19 pandemic, more than two million Chinese people visited France. This represented only around three percent of all tourists, but accounted for seven percent of revenue – around 3.5 billion euros.

The figures for 2023 are not yet known, but the revenue from Chinese tourists is estimated at more than one billion euros. The number of travelers from the People’s Republic has plummeted not only in France, but throughout Europe in the wake of the pandemic: According to the European statistics authority Eurostat, the number of overnight stays by Chinese visitors in Europe fell from 22.2 million before the pandemic to 1.6 million in 2021. cyb

  • Europe
  • France
  • Tourism
  • Visa
  • visa

Heads

Cynthia Wu – presidential candidate with an illustrious background

The Taiwan People’s Party nominated Cynthia Wu as its vice-presidential candidate in late November.

When the Taiwanese media talk about “Princess Shin Kong,” they are not referring to a new Japanese anime series, but to Cynthia Wu, vice presidential candidate of the Taiwan People’s Party (TPP). Party leader Ko Wen-je nominated her at the end of November after failed negotiations on a joint presidential candidacy with Hou Yu-ih from the more China-friendly Kuomintang Party (KMT).

Wu’s nickname originates from her illustrious family background: She is the offspring of one of Taiwan’s wealthiest entrepreneurial families, whose businesses are bundled in the Shin Kong group of companies. The conglomerate includes one of Taiwan’s largest banks, an insurance group and a chain of department stores. The Shin Kong Tower, one of the first skyscrapers in Taipei in the 1990s, rises in the sky across from Taipei’s central railway station.

In the service of the family

Like many children of Taiwan’s economic elite, Cynthia Wu was born in the USA. She attended school in Taipei – at the American School. She then studied at the renowned Wellesley College in Massachusetts, a private university for women. The college’s alumni include Hillary Clinton and Soong Mei-ling, who later became the wife of former KMT dictator Chiang Kai-shek.

Wu later earned a master’s degree in business administration and art history in London, worked as an analyst at the investment bank Merril Lynch, and was gradually introduced into her family’s corporate business. In 2007, the now 45-year-old became a member of the supervisory board of Shin Kong Financial Holding, which manages the Group’s banking operations, and executive at Shin Kong Life Insurance.

Wu has hardly any political experience. She failed to make it into parliament in her first political candidacy in the 2020 legislative elections. She was re-nominated at the end of 2022 after another TPP MP withdrew. She has so far hardly positioned herself on many key political issues, such as Taiwan’s relationship with China. When she was introduced as a vice-presidential candidate, she touted her “international orientation and experience in the financial sector.” Entrepreneurial skills are highly valued in Taiwan. However, the fact that Wu was born with so much experience does not go down well, especially with younger voters concerned about social justice.

Cynthia Wu has only few campaign appearances

Party leader Ko only founded the TPP in 2019. He has pledged to clean up the established political forces and align Taiwan’s policies with the population’s social needs. His alliance with Wu resulted in a loss of trust. In the weeks following her nomination, the TPP’s poll ratings for the presidential elections plummeted – from around 25 percent to around 17 percent. The KMT, which is now close to the ruling China-critical DPP in the polls, is the main beneficiary of this.

It is difficult to say whether Cynthia Wu is partly responsible for her party’s downfall or whether she is the main victim. Ko already appeared less than confident during the failed negotiations with the KMT. However, Wu’s nomination has clearly not done him any favors. Meanwhile, she has made remarkably few election appearances. Many see her candidacy as an emergency solution – and possibly as a way to secure financial support for Ko’s election campaign, a party that is institutionally weak compared to the KMT and DPP.

Cynthia Wu recently had to disclose her assets as part of a routine screening of all candidates by Taiwan’s Central Election Commission. Unfortunately, she forgot her husband’s assets, Belgian Baron Renaud van der Elst. The couple’s church wedding ceremony in September this year was also attended by a real queen – the Belgian monarch Mathilde. Leonardo Pape

  • Präsidentschaftswahlen
  • Presidential elections
  • Taiwan

Executive Moves

Harald Brungs is now Head of Quality Control for battery cells at Volkswagen’s Dalian plant. He previously worked in battery cell production for the Group in Salzgitter for two years. He also gained experience at FAW-Volkswagen in Changchun.

Liu Tao has been working as Key Account Director at Cosmx, a manufacturer of lithium-ion batteries, in Jiaxing, Zhejiang, since December. Previously, he was Senior Program Manager at the technology group Huawei in Wolfsburg, where he also worked for CATL.

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

Dessert

A thick blanket of fog has covered Nanjing, Jiangsu. Other provinces are also affected. In Anhui, visibility was only 50 meters at times and highways were temporarily closed. At Shanghai Pudong International Airport, numerous flights were delayed or diverted. Only the residents on the upper floors of these towers were able to enjoy the weather – looking over the white sea of clouds.

China.Table editorial team

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    The South China Sea may hide oil and gas deposits deep beneath its surface. There are rich fishing grounds there. And almost every third shipping container passes through its waters. China wants sovereignty over this sea region. And there have been frequent clashes with the Philippines recently because of this. The Philippines, in turn, are currently building up their defenses, including adding a Japanese radar system and Indian supersonic cruise missiles.

    The USA is also adjusting its strategy. A large part of the US Air Force is currently stationed at a small number of bases in the Pacific, making it vulnerable. This is why a former US military base in the Pacific is being rebuilt on the island of Tinian in the Northern Mariana Islands, as Michael Radunski reports. He analyzes the tense situation, which some fear could become the next conflict zone.

    Several large Chinese online gaming providers, including tech giant Tencent, experienced a shock just before Christmas: Their stock prices plummeted, losing more than 80 billion US dollars in market capitalization. The crash was caused by the Ministry of Propaganda, which drafted new, stricter regulations for the sector.

    One of the authority’s top supervisors is now forced to resign, and the regulations are to be revised. Joern Petring analyzes whether this reaction is a sign of political support for the tech industry battered after crackdowns.

    Feature

    On confrontation course in the South China Sea

    Archive photo from July 2021: Members of the US Air Force at Tinian International Airport.

    Tinian is probably best known to historians, not so much because the small island in the Pacific Ocean was once part of the colony of German New Guinea. Instead, because one of the worst chapters in human history started on this island in the Northern Mariana Islands. On 6 August 1945, the B-29 bomber “Enola Gay” took off from the local US military airfield “North Field” and dropped the first atomic bomb shortly afterward.

    Almost 80 years later, Tinian again appears to shift into the focus of geostrategists and politicians. The US plans to rebuild its former military base in the Pacific. “If you pay attention in the next few months, you will see significant progress, especially at Tinian North,” General Kenneth Wilsbach, commander of the US Pacific Air Forces, told Nikkei Asia in an interview. The Pacific Air Forces confirmed the US plans, but did not make an official statement. The US Air Force’s budget request for the 2024 fiscal year includes 78 million US dollars for construction projects on Tinian.

    This represents a significant escalation of the situation in the South China Sea. China claims practically the entire South China Sea – including areas in the exclusive economic zones (EEZs) of neighboring countries. There is a lot at stake: current resources (rich fishing grounds) and future resources (potential oil and gas deposits), global trade (almost one in three shipping containers passes through the South China Sea), military and geostrategy.

    USA fears China’s missiles

    The US strategy behind the reconstruction of Tinian is called Agile Combat Employment, ACE for short. The US Air Force aims to “shift operations from centralized physical infrastructures to a network of smaller, dispersed locations that can complicate adversary planning and provide more options for joint force commander.” This is because a large part of the US Air Force in the Pacific is stationed at only a few large airbases – on Guam or Okinawa. This makes the US units a comparatively easy target.

    An analysis by the Air University of the US Air Force from 2022 states that ACE would help mitigate Chinese threats by spreading its own forces across the theater of operations, making their deployment unpredictable and forcing the People’s Liberation Army to make greater use of missiles.

    China’s Ministry of Defense subsequently warned of a further deterioration of the situation. The Chinese military is keeping a close eye on the US plans. The spokesperson for the Ministry of Defense in Beijing announced that China’s maritime rights, security and sovereignty in the region will be firmly defended. On Wednesday, the military’s Southern Theatre Command announced routine patrols in the South China Sea shortly.

    China firmly defends its claims

    The Philippines, in particular, feel the effects of how firmly China defends its claims. Most recently, water cannons were fired, and several vessels were even rammed. Another incident involved China erecting a sea barrier to keep Philippine vessels from the disputed Scarborough Shoal.

    Manila is aware of the military imbalance and focuses on “assertive transparency.” As former US Air Force pilot Raymond Powell told Table.Media, “With this new campaign, the Philippines is trying to defend itself against China’s ‘grey zone’ tactics.” Powell now heads Sealight, a project on transparency in maritime law at Stanford University.

    The Philippines install a Japanese radar system

    Now, hardware is to follow. A few days ago, a Japanese radar system was set up on the north-west coast of the Philippines’ largest island. Located around 300 kilometers from the disputed Scarborough Shoal, it will monitor areas where recent clashes with Chinese vessels have occurred.

    The system is part of a comprehensive modernization of the Philippine armed forces. An important aspect is that the radar is the first time Japanese-manufactured defense equipment has been deployed in a foreign country. The move also represents a clear signal from Tokyo.

    Meanwhile, the Eurasian Times reports that the Philippines will receive Indian-made supersonic cruise missiles this month. The purchase of the BrahMos missiles was already agreed upon in 2022 and will now be delivered to the Philippine Navy. In addition, the Philippine Congress authorized the construction of a permanent facility on another reef disputed between Beijing and Manila.

    China warns of escalation

    China’s state media reacted accordingly harshly. In an editorial in the People’s Daily, the Philippines were warned against “causing unrest and chaos.” It accused the Philippines of repeatedly violating China’s territorial claims, a serious “miscalculation.”

    “This behavior is extremely dangerous and has seriously harmed peace, stability, prosperity and development in the region,” the article states. The commentary was written under the name “Zhong Sheng” (钟声). It is a homophone for the “Voice of China,” a pseudonym used to express strong views on foreign policy issues.

    The Philippine ambassador to the USA recently made it clear how real the danger is. In an interview, Jose Manuel Romualdez warned that the clashes between Philippine and Chinese ships in the South China Sea could spark a major conflict “at any time” – with dramatic consequences. “[If] anything happens in our area, it’s like the beginning of another war, world war.”

    • Geopolitics
    • Military
    • Philippines
    • South China Sea
    • USA

    Change of heart after Tencent crash

    Tencent’s proposed measures may have improved the protection of minors, but they caused a severe crash on the stock market.

    Beijing has performed a remarkable U-turn, providing a glimmer of hope for China’s ailing internet industry. This week, apparently in response to massive criticism of significantly stricter regulations for online games, a top supervisor had to resign. As reported by Reuters and the South China Morning Post, citing sources familiar with the matter, Feng Shixin is no longer head of the publishing department at the Chinese Ministry of Propaganda, which is also responsible for regulating online games.

    Shortly before Christmas, on the last trading day of the year, the shares of Tencent, NetEase and other online gaming giants experienced their biggest slump in years. Within a few minutes, they lost around 80 billion dollars in market capitalization.

    The reason: The department headed by Feng surprisingly issued new regulations for online game providers. Although it was only a draft, it was tough for the companies concerned. Among other things, the draft stipulated that providers should set spending limits and prohibit certain incentive mechanisms, such as rewards for daily logins.

    Memories of tech crackdown

    Such measures may help protect minors. However, investors immediately responded negatively. The panic on the markets was not just because investors immediately feared for the profits of the companies affected. They also saw the proposed regulations as a sign that the crackdown on China’s tech companies, which began in 2021, is not yet over.

    However, Beijing appears to be willing to give companies more leeway again to help the economy get back on its feet. There is no other explanation for the leadership’s swift and decisive reaction after the crash. Not only did Feng apparently lose his job: the day after the new rules were presented, his department issued a statement assuring that the draft was still being “revised and improved.”

    On Monday, the authority followed up and announced that it had authorized 105 games in one fell swoop in December – the highest number this year. The state media also backed the industry and reported extensively on the sector’s “healthy and robust development.”

    Investors remain skeptical

    Nevertheless, analysts believe it is too early to give the all-clear. Uncertainty about the Chinese technology sector remains high, which has also been reflected on the stock market over the past twelve months. While US tech stocks reached new record highs, most Chinese stocks are still trading well below their all-time peaks.

    “Overall, investors are still skeptical,” market strategist Redmond Wong from Saxo Capital Markets told Bloomberg. Beijing’s intervention following the sell-off is seen as positive, but there are still many uncertainties, he said.

    It is also clear that even if Beijing allows its tech giants more leeway, their freedom will remain smaller than in the past. This is also evident in the game industry. Although 1,076 online games were approved this year, more than twice as many as in 2022, it was still 2,095 four years earlier.

    • Games
    • Tech Crackdown
    • Tencent

    Events

    Jan. 11, 2024, 4 p.m. CET (11 p.m. CST)
    Center for Strategic & International Studies, Webcast: Prospects for Digital Trade in the Asia-Pacific in 2024 More

    Jan. 11, 2024, 2:15 p.m. CET (9:15 p.m. CST)
    Berlin Contemporary China Network, Webinar: Lecture Series “Digital Governance in China”: Digital Control and Emotions Under Autocracy More

    News

    VDA President Mueller criticizes Brussels’ ‘protectionism’

    Hildegard Mueller, President of the German Automobile Association (VDA), has openly criticized the “protectionist efforts in Brussels,” including the controversial punitive tariffs against Chinese EVs. These could trigger “backlash” effects. “I would have liked to see a broader discussion of the advantages and disadvantages before punitive tariffs were introduced.”

    My concern is that we will end up harming ourselves as an export nation as a result,” Mueller told Table.Media. Ultimately, other sectors besides the automotive industry could be drawn into a “negative spiral.” In such a scenario, German companies would have to pay tariffs on goods that they produce in China for the German market.

    This may harm economic growth for all parties involved. The VDA President said that the guiding principle for de-risking should be: “As autonomous as necessary and as open, global and market-orientated as possible,” with free trade remaining the goal.

    However, Mueller also acknowledged that China subsidizes its car industry, making Chinese cars cheaper. “Of course, it is important to be self-confident when dealing with China – and of course, we are also extremely critical of many developments there,” emphasized Mueller.

    China’s car market continues to grow

    China is the world’s largest car market and, as such, is also the single most important market for German manufacturers. Last year, sales of passenger cars in China grew by six percent. According to the China Passenger Car Association, sales totaled around 22 million cars. Stefan Braun/jul

    • Autoindustrie

    Joseph Wu announces details about election manipulation from China

    The Taiwanese Foreign Ministry has stated that it has documented China’s alleged attempts to interfere in the presidential election and will publish details after the vote. “Taiwan is taking measures to counter China’s interference and is documenting its experiences. The analysis will be published soon after the elections in consultation with international experts,” Foreign Minister Joseph Wu wrote in the latest issue of The Economist.

    In the article, Wu cited the establishment of fake organizations, the creation of fake websites with fake news, fake social media accounts and fake polls as examples of methods used to manipulate public debate and opinion-forming. He also said that China had invited elected Taiwanese representatives to tour China in order to “indoctrinate” them.

    Call for vigilance

    China’s Taiwan Affairs Office has described the elections in Taiwan as a “purely internal Chinese affair” and declared that the ruling Democratic Progressive Party (DPP) is trying to label any kind of interaction between the two sides of the Taiwan Strait as interference in the elections. On Thursday, the authority responded to the accusations of election interference with a statement, saying that such attacks were the DPP’s “usual tricks” during elections to divert attention away from the party’s own problems.

    “Should China succeed in shaping the outcome of voting in Taiwan, it will apply the same tactics to other democracies to promote its preferred international order,” Wu wrote. He urged the international community to pay more attention to China’s efforts to undermine Taiwan’s democracy through influence and disinformation campaigns, as well as hybrid warfare, including cyberattacks. rtr/cyb

    • Präsidentschaftswahlen
    • Presidential elections
    • Taiwan

    Provinces prop up fragile banks

    Last year, the Chinese provinces pumped a record sum of 218.3 billion yuan (around 28 billion euros) into fragile regional banks through special-purpose bonds. This was reported by the Financial Times. Data from the Chinese financial data provider Wind shows that sales of bonds, which are intended to strengthen the capital buffers of regional lenders, more than tripled compared to the previous year.

    The bonds are sold by the local governments. Their proceeds can only be used to provide banks with capital. They are also used to accelerate mergers of lenders affected by the property crisis. The bonds were introduced in 2020 to help banks through the Covid pandemic.

    On Tuesday, Bloomberg reported that the People’s Bank of China (PBOC) lent around 45 billion euros to the three state-owned banks – the so-called “policy banks”- for infrastructure financing last month. This indicates that the central bank could increase financing for housing and infrastructure projects in order to prop up the economy. rtr/cyb

    • Immobilienkrise

    France attracts Chinese travelers with cheaper visas

    France hopes to attract more Chinese tourists by offering cheaper visas. “We are working to improve the processing of applications,” said the staff of French Tourism Minister Olivia Grégoire, according to a report by AFP. The improvements include new visa offices throughout the country and lower fees. Grégoire was due to travel to China herself on Thursday.

    The minister’s trip aimed to give potential Chinese tourists confidence in the country as a tourist destination in view of the Summer Olympics in Paris, the ministry said. In 2019, before the outbreak of the COVID-19 pandemic, more than two million Chinese people visited France. This represented only around three percent of all tourists, but accounted for seven percent of revenue – around 3.5 billion euros.

    The figures for 2023 are not yet known, but the revenue from Chinese tourists is estimated at more than one billion euros. The number of travelers from the People’s Republic has plummeted not only in France, but throughout Europe in the wake of the pandemic: According to the European statistics authority Eurostat, the number of overnight stays by Chinese visitors in Europe fell from 22.2 million before the pandemic to 1.6 million in 2021. cyb

    • Europe
    • France
    • Tourism
    • Visa
    • visa

    Heads

    Cynthia Wu – presidential candidate with an illustrious background

    The Taiwan People’s Party nominated Cynthia Wu as its vice-presidential candidate in late November.

    When the Taiwanese media talk about “Princess Shin Kong,” they are not referring to a new Japanese anime series, but to Cynthia Wu, vice presidential candidate of the Taiwan People’s Party (TPP). Party leader Ko Wen-je nominated her at the end of November after failed negotiations on a joint presidential candidacy with Hou Yu-ih from the more China-friendly Kuomintang Party (KMT).

    Wu’s nickname originates from her illustrious family background: She is the offspring of one of Taiwan’s wealthiest entrepreneurial families, whose businesses are bundled in the Shin Kong group of companies. The conglomerate includes one of Taiwan’s largest banks, an insurance group and a chain of department stores. The Shin Kong Tower, one of the first skyscrapers in Taipei in the 1990s, rises in the sky across from Taipei’s central railway station.

    In the service of the family

    Like many children of Taiwan’s economic elite, Cynthia Wu was born in the USA. She attended school in Taipei – at the American School. She then studied at the renowned Wellesley College in Massachusetts, a private university for women. The college’s alumni include Hillary Clinton and Soong Mei-ling, who later became the wife of former KMT dictator Chiang Kai-shek.

    Wu later earned a master’s degree in business administration and art history in London, worked as an analyst at the investment bank Merril Lynch, and was gradually introduced into her family’s corporate business. In 2007, the now 45-year-old became a member of the supervisory board of Shin Kong Financial Holding, which manages the Group’s banking operations, and executive at Shin Kong Life Insurance.

    Wu has hardly any political experience. She failed to make it into parliament in her first political candidacy in the 2020 legislative elections. She was re-nominated at the end of 2022 after another TPP MP withdrew. She has so far hardly positioned herself on many key political issues, such as Taiwan’s relationship with China. When she was introduced as a vice-presidential candidate, she touted her “international orientation and experience in the financial sector.” Entrepreneurial skills are highly valued in Taiwan. However, the fact that Wu was born with so much experience does not go down well, especially with younger voters concerned about social justice.

    Cynthia Wu has only few campaign appearances

    Party leader Ko only founded the TPP in 2019. He has pledged to clean up the established political forces and align Taiwan’s policies with the population’s social needs. His alliance with Wu resulted in a loss of trust. In the weeks following her nomination, the TPP’s poll ratings for the presidential elections plummeted – from around 25 percent to around 17 percent. The KMT, which is now close to the ruling China-critical DPP in the polls, is the main beneficiary of this.

    It is difficult to say whether Cynthia Wu is partly responsible for her party’s downfall or whether she is the main victim. Ko already appeared less than confident during the failed negotiations with the KMT. However, Wu’s nomination has clearly not done him any favors. Meanwhile, she has made remarkably few election appearances. Many see her candidacy as an emergency solution – and possibly as a way to secure financial support for Ko’s election campaign, a party that is institutionally weak compared to the KMT and DPP.

    Cynthia Wu recently had to disclose her assets as part of a routine screening of all candidates by Taiwan’s Central Election Commission. Unfortunately, she forgot her husband’s assets, Belgian Baron Renaud van der Elst. The couple’s church wedding ceremony in September this year was also attended by a real queen – the Belgian monarch Mathilde. Leonardo Pape

    • Präsidentschaftswahlen
    • Presidential elections
    • Taiwan

    Executive Moves

    Harald Brungs is now Head of Quality Control for battery cells at Volkswagen’s Dalian plant. He previously worked in battery cell production for the Group in Salzgitter for two years. He also gained experience at FAW-Volkswagen in Changchun.

    Liu Tao has been working as Key Account Director at Cosmx, a manufacturer of lithium-ion batteries, in Jiaxing, Zhejiang, since December. Previously, he was Senior Program Manager at the technology group Huawei in Wolfsburg, where he also worked for CATL.

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

    Dessert

    A thick blanket of fog has covered Nanjing, Jiangsu. Other provinces are also affected. In Anhui, visibility was only 50 meters at times and highways were temporarily closed. At Shanghai Pudong International Airport, numerous flights were delayed or diverted. Only the residents on the upper floors of these towers were able to enjoy the weather – looking over the white sea of clouds.

    China.Table editorial team

    CHINA.TABLE EDITORIAL OFFICE

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