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Beijing (Failed) Protests Over Collapse of China’s Peer-to-Peer (P2P) Industry

A P2P Crisis: investors who have lost their savings tried to take their grievances to the street.

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Image via Tech Sina (http://tech.sina.com.cn/i/special/forefront/p2ppl/).

The regulatory crackdown on Chinese online lenders caused a climate of heightened tension in Beijing today, where investors who have lost their savings were trying to take their grievances to the street.

Recent crackdowns on China’s online lending industry have caused some unrest in Beijing today, where planned gatherings by victims who were trying to draw attention to their misfortune were immediately shut down by authorities.

Companies they’ve invested in were either closed down, or the directory boards have simply abandoned their business and have taken off (跑路).

Today, WeChat and Weibo have been buzzing with rumors of people being victimized by the P2P crackdown attempting to gather and protest in various places – one of them being in Beijing.

But local authorities and security guards have been quick to shut down protests, allegedly even barring some travelers from entering the city.

P2P Chaos

China’s P2P industry has seen a quick rise and fall over the past year, causing some panic and chaos.

Earlier this week, China’s New Fortune magazine reported of one case where an investor had just invested 360,000 RMB (±US$52,700) into P2P platform Guojinbao (国金宝), when they discovered the platform was already abandoned the day before, and there was no way to get their money back. It is just one among many recent cases.

Peer-to-peer (P2P) lending (defined asa method of debt financing that enables individuals to borrow and lend money without the use of an official financial institution as an intermediary“) has experienced unprecedented growth in China over the last 10 years; hundreds of microloan lenders have sprouted up, in place of traditional state-owned banks, to provide funding and capital to everything from companies to individuals.

For many Chinese investors, P2P lending is an apparent attractive alternative investment. Especially because, according to a 2015 case study by the Associate of Chartered Certified Accountants (ACCA), only 9.6% of Chinese people are able to get proper bank loans.

Since China’s mushrooming online lending companies were largely unregulated before, the rise of P2P in China has also given way to a great number of ‘troubled’ companies and lending scams.

(Note: to understand more about the rise and fall of China’s online P2P lending, read this insightful overview by Jiefei Liu at Technode. Also check out our background article “The “Wild West” of Banking in China: Andrew Collier on China’s Shadow Banking” here“.)

As of this year, China’s central government has enacted stricter rules to protect against these kinds of shady business dealings, which have already affected hundreds of thousands of investors.

Stricter monetary policies and renewed regulations have led to a wave of closures this year.

On August 2, TechNode already reported about responses to the crackdown, with people protesting in front of police stations, organizing online investor rights groups, and making collective efforts to pressure authorities to get their money back.

P2P Protests

These responses now seem to intensify. The overseas Chinese community website Boxun reported about a planned protest march in Beijing on August 6, among others near Ritan park, which was cracked down by local authorities.

Alleged bystander videos showed how people were forcefully taken away by police (video and video and video) or how people were questioned on the train to Beijing (video) (NB! We have not been able to verify if these videos were indeed recorded today, we just know that the people posting them on WeChat/YouTube claim they are).

There were also reports of people being taken away on public buses. “Have truly never seen anything like this in Beijing. We counted 120+ buses at site of the (failed) protest against P2P lending fraud, stretching far as the eye can see – all the way to Diaoyutai. Cops nap, wait in each. Petitioners rounded up, shipped off inside. The SCALE..!,” Becky Davis (@rebeccaludavis), China Correspondent for Agence France-Presse, tweeted on her timeline.

A Twitter account named “P2P China Right” (@P2Pweiquan) posted: “As a result of the government’s powerful police force and strict guard, hundreds of buses are waiting at the gate of the CBRC, About 10000 people were forced to take the bus. Announcing: the 8/6 event failed!”

Although today was an especially charged day, it is not the first time Chinese authorities are cracking down on P2P platforms. In October 2015, Chinese authorities already introduced new regulations to reduce lending fraud.

In 2016, more P2P lending companies closed operations as a result of these new regulations. Most notably was Ezubo, a ponzi scheme disguised as a peer-to-peer lender, which allegedly defrauded more than 900,000 people.

By Manya Koetse, Miranda Barnes, and Ryan Gandolfo.

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

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Stories that are authored by the What's on Weibo Team are the stories that multiple authors contributed to. Please check the names at the end of the articles to see who the authors are.

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China Food & Drinks

Clean Your Plate, Waste No Food – China’s Anti Food Waste Campaign Is Sweeping the Nation

These are the main trends and topics in the context of China’s nationwide ‘Clean Plate campaign.’

Manya Koetse

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Empty plates, small orders, stop promoting excessive eating – China’s anti-food waste campaign is alive and kicking all across the country. These are some of the main social media topics and trends in the context of the ‘Clean Plate campaign.’

Since the call by President Xi Jinping to fight against food waste earlier this month, new regulations, initiatives and trends are popping up all over the nation to curb the problem of food loss.

Following China’s COVID-19 crisis, the ongoing trade war with the US, and mass flooding, President Xi called the issue of food waste “shocking and distressing,” as he stressed that the country needs to “maintain a sense of crisis about food security.”

According to numbers posted in online information sheets by state media, some 38% of the food at Chinese banquets goes to waste. In 2015 alone, an estimated 17 million to 18 million tons of food was wasted.

This is the second time in a decade for China to launch a ‘Clean Plate’ campaign (光盘行动). There was a previous campaign in 2013 that used the slogan “I’m proud of my clear plate.” The estimated annual wastage of grain in China at the time was estimated to be 50 million tons.

On Chinese social media, the 2020 “Operation Clean Plate” is receiving a lot of attention. These are some of the trending topics we have seen on Weibo in relation to the anti-food waste campaign.

 

RESTAURANTS

“N-1” Is the Way to Order, the “Waste Prevention Supervisor” Will Help You

One way restaurants are now addressing the problem of food waste is implementing the “N-1 ordering mode” (N-1点餐模式) which basically means that instead of a group of ten people ordering eleven dishes (N+1), they are advised to only order nine.

Famous Peking roast duck restaurant company Quanjude (全聚德) now advises groups of, for example, seven people to either take their set meal or to order no more than five or six dishes from the menu to avoid wasting food.

They have even appointed a “Waste Prevention Supervisor” (制止浪费监督员) in their restaurants to oversee customers’ orders.

The “N-1” idea is now being implemented in various cities across China.

Earlier this month, Sixth Tone reported that the Wuhan Catering Industry Association (武汉餐饮行业协会) was taking measures to limit the number of portions restaurant patrons can order. Now, the same measures are also being taken in other cities, like in Shijiazhuang (Hebei), Xianning (Hubei), Xinyang (Henan), Guangzhou (Guangdong), Quanzhou (Fujian), and other places.

One restaurant in Changsha got a bit too carried away recently, as it encouraged customers to weigh themselves and order food accordingly. The restaurant apologized after causing some controversy on social media.

 

TRAINS

Smaller Portions on the Gaotie

In line with the country’s anti-food waste campaign, some Chinese highspeed railway trains have also started introducing smaller portions for their in-train food services.

Instead of larger portioned rice meals or noodles, the Nanchang Highspeed Train now offers customers different small size portions in ‘blue and white porcelain’ bowls.

The initiative became a topic of discussion on Weibo (#南昌高铁推出青花瓷小碗菜#), where some applauded it while others complained that the meals were still relatively expensive while being small.

 

SCHOOLS

Be an “Empty Plate Hero”

China’s anti-food waste campaign is also actively promoted in schools across the country. Hundred primary schools in Jinan, for example, teach their students about combating food waste with a slogan along the lines of “Don’t leave food behind, be a ‘clean plate’ hero” (*the original slogan “不做“必剩客”,争做“光盘侠”” also has some word jokes in it).

The schools have also set up various activities to raise awareness of food waste.

 

ONLINE MEDIA

Operation Clean Plate: Empty Plates Snapshot

“Operation Clean Plate” is not just actively promoted in Chinese restaurants and in schools; Chinese state media and official (government) accounts are also promoting the campaign through social media.

The Weibo hashtag “Operation Clean Plate” (#光盘行动#), initiated by the Chinese Communist Youth League, had over 610 million views by August 21st, promoting the idea of “treasuring food, and refusing to waste it.”

Besides the Communist Youth League, other official accounts including China Youth Daily and People’s Daily also actively promote awareness on wasting food and encourage people to empty their plates. China Youth Daily even initiated the online trend of posting a pic of your own empty plate under the hashtag “Clean Plate Snapshots” (#光盘随手拍#)

Another hashtag, the Big Clean Plate Challenge (#光盘挑战大赛#), initiated by People’s Daily, had 290 million views by August 21, with hundreds of netizens posting photos of their before and after dinner plates.

Using the “clean plate” hashtags, many netizens are posting evidence that they are not squandering food.

 

EATING INFLUENCERS

Big Stomach Stars Need to Turn it Down a Notch

In 2018, we wrote about the trend of China’s “big stomach stars” (大胃王) or “eating vloggers’ (吃播女博主), an online video genre in which hosts will consume extremely large amounts of food (also known as the ‘mukbang‘ phenomenon in South Korea).

Since attempting to eat 17 kg (35 pounds) of meat by oneself – something that is actually done on camera by these kinds of vloggers – does not exactly fit the idea of China’s anti-food waste campaign, these eating vloggers are now being criticized in Chinese media.

Social media platforms such as Douyin (the Chinese Tiktok) have also taken action against the ‘big stomach stars.’ On August 12, the Douyin Safety Center published a video saying the app will not allow any behavior on its platform showing food-wasting or otherwise promoting activities that lead to food loss.

For now, popular Chinese eating influencers will have to adjust the content of their videos. Little Pigs Can Eat (逛吃小猪猪) is one of these influencers who recently has showed smaller portions and more empty plates in her videos.

 

By Manya Koetse, with contributions by Miranda Barnes

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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China Insight

Chinese Online Responses to the ‘TikTok Problem’

Manya Koetse

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Trump’s TikTok and WeChat bans have been all the talk over the past weeks. These are the main viewpoints on the issue as recently discussed on Chinese social media.

News of US President Trump signing executive orders on August 6th to prohibit transactions with TikTok and WeChat parent companies Bytedance and Tencent remains a hot topic of discussion on social media.

Both apps have been described as posing a threat to America’s national security, with President Trump claiming that the app’s use in the United States heightens the risk of potential espionage and blackmailing practices. The apps are also accused of censoring content that is deemed politically sensitive to the Chinese government, and of being channels for disinformation campaigns.

Over the past three years, Bytedance’s Tik Tok app has become super popular in the United States, where it has approximately 100 million active users. Tencent’s WeChat has 19 million daily active users in the United States.

Until Trump’s executive orders go into effect (the September 20th deadline has been moved to November 12th), much is still unclear about the possible consequences of such a ban – and what the (vague) orders actually mean.

Will Tik Tok be sold to an American company? Will TikTok and WeChat be banned from Apple and Google app stores? How will the ban affect those for whom Wechat is an important communication tool in their everyday personal and business life? Will iPhone users in China still be able to use China’s number one app?

While news developments are still unfolding, the “TikTok problem” remains to be a hot topic on Chinese social media, with hashtags such as “How Do You See the TikTok Storm?” (#如何看待tiktok风波#) and “What’s the Main Goal of Trump Banning TikTok?” (#特朗普封禁TikTok的核心目标是什么#) receiving thousands of views and comments.

These are the main takes on the issue in the Chinese online media spheres recently.

 

“It’s all about US (technological) hegemony”

 

During a press conference on August 12, China’s Ministry of Foreign Affairs spokesperson Zhao Lijian (赵立坚) expressed that America was showing “bad table manners” for pressing down on “non-American companies,” and that the Tik Tok app had “nothing to do with national security.”

The fragment went viral on Chinese social media and was reposted many times by media accounts and Chinese web users.

Under the hashtag “Zhao Lijian Responds to the Tik Tok Problem” (#赵立坚回应涉TikTok问题#, 87 million views on Weibo), many Weibo users noted how Zhao did not say that the US was pressing down on ‘Chinese’ companies, but that it is suppressing ‘non-American’ companies (“非美国企业”), suggesting that it is all about American power and hegemony.

A few days earlier, Chinese state media outlet Global Times also published an article stating that, according to legal experts, the US government will be able to order Apple and Google to remove all products owned by ByteDance from app stores around the world based on the recent executive orders.

Illustration by Liu Rui published in a Global Times article on US technological hegemony.

Similar to the statement issued by China’s MOFA, Global Times also writes that the Trump administration “has displayed its ugly face that prevents any non-US company to break the US technological hegemony.” The issue of Chinese apps threatening US “national security” is called “a shameless excuse” that is used to “destroy China’s most successful globalized internet company.”

The phrase ‘non-American companies’ was probably also used by Zhao to emphasize that Bytedance has stepped up efforts over the past year to separate its international Tik Tok business from its China-based operations.

The company took on Disney’s head of streaming efforts Kevin Mayer to become its CEO of TikTok, an app that is different from its Chinese version, Douyin (抖音).  TikTok claims that all US user data is stored in the United States, with backup redundancy in Singapore, and that their data is not subject to Chinese law.

Other media outlets, such as Sina Tech, also stress the fact that any claims of TikTok or WeChat posing a risk to US national security are completely unsubstantiated and are merely another excuse to target Chinese products.

“The success of TikTok undermines the absolute American influence on the internet,” one Weibo commenter (@财务琳姐) writes: “They’ve nothing left to do but to discredit China.” Others say: “They’re beating down on China’s entire internet business to contain China’s developments.”

The same sentiments were reiterated by Zhao Lijian in a press conference on August 18, where he said that the US is engaging in a deliberate attempt to “discredit and suppress” Chinese companies.

 

“Shooting themselves in the foot”

 

A recurring way of responding to executive orders on WeChat and Tik Tok in Chinese online media, is that a possible ban on these Chinese apps would only have negative consequences for the United States.

Directly after news came out on Trump’s executive orders, the question “Apple or WeChat” started trending on Chinese social media, with many assuming that a possible ban would mean that Apple phones will no longer allow WeChat on its phones.

For the majority of people, the question is not a difficult one. As a messaging, social media, payment app and more, WeChat has become virtually indispensable for Chinese web users – they would simply stop buying iPhones.

The hashtag “US Shutting Down WeChat Will Affect iPhone Sales” (#美国封杀微信将影响iphone出货量#) discusses the stance of analyst expert Guo Mingji (郭明錤), who recently said that the ban on WeChat will have major impact on iPhone sales and could possibly lead to a drop of 25-30% in its sales volume.

One Weibo user (@赵皓阳) commented: “For the Chinese market, not using an iPhone could have some impact, but not using WeChat would mean cutting yourself off from society.”

“Ban it, just ban it, Chinese people will just switch to the high-end Huawei phones, and it will beat down Apple – great,” another netizen (@黄多多成长记) wrote.

 

“Shifting public attention away from COVID19 crisis”

 

The COVID19 crisis in the US has been receiving a lot of attention in Chinese media recently, and the American struggle to contain the virus is often linked to Trump’s mission to crack down on Tik Tok, WeChat, and Huawei.

“Focus on your own COVID19 epidemic, instead of trying to divert the attention all the time,” one Weibo user (@凯MrsL) writes. Similar comments surface all over Chinese social media, suggesting that the ‘anti-China’ strategy is just a way to distract the attention from the continuing spread of the coronavirus in the US.

Others write that Trump has made “a terrible mess,” and that “beating China” is the only card he has left to play. “This all about the upcoming elections,” some suggest.

The People’s Daily wrote on August 18 that, since the US is confronted with the severest situation of COVID-19, it should make “greater efforts than any country in the world to cope with the pandemic,” adding: “Surprisingly, it seems that such normal logic doesn’t exist in the minds of certain U.S. politicians.”

 

“An eye for an eye”

 

Amid all different perspectives in which the recent Tik Tok/WeChat ban developments are discussed, there is also one other recurring sentiment that stands out.

Reflecting on the Chinese online environment, there are also multiple Weibo users who argue that China virtually blocked so many American companies from thriving in the Chinese digital market (unless they would be willing to transform their products to comply with China’s strict cyber regulations), that it is not surprising that the US would also strike back to make sure Chinese companies cannot thrive in the American digital environment.

China has already banned so many American products, from Google to Facebook, from Instagram to Pinterest and Twitter, that “there is nothing left to ban” for China: “We have few countermeasures left to take.”

 

By Manya Koetse

Spotted a mistake or want to add something? Please let us know in comments below or email us. First-time commenters, please be patient – we will have to manually approve your comment before it appears.

©2020 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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