China
Biden’s strategy traces the Cold War’s mental map
Author: James Curran, University of Sydney
Within days of each other, revealing portraits of the United States and China have been unveiled. In Washington, the Biden administration released its national security strategy. It says much about American psychology at a critical juncture. And Beijing witnessed the opening of the 20th Party Congress on 16 October that will see Xi Jinping confirmed as president for a record third term.
It comes as the White House launches arguably its biggest move to compete with, and restrain, China in its technology war, curbing the ability of world and US chip makers to sell semiconductors and chip-making equipment to Chinese customers. As Bloomberg notes, it strikes at the foundation of China’s efforts to build its own chip industry.
This represents a dramatic escalation in technology decoupling and has been met with a forceful Chinese response. Furious officials in Beijing already threaten economic retaliation.
With Trump’s trade tariffs still in place, Beijing has no doubt that the US is out to cripple its capacity to compete on equal terms. On top of its property crash, strains arising from Xi’s zero-COVID-19 policy and slowing economic growth, it is not the atmosphere Xi desired to shadow the Congress.
Biden’s national security strategy is, like those of his predecessors, sonorous in style and pronouncement. It puts America on a footing for what the president calls a moment of ‘inflection’ for the world, a ‘decisive decade’ for the United States.
Crucially, it projects humility about past failures. Washington stresses it has learnt from mistakes, delivering a relieved farewell to the post-Cold War era. Even more remarkably, it appears to have relinquished the goal of democracy promotion. ‘We will not use our military to change regimes’, it says, ‘or remake societies’. This is the sharpest break of all. Largely missing is Biden’s pre-election stress on a ‘foreign policy for the middle class’. The shackles, it seems, are once more off.
This remains an America that will not easily — if ever — embrace the prospect of being a ‘normal’ nation, or even just a conventional great power. To do so would be to deny the very essence of what makes them Americans.
The enterprise sketched by US policymakers in this strategy remains vast and all-embracing. It touches all corners of the globe, embraces a panoply of policies. The community of nations, it assumes, in a statement that could have been uttered by Woodrow Wilson in Paris in 1919, ‘shares our vision for the future of international order’.
The mental map of the old Cold War with all its obvious contradictions still has a powerful hold. Though divine providence is not openly summoned, its pulse quickens the American system, fuels its self-belief. ‘Primacy’, appearing only once in the document, is no longer the beating heart of US grand strategy. But its replacement, namely ‘out-competing’ Russia and China, carries the same meaning, even as it commits to avoiding the ‘temptation to see the world solely through the prism of strategic competition’.
Indeed, in looking to eschew the notion of a new Cold War and resist a world of ‘rigid blocs’, the document remains a manifesto for the very binary Biden declared at the outset of his presidency — that between democracies and autocracies.
In doing so, the strategy is in some ways reminiscent of former US diplomat George Kennan’s Long Telegram from Moscow in 1946 — which essentially established the intellectual basis for containment of the Soviet Union. Biden’s document similarly depicts Russia and China as beset by problems associated with ‘the pathologies inherent in highly personalised autocracies’ that are ‘exporting an illiberal model of international order’.
This is a key judgment of the strategy — Russia has proven form in its invasion of Ukraine and ‘imperialist foreign policy’, and the China threat is depicted as spreading.
But older rhetorical threads are also woven through the document’s fabric, from presidents Truman through to Kennedy and Nixon. There are echoes of Truman’s speech to Congress in March 1947 in its pledge to ‘defend democracy around the world’. There are strains of Kennedy’s inaugural address in January 1961 in the strategy’s commitment to ‘support every country in exercising the freedom to make choices’. And more than a dose of Richard Nixon’s call from Guam in July 1969 — at another moment of relative American vulnerability — for even greater allied burden…
China
China Provides Tax Incentives on Special Equipment for Green and Digital Development
China has introduced a new tax incentive for companies investing in digital and smart upgrades of special equipment to encourage environmental protection and safe production. Companies can enjoy a 10 percent deduction from their corporate income tax payable. Eligibility and requirements are outlined by the Ministry of Finance and State Tax Administration.
A new China tax incentive aims to encourage companies to invest in digital and smart upgrades of special equipment. Companies upgrading certain equipment that aids environmental protection and safe production can enjoy a deduction of the investment at a rate of 10 percent from their corporate income tax payable. We explain the requirements of the new tax incentive.
China’s Ministry of Finance (MOF) and State Tax Administration (STA) have issued a new preferential corporate income tax (CIT) incentive for companies investing in digital and intelligent transformations of certain types of equipment. To be eligible for the incentive, companies must invest in the digital and intelligent transformation of equipment related to energy and water conservation, environmental protection, and safe production.
The new tax incentive aligns with a State Council Action Plan, released in March 2024, which aims to accelerate the renewal of large-scale equipment and consumer goods, promoting high-quality development and driving investment and consumption for long-term benefits.
If the annual CIT payable is insufficient for the offset, it can be carried forward to future years for up to five years.
The CIT payable refers to the balance after multiplying the annual taxable income by the applicable tax rate and deducting the tax reductions and exemptions according to China’s CIT Law and relevant preferential policies.
Note that companies enjoying the tax incentives must use the transformed equipment themselves. If the equipment is transferred or leased within five tax years after the transformation is completed, the incentives must stop from the month the equipment is no longer in use, and the previously offset CIT must be repaid.
The “special equipment” eligible for the preferential tax treatment covers equipment purchased and used by companies listed in the Catalog of Special Equipment for Safe Production for Corporate Income Tax Incentives (2018 Edition) and the Catalog of Special Equipment for Energy Saving, Water Conservation, and Environmental Protection for Corporate Income Tax Incentives (2017 Edition).
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
Revealing the Encouraged Industries of Hainan in 2024: Unlocking Opportunities
The 2024 Hainan Encouraged Catalogue, issued by the NDRC, MOF, and STA, aims to boost industries in the Hainan Free Trade Port. It prioritizes sectors like tourism, modern services, and high technologies, offering incentives for foreign investment and market access expansion since 2020. The Catalogue includes 176 entries across 14 categories, with 33 new additions focusing on cultural tourism, new energy, medicine and health, aviation, aerospace, and environmental protection.
The National Development and Reform Commission (NDRC), in collaboration with the Ministry of Finance (MOF) and the State Taxation Administration (STA), has issued the Catalogue of Industries Encouraged to Develop in Hainan Free Trade Port (2024 Version), hereinafter referred to as the “2024 Hainan Encouraged Catalogue.” The updated Catalogue took effect on March 1, 2024, replacing the previous 2020 Edition.
Beyond the industries already addressed in existing national catalogues, the new entries in the 2024 Hainan Encouraged Catalogue are based on practical implementation experiences and the specific needs within Hainan, prioritizing sectors such as tourism, modern services, and high technologies.
The Hainan FTP has been providing incentives to draw investors to invest and establish businesses in the region, especially foreign investment. Alongside a phased approach to opening the capital account and facilitating free capital movement, Hainan has significantly expanded market access for foreign enterprises since 2020, particularly in sectors such as telecommunications, tourism, and education.
The Hainan Encouraged Catalogue comprises two main sections:
Similar to the approach adopted by the western regions, foreign-invested enterprises (FIEs) should always implement their production or operations in accordance with the Catalogue of Encouraged Industries for Foreign Investment.
On top of the industries already addressed in existing national catalogues, the 2024 Hainan Encouraged Catalogue encompasses 14 distinct categories and a total of 176 entries especially encouraged in the region, including 33 new additions compared to the 2020 Edition. These new entries predominantly span cultural tourism, new energy, medicine and health, aviation and aerospace, and ecological and environmental protection, among others.
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
Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
China’s standards authority has released draft standards for personal information protection compliance audits, potentially making them mandatory for companies in 2023. The audits will require companies to undergo annual or biennial checks based on the number of people’s information they handle. The draft standards outline the audit process and requirements, seeking public feedback until September 11, 2024.
China’s standards authority has released draft standards for conducting personal information protection compliance audits. Regular compliance audits to ensure compliance with personal information protection regulations may become a requirement for companies in China under draft measures released in 2023. We explain the audit processes and requirements proposed in the draft standards.
The Standardization Administration of China (SAC) has released a set of draft standards for conducting personal information (PI) protection compliance audits. Under draft measures released by the Cyberspace Administration of China (CAC) in August 2023, companies that process the PI of people in China are required to undergo regular compliance audits.
Specifically, companies that process the PI of over one million people must undergo a compliance audit at least once a year, while companies that process the PI of under one million people must carry out an audit at least once every two years.
While the draft measures stipulate the obligations of the auditing body and the audit scope, the draft standards outline the specific audit process, including evidence management and permissions of the audit organization, as well as the professional and ethical requirements of auditors.
The Secretariat of the National Cybersecurity Standardization Technical Committee is soliciting public feedback on the draft standards until September 11, 2024. Public comment on the draft measures released in August last year closed on September 2, 2023, but no updated document has yet been released.
The draft standards outline five stages of the PI protection compliance audit: audit preparation, implementation, reporting, problem rectification, and archiving management.
Auditors are required to accurately document identified security issues in the audit working papers, ensuring that the records are comprehensive, clear, and conclusive, reflecting the audit plan and its execution, as well as all relevant findings and recommendations.
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 Provides Tax Incentives on Special Equipment for Green and Digital Development
- Revealing the Encouraged Industries of Hainan in 2024: Unlocking Opportunities
- Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
- A Comprehensive Guide to China’s Expanded 144-Hour Visa-Free Transit Policy at 37 Ports
- Regulatory Changes in China Aim to Boost Service Sector Growth in Six Cities
- Adhering to Updated Registered Capital Regulations in China’s Revised Company Law
