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China

Australia’s war drum to nowhere on Taiwan

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Australian army officer offers directions to China's President Xi as he inspects an honour guard at Government House, Canberra, Australia, 17 November 2014 (Photo: Reuters/David Gray)

Author: Thomas Wilkins, University of Sydney

Recent comments made by Australian officials about Taiwan over the past few weeks are less statecraft and more reminiscent of a fictional account of the leadup to a Third World War.

During an ANZAC Day speech, the Secretary of the Australian Department of Home Affairs Mike Pezzullo warned that ‘in a world of perpetual tension and dread, the drums of war beat’. Australian Defence Minister Peter Dutton similarly mused that conflict in the Taiwan Strait should not be discounted, stressing the preparedness of the Australian Defence Force in the event of a potential regional conflict. Meanwhile, Assistant Defence Minister Andrew Hastie reminded military personnel that their ‘core business’ was the ‘application of lethal violence’.

These most recent comments come against a backdrop of Australian government statements and documents that consistently identify the Indo-Pacific as an arena of ‘greater strategic competition’ as the US–China rivalry gathers apace. Yet those very same comments predictably triggered another round of so-called ‘wolf-warrior diplomacy’ from Chinese officials and commentators.

Chinese Major General Jin Yinan decried Australia as ‘white supremacist’ for lending moral support to Taiwan. The Global Times, a mouthpiece of the Chinese Communist Party, claimed Australia was ‘sick’ and accused Canberra of ‘trying to muddy the waters on the Taiwan question’. It also warned that ‘if Australia uses force against China, China will definitely deal a heavy blow to Australia’. At a time when Washington has sought to engage Taiwan more closely, this was a clear warning to Canberra not to follow suit.

Australian politicians and strategic analysts need to prudently reflect on how best to manage the issue while considering the broader strategic context of a deteriorating regional security environment and fractious bilateral relations with Beijing. Yet Australian Prime Minister Scott Morrison took things further after he appeared to confuse the one-China Policy with the ‘one country, two systems’ model in Hong Kong — a position he obstinately refused to correct.

Not only did Morrison’s comments emphatically contradict Australia’s official policy, but they also offended both sides of the political divide in Taiwan. After witnessing Hong Kong’s grim experience under the ‘one country, two systems’ model with the Chinese-backed national security law and subsequent crackdown on civil-society, Taiwan has come to categorically reject this formula with a new vigour. Morrison muddied the waters by sending out the wrong message on a highly sensitive issue for the region.

Observers should be alarmed at Prime Minister Morrison’s seeming incomprehension, especially given the stakes for regional stability and security. There is a consensus that any violent resolution of the Taiwan issue would be calamitous for the region, with Australian Chief of Defence Staff Angus Campbell declaring that the ‘future of China and Taiwan needs to be a future that is resolved peacefully’ and warning that any war would be ‘disastrous’ for all involved. This includes Australia, since any US military involvement would likely bring pressure upon Canberra to activate the ANZUS alliance treaty, and potentially drag in a range of US allies. The loss of life and economic costs would be catastrophic.

Still, there are ongoing questions about how Canberra can strike the right note on such a charged issue. While Australia is caught between principled support for a fellow democracy and the risks of supporting the United States and being entangled in an actual military crisis, it is difficult to see how Canberra’s recent tub-thumping rhetoric represents a coherent diplomatic posture.

Former Australian prime minister Kevin Rudd contends that ‘the public language of Morrison, Dutton and Pezzullo on China, Taiwan and the possibility of war in the last week serves zero national security purpose’. Strategic scholar and former secretary of the Australian Department of Defence Hugh White argues that ‘[Australia’s] best interests would be served by urging [US President Joe Biden] to be cautious, and by being cautious ourselves’.

Perhaps it is best for Canberra not to make too much ‘noise’. Australia cannot on its own substantially affect a resolution of the situation in the Taiwan Strait through diplomacy. In order to avoid a nightmare scenario in the Pacific, Australian politicians should calm down their rhetoric while scrupulously…

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Trends and Future Prospects of Bilateral Direct Investment between China and Germany

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China and Germany experienced a decline in direct investment in 2023 due to global economic uncertainty and policy changes. Despite this, China remains an attractive destination for German FDI. Key industries like automotive and advanced manufacturing continue to draw investors, although FDI outflows from Germany to China decreased by 30% in the first three quarters of 2023. Despite this, the actual use of foreign capital from Germany to China increased by 21% in the same period according to MOFCOM. The Deutsche Bundesbank’s FDI data and MOFCOM’s actual use of foreign capital provide different perspectives on the investment trends between the two countries.


Direct investment between China and Germany declined in 2023, due to a range of factors from global economic uncertainty to policy changes. However, China remains an important destination for German foreign direct investment (FDI), and key industries in both countries continue to excite investors. We look at the latest direct investment data between Germany and China to analyze the latest trends and discuss key factors that could shape future business and commercial ties.

Direct investment between China and Germany has undergone profound changes over the past decade. An increasingly complex investment environment for companies in both countries has led to falling two-way FDI figures in the first three quarters of 2023, in stark contrast to positive trends seen in 2022.

At the same time, industries with high growth potential, such as automotive and advanced manufacturing, continue to attract German companies to China, and high levels of reinvested earnings suggest established firms are doubling down on their commitments in the Chinese market. In Germany, the potential for electric vehicle (EV) sales is buoying otherwise low investment among Chinese companies.

According to data from Deutsche Bundesbank, Germany’s central bank, total FDI outflows from Germany to China fell in the first three quarters of 2023, declining by 30 percent to a total of EUR 7.98 billion.

This is a marked reversal of trends from 2022, when FDI flows from Germany to China reached a record EUR 11.4 billion, up 14.7 percent year-on-year.

However, according to China’s Ministry of Commerce (MOFCOM), the actual use of foreign capital from Germany to China increased by 21 percent year-on-year in the first eight months of 2023. The Deutsche Bundesbank’s FDI data, which follows standards set by the IMF, the OECD, and the European Central Bank (ECB), includes a broader scope of transactions within its direct investment data, including, broadly, direct investment positions, direct investment income flows, and direct investment financial flows.

Meanwhile, the actual use of foreign capital recorded by MOFCOM includes contracted foreign capital that has been concluded, including the registered and working capital paid by foreign investors, as well as the transaction consideration paid for the transferred equity of domestic investors.

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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Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident

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China’s coast guard on Saturday fired a water cannon at a Philippine supply boat in disputed waters in the South China Sea, causing “significant damages to the vessel” and injuring its crew, the Philippine coast guard said.

Manila was attempting to resupply troops stationed on a ship at the Second Thomas Shoal, known locally as Ayungin Shoal, when the Chinese coast guard and maritime militia “harassed, blocked, deployed water cannons, and executed dangerous maneuvers against the routine RoRe (rotation and resupply) mission,” said the Philippine National Task Force for the West Philippine Sea.

The West Philippine Sea is the part of the South China Sea that Manila claims as its jurisdiction.

The Chinese coast guard also set up “a floating barrier” to block access to shoal where Manila ran aground an old warship, BRP Sierra Madre, to serve as a military outpost.

The Philippine task force condemned China’s “unprovoked aggression, coercion, and dangerous maneuvers.”

Philippines’ RoRe missions have been regularly blocked by China’s coast guard, but this is the first time a barrier was set up near the shoal. 

The Philippine coast guard nevertheless claimed that the mission on Saturday was accomplished.

Potential consequences

The Second Thomas Shoal lies within the country’s exclusive economic zone where Manila holds sovereign rights. 

China, however, claims historic rights over most of the South China Sea, including the Spratly archipelago, which the shoal forms a part of.

A Chinese foreign ministry’s spokesperson on Saturday said the Philippine supply vessel “intruded” into the waters near the shoal, called Ren’ai Jiao in Chinese, “without permission from the Chinese government.”

“China coast guard took necessary measures at sea in accordance with law to safeguard China’s rights, firmly obstructed the Philippines’ vessels, and foiled the Philippines’ attempt,” the ministry said.

“If the Philippines insists on going its own way, China will continue to adopt resolute measures,” the spokesperson said, warning that Manila “should be prepared to bear all potential consequences.”

Chinese Maritime Militia vessels near the Second Thomas Shoal in the South China Sea, March 5, 2024. (Adrian Portugal/Reuters)

U.S. Ambassador to the Philippines MaryKay Carlson wrote on social media platform X that her country “stands with the Philippines” against China’s maneuvers.

Beijing’s “interference with the Philippines’ freedom of navigation violates international law and threatens a free and open Indo-Pacific,” she wrote.

Australian Ambassador to the Philippines Hae Kyong Yu also said that Canberra shares the Philippines’ “serious concerns about dangerous conduct by China’s vessels adjacent to Second Thomas Shoal.” 

“This is part of a pattern of deeply concerning behavior,” Yu wrote on X.

Edited by Jim Snyder.

Read the rest of this article here >>> Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident

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Foreigners in China: 2024 Living and Working Guidelines

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China’s Ministry of Commerce released updated guidelines for foreign businesspersons living and working in China in 2024. The guidelines cover accommodations, visas, work permits, and emergency protocols. It also outlines responsibilities regarding social security premiums and individual income tax obligations. prompt registration for temporary accommodation is required upon arrival.


The updated 2024 guidelines for foreign businesspersons living and working in China, released by the country’s Ministry of Commerce, outline essential procedures and considerations covering accommodations, visas, work permits, and emergency protocols.

On January 25, 2024, China’s Ministry of Commerce (MOFCOM) released the latest version of the Guidelines for Foreign Businessmen to Live and Work in China (hereinafter referred to as the “guidelines”).

The document is divided into four main sections, labeled as:

Furthermore, the guidelines elucidate the regulatory framework governing foreign businessperson’s responsibilities concerning social security premiums and individual income tax obligations.

This article provides a comprehensive overview of the guidelines, delving into their significance and implications for foreign businesspersons in China.

Upon arrival in China, prompt registration for temporary accommodation is required.

If staying in a hotel, registration can be facilitated by the hotel staff upon presentation of a valid passport or international travel documents.

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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