Table.Briefing: China

Taiwan and the ‘Zeitenwende’ + EU Chamber optimistic

  • Taiwan: Approaching the ‘Zeitenwende’
  • EU Chamber visits Brussels
  • Second Covid wave imminent
  • Joerg Wuttke leaves China
  • Japan and US deepen alliance
  • Bosch invests one billion in China
  • Bavaria’s economy complains about subsidies
  • Mofcom releases controlled import goods list
  • China Perspective: imported holidays
Dear reader,

Visits to Taiwan by politicians to express solidarity have been very popular in recent months. Felix Lee took this as an opportunity to investigate whether the diplomatic visits marked a turning point in Germany’s Taiwan policy. The German Social Democratic Party (SPD) is of particular interest here; after all, the Greens and the Free Democratic Party (FDP) have already clearly positioned themselves.

Renowned SPD foreign policy experts Michael Roth and Nils Schmid confirmed to Lee that a change in thinking is taking place, even if the conventional policy guidelines toward China continue to apply. In the overall picture, a real turning point is approaching so rapidly that experts are already alarmed: A real departure from the One-China principle would do more harm than good to Taiwan.

3 days, 23 appointments – the need for personal exchange is great. Travel restrictions have barely been lifted when a delegation from the EU Chamber of Commerce visits Brussels. The representatives of European companies met with MPs, EU Commission representatives and Chinese diplomats. Apart from Covid, numerous other economic and political issues concern entrepreneurs. Chamber President Joerg Wuttke found pithy words to describe the direction of the People’s Republic under Xi: “More Marx instead of market.” Marcel Grzanna reports from Brussels. 

Your
Julia Fiedler
Image of Julia  Fiedler

Feature

Germany’s Taiwan policy approaches turning point

SPD deputy Michael Roth: Russia policy as a model for dealing with China.

The Taiwan conflict has arrived on Berlin’s political scene. Not long ago, there was a chance that MPs would confuse Taiwan with Thailand. Today, one visit to Taiwan by German politicians follows the next. The preservation of Taiwan as a democratic state is at the top of the foreign policy agenda. Politicians apparently hope to score points with voters at home by showing solidarity for the island 9,000 kilometers away.

The German foreign and economic ministries, both led by the Greens, have explicitly mentioned support for Taiwan in their leaked strategy papers. With the current visit of a high-ranking liberal FDP delegation to Taipei, including chairwoman of the defense committee Marie-Agnes Strack-Zimmermann, the FDP as the second governing party is also sending a clear signal in support of an independent Taiwan.

SPD positions itself: Russia policy should become blueprint

And even the SPD has chosen a harsher tone, even though, like the previous government under Angela Merkel, it actually favors cooperation with the leadership in Beijing and does not risk German business interests in the People’s Republic under any circumstances. “Russia’s war of aggression against Ukraine has unfortunately opened our eyes in a united Europe and in the community of democratic, free constitutional states far too late,” SPD MP Michael Roth, chairman of the Foreign Affairs Committee, told China.Table. 

He believes an escalation around Taiwan is a realistic scenario in the next few years. Germany and Europe must prepare for this, Roth said. And that includes clearly showing the Chinese leadership that the political West will react united to a military escalation. “The great unity in Russia policy must be our model here.” 

Break with China not ruled out

SPD head Lars Klingbeil can no longer even rule out a break with China. “We must realize that tomorrow, the day after tomorrow or in ten years’ time, the time may come when China crosses borders,” Klingbeil said in the German weekly Die Zeit. “If China attacks Taiwan, our relationship with China will also fundamentally change, as is the case now with Russia.” 

Germany must become more independent of China, tap other markets and find other raw materials trading partners, say both SPD politicians – echoing the views of the Greens and the FDP. Accordingly, Roth also welcomes the visit of the FDP delegation to Taiwan this week. “I, too, have already exchanged views with Taiwan’s representative in Germany. Such talks are by no means a provocation.”

A shift, but not a landslide

Clear words that would not have been spoken under the previous government. And this is also the view of the leadership in Beijing, which has reacted to the FDP’s trip with appropriate protest messages and even additional military exercises. But is this really a shift in direction in the German government’s Taiwan policy, or even a turning point?

Politicians dismiss this question. “I would not speak of a turning point, but of a growing awareness of the region,” Nils Schmid, foreign policy spokesman for the SPD parliamentary group, told China.Table. His parliamentary group already stated in a position paper three years ago that there cannot be a unilateral change of the status quo by the People’s Republic of China or a violent conflict in the Taiwan Strait, but rather only by mutual agreement.

‘Important signal’ – and an upgrade of Taiwan

Schmid sees the diplomatic visits of recent months – in addition to the FDP, two cross-party delegations from the German Bundestag were also in Taiwan – as an “important signal“. At the same time, he warns against overestimating the Chinese leadership’s protest. After all, Germany’s position on the One-China policy has not changed.

Gunter Schubert, a political scientist on China at the University of Tübingen, takes a more differentiated view. He does not see the German government departing from the “One China principle,” which excludes Germany’s support for Taiwan’s sovereignty. But Germany, like other states, is now implicitly distinguishing between the ‘One China policy’ on the one hand and the ‘One China principle’ on the other.”

Beijing’s threats trigger a rethink

This means that the German government continues to follow Beijing’s demand at the official level that Taiwan and China should be considered as one part of a whole China. But the government separates this position from the People’s Republic of China’s claim to sovereignty over Taiwan. And this claim to sovereignty is “undermined by increasing delegation traffic, expressions of sympathy toward Taiwan, and also with direct references to Taiwan – for example in strategic documents.”

Just like the Greens, the FDP is pushing the boundaries of this new policy, Schubert said. And the SPD? It has so far focused on cooperation with Beijing, but it is likely to change this stance – to the extent that the conflict between China and Taiwan intensifies. 

Scratching the status quo can also be dangerous

The Zeitenwende in Taiwan politics is already emerging so clearly that other political scientists are even downright alarmed. Eberhard Sandschneider calls the actions of the FDP and the Greens “irresponsible politics.” “It does Taiwan no good at all. It only increases the risk for Taiwan, as can be seen from the reactions of the People’s Republic,” says the East Asia expert, who headed the research center of the German Council on Foreign Relations (DGAP) until 2016. He calls out the “mendacity of this policy,” which is good for “domestic political applause.” That applies to Strack-Zimmermann and the FDP just as it applied to Nancy Pelosi, he says.

Sandschneider emphasizes that there is nothing wrong with visits to Taiwan, even by ministers, as long as they focus on economic cooperation and national symbolism is left aside. There had been such a visit with Guenter Rexrodt as Minister of Economics in 1997. Beijing had little objection to it. However, the participation of Marie-Agnes Strack-Zimmermann, the chairwoman of the defense committee, sent a different signal.

The ones who take the risk are the people of Taiwan, Sandschneider said. “Whoever turns this conflict recklessly must be aware of his responsibility. And that is what I find lacking in German politics,” the political scientist criticizes. “Measured against the risk of a massive conflict arising there, which would have catastrophic consequences for the global economy.” He emphasizes that China-Taiwan is different from Russia-Ukraine. Also for the German economy. “The best option for both sides at the moment is the status quo,” Sandschneider firmly believes.

  • Ampel-Koalition
  • Federal Government
  • Geopolitics
  • Germany
  • Taiwan

After Covid, Marx puts on the brakes

The EU Chamber of Commerce in China has taken advantage of the end of zero-covid and visited Brussels for the first time in about three years. The delegation, led by Chamber President Jörg Wuttke, made a veritable appointment marathon of this week to personally meet with numerous representatives of the EU Commission, MPs and Chinese diplomats. For Wuttke, it is his last trip to Brussels in his capacity as chamber president. In May, the 65-year-old will step down from his post after more than a decade.

The schedule that the delegation set for itself reflects the urgency of personal exchanges, which have been drastically complicated by the travel restrictions of recent years. The representatives of European companies in China used 23 appointments in the first three days of their visit to convey their concerns and their views on the political and economic development of the People’s Republic.

‘Five percent growth is possible’

Talks are planned with EU Trade Commissioner Valdis Dombrovskis and China’s EU Ambassador Fu Cong, among others. Always high on the agenda: the post-Covid outlook. “2022 was a nightmare,” Wuttke said at a press briefing in Brussels Thursday morning. “But the good news is that it’s over.” The chamber expects the economy to rebound significantly in the second quarter. Wuttke believes five percent growth is still possible for 2023.

To achieve it, however, China would have to act “more leniently and graciously” and not respond with new restrictions on trading partners, as it has already done this week. Short-term visas were denied to travelers from Japan and South Korea after both countries introduced mandatory testing for arrivals from the People’s Republic. Germany introduced the same mandatory testing, but has so far been spared retaliatory measures.

Ideology hinders growth

But Covid is just one of many woes that have recently plagued European companies in China. Difficult market access, stuttering domestic consumption and unfair treatment have long plagued companies. But compared to the 2000s, the political atmosphere has deteriorated to such an extent that even Wuttke is now skeptical that things could change in the near future.

“More Marx instead of market,” the chamber president summarized the new ideological focus of the People’s Republic under President Xi Jinping, which in the long term will slow down growth and opening up. Because less market means strengthening inefficient state-owned enterprises, which the country originally wanted to reform and modernize for nearly two decades.

‘No war’ over Taiwan in the next ten years at least

Beijing will pay a high price for this strategic decision. The EU Chamber assumes that China will lose enormous economic output by the year 2050 if the country continues down its “socialist path”. Instead of the $55,000 optimum projected a few years ago, it would generate only $34,000 per capita, studies predict. “China needs to know whether its ideological orientation is worth $21,000 per capita,” Wuttke said.

Meanwhile, the Taiwan issue hangs over China’s business like the sword of Damocles. Since Russia’s assault on Ukraine, the democratically governed island gained the attention of the Western world. Wuttke is certain that there will be no war, at least “within the next ten years.” The economic consequences of an invasion would be far too great for Beijing. However, this is only true if the status quo remains unchanged. In other words, there are not likely to be any serious efforts toward independence in Taiwan.

  • EU
  • Jörg Wuttke
  • Trade

Events

Jan. 16; 6 p.m. CET (Jan. 17; 1 a.m. CST)
SOAS University of London, Webinar: Revisiting Women’s Cinema: Feminism, Socialism, and Mainstream Culture in Modern China More

Jan. 17; 6 p.m. CET (Jan. 18; 1 a.m. CST)
Kontech Insights, Webinar: Experience Digital China – Get inspired by Customers from the Future More

Jan. 18; 12 p.m. CET (7 p.m. CST)
Mercator Institute for China Studies, Online Conference: MERICS China Forecast 2023 More

Jan. 19; 3 p.m. CET (10 p.m. CST)
Austrian Institute of International Affairs, Online Panel Discussion: China-Russia relations and the war in Ukraine More

Jan. 19; 6 p.m. CEST (Jan. 20; 1 a.m. CST)
Dezan Shira Associates, Webinar: The End of China’s Zero-Covid Policy: What’s Next? More

Jan. 20; 2 a.m. CET (9:00 a.m. CST)
The China Project, Webinar: US & China: Twin Economic Growth Engines More

Jan. 20; 9:30 p.m. CET (Jan. 21; 4:30 a.m. CST)
Center for Strategic & International Studies, book launch and discussion: Overreach: How China Derailed its Peaceful Rise More

Jan. 21; 3 p.m. CET (10 p.m. CST)
British Interplanetary Society, Webinar: China In Space – The Science, Observation and Application Programs with Brian Harvey More

News

Model: Even higher Covid wave ahead

The Covid wave in China could reach a first peak this Friday, with 3.7 million new infections. This was calculated by researchers from the independent data analysis institute Airfinity. The number of Covid-related deaths could also peak ten days later at 25,000 per day.

According to estimates, the infection wave that has gripped China since early December will then have caused about half a million deaths from COVID-19. That number could rise to a total of 1.7 million by the end of April, Airfinity estimates. China does not release current data on Covid infections and deaths. In addition, Chinese authorities define death as a Covid death only if the person died of pneumonia or respiratory failure after infection.

In early March, another peak could follow with a total of 4.2 million infections per day, according to Airfinity. The focus will then probably be in rural areas. Rural areas are home to a particularly large number of elderly people, who are often inadequately vaccinated for fear of side effects. In addition, medical care is less efficient than in China’s large cities.

Before the Chinese New Year on January 22, several hundred million Chinese will travel to their home countries or relatives, spreading the virus from metropolitan areas to smaller and medium-sized cities as well as rural regions. In the absence of concrete data, models also base their predictions on estimates and indirect sources of information. In major cities in coastal regions, the infection peak could have been passed around Christmas. jul

  • Coronavirus
  • Covid-19
  • Health

Joerg Wuttke leaves China

The co-initiator and long-time president of the European Chamber of Commerce in China, Joerg Wuttke, will leave the People’s Republic of China after more than 35 years. In an interview with Table.Media, the 65-year-old confirmed that he will be moving to the USA with his family next year in order to devote himself to new tasks there.

In May, Wuttke will initially resign his EU Chamber mandate “to finally make room for younger people,” he said. The German headed the chamber with interruptions for three terms in total. Wuttke has been general representative in China for the chemical group BASF since 1997. grz

  • EU
  • Jörg Wuttke
  • Trade

US and Japan deepen alliance against China

Japan’s Prime Minister Fumio Kishida will meet US President Joe Biden in Washington on Friday. However, the most important decisions have already been made. The US pledged military support for Japan on Thursday should China reach for Japanese southern islands. To prepare for Kishida’s visit, Foreign Minister Yoshimasa Hayashi and Defense Minister Yasukazu Hamada already traveled to Washington.

The Japanese Okinawa Islands are located near Taiwan just off the Chinese mainland. The United States already operates a large military base there. In a joint statement, the ministers denounced “dangerous and provocative” activities by China and called for peace. The new cooperation is thus explicitly aimed at China. The US and Japan also expanded the definition of aggression to include attacks in outer space. fin

  • Geopolitics
  • Japan
  • Military
  • Taiwan
  • USA

Bosch invests almost one billion

Bosch further expands its activities in China. Over several years, about €950 million is to be invested in a new R&D and manufacturing center at the Suzhou site. It will develop and manufacture components for electromobility and automated driving for Chinese automakers, Bosch announced on Thursday. The first part of the center is expected to be operational by mid-2024. CEO Stefan Hartung called the investment “an important step for the mobility of the future in the world’s biggest auto market.” Suzhou is already one of the foundation group’s largest sites worldwide, with nearly 10,000 employees across four plants. In total, Bosch has some 55,000 employees in China. rtr

  • Bosch

Bavarian industry calls for defense against subsidies

The Association of Bavarian Business (vbw) is calling for EU measures against subsidized products from China. If necessary, these should also be unilateral. The demand stems from a study prepared by the Prognos research institute for the vbw. It found that Chinese subsidies make it more difficult to sell German products on the global market, while Chinese goods are cheaper as a result. fin

  • Subsidies
  • Trade

Mofcom releases list of controlled import goods

The Chinese Ministry of Commerce (Mofcom) released the import license list for 2023. The list specifies which product groups require an import license from the People’s Republic. According to the German foreign trade agency Germany Trade and Invest (GTAI), only “minimal changes” have been made to the list this time. The lists are updated every year. ari

  • Duties
  • GTAI
  • Import
  • Trade

China Perspective

Imported holidays

A string of Valentine’s days lies ahead. Some list the Lantern Festival (Yuanxiao) among the romantic holidays. This year it will fall on February 5th. But the American style Valentine’s Day on February 14th will get much more attention. It is mainly popular among the younger generations as it is imported from the West. Usually, women give chocolate to their partners to show their love. Men are expected to return the favor later.

Some argue that the most original Chinese Valentine’s Day is on July 7th on the lunar calendar. The date is indeed of romantic significance. Folklore goes that an unfortunate couple – a cowboy and a weaver – were separated by a wicked goddess to different sides of the Milky Way. They are allowed to meet only once a year, on this day, on a bridge to be formed by magpies of goodwill.  

However, when this day gradually became a holiday in ancient times in China, it was for girls to pray for endowments for domestic work, especially needlework, not for romantic love. The reason was obvious. Romantic love, although already a topic in literary works in Chinese antiquity, was almost never encouraged by the mainstream value system in ancient times. Love became a private matter in China that could stay independent of interventions from the State and family only in the 1980s.   

Quite a few days on the calendar are official holidays both in China and in other parts of the world, for example, New Year’s Day and Workers’ Day on May 1st. Women’s Day on March 8th is not a public holiday in China. But most employers would allow female employees to call it a day at noon. However, those three have been on China’s official calendar for decades. Although they all originated outside the country, they are already not seen as being foreign anymore. 

Then there are exotic festivals that are not public holidays but are also celebrated by some Chinese, particularly in large cities. The others are Valentine’s Day, Thanksgiving, Halloween, Mother’s Day in May and Father’s Day in June. The biggest one is of course Christmas.

It is noteworthy that the imported holidays visibly celebrated in China, both official and unofficial ones, are all from the West, mainly from the United States. Thanksgiving, Mother’s Day, and Father’s Day exist in different countries on different dates. Chinese celebrating them follow the US calendar. This, together with the popularity of Halloween, is yet another sign of American pop culture’s attraction. Coming with it is the American style of expression: exaggerated, sugary, and sometimes even a bit mawkish.  

Acceptance of these unofficial west-originated festivals reflects the increasing appreciation of more explicit expressions of feelings among Chinese and their pursuit of different forms of fun.  

The government frowns on Christmas

Santa Claus is a well-known figure in China. A grandfatherly old man dressed in red and delivering gifts to children on a reindeer-drawn sleigh is something that could easily win the hearts of different cultures.  

Tall, glittering Christmas trees stand also in front of shopping malls in big Chinese cities to remind visitors that this is part of the consumerist world, too. Trendy people are supposed to have a fancy dinner with a boyfriend or girlfriend on Christmas Eve, although this year, unfortunately, the shopping and dinner parts are mostly avoided for fear of catching Covid.

In addition, a new quirky tradition for Christmas Eve has in the past decade or so appeared among Chinese young people: they give others an apple as “Fruit for Peace.” Christmas Eve is called Peaceful Night in Chinese (Ping An Ye 平安夜). And apple is Ping Guo 苹果. Both words have a character pronounced as Ping. That might sound far-fetched and childishly kitsch, but it seems to be a not-so-bad example of how a foreign cultural tradition gets an unexpected local feature. 

And of course, there are people celebrating Christmas for religious reasons: the millions of Chinese Christians. Yet, Christmas is not a public holiday in China. Quite the contrary, spasms of xenophobia and fear of Christianity’s growing influence have from time to time resulted in calls for boycotting Christmas, particularly in universities. University administrators would prevent students from Christmas-related events.   

Also, although some western holidays found their way to China, celebrations of festivals of ethnic minority groups in China are nowhere to be seen in the regions overwhelmingly populated by the majority of Han people.

  • Culture
  • Society

Executive Moves

The Chinese government has made a number of leadership changes at the vice-minister level.

Li Chunlin and Yang Yinkai become deputy heads of the National Development and Reform Commission NDRC.

Dong Jianguo was named vice minister of housing and urban-rural development.

Wang Daoxi took the post of vice minister of water resources.

Cong Lin was appointed vice chairperson of the China Banking and Insurance Regulatory Commission. She replaces Liang Tao.

Li Hongyan became deputy head of the State Administration of Foreign Exchange.

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

Dessert

The 20,000 workers at the Xinhe factories in Pingdu, Shandong, do not have to grasp at the last straw. Their native province, where Confucius also came from, produces an abundance of wheat and barley. Their straw, considered dirt in the great philosopher’s time, is now raw material for woven crafts. The baskets and bags in this showroom are made using numerous time-honored techniques.

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    • Taiwan: Approaching the ‘Zeitenwende’
    • EU Chamber visits Brussels
    • Second Covid wave imminent
    • Joerg Wuttke leaves China
    • Japan and US deepen alliance
    • Bosch invests one billion in China
    • Bavaria’s economy complains about subsidies
    • Mofcom releases controlled import goods list
    • China Perspective: imported holidays
    Dear reader,

    Visits to Taiwan by politicians to express solidarity have been very popular in recent months. Felix Lee took this as an opportunity to investigate whether the diplomatic visits marked a turning point in Germany’s Taiwan policy. The German Social Democratic Party (SPD) is of particular interest here; after all, the Greens and the Free Democratic Party (FDP) have already clearly positioned themselves.

    Renowned SPD foreign policy experts Michael Roth and Nils Schmid confirmed to Lee that a change in thinking is taking place, even if the conventional policy guidelines toward China continue to apply. In the overall picture, a real turning point is approaching so rapidly that experts are already alarmed: A real departure from the One-China principle would do more harm than good to Taiwan.

    3 days, 23 appointments – the need for personal exchange is great. Travel restrictions have barely been lifted when a delegation from the EU Chamber of Commerce visits Brussels. The representatives of European companies met with MPs, EU Commission representatives and Chinese diplomats. Apart from Covid, numerous other economic and political issues concern entrepreneurs. Chamber President Joerg Wuttke found pithy words to describe the direction of the People’s Republic under Xi: “More Marx instead of market.” Marcel Grzanna reports from Brussels. 

    Your
    Julia Fiedler
    Image of Julia  Fiedler

    Feature

    Germany’s Taiwan policy approaches turning point

    SPD deputy Michael Roth: Russia policy as a model for dealing with China.

    The Taiwan conflict has arrived on Berlin’s political scene. Not long ago, there was a chance that MPs would confuse Taiwan with Thailand. Today, one visit to Taiwan by German politicians follows the next. The preservation of Taiwan as a democratic state is at the top of the foreign policy agenda. Politicians apparently hope to score points with voters at home by showing solidarity for the island 9,000 kilometers away.

    The German foreign and economic ministries, both led by the Greens, have explicitly mentioned support for Taiwan in their leaked strategy papers. With the current visit of a high-ranking liberal FDP delegation to Taipei, including chairwoman of the defense committee Marie-Agnes Strack-Zimmermann, the FDP as the second governing party is also sending a clear signal in support of an independent Taiwan.

    SPD positions itself: Russia policy should become blueprint

    And even the SPD has chosen a harsher tone, even though, like the previous government under Angela Merkel, it actually favors cooperation with the leadership in Beijing and does not risk German business interests in the People’s Republic under any circumstances. “Russia’s war of aggression against Ukraine has unfortunately opened our eyes in a united Europe and in the community of democratic, free constitutional states far too late,” SPD MP Michael Roth, chairman of the Foreign Affairs Committee, told China.Table. 

    He believes an escalation around Taiwan is a realistic scenario in the next few years. Germany and Europe must prepare for this, Roth said. And that includes clearly showing the Chinese leadership that the political West will react united to a military escalation. “The great unity in Russia policy must be our model here.” 

    Break with China not ruled out

    SPD head Lars Klingbeil can no longer even rule out a break with China. “We must realize that tomorrow, the day after tomorrow or in ten years’ time, the time may come when China crosses borders,” Klingbeil said in the German weekly Die Zeit. “If China attacks Taiwan, our relationship with China will also fundamentally change, as is the case now with Russia.” 

    Germany must become more independent of China, tap other markets and find other raw materials trading partners, say both SPD politicians – echoing the views of the Greens and the FDP. Accordingly, Roth also welcomes the visit of the FDP delegation to Taiwan this week. “I, too, have already exchanged views with Taiwan’s representative in Germany. Such talks are by no means a provocation.”

    A shift, but not a landslide

    Clear words that would not have been spoken under the previous government. And this is also the view of the leadership in Beijing, which has reacted to the FDP’s trip with appropriate protest messages and even additional military exercises. But is this really a shift in direction in the German government’s Taiwan policy, or even a turning point?

    Politicians dismiss this question. “I would not speak of a turning point, but of a growing awareness of the region,” Nils Schmid, foreign policy spokesman for the SPD parliamentary group, told China.Table. His parliamentary group already stated in a position paper three years ago that there cannot be a unilateral change of the status quo by the People’s Republic of China or a violent conflict in the Taiwan Strait, but rather only by mutual agreement.

    ‘Important signal’ – and an upgrade of Taiwan

    Schmid sees the diplomatic visits of recent months – in addition to the FDP, two cross-party delegations from the German Bundestag were also in Taiwan – as an “important signal“. At the same time, he warns against overestimating the Chinese leadership’s protest. After all, Germany’s position on the One-China policy has not changed.

    Gunter Schubert, a political scientist on China at the University of Tübingen, takes a more differentiated view. He does not see the German government departing from the “One China principle,” which excludes Germany’s support for Taiwan’s sovereignty. But Germany, like other states, is now implicitly distinguishing between the ‘One China policy’ on the one hand and the ‘One China principle’ on the other.”

    Beijing’s threats trigger a rethink

    This means that the German government continues to follow Beijing’s demand at the official level that Taiwan and China should be considered as one part of a whole China. But the government separates this position from the People’s Republic of China’s claim to sovereignty over Taiwan. And this claim to sovereignty is “undermined by increasing delegation traffic, expressions of sympathy toward Taiwan, and also with direct references to Taiwan – for example in strategic documents.”

    Just like the Greens, the FDP is pushing the boundaries of this new policy, Schubert said. And the SPD? It has so far focused on cooperation with Beijing, but it is likely to change this stance – to the extent that the conflict between China and Taiwan intensifies. 

    Scratching the status quo can also be dangerous

    The Zeitenwende in Taiwan politics is already emerging so clearly that other political scientists are even downright alarmed. Eberhard Sandschneider calls the actions of the FDP and the Greens “irresponsible politics.” “It does Taiwan no good at all. It only increases the risk for Taiwan, as can be seen from the reactions of the People’s Republic,” says the East Asia expert, who headed the research center of the German Council on Foreign Relations (DGAP) until 2016. He calls out the “mendacity of this policy,” which is good for “domestic political applause.” That applies to Strack-Zimmermann and the FDP just as it applied to Nancy Pelosi, he says.

    Sandschneider emphasizes that there is nothing wrong with visits to Taiwan, even by ministers, as long as they focus on economic cooperation and national symbolism is left aside. There had been such a visit with Guenter Rexrodt as Minister of Economics in 1997. Beijing had little objection to it. However, the participation of Marie-Agnes Strack-Zimmermann, the chairwoman of the defense committee, sent a different signal.

    The ones who take the risk are the people of Taiwan, Sandschneider said. “Whoever turns this conflict recklessly must be aware of his responsibility. And that is what I find lacking in German politics,” the political scientist criticizes. “Measured against the risk of a massive conflict arising there, which would have catastrophic consequences for the global economy.” He emphasizes that China-Taiwan is different from Russia-Ukraine. Also for the German economy. “The best option for both sides at the moment is the status quo,” Sandschneider firmly believes.

    • Ampel-Koalition
    • Federal Government
    • Geopolitics
    • Germany
    • Taiwan

    After Covid, Marx puts on the brakes

    The EU Chamber of Commerce in China has taken advantage of the end of zero-covid and visited Brussels for the first time in about three years. The delegation, led by Chamber President Jörg Wuttke, made a veritable appointment marathon of this week to personally meet with numerous representatives of the EU Commission, MPs and Chinese diplomats. For Wuttke, it is his last trip to Brussels in his capacity as chamber president. In May, the 65-year-old will step down from his post after more than a decade.

    The schedule that the delegation set for itself reflects the urgency of personal exchanges, which have been drastically complicated by the travel restrictions of recent years. The representatives of European companies in China used 23 appointments in the first three days of their visit to convey their concerns and their views on the political and economic development of the People’s Republic.

    ‘Five percent growth is possible’

    Talks are planned with EU Trade Commissioner Valdis Dombrovskis and China’s EU Ambassador Fu Cong, among others. Always high on the agenda: the post-Covid outlook. “2022 was a nightmare,” Wuttke said at a press briefing in Brussels Thursday morning. “But the good news is that it’s over.” The chamber expects the economy to rebound significantly in the second quarter. Wuttke believes five percent growth is still possible for 2023.

    To achieve it, however, China would have to act “more leniently and graciously” and not respond with new restrictions on trading partners, as it has already done this week. Short-term visas were denied to travelers from Japan and South Korea after both countries introduced mandatory testing for arrivals from the People’s Republic. Germany introduced the same mandatory testing, but has so far been spared retaliatory measures.

    Ideology hinders growth

    But Covid is just one of many woes that have recently plagued European companies in China. Difficult market access, stuttering domestic consumption and unfair treatment have long plagued companies. But compared to the 2000s, the political atmosphere has deteriorated to such an extent that even Wuttke is now skeptical that things could change in the near future.

    “More Marx instead of market,” the chamber president summarized the new ideological focus of the People’s Republic under President Xi Jinping, which in the long term will slow down growth and opening up. Because less market means strengthening inefficient state-owned enterprises, which the country originally wanted to reform and modernize for nearly two decades.

    ‘No war’ over Taiwan in the next ten years at least

    Beijing will pay a high price for this strategic decision. The EU Chamber assumes that China will lose enormous economic output by the year 2050 if the country continues down its “socialist path”. Instead of the $55,000 optimum projected a few years ago, it would generate only $34,000 per capita, studies predict. “China needs to know whether its ideological orientation is worth $21,000 per capita,” Wuttke said.

    Meanwhile, the Taiwan issue hangs over China’s business like the sword of Damocles. Since Russia’s assault on Ukraine, the democratically governed island gained the attention of the Western world. Wuttke is certain that there will be no war, at least “within the next ten years.” The economic consequences of an invasion would be far too great for Beijing. However, this is only true if the status quo remains unchanged. In other words, there are not likely to be any serious efforts toward independence in Taiwan.

    • EU
    • Jörg Wuttke
    • Trade

    Events

    Jan. 16; 6 p.m. CET (Jan. 17; 1 a.m. CST)
    SOAS University of London, Webinar: Revisiting Women’s Cinema: Feminism, Socialism, and Mainstream Culture in Modern China More

    Jan. 17; 6 p.m. CET (Jan. 18; 1 a.m. CST)
    Kontech Insights, Webinar: Experience Digital China – Get inspired by Customers from the Future More

    Jan. 18; 12 p.m. CET (7 p.m. CST)
    Mercator Institute for China Studies, Online Conference: MERICS China Forecast 2023 More

    Jan. 19; 3 p.m. CET (10 p.m. CST)
    Austrian Institute of International Affairs, Online Panel Discussion: China-Russia relations and the war in Ukraine More

    Jan. 19; 6 p.m. CEST (Jan. 20; 1 a.m. CST)
    Dezan Shira Associates, Webinar: The End of China’s Zero-Covid Policy: What’s Next? More

    Jan. 20; 2 a.m. CET (9:00 a.m. CST)
    The China Project, Webinar: US & China: Twin Economic Growth Engines More

    Jan. 20; 9:30 p.m. CET (Jan. 21; 4:30 a.m. CST)
    Center for Strategic & International Studies, book launch and discussion: Overreach: How China Derailed its Peaceful Rise More

    Jan. 21; 3 p.m. CET (10 p.m. CST)
    British Interplanetary Society, Webinar: China In Space – The Science, Observation and Application Programs with Brian Harvey More

    News

    Model: Even higher Covid wave ahead

    The Covid wave in China could reach a first peak this Friday, with 3.7 million new infections. This was calculated by researchers from the independent data analysis institute Airfinity. The number of Covid-related deaths could also peak ten days later at 25,000 per day.

    According to estimates, the infection wave that has gripped China since early December will then have caused about half a million deaths from COVID-19. That number could rise to a total of 1.7 million by the end of April, Airfinity estimates. China does not release current data on Covid infections and deaths. In addition, Chinese authorities define death as a Covid death only if the person died of pneumonia or respiratory failure after infection.

    In early March, another peak could follow with a total of 4.2 million infections per day, according to Airfinity. The focus will then probably be in rural areas. Rural areas are home to a particularly large number of elderly people, who are often inadequately vaccinated for fear of side effects. In addition, medical care is less efficient than in China’s large cities.

    Before the Chinese New Year on January 22, several hundred million Chinese will travel to their home countries or relatives, spreading the virus from metropolitan areas to smaller and medium-sized cities as well as rural regions. In the absence of concrete data, models also base their predictions on estimates and indirect sources of information. In major cities in coastal regions, the infection peak could have been passed around Christmas. jul

    • Coronavirus
    • Covid-19
    • Health

    Joerg Wuttke leaves China

    The co-initiator and long-time president of the European Chamber of Commerce in China, Joerg Wuttke, will leave the People’s Republic of China after more than 35 years. In an interview with Table.Media, the 65-year-old confirmed that he will be moving to the USA with his family next year in order to devote himself to new tasks there.

    In May, Wuttke will initially resign his EU Chamber mandate “to finally make room for younger people,” he said. The German headed the chamber with interruptions for three terms in total. Wuttke has been general representative in China for the chemical group BASF since 1997. grz

    • EU
    • Jörg Wuttke
    • Trade

    US and Japan deepen alliance against China

    Japan’s Prime Minister Fumio Kishida will meet US President Joe Biden in Washington on Friday. However, the most important decisions have already been made. The US pledged military support for Japan on Thursday should China reach for Japanese southern islands. To prepare for Kishida’s visit, Foreign Minister Yoshimasa Hayashi and Defense Minister Yasukazu Hamada already traveled to Washington.

    The Japanese Okinawa Islands are located near Taiwan just off the Chinese mainland. The United States already operates a large military base there. In a joint statement, the ministers denounced “dangerous and provocative” activities by China and called for peace. The new cooperation is thus explicitly aimed at China. The US and Japan also expanded the definition of aggression to include attacks in outer space. fin

    • Geopolitics
    • Japan
    • Military
    • Taiwan
    • USA

    Bosch invests almost one billion

    Bosch further expands its activities in China. Over several years, about €950 million is to be invested in a new R&D and manufacturing center at the Suzhou site. It will develop and manufacture components for electromobility and automated driving for Chinese automakers, Bosch announced on Thursday. The first part of the center is expected to be operational by mid-2024. CEO Stefan Hartung called the investment “an important step for the mobility of the future in the world’s biggest auto market.” Suzhou is already one of the foundation group’s largest sites worldwide, with nearly 10,000 employees across four plants. In total, Bosch has some 55,000 employees in China. rtr

    • Bosch

    Bavarian industry calls for defense against subsidies

    The Association of Bavarian Business (vbw) is calling for EU measures against subsidized products from China. If necessary, these should also be unilateral. The demand stems from a study prepared by the Prognos research institute for the vbw. It found that Chinese subsidies make it more difficult to sell German products on the global market, while Chinese goods are cheaper as a result. fin

    • Subsidies
    • Trade

    Mofcom releases list of controlled import goods

    The Chinese Ministry of Commerce (Mofcom) released the import license list for 2023. The list specifies which product groups require an import license from the People’s Republic. According to the German foreign trade agency Germany Trade and Invest (GTAI), only “minimal changes” have been made to the list this time. The lists are updated every year. ari

    • Duties
    • GTAI
    • Import
    • Trade

    China Perspective

    Imported holidays

    A string of Valentine’s days lies ahead. Some list the Lantern Festival (Yuanxiao) among the romantic holidays. This year it will fall on February 5th. But the American style Valentine’s Day on February 14th will get much more attention. It is mainly popular among the younger generations as it is imported from the West. Usually, women give chocolate to their partners to show their love. Men are expected to return the favor later.

    Some argue that the most original Chinese Valentine’s Day is on July 7th on the lunar calendar. The date is indeed of romantic significance. Folklore goes that an unfortunate couple – a cowboy and a weaver – were separated by a wicked goddess to different sides of the Milky Way. They are allowed to meet only once a year, on this day, on a bridge to be formed by magpies of goodwill.  

    However, when this day gradually became a holiday in ancient times in China, it was for girls to pray for endowments for domestic work, especially needlework, not for romantic love. The reason was obvious. Romantic love, although already a topic in literary works in Chinese antiquity, was almost never encouraged by the mainstream value system in ancient times. Love became a private matter in China that could stay independent of interventions from the State and family only in the 1980s.   

    Quite a few days on the calendar are official holidays both in China and in other parts of the world, for example, New Year’s Day and Workers’ Day on May 1st. Women’s Day on March 8th is not a public holiday in China. But most employers would allow female employees to call it a day at noon. However, those three have been on China’s official calendar for decades. Although they all originated outside the country, they are already not seen as being foreign anymore. 

    Then there are exotic festivals that are not public holidays but are also celebrated by some Chinese, particularly in large cities. The others are Valentine’s Day, Thanksgiving, Halloween, Mother’s Day in May and Father’s Day in June. The biggest one is of course Christmas.

    It is noteworthy that the imported holidays visibly celebrated in China, both official and unofficial ones, are all from the West, mainly from the United States. Thanksgiving, Mother’s Day, and Father’s Day exist in different countries on different dates. Chinese celebrating them follow the US calendar. This, together with the popularity of Halloween, is yet another sign of American pop culture’s attraction. Coming with it is the American style of expression: exaggerated, sugary, and sometimes even a bit mawkish.  

    Acceptance of these unofficial west-originated festivals reflects the increasing appreciation of more explicit expressions of feelings among Chinese and their pursuit of different forms of fun.  

    The government frowns on Christmas

    Santa Claus is a well-known figure in China. A grandfatherly old man dressed in red and delivering gifts to children on a reindeer-drawn sleigh is something that could easily win the hearts of different cultures.  

    Tall, glittering Christmas trees stand also in front of shopping malls in big Chinese cities to remind visitors that this is part of the consumerist world, too. Trendy people are supposed to have a fancy dinner with a boyfriend or girlfriend on Christmas Eve, although this year, unfortunately, the shopping and dinner parts are mostly avoided for fear of catching Covid.

    In addition, a new quirky tradition for Christmas Eve has in the past decade or so appeared among Chinese young people: they give others an apple as “Fruit for Peace.” Christmas Eve is called Peaceful Night in Chinese (Ping An Ye 平安夜). And apple is Ping Guo 苹果. Both words have a character pronounced as Ping. That might sound far-fetched and childishly kitsch, but it seems to be a not-so-bad example of how a foreign cultural tradition gets an unexpected local feature. 

    And of course, there are people celebrating Christmas for religious reasons: the millions of Chinese Christians. Yet, Christmas is not a public holiday in China. Quite the contrary, spasms of xenophobia and fear of Christianity’s growing influence have from time to time resulted in calls for boycotting Christmas, particularly in universities. University administrators would prevent students from Christmas-related events.   

    Also, although some western holidays found their way to China, celebrations of festivals of ethnic minority groups in China are nowhere to be seen in the regions overwhelmingly populated by the majority of Han people.

    • Culture
    • Society

    Executive Moves

    The Chinese government has made a number of leadership changes at the vice-minister level.

    Li Chunlin and Yang Yinkai become deputy heads of the National Development and Reform Commission NDRC.

    Dong Jianguo was named vice minister of housing and urban-rural development.

    Wang Daoxi took the post of vice minister of water resources.

    Cong Lin was appointed vice chairperson of the China Banking and Insurance Regulatory Commission. She replaces Liang Tao.

    Li Hongyan became deputy head of the State Administration of Foreign Exchange.

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

    Dessert

    The 20,000 workers at the Xinhe factories in Pingdu, Shandong, do not have to grasp at the last straw. Their native province, where Confucius also came from, produces an abundance of wheat and barley. Their straw, considered dirt in the great philosopher’s time, is now raw material for woven crafts. The baskets and bags in this showroom are made using numerous time-honored techniques.

    China.Table editorial office

    CHINA.TABLE EDITORIAL OFFICE

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