Table.Briefing: China

Qin Gang in Africa + Sandschneider interview

  • Egypt to become China’s biggest partner in Africa
  • Eberhard Sandschneider criticizes Taiwan trips
  • Beijing publishes Covid death toll
  • Record high in trade with Russia
  • China becomes second-largest car exporter
  • Japan and USA reaffirm alliance
  • Obituary of former VW CEO Carl Hahn
Dear reader,

This week, China’s new Foreign Minister Qin Gang’s first official trip will take him to various African countries. The former ambassador of the People’s Republic to the United States is sending a clear signal: The continent remains a top priority for the People’s Republic on its way to becoming a global power. Egypt, in particular, is moving into focus, writes Michael Radunski in his foreign policy analysis. From here, Beijing can expand its influence in the Middle East.

While China builds a bridgehead between the Arab and African worlds and continues to fund infrastructure projects worth billions of dollars, the West is still hesitant. Western counterparts to Beijing’s Belt and Road Initiative, such as Global Gateway and Build Back Better World, are mainly limited to promises. The African Union is well aware of this imbalance.

Meanwhile, the Chinese leadership is taking careful note of the increasing number of visits by Western politicians to Taiwan. While high-ranking delegations such as the one by the German liberal FDP want their trips to be understood as support for parliamentary democracy in Asia, Eberhard Sandschneider sees them, above all, as the satisfaction of a desire for domestic political recognition. As the political scientist and Taiwan expert explains in an interview with Felix Lee, these visits are not only useless to Taiwan but could even drive the island into a spiral of military escalation with China – and that would have “catastrophic consequences for the global economy.”

The former FU Professor also considers the dependency debate “hysterical.” He believes China’s domestic market can not be replaced. In any case, the best solution would be to maintain the status quo.

Your
Fabian Peltsch
Image of Fabian  Peltsch

Feature

China provides money, the West provides promises

Qin Gang on Saturday with Aurelien Agbenonci, his counterpart from Benin.

The first visit of the new year takes the Chinese Foreign Minister to Africa. What sounds astonishing to the West has been a tradition in China for 33 years. However, Qin Gang has only been in office for a few weeks – so it would not have been surprising if the first travel destination of China’s new chief diplomat had been elsewhere: For example, to a friend in Russia, to courted partners in Germany or France, or even to the competition in America. But Qin Gang chose Ethiopia, Gabon, Angola, Benin, and Egypt, including a visit to the headquarters of the African Union (AU).

This way, Qin is sending a clear signal: While Europeans and America are even struggling to put Africa on the political agenda, China’s foreign ministers reliably travel to Africa at the beginning of the year. Even if the minister has only been in office for a few weeks.

Qin’s balanced travel plans

In doing so, Beijing is acting very skillfully. Qin’s itinerary reveals a deft balance between East, Central, West, North, and South Africa; between the Indian and Atlantic Oceans, and between economic and geopolitical interests.

The main points of the current trip:

  • Ethiopia: Two main objectives can be discerned from the visit. (1) Beijing wants to counter the accusation of the Chinese debt trap and (2) at the same time send a political signal to the entire continent with the visit to the headquarters of the African Union (AU). Thus, Qin announced partial debt relief, although without giving details; Ethiopia has borrowed nearly $14 billion from China since 2000 alone – 13 percent of its total gross domestic product.
  • Gabon/Benin: This choice shows that China wants to expand its influence in Francophone Africa. Moreover, Qin’s visit to Gabon and Benin highlights a clear difference from the US approach. Washington focuses primarily on large countries. Beijing’s approach, on the other hand: In the UN General Assembly, Benin’s voice counts as much as South Africa’s or Spain’s.
  • Angola: There have recently been disagreements over oil purchases. However, Angola continues to be important as a transit country for strategic resources, which are delivered, for example, from the Democratic Republic of Congo via the Benguela railroad to the port of Lobito.
  • Egypt: It is a strategically important stop. Chinese entrepreneurs are building Egypt’s new capital and investing heavily in the Suez Canal economic zone. In addition, Egypt is one of the largest recipients of Chinese-made vaccines and hosts one of only two vaccine production facilities in Africa.

Egypt was probably the most important stop on Qin’s trip – not just for the economic reasons mentioned above. “The stop in Cairo underscores the growing importance of the Arab Straits and the Middle East in China’s foreign policy,” Eric Olander, Africa expert and co-founder of the initiative China Global South Project, told China.Table. Egypt serves China as a sort of bridgehead between the Arab and African worlds.

“Egypt has been an important venue for China to legitimize its policies in Xinjiang, where it gets the support from the Sisi government for its harsh crackdown on the minority Muslim population in Xinjiang,” Olander says.

The West shows new interest

That Africa should not continue to be neglected in this way has now also been recognized in the West. At the US-Africa summit in December, US President Joe Biden solemnly announced that the United States was “all-in” for Africa’s future. And Germany’s Foreign Minister Annalena Baerbock also traveled to Ethiopia these days and tried to promote new investments there.

It almost seems as if a new competition for the African continent has begun. However, China seems to be ahead of the game: With its Belt and Road Initiative, Beijing has been financing infrastructure projects worth billions of euros on the continent for years – according to the German foreign trade promotion agency GTAI, 140 BRI projects were approved across Africa in the first months of 2022 alone. But not all that glitters is gold: Critical issues include the debt trap, quality, occupational safety and environmental protection.

Another important point is the perception in Africa. Gyude Moore, Liberia’s former Labor Minister, once summed it up this way: China was coming to Africa with money and infrastructure development, while Europe and the US were mainly bringing announcements. The latest announcements are called Global Gateway and Build Back Better World.

But China has been there for a long time

And even that is progress, Marina Rudyak notes smugly. After all, “Before China arrived with its Silk Road initiative, Europe had no idea what to do with its neighbor Africa at all,” said the sinologist from Heidelberg University in an interview with China.Table. “In Africa, the new announcements tend to give the impression that the West is primarily concerned with its China problem, rather than Africa’s development concerns.”

Accordingly, Qin Gang also expressed his views after his meeting with AU Chairman Moussa Faki Mahamat: “As good brothers sharing weal and woe, China and Africa have forged ahead side by side on the path of common development.”

China sees opportunity, Europe mainly hunger and poverty

Eric Olander calls it: China’s consistency in integrating the continent – and adds: Nobody knows when another US-Africa summit will take place. The date for the next forum for China-Africa cooperation, on the other hand, has already been set, namely 2024. “Because these events happen like clockwork every three years. That consistency and predictability in the relationship has produced enormous benefits for China in Africa,” the Africa expert tells China.Table. “It’s just mind-boggling that the US and Europe haven’t learned from that experience.”

Marina Rudyak also has a clear position: “China speaks of a community with a shared future. If Europe wants to be an alternative to this, it must see Africa’s concerns and problems as common concerns.” But the reality is different: For China, Africa is a continent of opportunity; for Europe, on the other hand, it is a continent of hunger and poverty.

  • Africa
  • Egypt
  • Ethiopia
  • FOCAC
  • Geopolitics
  • global gateway
  • GTAI

‘Germany’s China policy is pure hysteria’

Eberhard Sandschneider ist Leiter des Arbeitsschwerpunktes Politik China und Ostasiens an der Freien Universität Berlin und Vertrauensdozent der Friedrich-Ebert-Stiftung. Hier schreibt er über China-Bashing und die Implikationen.
Eberhard Sandschneider is a leading Taiwan and China political scientist. Until 2016, he headed the Research Institute of the German Council on Foreign Relations; today he is a partner at Berlin Global Advisors.

Mr. Sandschneider, never before have so many German politicians visited Taiwan as in recent months. Most recently, a high-ranking delegation from the FDP. Is this a good sign for Taiwan?

No, on the contrary. I think this is an irresponsible policy toward Taiwan.

You need to explain that.

These visits are of no use to Taiwan, except that they increase the risk of military escalation, as can be seen from the reactions of the People’s Republic. That is the dishonesty of this policy. It is good for domestic political applause. That applies to Marie-Agnes Strack-Zimmermann and the FDP just as it applied to Nancy Pelosi. The people of Taiwan bear the risk. There is the threat of a massive conflict with catastrophic consequences for the global economy. I don’t see German politics being aware of this. China and Taiwan are different than Russia and Ukraine. Right now, the status quo is the best option for both sides of the Taiwan Strait.

How do you explain this dynamic? Just a year ago, hardly anyone in Berlin was interested in Taiwan.

In my opinion, this is a purely domestic policy issue. The Free Democrats do not want to leave the field of China criticism to the Greens alone. Annalena Baerbock and Robert Habeck have set a specific course with their two leaked China strategies and a warning against too much dependence on China. The FDP is now following suit. I think the debate about dependencies is hysterical.

What do you suggest? Just carry on as before?

No, of course not. I think it’s right to think about alternatives. Every halfway sensible company is already doing that. But that’s easier said than done because China is not so easy to replace. Vietnam is often mentioned now, but that is also a communist country – and not a real solution in terms of values. India? A very challenging partner, too – and at least as much on Russia’s side as China is assumed to be. From the perspective of many entrepreneurs, there is also the fact that China is in a much better position in terms of infrastructure and suppliers. Many of the smaller countries in Southeast Asia don’t have that. I have dealt with three companies in the last three months that have sent their people to Vietnam. They found it quite nice there, but the Chinese partner is not so easy to replace, given the size of the domestic market.

Taiwan at least welcomes the visits of German politicians.

The Taiwanese are eager for any form of international recognition. Have you ever been to the foreign ministry in Taipei? The last time I was in the entrance area a few years ago, there were flags from 19 countries. Now, Taiwan only has official diplomatic relations with 14 countries. Among those, the Vatican is still the most important. Anything that comes in terms of international recognition is absorbed by Taiwan. Don’t get me wrong. It is alright for a member of the Bundestag to go to a country like Taiwan, which now has a democratically functioning parliament. The question is how to classify such a trip.

And how?

The bottom line is that China has nothing against intensive economic cooperation with Taiwan. Nothing is to be said against visits to Taiwan, even by ministers, as long as national symbolism is left aside. I remember Guenter Rexrodt, who visited Taiwan as Economics Minister in 1997. However, the participation of Marie-Agnes Strack-Zimmermann, the chairwoman of the Defense Committee, sends an entirely different political signal.

But Beijing has also changed a lot since then. In 1997, China had less economic influence and appeared more modest to the outside world. Should the German government stand by and do nothing, as it did in 2020 with the suppression of the democracy movement in Hong Kong?

Quite honestly, that’s exactly what will happen. Look at the whole debate about supplying weapons to Ukraine and ask yourself: Apart from helmets, would we have anything we could send Taiwan to defend itself from China? The only ones who can effectively support Taiwan are the United States of America. The US needs to push the deterrent so high that Beijing will refrain from attacking. That is exactly what they are doing. But realistically, the United States is also the only one that can do that with credibility. Europe has neither unity on this issue nor the capacity. Do we want to send the Bayern frigate into the East China Sea again to save Taiwan? That is ridiculous. 

Domestically, however, the US is anything but stable. What if, in two years, someone like Donald Trump, who doesn’t understand the conflict over Taiwan, becomes president again?

I completely agree with you. For us Europeans, a second Trump would be unfortunate, but for Taiwan, it would be existential.

Eberhard Sandschneider was a Professor of Chinese politics and international relations at the Free University of Berlin from 1998 to 2020. From 2003 to 2016, he was also Otto-Wolff Director of the research institute of the German Council on Foreign Relations. He is now a partner at the consulting firm “Berlin Global Advisors.”

  • FDP
  • Federal Government
  • Geopolitics
  • Germany
  • Taiwan
  • USA

News

China reports nearly 60,000 Covid deaths

Over the weekend, China’s National Health Commission reported 59,938 deaths in connection with Covid since early December. It is the first time authorities have announced a high death toll. Previously, Beijing had only declared cases of respiratory arrest triggered by the virus as Covid victims. This kept the official figures unrealistically low (China.Table reported).

The new data refers to deaths “associated” with Covid “within medical facilities” between Dec. 8, 2022, and Jan. 12, 2023, according to the report, which found the average age of those who died was 80.3 years. Authorities said ninety percent of the fatalities were over 65 years old, with most suffering from pre-existing conditions. People who did not die in hospitals, such as at home, are not included in the official figures. That’s another reason experts believe the number of unreported cases could be much higher. Some estimates even assume that up to 1.5 million people could die in connection with Covid by spring.

Meanwhile, Jiao Yahui, a senior representative of the National Health Commission, said “the peak of national emergency has passed.” The number of people visiting a clinic peaked at 2.9 million on Dec. 23. By Thursday the number had dropped 83 percent to about half a million, she said.

Following the announcement of the Covid figures, the World Health Organization has called on Beijing to “share detailed information with us and the public.” Only like this, a better understanding of the epidemiological situation is possible, the WHO said in a statement. fpe

  • Coronavirus
  • Health
  • WHO

Declining exports in December

China’s Customs reported Friday that the People’s Republic’s exports fell 9.9 percent in December compared to the same month last year. Imports also fell by 7.5 percent. Overall, foreign trade thus registered a nine percent drop in December. China’s exports to Germany fell by 28 percent in December, while imports fell by eleven percent.

It was the third consecutive monthly decline. China’s strict Zero-Covid policy and weakening international demand were to blame. For 2022 as a whole, however, China’s exports recorded a year-on-year increase of seven percent, mainly due to the better situation in the first half of the year. Imports also increased slightly by one percent.

China’s foreign trade surplus reached a new annual record of $878 billion. This was mainly due to strong export growth in the first quarter of 2022 when a weak Chinese currency and rising commodity prices drove up the export value.

A record high of about $190 billion was reached in China’s goods trade with Russia. That represents an increase of more than 30 percent over 2021 and three percent of China’s total trade, according to Lyu Daliang, spokesman for the customs authority. fpe

  • Exports
  • Russland
  • Trade

China overtakes Germany in car exports

China’s car exports increased by 54.4 percent to 3.11 million vehicles in 2022, according to data from the China Association of Automobile Manufacturers (CAAM). This means the People’s Republic has overtaken Germany to become the world’s second-largest car exporter behind Japan. According to the report, exports of commercial vehicles increased by 44.9 percent to 582,000 units compared to 2021. Exports of EVs and New Energy Vehicles (NEVs) increased 1.2-fold year-on-year to 679,000 units.

With numbers like that, China could soon rise to number one. According to MarkLines, a data provider for the automotive industry, Japanese automakers shipped 3.2 million vehicles abroad in the first 11 months of last year, nearly matching last year’s figures.

Among other factors, CAAM attributed the growth to the increasing competitiveness of Chinese auto companies and supply bottlenecks in other countries, according to reports from Xinhua news agency. fpe

  • Autoindustrie
  • CAAM

Kishida and Biden confirm chip controls

During his meeting with US President Joe Biden, Japan’s Prime Minister Fumio Kishida pledged his cooperation to control the export of chip technology to China. Restricting exports of sensitive technology is an important part of Japanese policy, Kishida told Biden, according to Japanese government officials. The US imposed strict restrictions on China’s semiconductor industry in October.

The visit was a lot about China in general. Both leaders also confirmed their security cooperation, which their line ministers had previously agreed on in detail (China.Table reported). A joint statement by Biden and Kishida addresses Taiwan’s security, a free Indo-Pacific, and free trade. fin

  • Chips
  • Geopolitics
  • Japan
  • Technology
  • USA

Obituary

Carl Hahn – He dared the leap to China

As head of the VW Group in the early 1980s, Carl Hahn pushed the company’s expansion into China.

Although he was not there from the beginning – the first contact between Wolfsburg and the People’s Republic came about back in 1978. When Carl H. Hahn took the helm of the Volkswagen Group in 1982, he made business in China a top priority and played a key role in driving the company’s entry into the People’s Republic market.

That was by no means a matter of course. China was poor and backward at the time, and hardly anyone in Germany was interested in the giant empire. With an average wage of less than €50 by today, nobody would be able to afford a passenger car in the foreseeable future. “Fortunately for us, hardly anyone was interested in going there at the time,” Hahn said four years ago in an interview with the VW employee newspaper “Inside.” Developments proved him right. Today, China is the largest car market in the world by far – and also the most important single market for VW. On Saturday, the former group CEO passed away at the age of 96.

‘They all thought I was crazy’

Born in Chemnitz in 1926, Carl Hahn began his career at VW in 1954 as Head of Export Promotion. Between 1959 and 1964, he headed VW’s US business, rising to become Head of Sales and a member of the board of management upon his return. In 1973, he moved to what was then Continental-Gummi-Werke AG in Hanover and took over as head of the company. In 1982, he returned to Wolfsburg as VW chairman of the board of management, where he laid the foundation for the company’s expansion into China.

The expansion into China was controversial at the time. “They all thought I was crazy,” Hahn later recalled. In the presence of German Chancellor Helmut Kohl, a former head of a German corporation said that Hahn would sink $100 million with the communists. But he was not deterred. Under his leadership, VW brought the Santana to China, a kind of upscale Passat with a rear step that had little success in Europe and Germany, but all the more so in China starting in 1983. “With only 5,000 vehicles sold, we had a market share of 27 percent practically overnight in the first year,” Hahn recalled. Of course, it did not stop there. Over the next 20 years, the Santana became the epitome of economic advancement in China, a true people’s car.

In 1992, Hahn handed over the reins of the Group to Ferdinand Piëch. Hahn was a member of the VW Supervisory Board until 1997. He retained his fascination with China until the end. He was a regular visitor until the outbreak of the pandemic. When in early 2019 then-Group CEO Herbert Diess declared that Volkswagen’s future would be decided in the Chinese market, he drew applause from Hahn. VW has an excellent position in the country thanks to its early entry, Hahn said. But that position must be defended. “When it comes to electric mobility, the Chinese are driving ahead of the world,” he said. In retrospect, it is difficult to understand why the advantages of electromobility were misjudged for so long. The Chinese were more far-sighted. Felix Lee

  • Autoindustrie
  • Volkswagen

Executive Moves

Florian Haider has been responsible for Customer Relationship Management China at Rolls Royce in Munich since January. In his new role, the political science graduate is responsible for implementing projects aimed at advancing the premium carmaker’s overall business strategy in the region.

Stephan Muser has been Business Development Manager at SIMATIC PCS neo in Shanghai since January. The Siemens subsidiary specializes in web-based process control systems. Muser has been working for Siemens in China since February 2022. Most recently, he was Project Manager PA Strategy there.

Is something changing in your organization? Why not let us know at heads@table.media!

So To Speak

Year of the rabbit

China hops into the rabbit year. That means it’s time to take a look inside the rabbit hutch of Chinese culture. Time to take a look inside the rabbit hutch of Chinese culture. While the Easter bunny is the best-known breed in the West, the “moon rabbit” (月兔 yuètù) or “jade rabbit” (玉兔 yùtù) munches its way through classical mythology in the Middle Kingdom. Every child in China knows him as the companion of the moon goddess (or moon fairy) Chang’e (嫦娥 Cháng’é), for whom he stamps the elixir of life with his device on the earth’s satellite. The earliest mention of this “rabbit on the moon” dates back to the time of the Warring States (475 – 221 BC). In linguistic use, the story has manifested itself over the centuries in such a way that 月兔 yuètù and 玉兔 yùtù are still common synonyms for the moon in contemporary Chinese

The Jade Rabbit was finally catapulted into the modern era in 2013 by China’s National Space Administration (CNSA). As part of the Chang’e 3 (“Moon Fairy 3”) mission of the Chinese lunar program, the rover “Yutu” (玉兔号月球车 Yùtùhào yuèqiúchē) was set to our cosmic neighbor.              

Another Chinese bunny celebrity is right at our fingertips – the “White Rabbit” (大白兔 dàbáitù), which is actually “Big White Rabbit” in Chinese and can be found on virtually every Chinese supermarket shelf. For once, however, it is not the bunny that munches here, but the customer. We are talking about a chewy sweet from the Shanghai food manufacturer Guanshengyuan (冠生园Guānshēngyuán) that is popular throughout the country. The cream candy (奶糖 nǎitáng) with the snow-white rabbit on the crackling wrapper has been bringing sweetness to Chinese children since 1959. Now, in addition to the original (原味 yuánwèi), eleven other hip flavors can be found on candy shelves, including exotic varieties like sweet corn (玉米 yùmǐ), adzuki bean (红豆 hóngdòu), durian stink fruit (榴莲 liúlián) and wasabi (芥末 jièmò) – the latter flavors are certainly not for the faint of heart.

To prevent the old brand from disappearing down the rabbit hole of obscurity at some point, the traditional Shanghai company relies on a modern marketing strategy with cross-company cooperation and cross-branding. In China, for example, ice cream, milk tea, potato chips, and even hand cream, body lotion, and perfume are now available in “White Rabbit” flavor.

And – last but not least – you might also see a long-eared rabbit hopping through your chat window in China from time to time – Tuzki, in Chinese兔斯基 Tùsījī, the top dog, excuse me, top rabbit among China’s emojis. He is based on the drawings of illustrator 王卯卯 Wáng Mǎomǎo, better known in the West by her English name, MOMO. She created the rebellious animals in 2006 when people were still sending digital stickers in China via the messaging service QQ. The whimsical long-eared character captured the spirit of an entire generation and was so successful that Warner Media secured the trademark rights. In the meantime, the furry bachelor – who, according to his inventor, is allergic to carrots but loves coffee, dairy products, and sweets – has of course also arrived in the WeChat age. Here you can download numerous animated sticker sets of the minimalist cartoon character for all moods and situations in life.

Verena Menzel runs the online language school New Chinese in Beijing.

  • Chinese New Year
  • Culture

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    • Egypt to become China’s biggest partner in Africa
    • Eberhard Sandschneider criticizes Taiwan trips
    • Beijing publishes Covid death toll
    • Record high in trade with Russia
    • China becomes second-largest car exporter
    • Japan and USA reaffirm alliance
    • Obituary of former VW CEO Carl Hahn
    Dear reader,

    This week, China’s new Foreign Minister Qin Gang’s first official trip will take him to various African countries. The former ambassador of the People’s Republic to the United States is sending a clear signal: The continent remains a top priority for the People’s Republic on its way to becoming a global power. Egypt, in particular, is moving into focus, writes Michael Radunski in his foreign policy analysis. From here, Beijing can expand its influence in the Middle East.

    While China builds a bridgehead between the Arab and African worlds and continues to fund infrastructure projects worth billions of dollars, the West is still hesitant. Western counterparts to Beijing’s Belt and Road Initiative, such as Global Gateway and Build Back Better World, are mainly limited to promises. The African Union is well aware of this imbalance.

    Meanwhile, the Chinese leadership is taking careful note of the increasing number of visits by Western politicians to Taiwan. While high-ranking delegations such as the one by the German liberal FDP want their trips to be understood as support for parliamentary democracy in Asia, Eberhard Sandschneider sees them, above all, as the satisfaction of a desire for domestic political recognition. As the political scientist and Taiwan expert explains in an interview with Felix Lee, these visits are not only useless to Taiwan but could even drive the island into a spiral of military escalation with China – and that would have “catastrophic consequences for the global economy.”

    The former FU Professor also considers the dependency debate “hysterical.” He believes China’s domestic market can not be replaced. In any case, the best solution would be to maintain the status quo.

    Your
    Fabian Peltsch
    Image of Fabian  Peltsch

    Feature

    China provides money, the West provides promises

    Qin Gang on Saturday with Aurelien Agbenonci, his counterpart from Benin.

    The first visit of the new year takes the Chinese Foreign Minister to Africa. What sounds astonishing to the West has been a tradition in China for 33 years. However, Qin Gang has only been in office for a few weeks – so it would not have been surprising if the first travel destination of China’s new chief diplomat had been elsewhere: For example, to a friend in Russia, to courted partners in Germany or France, or even to the competition in America. But Qin Gang chose Ethiopia, Gabon, Angola, Benin, and Egypt, including a visit to the headquarters of the African Union (AU).

    This way, Qin is sending a clear signal: While Europeans and America are even struggling to put Africa on the political agenda, China’s foreign ministers reliably travel to Africa at the beginning of the year. Even if the minister has only been in office for a few weeks.

    Qin’s balanced travel plans

    In doing so, Beijing is acting very skillfully. Qin’s itinerary reveals a deft balance between East, Central, West, North, and South Africa; between the Indian and Atlantic Oceans, and between economic and geopolitical interests.

    The main points of the current trip:

    • Ethiopia: Two main objectives can be discerned from the visit. (1) Beijing wants to counter the accusation of the Chinese debt trap and (2) at the same time send a political signal to the entire continent with the visit to the headquarters of the African Union (AU). Thus, Qin announced partial debt relief, although without giving details; Ethiopia has borrowed nearly $14 billion from China since 2000 alone – 13 percent of its total gross domestic product.
    • Gabon/Benin: This choice shows that China wants to expand its influence in Francophone Africa. Moreover, Qin’s visit to Gabon and Benin highlights a clear difference from the US approach. Washington focuses primarily on large countries. Beijing’s approach, on the other hand: In the UN General Assembly, Benin’s voice counts as much as South Africa’s or Spain’s.
    • Angola: There have recently been disagreements over oil purchases. However, Angola continues to be important as a transit country for strategic resources, which are delivered, for example, from the Democratic Republic of Congo via the Benguela railroad to the port of Lobito.
    • Egypt: It is a strategically important stop. Chinese entrepreneurs are building Egypt’s new capital and investing heavily in the Suez Canal economic zone. In addition, Egypt is one of the largest recipients of Chinese-made vaccines and hosts one of only two vaccine production facilities in Africa.

    Egypt was probably the most important stop on Qin’s trip – not just for the economic reasons mentioned above. “The stop in Cairo underscores the growing importance of the Arab Straits and the Middle East in China’s foreign policy,” Eric Olander, Africa expert and co-founder of the initiative China Global South Project, told China.Table. Egypt serves China as a sort of bridgehead between the Arab and African worlds.

    “Egypt has been an important venue for China to legitimize its policies in Xinjiang, where it gets the support from the Sisi government for its harsh crackdown on the minority Muslim population in Xinjiang,” Olander says.

    The West shows new interest

    That Africa should not continue to be neglected in this way has now also been recognized in the West. At the US-Africa summit in December, US President Joe Biden solemnly announced that the United States was “all-in” for Africa’s future. And Germany’s Foreign Minister Annalena Baerbock also traveled to Ethiopia these days and tried to promote new investments there.

    It almost seems as if a new competition for the African continent has begun. However, China seems to be ahead of the game: With its Belt and Road Initiative, Beijing has been financing infrastructure projects worth billions of euros on the continent for years – according to the German foreign trade promotion agency GTAI, 140 BRI projects were approved across Africa in the first months of 2022 alone. But not all that glitters is gold: Critical issues include the debt trap, quality, occupational safety and environmental protection.

    Another important point is the perception in Africa. Gyude Moore, Liberia’s former Labor Minister, once summed it up this way: China was coming to Africa with money and infrastructure development, while Europe and the US were mainly bringing announcements. The latest announcements are called Global Gateway and Build Back Better World.

    But China has been there for a long time

    And even that is progress, Marina Rudyak notes smugly. After all, “Before China arrived with its Silk Road initiative, Europe had no idea what to do with its neighbor Africa at all,” said the sinologist from Heidelberg University in an interview with China.Table. “In Africa, the new announcements tend to give the impression that the West is primarily concerned with its China problem, rather than Africa’s development concerns.”

    Accordingly, Qin Gang also expressed his views after his meeting with AU Chairman Moussa Faki Mahamat: “As good brothers sharing weal and woe, China and Africa have forged ahead side by side on the path of common development.”

    China sees opportunity, Europe mainly hunger and poverty

    Eric Olander calls it: China’s consistency in integrating the continent – and adds: Nobody knows when another US-Africa summit will take place. The date for the next forum for China-Africa cooperation, on the other hand, has already been set, namely 2024. “Because these events happen like clockwork every three years. That consistency and predictability in the relationship has produced enormous benefits for China in Africa,” the Africa expert tells China.Table. “It’s just mind-boggling that the US and Europe haven’t learned from that experience.”

    Marina Rudyak also has a clear position: “China speaks of a community with a shared future. If Europe wants to be an alternative to this, it must see Africa’s concerns and problems as common concerns.” But the reality is different: For China, Africa is a continent of opportunity; for Europe, on the other hand, it is a continent of hunger and poverty.

    • Africa
    • Egypt
    • Ethiopia
    • FOCAC
    • Geopolitics
    • global gateway
    • GTAI

    ‘Germany’s China policy is pure hysteria’

    Eberhard Sandschneider ist Leiter des Arbeitsschwerpunktes Politik China und Ostasiens an der Freien Universität Berlin und Vertrauensdozent der Friedrich-Ebert-Stiftung. Hier schreibt er über China-Bashing und die Implikationen.
    Eberhard Sandschneider is a leading Taiwan and China political scientist. Until 2016, he headed the Research Institute of the German Council on Foreign Relations; today he is a partner at Berlin Global Advisors.

    Mr. Sandschneider, never before have so many German politicians visited Taiwan as in recent months. Most recently, a high-ranking delegation from the FDP. Is this a good sign for Taiwan?

    No, on the contrary. I think this is an irresponsible policy toward Taiwan.

    You need to explain that.

    These visits are of no use to Taiwan, except that they increase the risk of military escalation, as can be seen from the reactions of the People’s Republic. That is the dishonesty of this policy. It is good for domestic political applause. That applies to Marie-Agnes Strack-Zimmermann and the FDP just as it applied to Nancy Pelosi. The people of Taiwan bear the risk. There is the threat of a massive conflict with catastrophic consequences for the global economy. I don’t see German politics being aware of this. China and Taiwan are different than Russia and Ukraine. Right now, the status quo is the best option for both sides of the Taiwan Strait.

    How do you explain this dynamic? Just a year ago, hardly anyone in Berlin was interested in Taiwan.

    In my opinion, this is a purely domestic policy issue. The Free Democrats do not want to leave the field of China criticism to the Greens alone. Annalena Baerbock and Robert Habeck have set a specific course with their two leaked China strategies and a warning against too much dependence on China. The FDP is now following suit. I think the debate about dependencies is hysterical.

    What do you suggest? Just carry on as before?

    No, of course not. I think it’s right to think about alternatives. Every halfway sensible company is already doing that. But that’s easier said than done because China is not so easy to replace. Vietnam is often mentioned now, but that is also a communist country – and not a real solution in terms of values. India? A very challenging partner, too – and at least as much on Russia’s side as China is assumed to be. From the perspective of many entrepreneurs, there is also the fact that China is in a much better position in terms of infrastructure and suppliers. Many of the smaller countries in Southeast Asia don’t have that. I have dealt with three companies in the last three months that have sent their people to Vietnam. They found it quite nice there, but the Chinese partner is not so easy to replace, given the size of the domestic market.

    Taiwan at least welcomes the visits of German politicians.

    The Taiwanese are eager for any form of international recognition. Have you ever been to the foreign ministry in Taipei? The last time I was in the entrance area a few years ago, there were flags from 19 countries. Now, Taiwan only has official diplomatic relations with 14 countries. Among those, the Vatican is still the most important. Anything that comes in terms of international recognition is absorbed by Taiwan. Don’t get me wrong. It is alright for a member of the Bundestag to go to a country like Taiwan, which now has a democratically functioning parliament. The question is how to classify such a trip.

    And how?

    The bottom line is that China has nothing against intensive economic cooperation with Taiwan. Nothing is to be said against visits to Taiwan, even by ministers, as long as national symbolism is left aside. I remember Guenter Rexrodt, who visited Taiwan as Economics Minister in 1997. However, the participation of Marie-Agnes Strack-Zimmermann, the chairwoman of the Defense Committee, sends an entirely different political signal.

    But Beijing has also changed a lot since then. In 1997, China had less economic influence and appeared more modest to the outside world. Should the German government stand by and do nothing, as it did in 2020 with the suppression of the democracy movement in Hong Kong?

    Quite honestly, that’s exactly what will happen. Look at the whole debate about supplying weapons to Ukraine and ask yourself: Apart from helmets, would we have anything we could send Taiwan to defend itself from China? The only ones who can effectively support Taiwan are the United States of America. The US needs to push the deterrent so high that Beijing will refrain from attacking. That is exactly what they are doing. But realistically, the United States is also the only one that can do that with credibility. Europe has neither unity on this issue nor the capacity. Do we want to send the Bayern frigate into the East China Sea again to save Taiwan? That is ridiculous. 

    Domestically, however, the US is anything but stable. What if, in two years, someone like Donald Trump, who doesn’t understand the conflict over Taiwan, becomes president again?

    I completely agree with you. For us Europeans, a second Trump would be unfortunate, but for Taiwan, it would be existential.

    Eberhard Sandschneider was a Professor of Chinese politics and international relations at the Free University of Berlin from 1998 to 2020. From 2003 to 2016, he was also Otto-Wolff Director of the research institute of the German Council on Foreign Relations. He is now a partner at the consulting firm “Berlin Global Advisors.”

    • FDP
    • Federal Government
    • Geopolitics
    • Germany
    • Taiwan
    • USA

    News

    China reports nearly 60,000 Covid deaths

    Over the weekend, China’s National Health Commission reported 59,938 deaths in connection with Covid since early December. It is the first time authorities have announced a high death toll. Previously, Beijing had only declared cases of respiratory arrest triggered by the virus as Covid victims. This kept the official figures unrealistically low (China.Table reported).

    The new data refers to deaths “associated” with Covid “within medical facilities” between Dec. 8, 2022, and Jan. 12, 2023, according to the report, which found the average age of those who died was 80.3 years. Authorities said ninety percent of the fatalities were over 65 years old, with most suffering from pre-existing conditions. People who did not die in hospitals, such as at home, are not included in the official figures. That’s another reason experts believe the number of unreported cases could be much higher. Some estimates even assume that up to 1.5 million people could die in connection with Covid by spring.

    Meanwhile, Jiao Yahui, a senior representative of the National Health Commission, said “the peak of national emergency has passed.” The number of people visiting a clinic peaked at 2.9 million on Dec. 23. By Thursday the number had dropped 83 percent to about half a million, she said.

    Following the announcement of the Covid figures, the World Health Organization has called on Beijing to “share detailed information with us and the public.” Only like this, a better understanding of the epidemiological situation is possible, the WHO said in a statement. fpe

    • Coronavirus
    • Health
    • WHO

    Declining exports in December

    China’s Customs reported Friday that the People’s Republic’s exports fell 9.9 percent in December compared to the same month last year. Imports also fell by 7.5 percent. Overall, foreign trade thus registered a nine percent drop in December. China’s exports to Germany fell by 28 percent in December, while imports fell by eleven percent.

    It was the third consecutive monthly decline. China’s strict Zero-Covid policy and weakening international demand were to blame. For 2022 as a whole, however, China’s exports recorded a year-on-year increase of seven percent, mainly due to the better situation in the first half of the year. Imports also increased slightly by one percent.

    China’s foreign trade surplus reached a new annual record of $878 billion. This was mainly due to strong export growth in the first quarter of 2022 when a weak Chinese currency and rising commodity prices drove up the export value.

    A record high of about $190 billion was reached in China’s goods trade with Russia. That represents an increase of more than 30 percent over 2021 and three percent of China’s total trade, according to Lyu Daliang, spokesman for the customs authority. fpe

    • Exports
    • Russland
    • Trade

    China overtakes Germany in car exports

    China’s car exports increased by 54.4 percent to 3.11 million vehicles in 2022, according to data from the China Association of Automobile Manufacturers (CAAM). This means the People’s Republic has overtaken Germany to become the world’s second-largest car exporter behind Japan. According to the report, exports of commercial vehicles increased by 44.9 percent to 582,000 units compared to 2021. Exports of EVs and New Energy Vehicles (NEVs) increased 1.2-fold year-on-year to 679,000 units.

    With numbers like that, China could soon rise to number one. According to MarkLines, a data provider for the automotive industry, Japanese automakers shipped 3.2 million vehicles abroad in the first 11 months of last year, nearly matching last year’s figures.

    Among other factors, CAAM attributed the growth to the increasing competitiveness of Chinese auto companies and supply bottlenecks in other countries, according to reports from Xinhua news agency. fpe

    • Autoindustrie
    • CAAM

    Kishida and Biden confirm chip controls

    During his meeting with US President Joe Biden, Japan’s Prime Minister Fumio Kishida pledged his cooperation to control the export of chip technology to China. Restricting exports of sensitive technology is an important part of Japanese policy, Kishida told Biden, according to Japanese government officials. The US imposed strict restrictions on China’s semiconductor industry in October.

    The visit was a lot about China in general. Both leaders also confirmed their security cooperation, which their line ministers had previously agreed on in detail (China.Table reported). A joint statement by Biden and Kishida addresses Taiwan’s security, a free Indo-Pacific, and free trade. fin

    • Chips
    • Geopolitics
    • Japan
    • Technology
    • USA

    Obituary

    Carl Hahn – He dared the leap to China

    As head of the VW Group in the early 1980s, Carl Hahn pushed the company’s expansion into China.

    Although he was not there from the beginning – the first contact between Wolfsburg and the People’s Republic came about back in 1978. When Carl H. Hahn took the helm of the Volkswagen Group in 1982, he made business in China a top priority and played a key role in driving the company’s entry into the People’s Republic market.

    That was by no means a matter of course. China was poor and backward at the time, and hardly anyone in Germany was interested in the giant empire. With an average wage of less than €50 by today, nobody would be able to afford a passenger car in the foreseeable future. “Fortunately for us, hardly anyone was interested in going there at the time,” Hahn said four years ago in an interview with the VW employee newspaper “Inside.” Developments proved him right. Today, China is the largest car market in the world by far – and also the most important single market for VW. On Saturday, the former group CEO passed away at the age of 96.

    ‘They all thought I was crazy’

    Born in Chemnitz in 1926, Carl Hahn began his career at VW in 1954 as Head of Export Promotion. Between 1959 and 1964, he headed VW’s US business, rising to become Head of Sales and a member of the board of management upon his return. In 1973, he moved to what was then Continental-Gummi-Werke AG in Hanover and took over as head of the company. In 1982, he returned to Wolfsburg as VW chairman of the board of management, where he laid the foundation for the company’s expansion into China.

    The expansion into China was controversial at the time. “They all thought I was crazy,” Hahn later recalled. In the presence of German Chancellor Helmut Kohl, a former head of a German corporation said that Hahn would sink $100 million with the communists. But he was not deterred. Under his leadership, VW brought the Santana to China, a kind of upscale Passat with a rear step that had little success in Europe and Germany, but all the more so in China starting in 1983. “With only 5,000 vehicles sold, we had a market share of 27 percent practically overnight in the first year,” Hahn recalled. Of course, it did not stop there. Over the next 20 years, the Santana became the epitome of economic advancement in China, a true people’s car.

    In 1992, Hahn handed over the reins of the Group to Ferdinand Piëch. Hahn was a member of the VW Supervisory Board until 1997. He retained his fascination with China until the end. He was a regular visitor until the outbreak of the pandemic. When in early 2019 then-Group CEO Herbert Diess declared that Volkswagen’s future would be decided in the Chinese market, he drew applause from Hahn. VW has an excellent position in the country thanks to its early entry, Hahn said. But that position must be defended. “When it comes to electric mobility, the Chinese are driving ahead of the world,” he said. In retrospect, it is difficult to understand why the advantages of electromobility were misjudged for so long. The Chinese were more far-sighted. Felix Lee

    • Autoindustrie
    • Volkswagen

    Executive Moves

    Florian Haider has been responsible for Customer Relationship Management China at Rolls Royce in Munich since January. In his new role, the political science graduate is responsible for implementing projects aimed at advancing the premium carmaker’s overall business strategy in the region.

    Stephan Muser has been Business Development Manager at SIMATIC PCS neo in Shanghai since January. The Siemens subsidiary specializes in web-based process control systems. Muser has been working for Siemens in China since February 2022. Most recently, he was Project Manager PA Strategy there.

    Is something changing in your organization? Why not let us know at heads@table.media!

    So To Speak

    Year of the rabbit

    China hops into the rabbit year. That means it’s time to take a look inside the rabbit hutch of Chinese culture. Time to take a look inside the rabbit hutch of Chinese culture. While the Easter bunny is the best-known breed in the West, the “moon rabbit” (月兔 yuètù) or “jade rabbit” (玉兔 yùtù) munches its way through classical mythology in the Middle Kingdom. Every child in China knows him as the companion of the moon goddess (or moon fairy) Chang’e (嫦娥 Cháng’é), for whom he stamps the elixir of life with his device on the earth’s satellite. The earliest mention of this “rabbit on the moon” dates back to the time of the Warring States (475 – 221 BC). In linguistic use, the story has manifested itself over the centuries in such a way that 月兔 yuètù and 玉兔 yùtù are still common synonyms for the moon in contemporary Chinese

    The Jade Rabbit was finally catapulted into the modern era in 2013 by China’s National Space Administration (CNSA). As part of the Chang’e 3 (“Moon Fairy 3”) mission of the Chinese lunar program, the rover “Yutu” (玉兔号月球车 Yùtùhào yuèqiúchē) was set to our cosmic neighbor.              

    Another Chinese bunny celebrity is right at our fingertips – the “White Rabbit” (大白兔 dàbáitù), which is actually “Big White Rabbit” in Chinese and can be found on virtually every Chinese supermarket shelf. For once, however, it is not the bunny that munches here, but the customer. We are talking about a chewy sweet from the Shanghai food manufacturer Guanshengyuan (冠生园Guānshēngyuán) that is popular throughout the country. The cream candy (奶糖 nǎitáng) with the snow-white rabbit on the crackling wrapper has been bringing sweetness to Chinese children since 1959. Now, in addition to the original (原味 yuánwèi), eleven other hip flavors can be found on candy shelves, including exotic varieties like sweet corn (玉米 yùmǐ), adzuki bean (红豆 hóngdòu), durian stink fruit (榴莲 liúlián) and wasabi (芥末 jièmò) – the latter flavors are certainly not for the faint of heart.

    To prevent the old brand from disappearing down the rabbit hole of obscurity at some point, the traditional Shanghai company relies on a modern marketing strategy with cross-company cooperation and cross-branding. In China, for example, ice cream, milk tea, potato chips, and even hand cream, body lotion, and perfume are now available in “White Rabbit” flavor.

    And – last but not least – you might also see a long-eared rabbit hopping through your chat window in China from time to time – Tuzki, in Chinese兔斯基 Tùsījī, the top dog, excuse me, top rabbit among China’s emojis. He is based on the drawings of illustrator 王卯卯 Wáng Mǎomǎo, better known in the West by her English name, MOMO. She created the rebellious animals in 2006 when people were still sending digital stickers in China via the messaging service QQ. The whimsical long-eared character captured the spirit of an entire generation and was so successful that Warner Media secured the trademark rights. In the meantime, the furry bachelor – who, according to his inventor, is allergic to carrots but loves coffee, dairy products, and sweets – has of course also arrived in the WeChat age. Here you can download numerous animated sticker sets of the minimalist cartoon character for all moods and situations in life.

    Verena Menzel runs the online language school New Chinese in Beijing.

    • Chinese New Year
    • Culture

    China.Table editorial office

    CHINA.TABLE EDITORIAL OFFICE

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