China
Beijing’s self-sabotage in the South China Sea
Author: Gregory Poling, CSIS
The situation in the South China Sea continues to deteriorate — military tensions are rising, Southeast Asian states are losing space to exercise their rights, fisheries are sliding closer to collapse and China is undermining its goal of regional and global leadership. Facing regular coercion, China’s neighbours are growing increasingly disillusioned about its long-term intentions and, alongside international partners, are strengthening their objections to Beijing’s claims.
China significantly increased its coast guard patrols and military exercises in disputed waters from 2020, and dangerous harassment of Southeast Asian oil and gas operations by Chinese law enforcement and retaliatory seabed surveys became the new normal. Then in January 2021, Beijing passed a law strengthening the China Coast Guard’s (CCG) authority to enforce maritime claims, by force if necessary. The law may be ambiguous, but its tough language and vast scope raised anxieties.
In March, the Philippines reported more than 220 Chinese maritime militia vessels gathered at Whitsun Reef in the disputed Union Banks. The Philippine Coast Guard conducted several patrols to the reef and the government released photos and video of the militia flotilla. Vietnam soon did the same. The embarrassment and diplomatic tension got Beijing’s attention and it temporarily dispersed the fleet to other nearby reefs. But the militia boats returnedand by October their numbers were approaching 200.
The oil and gas standoffs that have been routine since 2019 also continue. In June 2021, CCG vessels began patrolling around Malaysian drilling operations in the Kasawari gas field off Sarawak, targeting offshore supply vessels. Chinese military planes simultaneously patrolled near Malaysian air space, prompting Kuala Lumpur to scramble jets and issue a diplomatic protest. In September, China seemed to retaliate against a drilling operation by conducting a seabed survey on Malaysia’s continental shelf.
In July, China and Indonesia got into their first real spat over hydrocarbons when an Indonesian-licensed rig began drilling two appraisal wells in the country’s Tuna block at the southern edge of the South China Sea. CCG vessels patrolled around the rig for the next four months. China also deployed a survey ship with a CCG escort to conduct a seabed survey of Indonesia’s continental shelf — carefully tracing the edge of China’s ‘nine-dash line’ — as Indonesian Navy vessels shadowed it.
A dangerous incident took place in November when China turned high-pressure water cannons on a civilian ship resupplying Philippine troops on Second Thomas Shoal. The outcry from Manila — and US and European officials — was swift. China didn’t interfere with a second resupply attempt a week later. This occurred just as candidates for the 2022 Philippine presidential elections were being finalised. Predictably, most hurriedly promised a tough stance on China.
This steady stream of bad behaviour is galvanising the region. For the first time since 2016, most Southeast Asian claimants and a chorus of international partners agree that China’s behaviour is destabilising and are voicing those concerns. They are also increasingly open to greater cooperation to strengthen their positions and push back.
This shift is most evident in the Philippines.
In July, Philippine President Rodrigo Duterte decided to cease abrogating the US–Philippines Visiting Forces Agreement. Both countries subsequently agreed to develop a ‘bilateral maritime framework’ and resume construction projects under the long-stalled 2014 Enhanced Defense Cooperation Agreement (EDCA) which allows the US to access and upgrade select Philippine military bases. In November, they held their first Bilateral Strategic Dialogue in two years and announced plans to develop bilateral defence guidelines and conclude a General Security of Military Information Agreement. The Philippines has also stepped up patrols in the South China Sea and intends to deploy Coast Guard vessels to Thitu Island in the Spratlys.
The most important question for the South China Sea in 2022 is whether the turnaround in Philippine foreign policy will continue after the mid-year presidential transition. The US and Philippine defence establishments will try to lock in the recent alliance gains, with the United States already rapidly dispersing construction funds for the EDCA sites. Further high-level visits are likely as Washington seeks to prove that it is serious about forging a more robust and…
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.
- China Unveils Plan to Upgrade Industrial Equipment
- China deepens engagement with new Indonesian president as top diplomat visits Jakarta
- 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
- Uyghurs remember 1990 Baren Uprising over China’s forced abortions
