Beijing Wants Macau Turned into IT Hub

Can Macau transform from gambling hub to one of innovation?

Before the coronavirus pandemic, Macau was the world's power horse when it came to generating billions of dollars in profits from gambling -- for years the former Portuguese colony's casino revenues were greater than all of those in Las Vegas combined. It generated over 80 percent of the Macau's tax income.

China had wanted Macau to diversify its income sources for years, and the gaming resorts tried to create entertainment, fine dining restaurants and shopping, but these initiatives were completely overshadowed by casinos. 

Macau depends heavily on casinos for its tax base

Mainland gamblers didn't care for shows that tried to be like those in Vegas, or Michelin-starred restaurants, and the shopping -- they just wanted to eat bowls of noodles so they could play at the VIP tables, dropping thousands of dollars per round.

However now with Covid-19 pandemic approaching its second year, it has laid bare how vulnerable Macau is to depending on gaming, and in the past week there was sensational news of Macau police arresting Alvin Chau Cheok-wa, who allegedly ran illegal cross border gambling activities. 

The free-wheeling days of fast money, VIP rooms, and escorts are over.

Instead Beijing wants to take the opportunity to turn the gambling capital into an IT hub.

The place will be Hengqin, a small island in between Macau and Zhuhai that will jointly be governed by both the Macau and Guangdong authorities. 

Hengqin is an island near Macau and Zhuhai

It will be one step forward in rebranding Macau as "the new centre of international technologies" to connect the Asia Pacific tech ecosystems with the rest of the world.

Huh?

What tech ecosystems? And wasn't Hong Kong supposed to be an IT hub too?

In Beijing's plan, Macau is being encouraged to develop integrated circuits, new energy projects and artificial intelligence, among other tech sectors, and to establish a supply chain for chips, from design to testing.

That will also include enhancing the research abilities of Macau universities to drive innovation and technology. There are other industries Beijing wants to develop too, like Chinese medicine, gems, tourism and financial services. 

Meanwhile tech firms like Tencent as helping the Macau Water Supply Company digitise its operations to offer smoother and faster services, and install meters to detect unusual water consumption. 

Huawei is also working with Macau's telecoms operator CTM on Macau's smart city initiative, using big data technology.

Are Macau's sleepy streets ready for change?

While this all sounds great, the reality is that Macau's population is just under 650,000, the city is small, rundown and not very efficient to get around.

Young people are either in the gaming or hospitality industries, or they have left Macau to develop their careers elsewhere, like Hong Kong. Students don't go to Macau universities to study high tech and innovation, and trying to change that perception will be a hard sell.

The Macanese don't have the aggressive go-getter mentality to work hard -- they are so used to getting free money from the government and having their pay from casinos artificially high that it will be hard to wean them off the gaming industry.

In addition, Macau doesn't have the man power or the education level to set up a supply chain for chips let alone artificial intelligence. 

And what will happen to all those casinos that are there and the ones that are being built? Will those be turned into high-tech hubs instead? 

It seems Beijing has major pipe dreams for Macau that may never become a reality...

Foreign Ministry Overwhelmed by Flowers

Meng clutching a giant bouquet after landing in Shenzhen

 

With Huawei Technologies executive Meng Wanzhou given a hero's welcome back to China complete with red carpet, dozens of red roses, an army of drones creating messages in the sky, the highest skyscraper in Shenzhen illuminating messages too, and pretty much everyone excited that their "Huawei princess" was back home.

So the Chinese foreign ministry seemed surprised to be overwhelmed with dozens of bouquets for the businesswoman who was under house arrest for over 1,000 days in Vancouver. 

Foreign ministry says it is "a sea of flowers"

As the ministry thanked people for their flowers that were sent as expressions of national pride and gratitude to the government for securing her release, it asked that people stop sending anymore, as the ministry has become "a sea of flowers".

"We greatly appreciate your kindness. And we sincerely suggest that you stop sending flowers, although you are welcome to continue to leave messages," the ministry said.

Ministry spokeswoman Hua Chunying said on Monday her colleagues were deeply touched by the gestures.

"These flowers represent the Chinese people's sincere support and affirmation of the [Communist] Party and the government's ability to resolutely safeguard the legitimate rights and interests of Chinese citizens and enterprises, and reflect the hearts of the Chinese people," she said.

"I'd like to take this opportunity to express my gratitude to all my friends who care about and support Meng Wanzhou and China's diplomacy."

Hua Chunying asks people to stop sending flowers

Right. Diplomacy. More like hostage diplomacy.

But a good way to soften the image is the flood of flowers at the ministry. 

Glad the florists are doing a roaring business these days in China...

China's Verbal Joust with Canada

 Cong warns Canada about taking Hong Kong asylum seekers

 

The 50th anniversary of diplomatic relations between Canada and China was marked by a war of words sparked by Cong Peiwu, the Chinese ambassador to Canada.

He urged Canada not to accept people from Hong Kong who participated in last year's anti-government protests, describing them as "violent criminals". Cong also warned that accepting these people would jeopardize the "health and safety" of 300,000 Canadians who live in Hong Kong.

When asked by the media if this was a threat, Cong replied, "That is your interpretation."

How is that not a threat?

Over 9,000 people were arrested last year

Cong went on to say: "We strongly urge the Canadian side not to grant so-called political asylum to those violent criminals in Hong Kong, because it interferes in China's domestic affairs, and certainly it will embolden those violent criminals," he said.

This is strange logic -- wouldn't China be happy to see so-called "violent criminals" move to another country so Hong Kong will be "safer"?

In any event so far the number of actual convictions of protesters has a very low success rate in the courts, so his description of last year's participants as "violent criminals" is overblown.

Canada has accepted at least two activists from Hong Kong, granting them protection as early as September. There are apparently 45 people waiting for approval.

The Chinese envoy warned of further consequences if Canada accepted more Hong Kong asylum seekers.

"If the Canadian side really cares about the stability and the prosperity in Hong Kong, and really cares about the good health and safety of those 300,000 Canadian passport holders in Hong Kong and the large number of Canadian companies operating in Hong Kong... you should support those efforts to fight violent crimes," he said.

Champagne says Cong's words were "disturbing"

Foreign Affairs Minister Francois-Philippe Champagne later called Cong's statements inappropriate.

"The reported comments by the Chinese ambassador are totally unacceptable and disturbing," the minister said in a statement.

"I have instructed Global Affairs to call the Ambassador in to make clear in no uncertain terms that Canada will always stand up for human rights and the rights of Canadians around the world."

Interesting Champagne did not summon Cong for a dressing down, which would have made for good political theatre.

In any event, the ambassador also lashed out, saying China would have a "strong reaction" if Canada's Parliament were to pass any resolution that condemned China's treatment of Uyghurs as "genocide". 

Uyghurs in an "education training centre"

According to experts studying what is going on in Xinjiang, China's westernmost province, over 1 million Uyghurs have been forcibly living in detention camps since 2017, though the Chinese government has called them "vocational and education training centres". 

"We will take resolute measures to safeguard our sovereignty and national security," Cong said. He rejected widespread allegations that genocide is happening in Xinjiang, saying Uyghurs "live in harmony ... and [China's] human-rights record is the best in history."

His words are so amazingly false, when there are many testimonies from exiled Uyghurs who have given first-hand accounts of their experiences in these camps, as well as loved ones who haven't heard from their parents, brothers, sisters and other relatives for months or years. And when they finally emerge, they are a shadow of their former selves.

There are also statistics the birth rate in Xinjiang has plunged after academic Adrian Zenz published a report that found the number of sterilizations in the province surged from almost 250 per 100,000 people in 2018 from 50 per 100,000 in 2016. Zenz says this follows the United Nations' definition of genocide.

Michael Kovrig (left) and Michael Spavor

As for the detentions of Michael Spavor and Michael Kovrig, Cong insisted there was no "coercive diplomacy on the Chinese side", even though the two were detained soon after Huawei executive Meng Wanzhou was arrested on a US extradition request.

Canada is finally taking a firmer stand with China, but it really needs to have its ducks lined up in order to play hardball with Beijing. China has a lot of diplomatic tactics up its sleeve, and Ottawa needs to be ready to hit back.

Reminder of the Past

Kaiser Wilhelm Memorial Church with Huawei behind it

I have arrived in Berlin for a few days and so far it's been colder than I thought! I have had to put on more layers just to keep warm.

Nevertheless the city is an interesting mix of old and new, though most of the city was bombed out during World War II and some sections of the city had to rebuild from scratch.

The extremely intricate ceiling decorated in mosaics

But there are a few places that are purposely left in its damaged state as a reminder of what happened to the building.

One of them is the Kaiser Wilhelm Memorial Church. The project was initiated by Kaiser Wilhelm II to honour his grandfather, Kaiser Wilhelm I, and construction started in 1890, and completed in 1894. It was officially consecrated 1906.

However on November 23, 1943, the church was severely damaged by an air raid. Parts of it were salvaged and when you first see the building, there are parts of it that are completely bombed out, others in tact.

A mosaic on the floor shows an angel slaying a dragon

Upon entering, visitors are blown away by the intricate mosaics on the ceiling of the foyer -- most of it is still in tact and glittering in gold. There are mosaics on the floor too, painstakingly put together, including an image of an angel slaying a dragon by the entrance.

Flanking the bombed out church are two parts of the new church designed by architect Egon Eiermann. He preserved the spire, incorporating it into the new tower. However we weren't able to see it, as it is covered by scaffolding sponsored by Huawei -- which is intriguing. Have you seen Huawei sponsor the renovation of a cultural landmark, let alone a religious one?

Or did the company find that tower to irresistible for advertising to care that it's actually the church spire?

The new church has a wonderful glow from the stained glass

In any event, the lower building, the rebuilt church, features a honeycomb design of over 21,000 stained glass inlays.  The glass designer, Gabriel Loire, was inspired by the cathedral at Chartres, and at night when the glass is lit up, has a wonderful dark blue glow.

Travel Warning to China

Yesterday Robert Schellenberg was sentenced to death in his appeal

This morning the Canadian Consulate in Beijing issued a warning to Canadians in China, saying it had revised its Travel Advice and Advisory for the country.

It says: "Exercise a high degree of caution in China due to the risk of arbitrary enforcement of local laws", without mentioning by name the recent case of Robert Schellenberg, 36, who was sentenced to death for trafficking methamphetamine from China to Australia.

Foreign media in China say the Chinese government took great lengths to allow foreign reporters to cover the verdict, meaning it was keen on giving the impression that it follows rule of law. Meanwhile, Chinese state media earlier insinuated his case is directly linked with Huawei executive Sabrina Meng Wanzhou, warning Canada would suffer severe consequences if she was not released her back to China.

Meng Wanzhou is under house arrest in Vancouver

Hu Xijin, editor-in-chief of the Communist Party-run Global Times uploaded a video in which he warned that, "if Canada extradites Meng to the United States, China's revenge will be far worse than detaining a Canadian."

Hours after the Canadian travel advisory was issued, China put out a travel warning to its citizens about going to Canada.

A notice by the Chinese Foreign Ministry said Chinese citizens should be aware of the risks of being "arbitrarily detained at the request of a third nation" in Canada, and urged caution when making travel plans."

Tensions are certainly escalating between China and Canada. Both have sufficient cause to want to resolve the situation, though China definitely ratcheted things up several notches yesterday when it sentenced Schellenberg to death.

And it is still detaining two Canadians, former diplomat Michael Kovrig and entrepreneur Michael Spavor.

On top of that China is now warning its citizens about traveling to Canada...

Which side should be more worried?

Luxury Impervious to Boycotts?

Even Alibaba's Jack Ma wears a Canada Goose jacket at Davos

Previously it was very easy for the Chinese government to direct its citizens' anger at countries that it felt had angered them, through boycotts.

For example, many of a certain age refuse to consume any kind of Japanese products due to what happened during the Sino-Japanese war. I had one colleague who followed this boycott, refusing to buy a Japanese car or eat sushi because of how her grandparents were treated during the war.

When the Chinese boycotted Lotte because of THAAD

More recently there have been boycotts of South Korean products after the installment of THAAD, a controversial US anti-missile system on a golf course owned by conglomerate Lotte.

Chinese companies dropped their associations with Lotte, which has candy factories, entertainment, beverages and supermarkets in China. While these domestic firms garnered patriotic admiration from consumers, how long did it take for them to go back to purchasing their favourite Lotte items again?

Canada Goose were justifiably worried when it was about to open its store in Sanlitun in Beijing when the arrest of Huawei CFO Sabrina Meng Wanzhou was made in Vancouver on December 1. The store that sells premium down jackets delayed its opening by two weeks, due to "ongoing construction", perhaps in the hopes consumers wouldn't associate its brand with the legal incident.

But it seems Canada Goose has nothing to worry about.

Long lines at Canada Goose in Sanlitun Village in Beijing

Despite social media messages instructing people to boycott the Canada Goose boutique, the store opened on December 28 and it was so busy that staff were forced to restrict entry, forcing customers to wait outside for over 30 minutes in minus 12 degrees Celsius weather.

Even three days after opening, customers had to wait an hour to get into the store.

The reasons why people ignored the calls for boycotts?

One person said, "Why would I boycott Canada Goose? If Meng Wanzhou can buy houses and a Canadian residence permit, why can't I buy some Canadian clothes?"

Another questioned why a Canadian company should be responsible for its government's actions. "Why would I boycott an enterprise that didn't do anything wrong?"

The call for the boycott that never happened also gave the Canadian brand more exposure to the Chinese who had never heard of the company before, and even motivated those who could afford it to even go to the store to buy one of those prized jackets to keep warm in.

Perhaps this shows that China's biggest consumers, young people, are "driven by fashion tastes, not politics", according to some pundits. Maybe in this case the jackets that retail on average for CAD$800-$1,000 is a luxury product that is immune to boycotts or these millennials need more patriotic education from the Party...

“why would I boycott Canada Goose? If Meng Wanzhou can buy houses and a Canadian residence permit, why can’t I buy some Canadian clothes?”) while others questioned the validity of making a Canadian company responsible for the Canadian government’s action. (“Why would I boycott an enterprise that didn’t do anything wrong?”).

This is original content by What's on Weibo that requires investment. You are free to link to this article. Please identify this website or author when you base content on this source or quote from it. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com to buy additional rights. Copyright (C) https://www.whatsonweibo.com. Read more at: https://www.whatsonweibo.com/chinese-consumers-indifferent-to-diplomatic-spat-between-china-and-canada-as-canada-goose-boycott-backlashes/?utm_source=SupChina+Free+Newsletter&utm_campaign=3e4c604352-20180920+newsletter_COPY_02&utm_medium=email&utm_term=0_96063830a5-3e4c604352-165094247

“why would I boycott Canada Goose? If Meng Wanzhou can buy houses and a Canadian residence permit, why can’t I buy some Canadian clothes?”) while others questioned the validity of making a Canadian company responsible for the Canadian government’s action. (“Why would I boycott an enterprise that didn’t do anything wrong?”).

This is original content by What's on Weibo that requires investment. You are free to link to this article. Please identify this website or author when you base content on this source or quote from it. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com to buy additional rights. Copyright (C) https://www.whatsonweibo.com. Read more at: https://www.whatsonweibo.com/chinese-consumers-indifferent-to-diplomatic-spat-between-china-and-canada-as-canada-goose-boycott-backlashes/?utm_source=SupChina+Free+Newsletter&utm_campaign=3e4c604352-20180920+newsletter_COPY_02&utm_medium=email&utm_term=0_96063830a5-3e4c604352-165094247

“why would I boycott Canada Goose? If Meng Wanzhou can buy houses and a Canadian residence permit, why can’t I buy some Canadian clothes?”)

This is original content by What's on Weibo that requires investment. You are free to link to this article. Please identify this website or author when you base content on this source or quote from it. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com to buy additional rights. Copyright (C) https://www.whatsonweibo.com. Read more at: https://www.whatsonweibo.com/chinese-consumers-indifferent-to-diplomatic-spat-between-china-and-canada-as-canada-goose-boycott-backlashes/?utm_source=SupChina+Free+Newsletter&utm_campaign=3e4c604352-20180920+newsletter_COPY_02&utm_medium=email&utm_term=0_96063830a5-3e4c604352-165094247

Meng Wanzhou's Life in a Bubble

Sabrina Meng Wanzhou was released Monday evening in Vancouver

A judge in Vancouver has granted bail to Huawei Technologies executive Sabrina Meng Wanzhou. She had to pay CAD$7 million in cash, CAD$3 million surety made up of properties from four associates.

As part of her bail conditions, she has to stay at home on West 28th Avenue everyday from 11pm to 6am and must be monitored 24-hours a day with a security entourage and electronic ankle bracelet.

She will be staying in her home in the west side of Vancouver

She must also surrender her passports and can travel within Vancouver, the North Shore and parts of Richmond except the airport.

After she was released, she sent out a message on WeChat: "I am in Vancouver and back with my family. I am proud of Huawei, I am proud of my country. Thank you everyone who is concerned about my situation."

No doubt the local media will be camping out near her home everyday to monitor her too... it's attention she might have to get used to...

Baidu's Robin Li has an Idea

Baidu's Robin Li wants to lure overseas skilled labour to China in tech firms

Someone is thinking out of the box -- now that US President Donald Trump is making some people there uneasy about living in America, why not lure them to China?

That's the idea Robin Li Yanhong, chief executive of Baidu is pitching at the Chinese People's Consultative Conference in Beijing.

"China should be more open in its immigration policy," he said at a panel. "Chinese companies have made a lot of effort to attract overseas talent to work in China. But most of the talent we attract are overseas Chinese. In the meantime, Silicon Valley has gathered top tech talent from across the globe."

He said people who don't agree with Trump's restrictive immigration policies, or who can't get into the US should come to China instead, and that the Middle Kingdom should do more to attract these skilled workers, and that means liberalizing immigration policies at home so that innovation can drive economic growth.

Hugo Barra returned to the US from China due to health issues

While the US has 13.1 million green card holders at the start of 2013, almost two-thirds of them acquired permanent residency in the previous 13 years.

This compares to China with 7,356 foreigners getting permanent residency since the mainland began giving out green cards in 2004, even though some 600,000 people from overseas work there.

Interestingly last year 1,576 foreigners were made permanent residents, a whopping increase of 163 percent over the previous year.

Tech companies like Baidu, Alibaba, Tencent and Huawei have a high demand for skilled workers in the field and perhaps them being turned off by Trump would be a good opportunity to try out jobs in China.

However, one of the biggest issues is air quality, and the exit of Hugo Barra from Xiaomi back to Silicon Valley in January due to health issues was telling.

A couple walks by the Forbidden City in Beijing

On his Facebook page, Barra, who was previously at Google, said the last few years of living in a "singular environment have taken a huge toll on my life and started affecting my health".

Also in January, a Beijing-based online platform called 36kr.com released a survey that found half of the nearly 300 entrepreneurs polled had considered moving their businesses or part of their operations out of the city because of concerns about air pollution.

So how about it, Xi Jinping and Li Keqiang? Robin Li has a point. Clean up the air and loosen the immigration policy and the skilled masses may come flooding in to help further stimulate the Chinese economy.

Just a thought...