In recent years, as foreign investment has dried up, particularly with the outflow of foreign capital in the last six months, Chinese bankers and corporate executives have increasingly relied on domestic capital. A popular method for accessing these funds might very well be a card game called "Guandan." This game has been present in some cities for decades, and in the past few years, market participants have discovered that "Guandan" is very popular in the affluent regions of the east, revitalizing risk investment and finance industries across China rapidly.
Investment banker Yang Yiming stated that their partners are fond of this game, and to reach agreements or partnerships quickly, they must follow the market "trend" and play along with them. Yang Yiming's job includes securing government funding for projects related to semiconductors and defense.
This month, U.S. President Joe Biden banned some American investments in China's semiconductor sector and imposed controls on other sensitive industries, aiming to curb trade and financing that could give China a technological advantage. According to data from PitchBook, last year's venture capital from the U.S. to China plummeted from $32.9 billion in 2021 to just $9.7 billion.
As investment prospects dim, more market practitioners view this game as a way to establish connections with relevant personnel who have control over projects, especially those overseas investors might consider too risky. A practitioner in Beijing mentioned that company executives have ordered all staff to learn the game.
A businessman surnamed Huang, who runs a private club, pointed out that by observing a person's style of play, you can tell whether they are intelligent, entrepreneurial, or good at teamwork. These insights can help you decide whether you want them as your business partner. Many "Guandan" players note that the game not only provides mental stimulation but also the social interaction they need.
Lawyer Li Keshu mentioned that playing with friends in the park during the pandemic helped him cope with the social isolation and economic setbacks of the COVID-19 era. Unlike "Texas Hold'em" or Mahjong, this game can be enjoyed without spending money.
Despite players interviewed by Reuters firmly stating that it is just a game and not gambling, there have been numerous industry professionals in recent years triggered by this or similar games due to relevant laws and regulations.
Currently, the rise of "Guandan"-type card games across various sectors has not caused concern or unease among relevant departments. On the contrary, some authorities are promoting the development of such games. For example, China's national sports authority organized the first national "Guandan" competition this year.
