Internet platforms vs. xenophobia, Tesla in govt procurement list, state media on "Taiwan bait", "hurt national feelings" deleted - Week in Review #22

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Hi folks, I have seen two really important trends recently. One is that the conscious drive by government apparatus to win back foreign investment has entered into some deep socio-psychological areas. Another is the fact that while more and more fiscal problems have surfaced, hopes are also running high that a historic tax and fiscal reform is about to unfold in the upcoming 3rd Plenum.

It’s a super busy week for me. So although I want to cover both of these big topics, I am sad to say I will only be able to cover the first trend. I hope to cover the second trend for you next week.

#1 Internet platforms vs. xenophobia

Following Hu Youping’s death and her posthumous honor as a hero, in an unprecedented move, top internet platforms in China such as Tencent, ByteDance, Weibo, and NetEase independently issued similar statements cracking down on xenophobic online speeches, which, in this case, mostly have to do with Japan.

This is unprecedented. I have personally never seen anything like this. For a long time, anti-Japan hate speech has been more or less tolerated in China.

To be sure, during WWII, Japan committed unimaginable atrocities in China but has not really repented for its actions the same way Germany ever did. In Germany for example, it is illegal to say “Heil Hitler”, while in Japan the top perpetrators of the war were put into a shrine honoring national heroes. So there is an understandable moral righteousness for Chinese people to dislike Japan. Moreover, nationalism forms a core pillar of the PRC, itself a young nation in the modern sense. Some scholars believe that it’s precisely the great and painful War of Resistance against Japanese Aggression that finally jolted “China” into becoming a nation that we know today.

Plus, the boundary between rightful nationalism and “ultra-nationalism” is a bit hard to pinpoint, so historically, it has been politically very difficult to send an explicit “no” to anti-Japan hate speech.

So for internet companies in China to do this kind of crackdown, it takes a lot of courage. And the backlash is also strong. Despite the crackdown, I can still see many, many posts and videos protesting against the platforms, often with nasty language. As of now, those platforms stand their ground and their censors are busy at work.

What’s also interesting is the Chinese authorities’ position on this. To be sure, People’s Daily did call for rejecting hate speech, but no government agency has gone as far as joining those internet platforms to send out similar policing statements.

In China’s context, it’s unimaginable if the concerted efforts of those platforms have not happened with the blessing from the Party. But the fact it’s not the Party who is doing the apparent work is interesting, shows that the not-so-omnipotent Party is very cautious of the political backlash against this type of action.

Effectively, those brave platforms are here to shoulder the bullets from the general masses. It’s a brave act for them, and I also think it’s what the elites at the helms of those platforms would willingly do. But we will see whether it will be a self-sacrificing act. There is always a level of political risk in this.

The grand balancing act between two parts of China has become tougher day by day. It’s in our collective interest for the authorities to well manage this difficult task.

#2 State media on “Taiwan Bait”

This actually happened in the last week. So after the bombshell story from FT on Xi’s refusal to take America’s bait for China to attack Taiwan, state media in China also picked up this story. This all but confirms the story did take place. A key story was effectively “exported” and then “re-imported”.

“Tricking Mainland to attack Taiwan, America’s new trap”

The complex dynamics between party leadership, foreign media, and domestic media have always been a fascinating subject. When Xi said this to Ursula von der Leyen, did he already have the intention to let the foreign media know first, and would thus find a politically expedient way to let a sensitive idea circulate back to China later? If that’s the case, why did FT only report it more than a year after that meeting? Did President Xi actually intend for this story to break as early as April 2023, the time of the meeting, but somehow the story did not get picked up? Who really tipped off Mr. Demetri Sevastopulo more than 1 year after that meeting?

No matter the truth, peace in the Taiwan Straits is confirmed yet again.

#3 "Hurt national feelings" deleted

In another great move by Chinese authorities, the intensely controversial clause on ‘hurting the feelings of the Chinese nation’ dropped from China's proposed security law.

According to CNA:

China has dropped a controversial clause in the latest draft of a public security law that would have punished anyone guilty of “hurting the feelings of the Chinese nation”, months after the proposal triggered backlash and concerns over potential abuse.

Released in September last year, the first draft of the Public Security Administration Punishments Law - which typically targets minor offences - had placed six acts in its crosshairs.

These included “wearing, displaying or decorating in public places, or forcing others to wear, display or decorate, clothing or symbols that are harmful to the spirit or the feelings of the Chinese nation”.

At Baiguan, we discussed this controversy before. At the time, we tried to draw you to the fact that this bizarre clause enjoyed some strong popular support.

I have no more to add here, other than reminding you that you should put this event in the broader context of this string of events in this post.

#4 Tesla to be procured by the government

In another friendly gesture, according to China Daily:

Tesla Inc and other foreign brands are expected to participate in government procurement across China as the US electric vehicle giant has been included on a local government procurement list for the first time, said experts and industry insiders on Thursday.

Despite factors like rising protectionism, the European Union's plan to impose tariffs on Chinese EV imports and the United States' accusation that China's new energy industry has overcapacity, China has again sent a clear signal that it is further opening its doors to multinational corporations for healthy competition and mutual gains, they said.

According to an online tender of East China's Jiangsu province, the local government plans to buy new energy vehicles, including sedans, SUVs and buses, worth 73 million yuan ($10 million) this year and next.

This is a great move. It seems the highly symbolic Musk-Li meeting did bear some real fruit. I am waiting to see Tesla-branded armed police cars on the streets in the future. I am also waiting for the day when US government employees can drive a brand-new BYD.

With that, I conclude this week’s coverage. I hope to write something about the 3rd Plenum for the next week.