China
‘Gaituguiliu’ causes division in Hong Kong
Author: Baogang He, Deakin University
Millions of people have recently marched through the streets of Hong Kong in protest against proposed amendments to the city’s Extradition Law. The upheaval has attracted significant analysis, but Hong Kong–mainland relations could perhaps be better understood from the perspective of ‘Gaituguiliu’.
Gaituguiliu refers to the traditional Chinese policy where the central government replaces the local rulers’ inheritance system with a central direct appointment system — a Chinese model of integration and grand union. This was facilitated through the use of Confucian culture and education. Gaituguiliu was practiced across many dynasties — in particular during the Ming and Qing eras — and can be seen as a ‘gene’ of Chinese civilisation. Variants of the policy can be seen today in Hong Kong, Tibet, Xinjiang and Inner Mongolia.
Hong Kong is theoretically governed under the ‘one country, two systems’ principle. But Beijing has adopted the ‘Grand Union’ policy and has asserted its ‘overall jurisdiction’ — comprehensive power to manage and rule Hong Kong as per the official White Paper of June 2014. For over 22 years, Gaituguiliu has eroded the ideal of ‘one country, two systems’.
From the perspective of Gaituguiliu, Beijing’s resistance and opposition to direct elections is understandable. Gaituguiliu believers are sceptical about democratic autonomy and believe that China needs a new version of Gaituguiliu to accelerate the process of integration towards a single administrative system where the central government appoints local governors. Conversely, many Hong Kongers demand universal suffrage and believe in the value of democratic autonomy.
Gaituguiliu’s influence can be seen in numerous areas. For example, Beijing has set up various government institutions and agencies in Hong Kong and has increasing power and influence. The Liaison Office of the Central People’s Government in Hong Kong is heavily involved in the management of Hong Kong affairs. Even the Chinese Communist Party has established party branches and recruits members there.
China promotes patriotic education and Mandarin Chinese as requirements of Gaituguiliu. The five interpretations of the ‘Hong Kong Basic Law’ issued by the National People’s Congress Standing Committee have ensured unity within a diversified legal system. China’s military garrison in Hong Kong also guarantees a military base enforcing Gaituguiliu. The rise of China’s economy, especially following the recent construction of the Greater Bay Area region, integrates Hong Kong into the mainland economy.
At the social level, Beijing controls the entry quota of 150 mainland settlers into Hong Kong on a daily basis, with the number of mainland immigrants over the past 20 years having reached one million people — resulting in so-called ‘mainlandisation’.
Many Hong Kongers are disappointed and frustrated in the face of a continued intensification of Gaituguiliu and are defending their way of life and demanding democratic autonomy. In 2014, the 79-day Occupy Central Movement demanded the direct election of the chief executive. The election in September 2016 saw six young people without political experience elected as members of the Legislative Council.
Some of the younger generation that grew up in the period following Hong Kong’s return to China even advocate independence. From the democratic perspective, some Hong Kong youths do not see any hope of democracy under China’s authoritarianism.
The emergence and development of the Hong Kong independence movement is further accelerating the pace of China’s Gaituguiliu policy. Beijing is tightening its control over Hong Kong’s independence movement by elevating the ‘Grand Union’ as a core national interest and national security issue. The central government also intensified its Gaituguiliu process in response. The 2019 revision of the Extradition Law represents the legal process of expediting Gaituguiliu that inspired large-scale local protests.
The 2019 marches opposing amendments to the Extradition Law reflects the determination of the local movement to defend the autonomy of Hong Kong’s legal system and prevent Hong Kong from becoming another mainland city. One special characteristic of the demonstrations is the protest against symbols of China — the China–Hong Kong High Speed railway station and the Liaison Office of the Central People’s Government.
Among the Hong Kong local movement, there is a belief that new immigrants from…
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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