Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum -- Ignore unavailable to you. Want to Upgrade?

To: Cogito Ergo Sum who wrote (177797)	9/5/2021 10:21:55 PM
From: TobagoJack	Read Replies (1) \| Respond to of 218800

He is trying to remain agnostic :0) and so leaves out speculation :0) In the meantime, speculations galore, and Anjani neglects to mention the new new SME stock exchange in Beijing that aims to chine w/ 'common prosperity' The fear is palpable bloomberg.com Making Sense of Xi’s New Common Prosperity Doctrine Building a modern supply chain and growing China’s middle class is one thing, but investors worry this crackdown is also in danger of stifling innovation. Anjani Trivedi 6 September 2021, 06:00 GMT+8 Investors are desperately trying to decrypt Beijing’s “common prosperity” proclamation — an attempt to create an “olive-shaped social structure” — to understand what the real-world implications will be. They only have to look to the last 15 years: It’ll be more of the same. Zhejiang province, officially chosen as the “demonstration zone” to showcase this priority, is a good example. The region on the east coast of China that’s home to tech giant Alibaba Group Holding Ltd. is also the base for the country’s most high-tech businesses, with more than 100,000 industrial robots. Last year, its industrial value-add was expected to hit over $350 billion. The region is also a manufacturing center for chemicals and machinery and accounts for over 10% of the nation’s exports. Its government has committed to build 120,000 5G base stations, or almost 20% of those across the country, which is core infrastructure for next generation industry. Zhejiang isn’t just a rich, tech hub. To forge ahead toward common prosperity, state planners are doing what they know best: raising the bar on industrial policy. In keeping with that, Zhejiang’s officials announced earlier this year its provincial five-year economic blueprint for “high-quality business development.” A big focus is building out a modern supply chain system, 5G networks and charging stations for electric vehicles. With it will be the continued rise of industrial technology and better manufacturing there. While pushing the case for industrial heft may seem at odds with the rise of the common person, it’s exactly what state planners had in mind over a decade ago when they started thinking about moving toward an olive-shaped society, where the middle class outnumbers the poor and the elite. In 2010, officials and government social scientists began discussing goals of a “more reasonable distribution of resources.” In an interview at the time, Li Qiang, the dean of Tsinghua University’s School of Social Sciences noted that the change China is vying for can only happen in tandem with industrial development — it’s only then that such a “structural transformation will lead to changes in people’s working modes,” he said. Olive-ShapedA significant portion of Chinese adults are in the middle-income bracket, making them better off than the average adult in the rest of the world Source: Credit Suisse Research Institute Global wealth databook 2021 In the decade that followed, China’s industrial policies became more focused. The top-down approach was used to modernize and push technological development that led to the rise of many successful — and several subpar — companies. As big firms like carmaker Zhejiang Geely Automobile Holding Group Co., Alibaba and Hangzhou Hikvision Digital Technology Co. rose to become local champions, gross domestic product rose too. China Inc. became a big driver of economic growth. They all grew to prominence in Zhejiang. Over that time , China’s policies and subsidies helped firms be more innovative and eventually promoted industrial development, studies have shown. That’s resulted in a staggering growth of wealth per adult in China over the last two decades, even though the rising divergence in incomes is also widely cited. The components of wealth — financial, non-financial and debts — have become more evenly split too, in line with the world average. (Meanwhile, it’s important to bear in mind that housing is responsible for around 70% of total wealth inequality in China, as Nomura Holdings Inc. notes, which means the property sector is the one investors should be worrying about.) Beijing wants to continue accumulating wealth as the factory floor of the world. And it needs upgrades to do so. In the process, those who have benefited will have to give back. Investors fear the widening crackdown across China’s tech sector means Beijing is killing innovation and growth. But is it? The likes of Meituan, Alibaba and Didi Global Inc. are now huge, mature entities with access to heaps of capital. For all the progress of the private sector these companies represent, they also have a concentration of money and market share. The reality is, as analysts at independent research firm Gavekal Dragonomics recently wrote, China “does not view consumer internet companies as the nation’s leaders of technological innovation: that role belongs instead to the manufacturing sector.” Viewed through this lens, the next decade will be more of the same: An attempt to make higher quality and more accessible industrial goods and, ultimately, create a more level playing field across companies and industries. Those firms that benefited from industrial subsidies will now have to start thinking more about taxes. Factory automation and large machinery companies, auto-component makers and those along the technology and hardware supply chain stand to benefit. Competition will root out the weak much as it has done in the past. Capital distribution will become more equitable. That in turn, will lift incomes, jobs and hit all the social goals Beijing has in mind. To be sure, as China’s economy matures and state planners attempt to steer away from the middle-income trap, the coming decade will be far tougher than the last. That extends to companies too: touting corporate social responsibility goals, employee welfare and big donations is one thing, but working without the state’s helping hand and paying more taxes will be the bigger challenge. Those who survive and follow Beijing’s industrial ambitions will be next generation’s winners. This column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners. To contact the author of this story: Anjani Trivedi at atrivedi39@bloomberg.net To contact the editor responsible for this story: Ruth Pollard at rpollard2@bloomberg.net Before it's here, it's on the Bloomberg Terminal. LEARN MORE

To: Cogito Ergo Sum who wrote (177797)	9/5/2021 11:25:32 PM
From: TobagoJack	Read Replies (1) \| Respond to of 218800

Me thinks the Jack has it too easy stuffing down another portion of beef before another session of kung fu (I have to take these pics to send to my wife to prove I did not take the jack to the caviar and foie gras place :0) and then he goes to do on-line commerce and last person-standing w/ his friends. ... and I watch & brief re Jack's would-be competitors, and I am moderately concerned. scmp.com Survival of the fittest: sport the new arena for China’s children in tutoring crackdown aftermath A government shift towards making physical strength and ability a higher priority is putting pressure on children, parents and newly swamped coachesBeijing forecasts the sports sector to be worth 5 trillion yuan by 2025, a 70 per cent increase from 2019 levels Jane Cai in Beijing Published: 12:00pm, 5 Sep, 2021 Physical education is becoming a more important element of student performance. Photo: STR/AFP Steve Li has a hectic schedule on Saturdays. He has a 1½ hour swimming class in the morning, followed by 1½ hours of roller-skating training. In the afternoon, he sweats on a badminton court for two hours before ending the day with 30 minutes of rope skipping. Steve Li is nine years old. “I’ve cancelled all the off-campus curriculum subject classes for my son and replaced them with sports classes recently,” said Steve’s mother Bai Peipei. “It’s obvious the Chinese government prioritises the physical ability of children over their academic performance as shown by the recent crackdown [on the after-class tutoring sector],” said Bai, 36, a public school teacher turned housewife in Beijing. “When the government points in a direction, you have to follow. Otherwise you’ll be left behind in the future cutthroat competition to get into a good university.” The competition for a university place is intense. Across the nation, a record high of 10.78 million students sat the university entrance exam in June this year. Around 7 per cent of them were admitted to the country’s 151 or so first-tier universities and colleges. To gain an edge, parents turned to off-campus private tutors, a sector that was booming until July when the central government introduced radical regulations to rein it in, responding to repeated calls by President Xi Jinping to reduce the workload for pupils and the financial burden for their parents. Under the new rules, the companies are barred from accepting foreign investment and profiting from teaching school curriculum subjects. Teaching subjects such as maths, English and Chinese are prohibited at the weekends, and during public holidays and school holidays. However, the rules do not apply to those teaching sports and arts, with Beijing picturing a thriving, prosperous and powerful China of people with a “lifelong habit of exercise” and “noble sentiments”. In a demonstration of shifting priorities in China, many provinces have recently revamped the physical education test in entrance exams, giving more weight to physical fitness and prowess. Photo: Getty Images The policy is ushering in new clients for China’s sports industry as parents shift the competition arena for their children to embrace the benefit of exercising – while creating a new source of stress for parents keen for their offspring to succeed and for children striving to meet different expectations. Eager to distance itself from the humiliating sobriquet “Sick Man of Asia”, the People’s Republic has attached high importance to physical education and athletic performance since it was founded in 1949. After the 2008 Beijing Olympics, China launched a national fitness campaign to encourage people to work out regularly and turn the country into a leading sports power. What’s the end game for China’s crackdown on private tutoring? 28 Aug 2021 In 2019, China laid out ambitious goals in the Health China Action Plan: for half of all students to score “excellent” or “good” in the annual national physical tests by 2022 and 60 per cent by 2030. It would be a substantial improvement from the 30.3 per cent who met the mark in 2018, according to data provided by the Ministry of Education. Last October, the State Council issued a circular requiring the weighting of PE to be increased in the z hongkao, or entrance exam for senior secondary schools. As a result, many provinces have recently revamped the PE test in the zhongkao. Earlier this year, Shenzhen raised the full marks of PE from 30 to 50, compared with 120 for Chinese, 100 for maths, 100 for English, physics and chemistry’s combined 120 and history, ethics and politics’ combined 120. Going further, the southwestern province of Yunnan doubled the weighting of full PE marks to 100. Parents are adapting to the change quickly. Xu Shumei, the mother of a five-year-old girl, said she signed her child up for a rope-skipping class two weeks ago in Beijing at a price of 2,000 yuan (US$309) for 10 40-minute sessions. “Although Beijing has not changed PE’s weighting in the zhongkao, many people have sensed the trend of the government’s increasing focus on sport,” Xu said. “Everyone around me is having their children learn rope-skipping. It’s an annual test item in primary schools and middle schools. If you cannot grasp the skill well, you’ll lose your competitive edge.” China’s physical tests include one minute of skipping, a 50-metre run, a sit-and-reach test, sit-ups, long jump and either a 800-metre or 1,000-metre run. In addition, the students are assessed for their vital capacity and body mass index (BMI) – a measure of body fat based on height and weight – as a measure of their fitness. Students who fail the PE tests are disqualified for the annual honourable title of merit student of the school. Merit students usually have better access to top middle schools. However, using a skipping rope is not easy for many children. Amy, Xu’s daughter, is “weak and clumsy”, according to her mother. “After making strenuous efforts, she only managed to have a dozen or so passes [over the rope]. So I decided to send her to a training centre to get help from professionals,” Xu said. A Beijing mother has signed her five-year-old up for a package of 10 skipping lessons for 2,000 yuan (US$309) to boost her “competitive edge” in school sport and fitness. Photo: Xinhua China is well positioned to grow its sports industry. Last month, Beijing launched the 2021-25 outline of the nationwide bodybuilding plan, vowing to provide more and better sports facilities and increase the numbers of fitness trainers and people exercising regularly. The government forecasts the sports sector to be worth 5 trillion yuan by 2025, a 70 per cent increase from 2019 levels. Ma Hui, a badminton trainer and co-owner of a Beijing sports club, said he was made to teach rope skipping this summer to meet skyrocketing demand. “Our phones kept ringing. We received so many calls from parents inquiring about the training,” Ma said. “Even after we increased the number of trainers from 20 to 30, we still cannot catch up with the demand.” While parents are more willing to spend on sports training after the clampdown on tutoring classes, they are demanding that their children attain high goals. “Many clients set quantitative goals – such as one-minute 100 passes in 10 days, or 200 passes in 15 days – as they want their children to score ‘excellent’ in the PE test at school. I’ve been driven crazy!” Shanghai bans primary English exams, but ‘no one dares to ignore this subject’ 11 Aug 2021 Bai, Steve’s mother, said she wanted her son to excel at physical education. “In China, competition is so intense that if you lose one point [in a university entrance exam], you will be behind 1,000 people,” she said. “While the competition in curriculum subjects may be suffocated by government orders to some extent, parents will be keener for their children to gain some edge in other field, such as sports,” she said. “Anxiety never ends.”

To: Cogito Ergo Sum who wrote (177797)	9/5/2021 11:48:16 PM
From: TobagoJack	Read Replies (1) \| Respond to of 218800

Phase-change coming up, for 2031 be smack dab in the middle of 2026 / 2032, and the protocol will either work or not. Whichever way, bum-rush into the next level of gaming starting. In each of four corners, CCP, GOP / DNC, BJP / and the rest in fourth corner. Very exciting, natural size discovery process. Get some gold. scmp.com What will form the ‘foundation’ as China moves towards overtaking the US to become the world’s biggest economy? Forecasts from Bloomberg Economics suggest China could grab the top spot – held by the United States for well over a century – as soon as 2031 China’s 14th five-year-plan places a focus on manufacturing as Beijing pivots away from relying on property and infrastructure spending to grow its economy “From a long-term perspective, the demographic structure is undergoing in-depth adjustments, the number of working-age people has declined, and the supply of labour has decreased,” Gao said earlier this week. “And many young people may be reluctant to find jobs in the manufacturing sector, and prefer to work in service industries where work is more flexible and not as intense [as manufacturing].” China has said by the end of the current five-year plan for 2021-25, it is possible for it to become a high-income country to help it double the size of its economy by 2035 – which may mean it will overtake the US to become the world’s largest economy. The high quality development of manufacturing is important to the high quality economic development - NDRC In July, forecasts from Bloomberg Economics suggested that China could even grab the top spot as soon as 2031. In the past, China’s economic growth has relied on investment in infrastructure and property, but Beijing wants to control growing debt levels and instead direct spending into manufacturing. And with consumption yet to fully recover from the impact of the coronavirus, manufacturing is seen as a saviour to China’s future growth. “The high quality development of manufacturing is important to the high quality economic development,” the NDRC said in a report released in June. The economic planner stressed that manufacturing is integral to China’s plan to become a “moderately prosperous” society and strategic to its goal to be a “modern socialist country”. “[Manufacturing] is the foundation of deciding the country’s strength and its future position in the world,” the NDRC report added. Xia Le, chief economist for Asia-Pacific at BBVA, said that to meet China’s growth target of around 5-5.5 per cent in the next 10 to 15 years, the contribution of manufacturing to gross domestic product (GDP) should not fall further. He added that policymakers might be more tolerable to a slowdown in other parts of the economy, but their primary aim is to steady the growth in the manufacturing sector in the coming years. The contribution of manufacturing to China’s GDP has been declining over the past four years from over 30 per cent down to 27.7 per cent in 2019. I think China will need to marry its commitment to manufacturing with a rebirth of the reform to which the government is now closing the door - George Magnus The NDRC report said the number of newly registered companies in the manufacturing sector fell at a rate of 5.2 per cent on average between 2017 and 2019, while the number of manufacturers closing down rose significantly during the same period at an average rate of 24.6 per cent. George Magnus, an associate at Oxford University’s China Centre who is also a research associate at SOAS University of London, said it is feasible that China could upgrade its manufacturing industry to rival or even overtake countries such as the US, Japan, South Korea and Germany in some sectors, but still come up short in terms of innovation. “In other words, economic heft and weight is not only about having a vibrant manufacturing sector, as the Japanese experience, for example, shows. I think China will need to marry its commitment to manufacturing with a rebirth of the reform to which the government is now closing the door,” Magnus said. China’s 14th five-year-plan marks a shift away from the traditional growth focus of Beijing’s previous strategies. Instead, the plan stresses “quality development”, turning its economy more inward looking. This has raised concerns that China’s participation in international trade may well be sidelined, pushing back its promises of increasing market efficiency and further opening up. However, Zhang Ming, deputy director of the Institute of Finance at the Chinese Academy of Social Sciences (CASS), believes that while the formula of reforms and opening-up has been effective, China will need to find new growth at home in response to deteriorating China-US relations, which means China can no longer count on external demand. The US government has tightened hi-tech exports to China over a range of issues including Beijing’s economic practices, its crackdowns in Hong Kong and alleged human rights abuses in Xinjiang. Zhang said China needs to leverage its resources better by closely connecting cities to pool resources and prevent losing its industries to low cost developing countries. “It is not necessary for these industries to exit eastern China, they can relocate to the central and western regions. But because it is expensive to move, it’s cheaper to just leave,” Zhang said in an interview with the state-backed China News Weekly last week. “We are already seeing some changes in policy from the central government to help offset restrictions of asset and capital movement across different provinces.” US President Joe Biden vows China “will not win this race” amid electric vehicle rivalry [ I add this video to the SCMP videos for the better music :0) ] Zhang said the hurdles of moving capital and assets within China has obstructed industry development because local governments always wish to retain resources. “The most important task is to change the evaluation of local government officials. Take the Yangtze River Delta as an example, in the future, the assessment of Jiangsu, Zhejiang and Shanghai officials could consider including integrated development as a benchmark,” Zhang said. Analysts also believe it is unlikely that China will completely walk away from infrastructure and property spending as an option to boost its economy despite Beijing’s debt concerns, and whether China can transform into a tech powerhouse may depend on delivery from local governments. There is often a choice between partial and overall, short-term and long-term [economic planning] - Li Xiaohua Li Xiaohua, an associate professor at the Institute of Industrial Economics at CASS, said that some local governments are more inclined to focus on short-term economic growth. They are inclined to pour resources into hi-tech industries, but this often leads to over capacity and advanced development being turned into low quality projects. “There is often a choice between partial and overall, short-term and long-term [economic planning],” Li wrote in the official People’s Tribune magazine last week. “Some local governments only consider building a small market in the region and engage in their own small economic cycle, but do not care about building a unified national market and help national development.”

To: Cogito Ergo Sum who wrote (177797)

9/6/2021 1:31:16 AM

From: TobagoJack

Read Replies (1) | Respond to of 218800

All very exciting ...

bloomberg.com

China’s ‘Mr. Income Distribution’ Explains Common Prosperity
6 September 2021, 09:03 GMT+8
China’s push for “common prosperity” is not just about taxing the rich but also directing resources into rural areas and the lower-income group, according to one of the country’s most prominent experts studying income inequality.

The income gap has widened in the country over the past five years due to the rise of technology and financial sectors, and taxation has done little in narrowing the gap, said Li Shi, an economics professor at Zhejiang University, who has previously advised the government on poverty alleviation. He’s known in international academic circles as “Mr. Chinese income distribution” because of his work, according to the university’s website.

China’s top leaders have ramped up a campaign to address inequality in the country, pledging to grow the economy and better redistribute incomes. That would require raising taxes on individuals, including rolling out a property tax and inheritance tax, and boosting spending on public services in villages, according to Li.

Here are highlights from a recent interview with Li, which has been lightly edited for clarity:

How bad is China’s income inequality?China’s income gap has expanded since the 1980s to reach a peak in 2008, when the Gini coefficient reached around 0.5. After that, it declined for a few years slowly, but has rebounded since 2015. Now it’s at a high level of around 0.47, according to an official estimate. The actual income gap could be larger, because the estimate is based on household surveys, which tend to under-represent high-income respondents.

China is among the 20% most unequal countries in the world. Inequality is quite serious. The inequality within cities and within rural areas has also been expanding. Now urban residents roughly earn 2.5 times that of rural residents. The main problem is unbalanced development, with the household registration system restricting people’s movement and leading to all kinds of discrimination for migrant workers.

In addition, China’s overall development strategy has focused on cities and neglected villages. A city-oriented strategy has led to public services concentrated in urban areas, hurt the economy in rural areas and the income growth of residents there.

Read More on the Topic

What ‘Common Prosperity’ Means and Why Xi Wants It: QuickTake Xi Tests ‘Common Prosperity’ Policies in Alibaba’s Home Province Why China’s Been Changing Its Mind About Billionaires: QuickTake China’s Communist Party Vows to Both Grow and Share Economic Pie

What’s caused the rebound in China’s Gini coefficient in recent years?Many new industries have emerged, especially the digital economy has expanded rapidly in recent years. Digital platforms, coupled with AI technology, have attracted highly-educated workers who enjoy high wages that also grow fast. In addition, China’s expanding financial industry has a strong monopolistic characteristic, which led to exceptionally high salary. Wages in other industries expanded slowly at the same time.

The rapid rise of income from assets also contributed to inequality, because high earners usually have more assets than low-income groups. Even though the government has dialed up taxation and transfer payments, it has failed to reverse the trend of a widening income gap. As China’s economy slowed, low-income groups suffered more from slower income growth, contributing to the wider gap.

How do you evaluate Zhejiang province’s plan to achieve common prosperity?Zhejiang’s plan has two priorities: achieving high-quality growth and sharing wealth. The policies are mainly on narrowing the income gap, equalizing access to basic public services and narrowing the urban-rural gap. The next step is to formulate specific implementation rules so they can make a real impact. For example, questions like whether it should launch a property tax or inheritance tax, and whether it should reform the personal income tax -- all of these details will need to be confirmed, which will take some time.

On one hand, we need to lift the income of rural residents and people in poorer areas. On the other hand, we need to enhance the quality of public services, including education and medical services. The goal is also about narrowing people’s development gap, giving children and teenagers more education opportunities to create higher-quality human capital.

How should China reform its tax system?China’s taxation has played a very limited role in redistributing income. There are two types of taxes: direct tax and indirect tax. Direct tax helps narrow income inequality, while indirect tax widens it. In China, the proportion of direct taxes is low, accounting for a third of the fiscal revenue, while indirect tax makes up two thirds. The ratio is usually reversed in developed countries. If we don’t enhance the tax structure, it would be difficult for taxation to adjust income distribution.

China needs to increase direct taxes, including income tax, property tax and inheritance tax -- all the taxes directly imposed on residents. It can increase the share of direct tax under the condition of maintaining the overall tax burden.

When will China roll out the property tax to more places?Despite many discussions on launching a property tax, it still hasn’t entered the legislation process. It’s hard to tell how long this will take. Policy makers also have other considerations: a property tax could be a shock to the economy and create a negative impact. The economy is currently in a sluggish state and is still recovering from the impact of the pandemic. A property tax could be a blow to the property sector and weigh on housing prices. It’s a question whether the economy can withstand it. So such policies are best to be launched when the economy is booming.

What kind of social reforms are needed to address the urban-rural gap?

There’s a huge difference between public services in rural areas and cities, such as the quality of schools and teachers. We need to invest more resources in rural areas and poorer regions through public spending. The government also needs to use more of its expenditure on improving people’s livelihood. We need to make greater use of taxes to adjust high earners’ income and use transfer payment to improve low-income groups’ earnings.

What role should private businesses play in promoting common prosperity?The private economy should play an important, positive role. That’s the experience from Zhejiang, which has lower inequality with better growth. The private economy, especially small businesses, played a critical role in that. Zhejiang’s private businesses are dynamic and provided lots of jobs, attracting workers from other provinces. Without the private economy, common prosperity is just an empty slogan.

How will life of the rich be affected?Rich people’s lives won’t change much. Top leaders have repeatedly said that common prosperity is not egalitarianism or robbing the rich to feed the poor. Rich people may have to make more contribution in terms of taxes and charitable donations. But paying 5% or 10% more taxes won’t bring a huge impact to their lives.

— With assistance by John Liu, and Yujing Liu

(Updates with comments from officials in third paragraph.)

Before it's here, it's on the Bloomberg Terminal.
LEARN MORE

To: Cogito Ergo Sum who wrote (177797)	9/6/2021 4:21:39 AM
From: TobagoJack	Read Replies (1) \| Respond to of 218800

the crackdown is beginning to feel satisfying, and therefore good however, let us see if revolution engulfs all, even the good saplings continuing to be fascinated frankly, the fans comprising the club are luck that folks other than Xi is in charge bloomberg.com China's Weibo Bans BTS Fan Account for Illegal Fundraising 6 September 2021, 13:32 GMT+8 Beijing (AP) -- Chinese social media platform Weibo banned a fan club of popular South Korean K-pop band BTS from posting for 60 days, saying it had raised funds illegally, days after photographs of a customized airplane funded by the fan club were posted online. The fan club account, which had over 1.1 million followers on Weibo, was centered around BTS member Jimin. The restrictions imposed on the account came amid China’s campaign to clean up the entertainment industry and clamp down on “irrational behavior” exhibited by fans. Chinese President Xi Jinping has called for a “national rejuvenation” with tighter Communist Party control of business, education, culture and religion. The party has since reduced children’s access to online games and is trying to discourage what it sees as unhealthy attention toward celebrities. Last week, the government banned effeminate men on TV and banned idol development shows for their “low moral values” that could be a bad influence on the youth. The BTS fan account was banned from posting on Weibo after images circulated online last week of a customized airplane from Jeju Air with images of Jimin on it. The customized airplane was part of the club’s plans to celebrate his 26th birthday in October. The stunt drew swift criticism online for its excess. Following the backlash, the account issued a statement last week on its feed urging fans to be “rational” when chasing celebrities for a “harmonious and healthy internet environment.” Weibo said in a statement Sunday that the group has been banned from posting for 60 days after it was found to have raised funds illegally. “Weibo firmly opposes such irrational star-chasing behavior and will deal with it seriously,” the statement said. The fan club began raising money in April to prepare for the birthday celebrations, according to state-owned media Global Times, with over 1 million yuan ($150,000) raised in the first three minutes of the fundraising activity and 2.3 million yuan ($360,000) in the first hour. The club also planned to run advertisements celebrating Jimin’s birthday in newspapers like The New York Times. It is not uncommon for K-pop fans worldwide to celebrate the birthdays of their favorite celebrities by taking out advertisements in newspapers and billboards or customizing public transport vehicles with images of their idols. Many fans also fundraise to donate to charitable causes such as funding education for the underprivileged or sponsoring wild animals in stars' names as part of such celebrations. Weibo also said in a separate statement on Sunday that it banned 21 other fan accounts for 30 days for posting “irrational star-chasing” content. The banned fan accounts were mostly centered around K-pop celebrities, such as members of South Korean boy bands NCT and EXO, and girl group Blackpink. Celebrities in China are often pressured to conform to values espoused by the Chinese government or face the repercussions. Celebrities such as Fan Bingbing and Zheng Shuang have been fined heavily for evading taxes, and popular actress Zhao Wei last week had her name removed from credits of films and TV shows she had starred in without explanation. Chinese singer and actor Lu Han, a former member of popular K-pop group EXO, said Sunday that he would cut ties with Swiss luxury watch brand Audemars Piguet after a video circulated online last week showing its CEO refer to Taiwan as an “ultra-modern, high-tech country.” China, which claims Taiwan as its territory, objects to any reference to the self-governing island as a country. Under the one-country policy, other countries have diplomatic relations with either China or Taiwan, but not both. Before it's here, it's on the Bloomberg Terminal. LEARN MORE