China
COVID-19 is a human security crisis
Author: Akiko Fukushima, Tokyo Foundation for Policy Research
COVID-19 cases are growing at an accelerated pace, infecting 2 million people around the world. With this staggering number of victims, the pandemic is now being compared to a war. We do not yet have an effective vaccine or proven treatment, and the development of a vaccine may take a year or longer. The world is currently left with non-pharmaceutical interventions to slow and mitigate the transmission of the virus, including bans on public events, school and university closures, and even local and national lockdowns.
The COVID-19 pandemic is not only a health crisis, it is a human security crisis — depriving our freedom from fear, freedom from want and freedom to live with dignity. The pandemic demands a human security approach of comprehensive, across-the-board human protection and empowerment.
When the concept of human security was introduced in policy discussions in the 1990s, the approach was criticised for broadening security threats beyond war. In 2020, we are learning that an epidemic, which has killed close to 120,000 around the world as of 14 April, undermines our security and safety.
In responding, a medical solution alone is not enough. Measures should also address knock-on effects in health, economics, politics, society and culture.
On the economic front, stock markets have plummeted as the global outbreak intensifies. The pandemic has caused an economic contraction more serious than the global financial crisis in 2008. The global value chain has been hard hit. The economic effect is not elsewhere but everywhere. The closures and lockdowns have affected both goods and services industries. The entire world population is suffering from fear and want.
The pandemic also impacts politics, both domestic and international. Some seek to gain from the pandemic, leading to further competition and confrontation among nation states. For example, former US diplomat Kurt M Campbell and Brookings program lead Rush Doshi have remarked that China — after failing to take immediate steps during the initial outbreak — is now claiming success in battling the virus and is spearheading the provision of medical assistance to other nations, including Italy, Serbia and Iran. The COVID-19 pandemic also risks affecting traditional security by sending the wrong signal to those keen to develop biological weapons.
The virus does not respect national borders in its transmission. No nation can get out of the pandemic alone. If nation states tilt for competition and confrontation, we will certainly lose this war. The only option is to cooperate to shape a globally and regionally coordinated response.
Although COVID-19 initially hit China hard, its neighbours in the Asia Pacific have so far suppressed its transmission relative to Europe and the United States where cases are surging.
One reason behind this is that the Asia Pacific region has learned lessons from the 2002–2004 SARS outbreak. As a result, countries in the Asia Pacific introduced travel controls, border closures and lockdowns sooner, although some have done better than others. This was backed by enhanced health and medical coverage in the region. ASEAN included infectious diseases as a shared security challenge in creating its ASEAN Community and has swiftly mobilised the ASEAN Health Sector.
Accurate information sharing is key to successful containment and to prevent misinformation. In the immediate future, the Asia Pacific region needs to mobilise medical professionals to assist countries in need. If so required, the military should be mobilised to build emergency hospitals and to utilise military medical teams trained in handling emergencies. Military ships could also be converted into hospitals.
The most important immediate priority is to develop a vaccine, diagnostic tools and treatments for COVID-19. In order to avoid duplicated efforts, we will need to share best practices and clinical test results to develop an effective medical intervention to halt the pandemic.
In shaping a regional response, the Asia Pacific should utilise its existing regional architecture, including the East Asia Summit and ASEAN Defence Ministers’ Meeting Plus. Regular teleconferencing by leaders can help enable the identification of challenges, the sharing of best practices and the creation of new approaches to address the pandemic and its knock-on effects. Regional cooperation will ease the fear and want of the entire regional population and allow us to live with more dignity.
Akiko Fukushima is a Senior Fellow…
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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