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Baihang and the Eight Personal Credit Programmes: A Credit Leap Forward

“The personal credit era has arrived,” some netizens say.

Manya Koetse

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Baihang Credit has received ample coverage in Chinese press recently as it was launched as “the first unified personal-credit information firm” of the PRC. It joins forces with Alibaba, Tencent, and six other big companies in further building on China’s credit-based society. What’s on Weibo provides an overview of the developments that have led to the formation of this powerful credit platform.

Three years after eight commercial firms were granted permission by the People’s Bank of China (PBOC) to start their pilot programmes in operating personal credit systems in 2015, none of them have received a license.

Instead, they’ve now become shareholders and active contributors to a new unified platform that has access to an enormous number of personal credit data. At the so-called ‘trust alliance’ (信联) Baihang Credit (百行征信), state level and commercial organizations join forces in further developing China’s credit systems.

How they can share data without harming Chinese recent laws on privacy, however, remains vague.

Some background

An important moment within this development started over twelve years ago (to be precise: on March 20 of 2006), when the People’s Bank of China (PBOC) began operating its own independent Credit Reference Center. The goal of the brand-new center was to set up the reliable credit checking platform which China was still lacking at the time.

At its core, it was tasked with managing a national commercial and consumer credit reporting system, to enable financial institutions to assess borrowers’ creditworthiness.

Screenshot of The Credit Reference Center website.

In November of 2013, during the Third Plenary Session of the 18th CPC Congress, new plans were adopted to also “establish and improve a social credit system to commend honesty and punish dishonesty” (USC 2013), putting more pressure on the formation of a solid credit checking system in China.

Months later, in 2014, the Chinese State Council issued an official notice concerning the construction of a nationwide Social Credit System that was to be rolled out by 2020 (Creemers 2014).

 

Three Years of the “Credit Leap Forward”

 

It is perhaps no coincidence that not too long after the formal announcement of these plans, that would lead to a more credit-based Chinese society, the PBOC Credit Center opened its doors to eight Chinese companies to work on trial programmes to prepare for operating their own personal credit information businesses.

At the time, in 2015, the PBOC’s Credit Center had been around for nearly a decade, yet still ‘only’ covered 25% of the Chinese population, leaving ample risks in the control process of Chinese financial services (Yang 2017).

You could say that 2015 was an important year in which competition for China’s multi-billion personal credit investigation market really began, along with the flourishing of China’s Internet population and the growing demand for personal online data information (Jun 2015). A recent Caixin column by Xinhai Liu (刘新海), associate researcher at the Credit Reference Center, even calls the 2015-2018 period the “Credit Great Leap Forward” (“征信大跃进的三年”).

Besides that new personal credit rating tech firms started to pop up, the year 2015 was also the year when misconceptions arose in foreign media regarding these existing credit systems.* ACLU called it “nightmarish,” falsely claiming that all Chinese would be “measured by a score between 350 and 950, which is linked to their national identity card” and that “the government has announced that it will be mandatory by 2020.”

As explained in our recent article about this issue, these discussions – that continue in foreign media to this day – often blur the lines between the national Social Credit system and a number of private programs. (To understand more about the difference between the government’s Social Credit system and the commercial ones, please read the previous article we featured on this topic.)

These misunderstandings partly come from the fact that both the government’s plans on introducing their ‘Social Credit System’ (社会信用体系) and the Central Bank’s endeavors to build a stronger personal credit industry (个人征信行业) were major developments in the period from 2013-2015 up to the present.

 

The Eight Programmes

 

With such a strong demand for solid credit rating systems, why have none of the eight approved tech firms received their license, over three years after starting pilot operations?

One of the main problems with commercial services such as the well-known ‘Sesame Credit’ is, according to PBOC spokesperson Wan Cunzhi, that they are all “isolated islands” (“信息孤岛”) of non-shared data, that they are lacking in independence, and that their data management is not strong enough (Yang 2017).

The coming-together of these “islands” solves this problem and forms one solid platform under the ‘Baihang’ label. Which eight companies does this concern? An overview:

1. Sesame Credit (芝麻信用)

This is the best-known commercial personal credit score programme, implemented by Alibaba’s Ant Financial. Sesame Credit already had 520 million users as of 2017.

Sesame Credit example scores explained, from 385 being in the low range to 731 being in the ‘good’ range.

Sesame Credit was launched in 2015. Because it is part of the Alibaba family, Sesame Credit has an enormous amount of data at its disposal, from e-commerce sites to finance products (Taobao, Tianmao, Alipay, etc), through which it compiles users’ own scores, going from 350-950, for those who have opted into the program. The scores are based on a number of things, including people’s payment history, their contacts and network, and online behavior.

2. Tencent Credit (腾讯征信)

Since the Tencent company currently hosts 55% of China’s mobile internet usage on its platforms (Marr 2018), it has also an enormous amount of data at its disposal. Similar to Sesame Credit, Tencent Credit works with a 300-850 score system. It officially launched a trial of its score programme in January of 2018, but then took it down shortly after.

3. Kaola Credit (考拉征信)

Koala Credit is an independent third-party credit company established by the Shenzhen-based Lakara (拉卡拉) financial services company. Koala Credit was launched in May of 2015, around the same time as Sesame Credit launched its program. Lakara has strategic and powerful partnerships with China Unionpay, five major banks, and hundreds of other financial institutions. Lakara and Koala Credit jointly founded a pioneering lab in China that focuses on big data models. The University of the Chinese Academy of Sciences is involved in this project (Zhuo et al 2016, 299).

4. Pengyuan Credit (鹏元征信)

Established in 2005, Pengyuan Credit is amongst the oldest personal credit investigation firms of the eight selected by the PBOC. The company states on its website that its main goal since 2005 has been to “create a credit reporting ecosphere on the Internet,” shifting from traditional credit rating systems to online credit rating methods.

5. Sinoway Credit (华道征信)

The Beijing Sinoway Credit was established in 2013 by four large financial companies. As explained by BJReview (2016), Sinoway is among those companies (such as Zhima and Tencent) that accumulate data from their business rather than using traditional algorithms to collect financial and public data. They have exclusive access to enterprise data (Zhuo et al 2016, 299).

6. Qianhai Credit Service (深圳前海征信)

Qiu Han, CEO of Qianhai.

Another company established in 2013, Qianhai Credit is based in Shenzhen. It was launched by financial giant Pingan. The current CEO is the female big data specialist Qiu Han (邱寒).

7. China Chengxin Credit (中诚信征信)

The Beijing-based China Chengxin Credit company was founded in 2005, established by the China Chengxin Credit Management group. The firm provides personal credit information and companies and market research services. As described by the China Money Network, its database is connected to local administrations for industry and commerce, police, courts, telecom service providers to provide comprehensive credit information.

8. Intellicredit (中智诚征信)

Intellicredit is a Beijing-based independent, third-party credit registry. CEO Li Xuan (李萱) has previously expressed the company’s goal to handle any loopholes that let scammers get away with fraud in China’s online financial environment. The company is experienced in credit industries both in China and abroad, and its team has also worked on the establishment of the credit reporting system of the PBOC (Zhuo et al 2016, 299).

 

Baihang & Allies: An Abundance of Personal Data

 

The formal launch of Baihang Credit (百行征信), the “first unified personal credit information firm” of China, has become big news in Chinese media, with some calling it a personal credit industry game changer.

Lauch of Baihang Credit, May 23 2018 (photo via Weibo).

Baihang Credit is a joint establishment of the aforementioned eight and the China Internet Finance Association.* It received its license in February of this year. The firm officially opened for business on May 23rd of 2018.

While the China Internet Finance association reportedly holds 36% of the Baihang firm, the other eight shareholders each hold 8% (Zhang & Liu 2018).

^

The eight companies are not just financial investors, but also active contributors and sharers of technology, resources, and data for the Baihang firm. The launch of this joint establishment means that both state-level institutions and commercial enterprises combine their efforts in building a strong personal credit investigation and service platform; the new system now links data collected by these powerful firms such as Tencent to the state-level China Internet Finance Association, which in itself is an initiative by the People’s Bank of China.

Besides basic data including personal information, education level, salaries or employer, companies such as Sesame Credit or Tencent also have access to a rich collection of consumer data, ranging from social media, e-commerce purchases, online travel data, to location, phone records and even social connections.

The eight firms will also play an important role in Baihang’s management. Sesame Credit, Tencent Credit, Qianhai Credit, Sinoway and Koala Credit have all entered the company’s board of directors. The other three companies will join the board of supervisors (Sina Finance 2018). The 57-year-old Zhu Huanqi (朱焕启) will be Baihang’s CEO and president; he previously worked at Huida Asset Management.

The PBOC told Caixin Global that all parts of the eight companies that previously dealt with personal credit ratings will now be incorporated into Baihang. The other parts can continue to operate as data service providers. In the future, Sesame Credit, for example, will continue to research commercial credit services.

 

Many Questions Linger

 

While the recent alliance has received ample attention in Chinese media as an important moment in China’s transforming alleged ‘credit-based’ society, many questions still linger.

One Nanjing research institute writes on Weibo: “The joining of these companies means they can share big data. This also means that if a person is behind [in payments] on one platform, they will also have no access to loans on any of the others.”

But is it all about sharing personal financial credit information, or is this about the sharing of other data as well? What are the legal implications of Baihang operations? And to what extent, if at all, will the system link to the upcoming nationwide Social Credit System?

Caixin Global noted that Baihang Credit will face challenges regarding Chinese Cybersecurity Law, which imposes strict limits on ‘secondary uses’ of data beyond its original purpose, and requires individual authorization when personal data is transferred from one institution to another (Sacks 2018; Zhang & Liu 2018).

In this Caixin article, the PBOC’s spokesperson would not elaborate on how Baihang will collect and use personal data. He was only quoted in saying only that contributions to Baihang will be handled “according to market rules.”

 

“Personal Credit Era has Arrived”

 

Despite the many articles about Baihang in Chinese media, it has not become a much-discussed topic on social media; netizens discussing Chinese credit systems seem more concerned with the height of their Sesame Credit score.

One Weibo user, however, did write about the Baihang alliance, commenting: “The personal credit era has arrived” (“个人信用时代到来”).

Other people worry about the impact of this alliance, saying: “You’ll see that if you have a negative balance on your bank account, you won’t be able to use the public bathroom anymore.” (Recently, various cities in China are upgrading their public toilets, integrating AI features such as facial recognition for people to receive free toilet paper.)

Some commenters simply call the companies that have joined under Baihang “a pile of trash.”

Although Sesame Credit will not receive a license to operate its personal credit investigation business, it is highly probable that users of their credit programme will still be able to enjoy the perks of, among many other things, entering libraries for free or riding rental bikes without deposit with a high score.

“I’ve just arrived in Hangzhou and can do many things for free,” one person wrote: “I feel like my Credit Score is omnipotent.”

Baihang’s recent alliance is about to make Chinese personal credit scores even more omnipotent – the ‘Credit Leap Forward’ is well underway.

By Manya Koetse


Directly support Manya Koetse. By supporting this author you make future articles possible and help the maintenance and independence of this site. Donate directly through Paypal here. Also check out the What’s on Weibo donations page for donations through creditcard & WeChat and for more information.

 

* In an article from December of 2015, for example, The Independent suggested that “China has created a social tool which gives people a score for how good a citizen they are,” describing how “China” had put forward “a concept straight out of a cyberpunk dystopia” named Sesame Credit.

* The Chinese Internet Finance Association, also known as the NIFA (National Internet Finance Association) was established in March of 2015 upon approval by the Chinese State Council and Ministry of Civil Affairs. It is a state-level organization.

References (others linked directly within text)

Creemers, Rogier. 2014. “Planning Outline for the Construction of a Social Credit System (2014-2020).” China Copyright and Media, 14 June China https://chinacopyrightandmedia.wordpress.com/2014/06/14/planning-outline-for-the-construction-of-a-social-credit-system-2014-2020/ [10.6.18].

Creditchina. 2018. “百行征信入场,8家股东剥离个人征信业务.” CreditChina.gov, 4 June http://www.creditchina.gov.cn/gerenxinyong/gerenxinyongliebiao/201806/t20180604_117132.html [10.6.18].

Huang, Zhiling. 2016. “Six Obstacles to Producing Reliable Big-Data Credit Reports.” BJ Review, 15 December http://www.bjreview.com/Business/201612/t20161212_800074419.html [9.6.18].

Jun, Wang. 2015. “Road to Credit.” Beijing Review, 3 August http://www.bjreview.com.cn/business/txt/2015-08/03/content_698269.htm [9.6.18].

Marr, Bernard. 2018. “Artificial Intelligence (AI) In China: The Amazing Ways Tencent Is Driving It’s Adoption.” Forbes, 4 June https://www.forbes.com/sites/bernardmarr/2018/06/04/artificial-intelligence-ai-in-china-the-amazing-ways-tencent-is-driving-its-adoption/#5130d54b479a [10.6.18].

Sacks, Samm. 2018. “New China Data Privacy Standard Looks More Far-Reaching than GDPR” CSIS, 29 January https://www.csis.org/analysis/new-china-data-privacy-standard-looks-more-far-reaching-gdpr [9.6.18].

Sina Finance. 2018. “百行征信揭开面纱 芝麻信用腾讯征信等五家入董事会.” sina Finance, 4 January http://finance.sina.com.cn/money/bank/bank_yhfg/2018-01-05/doc-ifyqinzs8775295.shtml [10.6.18].

USC. 2013. “Decision Of The Central Committee Of The Communist Party Of China On Some Major Issues Concerning Comprehensively Deepening The Reform, November 12, 2013.” USC, 12 November https://china.usc.edu/decision-central-committee-communist-party-china-some-major-issues-concerning-comprehensively [10.9.18].

Yang, Felix. 2017. “Is Xinlian the answer to the Individual Credit Checking System in China?” Kapronasia, 25 Aug https://www.kapronasia.com/china-banking-research-category/item/886-is-xinlian-the-answer-to-the-individual-credit-checking-system-in-china.html [10.6.18].

Zhang, Yuzhe, and Liu Xiao. 2018. “Launch of Unified Platform Boots Private Firms From Personal Credit Business.” Caixin Global, May 28 https://www.caixinglobal.com/2018-05-28/launch-of-unified-platform-boots-private-firms-from-personal-credit-business-101258187.html [10.6.18].

Zhuo Huang, Yang Lei & Shihan Shen. 2016. “China’s personal c>edit reporting system in the internet finance era: challenges and opportunities.” China Economic Journal (9:3): 288-303.

Spotted a mistake or want to add something? Please let us know in comments below or email us.

©2018 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

Manya Koetse is the editor-in-chief of www.whatsonweibo.com. She is a writer and consultant (Sinologist, MPhil) on social trends in China, with a focus on social media and digital developments, popular culture, and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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Backgrounder

‘Good Doctor’, Digital Hospitals: How Mobile Apps Are Alleviating China’s Healthcare Problems

With the rapid digitalization of China’s healthcare, Chinese patients now have more ways than one to receive medical assistance.

Manya Koetse

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China’s healthcare industry is facing some serious challenges. As Chinese society is rapidly digitalizing, mobile apps now provide innovative solutions to alleviate pressing problems in the country’s health services sector.

 
This is the “WE…WEI…WHAT?” column by Manya Koetse, originally published in German by Goethe Institut China on Goethe.de: “Good-Doctor Apps und Digitale Krankenhäuser.” 
 

Social Credit System, artificial intelligence, surveillance cameras; these are some of the hottest topics making headlines in mainstream Western media when discussing China-related developments recently.

With the rapid digitalization of Chinese society, these topics certainly have come to play a more important role in social media discussions within the People’s Republic of China (PRC). But if there is one issue that seems to concern Chinese social media users the most, it is not facial recognition nor their ‘Sesame score’: it is the topic of healthcare.

In December of 2017, a photo showing a crying mother kneeling down beside a toddler on the sidewalk in front of a Shanghai hospital went viral overnight. The moment was captured on camera by a reporter who was visiting Shanghai’s Children’s Hospital.

The photo of Guo Yinzhen and her son that went viral in China (image via NetEase, source: https://3g.163.com).

The mother, Guo Yinzhen, is a single parent who had traveled from a remote village to seek medical help for her 3-old-son, who was suffering from congenital hydrocephalus or ‘water on the brain.’ Already having traveled to the city multiple times and spending all her money on medical bills, Guo could not afford the additional 100.000 yuan (€ 12.600) for medical procedures needed to save her son’s life.

Guo’s story struck a chord with Chinese netizens, who continue to share the heartbreaking photo on social media to this day. It has become emblematic of China’s healthcare problems.

 

Crowded Hospitals and ‘Healthcare Disturbance’

 

The key to an adequate healthcare system, no matter where in the world, is that there is a right balancing in the “iron triangle” of efficiency/cost containment, high quality care, and patient access.[1] China, however, struggles with all three sides of this triangle.

Guo’s case is an extreme example, but many people in China dealing with less serious health issues and needing basic medical services also struggle to afford and access the healthcare they need.

Over 95% of people in China have health insurance, but people from different regions do not enjoy the same benefits and their out-of-pocket expenses can vary greatly. Uncovered medical costs can sometimes be catastrophic and simply unaffordable for patients and their families.

As more money flows are going to healthcare facilities in China’s cities, there is also the issue of varying levels of providers’ medical education and the overall healthcare quality, with the substantial majority of modern hospitals still existing in urban areas.

Easy access to the right kind of healthcare can be especially problematic for China’s rural population, as people often need to travel long distances and have to go through the lengthy process of registering and waiting for their doctor’s appointment, which sometimes requires them to stay in the city overnight.

For all of these reasons, China’s bigger public hospitals can get super crowded, sometimes resembling shopping malls on an end-of-season sales day. On social media, both patients and medical workers often complain about the stress brought about by the huge crowds and the shortage of doctors in hospitals across the country.

Perhaps it is no wonder that China even has a word to describe outbursts of violence between patients and doctors: ‘Yī nào’ (医闹, literally: “healthcare disturbance”).

Weibo user ‘Sunscreen’ complains about the crowds at Huashan Hospital.

One major problem within China’s healthcare conundrum is the lack of local family or primary-care doctors, which often makes bigger hospitals the first stop to any kind of medical treatment for Chinese patients.

The reasons for this issue are manifold. There is a general lack of trust in private and smaller local healthcare clinics, for example, and patients often choose to go directly to a bigger hospital to avoid making extra costs.

This makes it extra difficult for many community health care centers – that are already struggling – to make enough money and to retain qualified staff. In a society that is rapidly aging, the challenges facing China’s healthcare industry are only becoming more pressing.

 

A Doctor Today, Just an App Away

 

As China’s online environment is thriving, new innovative online apps are popping up on a daily basis. Some of these apps, that have found their ways into China’s most popular app rankings, are offering solutions to some of the country’s most pressing healthcare problems.

One of these apps is Ping’an Good Doctor (平安好医生), which was developed by health insurance provider Ping’an in 2015 and calls itself China’s “one-stop healthcare ecosystem.”

“Ping’an Good Doctor” promotional image by Ping’an.

Employing some 1000 medical staff in its in-house team, contracting over 5,200 external doctors, and collaborating with 3000 hospitals and thousands of pharmacy outlets across the country, the app is somewhat of an “online hospital.”

Through the app, users can look through an online database of medical professionals, order medicine at nearby pharmacies, get 24/7 online medical consultancy, search for information about both Western and Chinese Traditional Medicine, etc., but they can also use Ping’an Good Doctor as a fitness app to track their own health.

Screenshot of Ping’an app screen, by author.

When looking for a specific doctor for a one-on-one consult, the app first lets users select an area of expertise (e.g. dermatology or gynecology), and then offers a list of different specialists in various price categories.

Doctors from well-known hospitals, for example, or those with excellent ratings, have a one-time consultation fee of 100 yuan (€ 12,60). Other doctors can be consulted starting from 30 yuan (€3,70). All costs can be paid efficiently via online payment apps.

Doctors to pick from within the app’s various price categories.

Ping’an Good Doctor uses an AI-driven system to ask patients various questions about their symptoms and to automatically create a user’s medical record to save time. Based on the AI-generated record and the conversation with the patients – files such as photos can also be uploaded to the app -, the doctors can prescribe medicine or refer the patient to a hospital for an offline appointment if needed.

Ping’an recently announced that its number of registered users exceeded 300 million users, with 62 million monthly active users. Because the app keeps building on its AI-driven system, Ping’an Good Doctor can be expected to only become a ‘smarter’ smart health app the more popular it gets.

Although Ping’an is now leading within China’s medical app category, there are many other apps providing similar services, such as Chunyu Yisheng (春雨医生), Haodafu Online (好大夫在线), or DingXiang Doctor (丁香医生).

The emergence of these apps is just one of the many ways in which China’s digital developments, online media, and tech giants are impacting the healthcare industry, profoundly changing how patients receive healthcare information and access medical services now and in the future.

List of recommended medical apps in the Tencent app store.

In a way, China’s medical consultation apps fill the void in offline primary care. Patients who would otherwise turn to hospital care as their first stop can now  access medical consultations any time, any day, at a relatively low cost. Those who suffer from relatively harmless conditions could be diagnosed by a medical specialist via the app and get the medicine they need within a matter of minutes. With the growing popularity of these kinds of apps, many patients no longer need to visit a hospital at all.

Are smart health apps such as Ping’an Good Doctor the solution to China’s healthcare problems? No, they’re not. Struggling mums like Guo Yinzhen will not find the help they need there. But they do contribute to a more efficient healthcare environment where crowd flows in hospitals can be reduced, and patients do not need to spend a lot of time and money to stand in hour-long queues to get five minutes of their doctor’s time.

Although smart health apps could not help Guo Yinzhen and her son, social media apps could. As soon as their story went viral in late 2017, Shanghai Children’s Welfare Foundation Xiaoxingxin offered to cover medical treatments for the little boy, with a notable pediatric neurosurgeon operating the child. According to the latest updates, the boy’s situation was “looking good.”

Hopefully, the same holds true for the challenging sides of China’s healthcare industry.

By Manya Koetse
Follow @whatsonweibo

[1] Burns & Liu, 2017: 3-4.

References/Linked Sources

Burns, Lawton Robert, and Gordon G. Liu. 2017. “Introduction.” In China’s Healthcare Industry: A System Perspective, Lawton Robert Burns and Gordon G. Liu (eds), pp-1-116. Cambridge: Cambridge University Press.

Economist, 2017. “China needs many more primary-care doctors.” The Economist, May 11 https://www.economist.com/china/2017/05/11/china-needs-many-more-primary-care-doctors [20.10.19].

Zhou, Viola. 2018. “Does China Have Universal Healthcare? A Long (And Better) Answer.” Inkstone, Oct 10 https://www.inkstonenews.com/health/china-translated-does-china-have-universal-health-care/article/2167579

This text was first published by Goethe-Institut China under a CC-BY-NC-ND-4.0-DE license (Creative Commons) as part of a monthly column in collaboration with What’s On Weibo.

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Backgrounder

How Chinese Kuaishou Rebel ‘Pangzai’ Became a Twitter King

He’s been called a ‘Twitter king’, but how did the unexpected online fame of this ‘Hebei Pangzai’ start?

Jessica Colwell

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Twitter has fallen in love with a Chinese farmer after his drinking videos on Kuaishou were cross-posted abroad and went viral. He has embraced his new fans and Western social media, arguably becoming one of China’s most successful cultural ambassadors of the year.

He describes himself as the “inventor of tornado beer drinking style” and as an “ordinary peasant from China.” ‘Hebei Pangzai’ only joined Twitter in August of 2019, but he already has a Twitter following of more than 111.6K.

Although his account is temporarily restricted by Twitter at time of writing (“due to suspicious activity”), his popularity is only growing. Some Twitterers, such as the China twitterer Carl Zha (@CarlZha), are even initiating a “#FreePangzai campaign” to restore the account of the “one true King.”

But where and when did the online fame of ‘Hebei Pangzai’ start?

Let’s begin our introduction to Pangzai with one tweet from March of this year, when Twitter user ‘Hunnaban Trenchboss’ posted a video from Chinese short video app Kuaishou (快手) showing a man – ‘Pangzai’ – wearing sunglasses and smoking a cigarette while preparing an incredible mixed drink.

The man in the video smoothly pops the cap off a bottle of beer with a chopstick, pours some in a large jar, then twirls the bottle and propels the rest of the beer in a tornado of force down his throat.

He follows that up by pouring in more beer, some blue liquor, an egg, some Pepsi, and a hefty glass of baijiu – which he dumps in only after lighting it on fire, igniting his finger, and coolly lighting his cigarette. He then chugs the entire concoction in a matter of seconds.

“How do I become as cool as this guy, The Coolest Guy?”, the tweet said.

The same video was shared again in August by a few Russian accounts, was retweeted by an American account, and then went completely viral, racking up millions of views and tens of thousands of retweets.

That video has now been viewed almost 12 million times on Twitter, and has inspired tens of thousands of fans who herald him as ‘king.’

The man in the video referred to as ‘Pangzai’ (胖仔, ‘chubby dude’) is Liu Shichao (刘世超), a 33-year-old farmer and small-time Chinese internet celebrity from a city called Xingtai in Hebei Province.

According to an interview with Technode, he found out about the video on Twitter when some of his new foreign fans opened Chinese social media accounts to find him and tell him about his overnight online fame.

“One message told me that I was a celebrity now in America,” he told Technode: “So I chatted with the person [who sent the message] for a whole day, with the help of translation software.”

Within two days of his video going viral, Pangzai had figured out how to use a VPN, opened his own Twitter account and started uploading videos.

He even posted a reply on the original viral video to alert everybody to his account.

Liu’s early response to his viral video on Twitter.

Since then, Liu ‘Pangzai’ has amassed over 111,000 followers and has posted many more videos of everything from drinking, to cooking, to exploring his countryside hometown.

But it was the drinking videos specifically that earned him his following, both abroad and in China.

 

IT STARTED ON KUAISHOU

“Pangzai epitomizes the typical Kuaishou account.”

 

Liu began his internet career three years ago on Kuaishou, a Chinese short video app massively popular among China’s lower-tier cities and countryside.

In contrast to the polished, celeb-heavy platform Douyin, which is most popular among urban youths, Kuaishou is a platform for the masses. Its users are known for their crazy antics and general disregard for personal safety.

Liu Shichao’s Kuaishou account has 354,000 followers, but the majority of his videos have been removed.

Pangzai epitomizes the typical Kuaishou account. Posting under the handle “Chubby Dude from Hebei” (@河北胖仔), he uploads videos of himself eating and drinking in eye-popping combinations, or sometimes smashing things – from bricks to unopened water bottles – with his bare hands.

Liu’s video of breaking bricks with his hands was also popular on Twitter.

Liu also gained notoriety, and a couple hundred thousand followers, from his mastery of the so-called ‘beer tornado technique’ (小旋风 xiǎo xuànfēng).

According to an interview with the BBC, he peaked at 470,000 followers on Kuaishou and was monetizing his online fame with some 10,000 RMB ($1420) per month.

Liu’s signature beer tornado technique features in the first video he posted to Twitter.

Unfortunately for Liu, China’s Cyberspace Administration announced a crackdown on vulgar and illegal content across multiple social media platforms in spring of 2018, with a focus on Douyin, Kuaishou, and its sister news company Jinri Toutiao. Kuaishou was pulled from app stores until it cleaned up its act.

It is unclear just how many videos and accounts have been removed as a result of the cleanup. We can get a rough idea from an announcement by Kuaishou earlier this year that in March of 2019 alone, it removed an average of over 11,000 videos and blocked almost 1,000 accounts every day.

The result for Liu was that his account was suspended for four months and the majority of his most popular videos, including the one that went viral abroad, were removed for promoting ‘unhealthy drinking habits.’

When you look at his Kuaishou account today, you won’t see many videos focused solely on baijiu and beer chugging.

The videos that remain on his account do include drinking (and his signature tornado move) but it is always accompanied by eating food or some other activity (such as sitting deep in a field of corn, munching on roast duck and dribbling baijiu down a corn leaf into a glass.)

In a video posted to Kuaishou, Liu pours baijiu into a glass from a corn leaf, before then lighting it on fire and chugging it.

Liu still has 354,000 followers on Kuaishou. His Chinese fans, like his foreign ones, marvel at his cool and collected manner as he eats and drinks all sorts of disgusting things.

Canned herring features heavily in his most popular recent videos, where he can be seen sipping the juice directly from the can.

In one of his videos on Kuaishou, Liu eating herring directly from the can, to the disgust of his fans.

“This has to be the most unaffected anyone has ever been by eating canned herring,” says one fan. “The flavor is disgusting! 99.9% of people who try this would vomit,” another online commenter replies.

 

AN UNEXPECTED TWITTER KING

“Liu is like many young men from the countryside of Northern China: open, friendly, humble, and genuinely excited to share his life.”

 

This year, Liu seems to have embraced his newfound international stardom with grace and savvy.

He uses Twitter’s in-app translation to help him communicate with fans and has been highly interactive on the platform.

Liu ‘Pangzai’ was also quick to open up a Paypal account and share it with followers, and has recently made YouTube and Instagram accounts to prevent scams pretending to be him. He has also collaborated with a Twitter fan to sell T-shirts online in America.

Many online fans have dubbed him ‘king’, perhaps the highest praise one can receive on the internet today.

But in contrast to the sunglasses and chill demeanor of his videos, Liu does not appear to be an internet celebrity overly obsessed with being cool.

Instead, he is like many young men from the countryside of Northern China: open, friendly, humble, and genuinely excited to share his life (and drinking habits) with the rest of the world.

Liu began using translation software to communicate with fans soon after joining Twitter.

After reposting all of his old drinking videos from Kuaishou, Liu started asking Twitter fans what they would like to see from him. Many responded that they wanted more about his life in rural China.

He has since followed up with videos showing him fixing a pipe with his friends, exploring his local market, cooking sweet potatoes, and, of course, a tutorial on how to master the ‘tornado beer’ technique.

Liu explaining on Twitter how to perform the tornado beer technique that helped make him famous.

Many have expressed concern for his health in light of his drinking habits, but he has assured everybody that everything he does is “within his ability” and that he doesn’t drink like that very often.

Liu is grateful for all the support and praise he has received from abroad. “It’s crazy to have all of these foreign friends all of a sudden,” he recently said in an interview with Deadspin: “I really have to thank them a lot. If I have a chance I will find them and we can drink together.”

Seemingly to that end, Liu has recently organized a party to be held near his hometown in China, exciting fans all over the world and spurring many to apply for passports and visas.

Once Liu began inviting people to his party, he changed the date and location in order to accommodate more attendees.

The date is set for December 14, 2019 in Zhuamadian City, Hebei Province; too soon for many to make it, but he promises another party in the spring. There is talk also of organizing a visit for Liu ‘Pangzai’ to go to America.

 

WINDOW INTO CHINESE SOCIAL MEDIA

“Liu’s growing notoriety abroad seems to have flown completely under the radar of the Chinese internet.”

 

Although there are many vloggers like Pangzai in China, he stands out on Twitter as some sort of window into Chinese social media, especially because this online world is usually so separate from the Western realms of social media.

The recent explosive growth of Chinese social media apps such as TikTok has not done much to facilitate this kind of cultural interaction between China and the West.

Although Tiktok is, in fact, a Chinese app (called Douyin 抖音 in China), there are actually two different versions of the same app in mainland China and abroad, meaning that the other ‘Pangzais’ of the Chinese internet still remain within the social media spheres of the PRC, rarely gaining fame outside of the Great Firewall.

In China, aside from his fans on Kuaishou, Liu’s growing notoriety abroad seems to have flown completely under the radar of the Chinese internet. He is mentioned only one or two times across Weibo, and searches for his name and handle on WeChat, Baidu, and various Chinese tech news sites bring up nothing.

Liu is a rare example of genuine soft power coming out of China. A pure, grassroots man of the people with strong cultural appeal who sincerely enjoys sharing his life and his culture with the rest of the world. His tweets are full of affection and appreciation for his fans, as well as frequent prompts for followers to share their own lives and customs of their home countries.

To watch his introduction to Twitter and rise to fame is to see the best of the internet: cultural interaction, genuinely shared delight, and mutual admiration inspired by hilarious antics caught on camera.

His Twitter fans express their hope that Twitter Support will soon lift the temporary ban on their ‘Twitter king.’ To them, it’s perfectly clear: this online king is nowhere near dead, long live Pangzai!

Follow the #FreePangzai hashtag on Twitter.

Update: Panghaizi is out of Twitter jail!

 
Want to read more about unexpected online celebrities from China? Also see:
The Story of Two Farmers Who Became Internet Celebrities;
The “Vagrant Shanghai Professor”;
From Farmgirl to Fashionista: Weibo Celebrity Fairy Wang.

 

By Jessica Colwell
Follow @whatsonweibo

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