China
New Bohai Bay Leak Looks to be Less Severe
Associated Press/Xinhua An oil rig at the Jinzhou 9-3 Oilfield off the coast of Jinzhou, in a photo released by the state-run Xinhua News Agency. A fresh oil leak in China’s Bohai Bay appears to be far less severe than a series of recent mishaps in the northern waters that sparked a national outrage and knocked one of the nation’s largest offshore production bases out of action. In the latest incident, owner-operator China National Offshore Oil Ltd.’s Cnooc Ltd. unit said Friday it has taken 1,600 barrels per day of production offline to deal with the spill and surface sheens. The company didn’t estimate when the production might resume. Cnooc said its initial estimate of the Jinzhou 9-3 West oil spill — caused when a working vessel dragged an anchor across an undersea pipeline and ruptured it — was 0.38 cubic meters, or just over two barrels. That’s a far cry from a series of leaks in recent months at a separate Bohai Bay production base, which 51% owned by Cnooc and 49% by Houston-based ConocoPhillips, operator of the field. More than 3,300 barrels of oil was spilled during multiple incidents over the summer at a site called Peng Lai, sparking harsh public and government criticism of the U.S. company’s performance and prompting authorities to order the production to be shuttered in early September. China’s State Oceanic Administration said it scrambled aircraft and boats Friday night after the latest spill but also suggested in a statement (in Chinese) that the incident was minor and Cnooc’s response was adequate. The spill news was getting relatively little attention in China’s media. At least one official of the Oceanic administration, which manages China’s offshore activity, has described the spills around Peng Lai as China’s worst offshore accident. The agency continues to feature news about the incident prominently on its website. The incidents grabbed headlines for weeks in China, as well as senior leadership attention. In daily reports , Conoco has chronicled its efforts to deal with the aftermath of the accidents in the hopes of eventually returning to production, saying it is working under the active supervision of its partner Cnooc. Conoco, which has taken initial steps to pay compensation , says its ongoing efforts include reducing undersea pressure around Peng Lai that it says caused oil to seep out and to look for ways to seal sources of the leaking. It is also revising its overall development plan. –James T. Areddy; Follow him on Twitter @jamestareddy
- Associated Press/Xinhua
- An oil rig at the Jinzhou 9-3 Oilfield off the coast of Jinzhou, in a photo released by the state-run Xinhua News Agency.
A fresh oil leak in China’s Bohai Bay appears to be far less severe than a series of recent mishaps in the northern waters that sparked a national outrage and knocked one of the nation’s largest offshore production bases out of action.
In the latest incident, owner-operator China National Offshore Oil Ltd.’s Cnooc Ltd. unit said Friday it has taken 1,600 barrels per day of production offline to deal with the spill and surface sheens. The company didn’t estimate when the production might resume.
Cnooc said its initial estimate of the Jinzhou 9-3 West oil spill — caused when a working vessel dragged an anchor across an undersea pipeline and ruptured it — was 0.38 cubic meters, or just over two barrels.
That’s a far cry from a series of leaks in recent months at a separate Bohai Bay production base, which 51% owned by Cnooc and 49% by Houston-based ConocoPhillips, operator of the field. More than 3,300 barrels of oil was spilled during multiple incidents over the summer at a site called Peng Lai, sparking harsh public and government criticism of the U.S. company’s performance and prompting authorities to order the production to be shuttered in early September.
China’s State Oceanic Administration said it scrambled aircraft and boats Friday night after the latest spill but also suggested in a statement (in Chinese) that the incident was minor and Cnooc’s response was adequate. The spill news was getting relatively little attention in China’s media.
At least one official of the Oceanic administration, which manages China’s offshore activity, has described the spills around Peng Lai as China’s worst offshore accident. The agency continues to feature news about the incident prominently on its website. The incidents grabbed headlines for weeks in China, as well as senior leadership attention.
In daily reports, Conoco has chronicled its efforts to deal with the aftermath of the accidents in the hopes of eventually returning to production, saying it is working under the active supervision of its partner Cnooc.
Conoco, which has taken initial steps to pay compensation, says its ongoing efforts include reducing undersea pressure around Peng Lai that it says caused oil to seep out and to look for ways to seal sources of the leaking.
It is also revising its overall development plan.
–James T. Areddy; Follow him on Twitter @jamestareddy
Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2009 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income.
The Chinese government seeks to add energy production capacity from sources other than coal and oil, and is focusing on nuclear and other alternative energy development.
The country’s per capita income was at $6,567 (IMF, 98th) in 2009.
Nevertheless, key bottlenecks continue to constrain growth.
China is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.
China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites, but most of its industrial output still comes from relatively ill-equipped factories.
By the early 1990s these subsidies began to be eliminated, in large part due to China’s admission into the World Trade Organization (WTO) in 2001, which carried with it requirements for further economic liberalization and deregulation.
Both forums will start on Tuesday.
“The growth rate (for ODI) in the next few years will be much higher than previous years,” Shen said, without elaborating.
China is expected to have 200 million cars on the road by 2020, increasing pressure on energy security and the environment, government officials said yesterday.
China’s challenge in the early 21st century will be to balance its highly centralized political system with an increasingly decentralized economic system.
Agriculture is by far the leading occupation, involving over 50% of the population, although extensive rough, high terrain and large arid areas – especially in the west and north – limit cultivation to only about 10% of the land surface.
China is the world’s largest producer of rice and wheat and a major producer of sweet potatoes, sorghum, millet, barley, peanuts, corn, soybeans, and potatoes.
Livestock raising on a large scale is confined to the border regions and provinces in the north and west; it is mainly of the nomadic pastoral type.
China is one of the world’s major mineral-producing countries.
China’s leading export minerals are tungsten, antimony, tin, magnesium, molybdenum, mercury, manganese, barite, and salt.
Major industrial products are textiles, chemicals, fertilizers, machinery (especially for agriculture), processed foods, iron and steel, building materials, plastics, toys, and electronics.
Since the 1980s China has undertaken a major highway construction program.
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New Bohai Bay Leak Looks to be Less Severe
China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Q1 2024 Brief on Transfer Pricing in Asia
Indonesia’s Ministry of Finance released Regulation No. 172 of 2023 on transfer pricing, consolidating various guidelines. The Directorate General of Taxes focuses on compliance, expanded arm’s length principle, and substance checks. Singapore’s Budget 2024 addresses economic challenges, operational costs, and sustainability, implementing global tax reforms like the Income Inclusion Rule and Domestic Top-up Tax.
Indonesia’s Ministry of Finance (MoF) has released Regulation No. 172 of 2023 (“PMK-172”), which prevails as a unified transfer pricing guideline. PMK-172 consolidates various transfer pricing matters that were previously covered under separate regulations, including the application of the arm’s length principle, transfer pricing documentation requirements, transfer pricing adjustments, Mutual Agreement Procedure (“MAP”), and Advance Pricing Agreements (“APA”).
The Indonesian Directorate General of Taxes (DGT) has continued to focus on compliance with the ex-ante principle, the expanded scope of transactions subject to the arm’s length principle, and the reinforcement of substance checks as part of the preliminary stage, indicating the DGT’s expectation of meticulous and well-supported transfer pricing analyses conducted by taxpayers.
In conclusion, PMK-172 reflects the Indonesian government’s commitment to addressing some of the most controversial transfer pricing issues and promoting clarity and certainty. While it brings new opportunities, it also presents challenges. Taxpayers are strongly advised to evaluate the implications of these new guidelines on their businesses in Indonesia to navigate this transformative regulatory landscape successfully.
In a significant move to bolster economic resilience and sustainability, Singapore’s Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, unveiled the ambitious Singapore Budget 2024 on February 16, 2024. Amidst global economic fluctuations and a pressing climate crisis, the Budget strategically addresses the dual challenges of rising operational costs and the imperative for sustainable development, marking a pivotal step towards fortifying Singapore’s position as a competitive and green economy.
In anticipation of global tax reforms, Singapore’s proactive steps to implement the Income Inclusion Rule (IIR) and Domestic Top-up Tax (DTT) under the BEPS 2.0 framework demonstrate a forward-looking approach to ensure tax compliance and fairness. These measures reaffirm Singapore’s commitment to international tax standards while safeguarding its economic interests.
Transfer pricing highlights from the Singapore Budget 2024 include:
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
China has been the world’s largest manufacturer for 14 years, producing one-third of global manufacturing output. In the Emerging Asia Manufacturing Index 2024, China ranks highest among eight emerging countries in the region. Challenges for these countries include global demand disparities affecting industrial output and export orders.
Known as the “World’s Factory”, China has held the title of the world’s largest manufacturer for 14 consecutive years, starting from 2010. Its factories churn out approximately one-third of the global manufacturing output, a testament to its industrial might and capacity.
China’s dominant role as the world’s sole manufacturing power is reaffirmed in Dezan Shira & Associates’ Emerging Asia Manufacturing Index 2024 report (“EAMI 2024”), in which China secures the top spot among eight emerging countries in the Asia-Pacific region. The other seven economies are India, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Bangladesh.
The EAMI 2024 aims to assess the potential of these eight economies, navigate the risks, and pinpoint specific factors affecting the manufacturing landscape.
In this article, we delve into the key findings of the EAMI 2024 report and navigate China’s advantages and disadvantages in the manufacturing sector, placing them within the Asia-Pacific comparative context.
Emerging Asia countries face various challenges, especially in the current phase of increased volatility, uncertainty, complexity, and ambiguity (VUCA). One notable challenge is the impact of global demand disparities on the manufacturing sector, affecting industrial output and export orders.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
- China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
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