Weekly Roundup: Got China EP1; Li Qiang visits Australia; EU's tariffs on Chinese EVs; China's inbound tourism; Stabbing incident in Jilin

Hello, I've been quite busy lately. As a result, I'll be combining various topics in today's newsletter.

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1. Got China EP1

First of all, I am very happy to let you know that a talk show Got China featuring Zichen Wang, Yang Liu and me are online on YouTube! Got China is a talking show where guests dive deep into the hottest topics on China. It is produced by Xinhua Institute think tank. In the first episode, we discussed a recent article titled No Substitute for Victory from Foreign Affairs with topics including:

• Observe how the article has shaped the discourse both in Washington and Beijing

• Forecast what the article bodes for the future of China-U.S. relationship

• Identify which arguments may not be based on sound facts or accurate understanding

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2. Chinese Premier Li Qiang visits Australia

Premier Li Qiang is paying official visits to New Zealand, Australia and Malaysia from June 13 to 20. He is now in Australia. The biggest news on social media so far is that he announced there that China will include Australia in its visa waiver program after meeting with Prime Minister Anthony Albanese in Canberra.

Recently, international attention has intensified regarding the Chinese Premier's first visit to Australia in seven years. The "panda diplomacy" that took place on the June 16 has also generated considerable discussion.

China-Australia cooperation can cross the Pacific, transcend differences -- Premier Li

Noting that Wang Wang and Fu Ni will return to China this year as agreed by the two sides, Li said China is ready to continue cooperation with Australia on panda protection and research, and hopes that Australia will always be a friendly home for giant pandas.

China to work with Australia for more mature, stable, fruitful comprehensive strategic partnership -- Premier Li

Looking back at the development of China-Australia relations over the past decade, the most important experience and inspiration is to uphold mutual respect and mutually beneficial cooperation, and seek common ground while shelving differences, he said.

Since Prime Minister Albanese's visit to China last November, China and Australia have further restored and developed dialogues and cooperation in various fields, achieving a comprehensive turnaround in bilateral relations, Li said.

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3. EU's tariffs on China

The European Commission on Wednesday revealed a list of duties it would levy on imports of battery electric vehicles (EVs) from China. I've invited Ren Ke to share his insights on EU's latest tariffs on China's EVs. From 2021 to 2023, Ren was the deputy editor-in-chief of Xinhua's Europe Regional Bureau in Brussels and a correspondent covering EU institutions.

Ren began by recalling his experience in 2023 at the European Parliament headquarters in Strasbourg, where he listened to European Commission President Ursula von der Leyen’s State of the Union address, and then shared his views on the recent European tariffs imposed on China.

On the morning of September 13, 2023, I was at the Louise Weiss building, the European Parliament headquarters in Strasbourg, listening to European Commission President Ursula von der Leyen’s State of the Union address.

While she was talking about the European Green Deal, I was not very interested and got distracted by my smartphone. Suddenly I heard a word that drew me back to her speech: China.

I was initially confused about what China had to do with the Green Deal, but later von der Leyen went on to accuse China of flooding the bloc with cheaper electric vehicles (EVs) and announced that the Commission was launching an anti-subsidy investigation into EVs coming from China.

Moments later, von der Leyen called for maintaining dialogue with China while also de-risking rather than “de-coupling.” Her speech highlighted how intertwined trade, economic relations, and politics are!

After von der Leyen’s address ended, I talked to Manfred Weber, President of the European People’s Party (EPP), outside the main hall. The German Member of the European Parliament (MEP) is from the same party group as von der Leyen and supported the Commission’s move. Weber told me that the Commission would conduct a fact-based assessment, although it would be very difficult. He emphasized that the EU must use all available tools to protect its market from “unfair competition.”

Weber did not respond to my rebuttal that Chinese EVs were not cheap as von der Leyen said, but they were as expensive as Tesla.

Interestingly, several MEPs I spoke with did not agree with him and the commission.

On September 13, 2023, Louise Weiss building, European Parliament, Strasbourg, France. European Commission President Ursula von der Leyen is delivering the State of the Union address.

MEPs from both the left and right blocs, from the Netherlands, France and Germany, believed that the Commission’s move was politically motivated amid geopolitical tensions caused by the long-lasting Russia-Ukraine conflict and its impacts on the EU. According to them, it was also a trade protectionist move to protect the EU’s own EV sector, which was less competitive than that of China.

Reportedly, France supported the Commission’s move, while export-oriented auto giant Germany opposed it. However, despite different opinions within the bloc, the Commission launched the investigation later and disclosed the provisional conclusion on June 12, 2024, threatening to impose anti-subsidy extra duties of up to 38.1 percent on made-in-China EVs exporting to the EU.

I strongly believe that the commission imposing provisional extra duties on Chinese EVs is a politically motivated move, as it was initiated by the commission itself without a complaint from industry or an EU member state, which is the usual process. The notion of overproduction is a misconception; instead, the Chinese EV sector faces underproduction in the context of decarbonization, transport electrification and the country’s urbanization. Also, the commission has previously exhibited double standards regarding subsidies. Let’s not forget that Airbus received substantial subsidies from the EU, and the bloc’s Common Agricultural Policy (CAP) accounts for about 20 percent of the EU’s total annual budget.

By the way, days before von der Leyen’s announcement in September, my colleagues and I published a series of multi-media reports about Chinese EVs in Europe. In cities like Barcelona, Berlin, Copenhagen, Oslo, Stockholm and others, we observed that while Chinese homegrown brand EVs hold only a small portion of the market share, they are widely acclaimed for their advanced battery technologies, versatility and comfort.

In Rotterdam, we met a man who owed a BYD Atto 3 and had created a BYD customer club on Facebook. the club had amassed over 300 members, all of whom provided extremely positive feedback!

It was my first time having a close look at an EV, which was a BYD Han sedan. In the Netherlands, it's priced at about 70,000 euros, whereas the same model in China costs around 250,000 yuan (about 32,000 euros)!

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4. China's inbound tourism

During his visit in New Zealand, Li Qiang also announced a plan to add the Oceanian country to China's unilateral visa-free list. This decision is in line with China's ongoing efforts to facilitate entry for foreign visitors, especially for tourism.

The recent surge of international tourists in China has garnered worldwide interest, leading to inquiries about the precise number of inbound tourists amid a panoply of favorable policies and a flood of YouTube videos showcasing the diverse aspects of China.

We've selected some highlights from an article, titled “穿透迷雾！ 谈谈中国入境游的真实热度” Penetrating the fog! Let's talk about the true popularity of inbound tourism in China dated June 11, which was posted on an independent WeChat blog written by 知酷文旅 (Zhi Cool) operated by a homonymous cultural and tourism company hoping to help you learn more about China's inbound tourism market.

Although the overseas public's favorability towards tourism in China has greatly increased, the inbound tourism data for Beijing, Shanghai, and other cities during the first four months of 2024 falls short of 70% compared to the same period in 2019.

The reasons behind this phenomenon are, on one hand, a significant decline can be attributed to the decrease in business and corporate travelers visiting Beijing, Shanghai, and other destinations due to the impact of the economic environment. On the other hand, there has been a rapid growth in independent travel, which is often shared and recommended by overseas bloggers. However, the recovery of the traditional group tour market has been slower, leading to the current data not matching the figures from the same period in 2019.

The two factors Zhi Cool mentioned are important for China-watchers who are trying to track the dynamics of China's inbound tourism to gauge the country's attraction and service for international travelers.

Additionally, the effectiveness of promotional strategies and delayed overseas marketing of Chinese tourist practitioners have deeply affected the appeal of Chinese tourist attractions among international travelers. Moreover, the outflow of talent, for instance, the shortage of tour guides who can speak fluent foreign languages, has also exerted an impact on the resurgence of inbound tourism.

In response to the absence of a nationwide number of inbound tourists, the article also gives some good guesses:

Shanghai and Beijing are preferred cities and tourist hubs for foreigners traveling in China. The inbound tourism data for Shanghai and Beijing is compiled by the public security authorities based on the accommodation registration information of foreigners, and these data provide relatively accurate and reliable information. It is worth noting that there may be instances where individuals with business purposes hold tourist visas, but this phenomenon is common worldwide, as other countries also have international visitors with business intentions.

Therefore, in the absence of official disclosure of tourism data for foreign visitors to China, the inbound tourism reception data and overnight stay data for cities like Shanghai and Beijing are the most indicative of the overall situation of inbound tourism in the country.

We can also shift our focus to other cities in China. For example, if taking Zhangjiajie, a renowned tourist city and one of China's most popular scenic spots in Hunan province, as an example, the number of inbound tourists received can provide a closer review of the current situation. According to statistics, in the first quarter of 2024, Zhangjiajie welcomed 260,000 inbound tourists, marking a significant growth of 44.4 percent compared to the same period in 2019.

Zhangjiajie, a renowned tourist city and one of China's most popular scenic spots in Hunan province

It is a basic fact that China is not leading in terms of inbound tourism (excluding data of overseas tourists from regions like Hong Kong, Macau, and Taiwan) on the international stage. There are several reasons behind this, one of which is that the country did not prioritize inbound tourism in the past. China is not primarily known as a tourist destination internationally, and its economic development does not heavily rely on international tourism or tourism-related foreign exchange.

However, since the second half of 2023, the country has elevated its efforts in promoting inbound tourism to a new level. The aim is to use tourism as a means to expand "people-to-people diplomacy," counter the negative portrayal of China by Western media and politicians, and allow people from around the world to personally experience a prosperous, vibrant, and beautiful China. This is also an effort to counter the Western-dominated global supply chain "decoupling" and de-Sinicization agenda.

Today, foreign bloggers are increasingly commending tourism in China, demonstrating the significant impact of the country's efforts in this area. The overall situation is progressing in the direction desired by the nation.

Interestingly, Zhi Cool highlights China's historical lack of emphasis on inbound tourism. Nevertheless, boasting a rich culture and history spanning over 5,000 years and an impressive tally of 57 World Heritage sites – second only to one other nation – China holds considerable promise in enticing a greater influx of global tourists.

When it comes to ticket reservations at popular tourist attractions, it is appropriate to prioritize foreign visitors. This is not a form of "discrimination" or driven by ethnic sentiment; rather, it is simply a way to extend a warm and friendly welcome to guests who have traveled from afar.

Zhi Cool makes a very good point not to escalate preferential treatment towards foreign tourists into national sentiment.

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5. Stabbing incident in Jilin

Suspect in stabbing incident apprehended -- China Daily

A preliminary investigation revealed that Cui had collided with a foreign national while walking in the park. He then used a knife to attack the foreign national, as well as three other foreigners who were with the initial victim.

A Chinese tourist who attempted to intervene was also injured.

I would be keen to interview the Chinese tourist or invite him to my podcast to discuss the incident. Meanwhile, many Chinese netizens are closely following the media coverage of this event. Iowa Public Radio recently interviewed David Zabner, one of the victims who is currently recovering in a hospital in China.

Cornell College instructor recounts surviving stabbing in China -- Iowa Public Radio

David Zabner was descending a mountain when he heard a scream.

“I turned around to find a man brandishing a knife at me. I didn’t immediately realize what was happening. I thought my coworkers had been pushed, and he, for some reason was trying to push me,” Zabner told IPR News from his hospital room. “And then I looked down at my shoulder and realized, 'I’m bleeding. I’ve been stabbed.'”

Earlier that morning, Zabner and three colleagues from Cornell College had planned to see the Dragon Boat Festival on the Songhua River. But they found the banks too crowded to see the water. They opted instead to go to nearby Beishan Park.

“It’s a beautiful, green, mountainous park in the middle of Jilin. And it has some Buddhist temples and nice walking trails. It’s got a great view of the city from the top,” he said.

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According to China’s foreign ministry, a man with the surname Cui was walking by Zabner’s group as they descended the mountain.

“Police told us that he was unemployed and down on his luck, and that somebody in our group bumped into the man,” Zabner said. “And he decided to respond in the way he responded."

China's Foreign Ministry has described the stabbing as an isolated incident, with further investigations currently ongoing. I believe this to be a random occurrence. Sometimes, unforeseen events simply happen. However, I hope for a swift and full recovery for all the victims.

Some comments from other substack newsletters:

Bill Bishop with Sinocism: U.S. Ambassador to the PRC Burns and US National Security Advisor Sullivan both tweeted statements about the attack. I wish they had also mentioned the PRC citizen who tried to intervene in the attack and was also wounded.

Yaling Jiang with Following the Yuan: Long and emotional take: There are many ways to interpret this but my least favorite is statement like “China is a dangerous place, don’t go there,” especially when that comes from China hawks who use this unusual case to strengthen their public image.

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