Hi this is Philip Glamann in Beijing, where pessimism about the future of China-US ties is mounting. One big reason for that is President-elect Donald Trump picked Marco Rubio as his secretary of state this week. Rubio has made clear his distaste for the ruling Communist Party, calling for the US to get much tougher on China both economically and militarily. Read about the people Trump is picking for his Cabinet here and why subservience is a major job qualification here. Right back at you, Beijing has essentially said to the Republican from Florida over the years. Chinese state media once called him one of Washington's "political weirdos," and Beijing has sanctioned him twice as it sparred with Washington over Hong Kong and Xinjiang issues. Marco Rubio Photographer: Victor J. Blue/Bloomberg Those moves would make Rubio the first sitting secretary of state ever sanctioned by China and bar the US's top diplomat from coming here. The nations could eventually work out an agreement allowing trips to happen but it's unclear when and how that might work. Rubio becoming secretary of state would be "a nightmare come true" for Beijing, said Zhu Junwei, a former researcher in the People's Liberation Army who is now director of American research at Grandview Institution in Beijing. "China has to consider what to do with the sanctions before being able to have any engagement with him," she added. Two other Trump picks for top posts are also pretty worrisome for China. Congressman Mike Waltz, who once declared America was in "a Cold War with the Chinese Communist Party," is set to become national security advisor. And Elise Stefanik, the nomination for US envoy to the UN, has cited countering national security and economic threats posed by the Asian country as one of her priorities when serving as congresswoman. Looming over all of this is Trump's threat to hit Chinese exports to the US with 60% tariffs. That step would deal a savage blow to trade between the world's two largest economies and massively complicate Beijing's efforts to turn the economy around. Read our story on how China might respond to tariffs here. Of course, Trump won't just be surrounded by China hawks. Elon Musk, who makes Teslas in the country and is friendly with Premier Li Qiang, may be a tempering voice, though he'll be busy trying to make the US government more efficient. Still, Trump's first term was a period of pretty interesting times in China-US ties, like the tit-for-tat consulate closures. Buckle up for Interesting Times 2.0. What We're Reading, Listening to and Watching: Back in 2018, Lululemon had about 10 stores in China. Fast forward to 2024 and it has 130 and hit $1 billion in Chinese sales for the first time. To say that explosive growth is surprising would be an understatement, especially considering how the economy is slowing and as changing tastes batter brands like LVMH and Starbucks. Read our full story about Lululemon's success in China here. Lululemon's flagship store in Shanghai in October. Some of Lululemon's success is partly due to a changing definition of luxury in China. "Health and wellness are the new luxury categories in China," said Jessica Gleeson, the CEO of retail consultancy BrighterBeauty. Even Shanghai, once a hub of cutting-edge office fashion, is becoming "a city of sneakers and athleisure," she adds. On top of that, the pandemic's work-from-home legacy has ushered in an era of loose, comfy clothing that's boosting athleisure brands everywhere. Other such labels are also becoming pretty popular in China. Think outdoor gear maker Arc'teryx, footwear company Hoka and ski wear label Descente, whose goods can easily be spotted in places like Beijing's trendy Sanlitun area. Here's just how popular Lululemon is in China. Its goods are flying off shelves despite the fact that they cost 20% more than in the US. 20%! The means yoga pants run upward of $150 and jackets are like $600. That's even in a retail landscape packed with local brands hawking "dupes" of the company's clothes for a third of the price. Mila Li, 33, a white collar worker in Shanghai, said she was willing to splash out more for Lululemon because it's better made than its rivals. She also correctly points out that "only when wearing the best pants am I motivated to exercise." |
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