Table.Briefing: China (English)

Sex toy revolution + Russia and the AIIB

Dear reader,

Sexual education in China is a bit like freedom of speech: People have heard about it, but prefer to stay away from it. The fact that there is now a growing market for sex toys in a conservative society like China’s is an interesting development that Fabian Peltsch looks at for us today.

It is hardly surprising that it is mainly young people from urban centers who lose their shyness towards new trends. This also has to do with the Covid pandemic: During the lockdowns, one of the few booming industries in China was the explicit industry. One of the effects of this is a slow de-tabooing of personal desires below the belt. In contrast to freedom of expression, you can’t get burned by sex toys.

Our second analysis is geopolitical. The AIIB, the development bank founded by China, continues to refrain from supporting Russian infrastructure projects. This was revealed to us exclusively by its German Vice President Ludger Schuknecht.

For the AIIB, maintaining distance from Russia is an important element of its external image. Because China indirectly supports the Russian war of aggression in Ukraine, the AIIB’s position vis-à-vis Moscow is closely scrutinized, especially as it is also funded by other countries, including Germany. Since its foundation almost nine years ago, the AIIB has been accused of representing Chinese national interests. And Russia’s defense minister once again confirmed yesterday that Russia and China are very close.

Your
Marcel Grzanna
Image of Marcel  Grzanna

Feature

Growth market: Why more young Chinese people turn to sex toys

Display at the feminist sex toy start-up Master4Fancy from Shanghai. The products are also supposed to function as design objects between candles and other room decorations.

China is also the sex toy workbench of the world: Around 70 percent of adult toys produced worldwide are manufactured in the People’s Republic. Chinese shopping platforms such as Temu now ship worldwide without intermediaries – at prices that Western manufacturers often cannot compete with.

However, China’s sex toy industry is no longer focusing solely on exports, but is increasingly trying to satisfy the growing domestic demand. This also has to do with the Covid pandemic: During the lockdowns, the sex toy industry was one of the few sectors in China to record growth. Although consumption rates are still far behind those in Japan, the largest market in East Asia, the Chinese market is promising. It could reach a volume of 12.3 billion US dollars by 2030. By comparison, the US market was estimated at USD 1.3 billion in 2022. The following trends emerged at the last China Adult Care Expo, the largest Chinese industry trade fair in Shanghai:

  • Greater focus on design and quality: rubber replica genitals are out. Toys are meant to be design objects that can also be placed in the home
  • More high-tech: So-called smart toys promise innovation, for example, toys controlled by personalized AI
  • More start-ups by women for women and the LGBTQ community
  • A stronger focus on sexual education and so-called sexual wellness, which sees improved sexual well-being as a key to improving mental, physical, social and spiritual health

New toys for a new generation

According to estimates, there are 900 million sexually active people in China, with 93 percent of sales of sex toys being made by young adults under the age of 35. “More and more young Chinese are embracing their sexual desires and casting off sexual shame,” Lu Wang from the Shanghai-based company Master4Fancy四趣 told Table.Briefings. Together with two friends, the 35-year-old founded the sex toy start-up in 2019. Their target group is women and people from the LGBTQ community, “whose fantasies have so far been given little consideration in the traditional sex toy market.”

Master4Fancy now has ten employees. The team specializes in toys designed to stimulate the imagination, sometimes resembling tentacles or sometimes orchids. Some are also directly inspired by Chinese mythology, says Lu, such as the dragon model “Gem The Keeper.” “For far too long, toys have been designed as mere ‘male substitutes,‘” says Lu. “Most of the designs on the market are pretty basic – flesh-colored parts in the shape of a penis. We want to change that.” An analysis of followers of their various channels shows that around 64 percent of potential buyers are women and 36 percent are men.

E-commerce as a growth driver

Sex toys in China used to be sold mainly in small shops, coyly labeled as “health products.” With the rise of e-commerce, these shops, which also sold sexual enhancers and underwear, have virtually disappeared. The advantage of e-commerce platforms is that they allow for more or less anonymous shopping, says Lu. They are essential for the survival of niche companies such as Master4Fancy. However, their start-up products are not easy to find on platforms such as Taobao and JD.com – they may be sold, but cannot be advertised. “Customers need a special link to find our shop, as we are not allowed to appear in the search results.” A kind of shadowban. It also frequently happens that her products are taken down for no reason while other products are not.

Aside from easier access, e-commerce has also helped to massively de-taboo the topic. “Many customers contact us on Taobao asking whether it’s okay to use a toy for their first sexual experience or what to do if their parents find out about the toy and confront them about it.” They have deliberately designed their toys as collectibles, not primarily intended to be pornographic, says Lu, who, like the three other founders, has previously worked in sex education. “Displaying sex toys in your own home is becoming less and less of a taboo. It’s also a small act of rebellion in a repressive environment.”

The Master4Fancy team at the Taobao Maker Festival 2021, a retail trade fair for Gen Z.

Urban youth casts off its shame

Society’s views on sexuality in China are still predominantly conservative. Sex education for young people only happens at school as a shameful part of biology lessons. For example, the term “puberty education” (青春期教育) is used more frequently than “sex education.” In a 2019 report published by UNESCO and & UNFPA, the United Nations sexual and reproductive health agency, several teachers said that they omitted “sensitive parts” of sex education lessons because they were “extremely uncomfortable” with the topic. Parents also prefer to remain silent rather than actively engage in sexual education. Alongside pornography, online forums remain the primary source of information.

The issue of sex education is polarizing in China, says Lu. Some support it, others are strictly against it and fear a moral decline. “But overall, sex education is improving!” In the past, it mainly focussed on health risks, such as AIDS or unwanted pregnancies. Today, China’s online self-help forums are also about open dialogue about sexual pleasure. “Female masturbation, which used to be a taboo subject, is receiving much more attention, which is a big change,” says Lu. As a sex toy supplier, she also sees herself in the role of educator in this regard. Other start-ups, such as Beijing-based Sistalk, follow this self-definition. For example, at the above-mentioned Shanghai trade fair, they advertised a vibrator that can predict ovulation by measuring the internal temperature or create personalized, AI-optimized pulse patterns for the respective user.

A sexual rural-urban divide

Lu points out that the new openness has so far been particularly noticeable among the young population of larger cities. In rural regions, people still have problems with diverse sex education. “I have an 18-year-old friend from a rural area who didn’t dare to ask her boyfriend to use a condom because she was afraid he would think she was promiscuous. She ended up getting pregnant. Hearing stories like that makes me angry and sad,” says Lu. She believes that there is still a lot to be done to liberate people’s relationship with sexuality and to ensure that sex toys are widely accepted.

“For example, there are many men who only come to our sites to insult us or harass us. We rarely respond to them – we don’t want them to feel like they’re getting attention for their behavior.” The parents of some of the founders also have strong reservations about their daughters’ careers. One of them was even called a whore by her father, says Lu. She gave her 47-year-old mother a vibrator as a kind of olive branch. “Many married women over 40 lose their sex life when their husbands struggle with problems such as erectile dysfunction.” Lu’s mother wasn’t comfortable with the idea of using the vibrator. “She ended up driving 10 kilometers away from home to send it back to me so that no one she knew would find out that she had a sex toy.”

  • E-commerce
  • Plattformen
  • Society
Translation missing.

AIIB: Why the bank’s relationship with Russia is under scrutiny

Die AIIB sorgt mit Engagement in Kambodscha für Kritik.
The Beijing-based AIIB now has 109 members.

Two and a half years after the start of the war in Ukraine, the Asian Infrastructure Investment Bank (AIIB), which was founded in 2016 on a Chinese initiative, maintains its “no” to Russia. “Cooperation with the Russian side remains frozen. There is currently no reason to change anything,” German AIIB Vice President Ludger Schuknecht told Table.Briefings.

Russia is one of the founding members of the AIIB, which Beijing launched as an alternative to established development banks such as the World Bank and the Asia Development Bank (ADB). After China and India, Russia holds the third-largest voting share in the AIIB with around six percent, and it has a seat on the board of directors. China has by far the largest voting rights with 27 percent. The bank’s no to Russia means that the AIIB will not fund any projects with Russian partners for the time being.

Affected are three infrastructure projects that the AIIB would have funded with a total of 1.1 billion US dollars. Two of them, intended for Russian rail transport, have been suspended while funding for a third project to expand the Kola Highway between St. Petersburg and Murmansk has been terminated.

AIIB’s position vis-à-vis Moscow is under scrutiny

Keeping distance from Russia is an important element of the AIIB’s external image. Because China is indirectly supporting the Russian war of aggression in Ukraine, the AIIB’s position vis-à-vis Moscow is under scrutiny. However, at least regarding staff, Russia is still represented in the bank’s management. Like Schuknecht, Konstantin Limitowski is one of five vice presidents. Limitowski worked for the European Development Bank until 2018. Before that, he was responsible for international projects at the Russian VTB Group for several years.

Since it was founded almost nine years ago, critics have accused the bank of being an instrument of national Chinese interests – primarily for the purpose of supporting New Silk Road Initiative projects with the help of international partners. “One of our challenges is that we always explain that although the AIIB is based in Beijing, China is not the dominant player despite holding the largest shares,” says Schuknecht. In fact, China’s geopolitical rival India is by far the largest recipient of AIIB loans. Although India has so far shown little interest in supporting the New Silk Road, it has received 20 percent of the more than 48 billion US dollars that have flowed from the bank to date.

Close cooperation with China’s Exim Bank

Around ten percent of the money went to China. “From a risk management perspective, we need projects in countries with a good credit rating, such as China, so that we can also realize projects with poor countries with a low rating,” says Schuknecht. The AIIB also works closely with the Chinese Export and Import Bank (Exim). It reports directly to the State Council and officially pursues the goal of promoting China’s foreign trade, investments and international economic cooperation.

Together with the Exim Bank, the AIIB funds projects inside and outside China. The aim is for Exim to improve its lending standards. The AIIB aims to set corresponding standards in its cooperation. In the past, the AIIB itself has been accused of not meeting its own lending standards. Schuknecht diagnoses “teething troubles.” While not perfect, “we have become quite good in the meantime,” he says, adding that they are trying to learn from their mistakes.

‘Japan’s position is regrettable’

Although the AIIB now has a respectable 109 members, its significance compared to the major development banks has so far been limited. This is also because the USA has turned its back on it and Japan still rejects membership. The USA considers the AIIB a tool of Beijing and has tried to dissuade its allies from becoming members. Japan, on the other hand, sees direct competition for the Tokyo-based Asian Development Bank (ADB). “Japan’s position is regrettable because our bank’s operational business repeatedly leads to overlaps and intensive dialogue with the Japanese government,” says Schuknecht. Japan is “one of the pearls” that the AIIB is missing, precisely because, as a regional development bank, it would like to integrate such a large Asian economy.

Moreover, the AIIB is a comparatively small organization with just under 600 employees. The bank maintains no country branches and only relies on local partners. This limits the bank’s global relevance and means it is not as close to its customers, says Schuknecht. On the other hand, he also sees the lean administrative organization as an advantage. Employees could work directly on projects, which is done by the country branches at the World Bank.

  • AIIB
  • Developing countries
  • Finanzen
  • Infrastructure
  • Russland
  • Ukraine War
  • World Bank
Translation missing.

Sinolytics Radar

Emissions trading: How the EU and Chinese systems are converging

Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
  • In addition to the electricity sector, three new sectors will be included in the ETS: cement, iron and steel, and electrolytic aluminum. The new ETS mechanism will cover about 70 percent of China’s total carbon emissions.
  • All the new sectors also fall into the scope of CBAM, which will enter “definitive regime” in 2026 and aims to bridge the gap in carbon costs embedded in imported goods and those made in Europe.
  • So far, the ETS mechanism in China is playing a limited role in influencing the overall decarbonization progress.
  • Free quota allocation and loose quota calculation based on intensity rather than aggregate cap create limited pressure on companies to fulfil such quota requirements.
  • Although the average trading price in China has increased in the past few years, there is a large gap between the price of CN ETS and that of EU ETS. In 2023, the average price in China was 68.2 yuan/ton (equivalently 8.9 EUR/ton), compared to 83.5 yuan/ton in EU.
  • The trading volume of ETS in China fluctuates and is concentrated before settlement dates every two years. However, the settlement frequency will be changed to once per year, which will enhance the trading activity.
  • With further tightening of ETS rules in China, we expect the carbon price to grow steadily, but not significantly impacting the major sectors included.
  • For European companies, the planned expansion of China’s ETS will provide better alignment in decarbonization rules between China and the EU, for instance in carbon footprint reporting. This will facilitate import of goods subject to CBAM or other related regulations such as EU Battery rules.

Sinolytics is a European consulting and analysis company specializing in China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.

  • Klima & Umwelt

News

Economic stimulus packages: Beijing to take on 774 billion euros in new debt

The funding of China’s economic stimulus programs is taking shape. On Tuesday, national media reported on the issue of special government bonds totaling six trillion yuan (774 billion euros). This will allow additional debt to be raised over a period of three years. The funds are to be used to support low-income households, revive the ailing property market and increase the capital of state banks. The regional governments will also be assisted in solving their debt problems.

The reports follow Finance Minister Lan Fo’an’s announcement over the weekend that Beijing would “significantly increase” debt. The substantial scale of the stimulus indicates that the Chinese government sees this year’s growth target of five percent under serious threat. At the end of September, the Central Bank’s monetary policy measures had already triggered greater confidence. However, analysts remain skeptical due to a lack of structural reforms, for example in the social system.

In conversation with Table.Briefings, Gero Kunath from the Cologne Institute for Economic Research (IW) also criticized the lack of a clear line. “On the one hand, the Chinese government is providing local governments with financial resources to reduce debt, which is an important concern. On the other hand, however, it also encourages local governments to use new debt to buy back undeveloped land from property developers who have recently come under pressure to reduce their debt burden.”

The close links between local governments and the property sector represent a significant challenge in China. Revenues from land sales to property developers have long been a key source of income for local governments, but they have recently slumped and are unlikely to recover any time soon. Many property developers have bought more land in recent years than was needed due to the recent drop in demand for property and are now heavily indebted.

The International Monetary Fund (IMF) estimates the central government’s debt at 24 percent of economic output. However, the IMF puts total public debt, including that of regional governments, at around 16 trillion dollars or 116 percent of gross domestic product. grz/rtr

  • Geldpolitik

Military: Russia and China reaffirm ‘no limits’ partnership after Taiwan drills

Russia and China demonstrate geostrategic unity on the Taiwan question. Just one day after the extensive Chinese military drills off the coasts of the democratic island state, senior Chinese military officials received Russian Defense Minister Andrei Beloussov in Beijing. “The military departments of Russia and China are united in their assessments of global processes, and they have a common understanding of what needs to be done in the current situation,” the Russian Ministry of Defense quoted Beloussov as saying.

After the meeting, the Chinese Ministry of Defense announced that both sides hoped to deepen and expand military relations and maintain high-level exchanges. Beloussov met with Zhang Youxia, Vice Chairman of China’s Central Military Commission. The goal was to reinforce the “no limits partnership” and intensify their critical stance towards the USA.

China and Russia proclaimed their “no limits” partnership in February 2022, less than three weeks before the Russian invasion of Ukraine. Last week, Russia declared that it would stand with China on Asian issues, including criticism of the US, which they see as responsible for escalations in the Taiwan Strait.

The US, for its part, accuses Beijing of supporting Russia’s war efforts in Ukraine by supplying so-called dual-use goods, including microelectronics, which could help the country build weapons. China denies this. rtr/grz

  • Russland

Hong Kong: Facebook data shows drastic increase in official censorship

Internet censorship has increased significantly in once-liberal Hong Kong. Facebook, for example, shows that the number of censored statements or posts has more than quintupled since the introduction of the National Security Law. This is based on official figures from Facebook’s parent company Meta, which published the statistical development a few days ago. The number of cases increased from 402 in 2019 to 2181 in 2023.

Most of the restrictions concerned personal Facebook accounts, pages and groups. Meta confirmed to Radio Free Asia’s Cantonese editorial team that the company “responds to government requests for data in accordance with applicable law and our terms of service.” Each request is “carefully reviewed for legal sufficiency,” while any request that appears “overly broad or vague” is carefully reviewed or rejected.

Freedom of expression in Hong Kong has been effectively curtailed through the introduction of a National Security Law. The city is still outside the Great Firewall of China. However, the legislation allows the police to formulate alleged violations very broadly and vaguely, thus provoking self-censorship among citizens. An initial version of the Security Law was implemented in 2020. The further tightened version called Article 23 has been in force since March. grz

  • Meinungsfreiheit

Biodiesel imports: EU countries suspect possible fraud

Several EU countries have warned of possible fraud in biodiesel imports. At a meeting of energy ministers on Tuesday, Ireland, Germany, Belgium and the Netherlands pointed out that biodiesel imports from alleged palm oil production residues have increased dramatically in recent years. This has been the case since the EU introduced incentives for the production of biodiesel from residual and waste materials.

There have been allegations of fraud against China, among others, for some time. European manufacturers accuse Chinese companies of relabeling biodiesel produced from palm oil in other Asian countries and selling it to Europe. Since mid-August, the EU Commission has been imposing punitive tariffs on biodiesel from China, albeit due to dumping, not fraud allegations. Since then, industry representatives have been urging the EU to investigate the allegations of fraud more closely.

In Germany, for example, the use of biofuels from empty palm fruit bunches or wastewater from palm oil mills increased almost fivefold between 2021 and 2022, explained the Deputy Permanent Representative to the EU, Helen Winter. The increase appears “disproportionately large compared to the estimated amount available worldwide,” argued Irish Environment Minister Eamon Ryan. He said that the EU Commission must investigate whether fraud was occurring and take appropriate countermeasures – also to protect European biodiesel producers from unfair competition.

Commission dampens expectations

However, EU Energy Commissioner Kadri Simson dampened hopes of countermeasures from Brussels. She said the Commission’s options were limited because it had no enforcement powers in countries outside the EU. However, controls have already been improved by establishing a Union Biofuels Database (UDB), which has been active since the beginning of the year. Simson announced plans to propose the establishment of a working group on the subject.

Unlike the other countries involved in the initiative, Winter also spoke out in favor of removing biodiesel produced from the palm oil waste in question from the list of so-called “advanced” biofuels. The EU’s Renewable Energy Directive offers special incentives for their use as their production does not compete with food production. jd

  • Kraftstoffe
Translation missing.

Executive Moves

Chi Yin Kaldewey Jen is the new Sales Manager at China Airlines in Frankfurt. She has been working for the Taiwanese carrier for over 20 years, most recently as Deputy Sales Manager Europe. China Airlines currently serves 192 destinations in 29 countries via its hub in Taipei.

Ma Yunpeng is the new Chairman of Hong Kong Air Cargo. Ma has more than 21 years of management experience in the aviation industry, including as Chairman of Grand China Air. Hong Kong Air Cargo currently operates five wide-body aircraft to various charter and liner destinations, including Bangkok, Istanbul, London, Shanghai and Taipei.

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

Dessert

The southern section of the Shanghai Expo Culture Park, which opened at the end of September, has already become a crowd magnet. With a huge greenhouse and two artificial hills, the park aims to bring nature back to the shining business city. The twin hills (双子山 Shuāngzǐ Shān) in particular are a source of excitement and head-shaking. Their hollow structures house exhibition halls, parking lots and even a substation. Chinese travel review portals already ironically advertise a small waterfall on their slopes as “China’s Niagara Falls.”

China.Table editorial team

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    Dear reader,

    Sexual education in China is a bit like freedom of speech: People have heard about it, but prefer to stay away from it. The fact that there is now a growing market for sex toys in a conservative society like China’s is an interesting development that Fabian Peltsch looks at for us today.

    It is hardly surprising that it is mainly young people from urban centers who lose their shyness towards new trends. This also has to do with the Covid pandemic: During the lockdowns, one of the few booming industries in China was the explicit industry. One of the effects of this is a slow de-tabooing of personal desires below the belt. In contrast to freedom of expression, you can’t get burned by sex toys.

    Our second analysis is geopolitical. The AIIB, the development bank founded by China, continues to refrain from supporting Russian infrastructure projects. This was revealed to us exclusively by its German Vice President Ludger Schuknecht.

    For the AIIB, maintaining distance from Russia is an important element of its external image. Because China indirectly supports the Russian war of aggression in Ukraine, the AIIB’s position vis-à-vis Moscow is closely scrutinized, especially as it is also funded by other countries, including Germany. Since its foundation almost nine years ago, the AIIB has been accused of representing Chinese national interests. And Russia’s defense minister once again confirmed yesterday that Russia and China are very close.

    Your
    Marcel Grzanna
    Image of Marcel  Grzanna

    Feature

    Growth market: Why more young Chinese people turn to sex toys

    Display at the feminist sex toy start-up Master4Fancy from Shanghai. The products are also supposed to function as design objects between candles and other room decorations.

    China is also the sex toy workbench of the world: Around 70 percent of adult toys produced worldwide are manufactured in the People’s Republic. Chinese shopping platforms such as Temu now ship worldwide without intermediaries – at prices that Western manufacturers often cannot compete with.

    However, China’s sex toy industry is no longer focusing solely on exports, but is increasingly trying to satisfy the growing domestic demand. This also has to do with the Covid pandemic: During the lockdowns, the sex toy industry was one of the few sectors in China to record growth. Although consumption rates are still far behind those in Japan, the largest market in East Asia, the Chinese market is promising. It could reach a volume of 12.3 billion US dollars by 2030. By comparison, the US market was estimated at USD 1.3 billion in 2022. The following trends emerged at the last China Adult Care Expo, the largest Chinese industry trade fair in Shanghai:

    • Greater focus on design and quality: rubber replica genitals are out. Toys are meant to be design objects that can also be placed in the home
    • More high-tech: So-called smart toys promise innovation, for example, toys controlled by personalized AI
    • More start-ups by women for women and the LGBTQ community
    • A stronger focus on sexual education and so-called sexual wellness, which sees improved sexual well-being as a key to improving mental, physical, social and spiritual health

    New toys for a new generation

    According to estimates, there are 900 million sexually active people in China, with 93 percent of sales of sex toys being made by young adults under the age of 35. “More and more young Chinese are embracing their sexual desires and casting off sexual shame,” Lu Wang from the Shanghai-based company Master4Fancy四趣 told Table.Briefings. Together with two friends, the 35-year-old founded the sex toy start-up in 2019. Their target group is women and people from the LGBTQ community, “whose fantasies have so far been given little consideration in the traditional sex toy market.”

    Master4Fancy now has ten employees. The team specializes in toys designed to stimulate the imagination, sometimes resembling tentacles or sometimes orchids. Some are also directly inspired by Chinese mythology, says Lu, such as the dragon model “Gem The Keeper.” “For far too long, toys have been designed as mere ‘male substitutes,‘” says Lu. “Most of the designs on the market are pretty basic – flesh-colored parts in the shape of a penis. We want to change that.” An analysis of followers of their various channels shows that around 64 percent of potential buyers are women and 36 percent are men.

    E-commerce as a growth driver

    Sex toys in China used to be sold mainly in small shops, coyly labeled as “health products.” With the rise of e-commerce, these shops, which also sold sexual enhancers and underwear, have virtually disappeared. The advantage of e-commerce platforms is that they allow for more or less anonymous shopping, says Lu. They are essential for the survival of niche companies such as Master4Fancy. However, their start-up products are not easy to find on platforms such as Taobao and JD.com – they may be sold, but cannot be advertised. “Customers need a special link to find our shop, as we are not allowed to appear in the search results.” A kind of shadowban. It also frequently happens that her products are taken down for no reason while other products are not.

    Aside from easier access, e-commerce has also helped to massively de-taboo the topic. “Many customers contact us on Taobao asking whether it’s okay to use a toy for their first sexual experience or what to do if their parents find out about the toy and confront them about it.” They have deliberately designed their toys as collectibles, not primarily intended to be pornographic, says Lu, who, like the three other founders, has previously worked in sex education. “Displaying sex toys in your own home is becoming less and less of a taboo. It’s also a small act of rebellion in a repressive environment.”

    The Master4Fancy team at the Taobao Maker Festival 2021, a retail trade fair for Gen Z.

    Urban youth casts off its shame

    Society’s views on sexuality in China are still predominantly conservative. Sex education for young people only happens at school as a shameful part of biology lessons. For example, the term “puberty education” (青春期教育) is used more frequently than “sex education.” In a 2019 report published by UNESCO and & UNFPA, the United Nations sexual and reproductive health agency, several teachers said that they omitted “sensitive parts” of sex education lessons because they were “extremely uncomfortable” with the topic. Parents also prefer to remain silent rather than actively engage in sexual education. Alongside pornography, online forums remain the primary source of information.

    The issue of sex education is polarizing in China, says Lu. Some support it, others are strictly against it and fear a moral decline. “But overall, sex education is improving!” In the past, it mainly focussed on health risks, such as AIDS or unwanted pregnancies. Today, China’s online self-help forums are also about open dialogue about sexual pleasure. “Female masturbation, which used to be a taboo subject, is receiving much more attention, which is a big change,” says Lu. As a sex toy supplier, she also sees herself in the role of educator in this regard. Other start-ups, such as Beijing-based Sistalk, follow this self-definition. For example, at the above-mentioned Shanghai trade fair, they advertised a vibrator that can predict ovulation by measuring the internal temperature or create personalized, AI-optimized pulse patterns for the respective user.

    A sexual rural-urban divide

    Lu points out that the new openness has so far been particularly noticeable among the young population of larger cities. In rural regions, people still have problems with diverse sex education. “I have an 18-year-old friend from a rural area who didn’t dare to ask her boyfriend to use a condom because she was afraid he would think she was promiscuous. She ended up getting pregnant. Hearing stories like that makes me angry and sad,” says Lu. She believes that there is still a lot to be done to liberate people’s relationship with sexuality and to ensure that sex toys are widely accepted.

    “For example, there are many men who only come to our sites to insult us or harass us. We rarely respond to them – we don’t want them to feel like they’re getting attention for their behavior.” The parents of some of the founders also have strong reservations about their daughters’ careers. One of them was even called a whore by her father, says Lu. She gave her 47-year-old mother a vibrator as a kind of olive branch. “Many married women over 40 lose their sex life when their husbands struggle with problems such as erectile dysfunction.” Lu’s mother wasn’t comfortable with the idea of using the vibrator. “She ended up driving 10 kilometers away from home to send it back to me so that no one she knew would find out that she had a sex toy.”

    • E-commerce
    • Plattformen
    • Society
    Translation missing.

    AIIB: Why the bank’s relationship with Russia is under scrutiny

    Die AIIB sorgt mit Engagement in Kambodscha für Kritik.
    The Beijing-based AIIB now has 109 members.

    Two and a half years after the start of the war in Ukraine, the Asian Infrastructure Investment Bank (AIIB), which was founded in 2016 on a Chinese initiative, maintains its “no” to Russia. “Cooperation with the Russian side remains frozen. There is currently no reason to change anything,” German AIIB Vice President Ludger Schuknecht told Table.Briefings.

    Russia is one of the founding members of the AIIB, which Beijing launched as an alternative to established development banks such as the World Bank and the Asia Development Bank (ADB). After China and India, Russia holds the third-largest voting share in the AIIB with around six percent, and it has a seat on the board of directors. China has by far the largest voting rights with 27 percent. The bank’s no to Russia means that the AIIB will not fund any projects with Russian partners for the time being.

    Affected are three infrastructure projects that the AIIB would have funded with a total of 1.1 billion US dollars. Two of them, intended for Russian rail transport, have been suspended while funding for a third project to expand the Kola Highway between St. Petersburg and Murmansk has been terminated.

    AIIB’s position vis-à-vis Moscow is under scrutiny

    Keeping distance from Russia is an important element of the AIIB’s external image. Because China is indirectly supporting the Russian war of aggression in Ukraine, the AIIB’s position vis-à-vis Moscow is under scrutiny. However, at least regarding staff, Russia is still represented in the bank’s management. Like Schuknecht, Konstantin Limitowski is one of five vice presidents. Limitowski worked for the European Development Bank until 2018. Before that, he was responsible for international projects at the Russian VTB Group for several years.

    Since it was founded almost nine years ago, critics have accused the bank of being an instrument of national Chinese interests – primarily for the purpose of supporting New Silk Road Initiative projects with the help of international partners. “One of our challenges is that we always explain that although the AIIB is based in Beijing, China is not the dominant player despite holding the largest shares,” says Schuknecht. In fact, China’s geopolitical rival India is by far the largest recipient of AIIB loans. Although India has so far shown little interest in supporting the New Silk Road, it has received 20 percent of the more than 48 billion US dollars that have flowed from the bank to date.

    Close cooperation with China’s Exim Bank

    Around ten percent of the money went to China. “From a risk management perspective, we need projects in countries with a good credit rating, such as China, so that we can also realize projects with poor countries with a low rating,” says Schuknecht. The AIIB also works closely with the Chinese Export and Import Bank (Exim). It reports directly to the State Council and officially pursues the goal of promoting China’s foreign trade, investments and international economic cooperation.

    Together with the Exim Bank, the AIIB funds projects inside and outside China. The aim is for Exim to improve its lending standards. The AIIB aims to set corresponding standards in its cooperation. In the past, the AIIB itself has been accused of not meeting its own lending standards. Schuknecht diagnoses “teething troubles.” While not perfect, “we have become quite good in the meantime,” he says, adding that they are trying to learn from their mistakes.

    ‘Japan’s position is regrettable’

    Although the AIIB now has a respectable 109 members, its significance compared to the major development banks has so far been limited. This is also because the USA has turned its back on it and Japan still rejects membership. The USA considers the AIIB a tool of Beijing and has tried to dissuade its allies from becoming members. Japan, on the other hand, sees direct competition for the Tokyo-based Asian Development Bank (ADB). “Japan’s position is regrettable because our bank’s operational business repeatedly leads to overlaps and intensive dialogue with the Japanese government,” says Schuknecht. Japan is “one of the pearls” that the AIIB is missing, precisely because, as a regional development bank, it would like to integrate such a large Asian economy.

    Moreover, the AIIB is a comparatively small organization with just under 600 employees. The bank maintains no country branches and only relies on local partners. This limits the bank’s global relevance and means it is not as close to its customers, says Schuknecht. On the other hand, he also sees the lean administrative organization as an advantage. Employees could work directly on projects, which is done by the country branches at the World Bank.

    • AIIB
    • Developing countries
    • Finanzen
    • Infrastructure
    • Russland
    • Ukraine War
    • World Bank
    Translation missing.

    Sinolytics Radar

    Emissions trading: How the EU and Chinese systems are converging

    Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
    • In addition to the electricity sector, three new sectors will be included in the ETS: cement, iron and steel, and electrolytic aluminum. The new ETS mechanism will cover about 70 percent of China’s total carbon emissions.
    • All the new sectors also fall into the scope of CBAM, which will enter “definitive regime” in 2026 and aims to bridge the gap in carbon costs embedded in imported goods and those made in Europe.
    • So far, the ETS mechanism in China is playing a limited role in influencing the overall decarbonization progress.
    • Free quota allocation and loose quota calculation based on intensity rather than aggregate cap create limited pressure on companies to fulfil such quota requirements.
    • Although the average trading price in China has increased in the past few years, there is a large gap between the price of CN ETS and that of EU ETS. In 2023, the average price in China was 68.2 yuan/ton (equivalently 8.9 EUR/ton), compared to 83.5 yuan/ton in EU.
    • The trading volume of ETS in China fluctuates and is concentrated before settlement dates every two years. However, the settlement frequency will be changed to once per year, which will enhance the trading activity.
    • With further tightening of ETS rules in China, we expect the carbon price to grow steadily, but not significantly impacting the major sectors included.
    • For European companies, the planned expansion of China’s ETS will provide better alignment in decarbonization rules between China and the EU, for instance in carbon footprint reporting. This will facilitate import of goods subject to CBAM or other related regulations such as EU Battery rules.

    Sinolytics is a European consulting and analysis company specializing in China. It advises European companies on their strategic orientation and specific business activities in the People’s Republic.

    • Klima & Umwelt

    News

    Economic stimulus packages: Beijing to take on 774 billion euros in new debt

    The funding of China’s economic stimulus programs is taking shape. On Tuesday, national media reported on the issue of special government bonds totaling six trillion yuan (774 billion euros). This will allow additional debt to be raised over a period of three years. The funds are to be used to support low-income households, revive the ailing property market and increase the capital of state banks. The regional governments will also be assisted in solving their debt problems.

    The reports follow Finance Minister Lan Fo’an’s announcement over the weekend that Beijing would “significantly increase” debt. The substantial scale of the stimulus indicates that the Chinese government sees this year’s growth target of five percent under serious threat. At the end of September, the Central Bank’s monetary policy measures had already triggered greater confidence. However, analysts remain skeptical due to a lack of structural reforms, for example in the social system.

    In conversation with Table.Briefings, Gero Kunath from the Cologne Institute for Economic Research (IW) also criticized the lack of a clear line. “On the one hand, the Chinese government is providing local governments with financial resources to reduce debt, which is an important concern. On the other hand, however, it also encourages local governments to use new debt to buy back undeveloped land from property developers who have recently come under pressure to reduce their debt burden.”

    The close links between local governments and the property sector represent a significant challenge in China. Revenues from land sales to property developers have long been a key source of income for local governments, but they have recently slumped and are unlikely to recover any time soon. Many property developers have bought more land in recent years than was needed due to the recent drop in demand for property and are now heavily indebted.

    The International Monetary Fund (IMF) estimates the central government’s debt at 24 percent of economic output. However, the IMF puts total public debt, including that of regional governments, at around 16 trillion dollars or 116 percent of gross domestic product. grz/rtr

    • Geldpolitik

    Military: Russia and China reaffirm ‘no limits’ partnership after Taiwan drills

    Russia and China demonstrate geostrategic unity on the Taiwan question. Just one day after the extensive Chinese military drills off the coasts of the democratic island state, senior Chinese military officials received Russian Defense Minister Andrei Beloussov in Beijing. “The military departments of Russia and China are united in their assessments of global processes, and they have a common understanding of what needs to be done in the current situation,” the Russian Ministry of Defense quoted Beloussov as saying.

    After the meeting, the Chinese Ministry of Defense announced that both sides hoped to deepen and expand military relations and maintain high-level exchanges. Beloussov met with Zhang Youxia, Vice Chairman of China’s Central Military Commission. The goal was to reinforce the “no limits partnership” and intensify their critical stance towards the USA.

    China and Russia proclaimed their “no limits” partnership in February 2022, less than three weeks before the Russian invasion of Ukraine. Last week, Russia declared that it would stand with China on Asian issues, including criticism of the US, which they see as responsible for escalations in the Taiwan Strait.

    The US, for its part, accuses Beijing of supporting Russia’s war efforts in Ukraine by supplying so-called dual-use goods, including microelectronics, which could help the country build weapons. China denies this. rtr/grz

    • Russland

    Hong Kong: Facebook data shows drastic increase in official censorship

    Internet censorship has increased significantly in once-liberal Hong Kong. Facebook, for example, shows that the number of censored statements or posts has more than quintupled since the introduction of the National Security Law. This is based on official figures from Facebook’s parent company Meta, which published the statistical development a few days ago. The number of cases increased from 402 in 2019 to 2181 in 2023.

    Most of the restrictions concerned personal Facebook accounts, pages and groups. Meta confirmed to Radio Free Asia’s Cantonese editorial team that the company “responds to government requests for data in accordance with applicable law and our terms of service.” Each request is “carefully reviewed for legal sufficiency,” while any request that appears “overly broad or vague” is carefully reviewed or rejected.

    Freedom of expression in Hong Kong has been effectively curtailed through the introduction of a National Security Law. The city is still outside the Great Firewall of China. However, the legislation allows the police to formulate alleged violations very broadly and vaguely, thus provoking self-censorship among citizens. An initial version of the Security Law was implemented in 2020. The further tightened version called Article 23 has been in force since March. grz

    • Meinungsfreiheit

    Biodiesel imports: EU countries suspect possible fraud

    Several EU countries have warned of possible fraud in biodiesel imports. At a meeting of energy ministers on Tuesday, Ireland, Germany, Belgium and the Netherlands pointed out that biodiesel imports from alleged palm oil production residues have increased dramatically in recent years. This has been the case since the EU introduced incentives for the production of biodiesel from residual and waste materials.

    There have been allegations of fraud against China, among others, for some time. European manufacturers accuse Chinese companies of relabeling biodiesel produced from palm oil in other Asian countries and selling it to Europe. Since mid-August, the EU Commission has been imposing punitive tariffs on biodiesel from China, albeit due to dumping, not fraud allegations. Since then, industry representatives have been urging the EU to investigate the allegations of fraud more closely.

    In Germany, for example, the use of biofuels from empty palm fruit bunches or wastewater from palm oil mills increased almost fivefold between 2021 and 2022, explained the Deputy Permanent Representative to the EU, Helen Winter. The increase appears “disproportionately large compared to the estimated amount available worldwide,” argued Irish Environment Minister Eamon Ryan. He said that the EU Commission must investigate whether fraud was occurring and take appropriate countermeasures – also to protect European biodiesel producers from unfair competition.

    Commission dampens expectations

    However, EU Energy Commissioner Kadri Simson dampened hopes of countermeasures from Brussels. She said the Commission’s options were limited because it had no enforcement powers in countries outside the EU. However, controls have already been improved by establishing a Union Biofuels Database (UDB), which has been active since the beginning of the year. Simson announced plans to propose the establishment of a working group on the subject.

    Unlike the other countries involved in the initiative, Winter also spoke out in favor of removing biodiesel produced from the palm oil waste in question from the list of so-called “advanced” biofuels. The EU’s Renewable Energy Directive offers special incentives for their use as their production does not compete with food production. jd

    • Kraftstoffe
    Translation missing.

    Executive Moves

    Chi Yin Kaldewey Jen is the new Sales Manager at China Airlines in Frankfurt. She has been working for the Taiwanese carrier for over 20 years, most recently as Deputy Sales Manager Europe. China Airlines currently serves 192 destinations in 29 countries via its hub in Taipei.

    Ma Yunpeng is the new Chairman of Hong Kong Air Cargo. Ma has more than 21 years of management experience in the aviation industry, including as Chairman of Grand China Air. Hong Kong Air Cargo currently operates five wide-body aircraft to various charter and liner destinations, including Bangkok, Istanbul, London, Shanghai and Taipei.

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

    Dessert

    The southern section of the Shanghai Expo Culture Park, which opened at the end of September, has already become a crowd magnet. With a huge greenhouse and two artificial hills, the park aims to bring nature back to the shining business city. The twin hills (双子山 Shuāngzǐ Shān) in particular are a source of excitement and head-shaking. Their hollow structures house exhibition halls, parking lots and even a substation. Chinese travel review portals already ironically advertise a small waterfall on their slopes as “China’s Niagara Falls.”

    China.Table editorial team

    CHINA.TABLE EDITORIAL OFFICE

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