Table.Briefing: China (English)

Elections in Indonesia + Li Auto targets the premium segment

Dear reader,

Indonesia will hold elections on Wednesday – and two things are already clear before the ballot. Firstly, there will be a new president, as incumbent Jokowi is not allowed to run again. And secondly, the new president will have the difficult task of realigning relations with China.

And this exemplifies the complicated situation of many countries in the region. On the one hand, Indonesia enjoys ever closer economic ties with China. That brings money and jobs. But it also means a certain degree of dependence. The country wants to counter this by forging closer relations with the United States. But it’s not quite that simple, as Leonardo Pape writes.

Our second analysis is about Li Auto. Just nine years after its foundation, Li Auto has become the most successful Chinese EV manufacturer in the premium segment. Now, the Chinese company wants to give its foreign competitors a run for their money – in a segment that has so far been firmly in German hands.

Many smile down on Li Auto’s battle cry. But Christian Domke Seidel shows why this goal is not entirely unrealistic. And with a technology that is frowned upon in Europe.

Finally, I would like to draw your attention to today’s Head: Julia Fiedler tells the story of chef Zhao Renjian. It’s about the search for authentic cuisine, life’s meaning, and important milestones such as a residence permit.

Your
Michael Radunski
Image of Michael  Radunski

Feature

Indonesia struggles to find the right relationship with China

Prabowo Subianto criticized Indonesia’s government for allegedly rolling out the red carpet to China.

Indonesia will elect a new president on Wednesday – and two things are already certain. Firstly, there will be a new president, as incumbent Joko “Jokowi” Widodo is no longer allowed to run after two terms in office. The front-runner is the current Defense Minister, Prabowo Subianto, from the Advanced Indonesia Coalition. And secondly, China is a big topic.

Under Jokowi’s leadership, China became Indonesia’s largest export and import partner. The trade volume in 2022 totaled around 149 billion US dollars. Chinese state banks and construction companies fund major infrastructure projects – such as the eight billion US dollar high-speed rail line between the capital Jakarta and the metropolis of Bandung. Three quarters were financed by loans from the China Development Bank. The China Railway Group built the line with a consortium of Indonesian companies.

Historic ties to China

None of the three candidates in the presidential election fundamentally question Indonesia’s growing economic ties with China. Both front-runner Subianto and Ganjar Pranowo from the Indonesian Democratic Party of Struggle want to continue Jokowi’s foreign and economic policy. Independent candidate Anies Baswedan has little chance of winning.

Since its independence in 1945 after Dutch colonial rule, Indonesia has pursued a “free and active” foreign policy and was already a driving force in the Non-Aligned Movement of Asia and Africa during the Cold War, which also included China at the time.

In 2013, Indonesia and China signed a “comprehensive strategic partnership,” a status that emphasizes the special status of bilateral relations but does not constitute a political alliance.

Turning to the USA

Recently, however, Jokowi has been trying to strengthen relations with the US government under President Joe Biden. In November 2023, Indonesia and the US entered a comprehensive strategic partnership. Indonesia also pushes for a free trade agreement with the United States on raw materials.

The main goal here is to access the US market for electric cars with raw materials mined in Indonesia. Indonesia mines almost half of the global nickel production, which is the basis for the lithium-ion batteries used in electric cars.

For a long time, the country was primarily a supplier of unprocessed nickel. To increase the added value of its own raw materials sector, the government gradually imposed an export ban on unprocessed nickel ores in 2014. This brought an increasing number of nickel refining companies to the country.

The problem: China processes Indonesia’s raw materials

Chinese companies control a large part of the nickel mining and refining process. This is a problem for the United States: According to recently issued guidelines from the US Department of Energy, EVs manufactured with the involvement of a so-called Foreign Entity Of Concern (FEOC) are not eligible for subsidies.

This also includes the extensive participation of Chinese companies in the extraction of raw materials. The US government aims to use this so-called friend-shoring measure to strengthen its own electromobility industry and align international production chains with political partner countries.

Indonesia must now strike a balance between the investment appetite of Chinese companies and political pressure from the US. A free trade agreement with the United States would increase the chances that American and other international companies not affected by the subsidy ban would participate in the expansion of Indonesia’s EV industry.

Among other things, Jokowi is wooing Tesla to make Indonesia the Southeast Asian production hub for its EVs. However, the Indonesian government still considers Chinese companies to be important partners.

Concept of non-alignment in foreign policy

Society tends to be rather critical of the political and economic influence of both China and the USA on Indonesia. The concept of non-alignment is still the basic approach of Indonesian foreign policy to this day. On the other hand, China has been shaping the country’s fortunes for centuries due to its supremacy in the region, which sometimes gives rise to fears of excessive influence. Recently, China has also clashed with Indonesia over its territorial claims in the South China Sea.

In the previous presidential election, Prabowo – who lost to Jokowi at the time – criticized the government for rolling out the “red carpet” to China. This time, all candidates are keeping relatively quiet about China. However, the dilemmas associated with China’s role and the geopolitical conflict areas for Indonesia will also accompany the next president. Leonardo Pape

  • Car Industry
  • Geopolitics
  • Indonesia
  • Indonesien

Li Auto wants to snatch the premium segment from the Germans

Angriff im Premiumsegment: Der L9 von Li Auto
Attack in the premium segment: the Li Auto L9.

The first milestone has been reached: Just nine years after its foundation, Li Auto has become the most successful Chinese EV manufacturer in the premium segment. But this is just the beginning for company founder and CEO Li Xiang. “We strive to become the No. 1 premium car brand in China in 2024 in terms of sales,” Li announced. In plain language: Li Auto wants to sell more electric vehicles than Mercedes, BMW, Audi, and Volkswagen in the premium segment with all their models, electric and gas-powered, put together.

“We will challenge ourselves with a target of a new high of 800,000 annual deliveries, and a goal [of becoming] the bestselling premium auto brand in China,” said Li. One might chuckle at the challenge to the German manufacturers, as it would require growth that far exceeds the forecasts for the market as a whole. The Chinese Automobile Association CAAM expects growth of 20 percent for models with alternative drivetrains in 2024. Li Auto sold around 376,000 cars in 2023, meaning it would have to sell more than twice as many cars as the previous year.

Technology that never got off the ground in Europe

But a look at Li’s origins suggests that the goal is not entirely unrealistic. The brand has only been around since 2015 and sold a mere 33,000 vehicles in 2020. Last year, the company recorded a sales increase of 182 percent, which propelled it to the top of the list of Chinese premium EV manufacturers. Remarkably, this rise was achieved with a technology that never got off the ground in Europe due to its low efficiency.

So far, there are four models – One, L9, L8, and L7. All of them are equipped with a range extender. This means that although an electric motor basically powers the car, a smaller combustion engine charges the battery if the power runs out. The technology has not caught on in Europe, firstly because the energy lost during power generation is very high, secondly because the purely electric range is very short, and thirdly because the additional engine and tank increase weight and maintenance costs. However, Chinese customers take a more pragmatic view of these shortcomings and do not seem bothered by the higher operating costs – the figures speak for themselves.

German manufacturers no longer considered competitors

The success of a Chinese manufacturer in the premium segment is putting pressure on Audi, BMW and Mercedes in particular. According to calculations by the German business newspaper Handelsblatt, only BMW sells more SUVs in China than Li Auto. The other two German premium suppliers have been left in the rear mirror. Chinese newspapers no longer mention German manufacturers as competitors. Here, comparisons are focussed on Chinese brands and Tesla. Li himself also stated that there was only room for five major manufacturers in the EV market. He already sees Tesla, BYD and Huawei as established, with Li Auto, NIO and Xpeng competing for the remaining two spots.

Liu Luochuan is the director of the Strategic Development Research Centre at Dongfeng Motor. He dramatically noted to Caixin Global: “The new year will decide who are the winners, who are the losers, who will survive and who will die.” He was referring to the enormous drop in prices in the car sector. In 2023, car prices in China fell by 8, without any significant cost reduction along the value chain.

A van is supposed to drive up sales figures

Liu estimates that manufacturers need to sell 500,000 EVs per year to generate profit through economies of scale. Li Auto’s Mega is expected to drive sales figures to new heights in 2024. This is quite surprising because the Mega is a van – an unpopular segment worldwide. Since its peak in the 1990s, the vehicle category has almost died out in terms of new registrations. Only a few models have managed to carve out a niche for themselves.

And vans are not big sellers in China either. A total of 940,000 vans were sold in 2022, a decrease of 13 percent year-on-year. The top seller was General Motors’ Buick GL8 (126,838 units). However, the Mega from Li Auto sets out to revitalize the segment completely. It is intended to become the brand’s flagship model. It is a seven-seater that will be available for around 600,000 yuan. That is just under 80,000 euros. The multi-purpose vehicle (MVP) will be manufactured in Beijing – partly thanks to a subsidy from the local government – and will be ready for delivery in early March.

The brand’s first purely electric vehicle

The Li Mega is the brand’s first purely electric vehicle. The Mega and the new L6 are supposed to drive the growth needed for Li’s goal of becoming number one in China’s premium segment. The L6 is Li Auto’s shortest model to date. However, at 4.9 meters – roughly at BMW X5 level – it is still a sizeable car by European standards. Chinese car buyers also associate more space with higher quality.

  • CAAM
  • Car Industry
  • China
  • Economy
  • Technology
  • Trade

News

Warning of escalation in the Indo-Pacific ahead of Munich Security Conference

Shortly before the start of the Munich Security Conference, the organizers warned of an escalation of violence in the Indo-Pacific. According to the Munich Security Report presented in Berlin on Monday, China continues to advance its vision of a regional order. Beijing is at the center of this new order. There are fears of escalation, particularly around Taiwan. However, tensions are also increasing in the South China Sea.

China’s aggressive push puts the countries in the region in a difficult situation, as they all have to position themselves in the growing rivalry between China and the US. “Many regional actors are seeking closer alignment with the US on security matters. They are also trying to reduce their economic dependency on China, albeit with differing levels of success,” the report states.

In this supposed zero-sum game between China and the USA, larger alliances such as the Southeast Asian Association of Nations (ASEAN) are becoming less important, the report states. The reason: like-minded countries are increasingly opting for new minilateral frameworks. With such alliances, governments aim to balance Chinese influence in the Indo-Pacific. It is just one indication that the fate of the Indo-Pacific will not be decided by the two superpowers alone. “Regional actors play a crucial role as ‘order shapers’ rather than just ‘order takers’,” the report states.

The Munich Security Conference will be held in Munich from 16 to 18 February. Table.Media will be on the ground with in-depth reports. rad

  • Indopazifik

Uyghur association considers BASF’s involvement in Xinjiang extremely worrying

The World Uyghur Congress (WUC) urges the chemical company BASF to ensure beyond doubt that its supply chains are free of Uyghur forced labor. In a statement to Table.Media, the WUC welcomed the DAX-listed company’s announcement to sell its shares in two joint ventures in the autonomous region. However, the WUC only calls it a first step.

“BASF must live up to its pioneering role and take decisive, concrete steps to completely free its supply chains from Uyghur forced labor. This is the only way the company can fully fulfill its ethical and legal responsibilities,” demands WUC Berlin Director Haiyuer Kuerban.

He said it was both shocking and telling that employees of a BASF partner were involved in the oppression of the Uyghurs. This incident highlights the appalling extent to which the Chinese government pushed ahead with the genocide of the Uyghurs. BASF’s involvement in Uyghur forced labor is extremely worrying, said Kuerban. grz

  • Zwangsarbeit

Battery and EV manufacturers join forces to form national alliance

With the goal of establishing a solid-state batteries supply chain by 2030, China’s leading battery and electric car manufacturers have founded a joint consortium orchestrated by the government. The name: China All-Solid-State Battery Collaborative Innovation Platform (CASIP). This was reported by the Japanese news agency Nikkei. CATL and BYD, who are actually rivals in the development of electric vehicle batteries, are also involved.

In this way, China’s government wants to accelerate the development of next-generation batteries. Artificial intelligence is also to be increasingly utilized in the process. “We need to be prepared for the risk that all-solid-state battery technology could overturn” China’s advantage in automotive batteries, said Ouyang Minggao, a Tsinghua University professor who specializes in development of automotive-related technologies

The consortium will focus on basic research, key technologies and the joint development and production of electric vehicles with solid-state batteries and establish a corresponding supply chain. flee

  • Batterien

Beijing no longer wants to see the world champions over Messi incident

The football associations in Beijing and Hangzhou have decided not to host two international matches for world champions Argentina. The South Americans were supposed to play against African champions Ivory Coast in the capital and Nigeria in Hangzhou as part of a China tour in March. The associations were reacting to Messi’s injury during a friendly for his club Inter Miami in Hong Kong last week.

“Beijing currently has no plans to host relevant competitions in which Messi will participate,” explained the Beijing Football Association. The day before, the association in Hangzhou had issued a similar statement.

Apparently, Chinese officials took offense at the eight-time world footballer’s no-show in Hong Kong despite his promise to the contrary. According to his club, a thigh injury had put the midfielder off the pitch. However, this theory is not accepted in China, especially as Messi was substituted at least in the second half of the test match against Vissel Kobe in Tokyo a few days later.

Meanwhile, the organizers in Hong Kong had announced that they would refund half of the ticket price to the fans. Hong Kong’s government representatives also reacted outraged. One government advisor even called for Messi to be denied entry in the future. “Our aspiration was to create an iconic moment in support of the government’s efforts to remind the world how relevant and exciting Hong Kong is,” Tatler Asia announced after a meeting with government representatives. “That dream is broken today for us.” grz

  • Fußball

Heads

Zhao Renjian – a life for God and food

Zhao Renjian had to take a few detours before he found happiness: his own restaurant, authentic Sichuan cuisine, and God.

Gongbao Jiding 宮保雞丁 is one of the classics of Sichuan cuisine. But even in China, the dish is often prepared incorrectly. Cucumber, carrot, cashew nuts or pieces of pepper: they all have no place in the chicken dish. Only peanuts, chili, spring onions, and, of course, Sichuan pepper are supposed to be in it.

This is what chef Zhao Renjian explains at the table of his small Berlin restaurant,Wunderbar.” He originally comes from Taizhou in Jiangsu province but has dedicated his restaurant to Sichuan cuisine. Why? Because it is not only one of the most popular cuisines in China, but is also very well-known in Germany. Three meters away, one of his employees is swinging the wok over the gas cooker in the open kitchen, there is a brief burst of flame and the food sizzles loudly.

Zhao arrived in Berlin in 2007 and has been running the restaurant for five years. But sometimes other cuisines also enter his realm: As a private chef, Zhao prepares mapo dofu 麻婆豆腐, shui zhu yu 水煮鱼 or Peking duck on request, even in the smallest rented Berlin apartment. It is thanks to his cooking skills that he is still in Germany.

Search for authentic Sichuan flavor

Zhao was born in 1974 and his family moved to Beijing when he was 19. Zhao found an apprenticeship as a cook in the Ministry of Science and Technology canteen. His boss and colleagues came from Sichuan and mainly prepared dishes from their homeland. But after six years in the canteen, Zhao visited an authentic Sichuan restaurant and realized how much better the food could actually be if prepared properly. Zhao made a decision: He wanted to open his own restaurant in Sichuan, with authentic dishes. So he quit his job and applied to a cookery school in Chengdu.

He was already familiar with the recipes and cooking methods, but in Chengdu, Zhao learned the essence of flavors and textures and the creativity of Sichuan cuisine – and became inventive himself. However, his attempts to open his own restaurant in Beijing failed, and he had to take a job in a hotel. But then, another opportunity would present itself.

An acquaintance told him that a restaurant in Berlin specializing in Peking duck was looking for a chef. Zhao knew nothing about Germany, but he was 32 and wanted to see the world. Sichuan chicken became Peking duck, but not immediately. It took Zhao an entire year to get a visa for specialty chefs. The visa entitles to a four-year stay in Germany, bound to an employment contract in a restaurant.

In search of meaning

Zhao Renjian had not traveled much before. He had only seen Jiangsu, Beijing and Chengdu. He immediately liked Germany and still appreciates the peace and quiet today. However, the work in the Peking duck restaurant was hard. And as he didn’t speak German, he could hardly socialize with people outside of work. But he did get to know some Chinese people.

As the four years neared their end, Zhao wanted to stay, but he was not granted a residence permit. For several years, he lived off his savings without a job, only cooked for friends at parties and fell into a deep hole: He had no idea what to do with his life. He was also in a bad way physically.

The Chinese doctor who treated Zhao with acupuncture took him to church one Sunday. There is an active Christian Chinese congregation in the church on Hohenzollernplatz in Berlin, with around 200 people attending the Chinese service every Sunday afternoon. It was Zhao’s first contact with Christianity. The sermon also touched on personal crises and the support that faith can offer. The congregation welcomed Zhao with open arms, and a week later, Zhao was spontaneously baptized.

Life between community and kitchen

What exactly happened to him in that one week is something he cannot even explain himself, Zhao says today. He became a devout Christian, regained his courage, and came up with a plan: He could become a private chef and run a stall at farmers’ markets. Zhao drew up a business plan, which more than 20 friends and acquaintances from the Chinese community signed to endorse his cooking skills. Thanks to the business plan, he actually managed to obtain a residence permit – Zhao was allowed to start his own business.

After several years as a private chef and with a stall in Markthalle 9, he finally opened his restaurant in Schoeneberg. Here, he cooks authentic Sichuan cuisine and also offers cooking courses that teach how to prepare gongbao jiding and other classics faithfully. In addition to cooking, his life continues to focus on the church and his newfound faith in God. Julia Fiedler

  • Heads
  • Migration Policy

Executive Moves

Christoph Passek has been Managing Director China & Hong Kong at Bremen-based logistics service provider Röhlig since January. Passek previously worked for three years for the company as General Manager Commercial for the Greater China region. He will remain based in Hong Kong.

Maria-Antigone Rumpf is a new full-time analyst at Datenna. The Dutch data intelligence company specializes in open-source technology and tech-economic developments in China.

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

Dessert

Lego China Neujahr

Lego managed to come up with a particularly impressive set for the New Year: A dim sum restaurant, complete with the carts that were once common in the often multi-story restaurants in Hong Kong and Guangzhou. Mostly older women pushed these little carts around and offered their specialties with loud cries. They are rarely seen nowadays. One reason is the horrendous rise in real estate prices. In high-priced Hong Kong in particular, there are hardly any large restaurants that offer enough space for these little carts. All the better that this tradition lives on, at least with Lego.

China.Table editorial team

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Indonesia will hold elections on Wednesday – and two things are already clear before the ballot. Firstly, there will be a new president, as incumbent Jokowi is not allowed to run again. And secondly, the new president will have the difficult task of realigning relations with China.

    And this exemplifies the complicated situation of many countries in the region. On the one hand, Indonesia enjoys ever closer economic ties with China. That brings money and jobs. But it also means a certain degree of dependence. The country wants to counter this by forging closer relations with the United States. But it’s not quite that simple, as Leonardo Pape writes.

    Our second analysis is about Li Auto. Just nine years after its foundation, Li Auto has become the most successful Chinese EV manufacturer in the premium segment. Now, the Chinese company wants to give its foreign competitors a run for their money – in a segment that has so far been firmly in German hands.

    Many smile down on Li Auto’s battle cry. But Christian Domke Seidel shows why this goal is not entirely unrealistic. And with a technology that is frowned upon in Europe.

    Finally, I would like to draw your attention to today’s Head: Julia Fiedler tells the story of chef Zhao Renjian. It’s about the search for authentic cuisine, life’s meaning, and important milestones such as a residence permit.

    Your
    Michael Radunski
    Image of Michael  Radunski

    Feature

    Indonesia struggles to find the right relationship with China

    Prabowo Subianto criticized Indonesia’s government for allegedly rolling out the red carpet to China.

    Indonesia will elect a new president on Wednesday – and two things are already certain. Firstly, there will be a new president, as incumbent Joko “Jokowi” Widodo is no longer allowed to run after two terms in office. The front-runner is the current Defense Minister, Prabowo Subianto, from the Advanced Indonesia Coalition. And secondly, China is a big topic.

    Under Jokowi’s leadership, China became Indonesia’s largest export and import partner. The trade volume in 2022 totaled around 149 billion US dollars. Chinese state banks and construction companies fund major infrastructure projects – such as the eight billion US dollar high-speed rail line between the capital Jakarta and the metropolis of Bandung. Three quarters were financed by loans from the China Development Bank. The China Railway Group built the line with a consortium of Indonesian companies.

    Historic ties to China

    None of the three candidates in the presidential election fundamentally question Indonesia’s growing economic ties with China. Both front-runner Subianto and Ganjar Pranowo from the Indonesian Democratic Party of Struggle want to continue Jokowi’s foreign and economic policy. Independent candidate Anies Baswedan has little chance of winning.

    Since its independence in 1945 after Dutch colonial rule, Indonesia has pursued a “free and active” foreign policy and was already a driving force in the Non-Aligned Movement of Asia and Africa during the Cold War, which also included China at the time.

    In 2013, Indonesia and China signed a “comprehensive strategic partnership,” a status that emphasizes the special status of bilateral relations but does not constitute a political alliance.

    Turning to the USA

    Recently, however, Jokowi has been trying to strengthen relations with the US government under President Joe Biden. In November 2023, Indonesia and the US entered a comprehensive strategic partnership. Indonesia also pushes for a free trade agreement with the United States on raw materials.

    The main goal here is to access the US market for electric cars with raw materials mined in Indonesia. Indonesia mines almost half of the global nickel production, which is the basis for the lithium-ion batteries used in electric cars.

    For a long time, the country was primarily a supplier of unprocessed nickel. To increase the added value of its own raw materials sector, the government gradually imposed an export ban on unprocessed nickel ores in 2014. This brought an increasing number of nickel refining companies to the country.

    The problem: China processes Indonesia’s raw materials

    Chinese companies control a large part of the nickel mining and refining process. This is a problem for the United States: According to recently issued guidelines from the US Department of Energy, EVs manufactured with the involvement of a so-called Foreign Entity Of Concern (FEOC) are not eligible for subsidies.

    This also includes the extensive participation of Chinese companies in the extraction of raw materials. The US government aims to use this so-called friend-shoring measure to strengthen its own electromobility industry and align international production chains with political partner countries.

    Indonesia must now strike a balance between the investment appetite of Chinese companies and political pressure from the US. A free trade agreement with the United States would increase the chances that American and other international companies not affected by the subsidy ban would participate in the expansion of Indonesia’s EV industry.

    Among other things, Jokowi is wooing Tesla to make Indonesia the Southeast Asian production hub for its EVs. However, the Indonesian government still considers Chinese companies to be important partners.

    Concept of non-alignment in foreign policy

    Society tends to be rather critical of the political and economic influence of both China and the USA on Indonesia. The concept of non-alignment is still the basic approach of Indonesian foreign policy to this day. On the other hand, China has been shaping the country’s fortunes for centuries due to its supremacy in the region, which sometimes gives rise to fears of excessive influence. Recently, China has also clashed with Indonesia over its territorial claims in the South China Sea.

    In the previous presidential election, Prabowo – who lost to Jokowi at the time – criticized the government for rolling out the “red carpet” to China. This time, all candidates are keeping relatively quiet about China. However, the dilemmas associated with China’s role and the geopolitical conflict areas for Indonesia will also accompany the next president. Leonardo Pape

    • Car Industry
    • Geopolitics
    • Indonesia
    • Indonesien

    Li Auto wants to snatch the premium segment from the Germans

    Angriff im Premiumsegment: Der L9 von Li Auto
    Attack in the premium segment: the Li Auto L9.

    The first milestone has been reached: Just nine years after its foundation, Li Auto has become the most successful Chinese EV manufacturer in the premium segment. But this is just the beginning for company founder and CEO Li Xiang. “We strive to become the No. 1 premium car brand in China in 2024 in terms of sales,” Li announced. In plain language: Li Auto wants to sell more electric vehicles than Mercedes, BMW, Audi, and Volkswagen in the premium segment with all their models, electric and gas-powered, put together.

    “We will challenge ourselves with a target of a new high of 800,000 annual deliveries, and a goal [of becoming] the bestselling premium auto brand in China,” said Li. One might chuckle at the challenge to the German manufacturers, as it would require growth that far exceeds the forecasts for the market as a whole. The Chinese Automobile Association CAAM expects growth of 20 percent for models with alternative drivetrains in 2024. Li Auto sold around 376,000 cars in 2023, meaning it would have to sell more than twice as many cars as the previous year.

    Technology that never got off the ground in Europe

    But a look at Li’s origins suggests that the goal is not entirely unrealistic. The brand has only been around since 2015 and sold a mere 33,000 vehicles in 2020. Last year, the company recorded a sales increase of 182 percent, which propelled it to the top of the list of Chinese premium EV manufacturers. Remarkably, this rise was achieved with a technology that never got off the ground in Europe due to its low efficiency.

    So far, there are four models – One, L9, L8, and L7. All of them are equipped with a range extender. This means that although an electric motor basically powers the car, a smaller combustion engine charges the battery if the power runs out. The technology has not caught on in Europe, firstly because the energy lost during power generation is very high, secondly because the purely electric range is very short, and thirdly because the additional engine and tank increase weight and maintenance costs. However, Chinese customers take a more pragmatic view of these shortcomings and do not seem bothered by the higher operating costs – the figures speak for themselves.

    German manufacturers no longer considered competitors

    The success of a Chinese manufacturer in the premium segment is putting pressure on Audi, BMW and Mercedes in particular. According to calculations by the German business newspaper Handelsblatt, only BMW sells more SUVs in China than Li Auto. The other two German premium suppliers have been left in the rear mirror. Chinese newspapers no longer mention German manufacturers as competitors. Here, comparisons are focussed on Chinese brands and Tesla. Li himself also stated that there was only room for five major manufacturers in the EV market. He already sees Tesla, BYD and Huawei as established, with Li Auto, NIO and Xpeng competing for the remaining two spots.

    Liu Luochuan is the director of the Strategic Development Research Centre at Dongfeng Motor. He dramatically noted to Caixin Global: “The new year will decide who are the winners, who are the losers, who will survive and who will die.” He was referring to the enormous drop in prices in the car sector. In 2023, car prices in China fell by 8, without any significant cost reduction along the value chain.

    A van is supposed to drive up sales figures

    Liu estimates that manufacturers need to sell 500,000 EVs per year to generate profit through economies of scale. Li Auto’s Mega is expected to drive sales figures to new heights in 2024. This is quite surprising because the Mega is a van – an unpopular segment worldwide. Since its peak in the 1990s, the vehicle category has almost died out in terms of new registrations. Only a few models have managed to carve out a niche for themselves.

    And vans are not big sellers in China either. A total of 940,000 vans were sold in 2022, a decrease of 13 percent year-on-year. The top seller was General Motors’ Buick GL8 (126,838 units). However, the Mega from Li Auto sets out to revitalize the segment completely. It is intended to become the brand’s flagship model. It is a seven-seater that will be available for around 600,000 yuan. That is just under 80,000 euros. The multi-purpose vehicle (MVP) will be manufactured in Beijing – partly thanks to a subsidy from the local government – and will be ready for delivery in early March.

    The brand’s first purely electric vehicle

    The Li Mega is the brand’s first purely electric vehicle. The Mega and the new L6 are supposed to drive the growth needed for Li’s goal of becoming number one in China’s premium segment. The L6 is Li Auto’s shortest model to date. However, at 4.9 meters – roughly at BMW X5 level – it is still a sizeable car by European standards. Chinese car buyers also associate more space with higher quality.

    • CAAM
    • Car Industry
    • China
    • Economy
    • Technology
    • Trade

    News

    Warning of escalation in the Indo-Pacific ahead of Munich Security Conference

    Shortly before the start of the Munich Security Conference, the organizers warned of an escalation of violence in the Indo-Pacific. According to the Munich Security Report presented in Berlin on Monday, China continues to advance its vision of a regional order. Beijing is at the center of this new order. There are fears of escalation, particularly around Taiwan. However, tensions are also increasing in the South China Sea.

    China’s aggressive push puts the countries in the region in a difficult situation, as they all have to position themselves in the growing rivalry between China and the US. “Many regional actors are seeking closer alignment with the US on security matters. They are also trying to reduce their economic dependency on China, albeit with differing levels of success,” the report states.

    In this supposed zero-sum game between China and the USA, larger alliances such as the Southeast Asian Association of Nations (ASEAN) are becoming less important, the report states. The reason: like-minded countries are increasingly opting for new minilateral frameworks. With such alliances, governments aim to balance Chinese influence in the Indo-Pacific. It is just one indication that the fate of the Indo-Pacific will not be decided by the two superpowers alone. “Regional actors play a crucial role as ‘order shapers’ rather than just ‘order takers’,” the report states.

    The Munich Security Conference will be held in Munich from 16 to 18 February. Table.Media will be on the ground with in-depth reports. rad

    • Indopazifik

    Uyghur association considers BASF’s involvement in Xinjiang extremely worrying

    The World Uyghur Congress (WUC) urges the chemical company BASF to ensure beyond doubt that its supply chains are free of Uyghur forced labor. In a statement to Table.Media, the WUC welcomed the DAX-listed company’s announcement to sell its shares in two joint ventures in the autonomous region. However, the WUC only calls it a first step.

    “BASF must live up to its pioneering role and take decisive, concrete steps to completely free its supply chains from Uyghur forced labor. This is the only way the company can fully fulfill its ethical and legal responsibilities,” demands WUC Berlin Director Haiyuer Kuerban.

    He said it was both shocking and telling that employees of a BASF partner were involved in the oppression of the Uyghurs. This incident highlights the appalling extent to which the Chinese government pushed ahead with the genocide of the Uyghurs. BASF’s involvement in Uyghur forced labor is extremely worrying, said Kuerban. grz

    • Zwangsarbeit

    Battery and EV manufacturers join forces to form national alliance

    With the goal of establishing a solid-state batteries supply chain by 2030, China’s leading battery and electric car manufacturers have founded a joint consortium orchestrated by the government. The name: China All-Solid-State Battery Collaborative Innovation Platform (CASIP). This was reported by the Japanese news agency Nikkei. CATL and BYD, who are actually rivals in the development of electric vehicle batteries, are also involved.

    In this way, China’s government wants to accelerate the development of next-generation batteries. Artificial intelligence is also to be increasingly utilized in the process. “We need to be prepared for the risk that all-solid-state battery technology could overturn” China’s advantage in automotive batteries, said Ouyang Minggao, a Tsinghua University professor who specializes in development of automotive-related technologies

    The consortium will focus on basic research, key technologies and the joint development and production of electric vehicles with solid-state batteries and establish a corresponding supply chain. flee

    • Batterien

    Beijing no longer wants to see the world champions over Messi incident

    The football associations in Beijing and Hangzhou have decided not to host two international matches for world champions Argentina. The South Americans were supposed to play against African champions Ivory Coast in the capital and Nigeria in Hangzhou as part of a China tour in March. The associations were reacting to Messi’s injury during a friendly for his club Inter Miami in Hong Kong last week.

    “Beijing currently has no plans to host relevant competitions in which Messi will participate,” explained the Beijing Football Association. The day before, the association in Hangzhou had issued a similar statement.

    Apparently, Chinese officials took offense at the eight-time world footballer’s no-show in Hong Kong despite his promise to the contrary. According to his club, a thigh injury had put the midfielder off the pitch. However, this theory is not accepted in China, especially as Messi was substituted at least in the second half of the test match against Vissel Kobe in Tokyo a few days later.

    Meanwhile, the organizers in Hong Kong had announced that they would refund half of the ticket price to the fans. Hong Kong’s government representatives also reacted outraged. One government advisor even called for Messi to be denied entry in the future. “Our aspiration was to create an iconic moment in support of the government’s efforts to remind the world how relevant and exciting Hong Kong is,” Tatler Asia announced after a meeting with government representatives. “That dream is broken today for us.” grz

    • Fußball

    Heads

    Zhao Renjian – a life for God and food

    Zhao Renjian had to take a few detours before he found happiness: his own restaurant, authentic Sichuan cuisine, and God.

    Gongbao Jiding 宮保雞丁 is one of the classics of Sichuan cuisine. But even in China, the dish is often prepared incorrectly. Cucumber, carrot, cashew nuts or pieces of pepper: they all have no place in the chicken dish. Only peanuts, chili, spring onions, and, of course, Sichuan pepper are supposed to be in it.

    This is what chef Zhao Renjian explains at the table of his small Berlin restaurant,Wunderbar.” He originally comes from Taizhou in Jiangsu province but has dedicated his restaurant to Sichuan cuisine. Why? Because it is not only one of the most popular cuisines in China, but is also very well-known in Germany. Three meters away, one of his employees is swinging the wok over the gas cooker in the open kitchen, there is a brief burst of flame and the food sizzles loudly.

    Zhao arrived in Berlin in 2007 and has been running the restaurant for five years. But sometimes other cuisines also enter his realm: As a private chef, Zhao prepares mapo dofu 麻婆豆腐, shui zhu yu 水煮鱼 or Peking duck on request, even in the smallest rented Berlin apartment. It is thanks to his cooking skills that he is still in Germany.

    Search for authentic Sichuan flavor

    Zhao was born in 1974 and his family moved to Beijing when he was 19. Zhao found an apprenticeship as a cook in the Ministry of Science and Technology canteen. His boss and colleagues came from Sichuan and mainly prepared dishes from their homeland. But after six years in the canteen, Zhao visited an authentic Sichuan restaurant and realized how much better the food could actually be if prepared properly. Zhao made a decision: He wanted to open his own restaurant in Sichuan, with authentic dishes. So he quit his job and applied to a cookery school in Chengdu.

    He was already familiar with the recipes and cooking methods, but in Chengdu, Zhao learned the essence of flavors and textures and the creativity of Sichuan cuisine – and became inventive himself. However, his attempts to open his own restaurant in Beijing failed, and he had to take a job in a hotel. But then, another opportunity would present itself.

    An acquaintance told him that a restaurant in Berlin specializing in Peking duck was looking for a chef. Zhao knew nothing about Germany, but he was 32 and wanted to see the world. Sichuan chicken became Peking duck, but not immediately. It took Zhao an entire year to get a visa for specialty chefs. The visa entitles to a four-year stay in Germany, bound to an employment contract in a restaurant.

    In search of meaning

    Zhao Renjian had not traveled much before. He had only seen Jiangsu, Beijing and Chengdu. He immediately liked Germany and still appreciates the peace and quiet today. However, the work in the Peking duck restaurant was hard. And as he didn’t speak German, he could hardly socialize with people outside of work. But he did get to know some Chinese people.

    As the four years neared their end, Zhao wanted to stay, but he was not granted a residence permit. For several years, he lived off his savings without a job, only cooked for friends at parties and fell into a deep hole: He had no idea what to do with his life. He was also in a bad way physically.

    The Chinese doctor who treated Zhao with acupuncture took him to church one Sunday. There is an active Christian Chinese congregation in the church on Hohenzollernplatz in Berlin, with around 200 people attending the Chinese service every Sunday afternoon. It was Zhao’s first contact with Christianity. The sermon also touched on personal crises and the support that faith can offer. The congregation welcomed Zhao with open arms, and a week later, Zhao was spontaneously baptized.

    Life between community and kitchen

    What exactly happened to him in that one week is something he cannot even explain himself, Zhao says today. He became a devout Christian, regained his courage, and came up with a plan: He could become a private chef and run a stall at farmers’ markets. Zhao drew up a business plan, which more than 20 friends and acquaintances from the Chinese community signed to endorse his cooking skills. Thanks to the business plan, he actually managed to obtain a residence permit – Zhao was allowed to start his own business.

    After several years as a private chef and with a stall in Markthalle 9, he finally opened his restaurant in Schoeneberg. Here, he cooks authentic Sichuan cuisine and also offers cooking courses that teach how to prepare gongbao jiding and other classics faithfully. In addition to cooking, his life continues to focus on the church and his newfound faith in God. Julia Fiedler

    • Heads
    • Migration Policy

    Executive Moves

    Christoph Passek has been Managing Director China & Hong Kong at Bremen-based logistics service provider Röhlig since January. Passek previously worked for three years for the company as General Manager Commercial for the Greater China region. He will remain based in Hong Kong.

    Maria-Antigone Rumpf is a new full-time analyst at Datenna. The Dutch data intelligence company specializes in open-source technology and tech-economic developments in China.

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

    Dessert

    Lego China Neujahr

    Lego managed to come up with a particularly impressive set for the New Year: A dim sum restaurant, complete with the carts that were once common in the often multi-story restaurants in Hong Kong and Guangzhou. Mostly older women pushed these little carts around and offered their specialties with loud cries. They are rarely seen nowadays. One reason is the horrendous rise in real estate prices. In high-priced Hong Kong in particular, there are hardly any large restaurants that offer enough space for these little carts. All the better that this tradition lives on, at least with Lego.

    China.Table editorial team

    CHINA.TABLE EDITORIAL OFFICE

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