Connect with us
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});

China

‘Gaituguiliu’ causes division in Hong Kong

Published

on

Protesters carry umbrellas as they attend a demonstration in support of the city-wide strike and to call for democratic reforms in Hong Kong, China, 5 August 2019 (Photo: Reuters/Kim Kyung-Hoon).

Author: Baogang He, Deakin University

Millions of people have recently marched through the streets of Hong Kong in protest against proposed amendments to the city’s Extradition Law. The upheaval has attracted significant analysis, but Hong Kong–mainland relations could perhaps be better understood from the perspective of ‘Gaituguiliu’.

Gaituguiliu refers to the traditional Chinese policy where the central government replaces the local rulers’ inheritance system with a central direct appointment system — a Chinese model of integration and grand union. This was facilitated through the use of Confucian culture and education. Gaituguiliu was practiced across many dynasties — in particular during the Ming and Qing eras — and can be seen as a ‘gene’ of Chinese civilisation. Variants of the policy can be seen today in Hong Kong, Tibet, Xinjiang and Inner Mongolia.

Hong Kong is theoretically governed under the ‘one country, two systems’ principle. But Beijing has adopted the ‘Grand Union’ policy and has asserted its ‘overall jurisdiction’ — comprehensive power to manage and rule Hong Kong as per the official White Paper of June 2014. For over 22 years, Gaituguiliu has eroded the ideal of ‘one country, two systems’.

From the perspective of Gaituguiliu, Beijing’s resistance and opposition to direct elections is understandable. Gaituguiliu believers are sceptical about democratic autonomy and believe that China needs a new version of Gaituguiliu to accelerate the process of integration towards a single administrative system where the central government appoints local governors. Conversely, many Hong Kongers demand universal suffrage and believe in the value of democratic autonomy.

Gaituguiliu’s influence can be seen in numerous areas. For example, Beijing has set up various government institutions and agencies in Hong Kong and has increasing power and influence. The Liaison Office of the Central People’s Government in Hong Kong is heavily involved in the management of Hong Kong affairs. Even the Chinese Communist Party has established party branches and recruits members there.

China promotes patriotic education and Mandarin Chinese as requirements of Gaituguiliu. The five interpretations of the ‘Hong Kong Basic Law’ issued by the National People’s Congress Standing Committee have ensured unity within a diversified legal system. China’s military garrison in Hong Kong also guarantees a military base enforcing Gaituguiliu. The rise of China’s economy, especially following the recent construction of the Greater Bay Area region, integrates Hong Kong into the mainland economy.

At the social level, Beijing controls the entry quota of 150 mainland settlers into Hong Kong on a daily basis, with the number of mainland immigrants over the past 20 years having reached one million people — resulting in so-called ‘mainlandisation’.

Many Hong Kongers are disappointed and frustrated in the face of a continued intensification of Gaituguiliu and are defending their way of life and demanding democratic autonomy. In 2014, the 79-day Occupy Central Movement demanded the direct election of the chief executive. The election in September 2016 saw six young people without political experience elected as members of the Legislative Council.

Some of the younger generation that grew up in the period following Hong Kong’s return to China even advocate independence. From the democratic perspective, some Hong Kong youths do not see any hope of democracy under China’s authoritarianism.

The emergence and development of the Hong Kong independence movement is further accelerating the pace of China’s Gaituguiliu policy. Beijing is tightening its control over Hong Kong’s independence movement by elevating the ‘Grand Union’ as a core national interest and national security issue. The central government also intensified its Gaituguiliu process in response. The 2019 revision of the Extradition Law represents the legal process of expediting Gaituguiliu that inspired large-scale local protests.

The 2019 marches opposing amendments to the Extradition Law reflects the determination of the local movement to defend the autonomy of Hong Kong’s legal system and prevent Hong Kong from becoming another mainland city. One special characteristic of the demonstrations is the protest against symbols of China — the China–Hong Kong High Speed railway station and the Liaison Office of the Central People’s Government.

Among the Hong Kong local movement, there is a belief that new immigrants from…

Read the rest of this article on East Asia Forum

Continue Reading

China

A Timeline of EU-China Relations Post-2024 European Elections

Published

on

EU-China relations are crucial in global business, with geopolitical shifts and technological competition shaping the dynamic. The recent EU Parliament elections have brought a political realignment, leading to a more assertive stance towards China. Strategic discussions and new working groups aim to navigate the evolving relationship.


EU-China relations play a crucial role in the global business landscape. The current circumstances, marked by geopolitical shifts, economic interdependence, and technological competition, contribute to the volatility and frequent adjustments in this relationship. In this timeline, we aim to capture key milestones and developments that shape EU-China ties.

The European Parliament elections, held between June 6 and June 9, 2024, have ushered in a new era for EU-China relations. The election results revealed a significant shift in the political landscape, with centrist parties losing ground to far-right groups like the Identity and Democracy (ID) and the European Conservatives and Reformists (ECR). This political realignment is poised to influence the EU’s approach to China, introducing more varied and potentially conflicting perspectives on policy.

Traditionally, the EU has maintained a cautious stance toward China, epitomized by the 2019 publication of the EU-China Strategic Outlook, which framed the relationship as one of “partnership, competition, and systemic rivalry.” This tripartite approach was later reiterated in the European Council’s Conclusion on China. However, the narrative toward China has taken a decisive turn with European Commission President Ursula von der Leyen’s speech delivered on March 30, 2023. This speech marked a shift towards a more assertive stance, further strengthened by the release of the European Economic Security Strategy in June of the same year.

In the aftermath of the 2024 elections, the increased fragmentation within the EU Parliament suggests a more complex and uncertain path to forming a cohesive strategy toward China. This uncertainty poses challenges for European companies conducting business with China, as well as Chinese and global businesses operating in Europe, who must now navigate a more unpredictable regulatory environment.

Amid these developments, the Chinese government is keenly observing the evolving dynamics within the EU. China aims to cultivate allies within the European bloc, and this intent was evident during President Xi Jinping’s recent European tour, which included official visits to France, Serbia, and Hungary. During his visit, President Xi reiterated the EU’s significance as China’s major trading partner.

As the new EU Parliament begins its work, strategic discussions have been underway to address key issues, including the EU’s technological and strategic autonomy. To manage different views and promote collaboration on shared interests with China, new cross-regional working groups have been established. These groups are focusing on sectors such as agriculture, aviation, artificial intelligence, energy, and finance, aiming to enhance resilience and foster dialogue.

In this article, we present a timeline of EU-China relations following the EU Parliament elections, reflecting the complexities and opportunities presented by this new chapter in bilateral relations.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

Continue Reading

China

Economic Update: Consumption and Trade in China See Strong Recovery Despite Decrease in Industrial Output by May 2024

Published

on

Industrial output growth in China has slowed, with robust performance in some manufacturing sectors but an increase in consumption driven by services, retail sales, and imports. Despite a slowdown, equipment manufacturing has been crucial in stabilizing overall industrial growth. Certain high-tech and electronic equipment manufacturing sectors have shown strong performance, while the automobile manufacturing sector has decelerated due to falling domestic demand.


The data indicates a slowdown in industrial output growth, despite some manufacturing sectors still showing robust performance. In contrast, consumption is on the rise, driven by growth in services, retail sales, and imports. The uptick in these areas suggests a strengthening of domestic demand, spurred by a stabilizing global economic situation and the boost from the Labor Day Holiday at the beginning of May.

China’s foreign trade also continued to show marked improvement, reflecting the country’s strong export capabilities and increasing imports.

Year-on-year growth in China’s industrial sector slowed in May from the previous month but remained relatively strong. Total industrial value-added output grew by 5.6 percent year-on-year in May, a month-on-month increase of 0.3 percent but a deceleration from 6.7 percent year-on-year growth recorded in April. Value-added output of the manufacturing industry grew 6 percent year-on-year, a deceleration from the 7.5 percent year-on-year in April.

According to NBS spokesperson Liu Aihua, equipment manufacturing played a crucial role in stabilizing overall industrial growth. The sector’s added value increased by 7.5 percent from the previous year, contributing 2.6 percentage points to the growth of all industries above the designated size and accounting for 45.7 percent of the total growth. Within this sector:

Certain high-tech and electronic equipment manufacturing sectors exhibited particularly strong performance:

However, the automobile manufacturing sector decelerated significantly from a 16.3 percent year-on-year jump in April to 7.6 percent year-on-year growth in May, possibly due to falling domestic demand.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

Continue Reading

China

Outlook for China’s Wine Market: Current Trends and Opportunities

Published

on

China’s wine market faces challenges like declining consumption and imports, but remains resilient. Adapting to consumer preferences, focusing on quality and sustainability, and using digital platforms for sales are key strategies. Despite setbacks, the market is promising for foreign producers.


Despite challenges such as declining consumption and import figures, China’s wine market remains resilient and promising. Strategic adaptation to evolving consumer preferences, emphasis on quality and sustainability, and leveraging digital platforms for sales are pivotal strategies for success in this dynamic and competitive landscape.

In recent years, China’s wine market has faced significant challenges marked by declines in key metrics such as consumption, imports, and domestic production. These difficulties were further compounded by the disruptions brought about by the COVID-19 pandemic. Despite these setbacks, the market retains its allure, presenting opportunities for foreign wine producers and exporters who are willing to adapt and strategically engage.

As consumer preferences evolve and government policies increasingly emphasize quality and sustainability, understanding these complexities becomes crucial for stakeholders navigating China’s evolving wine landscape. By staying attuned to shifting trends and regulatory developments, stakeholders can position themselves effectively to capitalize on the market’s enduring potential.

The wine sector in China has experienced dramatic shifts over the last two decades, initially reflecting rapid growth and then gradually declining. In the early 2000s, China emerged as a lucrative market for global wineries seeking expansion due to soaring wine imports driven by rising consumer wealth and the perception of wine as a symbol of sophistication. However, per capita consumption peaked around 2012, and imports have since plateaued, with recent years showing significant market contraction. The COVID-19 pandemic exacerbated these challenges, particularly affecting wine sales due to its association with social gatherings, which were restricted during lockdowns.

Following this trend, in 2023, China saw a significant decline in wine consumption, with a 24.7 percent decrease compared to 2022. According to the International Organization of Vine and Wine (OIV), China’s wine consumption has been falling since 2018, averaging a loss of 2 million hectoliters annually.

Nevertheless, China remains the ninth-largest wine-consuming nation worldwide.

Looking forward to 2024, China’s wine market is poised for dynamic activity, delineated primarily by consumption settings: at-home and out-of-home. According to Statista, revenue from wine sales in supermarkets and convenience stores (at-home) is forecast to reach US$9.7 billion. In contrast, revenue generated from wine consumed in restaurants and bars (out-of-home) is expected to be substantially higher, totaling US$17.2 billion. This projects the total revenue from the wine market to reach US$26.8 billion by the end of 2024.

This article is republished from China Briefing. Read the rest of the original article.

China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.

Continue Reading