China
China’s vetoes during the Syrian conflict
Author: Rosemary Foot, Oxford
With the internationalised civil war in Syria entering its ninth year, the north-western part of the country is experiencing ‘massive waves of civilian displacement and major loss of civilian life’, induced by Russian-backed Syrian government air and ground strikes against rebel forces.
Such devastation has been a regular feature of this conflict. Yet China, with Russia in the lead, has on eight occasions used its UN Security Council veto at key moments of the war. Indeed, Russia has used its veto on several additional occasions as it seeks to ensure that Syrian President Bashar al-Assad remains in power. But use of the veto is unusual behaviour for Beijing. Prior to the outbreak of fighting in Syria in 2011, Beijing had only used its veto six times since it took its UN seat in 1971. Surprisingly, Beijing has persisted despite attracting very little support from the other 13 members of the Security Council.
The latest veto came in December 2019 when both Beijing and Moscow voted against a resolution designed to allow humanitarian agencies continued access to besieged populations through four previously-agreed border crossings. In Beijing’s view, the agencies needed to coordinate with the Syrian government rather than deliver assistance directly to the populations in need. The resolution, drawn up by non-permanent members of the Security Council, Belgium, Germany and Kuwait, sought to re-authorise the cross-border transfer of humanitarian goods such as medicines and surgical supplies for one year. But just two crossing points were mandated for six months (from January 2020) after extended bargaining by Russia.
Beijing’s recent voting patterns have carried social costs for the Chinese government, particularly in the war’s early stages. In February 2012, Beijing and Moscow both vetoed a Security Council resolution that was expected to pass unanimously after significant revisions had taken into account Chinese and Russian objections. That resolution demanded that all parties in Syria stop all violence and reprisals, while Beijing’s ambassador argued that its passage would undermine prospects for political dialogue with Syrian authorities. China’s veto attracted domestic criticism. It also attracted criticism from then UN secretary-general Ban Ki-moon and various Middle Eastern states, 10 of whom had co-sponsored the resolution.
Why has Beijing decided on this course of action? Keeping Bashar al-Assad in power and ensuring the territorial integrity of Syria remain key Chinese objectives. Following the 2011 UN intervention in Libya — which saw the overthrow and eventual killing of its leader Muammar Gaddafi — China perceived the threat of external intervention designed to force regime change in relation to any government attempting to deal with domestic unrest as having gained in strength.
In the Middle East, such forms of external intervention are also seen as generating conditions enabling the rise of Islamist extremism. China’s fear of ethnic Uyghurs joining jihadist organisations in Syria has grown over the course of the war, with Beijing now justifying its draconian and counter-productive policies in Xinjiang as a response to that fear. A Global Times editorial claims that it was only through the strong leadership of the Chinese Communist Party that Xinjiang managed to ‘avoid the fate of becoming “China’s Syria”, or “China’s Libya”’.
China and Russia have also decided to strike a bargain, and more frequently than in the past, to operate as a ‘P2’ within the UN Security Council by supporting each other on issues of core concern. This is happening at a time when a usually dominant ‘P3’ of Britain, France and the United States find their own relations fraying over a range of matters, including developments connected with Mali, Israel–Palestine and Iran.
Beijing now believes that it can more easily deflect criticism of its more outspoken stance. Such boldness is a result of China’s increased global economic and political influence. But to mitigate criticism of its vetoes from Middle Eastern states, Beijing stepped up its regional engagement by launching its first ‘Arab Policy Paper’ in 2016 and Chinese President Xi Jinping visited several countries in the region.
China has since worked to cement economic ties through the Belt and Road Initiative, infrastructure investment and trade. Through diplomacy, Beijing reminds a generally sympathetic audience of the devastating consequences of western-led military interventions in Iraq and…
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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