FEBRUARY, 2019 The Information Office, International Department of the CPC Central Committee - Beijing Review
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The Information Office, International FEBRUARY, 2019 Department of the CPC Central Committee
1 FEBRUARY, 2019
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Students of a primary school in Baiyun Township of Rongshui Miao Autonomous County, south China’s Guangxi Zhuang Autonomous Region
For the People
Chinese Government.
Early in 2013, in his second year as
general secretary of the CPC Central
Committee, Xi Jinping stressed the impor-
Improving people’s livelihood has been the priority of tance of pursuing progress while ensuring
stability and improving people’s living stan-
the agenda of the Chinese Government dard.
“The CPC seeks happiness for the
By Lan Xinzhen Chinese people,” Xi said at an NPC panel
discussion. “Whatever issues the people
are unhappy about or dissatisfied with, we
W
ang Yongnian, an 87-year-old resi- Conference National Committee, also must work hard to solve them.”
dent in the Jiaxinglu Community known as the Two Sessions in China, many The coherence of this plan has been
in Hongkou District, Shanghai, policies related to the enhancement of achieved through various policies. At the
receives day-time care from a community people’s livelihood were established. First Session of the 13th NPC last year, Xi
elderly care center at a resident service This year, as the Two Sessions opened, emphasized taking more concrete mea-
station, which also has an activity room, a there is a noticeable improvement in peo- sures in ensuring and improving people’s
healthcare center and a dining hall. He is ple’s livelihood, with a more pleasant living living standard, strengthening and develop-
satisfied with the services provided by the environment, better medical and elderly ing new approaches to social governance,
station. There are five such stations in the care services and more stable jobs under a winning the battle against poverty, promot-
community, and 35 in the entire district. more reliable social security system. ing social fairness and justice, and making
Residents there can enjoy convenient and steady progress in ensuring people’s ac-
quality services within a distance of around First priority cess to childcare, education, employment,
15-minute walking. medical services, elderly care, housing and
In 2018, during the annual sessions of Ensuring the people live a better social assistance.
the National People’s Congress (NPC) and life has always been the pursuit of the Looking at government work reports
the Chinese People’s Political Consultative Communist Party of China (CPC) and the delivered by the premier of the State Council,
FEBRUARY, 2019 2
China’s cabinet, to the NPC in recent years, a ous programs to address employment for
large part of the content has been devoted university graduates and other targeted
to policies surrounding people’s livelihood. groups. One of the initiatives aims to se-
One of the fundamental purposes of China’s lect graduates to work at the community
economic development is to enhance peo- level throughout the country. The policy of
ple’s livelihood and welfare. secured loans for entrepreneurs has also
been improved to create more jobs by en-
A combination of measures couraging business startups.
In 2018, the government continued to
The year 2018 not only marked the raise basic pension payments for retirees
40th anniversary of China’s reform and and basic pension benefits for rural and
opening up, but also the first year of imple- non-working urban residents. China is com-
menting Xi Jinping Thought on Socialism mitted to raising the personal income tax
With Chinese Characteristics for a New Era. threshold, creating expense deductions for
According to the Report on the Work of items like children’s education and treat-
the Government 2018, multiple measures, ment for serious illnesses.
such as boosting employment, increasing Over the past year, China has promoted
incomes, strengthening the social security the integrated development of urban and
system, developing fair and high-quality rural compulsory education and contin-
education and carrying out the Healthy ued to tip funding for education toward
China 2030 initiative, were introduced to
improve people’s living standard.
poor areas and weak links to ensure that
everyone has equal access. By raising ba-
523.92 million
Faced with new challenges in eco- sic medical insurance and serious illness Number of people
nomic development in 2018, the Party and insurance benefits, strengthening medical participating in basic
the Central Government ranked improving staff training and developing new ways
employment as a top priority. The State of conducting food and drug oversight, pension insurance
Council emphasized stable employment the government aims to maintain the program for urban
in a circular, proposing a series of policy physical and mental health of its people. and rural residents in
measures, such as supporting the stable Environmental protection law enforcement 2018, an increase of
development of enterprises, boosting em- has been enhanced and various pollution
ployment and business startups, launching control methods adopted, ensuring further 11.37 million
a large-scale vocational skill training ini- improvement in the working and living en-
tiative, and offering timely assistance to vironment of Chinese residents.
unemployed people and laid-off workers. Governments at all levels have
In addition, the government put forth vari- strengthened efforts to meet people’s basic 2,663
s
s
Number of higher
learning institutions in
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2018
13.61 million
Number of newly
added urban jobs in
2018
4,050,000 km
Total length of roads
in rural areas by the
end of 2018
College graduates seek jobs at a job fair in Wuxi, east China’s Jiangsu Province, on January 19
3 FEBRUARY, 2019
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A baby is vaccinated in a disease
control and prevention center in
Anping County of north China’s
Hebei Province on April 25, 2018
living needs, steadily raising urban and rural an annual income of nearly 100,000 yuan stability. China’s per-capita disposable in-
subsistence allowances, social assistance ($14,965), nine times that of 2016, and were come was 28,228 yuan ($4,165) in 2018,
benefits and benefits for entitled groups, successfully lifted out of poverty. up 6.5 percent year on year in real terms
so that care and compassion can reach Official data from the National Bureau after deducting price factors. Compared
everyone. The government has stepped of Statistics shows that China’s 2018 GDP to 2017, more than 13.86 million rural
up targeted poverty alleviation, and more reached 90.03 trillion yuan ($13.28 trillion), residents have been lifted out of poverty in
has been done to develop local industries, indicating economic progress and social 2018. CI
education and healthcare. Measures have
been tailored to individuals and households
to ensure that seniors and people with
disabilities or serious illnesses receive the Ownership of 240 249.1
assistance they need.
Government expenditure in 2018 was Major Durable
21 trillion yuan ($3.14 trillion). The struc-
ture of budgetary spending showed that Consumer Goods
more financial allocations were used for
the public good to benefit people, with
(Unitsper100Households)
spending inclined toward innovation-driven 109.3
development, agriculture, rural areas and 96.1
its residents, and the improvement of the 78.6 85
living standard. 56.6 59.2 51 56.4
29.7 33
Better life
2017 2018
As Wang proclaimed his satisfaction
with life in the community-based care Automobiles Electric bicycles Mobile Air conditioners Kitchen Water heaters
telephones ventilators for shower
center, Lu Yihe and his family, who live in
Lianzhang Village, Lianjiangkou Township,
Yingde City in south China’s Guangdong
Province, began a new life after rising out
of poverty. Back in 2016, they were still Growth rate (y.o.y.)
poverty-stricken.
With the implementation of the poverty
alleviation policy and the increased spend- 11% 4.8% 3.8% 13.7% 10.7% 8.1%
ing on improving people’s living standard, Lu
began his career in the farming and breeding
industry with the help of the local govern- (Source: National Bureau of Statistics; designed by Pamela Tobey)
ment. In 2018, Lu and his family achieved
FEBRUARY, 2019 4
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Zhang Li, who heads a local agricultural cooperative, uses his phone to adjust the temperature in a greenhouse for vegetables in Taiyuan, Shanxi Province, on January 22
Strength From the Soil
Agriculture and rural development get fresh policy support By Li Xiaoyang
F
rom the rise to the recent ease of ture, rural areas and farmers’ welfare as the be enhanced by harnessing technology
Sino-U.S. trade frictions, the soybean top agenda, for the 16th year in a row. and optimizing the agricultural structure.
has been a hotly contested topic “The toughest task facing China in Poverty will be tackled and the environ-
throughout the period. While affirming that terms of eradicating poverty lies in these ment in rural areas improved. In addition,
the two countries are important partners in issues,” Du Zhixiong, Vice Director of the ensuring a stable supply of green and high-
the soybean trade, China has highlighted Rural Development Institute at the Chinese quality agricultural products gets priority
the importance of increasing soybean Academy of Social Sciences, told Beijing as well as improving the livelihoods of rural
output at home as it strives to boost the Review. residents.
domestic agricultural sector. A sound agricultural sector and steady Han Changfu, Minister of Agriculture
Soybean planting is only one of the rural development are essential for under- and Rural Affairs (MARA), told a press
many issues covered by the No.1 Central pinning the economy and taking the nation conference on February 20 that agricul-
Document released on February 19, the closer to its goal of building its society into tural and rural development registered
first policy statement of the year jointly a moderately prosperous one by 2020, the steady progress in 2018, which provided
released by the Central Committee of the document says. strong support to China’s sound socio-
Communist Party of China and the State As it is introduced, the output and economic growth. “Since China is facing
Council. It keeps issues relating to agricul- efficiency of agricultural production will stronger downward economic pressure
s
s
5 FEBRUARY, 2019
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Women from the Miao ethnic group produce embroideries as souvenirs for tourists in Fenghuang County, Hunan Province, on February 18
and a changing external environment with those in short supply, such as soybeans to agribusinesses. New agricultural produc-
mounting risks and challenges, it needs to and dairy products. The target is to keep tion entities such as household farms and
maintain its focus on agriculture and en- grain-growing areas at 110 million hect- agricultural cooperatives are to be devel-
able it to further contribute to domestic ares and arable land area over 120 million oped.
economic growth,” he said. hectares. By 2020, over 53.33 million Du stressed that individual agricultural
hectares of high-standard farmland will households should also be supported.
Focus on modernization be developed. “Individual producers need to be con-
Farming will be modernized to improve nected more closely with cooperatives,
According to Zhang Hongyu, Vice agricultural output and efficiency. Liao leading enterprises and service providers in
President of the China Institute for Rural Xiyuan, an official with the MARA, said tech- production chains so that farmers can get
Studies, Tsinghua University, this year, a nological innovation is key to promoting more benefits,” he said.
priority for the authorities is to keep grain agricultural modernization. The document While the rural economy is restruc-
production above 600 million tons to en- stresses making breakthroughs in key ag- tured, tourism and leisure agriculture,
sure grain security for the large population. ricultural technologies and independent combining sightseeing and recreation,
Official data shows in 2018, total grain out- innovation in areas such as smart agricul- are being promoted to boost the rural
put reached 658 million tons. ture, heavy agricultural machinery and economy. MARA has developed nearly 400
The policy document emphasizes green agricultural inputs. demonstration counties with rural sightsee-
securing the supply of major agricul- It also promises a new subsidy policy ing and recreational facilities nationwide.
tural products and boosting production to better protect farmers’ interests and en- Last year, tourists paid 3 billion trips to rural
of high-quality agricultural products or courage financial institutions to lend more destinations, according to official data. The
658 million tons 13.86 million 14,617 yuan
Total grain output in 2018 Number of people lifted Per capita disposable in-
out of poverty in 2018 come of rural households,
up 8.8 percent
FEBRUARY, 2019 6
promotion of modern agricultural product ter they become registered urban dwellers. Belt and Road Initiative will be enhanced.
processing, which has industrialized agri- To prevent rural residents from slipping Imports of agricultural products in short
cultural produce, also augments farmers’ back into poverty, rural industries with local supply domestically will be expanded and
profits by improving the value added of features will be started to diversify farm- import channels diversified. More multi-
their products. ers’ income channels. E-commerce has a national agricultural corporations will be
“We need to fully utilize the natural and major role in this. The boom in e-commerce fostered.
cultural resources of rural areas to diversify has created new opportunities for rural According to Jiao Shanwei, Editor in
local economic drivers, develop full-fledged development and both rural income and Chief of the grain portal Cngrain.com,
product-processing chains, and tap into consumption have risen. China has been opening wider to foreign
the potential of agriculture for deep inte- According to Ministry of Commerce investors in the agricultural sector over the
gration of rural industries,” Ye Xingqing, a spokesperson Gao Feng, domestic on- past two years. “Foreign enterprises’ partici-
researcher with the Development Research line sales of agricultural products totaled pation will help modernize the agricultural
Center of the State Council, said. 230.5 billion yuan ($34.4 billion) in 2018, sector, achieve sustainable development of
up 33.8 percent from the previous year. land, and improve the quality of domestic
Improved rural life Online retail sales amounted to 1.37 agricultural output,” he said.
trillion yuan ($201.47 billion) in rural ar- China produces only 16 million tons
At the Central Economic Work eas with a year-on-year growth of 30.4 of soybeans domestically every year while
Conference in 2017, the annual meeting percent, indicating the consumption po- the domestic demand can reach 110
to set the national economic agenda, the tential of rural buyers. million tons annually. Of this, about 90
authorities said preventing major risks, Developing the digital economy in rural percent has to be met through imports,
pollution control and targeted poverty alle- areas will support agricultural development making China the world’s largest soybean
viation would be the “three tough battles” and reduce the urban-rural income gap, Qu importer, according to official data. The
for the next three years. Dongyu, Vice Minister of Agriculture and document says domestic soybean pro-
The 2019 policy document also Rural Affairs, said. duction will be expanded by increasing
emphasizes the importance of poverty Poverty alleviation also requires new planting areas.
alleviation to advance rural residents’ jobs and vocational training for rural labor Yin Ruifeng, an analyst with MARA, said
well-being. In 2018, 13.86 million people forces, the document notes. New busi- rice and corn produce a greater net profit
were lifted out of poverty, according to nesses will be encouraged and supporting than soybean. The output and quality of
the National Bureau of Statistics. To cre- platforms built up in rural areas. domestic soybean can be improved only by
ate a moderately prosperous society in Apart from raising the rural income, harnessing advanced technology.
all respects by 2020, there will be further measures will be taken to upgrade rural life. According to the soybean rejuvenation
policies to improve the living standards of Infrastructure, including roads, grids and lo- plan proposed in the document, planting
all rural residents living below the national gistics networks, will be improved, pollution will be increased in the traditional soybean-
poverty line of a 2,300-yuan ($338) income treatment enhanced, and public services growing regions of Heilongjiang, Anhui and
annually. such as education, culture, healthcare and Henan provinces. The target is to expand
In extremely poor regions, residents will social security boosted. the soybean-planting area to 9.33 million
be given financial assistance, while fami- hectares and increase the soybean self-
lies living in inaccessible areas with little A more open market sufficiency rate by 1 percentage point by
earning opportunities will be relocated. 2020.
Measures will be taken to nurture talent in Foreign investment in various sectors, According to Han, China’s soybean sup-
such areas. including modern agriculture, is being plies will still partially rely on imports given
According to the National Development encouraged, according to a draft list of en- its large domestic demands.
and Reform Commission, 100 million rural couraged industries for foreign investment “Along with other sources, the United
residents will become urban dwellers by released on February 1. States will continue to be an important
2020. However, the relocated people will The policy document says agricultural partner of China in terms of the soybean
be allowed to keep their rural land even af- cooperation with countries involved in the trade,” he said. CI
5,535 billion yuan 1.37 trillion yuan 230.5 billion yuan
Retail sales of consumer goods in Online retail sales in rural areas, Domestic online sales of agricul-
rural areas, up 10.1 percent up 30.4 percent tural products in 2018, up 33.8
percent
7 FEBRUARY, 2019
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President Xi Jinping addresses a Spring Festival reception at the Great Hall of the People in Beijing on February 3
Unchanged Feelings
The Spring Festival in China continues to transition, but the theme of family
reunion and love remains By Wang Hairong
T
he overture to the 2019 Chinese the otherwise drab winter scene and Despite this enticement, many people
Lunar New Year—the Year of the igniting the holiday spirit, while shops residing in the capital are anxious—like
Pig—flowed into Beijing weeks are all festooned with elaborate holiday migrating birds pending their annual
before the actual holiday, which falls on decorations, either for adornment or journey—eager to rush back to their
February 5 this year, the first day of the sale. On January 20, the Beijing Municipal hometowns, even if it means enduring
New Year according to the lunar calen- Government kicked off colorful holiday extra hassles such as scrambling for travel
dar. Strings of red lanterns hang from cultural activities with a skating perfor- tickets, shopping for gifts, packing and
the sides of light poles, brightening up mance at the Summer Palace ice rink. being stuck in traffic jams.
FEBRUARY, 2019 8
Liu Zhiwei, an electrical engineer
in Beijing, is ready to go. “I am from
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Shandong Province. According to our tra-
ditional customs, the Lunar New Year is
about family reunion, so we usually return
to our parents’ home,” he said.
Wu Jun, a vegetable vendor in Haidian
District in Beijing, is on the verge of re-
turning to his hometown in Xinyang City,
Henan Province, with his wife. The couple,
both in their 40s, is eager to reunite with
their parents and their young son and
daughter. “Though it is not far, I am too
busy to go back home except for the
Spring Festival. The children miss us very
much,” he said.
Hundreds of millions of people will
join the holiday season travel rush. People
all over the country are expected to make
3 billion trips primarily for family reunions
and some for tourism, according to of-
ficial estimates.
What draws so many people back to
their place of origin? What does the Spring
Festival mean to them? How will they Calligraphy for the Chinese character fu, meaning good
fortune, written by five emperors of the Qing Dynast
are displayed at the Palace Museum on January 8 y
celebrate it? Through several interviews,
here is what Beijing Review uncovered.
The natives return
Numbers From China’s Spring Festival Holiday
For Zou Bo, the owner of a hostel
on Kulangsu Island in Fujian Province, Total Box Office Domestic Retail and Catering Sales
the Spring Festival means a journey (bln yuan) (bln yuan)
back to his hometown Yantai in eastern
Shandong and his childhood. 2015 1.73 2015 678
“My fondest memories of the Lunar
New Year consist of three things: fire- 2016 3.07 2016 754
crackers, new clothes and the magical 2017 3.419 2017 840
hands of my mother,” he said.
Zou, 49, grew up in a village on the 2018 5.694 2018 926
outskirts of the city. “The most thrilling
2019 5.84 2019 1,005
thing for boys in the countryside was
that they could set off firecrackers during 0 200 400 600 800 1,000
0 1 2 3 4 5 6
the Spring Festival,” he said. “When we
entered the last month of the lunar cal-
endar, my family would buy firecrackers Number of Tourist Trips Tourism Revenue
for us, which my brother and I treasured
(mln trips) (bln yuan)
very much since life was so difficult that
my family did not want to splurge on 2015 261 2015 144.8
firecrackers.” They usually got 200 fire-
crackers, he said, and to make the stock 2016 302 2016 365
last longer, they only set off a few each
2017 344 2017 423.3
day.
Back in the 1970s and 80s, new 2018 386 2018 475
clothes for New Year’s Day were hand-
made in most rural families. “My mother 2019 415 2019 513.9
has dexterous hands, so she made all
the clothes for my brother and me. The 0 100 200 300 400 0 200 400 600 800 1,000
clothes fit us well and made us look very (Sources: Ministry of Culture and Tourism, National Radio and Television Administration;
handsome, winning compliments from designed by Pamela Tobey)
relatives and neighbors,” Zou recalled.
s
s9 FEBRUARY, 2019
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A visitor admire
s
January 27 Chinese Lunar a woodcut picture at an event
ing Festival couplets on New Year in Lo
s Angeles, Califo to celebrate the
Municipality chooses Spr
A resident of Chongqing rnia, on January
25
“Since others asked my mother to starts with a feast, with fish symbol- roosters, hens and dogs in the yards to
make their clothes for the New Year as izing surplus year after year, chicken play with, and we can catch fish in the
well, she would get really busy before the representing good luck and dumplings river and climb hills.” There are also a lot
holiday, making clothes until late into the signifying reunion, he said. After dinner, of firecrackers, he added.
New Year’s Eve,” he said. “I remember ev- they usually watch the Spring Festival For Lai Fan, a graphic designer in
ery year on that night, as my brother and evening gala on TV and set off fireworks Dazhou City, southwest China’s Sichuan
I were about to doze off into our dreams, and firecrackers outside. The restless and Province, the Lunar New Year is a time full
she would still be sewing, with her head excited children will not go to bed until of hope and love. “This year is quite spe-
bent over. When we woke up on New late into New Year’s Eve. The next day, cial for me, because I just turned 40 and
Year’s Day, we would find a stack of new they awaken early to the sound of boom- as I enter middle age, my life and work
clothes waiting for us in our clean and ing firecrackers. They then greet each have become more stable. In particular, I
tidy room. We could not help but marvel other, get dressed up and visit neighbors. am going to move into a new home dur-
at her pair of magic hands.” Children are thrilled to get red packets of ing the Spring Festival. This is a new start;
Although the village has become gift money. In the ensuing week, the fam- I feel the coming year is full of hope,” she
part of the city during the urbanization ily’s schedule is packed with visits to and said.
process, Zou still enjoys returning to his from relatives, peppered with feasts and Nevertheless, the deepest impres-
hometown and connecting with his fam- rituals to commemorate ancestors, he sions that the Spring Festival left on her
ily and friends from childhood. explained. were those from her childhood. In ad-
For 38-year-old Liu Zhiwei, the Spring For 10-year-old Mu Mu, a fifth grader dition to delicacies such as homemade
Festival means getting closer to tradition. in Beijing’s Haidian District, the Spring sausages and glutinous rice dumplings,
In his hometown, it is celebrated in the Festival is a time to visit his grandpar- new clothes, fireworks and dragon danc-
traditional way. On New Year’s Eve, he ents and get back to nature. Living amid es, she remembers her father rewarding
and his parents, wife and children usually skyscrapers and concrete, he thinks his the children for their school performance
get together, putting up couplets on door grandparents’ home in the rural area in on New Year’s Eve. “My grades were al-
frames and papercuttings on windows. Liaoning Province is a fun place, even ways higher than my elder brother and
“One year, we even bought a tree laden though it’s cold because it lacks central sister, so I always got the biggest prize,”
with oranges to decorate the house, since heating. He will take his pair of pet parrots she said. Another thing that she enjoyed
orange trees promise happiness in the along. “Grandpa’s home has a heatable was walking along mountain trails to her
coming year,” he said. brick bed all around, which will keep the grandmother’s home. “Although the trip
In their home, New Year’s Eve always birds warm,” he said. “There are also was more than an hour by foot and weFEBRUARY, 2019 10
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in Beijing
Palace Museum
opera performance at the
ive
s in an interact
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A visitor engage
Calligraphy enthusia on Jan uary 23
sts write Spring Festiv
on January 28 al couplets at an ac
tivity in Beijing
had to scale a steep slope, the joy of see- for the festival, more than what they got Rather than being glued to TV sets,
ing dear grandma who we hadn’t seen for on regular days, so people looked forward many people have become addicted to
quite a while would always drive away our to the holiday to enjoy better food. “We their smartphones, sharing moments
fatigue,” she said. “Besides, we could also had to queue up and trade coupons for and virtual red envelopes, said Hu Ziwei,
pick some early-blooming wild onions by these items. I often had to stand in line a 22-year-old studying in the United
the roadside as a gift for grandma.” for more than an hour,” she said. Kingdom.
Her memories of the holiday also This year, she plans to celebrate
Fading traditions include steaming huge buns decorated the Lunar New Year’s Eve by having a
with red dates and sending them to rela- gathering with friends and classmates
Although the holiday travel rush con- tives as gifts. Today, these buns can be in a Chinese restaurant in London, din-
tinues, in recent years, many people feel bought in supermarkets, and people sel- ing, drinking and singing. The following
the flavor of the Spring Festival has begun dom send them as gifts. day however, she will have to go to class.
to fade, which can be explained by a num- Back in her hometown, the first thing While studying abroad, she has celebrated
ber of factors, such as an improved living people did on the morning of the New New Year’s Eve by eating out or mak-
standard, the development of Internet tech- Year’s Day was visit neighbors, but in ing dumplings at home, going dancing,
nology, urbanization and a faster-paced life. Beijing, neighbors hardly visit each other, playing cards, occasionally watching the
As hundreds of millions of people take she said. Spring Festival gala or traveling.
to the road, Liu Meifu, who is in her 70s, “The emergence of new things has “Even if I return to my hometown for
goes on with her life as usual. She is go- made traditional festival rituals outdated. the festival, I will no longer feel as care-
ing to spend this Spring Festival in Beijing, In the past, we had to give holiday greet- free as when I was a child. Young adults
where she lives with her daughter’s fam- ings face to face, now we can deliver like me have to face inquiries and pres-
ily, looking after her grandson. them by telephone or text message,” said sure from the older generations, such as
For her, the Spring Festival is no lon- Liu Zhiwei. “Previously the festival was asking about my dating status and urging
ger significantly different from any other celebrated with a lot of fireworks and fire- me to get married early,” she said.
day. “Nowadays people do not have to crackers, whereas today, they have been
wait for the Spring Festival to eat good banned in many places to protect the en- Unconventional
food or wear new clothes,” she said. vironment. Even the once popular Spring celebrations
She recalled that when she was Festival evening gala produced by China
young, households were rationed several Central Television has been criticized by As people’s income rises, their life
kilograms of meat, eggs and cooking oil an increasingly nitpicking audience.” has become more colorful and their
s
s11 FEBRUARY, 2019
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al exhibition on January 8
Visitors at the Palace Museum’s Spring Festiv
lifestyle less traditional, said Yi Shuang, a Ctrip predicted that Chinese tourists Some of the domestic trips will be
37-year-old human resources officer na- will make 400 million trips, including 7 made by people traveling to large cit-
tive to Beijing. million to overseas destinations during ies for reunions with family members
This year, she is looking forward to the week-long Spring Festival holiday working or studying there, according
a lazy holiday. “I will simply stay to Ctrip. This is a reversal of the
at home, read books, watch traditional Spring Festival travel
TV dramas and tidy up the rush, which is characterized
WANG MEIYU
house. Because of fast-paced by people leaving large cities
work and study during the to return to smaller ones or to
year, a holiday is so precious rural areas.
that I just want to relax,” she The reverse travel rush is
said. Nowadays, many people reflected in Ctrip’s flight book-
are too busy or lazy to fol- ing data, which showed a more
low Spring Festival traditions than 40 percent year-on-year
such as rituals to welcome in surge in flight bookings to me-
and bid farewell to deities or tropolises such as Shanghai,
visiting certain relatives on Beijing and Guangzhou one
certain days. week before the Lunar New
Sightseeing has become Year’s Eve.
a relatively new way to mark Although the flavor of the
the Lunar New Year. Li Gejing, Spring Festival may be growing
40, cofounder of a business weaker, and ways to celebrate it
in Beijing, usually travels have been changing, Liu Zhiwei
overseas during the holiday still looks forward to the festival.
season with family members. “Society always progresses and
In previous years, Yi new fashions may become our
Shuang has also taken trips new traditions,” he said.
during the holiday. “Travel U.S. visual reporter Pamela Tobey shows off her fashionable stuffed pigs in her “But whichever way the
Beijing home
can reenergize us, enrich our celebrations change, for family
knowledge and give us a lot members living apart from each
of wonderful memories. After being re- this year, with Thailand and Sanya City in other, a reunion, even though short, is
freshed by a tour, I am ready to set new south China’s Hainan Province the most always precious,” Hu said. CI
goals for myself,” she said. popular foreign and domestic destina- (Ji Jing, Li Qing, Wang Yajuan and Ma
China’s leading online travel agency tions, respectively. Miaomiao contributed to the report)FEBRUARY, 2019 12
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Telecome carrier China Unicom showcases its 5G technologies at the 19th China Hi-Tech Fair in Shenzhen, south China’s Guangdong Province, in November 2018
Injecting Impetus
China continues to drive up consumption to boost the economy
By Li Xiaoyang
A
s China steps into the Year of the Pig, which force of the economy.
symbolizes good fortune, it is also striv- China’s per-capita consumer spending
ing to achieve prosperity commensurate reached 19,853 yuan ($2,954), increasing 6.2 per-
with its implications. Before the Lunar New Year cent year on year in real terms in 2018, obtaining
on February 5, the country unveiled measures to an increase of 0.8 percentage points faster than
stimulate consumption in 2019, which is expected the previous year, according to the NBS.
to more comprehensively draw out the effects of NBS data also showed that total retail sales of
domestic demands to ensure stable economic consumer goods rose 6.9 percent year on year to
growth. 38.1 trillion yuan ($5.6 trillion) in 2018, with on-
The plan, jointly issued by 10 ministerial-level line retail sales rising 24 percent. Noticeably, total
authorities including the National Development retail sales of consumer goods grew at double-
and Reform Commission (NDRC) on January 29, digit rates for the previous 14 years.
focuses on boosting the sales of big-ticket items According to Wang Bin, an official with the
such as automobiles and home appliances, up- Ministry of Commerce (MOFCOM), consumption is
grading domestic consumption, and releasing the expected to contribute 65 percent to China’s eco-
potential of urban and rural demands. nomic growth in 2019 with a 9-percent increase
With one of the largest markets in the world, in total retail sales of consumer goods, even
China is increasingly moving toward bolster- though pressure facing the consumer market
ing the domestic economy through its large will mount and domestic consumption growth is
consumer base given uncertainties in the exter- likely to see a further slowdown.
nal market. According to data released by the The medium- to long-term contradictions and
National Bureau of Statistics (NBS), consumption risks facing China’s economic development may be-
contributed 76.2 percent to China’s GDP growth come more prominent in 2019, Wang said, making
in 2018, significantly up 18.6 percentage points it difficult to accelerate the growth of consumption.
from the previous year, making it a major driving However, the upgrading demands of China’s middle-
s
s13 FEBRUARY, 2019
XINHUA
Visitors view a concept vehicle at an exhibition in Haikou, south China’s Hainan Province, on January 10
income consumers still provide great potential for propelled through upgrading car consumption in
the domestic market. “Consumption will remain the rural areas by encouraging rural residents who still
largest contributor to China’s economic growth in drive unsafe three-wheel vehicles to buy cars or
2019,” he projected. trucks with subsidies.
Meanwhile, as NEVs become the new craze
Car sale boost among Chinese vehicle consumers, they have
become a growth driver of the auto industry.
The new pro-consumption measures target According to Dong Dajian, an official with the
sectors that saw weaker growth in 2018, giving Ministry of Industry and Information Technology
special attention to the automobile industry. China (MIIT), China’s production and sales of NEVs are ex-
will push ahead with car replacement, especially in pected to exceed 1.5 million units this year, helping
rural areas, improve second-hand car markets and the auto market to register stable growth across
provide subsidies to encourage the purchase of the board.
new-energy vehicles (NEVs), the plan says. It also “Considering the growth of China’s economy,
will improve infrastructure facilities such as parking its ongoing urbanization process, as well as its
lots and NEV charging stations. improving standards for energy conservation and
Liu Yunan, an official with the NDRC, said the environmental protection, the auto market still has
slowdown in auto sales led to 66.7 percent of the much room for further growth,” Dong said.
decline in the growth of total retail sales of con-
sumer goods. Smarter, quality consumption
Data from the China Association of Automobile
Manufacturers showed that the country sold The plan also proposes improving the domestic
28.08 million cars last year, down 2.76 percent consumption infrastructure, enhancing the quality
year on year. “The traditional auto market is on a of products and services, and optimizing the con-
downward trend, with limited room for growth,” sumer market.
Xu Hongcai, Deputy Chief Economist at the China According to Liu, China’s home appliance
Center for International Economic Exchanges, told industry, with the world’s largest production and
Beijing Review. He called for efforts to tap into new sales volume, is another key driver of the coun-
markets to cushion the slowdown in purchases. try’s consumption growth. Thus, the promotion
The number of vehicles owned by every 1,000 of green and smart home appliances will push
Chinese people was about 170 in 2018, according the industry toward upgrading to meet people’s
to official data, which still lags behind developed demands for higher-quality products and further
economies. Liu said domestic vehicle sales can be cutting emissions.FEBRUARY, 2019 14
“Once the policy encouraging the purchase China, 5G will create an economic output of 10 tril-
of energy-saving and smart home appliances is lion yuan ($1.5 trillion) and generate 3 million new
launched across China, some 150 million appli- jobs, relevant estimates showed.
ances are expected to be sold from 2019 to 2021, “Since China has a large smartphone market,
totaling about 700 billion yuan ($104 billion),” Liu the promotion of 5G technology will undoubtedly
said. help propel domestic consumption,” Xu said.
According to MIIT, China’s information con-
sumption reported a rapid increase in 2018, while Releasing potential
the total business volume of the telecommunica-
tions sector improved 137.9 percent from the To fully unleash the potential of domestic
previous year. consumption, both urban and rural markets will
Measures by Chinese telecommunications be further developed to expand demands and re-
operators to increase the speed of Internet duce regional disparity. According to the plan, the
connections and cut connection costs have renovation of old apartments, the real estate rental
contributed to the rise of domestic information market, as well as children and senior care services
consumption, the ministry said. will be promoted to augment urban consumption.
According to Dong, China needs to boost Meanwhile, rural areas will strive for faster develop-
information consumption by speeding up the con- ment of online shopping, e-commerce and tourism.
struction of the telecommunications infrastructure Consumption growth in rural areas is still hin-
and the commercial use of the 5G network. dered by problems such as underdeveloped markets
Following test runs of 5G-equipped buses in and infrastructure. Therefore, e-commerce will be
some regions, an indoor 5G network will be in- further promoted to develop new markets in rural
stalled in the Shanghai Hongqiao Railway Station areas and improve local consumption, Wang said.
by the end of 2019. In addition, MIIT announced So far, the development of e-commerce has
China will move faster to deploy the 5G network improved rural residents’ income, which is crucial
and carry out trials for 5G commercial use this year. for boosting consumption. Official data showed that
“Currently, the 5G industry is experiencing ac- online sales from rural areas exceeded 1.3 trillion
celerated development around the world. With yuan ($190 billion) in 2018, providing 28 million local
initial full-fledged network facilities, it is expected residents with jobs.
that China’s 5G terminal chips will be rolled out in “Accelerating agricultural modernization is also
the first half of 2019, and 5G smartphones will be significant for boosting rural consumption, which can
launched in the middle of the year,” Dong said. help increase household income,” Xu said.
Within five years of commercial deployment in According to NBS data, the real growth of per- s
s
XINHUA
A visitor plays Huawei's AR games at the Mobile World Congress in Barcelona, Spain on February 2815 FEBRUARY, 2019
capita disposable income in rural areas was faster capita disposable income for households in China’s
than that in urban areas in 2018, suggesting a nar- smaller cities was 55 percent lower than that in top-
rowing urban-rural income gap. China’s per-capita tier cities a decade ago, but in 2017, the gap shrunk
disposable income stood at 28,228 yuan ($4,165) to 45 percent and is likely to go down further to 36
in 2018, up 6.5 percent year on year in real terms. percent by 2030.
Urban and rural per-capita disposable income was “Serving as a driving force for economic growth,
39,251 yuan ($5,840) and 14,617 yuan ($2,174), up consumption is also directly driven by economic
5.6 percent and 6.6 percent, respectively, with price growth,” Xu said. “The key to achieving stable con-
factors deducted. sumption growth is to ensure employment, which
The income gap between cities is also on the will expand the middle-income group and improve
decline. According to a Morgan Stanley report, per- the living standards of the low-income group.” CI
Final Consumption Expenditure’s National Per-Capita Consumption Expenditure and
Contribution to GDP Growth (%) 76.2 Composition in 2018 (%)
80
Transport and communication
70
66.4 64.6 Residence 2,675 yuan
57.6 4,647 yuan Education, culture
60 13.5 and recreation
51.6 51.8 50 50.2 23.4 2,226 yuan
50 11.2 Healthcare and
40 8.5 medical services
Food, 28.4 1,685 yuan
30 tobacco 6.5
and liquor Clothing
20 1,289 yuan
5,631 yuan
10 2.3 6.2
0 Other goods Household facilities,
2011 2012 2013 2014 2015 2016 2017 2018 and services articles and services
477 yuan 1,223 yuan
90 Contribution of Industry to GDP Growth (%)
80
70
Secondary industry
60
50
40
30 Tertiary industry
20
10
Primary industry
0
78
80
82
84
86
88
90
92
94
96
98
00
02
04
06
08
10
12
14
16
18
-10
19
19
19
19
19
19
19
19
19
19
19
20
20
20
20
20
20
20
20
20
20
Total Retail Sales of Consumer Goods National Per-Capita Disposable Income
(tln yuan) (yuan) y.o.y. growth (%)
40 36.6 38.1 2011 14,551 10.3
35 33.2
30.1 2012 16,510 10.6
30 27.2
24.3 2013 18,311 8.1
25 21.4
20 18.7 2014 20,167 8.0
15 1015 21,966 7.4
10 2016 23,821 6.3
5 2017 25,974 7.3
0 2018 28,228 6.5
2011 2012 2013 2014 2015 2016 2017 2018
(Sources: National Bureau of Statistics, Wind.com.cn; designed by Pamela Tobey)FEBRUARY, 2019 16
Leaps and Bounds
the new generation of China’s super con-
sumers.
But how did e-commerce become digi-
tal commerce and new retail?
Digital commerce and new retail point to the future of At first, it wasn’t necessarily what China
had or what other countries did that led to
consumption in China By Michael Zakkour the fastest adoption rates of e-commerce,
digital payments and social media apps
(as operating systems for life). It was what
I
n 2014, I wrote a book titled China’s freedom for foreign brands and retailers. China didn’t have that became an enabler
Super Consumers: What 1 Billion Domestic retailers emerged and the and an advantage.
Customers Want and How to Sell It to first wave of foreign brands and retailers China had no modern retail legacy in-
Them. The book explained and examined entered China primarily in the form of for- frastructure to overcome. Even as China’s
the development of China’s consumer eign luxury brands. This stage started with retail and consumer economy started to
and retail evolution, from the beginning roughly 15 million consumers and ended develop and then boom in the late 1990s
of the reform and opening-up era to the with 30 million consumers with significant and early 2000s, modern retail infrastruc-
early days of the e-commerce explosion. disposable income. ture development was not keeping pace.
Some of the facts and statistics high- Stage Two, 1994-2004: Early Days of Yes, malls and department stores were
lighted in the book left casual observers of Modern Retail Development. New malls built at a rapid pace, and this helped, but
China, its economy and its development and department stores started to emerge the store-marketing-supply chain struc-
into the second largest economy in the in large numbers and the second wave of tures of fully developed retail markets were
world in disbelief including: nearly 700 not yet in place. The arrival of e-commerce
foreign brands and retailers entered the
million consumers with significant dispos- filled the gaps quickly. Most new consum-
Chinese market. This period started with
able income; 1 billion smart devices in use; ers were “born” into e-commerce.
roughly 35 million consumers and ended
social media apps with 1 billion users; the There was no legacy of communica-
with nearly 200 million consumers with sig-
second largest luxury goods market in the tions systems to overcome in China. The
nificant disposable income.
world; a digital first/mobile first consumer vast majority of Chinese citizens did not
Stage Three, 2004-15: The Age of
society; and near universal adoption of digi- own landlines, personal computers or
China’s Super Consumers. The largest and
tal payments, just to name a few. primitive mobile devices in the 1990s and
most important consumer demographic
In summary, the book told the tale of 2000s. When affordable, highly functional
since the original U.S. super consumers of smartphones came on the market, China
how the evolution and growth of Chinese the post-World War II era emerged.
consumption and retail changed the way embarked on the fastest adoption of a new
This was the time of exponential technology in human history. In less than
Chinese citizens shopped, lived, devel- growth in retail infrastructure buildout and
oped new identities and related to the 10 years, there were more than 1 billion
modernization; conspicuous consumption; smartphones in use. These smartphones
outside world. It also told the stories of the
higher rates of spending; and the growth were the perfect complement to and en-
entrepreneurs, retailers and brands that
of the sheer number of Chinese consum- abler of e-commerce.
were transforming the Chinese economy
ers with disposable income (700 million). China had no traditional banking, fi-
through consumption and services.
Thousands of new foreign brands and re- nance and payment systems to overcome.
This development happened in several
stages. tailers entered China and engaged Chinese During the early and middle development
Stage One, 1990-94: Proto-Retail and consumers. stages of retail and consumption in the
Consumer Culture. This period was fueled But most importantly, the emergence country and until the introduction of digital
by the first reforms in retail, which led to a of mass e-commerce and digital payment escrow accounts to complete consumer-
surge of privatization; the opening of the options kickstarted a digital consumer to-consumer e-commerce transactions in
Chinese market to the outside world; the revolution. Alibaba, JD.com, Tencent, Baidu the mid-2000s, almost all retail was con-
initial success of Chinese entrepreneurs and others started laying the foundation ducted on a cash-and-carry basis. Credit
and business owners; new wealth created for the following stage. cards, checking accounts and debit cards
by manufacturing and exports; and the re- Stage Four, 2015-19: The Age of the were not a big part of people’s everyday
form of regulations that allowed for greater Chinese Digital Super Consumer. China has lives. The introduction of easy-to-use,
evolved its modern retail and consump- ubiquitous and eventually, QR code-based
tion economy on the foundation of what payment systems voided the need for
we used to call e-commerce, but now credit cards, checkbooks and debit ac-
categorize as digital commerce and new counts.
retail. There are now close to 800 million The end result was the acceleration
Chinese consumers with significant dispos- of Chinese consumption by way of tech-
able income and nearly 700 million digital nology and then the creation of China’s
The author is vice consumers. Moreover, Chinese digital com- digital super consumers. Today, China has
president of China/ merce is the most advanced in the world. advanced even further in terms of how
Asia Pacific strategy and
global digital prac- There can be no argument about the products are made, moved, sold and expe-
tices at consulting firm fact that the emergence, growth and evo- rienced.
Tompkins International lution of e-commerce were key to building First was the evolution of e-commerce
s
s17 FEBRUARY, 2019
into digital commerce. The difference be- ing toward 40-50 percent of all retail in the vironments, an endless variety of products,
tween e-commerce and digital commerce next five years. entertainment and a suite of services is the
is as follows: e-commerce is an alternative The introduction of new retail has goal.
to buying a product or service in a store or brought forth a revolutionary concept, al- The future of China’s consumer and
other physical environments. A consumer though physical environments (stores and service economy will be driven by new
can choose to buy a handbag in a store, human social spaces) still matter. In fact, retail. Innovations in payments, services,
or on the brand’s website or on an online they matter more than ever and in new technology, fulfillment, online and offline
marketplace like Tmall. and exciting ways. integration and on-demand delivery will
Digital commerce includes far more As Jack Ma, founder of Alibaba Group, boost consumption the same way retail
than a choice of where to complete a famously defined it, new retail is “the reforms in the 1990s and 2000s did.
transaction. It includes digital payments, complete integration of online, offline, Continued investment in artificial intel-
digital promotions and marketing, brands technology and logistics for a single value ligence and data science; domestic and
using a mix of environments (marketplaces, stream.” New retail was born in China three global logistics; the blend of services, en-
owned domains, third-party retailers) to years ago and is now going global. tertainment and transactions; cross-border
reach the consumer, and digitization of Alibaba, JD.com and Tencent are build- digital commerce; and a laser focus on the
customer services, fulfillment and logistics. ing massive new retail ecosystems that consumer will ensure the growth of China’s
China today has progressed from digital include commerce related online and economy and increasing levels of dispos-
commerce to new retail. Digital commerce offline environments, technology and IT, able income. A virtuous cycle of innovation,
has been the fastest growing segment of logistics and supply chains, and media and wealth creation, consumption and inno-
retail and consumption in China for the entertainment. vation will be the end result. That is the
last 10 years. In many categories, digital is New retail connects all four major func- opportunity China has on a domestic and
dominant. It already represents more than tions to produce a single result: consumer- international stage and it is the blueprint
30 percent of retail (as compared to 12 centricity, where providing consumer for the role China’s digital super consumers
percent in the United States) and is head- convenience, customization, choice of en- can play in global growth. CI
XINHUA
A staff member at a new retail supermarket in Hangzhou, east China’s Zhejiang Province, introduces its mobile payment system to visiting international media professionals
on June 29, 2018FEBRUARY, 2019 18
FILE
A poster of The Wandering Earth
Settling In
China’s first sci-fi mega film starts a new chapter By Ji Jing
F
or a long time, domestically made blockbuster sci-fi films have Producers’ Association, told the media that China has abundant histori-
been absent from China’s film market, leaving fans to satisfy their cal films and its realistic films are also on the rise. However, futuristic
need for the genre by watching Hollywood productions. The situ- films haven’t had any breakthroughs for a long time. The Wandering
ation has changed, however, as The Wandering Earth, hailed as China’s Earth has deeply satisfied Chinese audiences’ demand for the genre.
first big budget sci-fi film, takes the country by storm. Rao Shuguang, President of the China Film Critics Association, said
As of February 17, the film had raked in 3.66 billion yuan ($540 The Wandering Earth signals the upgrading of China’s film industry, indi-
million), becoming the second highest grossing film in China’s history cating China has grown from a country making a great number of films
after military action film Wolf Warrior 2, according to Maoyan, a box of- to a leading film producer in the world.
fice tracker and an online-ticketing platform. As of March 7, the film had The spectacular special effects and exquisite props are major at-
earned 4.57 billion yuan ($680.8 million), according to Maoyan. tractions for audiences. In contrast to the one-hero-saves-the-world
The film is loosely adapted from a namesake novella by Liu Cixin, model often seen in Hollywood blockbusters, a united government is
a multiple prize-winning sci-fi writer, whose novel The Three-Body formed in the film involving countries around the world to confront the
Problem won the Hugo Award in 2015. He also won the 2018 Arthur C. apocalypse together. And instead of deserting the Earth, human beings
Clarke Award for Imagination in Service to Society in Washington, D.C., in choose to take the Earth on a space journey, reflecting Chinese people’s
November 2018. love for their homeland.
In the film, the Sun is dying out and the temperature on Earth dives Moreover, in comparison to Hollywood films which feature land-
to unbearable lows. As a result, people have to live in underground cit- marks in cities such as London and New York, audiences were thrilled to
ies to escape the cold. In order to save the Earth, people all around the see Chinese cities such as Beijing and Shanghai instead.
world build some 10,000 giant planet thrusters to move the Earth out of In 2018, of the top 10 box office films in China, six were domestic
its orbit to a new star system. The undertaking, called Wandering Earth, productions, while the other four were U.S. sci-fi films. “The Wandering
will take 2,500 years and the journey will be 4.3 light years long. Earth has compensated for a lack of domestic sci-fi films. It also shows
Liu Qi, son of international space station astronaut Liu Peiqiang, and that Chinese films have begun to think about humanity’s future and
Han Duoduo, a teenage girl adopted by Liu’s grandfather, escape from joined international discussions about human destiny, which is of great
the underground city, curious about the outside world. However, since significance,” said Gong Jie, a teacher at the School of Liberal Arts of
the journey is filled with unexpected dangers, the two inadvertently join Northwest University in Xi’an, Shaanxi Province.
the battle to avoid the Earth from colliding with Jupiter. Liu Cixin was very excited to see his work turned into a film. “My big-
gest wish is to make my works into films. Now my dream has come true.”
A breakthrough China’s growing scientific and technological strength has provided
the prerequisite for the development of sci-fi films, said Guo Fan, the
The film is widely seen as ushering in Year One of China’s sci-fi director of the film. For instance, it is more credible to see Chinese astro-
movie market. Ming Zhenjiang, Executive Chairman of the China Film nauts working in space stations in the film after China’s lunar rover Yutu-
s
s19 FEBRUARY, 2019
2 recently made a successful landing on the far side of the Moon. are others who have been more cool-headed. A comment on re-
Having directed only two films before The Wandering Earth, Guo is a view website Douban.com said aside from the special effects that
relatively new director. He made up his mind to become a film director represent the pinnacle of Chinese films, the character and plot de-
as a teenager in the 1990s after watching Terminator 2: Judgment Day velopment along with the scientific basis of the film have room for
directed by famous Hollywood filmmaker James Francis Cameron. improvement.
The Wandering Earth took four years to make and involved approxi- The producer of the film Gong Ge’er said one film is inadequate
mately 7,000 staff members. Seventy-five percent of the film’s special for starting a new chapter in Chinese sci-fi films. More films are
effects were made by domestic companies, while 25 percent were needed in order to break new ground in sci-fi filmmaking.
done by South Korean and German teams. Domestic sci-fi films account for a small proportion of China’s
Guo said he chose mostly domestic companies not only because film industry. According to a report published by the Southern
Hollywood special effects firms are more expensive but also because University of Science and Technology in November 2018, the box
it’s more difficult to communicate with them owing to cultural and lan- office revenue of sci-fi films in China reached 9.5 billion yuan ($1.4
guage differences. Moreover, top Hollywood special effects companies
billion) in the first half of 2018, of which only 890 million yuan ($131
can hardly spare their best resources as they are often engaged in mak-
million), or less than 10 percent, was contributed by domestic
ing Hollywood blockbusters.
films.
The film has also attracted international attention, with Cameron
wishing it good luck on China’s microblogging platform Weibo. “Good Guo said it may take China 10 years to catch up to Hollywood. “If
luck with your space journey of The Wandering Earth. Good luck with we compare China’s film industry to a non-mechanical workshop,
the voyage of Chinese sci-fi films,” he wrote. its Hollywood counterpart is a well-established industrial system.
Since February 5, the film has hit screens in North America, Australia What China lacks is not only hardware but also advanced manage-
and New Zealand. The film’s official Weibo account announced that ment and concepts.”
as of February 17, it had become the highest grossing Chinese film in Liu Cixin added that sci-fi films should be more diversified in-
North America in five years, earning $3.82 million. stead of following a set model. Moreover, a full-fledged industrial
system should be established for sci-fi filmmaking with a more spe-
More needed cific division of labor.
“High-quality content is also important. We need influential sci-
In addition to the praise that has poured in for the film, there fi novels as well as more scriptwriters,” Liu Cixin said. CI
VCG
Moviegoers walk past a poster of The Wandering Earth in a cinema in Nantong, east China’s Jiangsu Province, on February 10You can also read
