Table.Briefing: China

Widodo in Beijing + Hainan Exhibition

  • Indonesia’s president offers himself as a good partner
  • German companies without interest in Hainan exhibition
  • New heat wave rolls through southern China
  • C919 completes field tests
  • Xi-Biden phone call ‘imminent’
  • TikTok Germany gets works council
  • Trial against lawyer Chang Weiping begins
  • Sinolytics: Decoupling only theoretical so far
  • Heads: Stefan Geiger from Chinaforum Bayern
Dear reader,

Joko Widodo is the first head of state Xi Jinping has met since the Beijing Winter Olympics in February. Vladimir Putin’s visit to the opening ceremony of the Olympics is now legendary. It led to China’s commitment to solidarity with Russia. The face-to-face meeting with the Indonesian president is nowhere near as ominous. But it also has far-reaching symbolic value. China cares about its partners in Southeast Asia, is the message. This way, Beijing scores with the Silk Road countries, writes Michael Radunski.

Meanwhile, German exhibitors have left the ongoing Consumer Products Expo in Hainan behind to a large extent. A mistake, thinks Frank Sieren. China’s tropical island will become the core of a free trade structure that offers good opportunities for foreign trade. After all, the development of the location is a project close to Xi’s heart. France has already recognized these opportunities and is attending this year as a guest of honor.

Your
Finn Mayer-Kuckuk
Image of Finn  Mayer-Kuckuk

Feature

Widodo offers Xi foreign policy support

Presidents Joko Widodo and Xi Jinping in Beijing on Tuesday.

It is a rare sight during the Covid pandemic: In Beijing, China’s President Xi Jinping allows another state leader to approach him within arm’s length. The honor went to his Indonesian counterpart Joko Widodo. The two leaders agreed on Tuesday to develop their two countries’ relations to great strategic importance. This way, they want to gain far-reaching global influence.

It is a visit that is important for both sides. For Xi, it marks the end of his self-imposed isolation: It is his first direct meeting with a foreign head of state since the Winter Olympics in February. Since then, China’s strict “zero-Covid” policy has prevented face-to-face exchanges with foreign heads of state – basically an untenable state of affairs for a global power like China. For Widodo, on the other hand, the visit is primarily about furthering his country’s economic development. Accordingly, the talks focused on trade and investment.

China is Indonesia’s largest trading partner. Despite national and international problems such as covid lockdowns and container congestion, bilateral trade increased by around 70 percent last year. China has also become the third-largest foreign investor in Indonesia – after Singapore and Hong Kong. “It is achieving very significant influence in the Joko Widodo (Jokowi) administration, notably through Indonesia’s most powerful minister, Lujut Panjaitan”, David Engel, Indonesia expert at the Australian Strategic Policy Institute in Canberra, told China.Table. “Its companies are securing dominant positions in several sectors of importance to China, such as metal ore processing.”

China remains attractive to developing countries

It is this kind of cooperation that makes China attractive to many developing and emerging countries: The money flows – it does not remain an empty promise, as is often the case with Western partners. Also, Beijing does not attach payment to conditions such as environmental protection, democratic values or anti-corruption measures. “For China, Indonesia is one of its core BRI partners“, Habib Pashya, a researcher at the Center of Indonesia-China Studies in Yogyakarta, told China.Table. Widodo is thus likely to reinforce Indonesia’s participation in China’s major initiative in Beijing.

Pashya also expects China to make other economic commitments, such as investing in the nickel industry in Sulawesi or expanding Indonesia’s high-speed rail network.

But a planned showcase project for the successful cooperation between China and Indonesia stagnates: The Jakarta-Bandung Express. The construction of Indonesia’s first high-speed rail line has been delayed for years, coupled with a multi-billion dollar cost explosion. Widodo will therefore urge Xi to complete the project by November – at least in time for a trial run. It would then be timed well for the upcoming G-20 meeting in Bali – which is in the interest of both presidents. Despite everything, the line would be an important development success for Indonesia. China, in turn, can present itself as a charitable and technologically impressive partner.

Indonesia essential for China’s regional policy

But the win-win situation for the two states cited by the Chinese Foreign Ministry also includes a political component. Habib Pashya is also confident: “In this trip, President Jokowi will not only focus on economic relations.”

Indonesia is the largest country in Southeast Asia and the largest Muslim nation in the world. And so Indonesia is a kind of “primus inter pares” within the regional confederation ASEAN. In all the plans that China accuses the US government of, the island kingdom would play an important role – from the perceived encirclement of China to the building of an Asian NATO to the idea of a free and open Indo-Pacific. A good connection to Jakarta is thus essential for Beijing.

Last but not least, Indonesia currently holds the presidency of the G20. Xi will therefore press hard to ensure that no unwelcome issues are on the agenda at the upcoming G20 summit in Bali in November – be it Beijing’s failure to condemn Russia’s attack on Ukraine or China’s treatment of the Muslim Uyghurs in Xinjiang.

This has worked exceedingly well in the past, says David Engel. “It has successfully dissuaded Indonesians, both in the government and from the mass Muslim organizations, from challenging Beijing on its human rights record, even when it comes to the Uyghurs.”

China and Indonesia: problems only in the South China Sea

Instead, the biggest problem between China and Indonesia lies in the South China Sea around the Natuna Islands. There, Indonesia holds an exclusive economic zone (EEZ). However, it lies within China’s territorial claims. As a consequence, incidents occur repeatedly, and Chinese coast guard vessels regularly enter Indonesia’s EEZ. Since 2019, Indonesia’s authorities have also recovered suspected Chinese surveillance drones from waters off South Sulawesi, the Riau Islands, and East Java.

David Engel is certain: “China sends hydrographic survey vessels and fishing boats into the area regardless, sometimes with armed escorts.” But despite these tensions, there is no official dispute between China and Indonesia. Experts agree that this is mainly due to China’s economic appeal and the good trade relations between the two countries. David Engel believes that the Natuna issue will be left out during the visit to Beijing.

Harnessing Indonesia against the US

Indonesia is a geopolitically important strategic partner for China. Xi will definitely not want the country to drift firmly towards the US camp. So Xi will be critical of US alliance policy in the region, according to Engel. His guess is criticism of AUKUS, the security pact between the US, Australia, and the UK – and especially Australia’s planned acquisition of nuclear submarines from America.

Beijing has reacted to the alliance with sharp criticism. In Jakarta, some resentment remained. Xi will try to exploit this resentment to secure Indonesia’s agreement to China’s accusations that AUKUS escalated regional tensions, triggered an arms race, and threatened peace in the region. It is possible that Xi will also resort to pressure: For as generous as China’s economic commitment may appear at first glance, it certainly comes at a price.

Widodo is well aware of this – but he also knows the strategic value of his country. And so Indonesia’s president will fly on from Beijing to Japan and South Korea, both close and important partners of the United States in the region. Indonesia will not sell its strategic position short.

  • Geopolitics
  • South China Sea
  • Trade

Hainan Expo: promises for the future – without German interest

Luftaufnahme des Hainan International Convention and Exhibition Center mit geschwungenem weißem Dach
Aerial view of the Hainan International Convention and Exhibition Center: It hosts the second edition of the new trade exhibition on the tropical island

The Hainan Expo is still a young Chinese trade exhibition. But it is definitely important and exciting. That is because the southern Chinese tropical island of Hainan is currently being established as a center of the world’s largest free trade zone, RCEP. In addition to China, 14 other countries have joined forces in this zone, which overall account for 30 percent of the global population and generate 30 percent of global value added.

For Beijing, the development of Hainan now is as crucial as the development of Shenzhen in the past decades, first into the world’s workbench and then into China’s Silicon Valley. The island with mountains up to 1,800 meters and beautiful beaches is about the size of Germany’s North Rhine-Westphalia and has the status of a province. Around 10 million people currently live there. If Beijing implements its strategy as planned, their lives will certainly change quite a bit soon.

Free trade zones in comparison. According to Chinese ideas, Hainan is to become the center of RCEP.

By 2025, Hainan is to become more independent from the mainland, similar to Hong Kong, so that foreigners are able to travel there without a visa. Taxes will be capped at 15 percent. Global income will remain tax-free. It is both China and not China. This will also make Hainan interesting for investors from China’s neighboring countries. And it will become a competitor for Hong Kong and Singapore. In addition, goods transfers in Hainan will be duty-free.

That is why the Hainan Expo is so important. It takes place for only the second time this year and opened its doors on Monday in the provincial capital Haikou in the north of the island. Operators of the exhibition, in full name China International Consumer Products Expo (CICPE), are the Beijing Ministry of Commerce and the provincial government of Hainan.

Hainan exhibition: Germany hardly present

Foreign interest in the new trade exhibition is still quite mixed. For instance, France’s ambassador to China, Laurent Bili, is beating the drum for the trade exhibition, especially for French products. France is the guest of honor this year. The French cosmetics company L`Oreal alone has a booth of over 620 square meters, a quarter more than last year. Bili had also been there in person in 2021 to support companies such as the Galeries Lafayette department store chain. “The CICPE lived up to its promise,” stated Lawrence Shum, CEO of Galeries Lafayette China, at the time.

Japan, of all countries, China’s biggest rival in Asia, has the largest booth in Haikou with 3,300 square meters, followed by the USA with over 3,000 square meters. 2021 Japanese cosmetics brand Shiseido was one of the first companies to agree to participate in the exhibition. The three countries lead the group of 750 exhibitors from 61 countries, offering 1,600 international brands on about 100,000 square meters. Even Australia, which is in high political disputes with Beijing, is there with just under 800 square meters.

In 2021, Switzerland had been the guest of honor. “The expo also marks another big step forward in the construction of the Hainan free trade port and the acceleration of China’s integration into the global economic system,” Swiss Ambassador Bernardino Regazzoni said at the time.

Germany, on the other hand, hardly plays a role in this trade exhibition. Only a few German exhibitors are attending. German companies are cautious given the tense political climate – and possibly for this reason are also skipping the new trade exhibition for the time being. After all, Berlin is still upset about the sanctions (China.Table reported) that Beijing imposed in response to EU human rights sanctions. Germany is also currently discussing how it can reduce its severe economic dependence on China (China.Table reported).

Hainan: future trade hub and consumer paradise?

How important Hainan and the new exhibition will one day become is still an open question and depends on how consistently Beijing works on the economic restructuring of the province. China’s politicians are again deciding more than ever where the country’s resources will flow. Thus, the current economic policy framework certainly speaks in favor of having the Hainan trade exhibition on one’s radar.

President Xi Jinping has declared the exhibition a priority project. He said it intended to “show China’s commitment to opening up further to the world and promoting economic globalization.” Given the frequently lamented hurdles to accessing the country, that may sound cynical. But precisely because of the difficulties in other market segments, it seemed strategically wise for the countries involved to participate in this exhibition.

The concepts of the government in Beijing also envisage making Hainan an international shopping paradise. Travelers from all over the world are to have the opportunity to make a visa-free stop there and go shopping duty-free. Each traveler will be able to buy products up to a value of around $15,000. The development of Hainan thus also fits into the central government’s dual-circulation strategy (China.Table reported): strengthening domestic consumption and diversifying international dependencies.

Hainan also has strategic importance for Beijing – as a space center, for example, or as a strategic bridgehead to the South China Sea, which China claims in large parts. Chinese rockets regularly launch into space from Wenchang on Hainan, carrying satellites, for example. Wenchang is to be developed into one of the leading international space cities. A few days ago, for example, construction began there on the country’s first private spaceport. Commercial rockets are to be launched in 2024.

  • Geopolitics
  • Hainan
  • RCEP
  • Technology
  • Trade
  • USA

Sinolytics.Radar

China’s decoupling so far only symbolic

Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
  • Following the “Huawei” shock in 2019, when the Trump administration cut Huawei off from critical tech input (esp. semiconductors), the Chinese government decided that it needed an arsenal of defensive trade instruments to retaliate against US measures.
  • In quick succession, the Chinese government passed several laws to lay the foundation for a more active approach to economic security. The instruments are largely emulating the US legislative trade defense framework and further substantiate the decoupling between the “West” and China.
  • The first measure was a revised technology export list, followed by China’s first comprehensive Export Control Law, working with a licensing mechanism for certain goods and allowing China to officially impose embargoes against countries on specific goods such as rare earths.
  • In parallel, China introduced the Unreliable Entity List, which sanctions companies that endanger China’s national security or take discriminatory measures such as boycotts or other unilateral sanctions against Chinese companies. The Unreliable Entity List thus serves as a retaliatory measure ag•In parallel, China introduced the Unreliable Entity List, which sanctions companies that endanger China’s national security or take discriminatory measures such as boycotts or other unilateral sanctions against Chinese companies. The Unreliable Entity List thus serves as a retaliatory measure against the export controls imposed by the USA.ainst the export controls imposed by the USA.
  • In parallel, China introduced the Unreliable Entity List, which sanctions companies that endanger China’s national security or take discriminatory measures such as boycotts or other unilateral •The regulatory scope of the instruments is broad and vague (based on national security), giving Chinese authorities wide discretion to single out specific transactions. The formulation of the laws also enables China to use these tools coercively, for example when a company “interferes in China’s internal affairs”.
  • However, the trade instruments remain largely symbolic as China has not used these instruments very actively yet, mainly because China lacks leverage as it controls less advanced technologies than the US.

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

  • Geopolitics
  • Trade

News

New heat wave hits south and west

China – like many other countries around the world – is once again affected by a heat wave. The use of air conditioning in large cities is putting a considerable strain on the power grid, especially in the south: in Guangdong province, there are already bottlenecks.

In China, temperatures are rising faster than the global average as a result of climate change. The country’s weather observatories report new records almost monthly. On Wednesday, temperatures in large parts of southern China are expected to exceed 37 degrees, in some cases reaching 40 degrees, as well as in Xinjiang. fin

  • Climate
  • Guangdong
  • Heat waves
  • Heatwave
  • Sustainability
  • Xinjiang

C919 completes final test flights

China’s first dedicated medium-range passenger jet is about to receive its certificate of airworthiness. The first six completed models of the Comac C919 have successfully completed their test flight program; all that remains is the evaluation of data and official certification by the authorities. It is not yet known when the certificates will be issued. In principle, however, nothing stands in the way of the aircraft’s delivery and commercial operation.

The manufacturing company Commercial Aircraft Corporation of China (Comac) called this a “milestone.” To celebrate, the pilots symbolically lined up their six machines at Weinan Airport in Shaanxi. The aircraft had been in development since 2010 – significantly longer than originally estimated (China.Table reported). It was designed to compete with Boeing’s 737 and Airbus’ A320. There are already 815 orders for the plane. fin

  • Aviation
  • Comac
  • Industry

Talk between Biden and Xi soon?

US President Joe Biden and China’s state and party leader Xi Jinping may talk later this week. Biden held out the prospect on Monday (US local time). “That’s my expectation, but I’ll let you know when that gets set up,” Biden said when asked by reporters about a conversation this week. Biden and Xi had last spoken in March. Since then, relations have continued to deteriorate. China has been threatening the US with consequences for days should US House of Representatives Speaker Nancy Pelosi travel to Taiwan (China.Table reported). Conversely, the US has criticized China’s cozying up to Russia in the Ukraine war and warned of a possible attack on Taiwan.

The US government is keeping channels of communication open with China despite everything, White House spokeswoman Karine Jean-Pierre said. There are talks at various levels, she said. However, she did not want to prejudge the president concerning a possible conversation with Xi. Jean-Pierre also laid low about a Pelosi trip to Taipei, saying Pelosi had not announced such a trip; members of Congress decide independently about their travels, she stated. The politician will soon travel to Asia and is considering a side trip to Taipei. ck

  • Geopolitics
  • Joe Biden
  • USA
  • Xi Jinping

TikTok’s Berlin office allowed to elect works council

Employees at TikTok’s Berlin office can form a works council despite headwinds from management. This was reported by Nikkei Asia concerning the trade union Ver.di, which supports the project. According to the report, 102 of the approximately 200 Berlin employees met mid-July to appoint an election committee at Ver.di’s national headquarters. The actual election is expected to take place in August. A previously digitally conducted election board formation had failed due to the legal resistance of the employer and was delayed by a year.

Employees hope that by establishing a works council they will have an increased say in matters such as pay, performance evaluation, and data protection. The social media giant, whose parent company ByteDance is based in Beijing, has come under global criticism for poor pay and highly stressful working conditions. Among other things, the company is accused of trying to export the notorious Chinese “996” work model – in which employees work from 9 AM to 9 PM six days a week (China.Table reported) – to its foreign subsidiaries.

The short video provider has more than 800 million users worldwide, 15 million in Germany alone. The Tiktok employees in Berlin are primarily involved in moderating content. In an 8-hour shift, they have to sift through and edit about 1,000 videos, Ver.di writes. However, this workload is only possible by playing the videos at four times the normal speed. The content is often disturbing, from abuse to animal cruelty to beheadings. Psychological support is hard to come by, he said. “We have to sift through and evaluate more content in less time under more guidelines,” Sean Krusch, one of the three newly elected election board members, told Ver.di. “Employees urgently need a voice.” fpe

  • 996
  • Society
  • Technology
  • Tiktok
  • Work

Trial start against lawyer Chang Weiping

Behind closed doors, the trial of Chang Weiping, a human rights lawyer arrested in 2020, began Tuesday in the northwestern Chinese city of Baoji. Chang had spent many years advocating for the disadvantaged in China’s society – including HIV-infected people and members of the LGBTQ community – and had increasingly drawn the ire of the government. Chang is charged with “subverting state power.”

German Ambassador Patricia Flor spoke on Twitter of a “sad day for human rights in China”. She said Chang had devoted large parts of his life to fighting discrimination. “The bravery and achievements of Chang Weiping should be celebrated, not punished,” Flor wrote. “We stand by his wife, family, friends and colleagues in calling on Chinese authorities to set him free.” ck

  • Civil Society
  • Human Rights

Heads

Stefan Geiger – Bavaria and China move closer together

Stefan Geiger
Stefan Geiger is Managing Director of the China Forum Bayern and organizer of the Bavarian-Chinese Spring Festival on Saturday in Munich.

The conference room at the China Forum Bayern is packed with gifts from Chinese delegations. Vases and plates stand next to books on classical painting, and all kinds of patterned ties can be found in between. Managing Director Stefan Geiger jokingly calls the items “beautiful dust catchers.” He is also adept at gift-giving himself, bringing together German and Chinese companies. Knowing how much people in China love games, Geiger and his team have designed a Europe quartet, modeled on the card game from childhood. He also counts the occasional gingerbread heart with Bavarian or Chinese sayings among his creative gift repertoire. Giving gifts is part of the dialogue. And that’s what the studied sinologist is all about.

When Stefan Geiger decided to study regional studies of China, he had never been there once. Today, he looks back on several trips – still fascinated by “one of the most exciting countries in the world,” as he says. “I think we currently talk a lot about each other and very little with each other,” Geiger says. A big problem. Opinions are hardened – on Covid or currently on the Ukraine war. In the German media, what the Chinese think about the issues discussed is missed out, he thinks. Personally, he tries to get a picture, to stay in regular contact with his network.

When it comes to the pandemic, it is clear that people in China want more freedom again. “They’re swinging between despair, anger and sarcasm,” Geiger said, describing the situation at the lockdown hotspots. “It’s done something to the people there.” For the expert, unrest and doubts about the covid policy are palpable among the Chinese population. He is perplexed by the fact that no change in strategy seems to be discernible; only an eternal cycle of lockdowns and quarantine.

Due to the war in Europe, China and Russia are currently growing closer again, driven in part by their dislike of the US and its expansion of its power influences. “The common enemy connects the two more than a mutual friendship,” Geiger says.

Anticipation of Bavarian-Chinese Spring Festival in Munich

Geiger, as managing director and organizer, is now looking forward to July 28 – the Bavarian-Chinese Spring Festival, which this year will not take place until September. Preparations are in full swing, the festive hall is sold out. 440 guests are expected, among others from politics and sports. “With the Spring Festival, we want to provide a platform with which this necessary exchange can take place.” Geiger is particularly pleased that a great many Chinese will be attending. He sees the evening event as a meeting place where the entire China community comes together. The “relaxed and nice atmosphere” that always prevails is more important than ever, he says.

The 51-year-old has his roots in the Black Forest. After stops in the north, including Hanover, Stefan Geiger calls Munich his home now. He still remembers his first trip to China very clearly. In 1995, he spent a whole year in Nanjing, in the east of the People’s Republic: “That was the most unusual thing I have ever seen: Donkey carts next to Mercedes 500s.” For him, the country is not always beautiful, but also dirty and noisy. But above all, one thing: exciting. Due to the pandemic, however, his last visit was more than 30 months ago.

The year of birth of the elective Bavarian falls on the traditional sign of the zodiac dog, which embodies qualities such as loyalty and a down-to-earth attitude. A bit too boring for his taste. If he were free to decide, he would choose the Dragon, to which self-confidence, intelligence and enthusiasm are attributed. Stefan Geiger is a sports enthusiast. He not only enjoys watching a volleyball match or basketball tournament on TV, but also swings on a mountain bike or goes to play tennis and squash.

Presenting young Bavaria and young China: that’s what Geiger and his four-member Chinaforum team want to do. There will be no room for clichés on the evening of the event, he announces. “With us, there will never be a lion dance or Schuhplattler.” Instead, the Chinese National Circus and a Bavarian rapper are on the program. The festival can begin. Julia Klann

  • Coronavirus
  • Health
  • Industry
  • Trade
  • USA

Executive Moves

Li Lina is now Director for Asia Strategy at the Pool-fund on International Energy (PIE) at the European Climate Foundation (ECF) in Berlin. Previously, she worked in Berlin at the climate consultancy Adelphi.

Li Huanting of the Henan Provincial Financial Supervisory Authority is facing disciplinary proceedings. The reason is the banking crisis in the region, which has prevented many citizens from accessing their bank accounts.

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

Dessert

Luftaufnahme der Bucht von Shek O mit vielen Sonnenschirmen

Lucky are those who have access to a beach in the current heat wave – like here in the bay of the small village of Shek O in the rocky southeast of Hong Kong Island. The bay is one of the most beautiful in the Special Administrative Region, framed by cliffs and overlooking the open Pacific Ocean, which provides a bit of cooling.

China.Table editorial office

CHINA.TABLE EDITORIAL OFFICE

Licenses:
    • Indonesia’s president offers himself as a good partner
    • German companies without interest in Hainan exhibition
    • New heat wave rolls through southern China
    • C919 completes field tests
    • Xi-Biden phone call ‘imminent’
    • TikTok Germany gets works council
    • Trial against lawyer Chang Weiping begins
    • Sinolytics: Decoupling only theoretical so far
    • Heads: Stefan Geiger from Chinaforum Bayern
    Dear reader,

    Joko Widodo is the first head of state Xi Jinping has met since the Beijing Winter Olympics in February. Vladimir Putin’s visit to the opening ceremony of the Olympics is now legendary. It led to China’s commitment to solidarity with Russia. The face-to-face meeting with the Indonesian president is nowhere near as ominous. But it also has far-reaching symbolic value. China cares about its partners in Southeast Asia, is the message. This way, Beijing scores with the Silk Road countries, writes Michael Radunski.

    Meanwhile, German exhibitors have left the ongoing Consumer Products Expo in Hainan behind to a large extent. A mistake, thinks Frank Sieren. China’s tropical island will become the core of a free trade structure that offers good opportunities for foreign trade. After all, the development of the location is a project close to Xi’s heart. France has already recognized these opportunities and is attending this year as a guest of honor.

    Your
    Finn Mayer-Kuckuk
    Image of Finn  Mayer-Kuckuk

    Feature

    Widodo offers Xi foreign policy support

    Presidents Joko Widodo and Xi Jinping in Beijing on Tuesday.

    It is a rare sight during the Covid pandemic: In Beijing, China’s President Xi Jinping allows another state leader to approach him within arm’s length. The honor went to his Indonesian counterpart Joko Widodo. The two leaders agreed on Tuesday to develop their two countries’ relations to great strategic importance. This way, they want to gain far-reaching global influence.

    It is a visit that is important for both sides. For Xi, it marks the end of his self-imposed isolation: It is his first direct meeting with a foreign head of state since the Winter Olympics in February. Since then, China’s strict “zero-Covid” policy has prevented face-to-face exchanges with foreign heads of state – basically an untenable state of affairs for a global power like China. For Widodo, on the other hand, the visit is primarily about furthering his country’s economic development. Accordingly, the talks focused on trade and investment.

    China is Indonesia’s largest trading partner. Despite national and international problems such as covid lockdowns and container congestion, bilateral trade increased by around 70 percent last year. China has also become the third-largest foreign investor in Indonesia – after Singapore and Hong Kong. “It is achieving very significant influence in the Joko Widodo (Jokowi) administration, notably through Indonesia’s most powerful minister, Lujut Panjaitan”, David Engel, Indonesia expert at the Australian Strategic Policy Institute in Canberra, told China.Table. “Its companies are securing dominant positions in several sectors of importance to China, such as metal ore processing.”

    China remains attractive to developing countries

    It is this kind of cooperation that makes China attractive to many developing and emerging countries: The money flows – it does not remain an empty promise, as is often the case with Western partners. Also, Beijing does not attach payment to conditions such as environmental protection, democratic values or anti-corruption measures. “For China, Indonesia is one of its core BRI partners“, Habib Pashya, a researcher at the Center of Indonesia-China Studies in Yogyakarta, told China.Table. Widodo is thus likely to reinforce Indonesia’s participation in China’s major initiative in Beijing.

    Pashya also expects China to make other economic commitments, such as investing in the nickel industry in Sulawesi or expanding Indonesia’s high-speed rail network.

    But a planned showcase project for the successful cooperation between China and Indonesia stagnates: The Jakarta-Bandung Express. The construction of Indonesia’s first high-speed rail line has been delayed for years, coupled with a multi-billion dollar cost explosion. Widodo will therefore urge Xi to complete the project by November – at least in time for a trial run. It would then be timed well for the upcoming G-20 meeting in Bali – which is in the interest of both presidents. Despite everything, the line would be an important development success for Indonesia. China, in turn, can present itself as a charitable and technologically impressive partner.

    Indonesia essential for China’s regional policy

    But the win-win situation for the two states cited by the Chinese Foreign Ministry also includes a political component. Habib Pashya is also confident: “In this trip, President Jokowi will not only focus on economic relations.”

    Indonesia is the largest country in Southeast Asia and the largest Muslim nation in the world. And so Indonesia is a kind of “primus inter pares” within the regional confederation ASEAN. In all the plans that China accuses the US government of, the island kingdom would play an important role – from the perceived encirclement of China to the building of an Asian NATO to the idea of a free and open Indo-Pacific. A good connection to Jakarta is thus essential for Beijing.

    Last but not least, Indonesia currently holds the presidency of the G20. Xi will therefore press hard to ensure that no unwelcome issues are on the agenda at the upcoming G20 summit in Bali in November – be it Beijing’s failure to condemn Russia’s attack on Ukraine or China’s treatment of the Muslim Uyghurs in Xinjiang.

    This has worked exceedingly well in the past, says David Engel. “It has successfully dissuaded Indonesians, both in the government and from the mass Muslim organizations, from challenging Beijing on its human rights record, even when it comes to the Uyghurs.”

    China and Indonesia: problems only in the South China Sea

    Instead, the biggest problem between China and Indonesia lies in the South China Sea around the Natuna Islands. There, Indonesia holds an exclusive economic zone (EEZ). However, it lies within China’s territorial claims. As a consequence, incidents occur repeatedly, and Chinese coast guard vessels regularly enter Indonesia’s EEZ. Since 2019, Indonesia’s authorities have also recovered suspected Chinese surveillance drones from waters off South Sulawesi, the Riau Islands, and East Java.

    David Engel is certain: “China sends hydrographic survey vessels and fishing boats into the area regardless, sometimes with armed escorts.” But despite these tensions, there is no official dispute between China and Indonesia. Experts agree that this is mainly due to China’s economic appeal and the good trade relations between the two countries. David Engel believes that the Natuna issue will be left out during the visit to Beijing.

    Harnessing Indonesia against the US

    Indonesia is a geopolitically important strategic partner for China. Xi will definitely not want the country to drift firmly towards the US camp. So Xi will be critical of US alliance policy in the region, according to Engel. His guess is criticism of AUKUS, the security pact between the US, Australia, and the UK – and especially Australia’s planned acquisition of nuclear submarines from America.

    Beijing has reacted to the alliance with sharp criticism. In Jakarta, some resentment remained. Xi will try to exploit this resentment to secure Indonesia’s agreement to China’s accusations that AUKUS escalated regional tensions, triggered an arms race, and threatened peace in the region. It is possible that Xi will also resort to pressure: For as generous as China’s economic commitment may appear at first glance, it certainly comes at a price.

    Widodo is well aware of this – but he also knows the strategic value of his country. And so Indonesia’s president will fly on from Beijing to Japan and South Korea, both close and important partners of the United States in the region. Indonesia will not sell its strategic position short.

    • Geopolitics
    • South China Sea
    • Trade

    Hainan Expo: promises for the future – without German interest

    Luftaufnahme des Hainan International Convention and Exhibition Center mit geschwungenem weißem Dach
    Aerial view of the Hainan International Convention and Exhibition Center: It hosts the second edition of the new trade exhibition on the tropical island

    The Hainan Expo is still a young Chinese trade exhibition. But it is definitely important and exciting. That is because the southern Chinese tropical island of Hainan is currently being established as a center of the world’s largest free trade zone, RCEP. In addition to China, 14 other countries have joined forces in this zone, which overall account for 30 percent of the global population and generate 30 percent of global value added.

    For Beijing, the development of Hainan now is as crucial as the development of Shenzhen in the past decades, first into the world’s workbench and then into China’s Silicon Valley. The island with mountains up to 1,800 meters and beautiful beaches is about the size of Germany’s North Rhine-Westphalia and has the status of a province. Around 10 million people currently live there. If Beijing implements its strategy as planned, their lives will certainly change quite a bit soon.

    Free trade zones in comparison. According to Chinese ideas, Hainan is to become the center of RCEP.

    By 2025, Hainan is to become more independent from the mainland, similar to Hong Kong, so that foreigners are able to travel there without a visa. Taxes will be capped at 15 percent. Global income will remain tax-free. It is both China and not China. This will also make Hainan interesting for investors from China’s neighboring countries. And it will become a competitor for Hong Kong and Singapore. In addition, goods transfers in Hainan will be duty-free.

    That is why the Hainan Expo is so important. It takes place for only the second time this year and opened its doors on Monday in the provincial capital Haikou in the north of the island. Operators of the exhibition, in full name China International Consumer Products Expo (CICPE), are the Beijing Ministry of Commerce and the provincial government of Hainan.

    Hainan exhibition: Germany hardly present

    Foreign interest in the new trade exhibition is still quite mixed. For instance, France’s ambassador to China, Laurent Bili, is beating the drum for the trade exhibition, especially for French products. France is the guest of honor this year. The French cosmetics company L`Oreal alone has a booth of over 620 square meters, a quarter more than last year. Bili had also been there in person in 2021 to support companies such as the Galeries Lafayette department store chain. “The CICPE lived up to its promise,” stated Lawrence Shum, CEO of Galeries Lafayette China, at the time.

    Japan, of all countries, China’s biggest rival in Asia, has the largest booth in Haikou with 3,300 square meters, followed by the USA with over 3,000 square meters. 2021 Japanese cosmetics brand Shiseido was one of the first companies to agree to participate in the exhibition. The three countries lead the group of 750 exhibitors from 61 countries, offering 1,600 international brands on about 100,000 square meters. Even Australia, which is in high political disputes with Beijing, is there with just under 800 square meters.

    In 2021, Switzerland had been the guest of honor. “The expo also marks another big step forward in the construction of the Hainan free trade port and the acceleration of China’s integration into the global economic system,” Swiss Ambassador Bernardino Regazzoni said at the time.

    Germany, on the other hand, hardly plays a role in this trade exhibition. Only a few German exhibitors are attending. German companies are cautious given the tense political climate – and possibly for this reason are also skipping the new trade exhibition for the time being. After all, Berlin is still upset about the sanctions (China.Table reported) that Beijing imposed in response to EU human rights sanctions. Germany is also currently discussing how it can reduce its severe economic dependence on China (China.Table reported).

    Hainan: future trade hub and consumer paradise?

    How important Hainan and the new exhibition will one day become is still an open question and depends on how consistently Beijing works on the economic restructuring of the province. China’s politicians are again deciding more than ever where the country’s resources will flow. Thus, the current economic policy framework certainly speaks in favor of having the Hainan trade exhibition on one’s radar.

    President Xi Jinping has declared the exhibition a priority project. He said it intended to “show China’s commitment to opening up further to the world and promoting economic globalization.” Given the frequently lamented hurdles to accessing the country, that may sound cynical. But precisely because of the difficulties in other market segments, it seemed strategically wise for the countries involved to participate in this exhibition.

    The concepts of the government in Beijing also envisage making Hainan an international shopping paradise. Travelers from all over the world are to have the opportunity to make a visa-free stop there and go shopping duty-free. Each traveler will be able to buy products up to a value of around $15,000. The development of Hainan thus also fits into the central government’s dual-circulation strategy (China.Table reported): strengthening domestic consumption and diversifying international dependencies.

    Hainan also has strategic importance for Beijing – as a space center, for example, or as a strategic bridgehead to the South China Sea, which China claims in large parts. Chinese rockets regularly launch into space from Wenchang on Hainan, carrying satellites, for example. Wenchang is to be developed into one of the leading international space cities. A few days ago, for example, construction began there on the country’s first private spaceport. Commercial rockets are to be launched in 2024.

    • Geopolitics
    • Hainan
    • RCEP
    • Technology
    • Trade
    • USA

    Sinolytics.Radar

    China’s decoupling so far only symbolic

    Dieser Inhalt ist Lizenznehmern unserer Vollversion vorbehalten.
    • Following the “Huawei” shock in 2019, when the Trump administration cut Huawei off from critical tech input (esp. semiconductors), the Chinese government decided that it needed an arsenal of defensive trade instruments to retaliate against US measures.
    • In quick succession, the Chinese government passed several laws to lay the foundation for a more active approach to economic security. The instruments are largely emulating the US legislative trade defense framework and further substantiate the decoupling between the “West” and China.
    • The first measure was a revised technology export list, followed by China’s first comprehensive Export Control Law, working with a licensing mechanism for certain goods and allowing China to officially impose embargoes against countries on specific goods such as rare earths.
    • In parallel, China introduced the Unreliable Entity List, which sanctions companies that endanger China’s national security or take discriminatory measures such as boycotts or other unilateral sanctions against Chinese companies. The Unreliable Entity List thus serves as a retaliatory measure ag•In parallel, China introduced the Unreliable Entity List, which sanctions companies that endanger China’s national security or take discriminatory measures such as boycotts or other unilateral sanctions against Chinese companies. The Unreliable Entity List thus serves as a retaliatory measure against the export controls imposed by the USA.ainst the export controls imposed by the USA.
    • In parallel, China introduced the Unreliable Entity List, which sanctions companies that endanger China’s national security or take discriminatory measures such as boycotts or other unilateral •The regulatory scope of the instruments is broad and vague (based on national security), giving Chinese authorities wide discretion to single out specific transactions. The formulation of the laws also enables China to use these tools coercively, for example when a company “interferes in China’s internal affairs”.
    • However, the trade instruments remain largely symbolic as China has not used these instruments very actively yet, mainly because China lacks leverage as it controls less advanced technologies than the US.

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

    • Geopolitics
    • Trade

    News

    New heat wave hits south and west

    China – like many other countries around the world – is once again affected by a heat wave. The use of air conditioning in large cities is putting a considerable strain on the power grid, especially in the south: in Guangdong province, there are already bottlenecks.

    In China, temperatures are rising faster than the global average as a result of climate change. The country’s weather observatories report new records almost monthly. On Wednesday, temperatures in large parts of southern China are expected to exceed 37 degrees, in some cases reaching 40 degrees, as well as in Xinjiang. fin

    • Climate
    • Guangdong
    • Heat waves
    • Heatwave
    • Sustainability
    • Xinjiang

    C919 completes final test flights

    China’s first dedicated medium-range passenger jet is about to receive its certificate of airworthiness. The first six completed models of the Comac C919 have successfully completed their test flight program; all that remains is the evaluation of data and official certification by the authorities. It is not yet known when the certificates will be issued. In principle, however, nothing stands in the way of the aircraft’s delivery and commercial operation.

    The manufacturing company Commercial Aircraft Corporation of China (Comac) called this a “milestone.” To celebrate, the pilots symbolically lined up their six machines at Weinan Airport in Shaanxi. The aircraft had been in development since 2010 – significantly longer than originally estimated (China.Table reported). It was designed to compete with Boeing’s 737 and Airbus’ A320. There are already 815 orders for the plane. fin

    • Aviation
    • Comac
    • Industry

    Talk between Biden and Xi soon?

    US President Joe Biden and China’s state and party leader Xi Jinping may talk later this week. Biden held out the prospect on Monday (US local time). “That’s my expectation, but I’ll let you know when that gets set up,” Biden said when asked by reporters about a conversation this week. Biden and Xi had last spoken in March. Since then, relations have continued to deteriorate. China has been threatening the US with consequences for days should US House of Representatives Speaker Nancy Pelosi travel to Taiwan (China.Table reported). Conversely, the US has criticized China’s cozying up to Russia in the Ukraine war and warned of a possible attack on Taiwan.

    The US government is keeping channels of communication open with China despite everything, White House spokeswoman Karine Jean-Pierre said. There are talks at various levels, she said. However, she did not want to prejudge the president concerning a possible conversation with Xi. Jean-Pierre also laid low about a Pelosi trip to Taipei, saying Pelosi had not announced such a trip; members of Congress decide independently about their travels, she stated. The politician will soon travel to Asia and is considering a side trip to Taipei. ck

    • Geopolitics
    • Joe Biden
    • USA
    • Xi Jinping

    TikTok’s Berlin office allowed to elect works council

    Employees at TikTok’s Berlin office can form a works council despite headwinds from management. This was reported by Nikkei Asia concerning the trade union Ver.di, which supports the project. According to the report, 102 of the approximately 200 Berlin employees met mid-July to appoint an election committee at Ver.di’s national headquarters. The actual election is expected to take place in August. A previously digitally conducted election board formation had failed due to the legal resistance of the employer and was delayed by a year.

    Employees hope that by establishing a works council they will have an increased say in matters such as pay, performance evaluation, and data protection. The social media giant, whose parent company ByteDance is based in Beijing, has come under global criticism for poor pay and highly stressful working conditions. Among other things, the company is accused of trying to export the notorious Chinese “996” work model – in which employees work from 9 AM to 9 PM six days a week (China.Table reported) – to its foreign subsidiaries.

    The short video provider has more than 800 million users worldwide, 15 million in Germany alone. The Tiktok employees in Berlin are primarily involved in moderating content. In an 8-hour shift, they have to sift through and edit about 1,000 videos, Ver.di writes. However, this workload is only possible by playing the videos at four times the normal speed. The content is often disturbing, from abuse to animal cruelty to beheadings. Psychological support is hard to come by, he said. “We have to sift through and evaluate more content in less time under more guidelines,” Sean Krusch, one of the three newly elected election board members, told Ver.di. “Employees urgently need a voice.” fpe

    • 996
    • Society
    • Technology
    • Tiktok
    • Work

    Trial start against lawyer Chang Weiping

    Behind closed doors, the trial of Chang Weiping, a human rights lawyer arrested in 2020, began Tuesday in the northwestern Chinese city of Baoji. Chang had spent many years advocating for the disadvantaged in China’s society – including HIV-infected people and members of the LGBTQ community – and had increasingly drawn the ire of the government. Chang is charged with “subverting state power.”

    German Ambassador Patricia Flor spoke on Twitter of a “sad day for human rights in China”. She said Chang had devoted large parts of his life to fighting discrimination. “The bravery and achievements of Chang Weiping should be celebrated, not punished,” Flor wrote. “We stand by his wife, family, friends and colleagues in calling on Chinese authorities to set him free.” ck

    • Civil Society
    • Human Rights

    Heads

    Stefan Geiger – Bavaria and China move closer together

    Stefan Geiger
    Stefan Geiger is Managing Director of the China Forum Bayern and organizer of the Bavarian-Chinese Spring Festival on Saturday in Munich.

    The conference room at the China Forum Bayern is packed with gifts from Chinese delegations. Vases and plates stand next to books on classical painting, and all kinds of patterned ties can be found in between. Managing Director Stefan Geiger jokingly calls the items “beautiful dust catchers.” He is also adept at gift-giving himself, bringing together German and Chinese companies. Knowing how much people in China love games, Geiger and his team have designed a Europe quartet, modeled on the card game from childhood. He also counts the occasional gingerbread heart with Bavarian or Chinese sayings among his creative gift repertoire. Giving gifts is part of the dialogue. And that’s what the studied sinologist is all about.

    When Stefan Geiger decided to study regional studies of China, he had never been there once. Today, he looks back on several trips – still fascinated by “one of the most exciting countries in the world,” as he says. “I think we currently talk a lot about each other and very little with each other,” Geiger says. A big problem. Opinions are hardened – on Covid or currently on the Ukraine war. In the German media, what the Chinese think about the issues discussed is missed out, he thinks. Personally, he tries to get a picture, to stay in regular contact with his network.

    When it comes to the pandemic, it is clear that people in China want more freedom again. “They’re swinging between despair, anger and sarcasm,” Geiger said, describing the situation at the lockdown hotspots. “It’s done something to the people there.” For the expert, unrest and doubts about the covid policy are palpable among the Chinese population. He is perplexed by the fact that no change in strategy seems to be discernible; only an eternal cycle of lockdowns and quarantine.

    Due to the war in Europe, China and Russia are currently growing closer again, driven in part by their dislike of the US and its expansion of its power influences. “The common enemy connects the two more than a mutual friendship,” Geiger says.

    Anticipation of Bavarian-Chinese Spring Festival in Munich

    Geiger, as managing director and organizer, is now looking forward to July 28 – the Bavarian-Chinese Spring Festival, which this year will not take place until September. Preparations are in full swing, the festive hall is sold out. 440 guests are expected, among others from politics and sports. “With the Spring Festival, we want to provide a platform with which this necessary exchange can take place.” Geiger is particularly pleased that a great many Chinese will be attending. He sees the evening event as a meeting place where the entire China community comes together. The “relaxed and nice atmosphere” that always prevails is more important than ever, he says.

    The 51-year-old has his roots in the Black Forest. After stops in the north, including Hanover, Stefan Geiger calls Munich his home now. He still remembers his first trip to China very clearly. In 1995, he spent a whole year in Nanjing, in the east of the People’s Republic: “That was the most unusual thing I have ever seen: Donkey carts next to Mercedes 500s.” For him, the country is not always beautiful, but also dirty and noisy. But above all, one thing: exciting. Due to the pandemic, however, his last visit was more than 30 months ago.

    The year of birth of the elective Bavarian falls on the traditional sign of the zodiac dog, which embodies qualities such as loyalty and a down-to-earth attitude. A bit too boring for his taste. If he were free to decide, he would choose the Dragon, to which self-confidence, intelligence and enthusiasm are attributed. Stefan Geiger is a sports enthusiast. He not only enjoys watching a volleyball match or basketball tournament on TV, but also swings on a mountain bike or goes to play tennis and squash.

    Presenting young Bavaria and young China: that’s what Geiger and his four-member Chinaforum team want to do. There will be no room for clichés on the evening of the event, he announces. “With us, there will never be a lion dance or Schuhplattler.” Instead, the Chinese National Circus and a Bavarian rapper are on the program. The festival can begin. Julia Klann

    • Coronavirus
    • Health
    • Industry
    • Trade
    • USA

    Executive Moves

    Li Lina is now Director for Asia Strategy at the Pool-fund on International Energy (PIE) at the European Climate Foundation (ECF) in Berlin. Previously, she worked in Berlin at the climate consultancy Adelphi.

    Li Huanting of the Henan Provincial Financial Supervisory Authority is facing disciplinary proceedings. The reason is the banking crisis in the region, which has prevented many citizens from accessing their bank accounts.

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

    Dessert

    Luftaufnahme der Bucht von Shek O mit vielen Sonnenschirmen

    Lucky are those who have access to a beach in the current heat wave – like here in the bay of the small village of Shek O in the rocky southeast of Hong Kong Island. The bay is one of the most beautiful in the Special Administrative Region, framed by cliffs and overlooking the open Pacific Ocean, which provides a bit of cooling.

    China.Table editorial office

    CHINA.TABLE EDITORIAL OFFICE

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