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Chinese groups calling for more ‘fighting spirit’ are getting the upper hand on those who favour calm and cooperation, government adviser says
From Hong Kong to Covid-19, trade to the South China Sea, Beijing and Washington are clashing on a growing number of fronts and in an increasingly aggressive way
Efforts to promote dialogue and cooperation between the US and China are failing, observers say. Photo: AFP
Moderates who favour dialogue and cooperation as a way to resolve China’s disputes with the United States are losing ground to hardline groups bent on taking the fight to Washington, according to political insiders and observers.
“There are two camps in China,” said a former state official who now serves as a government adviser and asked not to be named.
“One is stressing the combat spirit, the other is trying to relieve tensions. And the former has the upper hand.”
Relations between China and the US are under intense pressure. After Beijing moved to introduce a national security law for Hong Kong, US President Donald Trump said on Friday that Washington would begin eliminating the special policy exemptions it grants the city, as it no longer considers it autonomous from mainland China.
Beijing’s decision to enact a national security law for Hong Kong was met with anger from the US and other Western countries. Photo: Sam Tsang
The two nations have also clashed over trade, Xinjiang, Taiwan and the South China Sea, with the US passing several acts denouncing Beijing and sanctioning Chinese officials.
China has also experienced turbulence in its relations with other countries, including Australia and members of the European Union, mostly related to the Covid-19 pandemic
and Beijing’s efforts to position itself as a leader in the fight against the disease with its policy of “mask diplomacy”.
After Canberra appealed for an independent investigation to be carried out to determine the origins of the coronavirus, Beijing responded by imposing tariffs on imports of Australian barley, showing it is prepared to do more than just trade insults and accusations with its adversaries.
Pang Zhongying, a professor of international relations at Ocean University of China in Qingdao, said there was a worrying trend in China’s relations with other nations.
“We need political and diplomatic means to resolve the challenges we are facing, but … diplomatic methods have become undiplomatic,” he said.
“There are some who believe that problems can be solved through tough gestures, but this will never work. Without diplomacy, problems become confrontations.”
said during his annual press conference on the sidelines of the National People’s Congress last weekend that China and the United States must work together to prevent a new Cold War.
His words were echoed by Chinese Premier Li Keqiang, who said during a press conference after the closure of the legislative session on Thursday that the many challenges facing the China-US relations could only be resolved through cooperation.
However, the government adviser said there was often quite a chasm between what China’s leaders said and what happened in reality.
“Even though we say we do not want a Cold War, what is happening at the working level seems to be different.” he said. “The implementation of policies is not properly coordinated and often chaotic.”
Tensions between China and the US have been in a poor state since the start of a trade war almost two years ago. After multiple rounds of negotiations, the sides in January signed a phase one deal, but the positivity that created was short-lived.
In February, Beijing expelled three reporters from The Wall Street Journal over an article it deemed racist, while Washington has ramped up its military activity in the South China Sea and Taiwan Strait, and threatened to revoke the visas of Chinese students studying science and technology in the US over concerns they might be engaged in espionage.
Beijing has also used its state media and army of “Wolf Warrior” diplomats to promote its narrative, though many Chinese scholars and foreign policy advisers have said the latter’s nationalistic fervour has done more harm than good and appealed to Beijing to adopt a more conciliatory tone.
However, Hu Xijin, editor-in-chief of Chinese tabloid Global Times, said China had no option but to stare down the US, which regarded the world’s most populous nation as its main rival.
“Being contained by the US is too high a price for China to pay,” he said. “I think the best thing people can do is forget the old days of China-US ties”.
Jin Canrong, a professor of international relations at Renmin University in Beijing, wrote in a recent newspaper article that Beijing’s actions – notably enacting a national security law for Hong Kong – showed it was uncompromising and ready to stand its ground against the US.
Wu Xinbo, dean of international studies at Fudan University in Shanghai, agreed, saying relations between the two countries were likely to worsen in the run-up to the US presidential election in November and that Beijing should be prepared for a fight.
But Adam Ni, director of China Policy Centre, a think tank in Canberra, said the issue was not that the moderate camp had been sidelined, but rather Beijing’s perception of the US had changed.
“Beijing has woken up to the idea that America’s tough policy on China will continue and it is expecting an escalation of the tensions,” he said.
“The centre of gravity in terms of Beijing’s perception of the US has shifted, in the same way the US perception of China has shifted towards a more negative image”.
Beijing was simply responding in kind to the hardline, assertive manner of the US, he said.
BEIJING (Reuters) – Tang Yue, a 27-year-old teacher from the city of Guilin in southwest China, steam-presses a blue dress and takes dozens of photographs before picking one to clinch her 200th online sale.
For a growing number of Chinese like Tang, hit by job losses, furloughs and salary cuts, the consumer economy has begun to spin in reverse. They are no longer buying – they are selling.
Instead of emerging from the coronavirus epidemic and returning to the shopping habits that helped drive the world’s second-largest economy, many young people are offloading possessions and embracing a new-found ethic for hard times: less is more.
With Tang’s monthly salary of about 7,000 yuan ($988), the self-described shopaholic said she has bought everything from Chanel lipsticks to Apple’s (AAPL.O) latest iPad in the past three years.
But the adrenaline rush that comes with binge-shopping is gone, said Tang, whose wages have been slashed with the suspension of all the classes on tourism management she usually teaches.
“The coronavirus outbreak was a wake-up call,” she said. “When I saw the collapse of so many industries, I realised I had no financial buffer should something unfortunate happen to me.”
There is no guarantee that the nascent minimalist trend will continue once the coronavirus crisis is fully over, but if it does, it could seriously damage China’s consumer sector and hurt thousands of businesses from big retailers to street-corner restaurants, gyms and beauty salons.
To be sure, there are signs that pent-up demand will drive a rush of spending as authorities reopen malls, leisure venues and tourist spots. In South Korea, the first major economy outside of China to be hit by the virus, people thronged malls this weekend to go “revenge shopping” to make up for time lost in lockdown.,
There are some signs that a similar trend will take hold in China, where some upscale malls are starting to get busy, although luxury firm Kering SA (PRTP.PA) – which owns Gucci, Balenciaga and other fashion brands – has said it is hard to predict how or when sales in China might come back.
A recent McKinsey & Co survey showed that between 20% and 30% of respondents in China said they would continue to be cautious, either consuming slightly less or, in a few cases, a lot less.
“The lockdown provided consumers with a lot of time and reasons to reflect and consider what is important to them,” said Mark Tanner, managing director at Shanghai-based research and marketing consultancy China Skinny.
“With much more of their days spent in their homes, consumers also have more time and reasons to sort through things they don’t feel they need – so they’re not living around clutter that is common in many apartments.”
#DITCHYOURSTUFF
Tang made a spreadsheet to keep track of her nearly 200 cosmetic products and hundreds of pieces of clothing. She then marked a few essentials in red that she wanted to keep. In the past two months, she has sold items worth nearly 5,000 yuan on second-hand marketplaces online.
Bargain-hunting online has become a new habit for some Chinese as the stigma that once hung over second-hand goods has begun to fade.
Idle Fish, China’s biggest online site for used goods, hit a record daily transaction volume in March, its parent company Alibaba (BABA.N) told Reuters.
Government researchers predict that transactions for used goods in China may top 1 trillion yuan ($141 billion) this year.
Posts with the hashtag #ditchyourstuff have trended on Chinese social media in recent weeks, garnering more than 140 million views.
Jiang Zhuoyue, 31, who works as an accountant at a traditional Chinese medicine company in Beijing – one of the few industries that may benefit from the health crisis – has also decided to turn to a simpler life.
“I used to shop too much and could be easily lured by discounts,” said Jiang. “One time Sephora offered 20% off for all goods, I then bought a lot of cosmetics because I feel I’m losing money if I don’t.”
Jiang, the mother of a 9-month-old baby, said she recently sold nearly 50 pieces of used clothing as the lockdown gave her the opportunity to clear things out. “It also offered me a chance to rethink what’s essential to me, and the importance of doing financial planning,” she said.
Eleven Li, a 23-year-old flight attendant, said she used to spend her money on all manner of celebrity-endorsed facial masks, snacks, concert tickets and social media activity, but now has no way to fund her spending.
“I just found a new job late last year, then COVID-19 came along, and I haven’t been able to fly once since I joined, and I’ve gotten no salary at all,” said Li, who said she was trying to sell her Kindle.
Some are even selling their pets, as they consider leaving big cities like Beijing and Shanghai where the high cost of living is finally catching up with them.
NO RETURN TO OLD WAYS?
As the coronavirus comes under control in China, the government is gradually releasing cities from lockdown, easing transport restrictions and encouraging consumers to venture back into malls and restaurants by giving out billions-worth of cash vouchers, worth between 10 yuan and 100 yuan.
But many people say they are still worried about job security and potential wage cuts because of the struggling economy. Nationwide retail sales have plunged every month so far this year.
Xu Chi, a Shanghai-based senior strategic analyst with Zhongtai Securities, said some Chinese consumers may prove the ‘21 Day Habit Theory,’ a popular scientific proposition that it only takes that long to establish new habits.
“We believe people’s spending patterns follow the well-known theory, which means most people in China, having been cooped-up at home for more than a month and not having binge-shopped, may break the habit and not return to their old ways,” Xu said.
Jiang said she was determined not to return to her free-spending ways and planned to cook more at home.
“I’ll turn to cheaper goods for some luxury brands,” she said. “I’ll choose Huawei’s smartphone, because (Apple’s) iPhone has too much brand premium.”
Tang, who has recently used 100 yuan of shopping coupons to stock up on food, is going to hold the purse strings even tighter.
“I’ve set my monthly budget at 1,000 yuan,” she said. “Including one – and just one – bottle of bubble tea.”
SHANGHAI, May 2 (Xinhua) — Shanghai’s 130 main tourist attractions have received over 1 million visitors in the first two days of the five-day May Day holiday.
The scenic sites received 456,000 visitors on Friday and 633,000 more on Saturday, marking a growing travel and leisure demand, according to the Shanghai Municipal Administration of Culture and Tourism.
The city requires reservations for tours of all tourist attractions to prevent crowding while tourist sites should not exceed 30 percent of their daily or real-time visitor capacity.
Tourists are also required to wear face masks, show their health QR codes and have their body temperatures taken for their safety.
“I feel safe and confident with the new reservation measures,” said Li Zhi, who has booked tours to the Zhujiajiao ancient town and Shanghai Oriental Land.
Under the reservation system, tourist sites are also better prepared to prevent crowding and provide better tour experiences to customers, according to Huang Ying with Shanghai Oriental Land.
BEIJING (Reuters) – China announced on Wednesday that its parliament will open a key annual session on May 22, signalling that Beijing sees the country returning to normal after being reduced to a near-standstill for months by the COVID-19 epidemic.
During the gathering of the National People’s Congress in the capital, delegates will ratify major legislation, and the government will unveil economic targets, set defence spending projections and make personnel changes. The ruling Communist Party also typically announces signature policy initiatives.
The session was initially scheduled to start on March 5 but was postponed due to COVID-19, which has infected nearly 83,000 people and killed more than 4,600 on the mainland after emerging late last year in the central city of Wuhan.
As the epidemic has subsided, economic and social life gradually returned to normal, making it possible for the congress to convene, the official Xinhua news agency quoted the standing committee of the NPC, the legislature’s top decision-making body, as saying.
The committee also appointed Huang Runqiu as the new minister for ecology and environment, a post vacated when predecessor Li Ganjie became deputy Communist Party chief for Shandong province earlier this month, Xinhua reported.
Tang Yijun was also named as the new justice minister to replace Fu Zhenghua, who has reached the retirement age of 65 for ministers.
The Chinese People’s Political Consultative Conference (CPPCC), an advisory body to parliament, has proposed starting its annual session a day before the parliamentary session opens.
Analysts expect China to roll out additional fiscal stimulus in order to cushion the blow from COVID-19, which has developed in to a worldwide pandemic that some fear will trigger a severe global recession.
China’s economy contracted for the first time on record during the January-March period, when the government imposed severe travel and transport restriction to curb the spread of the epidemic.
Parliament is also expected to discuss the anti-government protests in Hong Kong, amid growing speculation that Beijing take steps to strengthen its grip on the city.
It is unclear how long parliament and its advisory body will meet for this time, and people familiar with the matter have told Reuters that this year’s annual sessions could be the shortest in decades due to COVID-19 concerns. Usually more than 5,000 delegates descend on Beijing from all over China for at least 10 days.
Beijing city plans to ease quarantine rules as early as Thursday, two sources familiar with the situation told Reuters, ahead of the key political meetings.
People arriving in the capital from other parts of China will no long have to be quarantined for two weeks unless they come from high-risk areas such as Heilongjiang in the north and some parts of Guangdong in the southeast, the sources said.
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.”
The Zhangjiajie bridge in Hunan province – which was the highest and longest glass-bottomed bridge in the world when it opened in 2016 – arguably kicked off the craze.
But earlier this year, one tourist died and six others were injured after they fell off a glass slide in Guangxi province.
Rain had made the glass extra slippery, causing the man to crash through the guardrail, and fly off the slide. He died from severe head injuries.
The Hongyagu glass bridge – which until May this year held the title of world’s longest glass bridge – was among those shut in Hebei province.
Image copyright GETTY IMAGESImage caption The Hongyagu bridge in Hebei province
The closures have not just affected Hebei province – across the country, a number have been shut.
Earlier this year, the government called for local tourism authorities to carry out “comprehensive safety assessments” of glass bridge projects.
On social media site Weibo, many applauded the closures, with one saying it was “about time safety was addressed”.
Others criticised the sheer number of glass bridges built over the past few years.
Media caption Thousands wobble over the world’s longest glass bridge in Hebei province, China
“I don’t really understand why there are so many glass bridges recently. It’s a waste of money,” said one commenter.
The death in Guangxi province was not the only glass attraction fatality. In 2017, a tourist died after an accident on a glass slide in Hubei.
And in 2016, someone was injured after being hit by falling rocks while walking on a glass walkway in the city of Zhangjiajie.
In 2015, a glass skywalk in Henan province cracked despite being open for only two weeks, sending tourists fleeing.
Train trips, Xinjiang and chartered flights among the growing holiday trends, travel agents say
Destinations such as Dubrovnik, Croatia, are becoming more popular among mainland Chinese tourists, according to one of China’ s biggest travel services. Photo: AFP
Chartered flights and niche destinations such as Croatia and Malta are growing in popularity as Hong Kong falls out of favour for mainland Chinese holidaymakers over the National Day “golden week” break.
Japan has overtaken Thailand as the most searched overseas destination on the website of travel agency Ctrip, followed by Malaysia, the United States, Singapore, Australia, Macau, France, Italy and Russia.
Within the mainland places such as Beijing and Shanghai continued to be among the most popular searches but Urumqi, capital of Xinjiang Uygur autonomous region, is a fast-growing term, especially among people in Shanghai and Guangzhou.
“It could be that tourists want to see autumn leaves,” a Ctrip spokesman told the South China Morning Post.
October 1 marks the start of a week-long break on the mainland when millions of Chinese take the chance to travel. This year, an estimated 800 million people are expected to go on trips in China or overseas, about 10 per cent more than last year.
The country’s motorways are expected to be jammed from about 2pm on Monday, reaching a peak at around midnight, and again from 10am Tuesday, according to web mapping service Tencent Map.
China’s highways can expect heavy traffic as travellers head out for the holiday. Photo: Reuters
Ctrip said people heading overseas were increasingly seeking out new destinations, with bookings to places such as the Czech Republic, Austria, Croatia, Malta and Cambodia growing by 45 per cent this year.
“As Chinese people travel outside the country more and their experience of travel grows, many are more willing to go to smaller eastern European countries, such as the Czech Republic,” the spokesman said.
“Popular movies also have a strong influence. Many young people are willing to travel to see where films are shot, such as Croatia, one of the locations for Game of Thrones.”
Other noticeable trends this year include more people travelling with pets, by train and on chartered flights. The site said it sold 60 per cent more European train tickets and 10 times the number of train tickets for Japan for this golden week compared to last year.
The most popular routes in Asia were Tokyo to Kyoto in Japan, and Seoul to Busan in South Korea.
Hong Kong protests leave ‘golden week’ tourist boom in tatters as visitor arrivals during Chinese holiday period are set to be slashed by a third
Thousands of users also chose chartered flights, a service Ctrip introduced in September.
Ji Yu, head of chartered flights for Ctrip said most people thought chartered flights or helicopters were something only millionaires could afford, but in the internet age, they had become cheaper and more accessible.
“In the internet era, consumer needs vary from person to person, especially in terms of travel. There are products on the market to satisfy each customer’s personal needs.”
Among the more popular chartered routes were from Beijing or Shanghai to Tokyo, Bangkok, the Maldives and London.
More people are also going away for longer. Digital travel services giant Qunar said that 80 per cent of the travellers booking flights or hotels through its services were heading off for more than five days. And of those 41 per cent were travelling for more than a week.
Meanwhile, trips to Hong Kong have fallen substantially, with just 15 group tours expected to enter the city each day, down from 110 last year, according to the Travel Industry Council of Hong Kong.
Efforts to promote Hong Kong attractions have also increased in Shenzhen in recent weeks, with advertising videos scenic spots, popular restaurants and malls in Hong Kong playing on cross-border buses. Passengers can also get discounts to some stores and services with their tickets.
China’s economic centre of gravity is shifting to the southern part of the country, home to hi-tech industries and coastal ports
Growing divide adds to economic pressure of trade war with the US and general slowdown in China
A worker walks past coal piles at a coal coking plant in Yuncheng, Shanxi province, one of China’s heavily industrial regions in the North. Photo: Reuters
Wang Le, a Beijing native, moved to Shanghai in 2016 to open a Thai boxing club. As an entrepreneur, Wang said Shanghai in China’s South is more open to new things than Beijing, in the “conservative” North.
“You do not need to worry about being niche here, no matter what types of goods, consumers can find what they need, and these types of businesses can survive,” he said.
What struck Wang as the biggest difference is the culture of doing business. In the South, he said, abiding by rules is more rooted in people’s minds than in the North, where businessmen tend to give empty promises and spend their time building close relationships with those in power to facilitate business deals.
“In general, the south has a stronger sense of service than the North, no matter if they are a vegetable salesman or a government official. In such an environment, customers [in the South] have higher demands, or are more critical [of products or services they purchase],” said Wang, who added that this can be challenging for northern entrepreneurs to get used to, but that the rewards are worth it.
View of a container terminal at the Port of Dalian in Dalian city, northeast China’s Liaoning province. Photo: Handout
“As long as you do it well, they will be willing to spend money in your place,” Wang said. “‘Willingness to consume’ is also a feature of Shanghai, they are willing to spend on quality goods.”
Wang embodies the growing schism between China’s North and South, which are culturally diverse and becoming more
Geographically, China is split in two by the Qinling mountain range, also known as the Sichuan Alps, and the Huai River. In recent years, these features have also served to slice the country in two economically. To the South lies China’s most affluent regions, home to most of its innovation hubs and busiest ports.
Southern China has the Pearl River and the Yangtze River Deltas, the nation’s two manufacturing hubs, and has seen its economic importance rise, with output covering 61.5 per cent of national gross domestic product (GDP) last year.
To the North lies much of its heavy industries, such as coal, which helped fuel China’s economic miracle of recent decades, but which will soon be relics of the past.
The North-South divide is growing and has become increasingly apparent since 2013 when the North’s share of economic output fell to 38.5 per cent, having previously been higher than 40 per cent. This is despite containing 15 provinces, 42 per cent of country’s population and 60 per cent of its territory.
In 2013, the average annual income in the South was lower in the North, but in 2018, the South’s per capita GDP was at least five per cent higher than the North, according to calculations made by the South China Morning Post.
to skilled labour. Guangdong in the South and Shandong in the North are China’s two most populous provinces, each of which has more than 100 million regular residents, however, in 2018 Guangdong attracted inflows of more than 800,000 people, while Shandong lost an estimated 400,000 people to other places.
The trend is likely to worsen as the fight for skilled workers in China escalates. Employers in the affluent South often can offer higher wages and better career prospects than the North, which has found it increasingly difficult to retain local talent.
The disparity is also apparent in the North’s reliance on government funding. As China’s economy slows and its old industries dwindle, northern governments last year generated enough revenue to cover less than half their spending. The South, in contrast, was able to fund 55 per cent of its own outlay, according to a recent study from the Chinese Academy of Fiscal Sciences, a think tank affiliated with the Ministry of Finance.
Furthermore, the infrastructure of the South, including the ports, make it a natural destination for foreign capital. This has helped it grow exponentially, as the resource rich North struggled with commodity price fluctuations.
The foreign investment helped the South become an export hub and home to hi-tech industries. Its private sector boomed, with firms able to react more quickly to market forces than the state-owned enterprises in the North.
Liu Qingfeng is a businessman from Liaoning, a northeastern Chinese province bordering North Korea and the Yellow Sea. Liu spent a decade in Shanghai and four years in Shenzhen, before moving to Beijing three years ago. He said that while businesspeople he dealt with from both China’s North and South are pragmatic and fast learners, those in the South are more “collegiate”. This attitude lends itself better to growing a private business, he thought.
“This means small and medium-sized family businesses in the south can expand to a bigger scale. The North cannot compete with that. If you read the story of successful entrepreneurs in the North, many of them are lonely heroes, fighting on their own,” Liu said.
A barge pushes a container ship to the dockyard in Qingdao in eastern China’s Shandong province. Qingdao is one of the North’s most important cities, economically, but Shandong province as a whole is losing people to economic migration at an alarming rate. Photo: AP
Reforms in China’s economy are serving to accentuate this generalisation, strengthening private enterprise in the South, while hollowing out the heavy industry in the North.
By 2018, close to two thirds of the 579 special districts set up by Beijing across the country as test beds for opening to foreign investment were in the South, according to a study by Tsinghua University.
“[Government] supply-side structural reforms, including cutting excessive industrial capacity, are a tough test for many provincial economies. But for the northern provinces, the test is more profound,” said Chen Shu, an analyst from the Atlantis Finance Research Institute.
In an interview in May with Qiushi, a political journal run by the Communist Party, Liu Shijin, former vice-president of the Development Research Centre under the State Council, said the development imbalance is not all negative.
“China is a very large country and its development has been unbalanced in the past. It is often seen as a shortcoming, but in some respects, we found it could also be an advantage,” Liu said. “For example, when [consumers] start to buy television sets and computers, orders come from areas with high income levels first, then from low-income areas. In this way, the manufacturer’s production and sales periods can be extended and the economy continues to grow.”
Most analysts, however, feel the North-South gap should be urgently addressed, but not in the way that China addressed the East-West gap in the past. Lu Ming, a professor of economics at Shanghai Jiao Tong University, said much of the central funding and subsidies for western and central China have been wasted on building new cities and industrial zones, which people are now leaving.
“I suggest we conduct an investment return assessment for high-speed rail projects that have been planned in the central and western regions, and consider replacing them with airports, which are more suitable for areas with low population densities and complex terrain,” Lu said.
He added that those regions experiencing an exodus of human capital should not be judged by economic growth, but per capita income, which he considers a more fair metric.
This would be a small step in addressing an economic imbalance, which is threatening to get wider.
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