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The “Wild West” of Banking in China: Andrew Collier on China’s Shadow Banking

Shadow banking is a halfway house between state and private economics – its “the Wild West of banking in China.”

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In his upcoming book Shadow Banking and the Rise of Capitalism in China, Andrew Collier dives into the growth of ‘shadow banking’ in China and the emergence of a new aspect of capitalism in the PRC – a halfway house between state and private economics that he calls “the Wild West of banking in China.” What’s on Weibo reports.

“If it looks like a duck, quacks like a duck, and acts like a duck, then it is a duck (..) But what about an institution that looks like a bank and acts like a bank? Often it is not a bank — it is a shadow bank.” This is how the concept of ‘shadow banking’ is straightforwardly explained by Laura Kodres in What Is Shadow Banking? The term was first coined in 2007 by economist Paul McCulley at a financial conference.

What does the growth of the free shadow banking market mean in a country that stresses “socialism with Chinese characteristics”? Collier discussed the status quo of shadow banking during a special event at The Bookworm, Beijing, on March 28.

Andrew Collier (@acollier) is an expert in China’s macro economy and the practice of shadow banking. He is the former President of the Bank of China International USA and is a business-focused journalist for, amongst others, the South China Morning Post. His book Shadow Banking and the Rise of Capitalism in China will come out in May 2017.

In simple terms, Andrew Collier explains shadow banking as “capital that is distributed outside the formal banking system” – which can be anything from small-scale lending shops to large-scale trust companies. That they are outside of the “formal” banking system usually means these channels lack a strong safety net and have a different (and lesser) regulatory oversight (Elliott et al 2015).

Although shadow banking only held a fraction of the Chinese economy in the early 2000s, its share in China’s current annual lending is more than substantial (nearly half of all China’s economy annual RMB 25 trillion / $4.1 trillion lending). Risky business? Yes. But since many companies do not have access to formal loans, the practice has become ubiquitous. Some reports also suggest it has an upside as it boosts economic growth by making financial services cheaper and more accessible.

On Sina Weibo, the topic of shadow banking (影子银行) has received a lot of attention lately, with some netizens expressing their worries about the phenomenon: “Shadow banking is becoming a chaos, there is an overflow of people lending money!”

Collier also reinforces this message at The Bookworm, where he shares his experiences with the ‘game’ of shadow banking in China; a messy business where one of the most important questions is: where does the money actually go?

 

“An enormous miniature park? I saw a lot of odd constructions everywhere – I looked around and I started to become very skeptical.”

 

Collier’s interest in China’s shadow banking started in the 2000s when he joined the Bank of China and went on many business trips within mainland China, during which he witnessed how huge amounts of money were being pumped into projects that were often dubious; sport stadiums that would only host one sports event in a year, or a miniature theme park spread over several acres of land.

“At the time it looked like a bit of a joke,” Collier says about his visit to the, ironically, enormous miniature theme park located in Sichuan province: “But it was not just this. Some investments might pay off in the end, but you would see a lot of odd constructions everywhere – and I looked around and I started to become very skeptical.”

Andrew Collier at the Bookworm, March 28.

His ample experience with China’s world of ‘alternative’ banking over the past decades fascinated him so much that he decided to dive into the topic, with the main focus on simply following the money – tracking where it is coming from and where is it going.

But the issue turned out to be not that simple, as many people did not even know what it was they were investing in (“Some kind of bridge somewhere,” one investor once responded to Collier.) Within a few years after Collier’s interest was ignited, the term ‘shadow banking’ first popped up.

“What actually is ‘shadow banking’?”, Collier wondered, and asked himself: “Is it a good or a bad thing for China?”

It turns out that a lot of the important data about shadow banking is simply not there. What ‘shadow banking’ actually means also strongly varies per country and system.

Collier stresses that what is now happening within China is not really the same as what happened at Wall Street in the 1990s, when there were huge amounts of retirement money in the financial system and banks took bad property loans and “put lipstick on a pig” in selling their mortgage products.

Despite all the lingering questions, one thing is crystal clear: shadow banking is big in the People’s Republic of China (PRC). Even if China’s leadership would not necessarily call it ‘capitalism’ (rather: “capitalism with Chinese characteristics”), Collier wonders if shadow banking is the tail that’s gonna wag the dog, with many things happening that might be dangerous for the Chinese economy.

 

“Few people actually know where the money goes and nobody cares. They’re taking a slice of something and have no idea what it means.”

 

So what is actually happening in China, if it is not the “putting lipstick on pigs” phenomenon of 1990s Wall Street? After China’s 2008/2009 economic stimulus, there has been a lot of money flowing through the system. But China’s ‘shadow banking’ was not necessarily a result of that, Collier argues, as it was going on ever since he first lived in China in the 1980s and saw how people were borrowing money from friends and relatives for grain and cotton – actually also a form of shadow banking.

Throughout the years, especially over the past decade, China has seen a huge growth of non-state lending from ‘mom and pop loans’ to huge state-owned bank trusts. It is a problem that mainly stems from a system that was not designed to handle so much cash and was under very limited control.

Collier explains shadow banking as an overflow of water that is trying to find new channels within the PRC, with capital flows going outside of the banking system – through land sales or by borrowing from private markets. Non-bank channels don’t only have lower requirements for capital and liquidity, they also do not have the same low limits on interest rates as formal banks.

In the 1998-2012 period, shadow banking had actually become so big that there was an 18 trillion RMB gap in local government revenues, of which shadow banking was a large part: “Basically it is an unsustainable financial system,” Collier says, with institutions scrambling to either lend the money or to receive it.

According to Collier, there are two main actors that play the main role in the shadow banking ‘game’; Trusts and Wealth Management Products (WMP). WMP are uninsured financial products that often have a high rate of interest. Trusts are basically “banks in disguise with hardly any regulatory oversight,” as Collier says.

“They are, in fact, regulated – but so lightly that western observers will call them shadow banks. They tend to have government (provincial) ownership, and have trillions of outstanding loans.”

Some years ago Collier met with a person from a renowned oil company, who said his job was “managing money.” Upon further talking, Collier realized this person was managing billions and was basically running his own bank; a new reality in present-day China.

A big problem that Collier repeats throughout his talk is that it is not just that important data is missing on shadow banking in China, or that few people actually know where the money goes, but that “nobody cares and everyone thinks it’s all fine; they’re taking a slice of something and have no idea what it means.”

 

“Socialism has become nothing more but a national ideology.”

 

Collier stresses that China’s shadow banking is all about different actors who are halfway in the middle: it is not about state versus private. In China, it is all about partly state-owned parties versus partly private actors.

The upcoming book and Collier’s Bookworm talk come at a time when China is cracking down on shadow banking.

The crackdown is part of the balance that is kept on shadow banking within China, as the central bank of the PRC does not want pressures to get out of control and attempts to minimize risks.

Experts tell Bloomberg that there is a possibility that the People’s Bank of China (PBOC) will directly inject funds into smaller banks if cash shortage continues.

When Collier asks the audience at The Bookworm to raise their hand if they think the system is going to collapse within the coming 5 years, nobody raises their hand. Apparently, many people don’t worry too much about the negative effects of shadow banking on China’s financial system in the years to come.

On Weibo, many netizens are more skeptical, not just because of the risks involved in shadow banking, but also of what it means in China today.

One commenter says: “In fact, China is not socialist at all when it comes to economics. Right now, it is actually a capitalist country – socialism has become nothing more than a national ideology.”

– By Manya Koetse

Sources and further reading

Collier, Andrew. 2017. “Shadow Banking and the Rise of Capitalism in China.” Palgrave Macmillan.

Elliott, Douglas, Arthur Kroeber and Yu Qiao. 2015. “Shadow Banking in China: a Primer.” Economic Studies, the Brookings Institution.

Kodres, Laura E. 2013. “What Is Shadow Banking?” International Monetary Fund (50/2): June https://www.springer.com/us/book/9789811029950#aboutBook [28.3.17].

©2017 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, Sino-Japanese relations and gender issues. Contact at manya@whatsonweibo.com, or follow on Twitter.

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The Anti “Halalification” Crusade of Chinese Netizens

Discussions on the so-called ‘halalification’ of China have flared up after delivery app Meituan introduced separate boxes for its halal food deliveries this week. Many netizens see the growing prevalence of halal food in China as a threat to a unified society and feel that featuring special services for Muslims is discriminatory against non-Muslims.

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Discussions on the so-called ‘halal-ification’ of China have flared up after delivery app Meituan introduced separate boxes for its halal food deliveries this week. Many netizens see the growing prevalence of halal food in China as a threat to a unified society and say that featuring special services for Muslims is discriminatory against non-Muslims.

The “halal-ification” (清真泛化) of food products in China has been a hot issue on Chinese social media over the past two years. Discussions on the spread of halal food in China broke out again this week when food delivery platform Meituan Takeaway (美团外卖) locally introduced a special halal channel and separate delivery boxes for halal food.

What especially provoked online anger was the line used by Meituan to promote its new services, saying it would “make people eat more safely” (Literally: “Using separate boxes for halal food will put your mind at ease.”)

The image of Meituan’s promotional campaign for halal food that went viral on Chinese media: “Make you eat more assured.”

Many netizens said the measure discriminates against non-Muslims. They called on others to boycott Meituan and to delete the app from their phone. In response, the topic ‘Is Meituan Going Bankrupt?’ (#美团今天倒闭了吗#) received over 3.7 million views on Weibo, with thousands of netizens discussing the issue under various hashtags.

 

RAISING AWARENESS ABOUT ISLAMIC DIETARY LAW

“China is a secular country ruled by an atheist Party, and firmly boycotts Islamic laws.”

 

In 2016, halal products were already at the center of debate on Chinese social media when officials called for national standards on halal food (definition here).

A popular Weibo imam called Li Haiyang from Henan wrote a post in March titled “Raising Awareness about Islamic Dietary Law” (“关于清真食品立法的几点认识“), in which he discussed the importance of national standards on halal food in China.

Li Haiyang, who is part of China’s Henan Islam Society (河南省伊斯兰教协会), wrote that all Muslims should follow the classic rules and abide by their beliefs, of which Islamic dietary laws are an important part, and that the PRC cannot discriminate against Muslim ethnic groups by refusing to legally protect Muslim halal food.

At the time, the imam’s post was shared over 500 times and besides much support, it also attracted many comments strongly opposing the imam’s views. A typical comment said: “China is a secular country ruled by an atheist Party, and firmly boycotts Islamic laws!”

Despite backlash, there are multiple accounts on Weibo dedicated to informing people about halal food, such as ‘China Halal Food Web’ (@中国清真食品网 3100+ fans) or ‘Halal Cuisine Web’ (@清真美食网, 3950 fans).

 

“HALALIFICATION”

“Halalification is not good for national harmony and not conducive to the healthy development of Chinese Islam.”

 

In Chinese, the word for ‘halal’ is qīngzhēn 清真, which also means ‘Islamic’ and ‘Muslim.’ The two characters the word is composed of (清 and 真) literally mean ‘clean’ and ‘pure.’ The various meanings of the Chinese word for ‘halal’ somewhat complicate discussions on the matter.

In the halal food debate on Chinese social media, the term qīngzhēn fànhuà (清真泛化) is often used – a new term that popped up in Chinese media in 2016. It basically means ‘halal-ification’ or ‘halal generalization,’ but because qīngzhēn also means ‘Islamic,’ it can also imply ‘Islamization.’

And that is precisely what is at the heart of the discussion on the spread of halal food on Chinese social media: those who oppose the spread of halal food in the PRC connect the normalization of Islamic dietary laws to an alleged greater societal shift towards Islam. The spread of ‘Islam’ and ‘halal food’ are practically the same things in these discussions through the concept of qingzhen.

Another issue that plays a role is the idea that ‘qingzhen‘ stands for ‘clean and pure’ food. This distinction between halal and non-halal food implies that while the one is clean food, non-halal food is ‘unclean’ and ‘dirty,’ much to the dismay of many net users. Some people suggest that the name of ‘halal food’ should be changed to ‘Muslim food.’

On Baike, Baidu’s Wikipedia-like platform, the page explaining the term qīngzhēn fànhuà 清真泛化 says: “The term [halalification] originally only referred to the scope of the specific diet of [Muslim] ethnic groups, and has now spread to the domains of family life and even social life beyond diet, including things such as halal water, halal tooth paste, and halal paper towels.”

Advertisement in Ningxia public transport for halal paper towels.

The Baike page explains that halal products are hyped by companies that are merely seeking to gain profits. It also says that halalification is “not good for national harmony” and “not conducive to the healthy development of Chinese Islam.”

Although there are no official government records of how many people practice Islam within the PRC, it is estimated that there currently are around 23 million Muslims in China, which is less than 2% of the total population. According to Pew Research (2011), because China is so populous, its Muslim population is expected to be the 19th largest in the world in 2030.

 

HALAL WORRIES

“State-financed products should not be religious.”

 

Most Chinese food ordering apps now have a special halal section; Chinese supermarkets provide a wide range of products labeled as ‘halal’ and there are ample halal restaurants in Chinese cities.

But many people on Chinese social media feel that the spread of halal products is going too far. Legal service app Ilvdo (@律兜) published an article on Weibo this week that mentions that many Chinese consumers might buy halal products such as halal ice cream or milk without even knowing it: “You perhaps drank [halal] water and indirectly funded Islam religion – because the companies that have halal certifications have to pay Islamic organizations for them.”

On Weibo, there are some popular accounts of people opposing the spread and normalization of halal food in China. An account named ‘No Halal’ (@清真发言) has over 143.500 followers. The ‘No Halal Web’ (@非清真食品网) account has nearly 90.000 fans. These accounts regularly post about halal products in Chinese shops and restaurants and link it to the spread of Islam religion in China.

The account ‘No Halal Web’ recently posted a photo taken at a Shanghai restaurant that shows a table with a sign saying “Reserved for Halal Customers Only.”

“Table reserved for Halal customers only.”

The ‘No Halal Web’ account wrote: “This already is Muhammed’s Shanghai.” They later stated: “In the Islam world, the demands of Muslims are not as simple as just wanting a mosque, they want their environment to be Islamic/halal.”

Verified net user ‘Leningrad Defender’ (@列宁格勒保卫者, 254465 fans) posted photos of a segregated ‘halal’ checkout counter at a Jingkelong supermarket in Beijing’s Chaoyang area, wondering “is this even legal”?

‘Halal’ checkout counter at a supermarket in Beijing’s Chaoyang area.

A Weibo user named ‘The Eagle of Great Han Dynasty’ (@大汉之鹰001) posted a photo on July 20 showing a bag of infant nutrition from the China Family Planning Association that also has a ‘halal’ label on it. He writes:

“What is the Family Planning Committee doing? Why is this halal? This is Jilin province, are we all Muslims? What is behind this, can the Committee tell the public? This is financed through the state, the public has the right to know!”

Infant product by the Family Planning Committee that is labeled ‘halal.’

Others also responded to the photo, saying: “State-financed products should not be religious.”

 

THE MEITUAN INCIDENT

“Only when we as the Chinese people integrate together, can our country be unified as an undivided family.”

 

Although there is much opposition to the spread and regulation of halal food in China, the halal food industry also provides many business opportunities for companies who are eager to serve the millions of customers wanting to buy halal.

Popular food delivery platform Meituan faced furious backlash this week when it introduced its special halal food services. The so-called ‘Meituan Incident’ (美团事件) became a heated topic of debate on Weibo and Wechat.

One of the key arguments in the debate is not so much an opposition to halal food in itself, but an opposition to a normalization of ‘halal food’ (with the complicating factor that the Chinese qingzhen also means ‘Islamic’ and ‘clean and pure’), which allegedly discriminates against non-Muslims and increases social polarization. Many netizens said that if there are special boxes for food for Muslims, there should also be special boxes for food for Buddhists, Daoists, atheists, etc.

One well-read blog on Weibo said:

“National identity, in the end, is cultural identity (..). What is needed for the long-term stability of a country is integration [of the people] rather than a division [of the people] – let alone isolation. The national law should [therefore] turn ‘halal food 清真食品’ into ‘Muslim special food 穆斯林专用食品.’ This would make sure that Muslims don’t eat anything they shouldn’t eat, and it also liberates those (..) who aren’t religious. The law could confirm that there is a special kind of food designed for Islamic religious people to eat, instead of asking non-religious people to eat it as well. (..) There are more and more atheists. We should no longer distinguish people by saying he is a Daoist, he is Buddhist, that’s a Muslim or a Christian..in the end we shouldn’t even distinguish people as being Han or Zhuang or Miao or Hui or Manchu. Only when we as the Chinese people integrate together, can our country be unified as a harmonious and undivided family.”

The blog, that was viewed over 88.000 times, received much backing from its readers. One person wrote: “As there is now a national resistance against Islamization and religious segregation, how could the Meituan incident not cause anger amongst the people?”

It is not the first time that the separation of facilities/services for Muslims versus non-Muslims triggers online discussions in China. In September last year, the introduction of special “Muslim-only” shower cabins at a Chinese university also provoked anger about alleged “Muslim privilege.”

 

TRIVIAL MATTER OR SOCIAL SHIFT

“Today it is about separate boxes for food; tomorrow it might be about separate seating areas in restaurants. And what’s next?”

 

On Thursday, Meituan Takeaway officially responded to the controversy through Sina Weibo, saying that the promotion of halal delivery boxes was a local and unofficial activity by one of its agents in Gansu province. It also said it would strengthen supervision of its agents and their promotional material.

But not all netizens believed Meituan’s explanation. One person said: “I am located in Inner Mongolia, and your Meituan [here] also promotes the two separate delivery boxes.”

Other netizens also posted photos of Meituan’s food delivery rival Eleme also using special “Halal only” delivery boxes.

Image of food delivery box that says “special use for halal food.”

Among all the negative reactions and the resistance against the spread of halal food, there are netizens who praise halal food for being tasty and who do not get what all the fuss is about. A female netizen from Beijing wrote:

“Why are so many brain-dead people opposing Muslims these days? How does Meituan’s separation of halal food hinder you? What do you care if your yogurt is halal? If you don’t want to eat it, don’t eat it. There are plenty of people who will. Use your brain for a bit. Not all Muslims are extremists; just as not all people from the Northeast are criminals.”

But there are many who think Meituan’s separate boxes are no issue to disregard. One young female writer says:

“(..) Under the current national policy of protecting ethnic minorities, Muslims enjoy special privileges in the name of national unity. If this continues for a long time, the inequality inevitably will spread to other domains of society. Today it is about separate boxes for food; tomorrow it might be about separate seating areas in restaurants. And what’s next? Segregated neighborhoods? Trains? Airplanes? It might seem like a trivial matter, but if you ignore this, then those who are privileged now will go on and get greater privileges. The distancing of Muslims will only grow. I’m not saying this to alarm you. It’s self-evident that unequal benefits and the privilege of an ethnic group will eventually create conflicts between the people.”

Amidst all ideological arguments, there are also those who say it is all about the money. In the article published by Ilvdo, the author says about the Meituan incident: “Why do the boxes need to be separated? Because in general, Muslims feel that what we eat is “dirty” … but the product increase cost is shared by all the customers – so not only does it make us feel “dirty”, we also spend more money.”

They later say: “What we want is national unity, not religious solidarity. (..) You have your freedom of religion, which app I use is my freedom. Separate boxes and other special services will ultimately be reflected in the costs, and I do not want to pay religious tax. Luckily I have the freedom to delete this app and stop using it.”

By Manya Koetse

©2017 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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Behind the Rise and Fade of China’s Literary Sensation Fan Yusu

Beijing migrant worker Fan Yusu became an overnight sensation when her autobiographical essay “I Am Fan Yusu” went viral on Chinese social media in late April 2017. The author has since gone into hiding and her essay has been removed. What’s behind the sudden rise and silent disappearance of China’s biggest literary sensation of 2017?

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Beijing migrant worker Fan Yusu became an overnight sensation when her autobiographical essay “I Am Fan Yusu” went viral on Chinese social media in late April 2017. The author has since gone into hiding and her essay has been removed. What’s behind the sudden rise and silent disappearance of China’s biggest literary sensation of 2017?

Fan Yusu was the name on everybody’s WeChat in late April and early May of this year. An essay titled “I Am Fan Yusu” (“我是范雨素,” full translation here) spread like wildfire over Chinese social media, seemingly coming out of nowhere.

In some ways, the popularity of the essay in China is comparable to the recent hype over Alex Tizon’s essay “My Family’s Slave” on Western social media; this non-fiction story about ‘Lola’ Eudocia Tomas Pulido from the Philippines, who lived as a modern slave with an American family for 56 years, went viral on Twitter and Facebook in May. It gripped its many readers for exposing poignant problems in modern-day society that usually stay behind closed doors.

Fan Yusu’s account, in its own way, also revealed the harsh realities of an ever-changing society. China has an estimated 282 million rural migrant workers. The autobiographical tale focuses on the difficult childhood and adult life of one person amidst these 282 million – Fan Yusu herself.

Fan Yusu on April 25, 2017. Photo by Sina Finance.

“I Am Fan Yusu” was first published on Noonstory.com, an online literary platform by Shanghai news outlet Jiemian. A year prior to its publication, one of their journalists (Dan Bao 淡豹) headed out to Picun for an interview. Picun is a migrant village on the outskirts of Beijing, not far from the capital’s airport. It was here that Jiemian learned about the local literary club and its many poems and essays. One of these works titled “My Brother’s Dream” particularly stood out to them. It was written by the 44-year-old Fan Yusu, and the editor soon decided to publish her first story (“农民大哥”) in May of 2016.

A year later, Jiemian published a second essay by Fan, not expecting that it was this piece that would soon hit three million views and go viral across the country.

 

HER STORY

“Am I living in the Qing dynasty or is this new socialist China?”

 

In “I Am Fan Yusu“, Fan recounts her impoverished childhood in a rural village in Xiangyang, Hebei. Fan came to Beijing at the age of 20. Being a clumsy waitress with low expectations for her future, she rushed into an unhappy marriage with an alcoholic husband and had two daughters. When her marriage turned violent, she returned to her hometown for help. It was here that she discovered she was “merely a passer-by” in the village where she was born and raised. Her brothers could, but were not willing to help; her mother wanted to, but could not help.

Being the youngest of five siblings, Fan already learned at a young age that men have the final say in China’s countryside. Although her mother was a powerful local politician for more than forty years, she resigned from her official post the moment Fan’s oldest brother objected to his mother’s work.

The twenty-something Fan then returned to Beijing and took on a job as a nanny in a rich family, leaving her own two daughters behind in the village of Picun, where many other children grow up without a mother. She writes about life as a babysitter for the child of her boss’s mistress, while his dressed-up young wife waits on the sofa every night for her husband’s return: “I wondered if I was living in the Qing dynasty or if this was new socialist China.”

Gate at village of Picun, Beijing.

Despite her low educational background, Fan always had a thirst for knowledge and became a well-read person with a love for writing and literature. “If a person cannot feel happiness or satisfaction in life,” she writes: “they simply aren’t reading enough novels.”

 

ONE VOICE OUT OF MILLIONS

“We are all Fan Yusu.”

 

Thousands of netizens shared Fan’s essay shortly after it was published online. They responded to it with praise, saying it was a “unique piece of work” and even “Nobel-Prize worthy.” Why did specifically this essay become so hyped on Chinese social media?

The answer can be found in both the person of Fan Yusu herself as in her essay. The piece appealed to people because it uses simple yet powerful language. Some called it “unpolished”; a reflection of Fan’s own life and society at large.

The fact that Fan Yusu is in her forties, a single mother of two, and a migrant worker who has had a difficult life, makes her story carry more weight. She represents a voice that is generally lost in a media environment that is dominated by the middle class.

The popularity of this account also shows that a migrant worker with a low educational status can still be a successful writer. At a 2015 social gathering, Fan already mentioned that “‘migrant worker’ is not a derogatory term, just as ‘artist’ is not an elite one.”

“I Am Fan Yusu” also touches upon numerous issues such as domestic violence, divorce, gender inequality, the poor and rich divide, and a lacking healthcare system. These being issues that a lot of people have to deal with, the catchphrase “We are all Fan Yusu” (“我们都是范雨素”) soon made its rounds on WeChat and Weibo.

 

A NEW LITERARY MOVEMENT?

“Many in China’s elite literary circles do not touch upon society’s pain points the way Fan does.”

 

Fan Yusu’s account comes at a time when there is a surge of stories that tell the individual stories of ordinary people. An essay on Beijing’s crazy housing market titled “Housing Madness” (“房疯”) by an author named Chongzi (虫子) also saw its fair share of success in April of this year.

There is a growing appetite for these types of stories, and non-fiction websites such as Noonstory or Guyu Story provide a platform for them.

The popularity of such stories seems to relate to a growing weariness with established literature. On Weibo, many people shared their overall discontent with China’s literary circles in response to Fan’s essay. Many said they think of Chinese literature as being elitist and out of touch with ‘real life.’

Renowned author Zheng Shiping (Yefu) praised Fan’s writings in a recent interview.

This idea was backed by renowned novelist Zheng Shiping (a.k.a. Yefu 野夫), who applauded Fan’s writing in an interview in May. He criticized Chinese modern literature, saying that many in those “elite circles” never touch upon society’s pain points in the way Fan does.

Some Weibo netizens responded with sarcasm, saying: “Literature is literature. No matter if it touches upon society’s pain points or not, it always needs to follow the ideology of the Propaganda Department.”

 

ROOTLESS WOMEN OF CHINA

“A married daughter is like water that has been poured.”

 

Another major factor that has contributed to Fan’s sudden success, is that her account shows the disadvantaged position of women in China’s countryside. Rural women are often caught in a vulnerable position, facing various economic and social obstacles that hinder their emancipation.

“A married daughter is like water that has been poured,” is a saying about countryside women who go out to marry. They often leave the house empty-handed. Fan addresses this ‘floating life’ of rural women in her essay. Women from the countryside are ‘rootless’ because their status, location, and economic rights change depending on the role they have as daughter, bride, wife, daughter-in-law, or mother. All land ownership is generally in name of the fathers, husbands, and sons (Also see this article on China’s ‘rootless women’).

When a woman marries outside her hukou (household registration permit), she usually has to give up any benefits or rightful land ownership she had in her previous household. No matter if a woman gets married into a different household or joins China’s mass urbanization, she often is bound to end up in the lowest layers of society.

 

WHAT HAPPENED TO FAN YUSU?

“Why is Fan Yusu censored?”

 

Only three days after Fan Yusu’s essay went online and viral, the text disappeared from its original source [editor’s note: the essay is still available on some websites]. Different Chinese media reported that Fan Yusu, overwhelmed by the media’s attention, had gone into hiding in a mountainous village.

It was not just Fan’s essay, but also its reviews that were soon “harmonized” (被和谐, meaning ‘censored’). One popular Weibo blog titled “Why I Like Fan Yusu” was no longer accessible as of May 6 for “violating the rules” on Weibo. The sudden disappearance of the essay and its direct reviews also made many netizens wonder: “Why is Fan Yusu censored? (范雨素怎么被和谐了?)”

Although the real reasons are not exposed, there is ample speculation. In her account, Fan writes about her problems with social anxiety. The sudden attention for her personal life may have been so overwhelming that some suggested it is Fan herself who wanted her essay removed. Especially since there were also journalists who went to her Hebei hometown to interview her mother – something that she dreaded. “I’ve run into a sandstorm,” Fan Yusu reportedly told her friend about the flock of journalists swarming into her village.

But there were also those who said that reasons for censorship perhaps related to the fact that the account revealed details about the personal life of her former boss, a rich and powerful man who may have put a halt to online publications.

Another plausible option is that the publication was removed due to its criticism on Chinese society and politics. “Sharp criticism is just not allowed,” some people commented: “She is very realistic, and exposes some gloomy aspects [of society].” Although Chinese state media initially lauded Fan’s essay, it is possible that the hype surrounding it just grew too big too fast.

The sudden rise and disappearance of Fan Yusu has some resemblance to the hype surrounding Chai Jing and her documentary “Under the Dome” in 2015. This self-funded documentary on China’s pollution problem originally was supported by Chinese state media. It received over 200 million views before it was abruptly removed from Chinese websites a week after its release.

At the time, Greenpeace East Asia’s Calvin Quek told Bloomberg that it might had to do with the timing, just before the start of China’s plenary sessions: “It’s a reflection of some kind of political infighting that they chose to shut it down. The government censored the film because it got 200 million views, and they did not want it to dominate the twin conferences,” he said.

In Fan’s case, the hype came just before the Beijing One Belt, One Road Summit, a very significant event during and around which Chinese media emphasized the idea of China as a responsible and harmonious global leader.

Although Fan Yusu’s ‘sandstorm’ has gradually blown over by now, she still has not returned to her Picun home according to the latest media reports. Fan might have disappeared from the limelight for now, she is not forgotten.

Worker’s culture home in Picun (by Southern Weekend / 南方周末).

Fan Yusu is the voice of a social class often ignored; she is a shining example that migrant workers can influence and shape the world of Chinese literature today. The heightened media attention for “the writers of Picun” (article in Chinese) is just one manifestation of how Fan Yusu has already made her mark – an unerasable one.

– By Manya Koetse

©2017 Whatsonweibo. All rights reserved. Do not reproduce our content without permission – you can contact us at info@whatsonweibo.com.

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