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China

China doubles down on its zero-COVID policy ahead of party congress

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The ruling Chinese Communist Party (CCP) has doubled down on its leader Xi Jinping’s zero-COVID policy, with a key political communique ahead of the 20th party congress saying it must become “normalized.”
The final plenary session of the CCP Central Committee, which typically sets the tone for the party congress that follows, said the government had persevered with rolling lockdowns, mass testing and a health code app that controls people’s movements and successfully “normalized” the anti-COVID measures.
Meanwhile, the CCP’s official newspaper, the People’s Daily, ran two front page op-ed articles supporting zero-COVID.
“We can’t lie down on the job, because it’s impossible to win that way,” read the headline of one article on the front page on Wednesday, while an article dated Oct. 10 called for public patience with the measures, which have seen millions sealed into their homes, often without enough to eat or access to medical treatment, resulting in reports of deaths from suicide, starvation and untreated medical emergencies across the country.
The first article said governments around the country must “stick unswervingly to the zero-COVID policy, successfully normalize disease control and prevention measures, and never lose sight of the fundamental aim, which is to prevent large-scale outbreaks.”
“People on a 100-mile journey can’t stop after 95 miles and call it success,” the second article said. “In the fight against the pandemic, confidence is more precious than gold.”
“Some countries choose to lie down on the job, adopting the ‘living with COVID’ strategy,” it said. “This isn’t because they don’t want to control the pandemic, but because they are unable to.”
Chinese political commentator Wei Xin said the communique shows that Xi’s zero-COVID policy is now a main plank of the official party line.

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China

Balancing China’s labour migration through education

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Migrant workers take a government-chartered bus to work elsewhere in Qiandongnan,Guizhou Province, China, 29 January 2023 (Photo by Reuters/CFOTO).

Abstract

The 2020 Chinese census showed a 69.7% increase in domestic migrant numbers, leading to concerns about regional economic disparities and the impact of skilled labor migration on underdeveloped regions.

Yongjie Xiong, a scholar at the Central University of Finance and Economics, discusses the findings of the 2020 Chinese census, which revealed a 69.7% increase in domestic migrant numbers compared to 2010 data. This significant influx of people has sparked debates about the Chinese government’s approach to managing large-scale labor migration.

The shifting landscape of China’s migrant worker demographics reflects changes in employment sectors and educational attainment. Notably, a higher percentage of newer generations of migrant workers are involved in the manufacturing sector, indicating a shift away from sectors like construction. Additionally, the newer cohort of migrants is better educated, which has implications for labor dynamics in urban environments.

These changes in labor demographics could exacerbate regional economic disparities and impact technological developments in various regions. The depletion of skilled labor in underdeveloped areas could hinder growth and affect the technological decisions of firms, ultimately widening the economic gap between cities.

As regions grapple with the challenges and opportunities presented by labor mobility, examining the impact of these changes on the economy and society is crucial for informing future policy decisions.

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China

Annual Confirmation for China IIT Special Additional Deductions to Commence on December 1st

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Starting December 1, 2023, the confirmation process for annual individual income tax (IIT) special additional deductions begins in China. All individuals, including expatriates, should determine eligibility and confirm the information before the end of the month to avoid difficulties in tax savings.


Starting on December 1, 2023, the confirmation process for annual individual income tax (IIT) special additional deductions begins. All individuals, including expatriates working in China, are advised to determine their eligibility for relevant special additional deductions. If eligible, individuals should promptly confirm the special additional deduction information through designated channels before the end of the month. Failing to confirm the IIT special additional deduction information may result in unnecessary difficulties in tax savings for the following year.

In 2019, China introduced special additional deductions for specific expenditures. According to the amended IIT Law, the taxable income amount of a resident individual in China shall be the balance after deducting the standard deduction (RMB 60,000 per year), as well as special deductions (social insurance and housing fund contributions), special additional deductions, and other deductions determined pursuant to the law, from the income amount of each tax year.

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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China’s top diplomat visits Vietnam ahead of likely Xi trip

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Chinese Foreign Minister Wang Yi is expected in Vietnam Friday, paving the way for a possible visit by President Xi Jinping this month.

Wang will co-chair the 15th session of the Vietnam-China Bilateral Cooperation Steering Committee, an annual event, with Vietnam’s Deputy Prime Minister Tran Luu Quang.

Vietnam’s Ministry of Foreign Affairs says the Chinese foreign minister will have talks with his Vietnamese counterpart Bui Thanh Son and greet Communist Party General Secretary Nguyen Phu Trong and President Vo Van Thuong. 

Xi – who is also the Chinese Communist Party General Secretary – was originally expected to visit Hanoi in October or November for talks with his counterpart Trong, who was in Beijing last year. Instead, Xi traveled to San Francisco for November’s APEC summit and a meeting with U.S. President Joe Biden. His Vietnam visit is now expected to take place from Dec. 14-16.

Since Trong’s 2022 China trip Vietnam has elevated its relations with the U.S. to a “comprehensive strategic partnership,” putting it on a par with China, along with India, Russia and South Korea. This week Vietnam also conferred its top partnership ranking on Japan during a visit to Tokyo by its president Vo Van Thuong.

Courting Vietnam

Improved relations with Vietnam are likely to help the U.S. and Japan diversify supply chains and reduce their reliance on a politically and economically turbulent China. That in turn seems to have prompted Beijing to seek even stronger ties with Hanoi.

Chinese President Xi Jinping (L) and Vietnam Communist Party General Secretary Nguyen Phu Trong raise a toast after witnessing a signing ceremony of a dozen bilateral agreements following their official talks at the VCP’s Headquarters in Hanoi on November 5, 2015. (Reuters)

Carl Thayer, a Vietnam analyst and emeritus professor at the Australian Defense Force Academy in Canberra, said when Xi visits Hanoi he will likely want to discuss the same issues with Trong that U.S. President Joe Biden raised with the Vietnamese leader during their September meeting:

“[I]mproving the efficiency and stability of bilateral supply chains, creating better conditions for Chinese businesses to invest and operate in Vietnam, enhancing cooperation in e-commerce and the digital economy, increased science and technology joint research, education and training exchanges, … green development and climate change response, public health cooperation, protection of water resources along the Lancang-Mekong River, cross-border tourism and cultural exchanges, and coordination on international issues.”

China is Vietnam’s largest trading partner with bilateral trade rising 5.5% last year to US$175.5 billion, according to Vietnam’s Ministry of Industry and Trade.

China’s Commerce Minister Wang Wentao also visited Vietnam this week pledging to deepen trading ties and open the Chinese market to more agricultural imports.

Despite an improving trade relationship, Vietnam and China have clashed frequently over territorial claims in the South China Sea. Hoang Viet, an expert on the issue, told Radio Free Asia that Beijing is likely to tone down its rhetoric, in order to avoid souring top level relations.

“In anticipation of Xi Jinping’s visit to Vietnam, China may exercise maximum restraint to create a more moderate atmosphere,” he said.

Despite their differences in the South China Sea, China and Vietnam have been holding joint patrols between their navies and coast guards in the Gulf of Tonkin in November and December.

Beijing and Hanoi said the patrols aimed “to carry forward the traditional friendship and deepen mutual trust between the two countries, as well as further promote mutual understanding between the two militaries.”

Edited by Elaine Chan and Taejun Kang.

RFA Vietnamese contributed to this story.

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