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China

Australia as an Asian power leaves no room for economic fantasy

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An aerial view of a vessel containing cargo from Australia arrived at the Port of Ningbo-Zhoushan in Ningbo city, east China's Zhejiang province, 29 October 2019 (Photo: Reuters/ Yao Feng).

Authors: Peter Drysdale and Shiro Armstrong, ANU

For Australia to join the great decoupling from China that some Americans and Australian security officials demand would bring devastating costs to Australia and to economic and political security across Northeast Asia. It fails to appreciate that exorcising our trade with China would also decouple trade from Japan, South Korea and Southeast Asia.

Australia and the world are grappling with the worst economic crisis since the 1930s. The economic, political and foreign policy choices that are made now will determine security, prosperity and stability for decades to come.

As an integral part of the shift of global economic gravity to Asia, Australia supplies two-thirds of all Northeast Asia’s externally procured iron ore, a large proportion of its other raw materials imports and over a quarter of all Japan’s energy needs. For its part, Asia constitutes almost two-thirds of Australia’s trade, China more than half of that.

The Asian economic success story is no consequence of imperial conquest or political suzerainty, communist or otherwise. It derives from Asian countries’ commitment to international trade rules and arrangements for regional economic cooperation that underpin the confidence in Asian integration into the global economy. That’s where Australian and regional prosperity and security has been found over the past 70 years. And that’s where its future is embedded.

Both Australia and China show signs of retreat from the commitment to openness that delivered this prosperity, including avoiding the worst of the global financial crisis and resilience through the COVID-19 crisis. China intervenes in barley and beef markets and now threatens Australian wine imports. Australia flirts with diversifying trade away from China and tightens regulations against foreign investment — largely aimed at Chinese investors — impeding a vital source of capital, technology and links to growing markets.

Australia’s huge bilateral economic relationship with China cannot be separated from China’s integration with other key partners in Asia. The China relationship is deeply interdependent with those relationships too. The manufactured imports that Australia secures from China include many Japanese, Korean and, yes, US and European brands. At least a fifth of the value in all Chinese exports is added in other countries, mostly Asia. Australian resource exports to Asia are the foundation of regional supply chains. Japan’s biggest corporations are major exporters of Australian produce to China, not just to Japan.

China is thus central to Australia’s future in Asia. Retreating from economic engagement with China into a world of Anglospheric stagnation and inviting deep regional insecurity is unwise. The United States may be willing to pay the price of decoupling from China, and expect others to, but it has more swivel room. National security without economic security would severely weaken Australia’s defences and diminish its diplomatic influence.

To avoid that requires a cool and determined Australian strategy. But those who are now defining China as an ‘enemy’ have not yet considered, let alone defined, such a strategy.

Australia now has to stand its ground with both the United States and China. That means engaging intelligently with China, eschewing both appeasement and needless confrontation. It also means continued distancing from the more extreme of US policies. Second, it will require the forging of a cooperative multilateral effort within the region that includes China.

That will only be possible if Australia finds its role as an Asian power.

Beijing needs to see Australia as a close ally and partner of the United States and Japan, as well as South Korea, ASEAN and India, but also a reliable and secure supplier of raw materials, agricultural products and global services such as education. Australia has to play a regional lead in genuine support of the WTO and plurilateral arrangements that strengthen a rules-based global economic order.

Alas, domestic political objectives in both countries are contributing to ramping up nationalism and defining the other as an enemy. These tensions are two-way. Beijing, isolated already by misdoings mostly of its own, will be a less reliable partner if these trends continue. Australia can reaffirm its guarantees of supply and markets as it did with Japan in an earlier time, providing a bedrock of secure trade in an increasingly tense environment.

There is a huge difference between coalitions for openness that…

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Trends and Future Prospects of Bilateral Direct Investment between China and Germany

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China and Germany experienced a decline in direct investment in 2023 due to global economic uncertainty and policy changes. Despite this, China remains an attractive destination for German FDI. Key industries like automotive and advanced manufacturing continue to draw investors, although FDI outflows from Germany to China decreased by 30% in the first three quarters of 2023. Despite this, the actual use of foreign capital from Germany to China increased by 21% in the same period according to MOFCOM. The Deutsche Bundesbank’s FDI data and MOFCOM’s actual use of foreign capital provide different perspectives on the investment trends between the two countries.


Direct investment between China and Germany declined in 2023, due to a range of factors from global economic uncertainty to policy changes. However, China remains an important destination for German foreign direct investment (FDI), and key industries in both countries continue to excite investors. We look at the latest direct investment data between Germany and China to analyze the latest trends and discuss key factors that could shape future business and commercial ties.

Direct investment between China and Germany has undergone profound changes over the past decade. An increasingly complex investment environment for companies in both countries has led to falling two-way FDI figures in the first three quarters of 2023, in stark contrast to positive trends seen in 2022.

At the same time, industries with high growth potential, such as automotive and advanced manufacturing, continue to attract German companies to China, and high levels of reinvested earnings suggest established firms are doubling down on their commitments in the Chinese market. In Germany, the potential for electric vehicle (EV) sales is buoying otherwise low investment among Chinese companies.

According to data from Deutsche Bundesbank, Germany’s central bank, total FDI outflows from Germany to China fell in the first three quarters of 2023, declining by 30 percent to a total of EUR 7.98 billion.

This is a marked reversal of trends from 2022, when FDI flows from Germany to China reached a record EUR 11.4 billion, up 14.7 percent year-on-year.

However, according to China’s Ministry of Commerce (MOFCOM), the actual use of foreign capital from Germany to China increased by 21 percent year-on-year in the first eight months of 2023. The Deutsche Bundesbank’s FDI data, which follows standards set by the IMF, the OECD, and the European Central Bank (ECB), includes a broader scope of transactions within its direct investment data, including, broadly, direct investment positions, direct investment income flows, and direct investment financial flows.

Meanwhile, the actual use of foreign capital recorded by MOFCOM includes contracted foreign capital that has been concluded, including the registered and working capital paid by foreign investors, as well as the transaction consideration paid for the transferred equity of domestic investors.

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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Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident

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China’s coast guard on Saturday fired a water cannon at a Philippine supply boat in disputed waters in the South China Sea, causing “significant damages to the vessel” and injuring its crew, the Philippine coast guard said.

Manila was attempting to resupply troops stationed on a ship at the Second Thomas Shoal, known locally as Ayungin Shoal, when the Chinese coast guard and maritime militia “harassed, blocked, deployed water cannons, and executed dangerous maneuvers against the routine RoRe (rotation and resupply) mission,” said the Philippine National Task Force for the West Philippine Sea.

The West Philippine Sea is the part of the South China Sea that Manila claims as its jurisdiction.

The Chinese coast guard also set up “a floating barrier” to block access to shoal where Manila ran aground an old warship, BRP Sierra Madre, to serve as a military outpost.

The Philippine task force condemned China’s “unprovoked aggression, coercion, and dangerous maneuvers.”

Philippines’ RoRe missions have been regularly blocked by China’s coast guard, but this is the first time a barrier was set up near the shoal. 

The Philippine coast guard nevertheless claimed that the mission on Saturday was accomplished.

Potential consequences

The Second Thomas Shoal lies within the country’s exclusive economic zone where Manila holds sovereign rights. 

China, however, claims historic rights over most of the South China Sea, including the Spratly archipelago, which the shoal forms a part of.

A Chinese foreign ministry’s spokesperson on Saturday said the Philippine supply vessel “intruded” into the waters near the shoal, called Ren’ai Jiao in Chinese, “without permission from the Chinese government.”

“China coast guard took necessary measures at sea in accordance with law to safeguard China’s rights, firmly obstructed the Philippines’ vessels, and foiled the Philippines’ attempt,” the ministry said.

“If the Philippines insists on going its own way, China will continue to adopt resolute measures,” the spokesperson said, warning that Manila “should be prepared to bear all potential consequences.”

Chinese Maritime Militia vessels near the Second Thomas Shoal in the South China Sea, March 5, 2024. (Adrian Portugal/Reuters)

U.S. Ambassador to the Philippines MaryKay Carlson wrote on social media platform X that her country “stands with the Philippines” against China’s maneuvers.

Beijing’s “interference with the Philippines’ freedom of navigation violates international law and threatens a free and open Indo-Pacific,” she wrote.

Australian Ambassador to the Philippines Hae Kyong Yu also said that Canberra shares the Philippines’ “serious concerns about dangerous conduct by China’s vessels adjacent to Second Thomas Shoal.” 

“This is part of a pattern of deeply concerning behavior,” Yu wrote on X.

Edited by Jim Snyder.

Read the rest of this article here >>> Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident

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Foreigners in China: 2024 Living and Working Guidelines

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China’s Ministry of Commerce released updated guidelines for foreign businesspersons living and working in China in 2024. The guidelines cover accommodations, visas, work permits, and emergency protocols. It also outlines responsibilities regarding social security premiums and individual income tax obligations. prompt registration for temporary accommodation is required upon arrival.


The updated 2024 guidelines for foreign businesspersons living and working in China, released by the country’s Ministry of Commerce, outline essential procedures and considerations covering accommodations, visas, work permits, and emergency protocols.

On January 25, 2024, China’s Ministry of Commerce (MOFCOM) released the latest version of the Guidelines for Foreign Businessmen to Live and Work in China (hereinafter referred to as the “guidelines”).

The document is divided into four main sections, labeled as:

Furthermore, the guidelines elucidate the regulatory framework governing foreign businessperson’s responsibilities concerning social security premiums and individual income tax obligations.

This article provides a comprehensive overview of the guidelines, delving into their significance and implications for foreign businesspersons in China.

Upon arrival in China, prompt registration for temporary accommodation is required.

If staying in a hotel, registration can be facilitated by the hotel staff upon presentation of a valid passport or international travel documents.

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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