China
Chinese–Russian ballistic missile cooperation signals deepening trust
Author: Vasily Kashin, Higher School of Economics
During the annual meeting of the Valdai Discussion Club in October 2019, Russian President Vladimir Putin announced that Russia and China are cooperating on developing a ballistic missile early warning system (BMEWS). Putin underscored that such cooperation demonstrates the high level of trust between the two countries.
Beijing’s first efforts to develop and build a BMEWS and anti-missile defence tracking radars were undertaken as part of the abortive Project 640, an attempt to build a Chinese strategic missile defence system that ran in the 1960s–80s. Project 640 resulted in the construction of two functioning experimental radars: a type 7010 BMEWS radar and a type 110 tracking radar. Both radars were used for some time by the Chinese military.
China renewed its BMEWS development in the 2000s, using some of the experience gained from Project 640. Construction of long-range BMEWS radars started in the 2010s. Experiments with space-based ballistic missile early warning components were also renewed with the launch of test satellites.
The Chinese system does not copy any existing Russian system. But the Chinese have approached Russia for expertise in overcoming bottlenecks.
Russia–China military technical cooperation has always been rather secretive, and the level of secrecy has increased as both countries engage in more direct confrontation with the United States. So far the Russian media has identified just one contract related to the bilateral BMEWS cooperation with China. This contract is for the development of specialised BMEWS software, worth approximately US$60 million, was awarded to a leading Russian air and missile defence systems corporation.
This is likely not the only defence agreement between the two countries. BMEWS cooperation likely consists of numerous small contracts that address various problems in the Chinese system.
These systems are among the most sophisticated and sensitive areas of defence technology. The United States and Russia are the only countries which have been able to develop, build and maintain such systems. Early systems, both land and space-based, were unreliable, leading to several potentially catastrophic incidents during the Cold War after erroneous warnings of enemy attacks.
Technological assistance from Russia will help the Chinese to overcome several issues with their systems. This will decrease the probability of system malfunction, and in turn have a positive impact on global security.
Russian companies’ involvement in the development of these Chinese ballistic missile early warning systems gives them access to a great deal of data about system capabilities. This demonstrates a high level of trust and puts forward the question of possible integration of Russian and Chinese systems.
In the event of system integration, stations located in the North and the West of Russia could provide China with warning data. In turn, China could provide Russia with data collected at their Eastern and Southern stations. This would enable the two countries to create their own global missile defence network. But neither Chinese nor Russian governments have stated their intentions to do this yet.
Missile defence cooperation is in the interests of both countries’ militaries. Russia and China have conducted a number of joint computer-simulated missile defence exercises in recent years. But these only simulated the work of simpler theatre missile defence systems such as the S-400 and HQ-9 systems.
The introduction of the Countering America’s Adversaries Through Sanctions Act (CAATSA) — the US law that seeks to punish those who procure arms and defence technology from Russia — led to even greater secrecy surrounding Russia’s bilateral arms deals in recent years. Official statements have disclosed at least three new major contracts for the export of Russian arms and technology to China in 2019.
The political meaning of Putin’s statement on BMEWS cooperation extends far beyond the technical and military significance of these cooperation projects. It demonstrated to the world that the two countries are on the brink of a formal military alliance, which could be triggered if US pressure goes too far.
At the next Valdai meeting in October 2020, Putin suggested the possibility of a military alliance with China. The Chinese Ministry of Foreign Affairs’ reaction to this statement was positive but the Chinese side refrained from using the word ‘alliance’. Putin’s 2019 statement on BMEWS cooperation, however, was likely made…
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.
China
Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
The Lingang New Area in Shanghai has launched China’s first Cross-Border Data Service Center to facilitate data export for companies in Shanghai. The center will help with applications, data catalogs, and management, aiming to provide legal and safe cross-border data transfer mechanisms.
The Lingang New Area in Shanghai’s Pilot Free Trade Zone has launched a new cross-border data service center to provide administrative and consulting services to companies in Shanghai that need to export data out of China. The service center will help facilitate data export by accepting applications from companies for data export projects and is tasked with formulating and implementing data catalogs to facilitate data export in the area. The Shanghai cross-border data service center will provide services to companies across the whole city.
The Lingang New Area in the Shanghai Pilot Free Trade Zone has launched China’s first Cross-Border Data Service Center (the “service center”). The service center, which is jointly operated by the Cybersecurity Administration of China (CAC) and the local government, aims to further facilitate legal, safe, and convenient cross-border data transfer (CBDT) mechanisms for companies.
The service center will not only serve companies in the Lingang New Area but is also open to companies across Shanghai, and will act as an administrative service center specializing in CBDT.
In January 2024, the local government showcased a set of trial measures for the “classified and hierarchical” management of CBDT in the Lingang New Area. The measures, which have not yet been released to the public, seek to facilitate CBDT from the area by dividing data for cross-border transfer into three different risk categories: core, important, and general data.
The local government also pledged to release two data catalogs: a “general data” catalog, which will include types of data that can be transferred freely out of the Lingang New Area, and an “important data” catalog, which will be subject to restrictions. According to Zong Liang, an evaluation expert at the service center, the first draft of the general data catalog has been completed and is being submitted to the relevant superior departments for review.
In March 2024, the CAC released the final version of a set of regulations significantly facilitating CBDT for companies in the country. The new regulations increase the limits on the volume of PI that a company can handle before it is required to undergo additional compliance procedures, provide exemptions from the compliance procedures, and clarify the handling of important data.
Also in March, China released a new set of technical standards stipulating the rules for classifying three different types of data – core, important, and general data. Importantly, the standards provide guidelines for regulators and companies to identify what is considered “important” data. This means they will act as a reference for companies and regulators when assessing the types of data that can be exported, including FTZs such as the Lingang New Area.
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
A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
The application procedures for business visas to China have been simplified, with most foreigners now able to apply for an M/F visa using only an invitation letter from a Chinese company. Some countries are eligible for visa-free entry. However, a Verification Letter of Invitation may still be needed in certain cases. Consult the local Chinese embassy for confirmation.
In light of recent developments, the application procedures for business visas to China have undergone substantial simplification. Most foreigners can now apply for an M/F visa using only the invitation letter issued by a Chinese company. Additionally, citizens of certain countries are eligible to enter China without a visa and stay for up to 144 hours or even 15 days.
However, it’s important to note that some applicants may still need to apply for a “Verification Letter of Invitation (邀请核实单)” when applying for an M/F visa to China. In this article, we will introduce what a Verification Letter of Invitation is, who needs to apply for it, and the potential risks.
It’s important to note that in most cases, the invitation letter provided by the inviting unit (whether a public entity or a company) is sufficient for M/F visa applications. The Verification Letter for Invitation is only required when the Chinese embassies or consulates in certain countries specifically ask for the document.
Meanwhile, it is also essential to note that obtaining a Verification Letter for Invitation does not guarantee visa approval. The final decision on granting a visa rests with the Chinese embassy abroad, based on the specific circumstances of the applicant.
Based on current information, foreign applicants in Sri Lanka and most Middle East countries – such as Turkey, Iran, Afghanistan, Syria, Pakistan, and so on – need to submit a Verification Letter for Invitation when they apply for a visa to China.
That said, a Verification Letter for Invitation might not be required in a few Middle East countries, such as Saudi Arabia. Therefore, we suggest that foreign applicants consult with their the local Chinese embassy or consulate to confirm in advance.
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.
- New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
- Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
- A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
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