War – nothing less seems feasible. Beijing’s threats toward Taiwan once again show that the People’s Republic sees diplomacy as a battering ram that it can wield if necessary.
What has the Chinese government so enraged is the appointment of Hsiao Bi-khim as Taiwan’s vice president-designate if the ruling DPP wins the election. Since 2020, Hsiao has been the de facto ambassador to the USA of a country that, according to Chinese interpretation, does not even exist. Beijing’s opinion of Hsiao is harsh: She is simply an “independence fanatic.” Michael Radunski has taken a look at the explosive developments and put them in context for us.
Incidentally, it is hotspots like Taiwan that have made us in Germany listen up when it comes to the People’s Republic of China. Here in Germany, we have noticed that Beijing is pursuing policies that we, as a liberal society, could never accept. This is what people say who keep a very close eye on us and our relationship with the world’s largest dictatorship.
These include Hong Kong activist Ray Wong, who has been living in exile in Germany for six years and continues his fight for the freedom of his home city from here. Find more about his views, plans and passion for the German language in today’s Heads section.
Meanwhile, Finn Mayer-Kuckuk looks at the newly formed Finance Commission, chaired by Premier Li Qiang. “It had to be Li of all people,” some in the Chinese capital market metropolis of Shanghai might think. After all, Li was personally responsible for the largely pointless lockdown in the city in spring 2022.
It is said that trust in him as a politician has been at rock-bottom ever since. However, the question is whether the Chinese financial market was ever characterized by trust or rather by interests.
On Monday, Lai Ching-te nominated Hsiao Bi-khim as his deputy for the upcoming presidential election in Taiwan. Lai is running for the Democratic Progressive Party (DPP). He is far ahead of the opposition parties in the polls. Should he win the election, Hsiao Bi-khim would become Taiwan’s new vice president.
On short message service X, Lai called Hsiao a “warrior for democracy and one of Taiwan’s most influential ambassadors.” She has worked as Taiwan’s de facto representative to the US since 2020. Since then, relations between the US and Taiwan have intensified considerably.
Hsiao Bi-khim was born in Japan to a Taiwanese father and an American mother. The 52-year-old is considered to be very well-connected in the United States. In Washington, it is said that Hsiao speaks almost daily with senior officials of the Biden administration and maintains very good contacts with the leaders of both parties in Congress. “Taiwan has one of the most effective diplomatic representations in Washington of any country,” said former US national security adviser John Bolton a few months ago.
The United States – like many other countries around the world – does not officially recognize Taiwan as an independent state. Washington pursues a one-China policy and rejects any unilateral change to the status quo in the Taiwan Strait. Informally, however, the United States is Taiwan’s biggest ally – and its largest arms supplier.
Rupert Hammond-Chambers, President of the US-Taiwan Business Council, has known Hsiao since the 1990s. He is convinced that Lai has made a brilliant move by nominating Hsiao. “Bi-khim’s relationships in D.C. will be invaluable to a President Lai,” Hammond-Chambers told Reuters. “If he is elected, she’s going to bring all of those relationships into his government and he doesn’t have those.” Hsiao would give Lai’s candidacy a much-needed diplomatic and security component.
And Lai himself was also delighted with his pick on Monday. “I believe that Bi-khim is definitely an excellent person when it comes to Taiwan’s diplomatic work today, and she is a rare diplomatic talent in our country,” Lai wrote on Facebook, adding that Hsiao had helped strengthen Taiwan’s relations with Washington in recent years. Her efforts have been praised not only by Taiwan and the US, but also by the international community.
Lai and Hsiao face a divided opposition led by the conservative Kuomintang (KMT), which favors rapprochement with China. The ruling DPP, on the other hand, wants closer relations with the United States in order to secure Taiwan’s autonomy. And the center-left Taiwan People’s Party (TPP), which was only founded in 2019. Last week, both opposition parties announced plans to find a joint presidential candidate in order to beat the ruling DPP leading in the polls. However, they have yet to officially reach an agreement. Beijing is suspected to be working behind the scenes to influence companies and the media to support the KMT. The incumbent president, Tsai Ing-wen, cannot run again after two terms in office.
On Monday, the Chinese Foreign Ministry declined to answer questions about Hsiao’s nomination. The foreign ministry spokeswoman in Beijing responded that it was not a diplomatic matter. However, China’s opinion of Hsiao is well known. Beijing has already sanctioned Hsiao twice and labeled her an “independence fanatic.”
Even when just rumors of Hsiao’s possible nomination surfaced, Beijing threatened that it could mean war for Taiwan. On Monday, China’s Taiwan Affairs Office labeled Lai and Hsiao an “independence double act,” adding that Taiwan’s people were “very clear” about what their partnership meant for the “situation in the Taiwan Strait.”
When DPP’s top candidate Lai was asked about these comments, he outright dismissed the “thoughtless remarks”. “This is sufficient to prove that China is intervening in this election,” he told reporters. “We only put importance on our people’s issues.”
Indeed, by nominating Hsiao Bi-khim, Lai has struck a double coup: Domestically, he strengthens his team with competence and mobilizes DPP supporters critical of Beijing. And on the foreign policy front, he strengthens ties with Taiwan’s biggest international partners.
Premier Li Qiang personally heads the newly formed Central Finance Commission. This was reported by Xinhua. He chaired the Commission’s first meeting on Monday. The new body is the party’s attempt to consolidate control over the financial system.
On the one hand, Li is the logical choice. He is considered pro-business and is a loyal party soldier in the service of General Secretary Xi Jinping. In any case, the Premier should be in charge of economic growth. But the announcement leaves mixed feelings. Li ruthlessly enforced the largely pointless lockdown in Shanghai in the spring of 2022. Trust in him as a politician has been at rock bottom ever since. Shanghai – this is China’s financial metropolis.
According to the Xinhua report, the following priorities will be set for China’s capital system:
These are strong signals. Significant growth can be expected in these areas in the coming years. At the same time, Xi Jinping’s goal is to reduce financial risks and pursue a robust central bank policy. In addition, early warning systems will be improved to recognize financial bubbles early on.
In other words, there will be no debt-financed economic bonanza for the time being. “Xi will be in office for a long time, he doesn’t want to create problems for himself,” surmises a Beijing financial expert who wishes to remain anonymous. After all, he has already inherited the high debts of local governments and property developers from his predecessors. But those who rule for life cannot pass the buck.
Xi is apparently not ambitious when it comes to the growth rate. Economists in Beijing believe that without new, substantial support for the property sector, the growth potential will only be around four or five percent at most. “As long as this potential is realized, he will be fine because that is enough to close the gap between China and the US,” said the anonymous analyst. “He is more interested in whether China can win the technology race. That’s not only important for growth, but also for the military.”
The mention of reducing financial risks in Monday’s report clearly refers to the property sector. After decades of overinvestment and absurd price increases, people in China have to pay more for housing than anywhere else in the world. A reasonable apartment in Shanghai costs 26 average annual salaries – in Germany, it is 15, and in Singapore, only 6.
The bubble burst three years ago and property companies went bust by the dozen. The construction boom had fuelled growth in the past. Now, a mountain of debt and a lot of vacancies remain. Instead, the plan is to channel more money into future-oriented sectors such as technology and new energy, where investments are actually worthwhile.
The internal criticism is hard to miss. A report on the National Financial Work Conference, which took place at the end of October, already said that China’s financial sector was “unable to provide high-quality and effective support” to the real economy. This conference resulted in the Central Finance Commission, now chaired by Li.
The documents contain fairly direct criticisms of excessive debt and excessive speculation in the property sector. A delicate detail: Although the course was set under Xi’s predecessors, Xi has already been in office for ten years. The reference to the lack of early warning systems is probably meant to distract from his direct responsibility. Instead, one word now crops up in all the reporting on the reorganization of the financial system: Quality.
Alongside the new solidity, the leadership is now apparently also realigning itself to the average citizen’s needs. According to Xinhua, the new Finance Commission is to submit strategy papers on the following issues in the near future:
The leadership obviously sees an urgent need for improvements on social issues. They are nervous. After all, regular protests are already taking place against the loss of people’s savings in the property market.
This is probably also why the government has one foot on the gas while the other is already on the brakes. While the Finance Commission announces this new solidity, it also issues a decree to the banks not to drop the property sector completely. Collaboration: Liu Yi
China’s President Xi Jinping and French President Emmanuel Macron spoke in favor of a two-state solution to the conflict between Israelis and Palestinians in a telephone conversation on Monday. This was reported by Chinese state television. The two reportedly agreed that this was the “fundamental way” to resolve the conflict. There was initially no official statement from France’s side.
The talk was held on the same day that a delegation of Arab ministers arrived in Beijing. The delegation, which will meet with representatives of all five permanent members of the UN Security Council, called for an immediate ceasefire in the Gaza Strip. The officials include representatives from Saudi Arabia, Jordan, Egypt, Indonesia, the Palestinian authorities and the Organisation of Islamic Cooperation.
“We are here to send a clear signal, that is, we must immediately stop the fighting and the killings, we must immediately deliver humanitarian supplies to Gaza,” said Saudi Foreign Minister Prince Faisal bin Farhan Al Saud. On Monday, the delegation met with China’s Foreign Minister Wang Yi. rtr/grz
Germany’s new immigration law also concerns Ray Wong. This is why the Hong Kong civil rights activist in exile in Germany intends to wait another two or three years before submitting his application for naturalization. Wong believes now that immigration has been made easier for qualified, skilled workers, the authorities will certainly be very busy. That is why he wants to help ease the backlog of applications.
Wong has been living in Germany for six years. He is studying political science in Goettingen. His application for political asylum was granted after he fled his hometown to escape prosecution. In 2015, Wong founded Hong Kong Indigenous, a political organization of young people who fought vehemently against the growing influence of the Chinese central government on the metropolis.
On the democratic wing of the political spectrum, the Indigenous were among the radical advocates of Hong Kong’s secession from the People’s Republic. Critics accused the group of discriminating against Chinese citizens because it strongly denounced the large number of immigrants from the People’s Republic. However, Wong repeatedly emphasized that everyone from China was welcome if they wanted to defend Hong Kong’s democratic and liberal values.
What Wong believed to be right was a thorn in the side of the authorities and led the young man to leave his home country, his family, and his friends. Wong never returned from an authorized trip to Germany in 2017, knowing full well that he would suffer the same fate as many other democratic front figures.
Dozens of politicians, entrepreneurs, media professionals and activists are now on trial for their fight in recent years for Hong Kong’s autonomy until 2047 and universal suffrage. Beijing has broken its promises to the people of the city, installed a governor at its mercy and wiped out political resistance.
For Ray Wong, this means that a return to Hong Kong is out of the question. “The decision to apply for a German passport has been made,” says the 31-year-old, who prefers planning security over uncertainty, which costs him energy and nerves. But his fight for Hong Kong is not over. It continues to determine his thinking, his actions and his future.
For his thesis, he wants to take another close look at the fragmentation of the Hong Kong protest movement in recent years. What will happen next is still undecided. He is considering moving to Berlin to set up and manage a non-governmental organization or a think tank. He is already a regular visitor to the capital for his political activism.
Freiheit für Hongkong e.V. is a non-profit organization based in Berlin. Founded in 2022 by activists from Germany and Hong Kong, the association was established in response to the continuing deterioration of Hong Kong’s human rights situation, according to its website. The goal: a free and democratic Hong Kong. The association works to ensure that the Hong Kong issue is not forgotten in Germany.
Last Friday, supporters met at the European House in Berlin and discussed the importance of Hong Kong and Taiwan for Germany’s China strategy. Theoretically, Wong could also lead such an event in German. He likes the language, and he likes German philosophers. “German gives you the opportunity to express your thoughts more precisely and systematically,” says Wong.
He follows the development of Sino-German relations with interest. Ne noted that the debate has changed. In 2017, it was purely about economic ties. Now, Germany is much more aware that China by no means only offers opportunities, but also poses a genuine threat to its liberal values and independence. The Covid pandemic, the human rights violations against the Uyghurs and, in particular, the radical disenfranchisement of Hong Kong society at the hands of the Chinese central government have changed the way Germans perceive the People’s Republic of China. Marcel Grzanna/Photo: Michael Leh
Train parking zone at Nanjing South Railway Station: Dozens of tracks are lined with serviced high-speed trains ready for their next journey. The route network for the high-speed trains is around 42,000 kilometers long. Its length has increased fivefold since 2010. Comparable networks in the rest of the world are just over 20,000 kilometers long.
War – nothing less seems feasible. Beijing’s threats toward Taiwan once again show that the People’s Republic sees diplomacy as a battering ram that it can wield if necessary.
What has the Chinese government so enraged is the appointment of Hsiao Bi-khim as Taiwan’s vice president-designate if the ruling DPP wins the election. Since 2020, Hsiao has been the de facto ambassador to the USA of a country that, according to Chinese interpretation, does not even exist. Beijing’s opinion of Hsiao is harsh: She is simply an “independence fanatic.” Michael Radunski has taken a look at the explosive developments and put them in context for us.
Incidentally, it is hotspots like Taiwan that have made us in Germany listen up when it comes to the People’s Republic of China. Here in Germany, we have noticed that Beijing is pursuing policies that we, as a liberal society, could never accept. This is what people say who keep a very close eye on us and our relationship with the world’s largest dictatorship.
These include Hong Kong activist Ray Wong, who has been living in exile in Germany for six years and continues his fight for the freedom of his home city from here. Find more about his views, plans and passion for the German language in today’s Heads section.
Meanwhile, Finn Mayer-Kuckuk looks at the newly formed Finance Commission, chaired by Premier Li Qiang. “It had to be Li of all people,” some in the Chinese capital market metropolis of Shanghai might think. After all, Li was personally responsible for the largely pointless lockdown in the city in spring 2022.
It is said that trust in him as a politician has been at rock-bottom ever since. However, the question is whether the Chinese financial market was ever characterized by trust or rather by interests.
On Monday, Lai Ching-te nominated Hsiao Bi-khim as his deputy for the upcoming presidential election in Taiwan. Lai is running for the Democratic Progressive Party (DPP). He is far ahead of the opposition parties in the polls. Should he win the election, Hsiao Bi-khim would become Taiwan’s new vice president.
On short message service X, Lai called Hsiao a “warrior for democracy and one of Taiwan’s most influential ambassadors.” She has worked as Taiwan’s de facto representative to the US since 2020. Since then, relations between the US and Taiwan have intensified considerably.
Hsiao Bi-khim was born in Japan to a Taiwanese father and an American mother. The 52-year-old is considered to be very well-connected in the United States. In Washington, it is said that Hsiao speaks almost daily with senior officials of the Biden administration and maintains very good contacts with the leaders of both parties in Congress. “Taiwan has one of the most effective diplomatic representations in Washington of any country,” said former US national security adviser John Bolton a few months ago.
The United States – like many other countries around the world – does not officially recognize Taiwan as an independent state. Washington pursues a one-China policy and rejects any unilateral change to the status quo in the Taiwan Strait. Informally, however, the United States is Taiwan’s biggest ally – and its largest arms supplier.
Rupert Hammond-Chambers, President of the US-Taiwan Business Council, has known Hsiao since the 1990s. He is convinced that Lai has made a brilliant move by nominating Hsiao. “Bi-khim’s relationships in D.C. will be invaluable to a President Lai,” Hammond-Chambers told Reuters. “If he is elected, she’s going to bring all of those relationships into his government and he doesn’t have those.” Hsiao would give Lai’s candidacy a much-needed diplomatic and security component.
And Lai himself was also delighted with his pick on Monday. “I believe that Bi-khim is definitely an excellent person when it comes to Taiwan’s diplomatic work today, and she is a rare diplomatic talent in our country,” Lai wrote on Facebook, adding that Hsiao had helped strengthen Taiwan’s relations with Washington in recent years. Her efforts have been praised not only by Taiwan and the US, but also by the international community.
Lai and Hsiao face a divided opposition led by the conservative Kuomintang (KMT), which favors rapprochement with China. The ruling DPP, on the other hand, wants closer relations with the United States in order to secure Taiwan’s autonomy. And the center-left Taiwan People’s Party (TPP), which was only founded in 2019. Last week, both opposition parties announced plans to find a joint presidential candidate in order to beat the ruling DPP leading in the polls. However, they have yet to officially reach an agreement. Beijing is suspected to be working behind the scenes to influence companies and the media to support the KMT. The incumbent president, Tsai Ing-wen, cannot run again after two terms in office.
On Monday, the Chinese Foreign Ministry declined to answer questions about Hsiao’s nomination. The foreign ministry spokeswoman in Beijing responded that it was not a diplomatic matter. However, China’s opinion of Hsiao is well known. Beijing has already sanctioned Hsiao twice and labeled her an “independence fanatic.”
Even when just rumors of Hsiao’s possible nomination surfaced, Beijing threatened that it could mean war for Taiwan. On Monday, China’s Taiwan Affairs Office labeled Lai and Hsiao an “independence double act,” adding that Taiwan’s people were “very clear” about what their partnership meant for the “situation in the Taiwan Strait.”
When DPP’s top candidate Lai was asked about these comments, he outright dismissed the “thoughtless remarks”. “This is sufficient to prove that China is intervening in this election,” he told reporters. “We only put importance on our people’s issues.”
Indeed, by nominating Hsiao Bi-khim, Lai has struck a double coup: Domestically, he strengthens his team with competence and mobilizes DPP supporters critical of Beijing. And on the foreign policy front, he strengthens ties with Taiwan’s biggest international partners.
Premier Li Qiang personally heads the newly formed Central Finance Commission. This was reported by Xinhua. He chaired the Commission’s first meeting on Monday. The new body is the party’s attempt to consolidate control over the financial system.
On the one hand, Li is the logical choice. He is considered pro-business and is a loyal party soldier in the service of General Secretary Xi Jinping. In any case, the Premier should be in charge of economic growth. But the announcement leaves mixed feelings. Li ruthlessly enforced the largely pointless lockdown in Shanghai in the spring of 2022. Trust in him as a politician has been at rock bottom ever since. Shanghai – this is China’s financial metropolis.
According to the Xinhua report, the following priorities will be set for China’s capital system:
These are strong signals. Significant growth can be expected in these areas in the coming years. At the same time, Xi Jinping’s goal is to reduce financial risks and pursue a robust central bank policy. In addition, early warning systems will be improved to recognize financial bubbles early on.
In other words, there will be no debt-financed economic bonanza for the time being. “Xi will be in office for a long time, he doesn’t want to create problems for himself,” surmises a Beijing financial expert who wishes to remain anonymous. After all, he has already inherited the high debts of local governments and property developers from his predecessors. But those who rule for life cannot pass the buck.
Xi is apparently not ambitious when it comes to the growth rate. Economists in Beijing believe that without new, substantial support for the property sector, the growth potential will only be around four or five percent at most. “As long as this potential is realized, he will be fine because that is enough to close the gap between China and the US,” said the anonymous analyst. “He is more interested in whether China can win the technology race. That’s not only important for growth, but also for the military.”
The mention of reducing financial risks in Monday’s report clearly refers to the property sector. After decades of overinvestment and absurd price increases, people in China have to pay more for housing than anywhere else in the world. A reasonable apartment in Shanghai costs 26 average annual salaries – in Germany, it is 15, and in Singapore, only 6.
The bubble burst three years ago and property companies went bust by the dozen. The construction boom had fuelled growth in the past. Now, a mountain of debt and a lot of vacancies remain. Instead, the plan is to channel more money into future-oriented sectors such as technology and new energy, where investments are actually worthwhile.
The internal criticism is hard to miss. A report on the National Financial Work Conference, which took place at the end of October, already said that China’s financial sector was “unable to provide high-quality and effective support” to the real economy. This conference resulted in the Central Finance Commission, now chaired by Li.
The documents contain fairly direct criticisms of excessive debt and excessive speculation in the property sector. A delicate detail: Although the course was set under Xi’s predecessors, Xi has already been in office for ten years. The reference to the lack of early warning systems is probably meant to distract from his direct responsibility. Instead, one word now crops up in all the reporting on the reorganization of the financial system: Quality.
Alongside the new solidity, the leadership is now apparently also realigning itself to the average citizen’s needs. According to Xinhua, the new Finance Commission is to submit strategy papers on the following issues in the near future:
The leadership obviously sees an urgent need for improvements on social issues. They are nervous. After all, regular protests are already taking place against the loss of people’s savings in the property market.
This is probably also why the government has one foot on the gas while the other is already on the brakes. While the Finance Commission announces this new solidity, it also issues a decree to the banks not to drop the property sector completely. Collaboration: Liu Yi
China’s President Xi Jinping and French President Emmanuel Macron spoke in favor of a two-state solution to the conflict between Israelis and Palestinians in a telephone conversation on Monday. This was reported by Chinese state television. The two reportedly agreed that this was the “fundamental way” to resolve the conflict. There was initially no official statement from France’s side.
The talk was held on the same day that a delegation of Arab ministers arrived in Beijing. The delegation, which will meet with representatives of all five permanent members of the UN Security Council, called for an immediate ceasefire in the Gaza Strip. The officials include representatives from Saudi Arabia, Jordan, Egypt, Indonesia, the Palestinian authorities and the Organisation of Islamic Cooperation.
“We are here to send a clear signal, that is, we must immediately stop the fighting and the killings, we must immediately deliver humanitarian supplies to Gaza,” said Saudi Foreign Minister Prince Faisal bin Farhan Al Saud. On Monday, the delegation met with China’s Foreign Minister Wang Yi. rtr/grz
Germany’s new immigration law also concerns Ray Wong. This is why the Hong Kong civil rights activist in exile in Germany intends to wait another two or three years before submitting his application for naturalization. Wong believes now that immigration has been made easier for qualified, skilled workers, the authorities will certainly be very busy. That is why he wants to help ease the backlog of applications.
Wong has been living in Germany for six years. He is studying political science in Goettingen. His application for political asylum was granted after he fled his hometown to escape prosecution. In 2015, Wong founded Hong Kong Indigenous, a political organization of young people who fought vehemently against the growing influence of the Chinese central government on the metropolis.
On the democratic wing of the political spectrum, the Indigenous were among the radical advocates of Hong Kong’s secession from the People’s Republic. Critics accused the group of discriminating against Chinese citizens because it strongly denounced the large number of immigrants from the People’s Republic. However, Wong repeatedly emphasized that everyone from China was welcome if they wanted to defend Hong Kong’s democratic and liberal values.
What Wong believed to be right was a thorn in the side of the authorities and led the young man to leave his home country, his family, and his friends. Wong never returned from an authorized trip to Germany in 2017, knowing full well that he would suffer the same fate as many other democratic front figures.
Dozens of politicians, entrepreneurs, media professionals and activists are now on trial for their fight in recent years for Hong Kong’s autonomy until 2047 and universal suffrage. Beijing has broken its promises to the people of the city, installed a governor at its mercy and wiped out political resistance.
For Ray Wong, this means that a return to Hong Kong is out of the question. “The decision to apply for a German passport has been made,” says the 31-year-old, who prefers planning security over uncertainty, which costs him energy and nerves. But his fight for Hong Kong is not over. It continues to determine his thinking, his actions and his future.
For his thesis, he wants to take another close look at the fragmentation of the Hong Kong protest movement in recent years. What will happen next is still undecided. He is considering moving to Berlin to set up and manage a non-governmental organization or a think tank. He is already a regular visitor to the capital for his political activism.
Freiheit für Hongkong e.V. is a non-profit organization based in Berlin. Founded in 2022 by activists from Germany and Hong Kong, the association was established in response to the continuing deterioration of Hong Kong’s human rights situation, according to its website. The goal: a free and democratic Hong Kong. The association works to ensure that the Hong Kong issue is not forgotten in Germany.
Last Friday, supporters met at the European House in Berlin and discussed the importance of Hong Kong and Taiwan for Germany’s China strategy. Theoretically, Wong could also lead such an event in German. He likes the language, and he likes German philosophers. “German gives you the opportunity to express your thoughts more precisely and systematically,” says Wong.
He follows the development of Sino-German relations with interest. Ne noted that the debate has changed. In 2017, it was purely about economic ties. Now, Germany is much more aware that China by no means only offers opportunities, but also poses a genuine threat to its liberal values and independence. The Covid pandemic, the human rights violations against the Uyghurs and, in particular, the radical disenfranchisement of Hong Kong society at the hands of the Chinese central government have changed the way Germans perceive the People’s Republic of China. Marcel Grzanna/Photo: Michael Leh
Train parking zone at Nanjing South Railway Station: Dozens of tracks are lined with serviced high-speed trains ready for their next journey. The route network for the high-speed trains is around 42,000 kilometers long. Its length has increased fivefold since 2010. Comparable networks in the rest of the world are just over 20,000 kilometers long.
