Connect with us
//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js (adsbygoogle = window.adsbygoogle || []).push({});

China

Stumbling blocks to ASEAN-China smart city cooperation

Published

on

Prospective buyers look at model for Forest City Johor Bahru in Johor Bahru, Malaysia, 21 February 2017 (Photo: REUTERS/Edgar Su)

Author: Melinda Martinus, ISEAS-Yusof Ishak Institute

China is moving full speed ahead in the race for global technology leadership having promoted artificial intelligence, expanded venture capital and funded start-ups worldwide.

ASEAN countries have seen a surge in Chinese capital flows through massive infrastructure projects that have significant smart city elements, including Forest City Johor Bahru, New Clark City, New Manila Bay City of Pearl and Thailand’s Eastern Economic Corridor. China has also shown a great interest in the region’s newly planned township projects, including the Indonesia’s new capital city in East Kalimantan and New Yangon City.

To promote its investments in the region, China has emphasised the opportunity to leverage solutions based on the Internet of Things (IoT) while advertising projects as ‘smart’, ‘green’, and ‘liveable’. This includes the use of sensors, networks and data to optimise public services and enhance liveability through automated energy management, integrated traffic control and faster internet connections in newly built towns. Chinese-owned technology platforms like digital wallet by Alipay, AI adoption and 5G networks by Huawei, and communication platforms by Tencent have also become essential solution providers to enhance public services.

The Chinese government frequently promotes smart city cooperation under its Digital Silk Road Initiative, a significant component of the Belt and Road Initiative (BRI). In ASEAN, cooperation is enhanced through the ASEAN–China Strategic Partnership Vision 2030 where China has pledged to support ASEAN’s technology transformation initiatives, including the ASEAN ICT Master Plan 2020 and the ASEAN Smart City Network.

Despite lofty ambitions and political buy-in from ASEAN leaders, China still faces technical challenges. Huawei’s failure to win the bid to provide Singapore’s main 5G network demonstrates how aware policymakers are of security and data protection issues. Huawei has frequently faced accusations of enabling espionage by the Chinese government. Huawei’s loss to Nokia and Ericsson also shows how competitive and rigorous the process of bidding for critical infrastructure is in Singapore.

The Jakarta–Bandung High-Speed Rail was delayed by land acquisition barriers that have revealed challenges China must overcome to execute large-scale projects in a country that embraces the rights of individual ownership and fully adheres to the land market economy. This experience has also shown the limit of China’s development model even with its extensive experience building large infrastructure projects domestically.

China is yet to create a ‘green’ and ‘sustainable’ image from its BRI projects. Chinese-backed investment projects like Forest City Johor Bahru have received criticism for their detrimental impacts on the surrounding ecosystem by destroying marine biodiversity and polluting waterways. Similarly, the ongoing New Manila Bay City of Pearl project has been criticised for the potentially harmful impacts caused by the loss of both mangrove biodiversity and livelihoods of fisher communities.

There is also concern over trust. Malaysian civil societies frequently raise the issue of equity, questioning how Forest City Johor Bahru will bring employment and affordable housing to local people. The appointment of China Harbour Engineering to conduct reclamation work in Manila Bay has also sparked concerns as the company was involved in a bribery scandal in Bangladesh.

China may also face fierce competition from other players. Although Japan has not yet signed significant deals on large-scale smart city projects, it has recently announced a US$2.4 billion fund to pave the way for companies seeking smart city projects, particularly projects that help ASEAN cities to decarbonise. South Korea has also recently increased funds for ASEAN infrastructure projects through the Korea–ASEAN Global Infra Fund, and the Construction, Plant and Smart City Policy Fund. 

Non-Chinese private investors have also started smart city projects in the region. Japanese company Mitsubishi recently announced a joint venture with Singapore’s state-backed investor Temasek Holdings to build a 100-hectare smart city in Jakarta. Amata Corporation, a Thai industrial estate developer, has also started to expand capital in the Mekong countries. The company also sealed deals to build industrial complexes in Myanmar (which has been halted due to the coup) and Laos in addition to its extensive portfolio in Vietnam.

China’s…

Read the rest of this article on East Asia Forum

Continue Reading

China

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

Published

on

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.

Continue Reading

China

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

Published

on

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

Continue Reading

China

Foreigners in China: 2024 Living and Working Guidelines

Published

on

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.

Continue Reading