China
Uncertainty for Chinese students in the United States
Author: Xin Wang, Baylor University
Chinese students on US campuses have been caught in the middle of the deteriorating relationship between the United States and China. The anti-China rhetoric of US President Donald Trump and his hawkish advisors has created social distrust, leading to an unfriendly political and social environment for Chinese students in the United States. A recent Pew Research Center survey shows that negative views of China have shot up by nearly 20 per cent in the United States since Trump took office in 2016.
The Trump administration has reduced and limited optional practical training (OPT) for international students and limited H-1B and J-1 visas. The administration also threatened to issue an executive order to prevent international students from staying in the country if they enrolled in online schools for the fall semester of 2020.Trump explicitly called ‘most Chinese students spies’.
Three Republican legislators introduced legislation in May 2020 to ban Chinese students from graduate or postgraduate studies in science, technology, engineering or mathematics. Chinese students accounted for about 13.5 per cent of the 42,227 students earning doctorates in science and engineering at US universities in 2018. This hawkish rhetoric has sent a chilling message to Chinese students.
The arrival of COVID-19 in the spring of 2020 disrupted on-campus classes in the middle of the semester. Chinese students fled home in the middle of the global outbreak as the United States became the global epicentre of the pandemic.
The United States has always been the top destination for Chinese students to study abroad. In the academic year 2019–2020, there were 372,532 Chinese students enrolled at US universities, accounting for 35 per cent of the total number of international students in the United States. US–China student exchange has been an important part of bilateral relations since 1979 when diplomatic ties were normalised between the two countries.
Chinese students have contributed to the US economy. Their tuition fees and living expenses contributed US$15.9 billion in 2019. This is significant given many US universities are facing financial challenges and declining domestic enrolments.
Top-tier US universities also compete for students from China to attract a diverse body of students and bring global talent to their campuses. Many universities hold the view that international students should be regarded as talent and not a threat to national security. Competing for high-end foreign talent is a trend among developed countries.
Germany and the United Kingdom have enacted new policies to favour immigration and the employment of highly skilled foreign talent. The Trump administration has instead put more restrictions on international students and skilled labour in an attempt to appeal to its core base, who preference de-globalisation under the slogan ‘America First’. As a result of Trump’s trade war against China, some US universities have reported asharp decline of Chinese students in 2020. Entry visas issued to Chinese students have dropped by almost 70 per cent in 2020 due to the combination of health, economic and political challenges presented by 2020.
Chinese students studying in the United States view the pursuit of higher education as an opportunity to broaden their horizons, build their credentials, receive a well-rounded education and understand Western culture and society. Studying and living overseas, especially in the United States, demonstrates their openness, eagerness and readiness to learn and immerse in the global community.
The Trump administration’s focus on deglobalising and decoupling means international students, especially Chinese students, are becoming victims of conservative US policies. Chinese students feel they are being unfairly scrutinised and politicised because of their Chinese nationality and ethnicity. The current political environment, the public health crisis and growing xenophobia have brought uncertainty to the future of Chinese students studying in the United States.
Some university presidents and scholars of China Studies have been outspoken about the Trump administration’s policies, including the presidents of MIT and Columbia University. In a recent open letter to the incoming Biden administration, Columbia University President Lee Bollinger criticised Trump’s policies on international students as damaging US higher education, the economy and society. The open letter requests President-elect Joe Biden to end Trump’s policies towards…
China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
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
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 Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
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