Someone in the world doesn’t know Xi is a dictator
New Zealand’s rookie PM Chris Hipkins wades into the US-China diplomatic row after Biden’s comments about Xi
Welcome to the sixth edition of Between The Lines. This week we look at why President Xi Jinping is a “dictator.” At China Factor, we thought everyone already knew that. Moving on, the allure of the world’s second-largest economy is waning for European businesses. Hardly surprising, when nearly half of China’s consumers have boycotted foreign brands.
Let’s get started.
Never wade into a diplomatic dispute when you are a rookie head of government. New Zealand’s Prime Minister Chris Hipkins did just that on Thursday, 24 hours after US President Joe Biden had branded Xi a “dictator.”
When asked by the media if he agreed with Biden’s comments and whether the Chinese people had a say in their government, Hipkins said:
No, and the form of government that China has is a matter for the Chinese people.
“If they wanted to change their system of government, then that would be a matter for them,” he added as reported by the Reuters news agency.”
Hipkins only took over as PM from the popular Jacinda Ardern in January and plans to visit China next week for talks with Xi.
Even so, he should realize that the ruling Communist Party has never been elected at the ballot box in free and fair elections and Xi has no mandate from the people.
Earlier, Biden had called the Chinese President a “dictator” at a campaign fundraiser in California. He suggested that Xi was embarrassed about the alleged Chinese spy balloon incident in February:
The reason why Xi got very upset in terms of when I shot that balloon down with two box cars full of spy equipment is he didn’t know it was there.
“That’s a great embarrassment for dictators when they didn’t know what happened,” Biden amused his audience as reported by the NBC television network.
Naturally, Beijing was furious. Foreign Ministry spokeswoman Mao Ning told a media briefing:
The remarks by the US side are extremely ridiculous and irresponsible, they seriously violate basic facts, diplomatic protocol, and China’s political dignity.
Here we go again. What is “ridiculous” and violates “dignity” is the “fact” that around one billion Chinese citizens have never been allowed to vote for the government of their choice or the president of their country.
It’s a risky business for EU firms in China
European Union businesses are falling out of love with China.
In a report released on Wednesday, the EU Chamber of Commerce warned of the dangers of “ambiguous rules,” which are stifling confidence in the world’s second-largest economy:
The negative trends reflect recent challenges – brought by uncertainties in China’s policy environment and rising geopolitical tensions – and the long-standing market access barriers.
“[There is] no expectation that the regulatory environment is going to improve over the next five years,” Jens Eskelund, the president of the EU Chamber of Commerce in China, said at a media briefing.
The findings did not go down well with Chinese Premier Li Qiang. He made it clear that the EU’s plan to “de-risk” from China was a non-starter during his high-profile European trip.
At a dinner with France’s Economy Minister Bruno Le Maire in Paris, he said:
“We did hear some unharmonious voices, such as some people in Europe who floated the question whether economic development should reduce dependency and de-risk.”
“We think in today’s economic globalization, dependency is a must, and is mutual. You depend on me, and I depend on you,” Li said as reported by Politico.
It appears European Commission President Ursula von der Leyen has other ideas. Watch this space.
How China’s consumers have bought into nationalism
Rising nationalism among Chinese consumers is spreading with flash boycotts of foreign brands becoming the norm. A survey by Morning Consult has revealed the stark reality of doing business in China without offending shoppers.
Axios highlighted the sea-change in spending:
“On sensitive issues including Xinjiang and Taiwan, foreign companies risk angering Chinese consumers if they comply with Western sanctions or human rights norms, and angering Western consumers if they do not.”
As for a quick takeaway, “up to 43% of Chinese consumers polled said they had boycotted foreign brands.” Since 2016, “there have been at least 78 Chinese consumer boycotts” across the country.
“Moving supply chains out of China may help foreign companies sidestep impossible situations and avoid angering both Chinese and Western consumers,” Morning Consult’s Scott Moskowitz said as reported by Axios.
Yet another reason for foreign firms to “de-risk” instead of appeasing the Communist Party of China and its state-backed “Wolf Warrior” social media campaign.