Connect with us

Hi, what are you looking for?

Finance

China’s Card Game Mania Is Influenced By US-Sino Relations

The US investment restrictions in China have been labeled as economic coercion and technology bullying, undermining the principles of fair competition and market-driven economies. (Photo: Development Morning Star)
The US investment restrictions in China have been labeled as economic coercion and technology bullying, undermining the principles of fair competition and market-driven economies. (Photo: Development Morning Star)

As foreign finance has dried up, China’s bankers and corporate executives have had to rely more and more on domestic capital in recent years, yet one common method of getting access to that money may very well include “throwing eggs.”

China’s Largest Trading Partner

The phrase alludes to Guandan, a card game similar to poker that has been played for decades. However, venture capitalists just recently became aware of its appeal among wealthy local government officials in eastern regions, giving the game new life.

Recruiting government money for projects related to semiconductors and defense is part of Yang Yiming’s work as an investment banker. “Officials like this game, so we play along,” Yang said.

A widespread enthusiasm for the game has been sparked by the expanding interest in business circles, which has been fueled in part by financial limitations brought on by deteriorating relations with China’s largest trading partner, the United States.

This month, U.S. President Joe Biden restricted trade and finance that would give China’s competitor Beijing a technological edge by banning some investments in semiconductors and other key industries.

According to PitchBook data, total venture capital investment from the United States into China decreased dramatically from $32.9 billion in 2021 to $9.7 billion last year.

Domestic private capital has also decreased as a result of President Xi Jinping’s recent crackdowns on industries ranging from technology to real estate and private tutoring, which served as a signal of his preference for a stronger state role in the economy.

Financers increasingly see the game as an opportunity to establish “guanxi,” or contacts with officials who control funding for local projects, particularly those that foreign investors might deem too risky, as investment prospects deteriorate.

Team Player

China

Source: CNN

“In finance, information is currency,” asserted Yang, for whom playing guandan is now a typical strategy before entertaining local dignitaries.

“We are bound to chit-chat during a game that can last for hours, and occasionally useful information gets passed around after people feel comfortable and trust you.”Beijing-based broker Yu Longze claimed this month that his boss had instructed all employees to become familiar with the game.

The game is played by four players paired up in teams, just like the traditional game of bridge. Players must use poker and other unique card combinations from two decks to clean their hands before rivals do.

“You can tell if a player is smart, aggressive, or a team player by watching how he plays. A businessman with the last name Huang, who oversees a private clubhouse where the game is played, said: “This can assist you decide if you want him as a business partner.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

You May Also Like

Crime

Texas man Eduardo Arevalo confessed of strangling his pregnant sister for being an “embarrassment” to the family in 2019. Texas Man’s 8 Months Pregnant...

Finance

Even though the last wave of the federal government stimulus checks was distributed over two years ago, at least three distinct states are still...

Finance

The US is expected to distribute further stimulus funds through a variety of initiatives. Direct cash, tax refund, or some other kind of assistance...

Crime

Cameron Wright, a 22-year-old was sentenced with 55 years in prison for killing, dismembering and throwing girlfriend’s body at separate locations according to his...