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China

Canada’s intercept in Australia’s loose China game

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Flags of Canada and China are placed for the first China-Canada economic and financial strategy dialogue in Beijing, China, 12 November 2018 (Photo: Reuters/Jason Lee/Pool).

Author: Editorial Board, ANU

Engagement has been the bedrock of Canada’s approach towards China for over 50 years. In 1970, Pierre Trudeau, father of Justin, the current Canadian Prime Minister, was among the first Western leaders to open diplomatic relations with Beijing, before the visit of US President Nixon shifted the logjam on US–China relations in 1971. Canada’s co-location alongside its nuclear superpower protector in no way inhibited strategic initiative on China; indeed, it created the space for it.

Caught on the battle front in the crossfire between a more assertive and formidable China and a United States that has suddenly swung into action in the so-called ‘new Cold War’, Canada’s engagement strategy is now under pressure.

Canada’s predicament is encapsulated in the angst generated around the drawn-out detention of Michael Kovrig and Michael Spavor in China (the two Michaels) and the arrest of Huawei CFO Meng Wanzhou in Vancouver on an extradition order requested by the United States under the Trump administration. The fate of the two Michaels, no one is in any doubt, is entwined with that of Meng. The shift in Canadian public sentiment on China has been dramatic.

Polls and commentary on social and mainstream media reveal a gathering landslide of hostility and negative sentiment in the relationship. Concerns about Chinese behaviour extend from Xinjiang, Tibet and the origins of COVID-19, to the South China Sea, developments in Hong Kong and Chinese interference operations.

In our lead article this week Paul Evans observes that ‘the public mood is agitated and negative … The online world is toxic and dangerous terrain for those trying to explain — much less defend — Chinese actions. A whiff of McCarthyism floats in the air as some insist on loyalty tests based on views of Chinese communism. “Elite capture” is offered as an explanation of how academics, businesspeople and politicians who support engagement are witting or unwitting CCP agents … Departments and agencies are quietly examining Huawei’s role in the 5G network, measures to protect intellectual property and strategic resources, university collaborations, and military deployments in contested waters’. Australian readers will relate to this drift.

As Trudeau’s Liberals head towards an early election on the wave of their success in managing the COVID-19 crisis, Evans speculates that the Conservative opposition might try to wedge the government over China.

The Conservatives’ election manifesto is detailed, calling on the country to work with democratic allies and friends to face down Chinese Communist Party (CCP) threats to Canadian institutions and values, plus advance freedom, democracy, human rights and the rule of law abroad.

Despite the hostile atmospherics, Trudeau has continued to seek balance in Canada’s dealings with China. He has deflected charges that his government is soft on China, using hard language to denounce specific Chinese actions (‘hostage diplomacy’ and ‘arbitrary detentions’) and rallying support from friends and allies to pressure Beijing on the two Michaels, Xinjiang and Hong Kong. The Canadian government avoids blanket criticisms of the CCP and rhetorical overreach. If Trudeau has moved beyond engagement, he is yet to fully articulate an alternative.

Despite the fractiousness in Canada’s political relations with China, the economic relationship is surging back after the initial COVID slump. In a thinly disguised political move, China imposed quarantine restrictions on Canadian exports of canola and soya beans in March 2019. Exports of those commodities worth US$3.3 billion in 2018 slumped by 81 per cent in 2019. While the dispute is proceeding through the WTO, oilseed exports have recovered 58 per cent in the first six months of this year and Canadian canola exports have found their way into the Chinese market via third countries. Exports across the range of Canadian exports to China have increased by 23 per cent in the same period and are running above their 2018 peak. Notably, Canada’s barley exports to China are up 238 per cent and coal 185 per cent, helping to fill the gap left by Australia’s being muscled out of these markets.

Many of the issues in Canada’s relationship with China resonate in Australia. Yet the two countries have managed the diplomacy of the relationship quite differently with implications for economic outcomes. As Sourabh Gupta points out in a related article this week, ‘on the substantive issues that have eroded Australia–China ties…

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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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