China
Establishing humanitarian lanes during COVID-19
Authors: Alistair DB Cook and Christopher Chen, RSIS
COVID-19 is severely impacting the humanitarian system. It has forced countries to focus on containing the pandemic with national lockdown measures — hindering humanitarian action and denying aid to many affected communities in the Asia Pacific. But countries in the region have begun negotiations to normalise international travel, with Australia and New Zealand being the first to initiate bilateral discussions over the establishment of a ‘Trans-Tasman bubble’ and a ‘humanitarian corridor’ to the Pacific during the pandemic.
In Southeast Asia, Singapore and China have opened up a ‘green lane’ to restore connectivity and essential business travel. Singapore is also in discussions with Malaysia, Australia, New Zealand and South Korea. These developments bode well for the countries involved, but they also exclude the countries most affected by COVID-19 and at risk of disasters. Travel restrictions will continue to delay the provision of much-needed humanitarian supplies and expertise to the region’s most vulnerable countries.
The countries involved in discussions to restart international travel bilaterally are important humanitarian logistical hubs, as well as significant funders and providers of humanitarian action.
Australia and New Zealand are particularly important humanitarian contributors in the Asia Pacific. Brisbane is home to the largest pre-positioned stockpile of humanitarian relief supplies in the region — capable of responding to two simultaneous disasters. Warehouses in Sydney and Papua New Guinea also contribute to Australia’s capacity to support 11,500 households or 57,500 individuals. Malaysia is home to the United Nations Humanitarian Relief Depot in Subang and houses UN, ASEAN and Australian humanitarian supplies. Singapore’s Changi and South Korea’s Incheon airports are also important hubs to countries across the Asia Pacific.
The expeditious facilitation of humanitarian supplies and personnel to areas in the region that are affected by natural disasters, conflict prone and gripped by the pandemic requires urgent consideration.
Humanitarian crises create a temporary spike in the demand for certain relief items. Such demand has already been exacerbated by the disruption of supply chains and travel routes resulting in inadequate relief to affected populations. The establishment of ‘humanitarian lanes’ to facilitate the quick transfer and distribution of humanitarian relief must be prioritised.
The ‘Pacific Pathway’ agreed by Pacific Island countries in the Pacific Islands Forum (PIF) will expedite cooperation between member states on COVID-19 relief. It aims to streamline the customs clearance of medical supplies and facilitate diplomatic clearance for chartered flights and commercial shipping within the region. The Philippines uses a ‘One-Stop Shop’ model, bringing together multiple agencies to more effectively facilitate customs and excise for humanitarian relief items supported by the ASEAN Coordinating Centre for Humanitarian Assistance on disaster management. It has empowered local governments to take a leading role in disaster management.
A successful humanitarian lane should go further and link the international humanitarian community with all affected communities. It should provide a platform to engage local alternative suppliers and access partners in addition to facilitating the entry of goods and personnel. The pandemic has highlighted the importance of building local capacity to respond to disasters, particularly as travel restrictions hamper the movement of international humanitarian workers. Sharing disaster management experiences between affected countries in ASEAN and the PIF is important for finding adaptive solutions and building new networks.
The urgency to build local capacity and resilience is even more pressing in the Asia Pacific as the monsoon season starts. Communities exposed to cyclones and typhoons will be doubly affected. The pandemic has already created greater inefficiencies in humanitarian disaster response. In the Philippines, social distancing measures kept evacuation centres after Cyclone Vongfong at 50 per cent occupancy and slowed the evacuation of some 180,000 people.
In Vanuatu, Cyclone Harold caused catastrophic damage when it struck in April 2020. Measures to contain the spread of COVID-19 severely hampered critical relief efforts due to restrictions on incoming cargo and the banning of foreign aid workers. Humanitarian relief items were initially quarantined…
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
Is journalist Vicky Xu preparing to return to China?
Chinese social media influencers have recently claimed that prominent Chinese-born Australian journalist Vicky Xu had posted a message saying she planned to return to China.
There is no evidence for this. The source did not provide evidence to support the claim, and Xu herself later confirmed to AFCL that she has no such plans.
Currently working as an analyst at the Australian Strategic Policy Institute, or ASPI, Xu has previously written for both the Australian Broadcasting Corporation, or ABC, and The New York Times.
A Chinese language netizen on X initially claimed on March 31 that the changing geopolitical relations between Sydney and Beijing had caused Xu to become an expendable asset and that she had posted a message expressing a strong desire to return to China. An illegible, blurred photo of the supposed message accompanied the post.
This claim was retweeted by a widely followed influencer on the popular Chinese social media site Weibo one day later, who additionally commented that Xu was a “traitor” who had been abandoned by Australian media.
Following the publication of an ASPI article in 2021 which exposed forced labor conditions in Xinjiang co-authored by Xu, the journalist was labeled “morally bankrupt” and “anti-China” by the Chinese state owned media outlet Global Times and subjected to an influx of threatening messages and digital abuse, eventually forcing her to temporarily close several of her social media accounts.
AFCL found that neither Xu’s active X nor LinkedIn account has any mention of her supposed return to China, and received the following response from Xu herself about the rumor:
“I can confirm that I don’t have plans to go back to China. I think if I do go back I’ll most definitely be detained or imprisoned – so the only career I’ll be having is probably going to be prison labor or something like that, which wouldn’t be ideal.”
Neither a keyword search nor reverse image search on the photo attached to the original X post turned up any text from Xu supporting the netizens’ claims.
Translated by Shen Ke. Edited by Shen Ke and Malcolm Foster.
Asia Fact Check Lab (AFCL) was established to counter disinformation in today’s complex media environment. We publish fact-checks, media-watches and in-depth reports that aim to sharpen and deepen our readers’ understanding of current affairs and public issues. If you like our content, you can also follow us on Facebook, Instagram and X.
Read the rest of this article here >>> Is journalist Vicky Xu preparing to return to China?
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- Is journalist Vicky Xu preparing to return to China?
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