China
Is China angling for a Saudi–Iranian detente?
Author: Guy Burton, Brussels School of Governance
China’s Foreign Minister Wang Yi embarked on a six-country tour of the Middle East at the end of March 2021. On the eve of his departure, Wang announced China’s five-point plan for the region, which included mutual respect, equity and justice, non-proliferation, collective security and development cooperation.
The principles set out in the five-point plan are uncontentious — and it is also not the first time that China has issued a plan for the Middle East. In 2013, Chinese President Xi Jinping launched a four-point plan around the Israel–Palestine conflict. Four years later he re-launched it, this time referencing China’s Belt and Road Initiative — with Israel and Palestine as important partners.
What makes the recent five-point plan unique is its wider scope to include other conflicts in Syria, Libya and Yemen, as well as the rivalries in the Gulf. In a departure from previous proposals, Wang also set out some concrete suggestions for how tensions in the Gulf might be managed. They included China hosting a ‘multilateral dialogue conference’ to help create a trust-building mechanism which — as a first step — could ensure the ‘safety of oil facilities and shipping lanes’.
In the end, the five-point might not make much of a splash. There was no statement on when the conference might happen or what role Beijing would have in the design or guarantee of the trust-based mechanism. The plan was also overshadowed by the media coverage given to an alleged 25-year cooperation deal signed between China and Iran — which some observers have argued is overstated.
Yet even if the five-point plan seems like it may fizzle out, its spirit kept with regional developments in the past month. Saudi and Iranian officials met at a face-to-face meeting in Baghdad for the first time since diplomatic relations broke off five years ago. Initially, the Saudis denied the meeting took place. But at the end of April, Crown Prince Mohammed bin Salman (MBS) implicitly backed the move. In a television interview, he abandoned his previous confrontational language towards Iran in favour of a more conciliatory tone, expressing his hope for ‘good’ relations.
In explaining the shift, analysts have focused on changes taking place in the United States, in particular the presidency of Joe Biden. Not only was Trump more sympathetic towards MBS than Biden, but he also pursued a ‘maximum pressure’ strategy against Iran when he pulled the United States out of the Joint Comprehensive Plan of Action (JCPOA) and reimposed sanctions. In contrast, Biden is perceived as cooler towards MBS. His administration is pushing back on Saudi Arabia’s military campaign in Yemen and is also involved in indirect talks with Iran over the future of the JCPOA.
But focusing on US-centric explanations is too limited given the increasing multipolarity of the Middle East. A quiet Chinese word may have also made a difference. For instance, official statements made clear that Wang was likely to have some frank discussions around ‘peace in the Middle East’ during his trip to the region.
China has sufficient base and motivations to have such conversations.
First, Saudi Arabia and Iran are among the most important countries for Chinese commercial activity in the Middle East. Besides the oil trade, Saudi Arabia and Iran are the largest and third largest recipients of Chinese capital respectively in the region. So, instability in the region, including from the Iran–Saudi Arabia rivalry, would adversely affect China’s business interests.
Second, China has the means to engage with Riyadh and Tehran on a substantive basis. China’s stated commitment to non-interference gives it the air of an honest broker. The two countries have also been elevated to the same level of importance — in 2016 China signed comprehensive strategic partnerships with both Iran and Saudi Arabia. This is the highest form of diplomatic recognition and cooperation it can bestow short of a formal alliance. Such partnerships seek to expand ties beyond the economic sphere to include political interaction and exchange at different levels.
A Chinese word would not be ignored. For the Saudis, Biden’s approach is narrowing the gap between US and Chinese positions in the Gulf. For the Iran, its geopolitics has become heavily weighted towards China and Beijing has shown that it is prepared to leverage this, for example by previously persuading Iran to accept the JCPOA.
But while China has some advantages over the United…
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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