China
What is exactly the China model ?
But what exactly is the China model and does it pose a threat to the Western model of liberal democracy and free markets?
The US–China trade war has brought to the boil a simmering strategic rivalry between Washington and Beijing that some have begun to describe as a new Cold War.
The Cold War analogy is something of a stretch given the interdependence of the Chinese and American economies — an interdependence sometimes referred to as ‘Chimerica’. The US–China relationship and rivalry today is very different from that of the United States and the USSR during the Cold War when the two superpowers conducted trade and investment in different spheres of influence, and presided over radically different systems for organising the means of production and markets.
Even though China and the United States are today nowhere near as ideologically divided as the United States and the USSR, a powerful narrative has emerged that the American-led model of free markets and liberal democracy is being challenged by a new Chinese model of development.
The idea of a China model has gained traction on the back of decades of strong economic growth, and in the wake of Beijing’s success in steering the country through the Great Recession of 2008–09. Interest in a China model of development has also been boosted by the crises and instability confronting Western democracies, as well as the apparent failure of liberal democracy to deliver economic benefits and stability to many newly democratic countries in Asia and other parts of the world.
China’s success and its growing clout has prompted Western strategists to worry that Beijing will use its economic strength and influence to promote the Chinese model of development as an alternative to liberal democracy. Those anxieties are amplified by Chinese President Xi Jinping’s muscular approach to foreign affairs and grand ambitions to extend trade and investment across Eurasia under the auspices of the Belt and Road Initiative.
What exactly is the China model
But what exactly is the China model and does it pose a threat to the Western model of liberal democracy and free markets?
Within China, advocates for a China model point to a strong developmental state, gradual institutional reform, selective and cautious borrowing of foreign ideas, and a trial-and-error approach to policy making and reform.
Western observers tend to highlight the heavy hand of the state in the economy (state capitalism) alongside the suppression of dissent and rejection of political liberalisation.
Although the Chinese Communist Party’s (CCP) successes are the envy of many political elites in Southeast Asia and elsewhere, there is little evidence that Beijing is actively promoting its governance model as part of its expanding influence in the region.
Certainly, Beijing is willing to engage less critically with illiberal regimes, and this runs counter to the interests of Western powers seeking to use aid and economic influence to promote liberal democratic reforms. But Beijing is not promoting one-party systems where multi-party democracies already exist. If anything, China’s appeal to regional leaders from Naypyidaw to Jakarta lies in Beijing’s ability, at least up until now, to marry political control and stability with rapid economic growth and reform.
In our lead essay this week, William Overholt argues that the China model doesn’t really exist. Even though China’s leaders and some Chinese commentators present China’s model as unique, Overholt suggests China’s approach differs little from the East Asian development model pursued by Japan, South Korea, Taiwan and Singapore in the past.
The spectacular growth of the Asian ‘tigers’ was also overseen by a single or dominant political party. And as in China, this growth was achieved ‘through gradual marketisation, gradual opening to foreign trade and investment, and vigorous import of industrial and regulatory best practice from successful Western economies’.
Overholt highlights another important point of similarity between China and the East Asian tiger economies — they all share a fear of social collapse that stems from the traumas of war and massive disruption, which has inspired leaders to ‘[suppress] normal public reaction against severely stressful social change’.
Overholt reminds us too that China since Deng had begun moving in a similar direction to the Asian tigers, stepping back from tight political control to allow for gradual marketisation and increased social and economic freedoms. Since Xi came to power, the so-called China model has begun to diverge from that of its predecessors. Even though China’s ambitious national economic…
Author: Editorial Board, ANU
China
China Unveils Plan to Upgrade Industrial Equipment
China unveiled a comprehensive action plan for upgrading industrial equipment, with a focus on driving technological innovation and economic growth. The plan, released on April 9, 2024, aims to enhance competitiveness and sustainability within the manufacturing sector through extensive investment and regulatory support.
China announced an ambitious action plan for industrial equipment upgrading, which aims to drive technological innovation and economic growth through extensive investment and regulatory support.
On April 9, 2024, China’s Ministry of Industry and Information Technology (MIIT) and six other departments jointly released a notice introducing the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector (hereafter referred to as the “action plan”).
Finalized earlier on March 23, 2024, this comprehensive action plan addresses critical issues related to technological innovation and economic development. It reflects China’s proactive stance in enhancing competitiveness and sustainability within its manufacturing sector. The initiative underscores the recognition of industrial equipment upgrading as a top policy priority.
The scope of China’s action plan to upgrade industrial equipment in manufacturing, is extensive, covering various aspects such as:
In line with China’s ambitious goals for industrial modernization and sustainable development, the action plan outlines several key objectives aimed at driving substantial advancements in the industrial sector by 2027.
These objectives encompass a wide range of areas, from increasing investment to enhancing digitalization and promoting innovation, including:
The objectives and key actions proposed in the action plan are summarized below.
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
China deepens engagement with new Indonesian president as top diplomat visits Jakarta
China’s top diplomat met the outgoing Indonesian president and his successor in Jakarta on Thursday, as Beijing deepened its engagement with future leader Prabowo Subianto, amid a competition for regional influence with the United States.
The meeting with Chinese Foreign Minister Wang Yi was part of a joint commitment to advance the partnership between the two countries, said Prabowo, who visited Beijing in early April after his landslide win in the February general election.
“It is a great honor for me to welcome him [Wang] today. Thank you for the kind reception I received in Beijing a few weeks ago,” Prabowo said, according to an Indonesian defense ministry statement.
Chinese President Xi Jinping had invited Prabowo to visit, and the latter accepting the invitation raised eyebrows in Indonesia because no president-elect had made a foreign visit such as this one without being sworn in. China is Indonesia’s largest trading partner.
Wang, too, mentioned Prabowo’s Beijing trip, according to the same statement.
“We really appreciate and welcome Defense Minister Prabowo’s visit to China,” he said.
“We are committed to continuing to increase bilateral cooperation with Indonesia, both in the defense sector and other fields such as economic, social and cultural.”
Wang is scheduled to go to East Nusa Tenggara province on Friday to attend the China-Indonesia High-Level Dialogue Cooperation Mechanism, a process to support more effective bilateral cooperation. His Jakarta stop was the first of a six-day tour that also includes Cambodia and Papua New Guinea.
Prabowo and Wang discussed cooperation in the defense industry and sector, with potential measures such as educational and training collaboration, as well as joint exercises, said Brig. Gen. Edwin Adrian Sumantha, spokesman at the Indonesian defense ministry.
In fact, the ministry statement said that “China is Indonesia’s close partner and has had close bilateral relations, especially in the defense sector, for a long time.”
Of course, China has also invested billions of U.S. dollars in infrastructure projects in Indonesia, including as part of Beijing’s Belt and Road Initiative – the Jakarta-Bandung high-speed train, which began commercial operations in October 2023, is one such BRI project.
The two countries have drawn closer during outgoing President Joko “Jokowi” Widodo’s two terms, and Beijing would like that to continue as the U.S. tries to catch up with China’s gargantuan influence in Southeast Asia, analysts have said.
Indonesia, China call for ceasefire in Gaza
Both Indonesia and China shared the same position on Israel’s devastating attacks on Gaza, said Wang’s Indonesian counterpart, Retno Marsudi.
Israel’s air and ground strikes have killed more than 33,000 Palestinians following the Oct. 7 attack on the Jewish state by Palestinian militant group Hamas, which killed around 1,100 Israelis.
“We … have the same view regarding the importance of a ceasefire in Gaza and resolving the Palestinian problem fairly through two state solutions,” Retno told reporters in a joint press conference after meeting with Wang.
“Indonesia will support full Palestinian membership in the U.N. Middle East stability will not be realized without resolving the Palestinian issue.”
For his part, Wang slammed Washington for repeatedly vetoing resolutions calling for Israel to end the attacks on the Palestinian territory it occupies.
“The conflict in Gaza has lasted for half a year and caused a rare humanitarian tragedy in the 21st century,” Wang told the media at the same press conference, according to the Associated Press.
“The United Nations Security Council responded to the call of the international community and continued to review the resolution draft on the cease-fire in Gaza, but it was repeatedly vetoed by the United States.”
The conflict in the Middle East offered a strategic opportunity for China to further expand its influence in Southeast Asia, said Muhamad Arif, a lecturer in international relations at the University of Indonesia.
“China is trying to strengthen its position as a key player in the region,” Arief told BenarNews.
China could present an alternative approach to the conflict in Gaza, he said, which may find approval in Southeast Asia’s largest country, Indonesia, and other Mulism-majority states in the region, such as Malaysia and Brunei.
BenarNews is an RFA-affiliated online news organization.
Read the rest of this article here >>> China deepens engagement with new Indonesian president as top diplomat visits Jakarta
China
New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
The sixth revision of China’s Company Law is the most extensive amendment in history, impacting foreign invested enterprises with stricter rules on capital injection and corporate governance. Most FIEs must align with the New Company Law by July 1, 2024, with a deadline of December 31, 2024 for adjustments. Contact Dezan Shira & Associates for assistance.
The sixth revision of China’s Company Law represents the most extensive amendment in its history. From stricter capital injection rules to enhanced corporate governance, the changes introduced in the New Company Law have far-reaching implications for businesses, including foreign invested enterprises (FIEs) operating in or entering the China market.
Since January 1, 2020, the Company Law has governed both wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs), following the enactment of the Foreign Investment Law (FIL). Most FIEs must align with the provisions of the New Company Law from July 1, 2024, while those established before January 1, 2020 have bit more time for adjustments due to the five-year grace period provided by the FIL. The final deadline for their alignment is December 31, 2024.
In this publication, we guide foreign investors through the implications of the New Company Law for existing and new FIEs and relevant stakeholders. We begin with an overview of the revision’s background and objectives, followed by a summary of key changes. Our in-depth analysis, from a foreign stakeholder perspective, illuminates the practical implications. Lastly, we explore tax impacts alongside the revisions, demonstrating how the New Company Law may shape future business transactions and arrangements.
If you or your company require assistance with Company Law adjustments in China, please do not hesitate to contact Dezan Shira & Associates. For more information, feel free to reach us via email at china@dezshira.com.
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.
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