China
Can ASEAN centrality weather the US–China storm?
Author: Mark J Valencia, National Institute for South China Sea Studies
The US–China contest for regional domination was front and centre at the September round of ASEAN-hosted talks. In the run up to and at the meetings, China and the United States sharply criticised each other and appealed to Southeast Asian countries for support. In response, the ASEAN Regional Forum Chair bravely reaffirmed ASEAN’s centrality in regional security affairs.
But to some, this was whistling by the graveyard of high aspirations. Without unity, ASEAN is unlikely to achieve centrality — particularly in the face of burgeoning US–China confrontation in the South China Sea.
ASEAN ‘centrality’ in the maintainence of peace and stability between great powers in its region has always been aspirational. Its failures to manage intraregional conflict during the Cold War as well as out-of-control situations in Cambodia, Myanmar and now the South China Sea have demonstrated as much. As for maintaining unity, it is already split. Cambodia supports its economic benefactor China and others are similarly linked economically and leaning that direction. The United States has a military alliance with the Philippines and Thailand. They and Singapore and Malaysia facilitate US military operations including intelligence probes on China. Besides, ASEAN’s consensus-driven and non-confrontational culture limit its agency.
But ASEAN members do not want to choose between the two. They want to ‘remain the masters of their own destiny’. They do not want to become puppets or surrogates and risk great power interference in their domestic affairs, as during the Cold War.
A choice is also difficult because of competing individual national interests. While many may be more ideologically aligned with the United States and prefer its security protection, there are longer term economic and geopolitical reasons to avoid confrontation with China. Most states want to be neutral and benefit from both.
But the situation is dire and the opportunities for ASEAN to influence it are limited. The United States believes that it and China are engaged in ‘a geopolitical competition between free and repressive visions of world order’ in the Indo–Pacific. It has even framed their conflict in existential terms, saying ‘the world cannot be safe until China changes’.
China believes that the United States wants to contain its rightful rise to maintain regional hegemony. For China, the South China Sea is a ‘natural shield for its national security’. It hosts vital sea lanes of communication that China believes the United States could and would disrupt in any conflict. Even more importantly, it provides relative ‘sanctuary’ for its second-strike nuclear submarines. These are China’s insurance against a potential first strike — something the United States, unlike China, has not disavowed.
The ASEAN states recognise the situation may be beyond their control. Malaysia’s Foreign Minister Hishammuddin Hussein is particularly concerned that the China–US struggle could split ASEAN. Indonesia’s Foreign Minister Retno Marsudi urged her fellow ASEAN foreign ministers to remain ‘steadfastly neutral and united’.
But the recent ramped-up pressure is only a prelude of what is to come. So far China and the United States have been playing relatively ‘nice’. But this contest for regional domination may get nastier and more overt — especially in the run-up to the US presidential election. US Secretary of State Mike Pompeo’s statement on 13 June confronting China and its increasing military presence in the South China Sea are indicators of that.
The United States expected that its political, social and economic systems, and — more importantly — its values, will be enough to keep much of Asia in its camp. This is proving to be a false hope. So the United States is falling back on its tried and true advantage — military power and the threat of its use. With the mounting tension between the two big powers, it is not likely that ASEAN unity and centrality regarding the US–China contest to dominate the South China Sea will survive or be effective unless it changes its approach.
The ASEAN foreign ministers responded to Pompeo’s statement by repeating their oft-expressed intent to maintain Southeast Asia as ‘a region of peace, security, neutrality and stability’.But ASEAN can and must do more to prevent an adverse outcome. It could increase the tone, tenor and volume of its ‘unified’ voice urging China and the United States to show…
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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