China has taken the lead worldwide in digital technologies, which are set to transform and create 10 to 45 percent of industry revenues by 2030, according to the latest report released by the think tank McKinsey Global Institute (MGI).
The report, titled Digital China Powering the Economy to Global Competitiveness, said China accounted for less than 1 percent of the global retail e-commerce transaction values in 2005 and the share is now 42.4 percent. The current value of China’s e-commerce transactions is estimated to exceed France, Germany, Japan, the United Kingdom and the United States combined.
Mobile payment penetration rate has increased from 25 percent in 2013 to 68 percent in 2016. Individual consumption via mobile payments totaled $790 billion in 2016, 11 times that of the US.
China’s venture capital industry is also focused on the digital world. The majority of investments are in digital technologies such as big data, artificial intelligence and financial technology companies.
In particular, China enters the top three in the world for venture capital investments in virtual reality, autonomous vehicles, robotics and drones, according to the report.
The gap between Chinese industries and more…
Balancing China’s labour migration through education
The 2020 Chinese census showed a 69.7% increase in domestic migrant numbers, leading to concerns about regional economic disparities and the impact of skilled labor migration on underdeveloped regions.
Yongjie Xiong, a scholar at the Central University of Finance and Economics, discusses the findings of the 2020 Chinese census, which revealed a 69.7% increase in domestic migrant numbers compared to 2010 data. This significant influx of people has sparked debates about the Chinese government’s approach to managing large-scale labor migration.
The shifting landscape of China’s migrant worker demographics reflects changes in employment sectors and educational attainment. Notably, a higher percentage of newer generations of migrant workers are involved in the manufacturing sector, indicating a shift away from sectors like construction. Additionally, the newer cohort of migrants is better educated, which has implications for labor dynamics in urban environments.
These changes in labor demographics could exacerbate regional economic disparities and impact technological developments in various regions. The depletion of skilled labor in underdeveloped areas could hinder growth and affect the technological decisions of firms, ultimately widening the economic gap between cities.
As regions grapple with the challenges and opportunities presented by labor mobility, examining the impact of these changes on the economy and society is crucial for informing future policy decisions.
Annual Confirmation for China IIT Special Additional Deductions to Commence on December 1st
Starting December 1, 2023, the confirmation process for annual individual income tax (IIT) special additional deductions begins in China. All individuals, including expatriates, should determine eligibility and confirm the information before the end of the month to avoid difficulties in tax savings.
Starting on December 1, 2023, the confirmation process for annual individual income tax (IIT) special additional deductions begins. All individuals, including expatriates working in China, are advised to determine their eligibility for relevant special additional deductions. If eligible, individuals should promptly confirm the special additional deduction information through designated channels before the end of the month. Failing to confirm the IIT special additional deduction information may result in unnecessary difficulties in tax savings for the following year.
In 2019, China introduced special additional deductions for specific expenditures. According to the amended IIT Law, the taxable income amount of a resident individual in China shall be the balance after deducting the standard deduction (RMB 60,000 per year), as well as special deductions (social insurance and housing fund contributions), special additional deductions, and other deductions determined pursuant to the law, from the income amount of each tax year.
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China’s top diplomat visits Vietnam ahead of likely Xi trip
Chinese Foreign Minister Wang Yi is expected in Vietnam Friday, paving the way for a possible visit by President Xi Jinping this month.
Wang will co-chair the 15th session of the Vietnam-China Bilateral Cooperation Steering Committee, an annual event, with Vietnam’s Deputy Prime Minister Tran Luu Quang.
Vietnam’s Ministry of Foreign Affairs says the Chinese foreign minister will have talks with his Vietnamese counterpart Bui Thanh Son and greet Communist Party General Secretary Nguyen Phu Trong and President Vo Van Thuong.
Xi – who is also the Chinese Communist Party General Secretary – was originally expected to visit Hanoi in October or November for talks with his counterpart Trong, who was in Beijing last year. Instead, Xi traveled to San Francisco for November’s APEC summit and a meeting with U.S. President Joe Biden. His Vietnam visit is now expected to take place from Dec. 14-16.
Since Trong’s 2022 China trip Vietnam has elevated its relations with the U.S. to a “comprehensive strategic partnership,” putting it on a par with China, along with India, Russia and South Korea. This week Vietnam also conferred its top partnership ranking on Japan during a visit to Tokyo by its president Vo Van Thuong.
Improved relations with Vietnam are likely to help the U.S. and Japan diversify supply chains and reduce their reliance on a politically and economically turbulent China. That in turn seems to have prompted Beijing to seek even stronger ties with Hanoi.
Carl Thayer, a Vietnam analyst and emeritus professor at the Australian Defense Force Academy in Canberra, said when Xi visits Hanoi he will likely want to discuss the same issues with Trong that U.S. President Joe Biden raised with the Vietnamese leader during their September meeting:
“[I]mproving the efficiency and stability of bilateral supply chains, creating better conditions for Chinese businesses to invest and operate in Vietnam, enhancing cooperation in e-commerce and the digital economy, increased science and technology joint research, education and training exchanges, … green development and climate change response, public health cooperation, protection of water resources along the Lancang-Mekong River, cross-border tourism and cultural exchanges, and coordination on international issues.”
China is Vietnam’s largest trading partner with bilateral trade rising 5.5% last year to US$175.5 billion, according to Vietnam’s Ministry of Industry and Trade.
China’s Commerce Minister Wang Wentao also visited Vietnam this week pledging to deepen trading ties and open the Chinese market to more agricultural imports.
Despite an improving trade relationship, Vietnam and China have clashed frequently over territorial claims in the South China Sea. Hoang Viet, an expert on the issue, told Radio Free Asia that Beijing is likely to tone down its rhetoric, in order to avoid souring top level relations.
“In anticipation of Xi Jinping’s visit to Vietnam, China may exercise maximum restraint to create a more moderate atmosphere,” he said.
Despite their differences in the South China Sea, China and Vietnam have been holding joint patrols between their navies and coast guards in the Gulf of Tonkin in November and December.
Beijing and Hanoi said the patrols aimed “to carry forward the traditional friendship and deepen mutual trust between the two countries, as well as further promote mutual understanding between the two militaries.”
Edited by Elaine Chan and Taejun Kang.
RFA Vietnamese contributed to this story.
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