China
A Biden presidency’s impact on the Asia Pacific
Author: Robert A Manning, Atlantic Council
It may be weeks before the US presidential election is fully settled, though the trajectory suggests a divided government of President Joe Biden and a Republican Senate. Regardless, expect more continuity than change in US policy toward the Asia Pacific, even with a marked shift in tone.
A Biden presidency would not erase the past four years, nor the deepening embedded populism in the United States, but would go a long way towards stopping the bleeding. Biden’s desire to heal the dysfunction will be constrained by a lack of control over the Senate.
A Donald Trump victory would likely have led to more tension within, if not fracturing of, US alliances. The Washington rumour mill suggests Trump contemplating withdrawing from NATO and reducing troops in both South Korea and Japan. Meanwhile, Biden, with a veteran set of Asia hands in his administration, would embrace and seek to strengthen alliances, including with Japan, South Korea and Australia. That bodes well for deterrence.
Biden will promote US values, showcasing an alliance of democracies at a global summit of democracies in 2021 as a fulcrum to counter authoritarian trends and reshape a fraying world order. But some Asian countries may view it as pressure to choose against China.
Regarding US policy toward China, there is a bipartisan consensus that China is a ‘strategic competitor’. That would not change under Biden. But there are important differences about exactly what that means. The Trump administration has not defined the terms, bounds and limits of competition. Instead it has demonised China, pursued economic decoupling and crusaded against the Chinese communist party in speeches by top US officials. Secretary of State Mike Pompeo argued ‘if we don’t change the Communist party, it will change us’. One could be forgiven for concluding, as Beijing apparently has, that the intent is regime change.
In contrast, Biden would likely seek to halt the downward spiral of US–China relations, hoping to craft a framework for competitive coexistence. Two top Biden advisors, Kurt Campbell and Jake Sullivan, wrote in Foreign Affairs that ‘the goal should be to establish favourable terms of coexistence with Beijing in four key competitive domains — military, economic, political and global governance’. This will require sustained and agile diplomacy, domestic support and a curbing of China’s assertive behaviour. Biden would almost certainly move away from the solely United States versus China bilateral approach and forge multilateral coalitions on shared concerns. Beijing seeks stability and is likely to offer a window to test Biden’s wherewithal to reset the US–China relationship.
On US–China economic and technological issues, expect a more prudent approach under Biden. Democrats are no less leery of free trade than Republicans, but a Biden administration would likely work closely with the European Union, Japan and Australia to press China on redressing shared trade grievances in the World Trade Organization, which Biden will work to reform. Such grievances include state subsidies, forced technology transfer, intellectual property rights, and rules and standards for emerging technology like artificial intelligence and 5G.
Expect a more measured and selective economic de-integration rather than half-baked decoupling. On technology, the United States has quietly forged a bipartisan move toward an industrial policy to better compete on semiconductors, 5G and other emerging technology that Biden is comfortable with. Beijing has selectively opened markets, principally finance and automotive vehicles, and Biden may seek to renew talks on a bilateral investment treaty.
A less volatile US–China relationship would impact the wider Indo-Pacific strategy. While the US military footprint expanded under Trump, effectively realising the pivot promised by Obama, it is unlikely to be diminished under Biden. But a strengthening of US alliances and partnerships in the region and expanding the informal network of security cooperation, including the Quad, may be likely.
Biden is likely to be less one-dimensional with regard to an Indo-Pacific strategy, putting more emphasis on regional diplomacy to address security issues and economic ties. Without robust economic underpinnings, an Indo-Pacific strategy may be hollow and unsustainable. With the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) set to expand under Tokyo’s leadership, and the Regional Comprehensive Economic…
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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