Sino Strategies: China's Influence & its Implications for the U.S.

Summary

• The card game Guandan has become increasingly popular among all levels of Chinese society.
• The card game has also raised concerns of political and economic corruption as Communist Party officials and financial professionals have used the card game as a pastime and networking activity.
• Xi Jinping will likely continue to take action to curb the rising popularity of the game. Different U.S. stakeholders may use this moment to their advantage.

Introduction to Guandan

A card game has become very popular – for some, too popular – across China. Guandan, which literally translates to “throwing eggs,” has taken the People’s Republic by storm, with everyone from business leaders to school children among its 140 million active players around the world. Its reach has even extended to elite circles in China’s Communist government and financial sectors. 

As Guandan’s popularity and pervasiveness have grown, so too have concerns that the game may be fueling corruption among Communist Party officials.  

The Rise of Guandan

Guandan is a poker-like card game played with two decks of cards and four players. The game originated in Jiangsu, one of the wealthiest provinces in China, in the 1960s, and the provincial government has been promoting the game for years as one of the region’s cultural hallmarks. Its popularity had been growing regionally among all levels of Chinese society, from kids on school playgrounds to executives in corporate boardrooms. 

Guandan is now even more commonly played in the Chinese finance sector as U.S. curbs on investment in China over the past few years have altered the strategic landscape. As a result, and with fewer international investment options at their disposal, financial professionals in Chinese cities have taken up playing Guandan as a means of socializing in an attempt to woo local businesses. The game is easy to learn and easy to play, making its widespread adoption easier than that of a more involved game such as mahjong. 

Corruption Fears

In recent weeks, as Guandan’s popularity has grown and its reach has spread to the higher echelons of China’s political system, concerns have grown that the game may be generating increased political corruption. Indeed, the Beijing Youth Daily newspaper suggested in several published articles that the game could be fostering a culture of corruption and laziness, dubbed the “lying-flat culture,” where leisure and entertainment are prioritized at the expense of productivity. It has also been described as a new means for certain businesses or individuals to curry favor with Chinese officials. 

Due to these concerns, Chinese state employees are being advised against playing Guandan, joining a list of entertainment including golf and tennis that were targeted in the signature anti-corruption drive that President Xi Jinping launched over ten years ago. Given the extent of Xi’s crackdown on corruption since he came to power, it is unlikely that Guandan will see curbs in the near future.

Implications for the U.S.

1. U.S. Policy Implications

While political corruption in general – and Communist corruption among Chinese officials in particular – is not a new challenge faced by U.S. policymakers, the rise in popularity of Guandan and accompanying concerns around political corruption are a reminder that power can be fraudulently wielded in unexpected ways. American policymakers must continue to fight against corruption, and the U.S. government should seek to work with Xi Jinping and the CCP against the rise of further corruption in China and the rest of the world. 

2. U.S. Business Implications

American companies interested in operating or localizing part of their value chain in China may consider learning how to play Guandan. This would give U.S. companies an edge over their competitors in terms of winning business in China, and it would reinforce these U.S. companies’ ability to curry favor with their Chinese partners over the long term. 

3. U.S. Consumer Implications

For U.S. consumers, Guandan’s rise indicates the long road that China’s economy must still face before recovering from the headwinds of the COVID-19 pandemic, a faltering property market, and tighter economic reforms.