Chindia Alert: You’ll be Living in their World Very Soon
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The richest man in China opened his own Twitter account last month, in the middle of the Covid-19 outbreak. So far, every one of his posts has been devoted to his unrivalled campaign to deliver medical supplies to almost every country around the world.
“One world, one fight!” Jack Ma enthused in one of his first messages. “Together, we can do this!” he cheered in another.
The billionaire entrepreneur is the driving force behind a widespread operation to ship medical supplies to more than 150 countries so far, sending face masks and ventilators to many places that have been elbowed out of the global brawl over life-saving equipment.
But Ma’s critics and even some of his supporters aren’t sure what he’s getting himself into. Has this bold venture into global philanthropy unveiled him as the friendly face of China’s Communist Party? Or is he an independent player who is being used by the Party for propaganda purposes? He appears to be following China’s diplomatic rules, particularly when choosing which countries should benefit from his donations, but his growing clout might put him in the crosshairs of the jealous leaders at the top of China’s political pyramid.
Other tech billionaires have pledged more money to fight the effects of the virus – Twitter’s Jack Dorsey is giving $1bn (£0.8bn) to the cause. Candid, a US-based philanthropy watchdog that tracks private charitable donations, puts Alibaba 12th on a list of private Covid-19 donors. But that list doesn’t include shipments of vital supplies, which some countries might consider to be more important than money at this stage in the global outbreak.
The world’s top coronavirus financial donors
How Alibaba compares to the top five. No one else other than the effervescent Ma is capable of dispatching supplies directly to those who need them. Starting in March, the Jack Ma foundation and the related Alibaba foundation began airlifting supplies to Africa, Asia, Europe, Latin America and even to politically sensitive areas including Iran, Israel, Russia and the US.
Ma has also donated millions to coronavirus vaccine research and a handbook of medical expertise from doctors in his native Zhejiang province has been translated from Chinese into 16 languages. But it’s the medical shipments that have been making headlines, setting Ma apart.
“He has the ability and the money and the lifting power to get a Chinese supply plane out of Hangzhou to land in Addis Ababa, or wherever it needs to go,” explains Ma’s biographer, Duncan Clark. “This is logistics; this is what his company, his people and his province are all about.”
A friendly face
Jack Ma is famous for being the charismatic English teacher who went on to create China’s biggest technology company. Alibaba is now known as the “Amazon of the East”. Ma started the company inside his tiny apartment in the Chinese coastal city of Hangzhou, in the centre of China’s factory belt, back in 1999. Alibaba has since grown to become one of the dominant players in the world’s second largest economy, with key stakes in China’s online, banking and entertainment worlds. Ma himself is worth more than $40bn.
Officially, he stepped down as Alibaba’s chairman in 2018. He said he was going to focus on philanthropy. But Ma retained a permanent seat on Alibaba’s board. Coupled with his wealth and fame, he remains one of the most powerful men in China.
Media caption The BBC’s Secunder Kermani and Anne Soy compare how prepared Asian and African countries are
It appears that Ma’s donations are following Party guidelines: there is no evidence that any of the Jack Ma and Alibaba Foundation donations have gone to countries that have formal ties with Taiwan, China’s neighbour and diplomatic rival. Ma announced on Twitter that he was donating to 22 countries in Latin America. States that side with Taiwan but who have also called for medical supplies – from Honduras to Haiti – are among the few dozen countries that do not appear to be on the list of 150 countries. The foundations repeatedly refused to provide a detailed list of countries that have received donations, explaining that “at this moment in time, we are not sharing this level of detail”.
However, the donations that have been delivered have certainly generated a lot of goodwill. With the exception of problematic deliveries to Cuba and Eritrea, all of the foundations’ shipments dispatched from China appear to have been gratefully received. That success is giving Ma even more positive attention than usual. China’s state media has been mentioning Ma almost as often as the country’s autocratic leader, Xi Jinping.
AFP
So far…
Over 150 countries have received donations from Jack Ma, including about:
120.4mface masks
4,105,000testing kits
3,704ventilators
Source: Alizila
It’s an uncomfortable comparison. As Ma soaks up praise, Xi faces persistent questions about how he handled the early stages of the virus and where, exactly, the outbreak began.
The Chinese government has dispatched medical teams and donations of supplies to a large number of hard-hit countries, particularly in Europe and South-East Asia.
However, those efforts have sometimes fallen flat. China’s been accused of sending faulty supplies to several countries. In some cases, the tests it sent were being misused but in others, low-quality supplies went unused and the donations backfired.
In contrast, Jack Ma’s shipments have only boosted his reputation.
“It’s fair to say that Ma’s donation was universally celebrated across Africa,” says Eric Olander, managing editor of the China Africa Project website and podcast. Ma pledged to visit all countries in Africa and has been a frequent visitor since his retirement.
“What happens to the materials once they land in a country is up to the host government, so any complaints about how Nigeria’s materials were distributed are indeed a domestic Nigerian issue,” Olander adds. “But with respect to the donation itself, the Rwandan leader, Paul Kagame, called it a “shot in the arm” and pretty much everyone saw it for what it was which was: delivering badly-needed materials to a region of the world that nobody else is either willing or capable of helping at that scale.”
Walking the tightrope
But is Ma risking a backlash from Beijing? Xi Jinping isn’t known as someone who likes to share the spotlight and his government has certainly targeted famous faces before. In recent years, the country’s top actress, a celebrated news anchor and several other billionaire entrepreneurs have all “disappeared” for long periods. Some, including the news anchor, end up serving prison sentences. Others re-emerge from detention, chastened and pledging their allegiance to the Party.
“There’s a rumour that [Jack Ma] stepped down in 2018 from being the chairman of the Alibaba Group because he was seen as a homegrown entrepreneur whose popularity would eclipse that of the Communist Party,” explains Ashley Feng, research associate at the Centre for New American Security in Washington DC. Indeed, Ma surprised many when he suddenly announced his retirement in 2018. He has denied persistent rumours that Beijing forced him out of his position.
Image copyright GETTY IMAGESImage caption Ma discussed trade with then-President-elect Donald Trump in January 2017
Duncan Clark, Ma’s biographer, is also aware of reports that Ma was nudged away from Alibaba following a key incident in January 2017. The Chinese billionaire met with then-President-elect Donald Trump in Trump Tower, ostensibly to discuss Sino-US trade. The Chinese president didn’t meet with Trump until months later.
“There was a lot of speculation of time that Jack Ma had moved too fast,” Clark says. “So, I think there’s lessons learned from both sides on the need to try to coordinate.”
“Jack Ma represents a sort of entrepreneurial soft power,” Clark adds. “That also creates challenges though, because the government is quite jealous or nervous of non-Party actors taking that kind of role.”
Technically, Ma isn’t a Communist outsider: China’s wealthiest capitalist has actually been a member of the Communist Party since the 1980s, when he was a university student.
But Ma’s always had a tricky relationship with the Party, famously saying that Alibaba’s attitude towards the Party was to “be in love with it but not to marry it”.
Even if Ma and the foundations connected to him are making decisions without Beijing’s advance blessing, the Chinese government has certainly done what it can to capitalise on Ma’s generosity. Chinese ambassadors are frequently on hand at airport ceremonies to receive the medical supplies shipped over by Ma, from Sierra Leone to Cambodia.
China has also used Ma’s largesse in its critiques of the United States. “The State Department said Taiwan is a true friend as it donated 2 million masks,” the Chinese Foreign Ministry tweeted in early April. “Wonder if @StateDept has any comment on Jack Ma’s donation of 1 million masks and 500k testing kits as well as Chinese companies’ and provinces’ assistance?”
Perhaps Ma can rise above what’s happened to so many others who ran afoul of the Party. China might just need a popular global Chinese figure so much that Ma has done what no one else can: make himself indispensable.
“Here’s the one key takeaway from all that happened with Jack Ma and Africa: he said he would do something and it got done,” explains Eric Olander. “That is an incredibly powerful optic in a place where foreigners often come, make big promises and often fail to deliver. So, the huge Covid-19 donation that he did fit within that pattern. He said he would do it and mere weeks later, those masks were in the hands of healthcare workers.”
Image copyright GETTY IMAGESImage caption Ma at an Electronic World Trade Platform event with Ethiopian Prime Minister Abiy Ahmed last year
Duncan Clark argues that Ma already had a seat at China’s high table because of Alibaba’s economic heft. However, his first-name familiarity with world leaders makes him even more valuable to Beijing as China tries to repair its battered image.
“He has demonstrated the ability, with multiple IPOs under his belt, and multiple friendships overseas, to win friends and influence people. He’s the Dale Carnegie of China and that certainly, we’ve seen that that’s irritated some in the Chinese government but now it’s almost an all hands on deck situation,” Clark says.
There’s no doubt that China’s wider reputation is benefiting from the charitable work of Ma and other wealthy Chinese entrepreneurs. Andrew Grabois from Candid, the philanthropic watchdog that’s been measuring global donations in relation to Covid-19, says that the private donations coming from China are impossible to ignore.
“They’re taking a leadership role, the kind of thing that used to be done by the United States,” he says. “The most obvious past example is the response to Ebola, the Ebola outbreak in 2014. The US sent in doctors and everything to West Africa to help contain that virus before it left West Africa.”
Chinese donors are taking on that role with this virus.
“They are projecting soft power beyond their borders, going into areas, providing aid, monetary aid and expertise,” Grabois adds.
So, it’s not the right time for Beijing to stand in Jack Ma’s way.
“You know, this is a major crisis for the world right now,” Duncan Clark concludes. “But obviously, it’s also a crisis for China’s relationship with the rest of the world. So they need anybody who can help dampen down some of these those pressures.”
But trade with partner countries might not be as badly affected as with countries elsewhere in the world, observers say
China’s trade with belt and road countries rose by 3.2 per cent in the January-March period, but second-quarter results will depend on how well they manage to contain the pathogen, academic says
China’s investment in foreign infrastructure as part of its Belt and Road Initiative has been curtailed because of the coronavirus pandemic. Photo: Xinhua
The coronavirus pandemic is set to cause a slump in Chinese investment in its signature
and a dip in trade with partner countries that could take a year to overcome, analysts say.
But the impact of the health crisis on China’s economic relations with nations involved in the ambitious infrastructure development programme might not be as great as on those that are not.
China’s total foreign trade in the first quarter of 2020 fell by 6.4 per cent year on year, according to official figures from Beijing.
Trade with the United States, Europe and Japan all dropped in the period, by 18.3, 10.4 and 8.1 per cent, respectively, the commerce ministry said.
By comparison, China’s trade with belt and road countries increased by 3.2 per cent in the first quarter, although the growth figure was lower than the 10.8 per cent reported for the whole of 2019.
China’s trade with 56 belt and road countries – located across Africa, Asia, Europe and South America – accounts for about 30 per cent of its total annual volume, according to the commerce ministry.
Despite the first-quarter growth, Tong Jiadong, a professor of international trade at Nankai University in Tianjin, said he expected China’s trade with belt and road countries to fall by between 2 and 5 per cent this year.
His predictions are less gloomy than the 13 to 32 per cent contraction in global trade forecast for this year by the World Trade Organisation.
“A drop in [China’s total] first-quarter trade was inevitable but it slowly started to recover as it resumed production, especially with Southeast Asian, Eastern European and Arab countries,” Tong said.
“The second quarter will really depend on how the epidemic is contained in belt and road countries.”
Nick Marro, Hong Kong-based head of global trade at the Economist Intelligence Unit, said he expected China’s total overseas direct investment to fall by about 30 per cent this year, which would be bad news for the belt and road plan.
“This will derive from a combination of growing domestic stress in China, enhanced regulatory scrutiny over Chinese investment in major international markets, and weakened global economic prospects that will naturally depress investment demand,” he said.
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed, while infrastructure projects in Bangladesh, including the Payra coal-fired power plant, have been put on hold.
The development of the Chinese built and operated special economic zone in the Cambodian town of Sihanoukville is reported to have slowed. Photo: AFP
Marro said the reduction of capital and labour from China might complicate other projects for key belt and road partner, like Pakistan, which is home to infrastructure projects worth tens of billions of US dollars, and funded and built in large part by China.
“Pakistan looks concerning, particularly in terms of how we’ve assessed its sovereign and currency risk,” Marro said.
“Public debt is high compared to other emerging markets, while the coronavirus will push the budget deficit to expand to 10 per cent of GDP [gross domestic product] this year.”
Last week, Pakistan asked China for a 10-year extension to the repayment period on US$30 billion worth of loans used to fund the development of infrastructure projects, according to a report by local newspaper Dawn.
China’s overseas investment has been falling steadily from its peak in 2016, mostly as a result of Beijing’s curbs on capital outflows.
Last year, the direct investment by Chinese companies and organisations other than banks in belt and road countries fell 3.8 per cent from 2018 to US$15 billion, with most of the money going to South and Southeast Asian countries, including Singapore, Vietnam, Indonesia and Pakistan.
Tong said the pandemic had made Chinese investors nervous about putting their money in countries where disease control measures were becoming increasingly stringent, but added that the pause in activity would give all parties time to regroup.
“Investment in the second quarter will decline and allow time for the questions to be answered,” he said.
“Past experience along the belt and road has taught many lessons to both China and its partners, and forced them to think calmly about their own interests. The epidemic provides both parties with a good time for this.”
Dr Frans-Paul van der Putten, a senior research fellow at Clingendael Institute in the Netherlands, said China’s post-pandemic strategy for the belt and road in Europe
might include a shift away from investing in high-profile infrastructure projects like ports and airports.
Investors might instead cooperate with transport and logistics providers rather than invest directly, he said.
“Even though in the coming years the amount of money China loans and invests abroad may be lower than in the peak years around 2015-16, I expect it to maintain the belt and road plan as its overall strategic framework for its foreign economic relations,” he said.
Every morning and night for the past four years, businessman Zhong Congrong has been on the streets of Chongqing to stop people dropping their litter
Admired as a welfare champion, the 54-year-old says he has been beaten and insulted for his cause
Zhong Congrong is a familiar figure on the streets of his hometown. Photo: Handout
Zhong Congrong owns three businesses in southwestern China which together are worth more than 100 million yuan (US$14.3 million), but he prefers to risk being labelled as an environment “nut” who wants to clean up Chongqing.
Every morning after breakfast and each evening after supper, the entrepreneur pulls on an orange T-shirt, gets into his Mercedes-Benz SUV and heads downtown. For one or two hours, he walks the streets, picking scraps of rubbish off the road and talking to passers-by about littering.
“It is my mission to change people’s bad habits and to raise their awareness of protecting the environment,” said Zhong, who has been on this mission for four years. It has brought the 54-year-old civic rewards, earned him a bruising or two from people who do not want to listen to his message and it nearly cost him his marriage.
Throughout it all, he has remained a persistent voice for the environment in the city of more than 30 million people and, as some of them have learned, he refuses to give up.
Yang Zuhui (right) has come to admire Zhong Congrong’s dedication to his litter picking mission, but she fears for her husband’s safety. Photo: Weibo
On mainland China, cities have banned littering and some hit offenders with fines as high as 200 yuan. However, the rules are rarely obeyed and feebly enforced, and while there are plenty of dustbins in public places, litter is still a nuisance.
Zhong said his mission started in 2015 after he met a woman in her 70s in Sanya, the southern coastal city on the South China Sea island of Hainan. He was struck by how dedicated she and her husband were when they went litter picking each day.
“They are retired professors from a prestigious university in Beijing,” Zhong said. “I chatted a lot with her and I asked her, ‘What’s the point of collecting rubbish every day? You clean up the beach today, but tomorrow new rubbish appears’.”
The way to solve the problem was to teach people to not litter, she told him, but she said she “dared not” try to do that. Zhong said that encounter gave him his purpose and he would dare to change attitudes.
Shanghai recycling scheme slips up on 9,000 tonnes of waste
Back home, Zhong watched and learned – concluding that customers of restaurants and fast food businesses tended to be the people who dropped rubbish most.
“Perhaps it’s because when people dine in restaurants, they throw their rubbish wherever they like. Going outside, they keep on doing it,” he said.
“People in shopping malls are generally more civilised.”
Zhong says his mission began in 2015 during a holiday on the island of Hainan. Photo: Dickson Lee
While on patrol, Zhong makes himself easy to see in an orange T-shirt that bears his clean-up message. His tools include a metal pincer for picking up tissue paper, plastic bags, drinks bottles, nappies and other everyday detritus and putting it into bins.
He also carries a voice recorder that sends out an appeal to restaurant customers: “To protect our environment and not to affect our kids’ healthy growing up, dear friends, please don’t throw rubbish.”
Can China sort its household waste recycling problem by 2020?
Zhong said that at first he felt afraid and self-conscious when he stood in front of a crowd of diners with his green gospel. But time and practise taught him he had almost nothing to fear, he said.
One of the bigger challenges is getting through to the many people who do not listen to him and refuse to dispose of their rubbish the right way.
“It’s normal that our society has various kinds of people and I need to face this reality,” Zhong said. “I was prepared in my mind that I would be called ‘nut’ since this is such an arduous but fruitless cause.”
He tackles the problem with his usual persistence, so argument and persuasion is all part of the job. When Zhong insists the rule breakers take their rubbish and bin it, some ignore him and others walk away – but he is ready with an answer.
“I tell them, ‘If you don’t pick it up, I guarantee that you will lose face today. I will let passers-by see and hear what a humiliating thing you have done. Everybody will then condemn you and you will be embarrassed’,” he said.
When people tell him what they do is none of his business, Zhong replies that what he is doing is in the public interest.
Sometimes there is a heavier price. Zhong said he once watched several men in their 20s throw rubbish onto the road from their car. He set off after them in his SUV. He waylaid them and asked them to clean up after themselves – the men refused, swore at him and beat him up. Their day ended in a police station.
Zhong said he hoped his work would bring “positive energy” to the employees of his vehicle components and packaging materials companies, but his mission was not about business prestige.
However, last year, he was named as one of the top 10 public welfare figures of Chongqing by the municipal government, while his family was honoured as a Chinese good family by the semi-governmental All-China Women’s Federation, a women’s rights organisation established in 1949.
Street cleaner who found US$22,000 in rubbish refuses to accept a reward
There were trials for Zhong closer to home – his wife, Yang Zuhui, did not support his mission at first and threatened to divorce him.
“It’s OK that you picked up trash on the street and you were just another cleaner there,” she told him in an interview with Hunan Television in 2017. “But what worried me was that you tried to persuade others – physical violence [against him] was inevitable.”
She also said: “My husband is not very tall and, on many occasions, he was at a disadvantage and got beaten up. I am worried about his personal safety.”
Zhong impressed his daughter’s schoolfriends with an inspiring speech. Photo: Weibo
But two years ago, their 10-year-old daughter helped change Yang’s attitude towards her husband’s mission after a school outing.
After lunch that day, Zhong gave the adults and children who had left rubbish behind one of his lectures.
His daughter, who was embarrassed by Zhong’s speech, came to appreciate him when classmates told her: “Your father is awesome. He is like a hero who protects the Earth.”
Yang was won over because she knew her husband was a determined man and once he decided on a course of action would not change his mind.
Their son – who is in his 20s and has returned to Chongqing after studying in France – always stands by his father, Zhong said.
“My son told me that environmental voluntary work normal abroad and it is respected,” he said.
Going out to collect rubbish has become part of Zhong’s life, he said.
“In the evening, if I stay at home, my wife and daughter will ask me ‘Why don’t you go to pick up rubbish?’”
He said it was important to go litter picking every day because the more he did it the more people he could influence.
“By breaking the littering habit, Chinese people can stand tall when they travel abroad,” Zhong said.
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
Image copyright GETTY IMAGES
CHINDIA ALERT: You'll be living in their world, very soon 