G7 and NATO call for China’s help against Russia
Ukraine crisis: West increases pressure on Beijing
China’s elite youth is to move abroad – and then come back
IfW series: WTO complaint over Lithuania dispute is ‘right’
Hong Kong faces exodus of companies
Beijing presents hydrogen strategy
Afghanistan could become part of the Silk Road
Profile: Stefanie Thiedig – author and art connoisseur
Dear reader,
Xi Jinping has certainly accomplished one thing with his idealistic support for Russia. The West is courting his favor more intensively than ever. In light of China’s return to its former glory, this must seem like a success. The US and the EU are now mixing pleas with threats: China must urge Russia to withdraw its troops. But if it provides material support, sanctions may follow. This was one of the main topics at the NATO and G7 summits. But China continues to keep the West on tenterhooks, gaining influence in the meantime, analyze Amelie Richter and Christiane Kuehl.
Becoming rich and moving abroad – that has long been the goal of many Chinese. However, the latest report from the consulting firm Hurun now turns the topic around and looks at the reasons for coming back to China. This is very much in line with the government’s plans: Young people should certainly study abroad, but should carry what they have learned back to their home country. Our Beijing team analyzes what else has changed on the current Hurun rich list. Tech billionaires seem to be on the decline. This is a consequence of the hard blows against China’s overpowering Internet companies.
Your Finn Mayer-Kuckuk
Feature
Ukraine crisis: The West increases pressure on Beijing
Clear words to China: NATO Secretary-General Jens Stoltenberg (center) at the traditional “family photo” of the alliance.
Western alliances are determined at all costs to prevent Beijing from moving closer to Russia or even supplying Moscow with weapons. During the marathon summit of NATO, the G7 and the European Union in Brussels on Thursday, politicians repeatedly urged China to distance itself from Russia. But so far, Beijing has responded as expected. Not a word of criticism of Russia, but all the more critical of the United States and NATO.
US President Joe Biden nevertheless expressed optimism at the end of the long day that China would eventually turn against Russia over trade dependencies. “China understands that its economic future is much more closely tied to the West than it is to Russia,” Biden said after meeting with his G7 colleagues about his conversation with China’s leader Xi Jinping. Trust is good, but control is apparently better: Biden proposed a new body for NATO and the EU. This body should monitor whether and, if so, how other countries circumvent sanctions against Russia. He was referring to China.
NATO mentions no consequences for military aid
NATO Secretary-General Jens Stoltenberg also made his position clear after the defense alliance’s special summit: “Beijing should use its significant influence on Russia and promote an immediate peaceful resolution,” the NATO chief said. However, he did not specify what steps NATO would consider in response to Chinese aid to Russia. The summit statement by NATO states also includes this demand. Member states had unanimously adopted the document – including Hungary, which had previously been rather reluctant.
On Wednesday, Stoltenberg had already accused China of supporting Russia in the Ukraine war with “blatant lies.” The US and Europe have criticized China for spreading Russian fake news about alleged US chemical weapons labs in Ukraine. “Accusing China of spreading disinformation on Ukraine is disinformation in itself,” a Chinese Foreign Ministry spokesman commented on Thursday in what has since become a familiar fashion.
In their final statement, the G7 leaders were less straightforward than NATO: The group of states would keep an eye on whether sanctions were being circumvented or undermined, the statement said – without naming China.
The Council of EU heads of state and government met late into the evening on Thursday. US President Biden also made an appearance – in part, as he said, to discuss a common position ahead of next week’s EU-China summit. “I think the messages to China have been very, very clear,” said Belgian Prime Minister Alexander De Croo on Thursday. The majority of EU leaders made similar statements.
China avoids any clear statement
Meanwhile, Beijing’s foreign office spokesman stressed that China’s position is in line with “the wishes of most countries.” “We have always maintained that Ukraine should become a bridge between the East and West, rather than be in the frontline in a game between great powers.” But in the end, China tolerates just that: That Russia sees Ukraine as a buffer state to the West and as its own sphere of influence, with no say in its own role. Xi has spoken with some leaders since the war began, but not with Ukrainian President Volodymyr Zelenskyy.
China, in the meantime, continues to try and avoid making a clear statement by all means: The less Ukraine becomes an issue at all at multilateral events, the better it is for Beijing. Both Foreign Minister Wang Yi and Xi himself have been urging the Indonesian G20 presidency to remove the Ukraine conflict from the agenda of the G20 summit on the tropical island of Bali at the end of October. Indonesia reportedly showed itself to be open to the idea. China is also in favor of inviting Vladimir Putin to the G20 summit table – but that has long since become out of the question for many other countries. On Thursday, US President Biden even spoke out in favor of Russia’s total exclusion from the G20. Should this not be supported by other states, Ukraine should also be invited, Biden suggested.
However, Chinese Ambassador to the United States Qin Gang indicated that cooperation with Russia could still have its limits. “There is no forbidden zone for cooperation between China and Russia, but there is also a bottom line,” Qin told the partly state-run Phoenix TV on Wednesday. This includes the principles of the United Nations Charter, which is the basic norm of international law and international relations, Qin said. “This is the guideline we follow in bilateral relations between China and any other country.”
Pressure remains high ahead of EU-China summit
The pressure on Beijing will not ease anytime soon – it will also dominate the EU-China summit. The Ukraine war will be the focus of the virtual summit on Friday next week, EU Council President Charles Michel wrote in his invitation letter to the other EU heads of state and government.
The summit between Michel, EU Commission President Ursula von der Leyen, Xi Jinping and Premier Li Keqiang is the first since June 2020. Last year, a date for a bilateral meeting was repeatedly postponed due to mutual sanctions related to human rights violations in Xinjiang. But the mood is still not exactly positive. No joint final declaration is expected at the summit – an indication that no one expects any significant progress. Amelie Richter/Christiane Kuehl
EU
G7
Geopolitics
Nato
Russia
Ukraine
Hurun Report: return migration becomes core topic
Until a few years ago, the Hurun Research Institute produced headlines about Chinese citizens willing to emigrate. The company had regularly polled the super-rich in the People’s Republic and came up with some astonishing results. In 2017, for example, around half of those surveyed wanted to turn their backs on their home country and emigrate, according to Hurun. This was a thorn in the government’s side: It does not fit China’s narrative that it is about to catch up with the US in many areas.
The Chinese government is therefore all the more pleased with the latest Hurun White Paper on international education in China. The trend among the country’s millionaires to educate their offspring overseas continues unabated. But the report, unlike in the past, addresses the reasons why Chinese parents want to see their children back home after their education.
“Favorable economic conditions (59%), a favorable startup ecosystem (56%), family and friends (52%), and favorable return-home policies (51%)” – in other words, the government’s efforts to ensure the well-being of returnees – were cited as the main reasons. While Hurun previously asked what encouraged the desire to live overseas, the focus now is on finding reasons to return.
One reason for the change of tack is likely to be Hurun’s partnership with the Beanstalk Education Group. The company offers expensive educational programs ranging from preschool to high school graduation at 20 locations in the People’s Republic. On its website, Beanstalk states that it encourages “young future forces to have adventures, both going abroad and returning to their home country of China.”
The rich do not really feel safe in China
These messages should also better suit the leadership. After all, the elite’s tendency to leave the country did not go unnoticed by ordinary people in China. With typical Chinese sarcasm, ordinary citizens (老百姓) redefined President Xi Jinping’s Chinese dream in their own way: Get rich in the country and get out as fast as possible – ideally with foreign citizenship.
However, surveys looking at reasons for emigration have not been published since 2018. In 2018, Hurun revisited the topic of immigration among wealthy Chinese, but already turned the passion of the rich for a life outside their home country into a positive: Nine out of ten who fancied a life overseas were considering spending their retirement in China.
In previous years, China’s wealthy had repeatedly cited a lack of education, environmental pollution, and a politically unstable environment as reasons why they wanted to leave the country. Those who become rich in China cannot be sure to retain their wealth. The Communist Party’s goodwill can turn against the rich very quickly.
White paper also reveals what rich Chinese miss
Emigration enthusiasm among the upper classes did not do the country’s reputation any favors, especially not domestically. It is difficult to convey a sense of happiness to the masses when those who can afford it are desperate to leave. A year and a half ago, the case of Yang Huiyan caused a stir. Asia’s richest woman, with a net worth of around $20 billion, was one of several hundred Chinese citizens who had obtained a so-called golden passport in Cyprus, meaning that they were rewarded with naturalization for investing heavily in the EU country.
The spirit of returning now hovers over the latest Hurun Report as well. According to the report, security concerns (71 percent) are among parents’ biggest fears, followed by concerns about the ability to integrate abroad (52 percent) and the loss of cultural identity (51 percent). And yet, the white paper reveals what wealthy Chinese think is lacking in the country. Many would like their children to be “exposed to new ideas” (69 percent) and see a stay abroad as an “enrichment for life” (64 percent). Greater independence (71 percent) and responsibility (67 percent) as well as the ability to be “better at problem solving” (51 percent) are additional benefits of a move abroad.
In recent months, many super-rich people have experienced first-hand just how fragile the accumulation of wealth can be in China. Zhang Yiming, founder of TikTok parent ByteDance, is the only Chinese tech billionaire of note whose fortune has not dramatically dwindled amid Beijing’s tech crackdown.
In the current billionaire ranking of the Chinese Hurun Report, Zhang’s fortune was estimated at $53 billion, the same as last year – which put him in second place among China’s richest. Zhang was probably spared because his company has not yet been listed on the stock exchange. This is because the regulatory campaign has caused tech stocks to plummet.
The leadership gives it, the leadership takes it
Alibaba founder Jack Ma, on the other hand, was among the biggest losers. He lost about a third of his wealth on paper, which is still estimated at around $37 billion. Huang Zheng, founder of direct Alibaba competitor Pinduoduo, lost as much as 72 percent of his wealth, leaving him with $19 billion. According to Hurun, nine of the top ten losers among global billionaires last year came from China. Apart from them, only Facebook CEO Mark Zuckerberg made it onto this negative list. As in the previous year, China’s richest person was water mogul Zhong Shanshan, whose business is of no concern to tech regulators.
For as quickly as the Chinese leadership can destroy assets, so, too, can it create them. Thanks to massive state support, huge new industries have sprouted up in recent years. And these have made some people very rich. Take Zeng Yuqun, the founder of EV battery maker CATL. Zeng’s fortune grew by 56 percent last year to $53 billion, thanks to CATL’s soaring stock price. As a result, he ranked third among Chinese billionaires for the first time. No fewer than seven CATL co-founders and managers appear in this year’s Hurun billionaire ranking.
Other industries that China’s leadership considers strategically important also benefited in a similar way. One of the biggest wealth gainers by percentage is Gao Jifan, founder of the solar company Trina Solar. He increased his wealth by 227 percent in one year to $8.5 billion. Some chip and pharmaceutical entrepreneurs also made strong gains. Marcel Grzanna/Jörn Petring/Gregor Koppenburg
Education
Jack Ma
Society
News
IfW event on Lithuania dispute: The WTO is the right way
Appealing to the World Trade Organization (WTO) is the EU’s correct response to the dispute with China over Lithuania – but at the same time, the chances of a clear ruling are low. This is the conclusion of a discussion event in the Global China Conversations series at the Kiel Institute for the World Economy (IfW Kiel). The filing of a complaint with the WTO “was the right step in our opinion,” says economist Juergen Matthes of IW Cologne. China’s behavior toward Lithuania (China.Table reported) would thus be denounced in front of its other trading partners. The EU is thus bringing its complaint “to the world public.”
But researchers also dampen hopes that the EU could emerge victorious. They also warn that a quick verdict is practically impossible – the process could drag on for months or even years. “The concrete chances of success are low due to legal uncertainties,” says economist Christian Hederer of the Technical University of Wildau.
The WTO dispute settlement is a multi-stage process. On the one hand, China can claim that it has safeguarded its security interests by imposing a trade ban on Lithuania. It used to be unusual to apply this clause so broadly. But Donald Trump has exploited it for attacks against China, causing the practice to erode.
On the other hand, China can claim that there has never been a boycott of Lithuanian goods. Indeed, Beijing has never referred to the trade measures as punitive, even though it was the most extensive embargo ever seen in peacetime. Instead, China has at times blamed computer errors, at other times a lack of consumer demand for Lithuanian goods. The burden of proof now presumably lies with the EU as plaintiff, the researchers say. The argument offers plenty of material to keep lawyers busy for a long time.
Despite the hurdles, it is right to go down the World Trade Organization route, say the two economists. This way, the EU shows that it is interested in internationally defined mechanisms. The WTO was a success story before tensions between the trading blocs deprived it of its working basis. And since it has become less effective today, the EU needs its own defense mechanisms, such as the Anti-Coercion Instrument (China.Table reported). However, its application might not be WTO-compliant, which would create new complications. fin
Hong Kong faces an exodus of European companies. In a new survey by the EU Chamber of Commerce, around 25 percent of companies surveyed stated that they intended to turn their backs on the city completely within the next twelve months. Another 24 percent of companies indicated plans for a partial withdrawal from Hong Kong. Only one in six companies surveyed responded that they had no plans for a withdrawal. The survey was compiled between mid-January and mid-February, Bloomberg reported. 260 respondents took part in the survey.
“Looking at the comparatively overwhelming participation of our members, the result should serve as a clear warning that the last months and years have strained the European economy and its confidence,” said Frederik Gollob, Chairman of the European Chamber, cited by Bloomberg. Referring to current Covid containment measures, Gollob concluded that there is a need for “a clear plan for a return to normalcy.” nib
Coronavirus
Health
Hongkong
Plans for hydrogen industry by 2025
China aims to produce between 100,000 and 200,000 tons of green hydrogen annually by 2025. To this end, a strong hydrogen industry is to be built in the long term. That is according to a new plan presented by the National Development and Reform Commission (NDRC) on Wednesday. It also aims to put 50,000 hydrogen vehicles on the road by 2025, Reuters reports. This also includes trucks.
Green hydrogen is expected to help meet national climate goals, said Wang Xiang, Deputy Director of the High Technology Department at the NDRC. Hydrogen is “an important component” of China’s future energy system, according to the plan. In the short term, however, green hydrogen is unlikely to have positive climate effects. China currently produces 33 million tons of hydrogen per year. According to the government, about 80 percent is generated using coal and natural gas, with the remainder being mainly a byproduct of the industry. Accordingly, 200,000 tons of green hydrogen would merely be a drop in the ocean.
Climate-damaging hydrogen currently dominates
Wang said that while most of China’s hydrogen is produced from fossil fuels, the potential of green hydrogen is enormous, as the country has the world’s largest renewable energy capacity. Almost all provinces and regions in China have included hydrogen in their development plans. More than 120 green hydrogen projects are currently being developed.
According to the NDRC, China’s hydrogen industry is still at an early stage of development. The industrial innovation capability is not yet too strong. The industry would still rely on imports for key components and basic materials. The competitiveness of the industry should be strengthened. nib
Grüner Wasserstoff
NDRC
Taliban could be integrated into Silk Road
China’s Foreign Minister Wang Yi met his counterpart Amir Khan Muttaqi in Kabul on Thursday. The meeting is the highest-level visit by a Chinese official since the Taliban seized power last year. Wang and Muttaqi discussed a possible role for Afghanistan in the Belt and Road Initiative and the launch of work in the mining sector, Reuters reported. China is willing to work to expand the China-Pakistan Economic Corridor to Afghanistan, a Foreign Ministry statement said. The corridor is one of the most important Silk Road projects. So far, Beijing has not formally recognized the Taliban government in Afghanistan.
Just the day before Wang’s visit, the Taliban had banned girls from attending secondary schools. This represents an abrupt change after the Taliban had previously stated that schools were open to all students. China will host a meeting of regional foreign ministers later this month, which Muttaqi will also attend, according to Reuters. nib
Afghanistan
Geopolitics
New Silk Road
Profile
Stefanie Thiedig – connoisseur of Beijing’s art and culture scene
Stefanie Thiedig, blogger, photographer and author of the travel book 111 Places in Beijing.
Who doesn’t know the situation – the school years are finally over, but what now? This situation drew Stefanie Thiedig to the Middle Kingdom for the first time in 2000. Through an ad in the German national weekly Zeit, she applied for a year of Chinese language study in Beijing. It was the first of many stays. As a sinologist, she ventured into self-employment at the beginning of 2009, after she was deterred by the hierarchical structures during her first steps on Beijing’s job market. “At least fifty percent of what you do all day long has to be interesting in some way,” is how she has blithely described her life motto ever since.
In 2011, she decided to pursue a master’s degree in photography. “So that I can also express myself with photography as a visual medium,” Thiedig explains her motivation. Her proficiency in the Chinese language and culture, as well as photography, has borne much fruit since then. She works on China-related cultural projects for clients such as the Goethe Institute and the German Embassy. Together with a friend, she published her first book in 2010: “Culturescapes” which is dedicated to Beijing’s art scene from 2000 to 2010. Moreover, Stefanie Thiedig runs the platform Kulturgut.blogger.de, where she shares impressions of current exhibitions, among other things.
China’s compartmentalization is a deterrent
A very personal project in 2017 was working on her third book, “111 Places in Beijing You Must See”. Knowing that she would soon be leaving China, it was a kind of recap of her ten years’ stay. “Then the political stuff got more and more up my neck,” Stefanie Thiedig explains about her decision to return to Germany. However, because of the current state of increased isolation in China and the skepticism in dealing with this situation in Germany, she emphasizes that exchange remains absolutely relevant.
Staying true to her ability to turn passions into a profession, Stefanie Thiedig also likes to venture out into nature with a camera in her spare time. Even when looking at the German landscape, her photos are sometimes inspired by Chinese landscape painting, she says. She is drawn back to China, but the political situation and Covid measures have made it difficult to return for the past two years. Stefanie Thiedig’s current project with the Goethe-Institut is called German-Chinese Museum Talks and is aimed at curators from Germany and China. During a series of workshops, she had the feeling that she was currently missing out on something in China. Pia Wieners
Culture
Society
Executive Moves
Jia Hang will become Regional Head for Ant Group’s Southeast Asian market. The fintech company, which belongs to Alibaba Group Holding, has newly created this post.
Zhang Ke, previously Chief Auditor of the National Audit Office, was demoted. He now serves as Deputy Chief Auditor.
Dessert
Modern caravan – transporting of goods through Shanghai on the Huangpu River.
Ukraine crisis: West increases pressure on Beijing
China’s elite youth is to move abroad – and then come back
IfW series: WTO complaint over Lithuania dispute is ‘right’
Hong Kong faces exodus of companies
Beijing presents hydrogen strategy
Afghanistan could become part of the Silk Road
Profile: Stefanie Thiedig – author and art connoisseur
Dear reader,
Xi Jinping has certainly accomplished one thing with his idealistic support for Russia. The West is courting his favor more intensively than ever. In light of China’s return to its former glory, this must seem like a success. The US and the EU are now mixing pleas with threats: China must urge Russia to withdraw its troops. But if it provides material support, sanctions may follow. This was one of the main topics at the NATO and G7 summits. But China continues to keep the West on tenterhooks, gaining influence in the meantime, analyze Amelie Richter and Christiane Kuehl.
Becoming rich and moving abroad – that has long been the goal of many Chinese. However, the latest report from the consulting firm Hurun now turns the topic around and looks at the reasons for coming back to China. This is very much in line with the government’s plans: Young people should certainly study abroad, but should carry what they have learned back to their home country. Our Beijing team analyzes what else has changed on the current Hurun rich list. Tech billionaires seem to be on the decline. This is a consequence of the hard blows against China’s overpowering Internet companies.
Your Finn Mayer-Kuckuk
Feature
Ukraine crisis: The West increases pressure on Beijing
Clear words to China: NATO Secretary-General Jens Stoltenberg (center) at the traditional “family photo” of the alliance.
Western alliances are determined at all costs to prevent Beijing from moving closer to Russia or even supplying Moscow with weapons. During the marathon summit of NATO, the G7 and the European Union in Brussels on Thursday, politicians repeatedly urged China to distance itself from Russia. But so far, Beijing has responded as expected. Not a word of criticism of Russia, but all the more critical of the United States and NATO.
US President Joe Biden nevertheless expressed optimism at the end of the long day that China would eventually turn against Russia over trade dependencies. “China understands that its economic future is much more closely tied to the West than it is to Russia,” Biden said after meeting with his G7 colleagues about his conversation with China’s leader Xi Jinping. Trust is good, but control is apparently better: Biden proposed a new body for NATO and the EU. This body should monitor whether and, if so, how other countries circumvent sanctions against Russia. He was referring to China.
NATO mentions no consequences for military aid
NATO Secretary-General Jens Stoltenberg also made his position clear after the defense alliance’s special summit: “Beijing should use its significant influence on Russia and promote an immediate peaceful resolution,” the NATO chief said. However, he did not specify what steps NATO would consider in response to Chinese aid to Russia. The summit statement by NATO states also includes this demand. Member states had unanimously adopted the document – including Hungary, which had previously been rather reluctant.
On Wednesday, Stoltenberg had already accused China of supporting Russia in the Ukraine war with “blatant lies.” The US and Europe have criticized China for spreading Russian fake news about alleged US chemical weapons labs in Ukraine. “Accusing China of spreading disinformation on Ukraine is disinformation in itself,” a Chinese Foreign Ministry spokesman commented on Thursday in what has since become a familiar fashion.
In their final statement, the G7 leaders were less straightforward than NATO: The group of states would keep an eye on whether sanctions were being circumvented or undermined, the statement said – without naming China.
The Council of EU heads of state and government met late into the evening on Thursday. US President Biden also made an appearance – in part, as he said, to discuss a common position ahead of next week’s EU-China summit. “I think the messages to China have been very, very clear,” said Belgian Prime Minister Alexander De Croo on Thursday. The majority of EU leaders made similar statements.
China avoids any clear statement
Meanwhile, Beijing’s foreign office spokesman stressed that China’s position is in line with “the wishes of most countries.” “We have always maintained that Ukraine should become a bridge between the East and West, rather than be in the frontline in a game between great powers.” But in the end, China tolerates just that: That Russia sees Ukraine as a buffer state to the West and as its own sphere of influence, with no say in its own role. Xi has spoken with some leaders since the war began, but not with Ukrainian President Volodymyr Zelenskyy.
China, in the meantime, continues to try and avoid making a clear statement by all means: The less Ukraine becomes an issue at all at multilateral events, the better it is for Beijing. Both Foreign Minister Wang Yi and Xi himself have been urging the Indonesian G20 presidency to remove the Ukraine conflict from the agenda of the G20 summit on the tropical island of Bali at the end of October. Indonesia reportedly showed itself to be open to the idea. China is also in favor of inviting Vladimir Putin to the G20 summit table – but that has long since become out of the question for many other countries. On Thursday, US President Biden even spoke out in favor of Russia’s total exclusion from the G20. Should this not be supported by other states, Ukraine should also be invited, Biden suggested.
However, Chinese Ambassador to the United States Qin Gang indicated that cooperation with Russia could still have its limits. “There is no forbidden zone for cooperation between China and Russia, but there is also a bottom line,” Qin told the partly state-run Phoenix TV on Wednesday. This includes the principles of the United Nations Charter, which is the basic norm of international law and international relations, Qin said. “This is the guideline we follow in bilateral relations between China and any other country.”
Pressure remains high ahead of EU-China summit
The pressure on Beijing will not ease anytime soon – it will also dominate the EU-China summit. The Ukraine war will be the focus of the virtual summit on Friday next week, EU Council President Charles Michel wrote in his invitation letter to the other EU heads of state and government.
The summit between Michel, EU Commission President Ursula von der Leyen, Xi Jinping and Premier Li Keqiang is the first since June 2020. Last year, a date for a bilateral meeting was repeatedly postponed due to mutual sanctions related to human rights violations in Xinjiang. But the mood is still not exactly positive. No joint final declaration is expected at the summit – an indication that no one expects any significant progress. Amelie Richter/Christiane Kuehl
EU
G7
Geopolitics
Nato
Russia
Ukraine
Hurun Report: return migration becomes core topic
Until a few years ago, the Hurun Research Institute produced headlines about Chinese citizens willing to emigrate. The company had regularly polled the super-rich in the People’s Republic and came up with some astonishing results. In 2017, for example, around half of those surveyed wanted to turn their backs on their home country and emigrate, according to Hurun. This was a thorn in the government’s side: It does not fit China’s narrative that it is about to catch up with the US in many areas.
The Chinese government is therefore all the more pleased with the latest Hurun White Paper on international education in China. The trend among the country’s millionaires to educate their offspring overseas continues unabated. But the report, unlike in the past, addresses the reasons why Chinese parents want to see their children back home after their education.
“Favorable economic conditions (59%), a favorable startup ecosystem (56%), family and friends (52%), and favorable return-home policies (51%)” – in other words, the government’s efforts to ensure the well-being of returnees – were cited as the main reasons. While Hurun previously asked what encouraged the desire to live overseas, the focus now is on finding reasons to return.
One reason for the change of tack is likely to be Hurun’s partnership with the Beanstalk Education Group. The company offers expensive educational programs ranging from preschool to high school graduation at 20 locations in the People’s Republic. On its website, Beanstalk states that it encourages “young future forces to have adventures, both going abroad and returning to their home country of China.”
The rich do not really feel safe in China
These messages should also better suit the leadership. After all, the elite’s tendency to leave the country did not go unnoticed by ordinary people in China. With typical Chinese sarcasm, ordinary citizens (老百姓) redefined President Xi Jinping’s Chinese dream in their own way: Get rich in the country and get out as fast as possible – ideally with foreign citizenship.
However, surveys looking at reasons for emigration have not been published since 2018. In 2018, Hurun revisited the topic of immigration among wealthy Chinese, but already turned the passion of the rich for a life outside their home country into a positive: Nine out of ten who fancied a life overseas were considering spending their retirement in China.
In previous years, China’s wealthy had repeatedly cited a lack of education, environmental pollution, and a politically unstable environment as reasons why they wanted to leave the country. Those who become rich in China cannot be sure to retain their wealth. The Communist Party’s goodwill can turn against the rich very quickly.
White paper also reveals what rich Chinese miss
Emigration enthusiasm among the upper classes did not do the country’s reputation any favors, especially not domestically. It is difficult to convey a sense of happiness to the masses when those who can afford it are desperate to leave. A year and a half ago, the case of Yang Huiyan caused a stir. Asia’s richest woman, with a net worth of around $20 billion, was one of several hundred Chinese citizens who had obtained a so-called golden passport in Cyprus, meaning that they were rewarded with naturalization for investing heavily in the EU country.
The spirit of returning now hovers over the latest Hurun Report as well. According to the report, security concerns (71 percent) are among parents’ biggest fears, followed by concerns about the ability to integrate abroad (52 percent) and the loss of cultural identity (51 percent). And yet, the white paper reveals what wealthy Chinese think is lacking in the country. Many would like their children to be “exposed to new ideas” (69 percent) and see a stay abroad as an “enrichment for life” (64 percent). Greater independence (71 percent) and responsibility (67 percent) as well as the ability to be “better at problem solving” (51 percent) are additional benefits of a move abroad.
In recent months, many super-rich people have experienced first-hand just how fragile the accumulation of wealth can be in China. Zhang Yiming, founder of TikTok parent ByteDance, is the only Chinese tech billionaire of note whose fortune has not dramatically dwindled amid Beijing’s tech crackdown.
In the current billionaire ranking of the Chinese Hurun Report, Zhang’s fortune was estimated at $53 billion, the same as last year – which put him in second place among China’s richest. Zhang was probably spared because his company has not yet been listed on the stock exchange. This is because the regulatory campaign has caused tech stocks to plummet.
The leadership gives it, the leadership takes it
Alibaba founder Jack Ma, on the other hand, was among the biggest losers. He lost about a third of his wealth on paper, which is still estimated at around $37 billion. Huang Zheng, founder of direct Alibaba competitor Pinduoduo, lost as much as 72 percent of his wealth, leaving him with $19 billion. According to Hurun, nine of the top ten losers among global billionaires last year came from China. Apart from them, only Facebook CEO Mark Zuckerberg made it onto this negative list. As in the previous year, China’s richest person was water mogul Zhong Shanshan, whose business is of no concern to tech regulators.
For as quickly as the Chinese leadership can destroy assets, so, too, can it create them. Thanks to massive state support, huge new industries have sprouted up in recent years. And these have made some people very rich. Take Zeng Yuqun, the founder of EV battery maker CATL. Zeng’s fortune grew by 56 percent last year to $53 billion, thanks to CATL’s soaring stock price. As a result, he ranked third among Chinese billionaires for the first time. No fewer than seven CATL co-founders and managers appear in this year’s Hurun billionaire ranking.
Other industries that China’s leadership considers strategically important also benefited in a similar way. One of the biggest wealth gainers by percentage is Gao Jifan, founder of the solar company Trina Solar. He increased his wealth by 227 percent in one year to $8.5 billion. Some chip and pharmaceutical entrepreneurs also made strong gains. Marcel Grzanna/Jörn Petring/Gregor Koppenburg
Education
Jack Ma
Society
News
IfW event on Lithuania dispute: The WTO is the right way
Appealing to the World Trade Organization (WTO) is the EU’s correct response to the dispute with China over Lithuania – but at the same time, the chances of a clear ruling are low. This is the conclusion of a discussion event in the Global China Conversations series at the Kiel Institute for the World Economy (IfW Kiel). The filing of a complaint with the WTO “was the right step in our opinion,” says economist Juergen Matthes of IW Cologne. China’s behavior toward Lithuania (China.Table reported) would thus be denounced in front of its other trading partners. The EU is thus bringing its complaint “to the world public.”
But researchers also dampen hopes that the EU could emerge victorious. They also warn that a quick verdict is practically impossible – the process could drag on for months or even years. “The concrete chances of success are low due to legal uncertainties,” says economist Christian Hederer of the Technical University of Wildau.
The WTO dispute settlement is a multi-stage process. On the one hand, China can claim that it has safeguarded its security interests by imposing a trade ban on Lithuania. It used to be unusual to apply this clause so broadly. But Donald Trump has exploited it for attacks against China, causing the practice to erode.
On the other hand, China can claim that there has never been a boycott of Lithuanian goods. Indeed, Beijing has never referred to the trade measures as punitive, even though it was the most extensive embargo ever seen in peacetime. Instead, China has at times blamed computer errors, at other times a lack of consumer demand for Lithuanian goods. The burden of proof now presumably lies with the EU as plaintiff, the researchers say. The argument offers plenty of material to keep lawyers busy for a long time.
Despite the hurdles, it is right to go down the World Trade Organization route, say the two economists. This way, the EU shows that it is interested in internationally defined mechanisms. The WTO was a success story before tensions between the trading blocs deprived it of its working basis. And since it has become less effective today, the EU needs its own defense mechanisms, such as the Anti-Coercion Instrument (China.Table reported). However, its application might not be WTO-compliant, which would create new complications. fin
Hong Kong faces an exodus of European companies. In a new survey by the EU Chamber of Commerce, around 25 percent of companies surveyed stated that they intended to turn their backs on the city completely within the next twelve months. Another 24 percent of companies indicated plans for a partial withdrawal from Hong Kong. Only one in six companies surveyed responded that they had no plans for a withdrawal. The survey was compiled between mid-January and mid-February, Bloomberg reported. 260 respondents took part in the survey.
“Looking at the comparatively overwhelming participation of our members, the result should serve as a clear warning that the last months and years have strained the European economy and its confidence,” said Frederik Gollob, Chairman of the European Chamber, cited by Bloomberg. Referring to current Covid containment measures, Gollob concluded that there is a need for “a clear plan for a return to normalcy.” nib
Coronavirus
Health
Hongkong
Plans for hydrogen industry by 2025
China aims to produce between 100,000 and 200,000 tons of green hydrogen annually by 2025. To this end, a strong hydrogen industry is to be built in the long term. That is according to a new plan presented by the National Development and Reform Commission (NDRC) on Wednesday. It also aims to put 50,000 hydrogen vehicles on the road by 2025, Reuters reports. This also includes trucks.
Green hydrogen is expected to help meet national climate goals, said Wang Xiang, Deputy Director of the High Technology Department at the NDRC. Hydrogen is “an important component” of China’s future energy system, according to the plan. In the short term, however, green hydrogen is unlikely to have positive climate effects. China currently produces 33 million tons of hydrogen per year. According to the government, about 80 percent is generated using coal and natural gas, with the remainder being mainly a byproduct of the industry. Accordingly, 200,000 tons of green hydrogen would merely be a drop in the ocean.
Climate-damaging hydrogen currently dominates
Wang said that while most of China’s hydrogen is produced from fossil fuels, the potential of green hydrogen is enormous, as the country has the world’s largest renewable energy capacity. Almost all provinces and regions in China have included hydrogen in their development plans. More than 120 green hydrogen projects are currently being developed.
According to the NDRC, China’s hydrogen industry is still at an early stage of development. The industrial innovation capability is not yet too strong. The industry would still rely on imports for key components and basic materials. The competitiveness of the industry should be strengthened. nib
Grüner Wasserstoff
NDRC
Taliban could be integrated into Silk Road
China’s Foreign Minister Wang Yi met his counterpart Amir Khan Muttaqi in Kabul on Thursday. The meeting is the highest-level visit by a Chinese official since the Taliban seized power last year. Wang and Muttaqi discussed a possible role for Afghanistan in the Belt and Road Initiative and the launch of work in the mining sector, Reuters reported. China is willing to work to expand the China-Pakistan Economic Corridor to Afghanistan, a Foreign Ministry statement said. The corridor is one of the most important Silk Road projects. So far, Beijing has not formally recognized the Taliban government in Afghanistan.
Just the day before Wang’s visit, the Taliban had banned girls from attending secondary schools. This represents an abrupt change after the Taliban had previously stated that schools were open to all students. China will host a meeting of regional foreign ministers later this month, which Muttaqi will also attend, according to Reuters. nib
Afghanistan
Geopolitics
New Silk Road
Profile
Stefanie Thiedig – connoisseur of Beijing’s art and culture scene
Stefanie Thiedig, blogger, photographer and author of the travel book 111 Places in Beijing.
Who doesn’t know the situation – the school years are finally over, but what now? This situation drew Stefanie Thiedig to the Middle Kingdom for the first time in 2000. Through an ad in the German national weekly Zeit, she applied for a year of Chinese language study in Beijing. It was the first of many stays. As a sinologist, she ventured into self-employment at the beginning of 2009, after she was deterred by the hierarchical structures during her first steps on Beijing’s job market. “At least fifty percent of what you do all day long has to be interesting in some way,” is how she has blithely described her life motto ever since.
In 2011, she decided to pursue a master’s degree in photography. “So that I can also express myself with photography as a visual medium,” Thiedig explains her motivation. Her proficiency in the Chinese language and culture, as well as photography, has borne much fruit since then. She works on China-related cultural projects for clients such as the Goethe Institute and the German Embassy. Together with a friend, she published her first book in 2010: “Culturescapes” which is dedicated to Beijing’s art scene from 2000 to 2010. Moreover, Stefanie Thiedig runs the platform Kulturgut.blogger.de, where she shares impressions of current exhibitions, among other things.
China’s compartmentalization is a deterrent
A very personal project in 2017 was working on her third book, “111 Places in Beijing You Must See”. Knowing that she would soon be leaving China, it was a kind of recap of her ten years’ stay. “Then the political stuff got more and more up my neck,” Stefanie Thiedig explains about her decision to return to Germany. However, because of the current state of increased isolation in China and the skepticism in dealing with this situation in Germany, she emphasizes that exchange remains absolutely relevant.
Staying true to her ability to turn passions into a profession, Stefanie Thiedig also likes to venture out into nature with a camera in her spare time. Even when looking at the German landscape, her photos are sometimes inspired by Chinese landscape painting, she says. She is drawn back to China, but the political situation and Covid measures have made it difficult to return for the past two years. Stefanie Thiedig’s current project with the Goethe-Institut is called German-Chinese Museum Talks and is aimed at curators from Germany and China. During a series of workshops, she had the feeling that she was currently missing out on something in China. Pia Wieners
Culture
Society
Executive Moves
Jia Hang will become Regional Head for Ant Group’s Southeast Asian market. The fintech company, which belongs to Alibaba Group Holding, has newly created this post.
Zhang Ke, previously Chief Auditor of the National Audit Office, was demoted. He now serves as Deputy Chief Auditor.
Dessert
Modern caravan – transporting of goods through Shanghai on the Huangpu River.
