mRNA vaccines + WeChat + New year

Dear reader,

To use WeChat or not to use it? Foreigners are asking themselves this question once again. Because in recent months, WeChat has been asking users with foreign phone numbers to either submit a Chinese number or switch directly to Weixin, the Chinese version of the app. Frank Sieren investigated why Tencent, the company behind WeChat and Weixin, is taking this complicated step and maintains two separate apps behind the scenes. With China’s new data protection law on the one side and requirements from foreign regulators on the other, Tencent is in a quandary and had to act.

Hope always dies last. This is apparently also the case with the Chinese-developed mRNA vaccine Arcov. At first, the mRNA vaccine raised hopes that it could cause Beijing to soon reopen the borders. But this hope was replaced by mere expectation management. Our Beijing team noted that, for quite some time, state media declared that there is no foreseeable end to zero-covid, even if a new vaccine could provide better protection for its people.

Did you also hand out red envelopes for Chinese New Year, or may even receive some yourself? It’s already tricky enough not to commit a faux pas when deciding on how much money to put into the envelope. Too much could embarrass the recipient, but too little doesn’t look good for the gift-giver’s generosity. But that’s not the only catch. Felix Lee describes what other mistakes could be made. After I was done reading his column, I felt much better about the fact that I only put a blue (euro) bill instead of a red one in the red envelope for my relatives’ children this year.

Have a pleasant day!

Your
Ning Wang

Weixin and WeChat: making two out of one

WeChat App — Tencent wants to separate Wechat and Weixin in the future.

By

Frank Sieren

Over the past few months, more and more foreign users of the Chinese universal app WeChat have been asked to change their phone number or switch their account to the Chinese counterpart called Weixin 微信. This confused many customers, who previously considered Weixin and WeChat to be the same platform. Until now, they considered both to be merely two different language versions of the same app, provided for internationality reasons. But in fact, the parent company Tencent has almost silently split its service into two different apps.

WeChat now runs as an international version on data centers outside China, while Weixin is handled as the local Chinese version on servers within the People’s Republic. Only users with a Chinese phone number will still be able to use Weixin, the local Chinese version. Both apps have 1.2 billion monthly global active users combined, most of whom are located in China.

WeChat operator Tencent has not yet issued an official statement. However, it is likely that the Shenzhen-based company is bowing to China’s new data protection law. It regulates and monitors the transfer of personal user information between Chinese and foreign servers more closely than ever. The Personal Information Protection Law (PIPL), which came into force in November 2021 (China.Table reported), is one of the strictest in the world when it comes to data traffic and the storage of personal information.

Companies, like Tencent, now need user permission to gather sensitive personal data on things like biometrics, health, financial accounts, and locations. Platforms that store and even share personal data without this permission will face fines or blocking. To comply with the new data regulations, the group had already appointed a data protection supervisory committee in October. This made Tencent China’s first major tech company comply with the requirements of the PIPL law.

As Tencent announced four weeks ago, the company now wants to provide its users with a detailed list of all collected personal data. Basic user information such as:

E-mail addresses,
contacts,
devices connected to the account,
data generated within the app, and
a summary of what information has been shared with third parties.

According to Tencent, the list can be found in the settings of the latest app version, but it is still in beta testing on Android devices.

WeChat: Western and Chinese versions remain compatible

However, the split into standalone English and Chinese versions is also tied to an executive order signed by former US President Donald Trump. Weixin and its parent company Tencent were placed on a blacklist of Chinese tech apps in the wake of the US-China trade dispute. Although a California court had struck down Trump’s executive order, the threat of being blacklisted in the US remains, even under President Joe Biden.

Unlike other Chinese apps like TikTok and Douyin, which have existed in a domestic and an international version since the start, WeChat and Weixin are still compatible with each other, for example, in terms of app-to-app communication. Users of the international version can easily communicate with users of the Chinese version, just like before. But they no longer have access to certain functions, like the short video section, health codes, or live streaming.

As far as censorship is concerned, the Chinese version is apparently also subject to stricter regulations, as the South China Morning Post reports. As an investigation by Citizen Lab at the University of Toronto revealed, users who have registered on Weixin with a mainland number could still be censored, regardless of their location. And that’s even if they later switch to an international phone number. In this case, not even a VPN tunnel, which can otherwise be used to circumvent the censorship, will help.

China’s mRNA vaccine makes slow progress

On January 24, new data was published from a Phase 1 clinical trial of Arcov, China’s most advanced mRNA vaccine candidate (China.Table reported). According to the data, “high concentrations of neutralizing antibodies against live SARS-CoV-2” were found in most subjects after two vaccinations. No severe side effects were recorded. However, the scientists also stated that it is still too early to accurately assess its efficacy.

To clarify the effectiveness of the vaccine and receive regulatory approval, a large-scale study is first required, involving several tens of thousands of participants. However, such tests had recently been repeatedly delayed because, according to the companies involved, it was problematic to find enough fully unvaccinated participants. This hurdle now appears to have been cleared. The vaccine, jointly developed by the Academy of Military Science, Walvax Biotechnology, and Suzhou Abogen Biosciences, is currently being administered to 28,000 participants in Mexico and Indonesia. However, according to database clinicaltrials.gov, this Phase 3 trial is not expected to be completed before May 2023.

China seeks mRNA vaccine autonomy

So far, Beijing has relied on inactivated vaccines to protect its population, which are based on traditional technology but are far less effective against the Omicron and Delta variants. An mRNA vaccine could actually be available in China by now. For a year and a half, Shanghai-based company Fosun has held exclusive rights to distribute Biontech’s vaccine in Greater China. But deliveries have so far been limited to Hong Kong, Macau, and Taiwan because regulatory approval has so far been denied in mainland China.

Analysts believe that China is waiting for a domestic vaccine to avoid dependence on foreign countries. The most effective mRNA vaccines from Biontech and Moderna are therefore not available to the Chinese. Whether Arcov is as equally effective as Western vaccines is still unclear. The latest Phase 1 trial involved 120 volunteers at a hospital in Hangzhou. Participants were divided into groups and received two injections of varying dosages at a 28-day interval. The study found that 15mcg was the most effective dose, producing about twice as many neutralizing antibodies as normally found in recovered COVID-19 patients.

Trials with the Pfizer/Biontech vaccine had previously shown that it could produce three times the amount of neutralizing antibodies. However, Chinese experts pointed out that a different analysis method was used, which is why the Arcov results cannot be compared. The results of the initial Arcov studies were “looks pretty standard” with “no obvious red flags”, the Hong Kong newspaper South China Morning Post quoted John Moore, professor of microbiology and immunology at Weill Cornell Medical College in New York, as saying. However, the expert did not comment yet on whether the Chinese vaccine is any good.

Chinese media practice expectation management

While the Chinese hope that their vaccine will prove as effective as Moderna or Biontech. However, German manufacturer Curevac had to learn the hard way that failure is also possible when its mRNA vaccine failed in the late stages of trials in June of last year. Beijing is already practicing expectation management. For example, Chinese state media have been spreading reports for weeks that an end to the strict zero-covid strategy is not to be expected, even after the Winter Olympics. That is unlikely to change, even if the population is protected with a new vaccine. “We previously thought COVID-19 could be basically contained through vaccines, but now it seems that there’s no simple method to control it except with comprehensive measures,” Wu Zunyou, senior epidemiologist at China’s Center for Disease Control and Prevention, said in an interview with the state-run Global Times newspaper on Sunday.

According to Wu, it is also not a good idea to rely on herd immunity. Immunity from an influenza infection would last up to a year, whereas immunity from a Covid infection usually lasts only about three to six months. “Although influenza also has variation, its variation is regular, and its variation cycle is relatively long, usually once a year,” Wu said. Covid, on the other hand, is still changing constantly, which is why it is difficult to predict how the pandemic will progress. The Coronavirus also remains significantly more dangerous than influenza, even in the actually milder Omicron variant, because, unlike influenza, the upper and not the lower respiratory tract is targeted. Pneumonia is therefore much more likely. Gregor Koppenburg/Jörn Petring

China and NASA angry with Musk

China has accused the US of not sharing enough information about SpaceX satellites. The accusation was that the Starlink satellites of Elon Musk’s company came dangerously close to the Chinese space station, Bloomberg reports. It claimed that US authorities shared insufficient information about a possible collision course. “Chinese astronauts were facing real and urgent safety threats,” Chinese Foreign Ministry spokesman Zhao Lijian said.

China has also complained about the alleged incident at the United Nations. The accusations were made after up to 40 Starlink satellites were recently hit by a solar storm shortly after launch. As a result, they will not be able to reach their intended altitude and will tumble back to Earth. However, they will burn up in the atmosphere in the process, according to SpaceX.

NASA also expressed concern about the 30,000 planned Starlink satellites, as reported by the South China Morning Post. The satellites could cause a “significant increase” of potential collisions in Earth’s lower orbit. Scientific activities such as the use of telescopes could also be affected. According to NASA, the Starlink satellites would more than quintuple the number of objects to be tracked in the lower orbit. SpaceX has repeatedly asserted that collisions are unlikely because the satellites are able to perform evasive maneuvers. But NASA is challenging this claim.

The Starlink satellites are supposed to provide Internet access to remote regions of the world. However, Beijing fears that Starlink will also expand the U.S. military’s communications capacity, putting China’s national security at risk, according to the South China Morning Post. China is planning a similar satellite network itself. Within the next three months, the start-up Galaxyspace plans to launch six satellites into space. A thousand more are to follow in the near future, rivaling Musk’s Starlink program. nib

Lithuania’s government calls for united stand against China

Chinese sanctions have prompted Lithuania’s Foreign Minister Gabrielius Landsbergis to call on all democratic nations to stand united against “global order disruptors” such as China and Russia. One day before the meeting of the Quad countries Australia, Japan, India and the United States, Landsbergis spoke in the Australian capital Canberra, saying that human rights violations in the People’s Republic of China must be repeatedly addressed. “These things do cost, but principles cost,” the Foreign Minister said at the event.

Shortly afterward, China announced that it would impose import bans on various Lithuanian industries. After Chinese customs had already refused to clear several Lithuanian goods for weeks, the import of beef, alcohol, and dairy products from Lithuania is now officially banned. It is unclear whether the announcement is related to the current statements. Lithuania had previously exported only small quantities of these goods to the People’s Republic. The sanctions are retribution for opening a “Taiwan office” in Vilnius. (China.Table reported)

Speaking at the Press Club, Landsbergis criticized “people who would want that the problems would not be talked about.” For instance, to keep products produced by forced labor in Xinjiang out of supply chains, “do not expect that when we solve them they will be for free. There will be a price for everybody to pay,” the foreign minister said. Landsbergis thus also criticized the EU Commission, which plans to present a supply chain law by the end of the month. It is already clear: The much-discussed import ban on products by forced labor will not be included (China.Table reported).

Meanwhile, the Lithuanian Foreign Minister encouraged other countries to expand their diplomatic relations with Taiwan. The democratic island nation had recently opened a representative office in the Lithuanian capital of Vilnius, called the “Taiwan Office.” He would not be surprised if other states followed suit, Landsbergis said. grz

Financial authorities support unstable markets

China’s financial authorities are trying to stop the markets from slipping further. On the one hand, state-controlled funds are intervening in the stock market to support prices. On the other hand, the central bank is easing restrictions on mortgage lending. These measures are intended to inject fresh capital into the ailing real estate sector and boost housing construction. Valuations for investment properties had fallen considerably in the past year. Economic planners now want to prevent a downward spiral in the financial sector.

Since February 2021, shares on the Shanghai stock exchange have dropped by 20 percent. The index of the 50 most important stocks has fallen from over 4,000 points to below 3,200 points in this period. The downward trend has picked up speed in recent days. Then on Tuesday afternoon, state-owned funds such as China Securities Finance and Central Huijin intervened by buying financial stocks from the market, Bloomberg reported, citing stock market circles. The influx did in fact give a boost to share prices. Even if the stock market is not central to corporate financing, a weak stock market can certainly limit growth.

The release of restrictions on real estate loans follows a similar logic. The central bank has ensured that the availability of loans for the construction of affordable homes and rental apartments will improve in the future. In doing so, it has abolished a limit that it first imposed on banks a year ago. The demand for real estate loans in China is generally huge. The limiting factor is regulations designed to prevent the market from overheating. However, since problems erupted at real estate market leader Evergrande (China.Table reported), prices have already declined significantly.

Real estate is a key financial investment in China. Both private households and corporations deposit their funds in real estate. A decline in valuations hurts their balance sheets. After all, these properties should directly contrast borrowed money. If the value of a company’s property and other real estate drops, it can borrow less money or even has to reduce debt in a short period. Even though a real estate bubble is not in the planners’ interest, they don’t want an uncontrolled crash either. fin

Beijing will further reform China’s education system

China’s Ministry of Education has presented new plans to further reduce the pressure on students. The government wants to monitor compliance with rules on extracurricular tutoring more closely and thus reduce the burden of homework and extracurricular tutoring, as business portal Caixin reports. According to a policy paper, measures that have been established for elementary and middle school students over the past year will also apply to high school seniors in the future. Since last year’s reforms, 80 percent of tutoring companies have vanished from the market, ministry data show.

In addition, the Ministry of Education wants to evaluate the ideological and political orientation of teachers. No further details were provided. However, it can be assumed that political influence on teachers and curricula will continue to increase.

The ministry also announced the construction of new preschools in urban and rural areas. Preschool education is to be adequately funded. Education spending should total four percent of China’s GDP, the ministry said. nib

Olympia-Ticker – silver, a defeat, and accusations

Thursday had its good and bad sides for China. They won another medal. But accusations from South Korea of unfair behavior and strange refereeing decisions overshadowed the opening weekend’s short track mixed. China’s ice hockey team also had to compete in Group A of the preliminary round for the first time.

The Chinese team has won the next medal in ski freestyle. This time, however, it was not superstar Eileen Gu who won the medal, but the mixed team in aerials. The athletes perform flips, spins and straddles at insane heights from a jumping hill with an almost vertical jumping surface. Each jump has a fixed level of difficulty. The teams consist of two women and one man, or vice versa. In the end, China even gave away gold: After the first round, Xu Mengtao, Jia Zongyang and Qi Guangpu were still clearly in the lead. But then, Jia Zongyang flipped over during the landing. China fell behind the USA and finished in second place ahead of Canada.
China’s hastily assembled ice hockey team (China.Table reported) had to face the US, of all teams, at the start of the preliminary round in Group A. The Americans are short of several star players due to the pandemic. Nevertheless, China suffered a heartbreaking 8-0 defeat at the hands of the USA. Germany also competes in Group A and lost its opening match against Canada in an equally clear 1:5.
After China’s short track star Ren Ziwei was disqualified on Wednesday, the host nation is facing more trouble in their signature event. South Korea is fuming over last weekend’s mixed competition. China had won gold, South Korea silver. South Korea’s short tracker Kwak Yoon Gy from the mixed team, among others, criticized that there had been foul play. He called China’s victory “illegitimate” in the Korean press. What had happened? China had actually only finished third in the semifinals, behind Hungary and the USA. It was only when the USA was disqualified at the end of the semifinals that China slipped into second place and into the final. The Russians were also disqualified because they obstructed two Chinese skaters during the relay exchange, who then missed their tap. According to the Korean interpretation, the Chinese should have been disqualified as well. However, two other accusations probably weigh more heavily. A Chinese skater pushed an opponent with both hands – and was not disqualified, although this is a clear rule violation. A video also shows a Chinese skater pushing the puck between the legs of an opponent to limit the lane. The latter fell as a result. The Chinese team stressed afterwards that it was an accident. On the video, however, it looks more like a deliberate action. In any case, the skater was not disqualified. Either way, China’s first gold medal of the Winter Games has been tarnished by the videos. ck

The red envelope and the money problem

By Felix Lee

The red envelope during the New Year (hongbao 红包) is the Chinese equivalent of a lovingly wrapped gift at Christmas. Already weeks before the most important festival in Chinese culture, they are offered in all varieties on the street, in department stores and supermarkets: Envelopes often folded from glossy paper, adorned with (preferably golden) characters that promise a long life, many offspring, luck, wealth and the like. And these red envelopes hold money.

These envelopes do have their advantages. Unlike Christian Christmas, there is no gnawing uncertainty whether the recipient will actually like his present. After all, cash is always welcome. But mistakes can still be made.

A few years ago, I made my very own experiences with this gifting culture during the Chinese New Year. Since my previous visit to my Chinese relatives, my age had moved me from being the recipient of these red envelopes to being the giver. The rule is that anyone who is a child, student, pensioner, first-time employee, or unemployed are allowed to receive these envelopes. Anyone who earns a decent living is the giver.

I prepared myself accordingly. In exemplary fashion, I had stocked up on red envelopes in packs of ten at the nearest supermarket, diligently filling them with particularly clean and unwrinkled 100 yuan bills that I had collected throughout the year. Of these, about 200 yuan were meant for my seven-year-old cousin, 200 for the nine-year-old twins of my youngest aunt. But then, things started to get complicated: What about my cousin, only two years younger, the son of my second-oldest aunt? He was already independent with an architect’s office, although business was poor. My mother recommended that I also prepare an envelope for him. “Just in case he prepared one for you, too.”

And what about the grandparents? “Absolutely,” my mother replied. She said it was, in fact, obligatory. Filial piety (xiaoshun 孝顺) dictates that children offer money to their parents and grandparents on the occasion of the New Year. I didn’t have to give my mother a red envelope: She knew that I hadn’t grown up with this tradition. But I did give my grandmother money – and it was quite a sum. “意思,意思 (yisi, yisi)” – purely for symbolism’s sake. She would not accept it anyway.

So I saw myself perfectly prepared for the New Year’s Eve celebration with my extended family. When my cousin, who was almost the same age, started handing out his prepared envelopes, I wanted to follow his example. But it wasn’t that easy. While I was still digging for my envelopes, the first fight broke out between my cousin and the aunt with the twins. “That’s much too much,” my aunt shouted, the children don’t deserve that much. She tore the envelopes out of her two sons’ hands and tried to put them back into my cousin’s hands. He refused and gave all kinds of reasons why the money was justified. They had been so hardworking last year, so kind and helpful to their grandparents.

I wanted to follow my cousin’s example and insisted on my gift despite all the feigned rejection, but I’m not that skilled at these kinds of pleasantries. And my flailing seemed a bit awkward. I’m sure everyone noticed I was doing this for the first time.

My aunt eventually gave in and told her two apathetic-looking sons to thank me and my cousin. However, she put the red envelopes into her own pocket. When I asked, somewhat surprised, why the twins didn’t get them, she replied, “Well, listen,” she has to come up with the money for the many red envelopes she had to give to others somehow. That’s why she pocketed the cash presents. That was only logical, she said.

I expected that my grandmother would show similar resistance as my aunt with the twins. But she only said a quick “thank you” and grabbed her envelope without further ado. That was the moment when I began to wonder if the whole tradition hadn’t created a money circuit between adults, with little benefit for the children.

And those who are otherwise in need of money also tend to miss out. When I wanted to hand over an envelope to my cousin, who is almost my age, he seemed a bit piqued. I didn’t know whether it was out of politeness or whether he was serious when he said that this was now a “loss of face” for him. “But why,” I asked. His answer: Because he had nothing prepared for me.

At the end of the evening, it was once again realized that the more or less carefully selected gifts in the Christian cultural sphere have their advantages over the seemingly low-effort cash envelopes. After all, cash is always cash. Even if it is wrapped in glossy paper.

Nathan Chen won an Olympic medal in figure skating with the most challenging free skate. Chen, who competes for the US, was only briefly mentioned in Chinese state media. On social media, a hashtag about the 22-year-old’s victory did trend on the Weibo short message service. But many of the comments were negative or nationalistic in tone. Among other things, Chen was called a “banana” – a term used to describe people of Asian descent who are Westernized.

CHINA.TABLE EDITORIAL OFFICE

Amelie
Richter

Marcel
Grzanna

Fabian
Peltsch

Julia
Fiedler

Angela
Köckritz

Jörn
Petring

Dear reader,

To use WeChat or not to use it? Foreigners are asking themselves this question once again. Because in recent months, WeChat has been asking users with foreign phone numbers to either submit a Chinese number or switch directly to Weixin, the Chinese version of the app. Frank Sieren investigated why Tencent, the company behind WeChat and Weixin, is taking this complicated step and maintains two separate apps behind the scenes. With China’s new data protection law on the one side and requirements from foreign regulators on the other, Tencent is in a quandary and had to act.

Hope always dies last. This is apparently also the case with the Chinese-developed mRNA vaccine Arcov. At first, the mRNA vaccine raised hopes that it could cause Beijing to soon reopen the borders. But this hope was replaced by mere expectation management. Our Beijing team noted that, for quite some time, state media declared that there is no foreseeable end to zero-covid, even if a new vaccine could provide better protection for its people.

Did you also hand out red envelopes for Chinese New Year, or may even receive some yourself? It’s already tricky enough not to commit a faux pas when deciding on how much money to put into the envelope. Too much could embarrass the recipient, but too little doesn’t look good for the gift-giver’s generosity. But that’s not the only catch. Felix Lee describes what other mistakes could be made. After I was done reading his column, I felt much better about the fact that I only put a blue (euro) bill instead of a red one in the red envelope for my relatives’ children this year.

Have a pleasant day!

Your
Ning Wang

Weixin and WeChat: making two out of one

By

Frank Sieren

Over the past few months, more and more foreign users of the Chinese universal app WeChat have been asked to change their phone number or switch their account to the Chinese counterpart called Weixin 微信. This confused many customers, who previously considered Weixin and WeChat to be the same platform. Until now, they considered both to be merely two different language versions of the same app, provided for internationality reasons. But in fact, the parent company Tencent has almost silently split its service into two different apps.

WeChat now runs as an international version on data centers outside China, while Weixin is handled as the local Chinese version on servers within the People’s Republic. Only users with a Chinese phone number will still be able to use Weixin, the local Chinese version. Both apps have 1.2 billion monthly global active users combined, most of whom are located in China.

WeChat operator Tencent has not yet issued an official statement. However, it is likely that the Shenzhen-based company is bowing to China’s new data protection law. It regulates and monitors the transfer of personal user information between Chinese and foreign servers more closely than ever. The Personal Information Protection Law (PIPL), which came into force in November 2021 (China.Table reported), is one of the strictest in the world when it comes to data traffic and the storage of personal information.

Companies, like Tencent, now need user permission to gather sensitive personal data on things like biometrics, health, financial accounts, and locations. Platforms that store and even share personal data without this permission will face fines or blocking. To comply with the new data regulations, the group had already appointed a data protection supervisory committee in October. This made Tencent China’s first major tech company comply with the requirements of the PIPL law.

As Tencent announced four weeks ago, the company now wants to provide its users with a detailed list of all collected personal data. Basic user information such as:

E-mail addresses,
contacts,
devices connected to the account,
data generated within the app, and
a summary of what information has been shared with third parties.

According to Tencent, the list can be found in the settings of the latest app version, but it is still in beta testing on Android devices.

WeChat: Western and Chinese versions remain compatible

However, the split into standalone English and Chinese versions is also tied to an executive order signed by former US President Donald Trump. Weixin and its parent company Tencent were placed on a blacklist of Chinese tech apps in the wake of the US-China trade dispute. Although a California court had struck down Trump’s executive order, the threat of being blacklisted in the US remains, even under President Joe Biden.

Unlike other Chinese apps like TikTok and Douyin, which have existed in a domestic and an international version since the start, WeChat and Weixin are still compatible with each other, for example, in terms of app-to-app communication. Users of the international version can easily communicate with users of the Chinese version, just like before. But they no longer have access to certain functions, like the short video section, health codes, or live streaming.

As far as censorship is concerned, the Chinese version is apparently also subject to stricter regulations, as the South China Morning Post reports. As an investigation by Citizen Lab at the University of Toronto revealed, users who have registered on Weixin with a mainland number could still be censored, regardless of their location. And that’s even if they later switch to an international phone number. In this case, not even a VPN tunnel, which can otherwise be used to circumvent the censorship, will help.

China’s mRNA vaccine makes slow progress

On January 24, new data was published from a Phase 1 clinical trial of Arcov, China’s most advanced mRNA vaccine candidate (China.Table reported). According to the data, “high concentrations of neutralizing antibodies against live SARS-CoV-2” were found in most subjects after two vaccinations. No severe side effects were recorded. However, the scientists also stated that it is still too early to accurately assess its efficacy.

To clarify the effectiveness of the vaccine and receive regulatory approval, a large-scale study is first required, involving several tens of thousands of participants. However, such tests had recently been repeatedly delayed because, according to the companies involved, it was problematic to find enough fully unvaccinated participants. This hurdle now appears to have been cleared. The vaccine, jointly developed by the Academy of Military Science, Walvax Biotechnology, and Suzhou Abogen Biosciences, is currently being administered to 28,000 participants in Mexico and Indonesia. However, according to database clinicaltrials.gov, this Phase 3 trial is not expected to be completed before May 2023.

China seeks mRNA vaccine autonomy

So far, Beijing has relied on inactivated vaccines to protect its population, which are based on traditional technology but are far less effective against the Omicron and Delta variants. An mRNA vaccine could actually be available in China by now. For a year and a half, Shanghai-based company Fosun has held exclusive rights to distribute Biontech’s vaccine in Greater China. But deliveries have so far been limited to Hong Kong, Macau, and Taiwan because regulatory approval has so far been denied in mainland China.

Analysts believe that China is waiting for a domestic vaccine to avoid dependence on foreign countries. The most effective mRNA vaccines from Biontech and Moderna are therefore not available to the Chinese. Whether Arcov is as equally effective as Western vaccines is still unclear. The latest Phase 1 trial involved 120 volunteers at a hospital in Hangzhou. Participants were divided into groups and received two injections of varying dosages at a 28-day interval. The study found that 15mcg was the most effective dose, producing about twice as many neutralizing antibodies as normally found in recovered COVID-19 patients.

Trials with the Pfizer/Biontech vaccine had previously shown that it could produce three times the amount of neutralizing antibodies. However, Chinese experts pointed out that a different analysis method was used, which is why the Arcov results cannot be compared. The results of the initial Arcov studies were “looks pretty standard” with “no obvious red flags”, the Hong Kong newspaper South China Morning Post quoted John Moore, professor of microbiology and immunology at Weill Cornell Medical College in New York, as saying. However, the expert did not comment yet on whether the Chinese vaccine is any good.

Chinese media practice expectation management

While the Chinese hope that their vaccine will prove as effective as Moderna or Biontech. However, German manufacturer Curevac had to learn the hard way that failure is also possible when its mRNA vaccine failed in the late stages of trials in June of last year. Beijing is already practicing expectation management. For example, Chinese state media have been spreading reports for weeks that an end to the strict zero-covid strategy is not to be expected, even after the Winter Olympics. That is unlikely to change, even if the population is protected with a new vaccine. “We previously thought COVID-19 could be basically contained through vaccines, but now it seems that there’s no simple method to control it except with comprehensive measures,” Wu Zunyou, senior epidemiologist at China’s Center for Disease Control and Prevention, said in an interview with the state-run Global Times newspaper on Sunday.

According to Wu, it is also not a good idea to rely on herd immunity. Immunity from an influenza infection would last up to a year, whereas immunity from a Covid infection usually lasts only about three to six months. “Although influenza also has variation, its variation is regular, and its variation cycle is relatively long, usually once a year,” Wu said. Covid, on the other hand, is still changing constantly, which is why it is difficult to predict how the pandemic will progress. The Coronavirus also remains significantly more dangerous than influenza, even in the actually milder Omicron variant, because, unlike influenza, the upper and not the lower respiratory tract is targeted. Pneumonia is therefore much more likely. Gregor Koppenburg/Jörn Petring

China and NASA angry with Musk

China has accused the US of not sharing enough information about SpaceX satellites. The accusation was that the Starlink satellites of Elon Musk’s company came dangerously close to the Chinese space station, Bloomberg reports. It claimed that US authorities shared insufficient information about a possible collision course. “Chinese astronauts were facing real and urgent safety threats,” Chinese Foreign Ministry spokesman Zhao Lijian said.

China has also complained about the alleged incident at the United Nations. The accusations were made after up to 40 Starlink satellites were recently hit by a solar storm shortly after launch. As a result, they will not be able to reach their intended altitude and will tumble back to Earth. However, they will burn up in the atmosphere in the process, according to SpaceX.

NASA also expressed concern about the 30,000 planned Starlink satellites, as reported by the South China Morning Post. The satellites could cause a “significant increase” of potential collisions in Earth’s lower orbit. Scientific activities such as the use of telescopes could also be affected. According to NASA, the Starlink satellites would more than quintuple the number of objects to be tracked in the lower orbit. SpaceX has repeatedly asserted that collisions are unlikely because the satellites are able to perform evasive maneuvers. But NASA is challenging this claim.

The Starlink satellites are supposed to provide Internet access to remote regions of the world. However, Beijing fears that Starlink will also expand the U.S. military’s communications capacity, putting China’s national security at risk, according to the South China Morning Post. China is planning a similar satellite network itself. Within the next three months, the start-up Galaxyspace plans to launch six satellites into space. A thousand more are to follow in the near future, rivaling Musk’s Starlink program. nib

Lithuania’s government calls for united stand against China

Chinese sanctions have prompted Lithuania’s Foreign Minister Gabrielius Landsbergis to call on all democratic nations to stand united against “global order disruptors” such as China and Russia. One day before the meeting of the Quad countries Australia, Japan, India and the United States, Landsbergis spoke in the Australian capital Canberra, saying that human rights violations in the People’s Republic of China must be repeatedly addressed. “These things do cost, but principles cost,” the Foreign Minister said at the event.

Shortly afterward, China announced that it would impose import bans on various Lithuanian industries. After Chinese customs had already refused to clear several Lithuanian goods for weeks, the import of beef, alcohol, and dairy products from Lithuania is now officially banned. It is unclear whether the announcement is related to the current statements. Lithuania had previously exported only small quantities of these goods to the People’s Republic. The sanctions are retribution for opening a “Taiwan office” in Vilnius. (China.Table reported)

Speaking at the Press Club, Landsbergis criticized “people who would want that the problems would not be talked about.” For instance, to keep products produced by forced labor in Xinjiang out of supply chains, “do not expect that when we solve them they will be for free. There will be a price for everybody to pay,” the foreign minister said. Landsbergis thus also criticized the EU Commission, which plans to present a supply chain law by the end of the month. It is already clear: The much-discussed import ban on products by forced labor will not be included (China.Table reported).

Meanwhile, the Lithuanian Foreign Minister encouraged other countries to expand their diplomatic relations with Taiwan. The democratic island nation had recently opened a representative office in the Lithuanian capital of Vilnius, called the “Taiwan Office.” He would not be surprised if other states followed suit, Landsbergis said. grz

Financial authorities support unstable markets

China’s financial authorities are trying to stop the markets from slipping further. On the one hand, state-controlled funds are intervening in the stock market to support prices. On the other hand, the central bank is easing restrictions on mortgage lending. These measures are intended to inject fresh capital into the ailing real estate sector and boost housing construction. Valuations for investment properties had fallen considerably in the past year. Economic planners now want to prevent a downward spiral in the financial sector.

Since February 2021, shares on the Shanghai stock exchange have dropped by 20 percent. The index of the 50 most important stocks has fallen from over 4,000 points to below 3,200 points in this period. The downward trend has picked up speed in recent days. Then on Tuesday afternoon, state-owned funds such as China Securities Finance and Central Huijin intervened by buying financial stocks from the market, Bloomberg reported, citing stock market circles. The influx did in fact give a boost to share prices. Even if the stock market is not central to corporate financing, a weak stock market can certainly limit growth.

The release of restrictions on real estate loans follows a similar logic. The central bank has ensured that the availability of loans for the construction of affordable homes and rental apartments will improve in the future. In doing so, it has abolished a limit that it first imposed on banks a year ago. The demand for real estate loans in China is generally huge. The limiting factor is regulations designed to prevent the market from overheating. However, since problems erupted at real estate market leader Evergrande (China.Table reported), prices have already declined significantly.

Real estate is a key financial investment in China. Both private households and corporations deposit their funds in real estate. A decline in valuations hurts their balance sheets. After all, these properties should directly contrast borrowed money. If the value of a company’s property and other real estate drops, it can borrow less money or even has to reduce debt in a short period. Even though a real estate bubble is not in the planners’ interest, they don’t want an uncontrolled crash either. fin

Beijing will further reform China’s education system

China’s Ministry of Education has presented new plans to further reduce the pressure on students. The government wants to monitor compliance with rules on extracurricular tutoring more closely and thus reduce the burden of homework and extracurricular tutoring, as business portal Caixin reports. According to a policy paper, measures that have been established for elementary and middle school students over the past year will also apply to high school seniors in the future. Since last year’s reforms, 80 percent of tutoring companies have vanished from the market, ministry data show.

In addition, the Ministry of Education wants to evaluate the ideological and political orientation of teachers. No further details were provided. However, it can be assumed that political influence on teachers and curricula will continue to increase.

The ministry also announced the construction of new preschools in urban and rural areas. Preschool education is to be adequately funded. Education spending should total four percent of China’s GDP, the ministry said. nib

Olympia-Ticker – silver, a defeat, and accusations

Thursday had its good and bad sides for China. They won another medal. But accusations from South Korea of unfair behavior and strange refereeing decisions overshadowed the opening weekend’s short track mixed. China’s ice hockey team also had to compete in Group A of the preliminary round for the first time.

The Chinese team has won the next medal in ski freestyle. This time, however, it was not superstar Eileen Gu who won the medal, but the mixed team in aerials. The athletes perform flips, spins and straddles at insane heights from a jumping hill with an almost vertical jumping surface. Each jump has a fixed level of difficulty. The teams consist of two women and one man, or vice versa. In the end, China even gave away gold: After the first round, Xu Mengtao, Jia Zongyang and Qi Guangpu were still clearly in the lead. But then, Jia Zongyang flipped over during the landing. China fell behind the USA and finished in second place ahead of Canada.
China’s hastily assembled ice hockey team (China.Table reported) had to face the US, of all teams, at the start of the preliminary round in Group A. The Americans are short of several star players due to the pandemic. Nevertheless, China suffered a heartbreaking 8-0 defeat at the hands of the USA. Germany also competes in Group A and lost its opening match against Canada in an equally clear 1:5.
After China’s short track star Ren Ziwei was disqualified on Wednesday, the host nation is facing more trouble in their signature event. South Korea is fuming over last weekend’s mixed competition. China had won gold, South Korea silver. South Korea’s short tracker Kwak Yoon Gy from the mixed team, among others, criticized that there had been foul play. He called China’s victory “illegitimate” in the Korean press. What had happened? China had actually only finished third in the semifinals, behind Hungary and the USA. It was only when the USA was disqualified at the end of the semifinals that China slipped into second place and into the final. The Russians were also disqualified because they obstructed two Chinese skaters during the relay exchange, who then missed their tap. According to the Korean interpretation, the Chinese should have been disqualified as well. However, two other accusations probably weigh more heavily. A Chinese skater pushed an opponent with both hands – and was not disqualified, although this is a clear rule violation. A video also shows a Chinese skater pushing the puck between the legs of an opponent to limit the lane. The latter fell as a result. The Chinese team stressed afterwards that it was an accident. On the video, however, it looks more like a deliberate action. In any case, the skater was not disqualified. Either way, China’s first gold medal of the Winter Games has been tarnished by the videos. ck

The red envelope and the money problem

By Felix Lee