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China’s flagging economy — and Kanye West — give each other a helping hand

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China's flagging economy -- and Kanye West -- give each other a helping hand
TAIPEI, Taiwan —

As a long-time film enthusiast and music lover who has been following Kanye West‘s career since his debut album, it is truly fascinating to witness the power of the “concert economy” unfold in front of our eyes. The recent China tour by Kanye (or Ye as he now goes by) has not only provided a much-needed boost for China’s struggling economy but also offered a glimpse into the unique dynamics of the global music industry.

Ye’s (formerly Kanye West) rapid-fire trip through China has provided a timely financial uplift for the nation, which is striving to stimulate consumer expenditure, as well as for an artist who has faced setbacks in his domestic market due to various controversies affecting his commercial success.

On a Sunday, the Grammy-winning artist performed in Haikou, the capital city of Hainan Province, China’s southmost island. Initially, people were taken aback due to China’s history of strict regulations over foreign performers.

Initially, all 42,000 tickets were snapped up within mere minutes. Later on, the regional tourist office disclosed plans for an additional show. Kanye West subsequently shared news of a “listening party” on his Instagram account, set for September 28th.

The Haikou tourism bureau stated that this isn’t just another concert; it’s a new blossoming of musical enchantment and ongoing celebration for the audience.” (Paraphrased to use simpler, more common vocabulary and sentence structure)

The fervor over the American rapper’s return to China after 16 years highlights the power of the “concert economy,” in which governments have courted superstar performances to attract fans and promote tourism. Earlier this year, Taylor Swift agreed to limit her Southeast Asia tour exclusively to Singapore, to the chagrin of its neighboring countries.

The local government in Haikou announced that Ye’s “Vultures Listening Experience” generated an unprecedented $52.8 million in tourism income for the city, with 96.5% of tickets bought by visitors from beyond Hainan island. This event provided attractive offers on dining, lodging, and sightseeing, leading to increased activity during China’s Mid-Autumn festival break.

The Chinese economy is experiencing a slowdown and could greatly benefit from a boost, mainly through increased spending by consumers who have reduced their expenditure due to economic uncertainties. A decline in the real estate sector has led to falling house prices, while youth unemployment rates are on the rise. As reported by Nomura, the level of consumer confidence is close to its all-time lowest point.

Cities across China have been promoting domestic travel and boosting local spending. Many music enthusiasts viewed Ye’s visit as a compelling reason to spend money on a journey to the south.

As per Junjie Wang, a journalist specializing in China’s retail industry who publishes a newsletter, users on the Chinese social media platform known as Little Red Book (Xiaohongshu) claimed to have spent over $1,400 on trips to visit Ye during that specific period. Additionally, hotel bookings and sales at duty-free shops in Haikou saw a significant increase during the holiday.

In China, Ye received a warm welcome, which is particularly beneficial for him because his ticket sales have decreased and some brands have severed ties with him due to several offensive racial and anti-Semitic comments he made in recent times.

In China, these worries about offensive remarks have been disregarded. Conversely, official media have emphasized Ye’s tenuous link to China – he lived in China for a year as a child, and his mother, a professor of English, was employed at Nanjing University during that time.

Initially, the Haikou concert earned over $7 million from ticket sales, exceeding the $12 million generated during a five-show tour in the U.S. in February, as estimated by Billboard. Moreover, planned “listening sessions” with Ye and rapper Ty Dolla Sign in the U.S., scheduled for April, were ultimately canceled without disclosing a reason.

“Kanye West could potentially stimulate economic growth during challenging times and demonstrate that China is welcoming to global engagement, as suggested by his childhood connections with Nanjing. This serves both internal and external propaganda purposes, according to Yaling Jiang in her newsletter Following the Yuan. The Chinese government’s influence overshadows all market factors, and Western values, often perceived as universal, may not be fully applicable within China.

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2024-09-19 21:31

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