China
Nepal’s geopolitical dilemma
Author: Gaurab Shumsher Thapa, Nepal Forum of International Relations Studies
Nepal is situated in a geostrategic location between two big and powerful states. Historically, Nepal’s foreign policy has focussed on maintaining a balanced relationship with its neighbours. Modern Nepal’s founder, the late King Prithvi Narayan Shah, once remarked that Nepal was a ‘yam between two boulders’.
Small states are often characterised by limitations in their foreign policy behaviour. In addition to Nepal’s size, it is also landlocked and economically dependent on India.
Nepal’s relationship with India is embedded in deep historical, geographical, cultural, socioeconomic and people-to-people links. India has played a significant role in Nepal’s political changes since 1950. India is Nepal’s biggest trade and development partner.
But in spite of multi-dimensional ties, the relationship is bittersweet. The cause from Nepal’s perspective lies in India’s historic treatment of Nepal as its subordinate. The bilateral relationship between Nepal and India reached its lowest after the 2015 economic blockade. This was a result of India’s hegemonic assertion over Nepal’s new constitution that was promulgated in September 2015. Contrary to India’s expectations, the move fuelled anti-India sentiment in Nepal.
The countries are embroiled in another border dispute. India inaugurated a strategically important link road through to Lipulekh on 8 May to trade with Tibet and for pilgrimage to the sacred Kailash Mansarovar. In response, Nepal published a new political map on 20 May encompassing the areas of Limpiyadhura, Kalapani and Lipulekh. These territories have historically been claimed by Nepal but remain under India’s control after the 1962 Sino-Indian War.
Nepal’s decision to publish a new political map riled the Indian establishment. While Nepal has proposed early talks over the issue, India has urged Nepal to create a positive and constructive environment for dialogue. Both countries should sit for a dialogue to find a lasting solution. But this seems unlikely as Indian Prime Minister Narendra Modi has not shown any interest in commenting on the issue. Moreover, Nepalese Prime Minister KP Sharma Oli’s statement on 28 June that India was hatching plots to oust him has further led to the deterioration of ties.
India has also not accepted the 2016 India–Nepal Eminent Persons Group report which recommended ways to improve India–Nepal relations. The report provided significant recommendations for improving the bilateral relationship, but it has fallen on the deaf ears of the Indian leadership.
One of the biggest factors conditioning the minds of Indian policymakers is the habit of equating China with every political action taken by Nepal. Indian Army Chief General Manoj Naravane controversially suggested that Nepal had raised the border issue at the behest of China. Such an outlook will create misunderstandings and will not help build trust. Until India treats Nepal more like it treats Bhutan, the bilateral relationship will not be as productive as it could be.
Nepal and China’s relationship dates back to the fifth century. The growing influence of China in Nepal has eroded the stranglehold that India once enjoyed. Nepal is a signatory to the Belt and Road Initiative (BRI). Nine projects — mainly related to connectivity infrastructure and hydropower — have been identified for implementation under the BRI. Despite the fanfare surrounding Nepal’s participation in the BRI, progress on financing modalities and long-term viability have not been made for any of the projects.
Nepal’s foreign policy with respect to China sets its bearings according to the ‘One-China’ policy. China’s main concern in Nepal is the involvement of more than 20,000 Tibetan refugees in anti-China activities related to the Free Tibet movement. Nepal’s significance in the strategic calculus of China has increased after the monarchy was abolished and a republic was established in 2008.
Chinese President Xi Jinping visited Nepal in October 2019 becoming the first Chinese president to visit Nepal in 23 years. He declared China would help Nepal become a land-linked state. The joint statement issued at the end of his visit mentioned that both countries had agreed to elevate the bilateral relationship to a ‘strategic partnership of cooperation featuring ever-lasting friendship for development and prosperity’. This could be a significant shift in China–Nepal relations considering both countries are ruled by…
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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