Taiwan’s former President Ma Ying-jeou has been visiting China since Easter Monday – for the second time since March 2023. Once again, he is officially there in private, but his mission is to promote ties between the two sides of the Taiwan Strait. On his eleven-day trip, Ma will also hold political talks again and is even expected to meet President Xi Jinping next week.
Although Ma no longer holds a political office, his trip has significant symbolic value. While in office, he had campaigned for the expansion of economic relations with China and for emphasizing Taiwan’s cultural identity as Chinese, as Leonardo Pape explains.
Both continue to cause discussion and controversy in Taiwan to this day. Therefore, the ruling DPP is not the only party to criticize the ex-president’s trip; his own party, the KMT, also finds its former leader’s China tour certainly controversial.
The Chinese app Xiaohongshu has achieved what Western platforms such as Instagram have so far failed to do: fully combining social media lifestyle and e-commerce. Anonymous reviews are taboo on the app. Users are supposed to be able to trust the influencers there completely, as Fabian Peltsch describes.
Xiaohongshu claims to have had more than 300 million monthly active users in 2023 – 20 percent more than the previous year. Most of them are young and live in metropolises such as Shanghai.
At the start of his eleven-day China visit, former Taiwanese President Ma Ying-jeou of the Kuomintang Party (KMT) called for more dialogue and cooperation between Taiwan and China. During his first stop in Shenzhen in southern China, Ma met with Song Tao, Chairman of the Taiwan Affairs Office of the State Council, among others.
Song passed on greetings from President Xi Jinping and took the opportunity to reaffirm the Communist Party’s political line: China opposes all “separatist activities” in Taiwan and any external interference. The leadership in Beijing has increased political and military pressure on Taiwan in recent years.
Ma, Taiwan’s president from 2008 to 2016, continues to strive for economic and political rapprochement with China. He already visited the People’s Republic a year ago – as a private individual, as he emphasized. But even then, Ma held political talks. Ma no longer holds a high party office, and his visit to China is being organized by his private foundation. He is accompanied by a youth delegation, which is intended to symbolize civil society exchange with China.
The KMT leadership has stated that it is not involved in the planning of the trip. However, party MPs welcomed the prospect of political dialogue with China’s leadership. In contrast, the China-critical ruling party DPP criticized the trip. Member of Parliament Wu Su-yao pointed out, among other things, that Ma and his delegation had visited the tech company Tencent and drone manufacturer Shenzhen DJI Sciences and Technologies, both of which had been sanctioned by the US. Among other things, the drones from Shenzhen DJI Sciences and Technologies are used by both sides in the war in Ukraine.
President Tsai Ing-wen and her Vice President Lai Ching-te, who won the presidential election in January, did not comment on the visit. Lai will be sworn in as Tsai’s successor on May 20.
Taiwanese media have reported in recent days, citing anonymous sources, that Ma was planning to meet with Xi Jinping near the end of his China visit. Neither Ma nor the Chinese leadership have confirmed this yet. When asked, the chairman of Ma’s foundation only said that Ma hoped to meet his “old friend” in China. So far, Ma has only met his “old friend” once in public. The meeting between Ma and Xi in Singapore in 2015 was supposed to be the high point of the rapprochement between Taiwan and China. At the time, however, Ma’s political position was already significantly weakened.
The year before, students in the Sunflower Movement had opposed a services agreement negotiated by the KMT government with China. They feared that stronger economic dependencies would also threaten Taiwan’s political sovereignty. The pressure of the protests led to the ratification of the agreement being overturned in parliament, and Ma’s approval ratings collapsed. The meeting with Xi Jinping then turned into an empty, symbolic political gesture. In 2016, the people of Taiwan elected DPP politician Tsai Ing-wen as president by a large majority.
Ma’s family is from the mainland. In 1949, they fled to Taiwan as part of the KMT following the defeat in the civil war against the communists. Against this background, Ma sees himself and his party as having a duty to preserve Taiwan’s Chinese cultural identity – an identity that the KMT imposed on the entire population during the dictatorship under General Chiang Kai-shek until the end of the 1980s, including those who were not from the mainland. The Chinese identity still characterizes the KMT today, while the DPP cultivates a Taiwanese identity.
When Ma visited China in March 2023, the Taiwanese public was divided. Ma received much criticism, especially for statements made a few days before the presidential election this January: “When it comes to relations between the two sides of the Taiwan Strait, you have to trust Xi Jinping,” Ma said in an interview with German broadcaster Deutsche Welle. The KMT leadership then stopped Ma from appearing in public at the last major election rallies.
Ma Ying-jeou has lost influence within the party. A meeting with Xi Jinping could shed light on whether and under what conditions China’s leadership still seeks political dialogue with Taiwan.
The leadership in Beijing refuses any dialogue with the DPP government. The latter has been weakened after the elections in January: Lai Ching-te only received just over 40 percent of the vote in his election victory; the DPP also lost its majority in parliament. China’s government could now exploit and deepen Taiwan’s political polarization by offering dialogue with Ma and other pro-China political actors. Internally, Ma’s visit is therefore above all a welcome opportunity for the Communist Party to spread its narrative of the inseparable connection between Taiwan and China.
After the presidential elections in January, the Chinese Foreign Ministry announced that the DPP would not represent the majority opinion of the Taiwanese population. However, despite the political polarization, the overwhelming majority of the people are united in maintaining Taiwan’s democratic system and de facto sovereignty. Leonardo Pape
Over the past year, Duesseldorf has become the culinary capital of Germany, if not all of Europe, among overseas Chinese. Many of them arranged to meet in the Rhine metropolis to indulge in a real feast. The popularity was mainly due to the social media and e-commerce app Xiaohongshu 小红书, where users reported that authentic Chinese specialties could also be found in Japanese-influenced places such as the Immermannstraße.
The “Little Red Book” – the name of the Shanghai-based app – has been the most influential newcomer among Chinese apps over the past five years. Somewhere between Instagram and Pinterest, it has stolen the show from top dogs such as WeChat and Douyin, especially among younger women of the post-95 generation.
Xiaonhongshu was founded in 2013 as a shopping guide for weekend trips to Hong Kong. Over time, it developed into a channel where users can share recommendations, tutorials and reviews for products, restaurants and hotspots from all over the world with photos and short videos. But the app is much more than that. Many Chinese people use it as a kind of search engine to optimize their everyday lives, but also as a compass to keep them informed about the latest trends. Apart from the algorithms, the unique selling point is the swarm intelligence of the organically grown community.
For example, if users want to navigate through Berlin using the app, they can use the relevant keyword to find user instructions on what to wear in clubs such as Berghain, where to buy the best vintage clothes or what Asians can find in Turkish supermarkets. Those who regularly post popular content can earn commissions. Anonymous reviews are taboo. The idea is that users can trust the KOLs, the Key Opinion Leaders, completely. Xiaohongshu claimed to have more than 300 million monthly active users in 2023 – 20 percent more than in the previous year. Over 50 percent are between 18 and 35 years old and live in China’s wealthier cities such as Shenzhen or Shanghai. This makes the app highly interesting for both domestic and foreign brands looking to present themselves as premium companies in the Chinese market.
Xiaohongshu has achieved what Instagram and Pinterest have failed to do so far: Combining lifestyle with e-commerce. Users who scroll through the videos can purchase individual products with a click on the integrated “RED Mall.” The trust of the community is intended to spread to the goods on offer there. The message: it is not about commerce, but about quality. It is fitting that Xiaohongshu also mediates between influencers and brands that want to be featured in the app. The idea is to avoid the AI-generated junk image of other providers. Brands and retailers must apply for an official brand account. Influencers, in turn, must register advertising partnerships and disclose whether they have been paid for a video. Otherwise, there is a risk of reprimands and suspension. Inserting links to other e-commerce providers is also prohibited.
According to the latest estimates from the Financial Times, Xiaohongshu turned a profit for the first time in 2023. With a revenue of 3.7 billion US dollars, the app generated a net profit of 500 million US dollars. The year before, Xiaohongshu had posted a loss of 200 million US dollars on a revenue of around two billion US dollars. The lifestyle app is backed by investors such as Alibaba, Tencent and Temasek and achieved a valuation of 20 billion US dollars in its last financing round in 2021. At the beginning of the year, the platform announced that the number of retailers selling goods with a total value of over 100 million yuan on Xiaohongshu had increased fivefold compared to the previous year.
Xiaohongshu is a particularly suitable place for luxury brands to showcase themselves. Foreign companies such as Chanel, Gucci and Dior, as well as Western celebrities such as Kim Kardashian, have already set up official accounts on the app. In March, the app even organized a conference and gala dinner for the fashion industry together with French Vogue on the fringes of Paris Fashion Week. Only a few German companies have utilized the platform’s potential so far. One of them is the German drugstore chain Rossmann, which makes perfect sense given the demand for cosmetics among young Chinese people.
“Xiaohongshu is one of the most important means of reaching our potential customers with high-quality content,” Rossmann told Table.Briefings. The company reaches a wide range of target groups there “with customized posts or blogger (KOL) collaborations.”
But there are also hurdles and problems. Xiaohongshu’s planned IPO in 2021 was postponed following a crackdown in which the Chinese government urged several tech companies to reconsider a listing in the US and switch to Hong Kong as an alternative. The sheer volume of stored user data that could migrate overseas is making Beijing nervous. In late 2023, the company announced that an IPO in Hong Kong was also still on hold.
There is also no English version yet, which is likely due to foreign security concerns regarding TikTok. In December 2022, the Taiwanese government banned public sector employees from using Xiaohongshu on government devices over national security concerns.
The app was also repeatedly accused of promoting unrealistic beauty standards. The app also portrayed tourist hotspots in an exclusively positive light without pointing out potential risks. The Shanghai local authorities fined Xiaohongshu 300,000 yuan in early 2022 because the app had failed to remove content harmful to minors. Scammers had also repeatedly infiltrated the community. This is hardly surprising given the growing number of users. Competing companies, such as Tiktok’s parent company, ByteDance, are ready to steal market share from Xiaohongshu.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.
For the first time since their crisis meeting in California last November, US President Joe Biden and China’s Head of State and Party Leader Xi Jinping have spoken to each other again. This was confirmed by the White House on Tuesday following the phone call. Topics included Taiwan, security in the Indo-Pacific and trade issues. According to US media reports, the conversation was quite contentious. The US reports that the phone call lasted one hour and 45 minutes.
The two presidents met in person in San Francisco last November after a year of complete radio silence. There they had agreed to speak regularly on the phone again. They honored this agreement for the first time on Tuesday.
The Chinese state broadcaster CCTV reported a “candid and in-depth exchange” between the two leaders. However, Xi told Biden that the Taiwan issue was an “uncrossable red line.” The White House stated that Biden had called for “peace and stability” across the Taiwan Strait during the call.
Trade and sanctions issues are also said to have been contentious. State media reported that Xi warned his US counterpart of the consequences of the restrictions on technology exports. According to Xinhua, Xi said that the US was “not de-risking but creating risks.” Although relations between the two countries are in the process of stabilizing, they could “slide into conflict or confrontation.” Biden spoke out against China’s demands for a relaxation of export regulations on high-tech chips. In a statement, the US Office of the President said it would continue to take the necessary steps to prevent US technology from undermining the country’s national security.
In particular, observers consider the resumption of military communication between the two countries, which was agreed in November, to be important. The US Department of Defense previously complained that the usual direct exchange between the armed forces of the two powers was not working and that this could lead to dangerous misunderstandings and miscalculations in crisis situations. The defense ministers of both countries are expected to hold talks in the coming days.
A US government representative confirmed that the two presidents have agreed to further meetings between cabinet members of both countries. US Secretary of the Treasury Janet Yellen will travel to Beijing in the coming days to discuss urgent trade issues. US Secretary of State Antony Blinken is also expected to visit the Chinese capital in the coming days. Conversely, visits by high-ranking representatives of the Chinese government to the USA are also planned. flee
According to a recent survey, more than half of people in Southeast Asia would prefer China as an ally to the US if they had to choose between the two superpowers. In the “State of Southeast Asia 2024” survey published on Tuesday by the ISEAS Yusof Ishak Institute in Singapore, more people favored the People’s Republic (50.5 percent of the almost 2,000 respondents) than the USA (49.5 percent) for the first time. In 2023, 61.1 percent still preferred the USA, and 38.9 percent preferred China. In 2020, the institute asked this question for the first time in its sentiment survey.
This would represent a real turnaround in a region that traditionally refuses to choose between China and the USA – while many of the ASEAN states often favor Washington, particularly regarding security policy. One reason for the results is the disappointment over the US’ weak economic involvement in the region.
This is the consequence of the fact that Washington has not made any plans for the economic integration of Southeast Asia. The survey found that people there are “increasingly unsure” about the effectiveness of the Indo-Pacific Economic Framework for Prosperity (IPEF). Respondents feel that the USA offers alliances but no additional market access to the USA. Washington has been widely criticized for this. Southeast Asia, on the other hand, is connected to China as well as India in the huge free trade zone RCEP.
The inclination towards China is also particularly pronounced in countries with close economic ties to the People’s Republic and which are recipients of investments from the New Silk Road, for example. In Malaysia, 75.1 percent preferred China to the USA, followed by 73.2 percent in Indonesia and 70.6 percent in Laos. China has been Malaysia’s main trading partner for over a decade and has invested billions in the country’s key sectors.
However, the responses to Beijing’s influence in the region show that opinions on China remain ambivalent. 67.4 percent of respondents were concerned about China’s growing economic influence. And as many as 73.5 percent of respondents expressed unease about China’s growing political and strategic influence. However, 59 percent are also worried about the growing political and strategic role of the United States. Both figures are higher than in 2023, which indicates that the ASEAN states feel increasingly drawn into the geopolitical conflict between the major powers. Conversely, 58.4 percent welcome the growing weight of the ASEAN alliance in the region. ck
The New Delhi government has lodged a strong protest against China’s renaming of around 30 locations in a disputed region on the border with India. The area claimed by China is part of the federal state of Arunachal Pradesh and thus belongs to India, a spokesperson for the Ministry of External Affairs in New Delhi emphasized. He condemned China’s action as “senseless,” Just a few weeks ago, India’s Prime Minister Narendra Modi inaugurated new infrastructure projects in the region, which Beijing sharply criticized. China, in turn, claims sovereignty over the entire state.
China’s Ministry of Civil Affairs announced the new names in the region over the weekend. Specifically, around 30 settlements, mountains, rivers, a lake and a mountain pass have been renamed. They have all been given Chinese or Tibetan names. For some time now, the leadership in Beijing has referred to the region as Zangnan (藏南), which means South Tibet. In addition, Beijing published a new official map in 2023, which designated the entire state of Arunachal Pradesh as Chinese territory and introduced Chinese names to several settlements.
The two nuclear powers share a roughly 3,500-kilometer-long border. Relations between the two countries have been tense ever since a deadly border clash four years ago. At the time, soldiers from both nations attacked each other with stones, sticks and fists. According to official figures, 20 Indian and four Chinese soldiers were killed in the conflict. flee
Car manufacturer BYD likely lost its position as the world’s largest electric car manufacturer to US rival Tesla in the first quarter of 2024. From January to March, BYD sold just over 300,000 electric cars, a decrease of 43 percent from the record volume in the previous quarter. Analysts expect Tesla sales to average around 458,000 cars in the first three months of the year. The US electric car pioneer will publish its sales figures on Tuesday.
In the last quarter of 2023, BYD outperformed Tesla for the first time. However, the Chinese electric market, which is crucial for BYD, is in a slump, and competitors are in a fierce price war. BYD is particularly strong in China, meaning that the fall back to second place is also strongly connected to the situation in the domestic market – which generally performs rather slowly in the first two months of each year due to the New Year celebrations. BYD has set itself a 20 percent sales growth target to 3.6 million cars by 2024.
Meanwhile, Tesla raised the price of its most popular model in China, the Model Y e-SUV, on Monday – breaking the cycle of the discount battle initiated by the company itself for the first time. However, NIO and Xpeng responded with further price cuts. Another reason for the unrest is newcomer Xiaomi’s market launch of the SU7 a few days ago. According to Xiaomi, pre-orders for the model exceeded 88,898 cars within 24 hours. Xiaomi’s share price has skyrocketed since the launch of the car. flee/ck
The Hong Kong Stock Exchange has suspended trading in shares of the troubled property group Country Garden. The reason: The former Chinese industry giant unexpectedly reported on Thursday that it had to postpone the publication of its financial statements for 2023 to gather further information, which is a violation of the Hong Kong Stock Exchange’s regulations.
Alongside Evergrande, Country Garden is the biggest headache in the Chinese property crisis to date. The highly indebted group missed a payment to foreign creditors in 2023. According to the dpa news agency, a lender has now requested a Hong Kong court to wound up the company. The first hearing is scheduled for mid-May.
Meanwhile, China’s real estate market remains sluggish, with no recovery in sight. Although residential sales were higher in March than in the traditionally quiet month of February, the value of apartments sold by the 100 largest real estate companies was down 46 percent year-on-year at 358 billion yuan (around 46 billion euros), according to preliminary data from the China Real Estate Information Corp. Real estate group China Vanke, formerly the largest listed developer, recently announced a decline in net profit of 46 percent in 2023, exceeding analysts’ expectations. ck
Grzegorz Stec is the new head of the Brussels office of China think tank Merics. As an analyst, he deals with EU-China relations.
Hong Xiaoye has been part of Semikron China Project Management at Semikron Danfoss in Hamburg since the beginning of March. The Danish company manufactures heating and cooling technology as well as hydraulic and electric motors. She previously worked in portfolio management at Danfoss.
Is something changing in your organization? Let us know at heads@table.media!
“Digital parents” are becoming increasingly popular in China’s parallel social media world. These are older influencers who refer to their followers as “sons and daughters,” comfort them, encourage them before an exam, or give simple life advice.
Always-available moms and dads apparently satisfy a need. According to a 2018 UNICEF report on China, 26 percent of minors surveyed reported parental neglect. The number of children of divorce has been rising in the People’s Republic for years.
On top of this, there is a longing for a simpler life. Some of the most popular parent accounts come from rural provinces and take their audiences on walks through idyllic villages. This increases the nostalgia factor, even if many of the “adopted children” did not grow up in the countryside themselves.
Taiwan’s former President Ma Ying-jeou has been visiting China since Easter Monday – for the second time since March 2023. Once again, he is officially there in private, but his mission is to promote ties between the two sides of the Taiwan Strait. On his eleven-day trip, Ma will also hold political talks again and is even expected to meet President Xi Jinping next week.
Although Ma no longer holds a political office, his trip has significant symbolic value. While in office, he had campaigned for the expansion of economic relations with China and for emphasizing Taiwan’s cultural identity as Chinese, as Leonardo Pape explains.
Both continue to cause discussion and controversy in Taiwan to this day. Therefore, the ruling DPP is not the only party to criticize the ex-president’s trip; his own party, the KMT, also finds its former leader’s China tour certainly controversial.
The Chinese app Xiaohongshu has achieved what Western platforms such as Instagram have so far failed to do: fully combining social media lifestyle and e-commerce. Anonymous reviews are taboo on the app. Users are supposed to be able to trust the influencers there completely, as Fabian Peltsch describes.
Xiaohongshu claims to have had more than 300 million monthly active users in 2023 – 20 percent more than the previous year. Most of them are young and live in metropolises such as Shanghai.
At the start of his eleven-day China visit, former Taiwanese President Ma Ying-jeou of the Kuomintang Party (KMT) called for more dialogue and cooperation between Taiwan and China. During his first stop in Shenzhen in southern China, Ma met with Song Tao, Chairman of the Taiwan Affairs Office of the State Council, among others.
Song passed on greetings from President Xi Jinping and took the opportunity to reaffirm the Communist Party’s political line: China opposes all “separatist activities” in Taiwan and any external interference. The leadership in Beijing has increased political and military pressure on Taiwan in recent years.
Ma, Taiwan’s president from 2008 to 2016, continues to strive for economic and political rapprochement with China. He already visited the People’s Republic a year ago – as a private individual, as he emphasized. But even then, Ma held political talks. Ma no longer holds a high party office, and his visit to China is being organized by his private foundation. He is accompanied by a youth delegation, which is intended to symbolize civil society exchange with China.
The KMT leadership has stated that it is not involved in the planning of the trip. However, party MPs welcomed the prospect of political dialogue with China’s leadership. In contrast, the China-critical ruling party DPP criticized the trip. Member of Parliament Wu Su-yao pointed out, among other things, that Ma and his delegation had visited the tech company Tencent and drone manufacturer Shenzhen DJI Sciences and Technologies, both of which had been sanctioned by the US. Among other things, the drones from Shenzhen DJI Sciences and Technologies are used by both sides in the war in Ukraine.
President Tsai Ing-wen and her Vice President Lai Ching-te, who won the presidential election in January, did not comment on the visit. Lai will be sworn in as Tsai’s successor on May 20.
Taiwanese media have reported in recent days, citing anonymous sources, that Ma was planning to meet with Xi Jinping near the end of his China visit. Neither Ma nor the Chinese leadership have confirmed this yet. When asked, the chairman of Ma’s foundation only said that Ma hoped to meet his “old friend” in China. So far, Ma has only met his “old friend” once in public. The meeting between Ma and Xi in Singapore in 2015 was supposed to be the high point of the rapprochement between Taiwan and China. At the time, however, Ma’s political position was already significantly weakened.
The year before, students in the Sunflower Movement had opposed a services agreement negotiated by the KMT government with China. They feared that stronger economic dependencies would also threaten Taiwan’s political sovereignty. The pressure of the protests led to the ratification of the agreement being overturned in parliament, and Ma’s approval ratings collapsed. The meeting with Xi Jinping then turned into an empty, symbolic political gesture. In 2016, the people of Taiwan elected DPP politician Tsai Ing-wen as president by a large majority.
Ma’s family is from the mainland. In 1949, they fled to Taiwan as part of the KMT following the defeat in the civil war against the communists. Against this background, Ma sees himself and his party as having a duty to preserve Taiwan’s Chinese cultural identity – an identity that the KMT imposed on the entire population during the dictatorship under General Chiang Kai-shek until the end of the 1980s, including those who were not from the mainland. The Chinese identity still characterizes the KMT today, while the DPP cultivates a Taiwanese identity.
When Ma visited China in March 2023, the Taiwanese public was divided. Ma received much criticism, especially for statements made a few days before the presidential election this January: “When it comes to relations between the two sides of the Taiwan Strait, you have to trust Xi Jinping,” Ma said in an interview with German broadcaster Deutsche Welle. The KMT leadership then stopped Ma from appearing in public at the last major election rallies.
Ma Ying-jeou has lost influence within the party. A meeting with Xi Jinping could shed light on whether and under what conditions China’s leadership still seeks political dialogue with Taiwan.
The leadership in Beijing refuses any dialogue with the DPP government. The latter has been weakened after the elections in January: Lai Ching-te only received just over 40 percent of the vote in his election victory; the DPP also lost its majority in parliament. China’s government could now exploit and deepen Taiwan’s political polarization by offering dialogue with Ma and other pro-China political actors. Internally, Ma’s visit is therefore above all a welcome opportunity for the Communist Party to spread its narrative of the inseparable connection between Taiwan and China.
After the presidential elections in January, the Chinese Foreign Ministry announced that the DPP would not represent the majority opinion of the Taiwanese population. However, despite the political polarization, the overwhelming majority of the people are united in maintaining Taiwan’s democratic system and de facto sovereignty. Leonardo Pape
Over the past year, Duesseldorf has become the culinary capital of Germany, if not all of Europe, among overseas Chinese. Many of them arranged to meet in the Rhine metropolis to indulge in a real feast. The popularity was mainly due to the social media and e-commerce app Xiaohongshu 小红书, where users reported that authentic Chinese specialties could also be found in Japanese-influenced places such as the Immermannstraße.
The “Little Red Book” – the name of the Shanghai-based app – has been the most influential newcomer among Chinese apps over the past five years. Somewhere between Instagram and Pinterest, it has stolen the show from top dogs such as WeChat and Douyin, especially among younger women of the post-95 generation.
Xiaonhongshu was founded in 2013 as a shopping guide for weekend trips to Hong Kong. Over time, it developed into a channel where users can share recommendations, tutorials and reviews for products, restaurants and hotspots from all over the world with photos and short videos. But the app is much more than that. Many Chinese people use it as a kind of search engine to optimize their everyday lives, but also as a compass to keep them informed about the latest trends. Apart from the algorithms, the unique selling point is the swarm intelligence of the organically grown community.
For example, if users want to navigate through Berlin using the app, they can use the relevant keyword to find user instructions on what to wear in clubs such as Berghain, where to buy the best vintage clothes or what Asians can find in Turkish supermarkets. Those who regularly post popular content can earn commissions. Anonymous reviews are taboo. The idea is that users can trust the KOLs, the Key Opinion Leaders, completely. Xiaohongshu claimed to have more than 300 million monthly active users in 2023 – 20 percent more than in the previous year. Over 50 percent are between 18 and 35 years old and live in China’s wealthier cities such as Shenzhen or Shanghai. This makes the app highly interesting for both domestic and foreign brands looking to present themselves as premium companies in the Chinese market.
Xiaohongshu has achieved what Instagram and Pinterest have failed to do so far: Combining lifestyle with e-commerce. Users who scroll through the videos can purchase individual products with a click on the integrated “RED Mall.” The trust of the community is intended to spread to the goods on offer there. The message: it is not about commerce, but about quality. It is fitting that Xiaohongshu also mediates between influencers and brands that want to be featured in the app. The idea is to avoid the AI-generated junk image of other providers. Brands and retailers must apply for an official brand account. Influencers, in turn, must register advertising partnerships and disclose whether they have been paid for a video. Otherwise, there is a risk of reprimands and suspension. Inserting links to other e-commerce providers is also prohibited.
According to the latest estimates from the Financial Times, Xiaohongshu turned a profit for the first time in 2023. With a revenue of 3.7 billion US dollars, the app generated a net profit of 500 million US dollars. The year before, Xiaohongshu had posted a loss of 200 million US dollars on a revenue of around two billion US dollars. The lifestyle app is backed by investors such as Alibaba, Tencent and Temasek and achieved a valuation of 20 billion US dollars in its last financing round in 2021. At the beginning of the year, the platform announced that the number of retailers selling goods with a total value of over 100 million yuan on Xiaohongshu had increased fivefold compared to the previous year.
Xiaohongshu is a particularly suitable place for luxury brands to showcase themselves. Foreign companies such as Chanel, Gucci and Dior, as well as Western celebrities such as Kim Kardashian, have already set up official accounts on the app. In March, the app even organized a conference and gala dinner for the fashion industry together with French Vogue on the fringes of Paris Fashion Week. Only a few German companies have utilized the platform’s potential so far. One of them is the German drugstore chain Rossmann, which makes perfect sense given the demand for cosmetics among young Chinese people.
“Xiaohongshu is one of the most important means of reaching our potential customers with high-quality content,” Rossmann told Table.Briefings. The company reaches a wide range of target groups there “with customized posts or blogger (KOL) collaborations.”
But there are also hurdles and problems. Xiaohongshu’s planned IPO in 2021 was postponed following a crackdown in which the Chinese government urged several tech companies to reconsider a listing in the US and switch to Hong Kong as an alternative. The sheer volume of stored user data that could migrate overseas is making Beijing nervous. In late 2023, the company announced that an IPO in Hong Kong was also still on hold.
There is also no English version yet, which is likely due to foreign security concerns regarding TikTok. In December 2022, the Taiwanese government banned public sector employees from using Xiaohongshu on government devices over national security concerns.
The app was also repeatedly accused of promoting unrealistic beauty standards. The app also portrayed tourist hotspots in an exclusively positive light without pointing out potential risks. The Shanghai local authorities fined Xiaohongshu 300,000 yuan in early 2022 because the app had failed to remove content harmful to minors. Scammers had also repeatedly infiltrated the community. This is hardly surprising given the growing number of users. Competing companies, such as Tiktok’s parent company, ByteDance, are ready to steal market share from Xiaohongshu.
Sinolytics is a research-based business consultancy entirely focused on China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.
For the first time since their crisis meeting in California last November, US President Joe Biden and China’s Head of State and Party Leader Xi Jinping have spoken to each other again. This was confirmed by the White House on Tuesday following the phone call. Topics included Taiwan, security in the Indo-Pacific and trade issues. According to US media reports, the conversation was quite contentious. The US reports that the phone call lasted one hour and 45 minutes.
The two presidents met in person in San Francisco last November after a year of complete radio silence. There they had agreed to speak regularly on the phone again. They honored this agreement for the first time on Tuesday.
The Chinese state broadcaster CCTV reported a “candid and in-depth exchange” between the two leaders. However, Xi told Biden that the Taiwan issue was an “uncrossable red line.” The White House stated that Biden had called for “peace and stability” across the Taiwan Strait during the call.
Trade and sanctions issues are also said to have been contentious. State media reported that Xi warned his US counterpart of the consequences of the restrictions on technology exports. According to Xinhua, Xi said that the US was “not de-risking but creating risks.” Although relations between the two countries are in the process of stabilizing, they could “slide into conflict or confrontation.” Biden spoke out against China’s demands for a relaxation of export regulations on high-tech chips. In a statement, the US Office of the President said it would continue to take the necessary steps to prevent US technology from undermining the country’s national security.
In particular, observers consider the resumption of military communication between the two countries, which was agreed in November, to be important. The US Department of Defense previously complained that the usual direct exchange between the armed forces of the two powers was not working and that this could lead to dangerous misunderstandings and miscalculations in crisis situations. The defense ministers of both countries are expected to hold talks in the coming days.
A US government representative confirmed that the two presidents have agreed to further meetings between cabinet members of both countries. US Secretary of the Treasury Janet Yellen will travel to Beijing in the coming days to discuss urgent trade issues. US Secretary of State Antony Blinken is also expected to visit the Chinese capital in the coming days. Conversely, visits by high-ranking representatives of the Chinese government to the USA are also planned. flee
According to a recent survey, more than half of people in Southeast Asia would prefer China as an ally to the US if they had to choose between the two superpowers. In the “State of Southeast Asia 2024” survey published on Tuesday by the ISEAS Yusof Ishak Institute in Singapore, more people favored the People’s Republic (50.5 percent of the almost 2,000 respondents) than the USA (49.5 percent) for the first time. In 2023, 61.1 percent still preferred the USA, and 38.9 percent preferred China. In 2020, the institute asked this question for the first time in its sentiment survey.
This would represent a real turnaround in a region that traditionally refuses to choose between China and the USA – while many of the ASEAN states often favor Washington, particularly regarding security policy. One reason for the results is the disappointment over the US’ weak economic involvement in the region.
This is the consequence of the fact that Washington has not made any plans for the economic integration of Southeast Asia. The survey found that people there are “increasingly unsure” about the effectiveness of the Indo-Pacific Economic Framework for Prosperity (IPEF). Respondents feel that the USA offers alliances but no additional market access to the USA. Washington has been widely criticized for this. Southeast Asia, on the other hand, is connected to China as well as India in the huge free trade zone RCEP.
The inclination towards China is also particularly pronounced in countries with close economic ties to the People’s Republic and which are recipients of investments from the New Silk Road, for example. In Malaysia, 75.1 percent preferred China to the USA, followed by 73.2 percent in Indonesia and 70.6 percent in Laos. China has been Malaysia’s main trading partner for over a decade and has invested billions in the country’s key sectors.
However, the responses to Beijing’s influence in the region show that opinions on China remain ambivalent. 67.4 percent of respondents were concerned about China’s growing economic influence. And as many as 73.5 percent of respondents expressed unease about China’s growing political and strategic influence. However, 59 percent are also worried about the growing political and strategic role of the United States. Both figures are higher than in 2023, which indicates that the ASEAN states feel increasingly drawn into the geopolitical conflict between the major powers. Conversely, 58.4 percent welcome the growing weight of the ASEAN alliance in the region. ck
The New Delhi government has lodged a strong protest against China’s renaming of around 30 locations in a disputed region on the border with India. The area claimed by China is part of the federal state of Arunachal Pradesh and thus belongs to India, a spokesperson for the Ministry of External Affairs in New Delhi emphasized. He condemned China’s action as “senseless,” Just a few weeks ago, India’s Prime Minister Narendra Modi inaugurated new infrastructure projects in the region, which Beijing sharply criticized. China, in turn, claims sovereignty over the entire state.
China’s Ministry of Civil Affairs announced the new names in the region over the weekend. Specifically, around 30 settlements, mountains, rivers, a lake and a mountain pass have been renamed. They have all been given Chinese or Tibetan names. For some time now, the leadership in Beijing has referred to the region as Zangnan (藏南), which means South Tibet. In addition, Beijing published a new official map in 2023, which designated the entire state of Arunachal Pradesh as Chinese territory and introduced Chinese names to several settlements.
The two nuclear powers share a roughly 3,500-kilometer-long border. Relations between the two countries have been tense ever since a deadly border clash four years ago. At the time, soldiers from both nations attacked each other with stones, sticks and fists. According to official figures, 20 Indian and four Chinese soldiers were killed in the conflict. flee
Car manufacturer BYD likely lost its position as the world’s largest electric car manufacturer to US rival Tesla in the first quarter of 2024. From January to March, BYD sold just over 300,000 electric cars, a decrease of 43 percent from the record volume in the previous quarter. Analysts expect Tesla sales to average around 458,000 cars in the first three months of the year. The US electric car pioneer will publish its sales figures on Tuesday.
In the last quarter of 2023, BYD outperformed Tesla for the first time. However, the Chinese electric market, which is crucial for BYD, is in a slump, and competitors are in a fierce price war. BYD is particularly strong in China, meaning that the fall back to second place is also strongly connected to the situation in the domestic market – which generally performs rather slowly in the first two months of each year due to the New Year celebrations. BYD has set itself a 20 percent sales growth target to 3.6 million cars by 2024.
Meanwhile, Tesla raised the price of its most popular model in China, the Model Y e-SUV, on Monday – breaking the cycle of the discount battle initiated by the company itself for the first time. However, NIO and Xpeng responded with further price cuts. Another reason for the unrest is newcomer Xiaomi’s market launch of the SU7 a few days ago. According to Xiaomi, pre-orders for the model exceeded 88,898 cars within 24 hours. Xiaomi’s share price has skyrocketed since the launch of the car. flee/ck
The Hong Kong Stock Exchange has suspended trading in shares of the troubled property group Country Garden. The reason: The former Chinese industry giant unexpectedly reported on Thursday that it had to postpone the publication of its financial statements for 2023 to gather further information, which is a violation of the Hong Kong Stock Exchange’s regulations.
Alongside Evergrande, Country Garden is the biggest headache in the Chinese property crisis to date. The highly indebted group missed a payment to foreign creditors in 2023. According to the dpa news agency, a lender has now requested a Hong Kong court to wound up the company. The first hearing is scheduled for mid-May.
Meanwhile, China’s real estate market remains sluggish, with no recovery in sight. Although residential sales were higher in March than in the traditionally quiet month of February, the value of apartments sold by the 100 largest real estate companies was down 46 percent year-on-year at 358 billion yuan (around 46 billion euros), according to preliminary data from the China Real Estate Information Corp. Real estate group China Vanke, formerly the largest listed developer, recently announced a decline in net profit of 46 percent in 2023, exceeding analysts’ expectations. ck
Grzegorz Stec is the new head of the Brussels office of China think tank Merics. As an analyst, he deals with EU-China relations.
Hong Xiaoye has been part of Semikron China Project Management at Semikron Danfoss in Hamburg since the beginning of March. The Danish company manufactures heating and cooling technology as well as hydraulic and electric motors. She previously worked in portfolio management at Danfoss.
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“Digital parents” are becoming increasingly popular in China’s parallel social media world. These are older influencers who refer to their followers as “sons and daughters,” comfort them, encourage them before an exam, or give simple life advice.
Always-available moms and dads apparently satisfy a need. According to a 2018 UNICEF report on China, 26 percent of minors surveyed reported parental neglect. The number of children of divorce has been rising in the People’s Republic for years.
On top of this, there is a longing for a simpler life. Some of the most popular parent accounts come from rural provinces and take their audiences on walks through idyllic villages. This increases the nostalgia factor, even if many of the “adopted children” did not grow up in the countryside themselves.