China
CPC amends its constitution to adopt a more aggressive Chinese policy towards Taiwan
The Taiwanese government has condemned Beijing’s “old mindset” after the Communist Party of China (CPC) passed a constitutional amendment vowing its goal of “fully, faithfully, and resolutely implementing the policy of One Country, Two Systems.”
The Party Constitution is the CPC’s charter – the most important document by which all 96 million members must abide.
Taiwan’s Mainland Affairs Council (MAC), the governmental administrative agency responsible for cross-Strait relations, said in a statement that the CPC’s new leadership “should break from the mindset of confronting or even invading Taiwan and resolve its differences with Taiwan in a peaceful, equitable and realistic manner.”
“Maintaining peace and stability in the Taiwan Strait is the shared responsibility of both sides of the strait,” the MAC said in the statement quoted by the official Central News Agency (CNA).
The CPC adopted several revisions of its Party Constitution at the closing ceremony of the 20th National Congress on Saturday to reflect Xi Jinping’s “new ideas, new thinking, and new strategies,” according to the Resolution on Party Constitution amendment.
Amongst new strategies on national defense and the armed forces put forward by “Comrade Xi Jinping,” the Taiwan issue is being featured prominently as the CPC pledges to build “a strong military with Chinese characteristics, making sustained and steady progress with the One Country, Two Systems policy, advancing national reunification…”
Hard line on Taiwan
The Communist Party’s revised Constitution, which came into immediate effect, includes statements on elevating the armed forces to world-class standards and “resolutely opposing and deterring separatists seeking ‘Taiwan independence’.”
The new language is seen as a step up in aggression from the previous amendment to the CPC’s Party Constitution, adopted at the 19th National Congress in 2017, which only pledged to strengthen the unity among all nationals, including people in Hong Kong, Macau, Taiwan and overseas and “to facilitate the national unification.”
It confirms President Xi Jinping’s hard line policy on Taiwan, which Beijing considers one of China’s provinces that should be “reunified” with the mainland.
In his opening speech at the twice-in-a-decade Congress, held in Beijing from Oct. 16 to Oct. 22, Xi said the CPC will “unswervingly advance the cause of national reunification.”
Xi outlined the official policy towards Taiwan that includes a firm warning on the use of force “directed solely at interference by outside forces and the few separatists seeking ‘Taiwan independence’ and their separatist activities.”
Last week, U.S. Secretary of State Antony Blinken said he believed that there had been “a change in approach” by Beijing in relation to Taiwan and “Beijing was determined to pursue reunification on a much faster timeline” than previously thought.
U.S. chief of naval operations Adm. Mike Gilday meanwhile said he couldn’t rule out that China may make a move on Taiwan this year or the next.
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China
The Latest Updates on China’s Visa-Free Policies
China has fully reopened its borders, allowing international tourism to recover. Visa-free travel policies are reinstated, and visa fees for foreign travelers will be reduced by 25% from December 11, 2023, to December 31, 2024. China and Singapore are also pursuing a 30-day visa-free travel arrangement.
China has fully reopened its borders, promising recovery of international tourism and travel. Many of the visa-free travel policies that were in place prior to the pandemic have therefore come back into effect, enabling people from a wide range of countries to visit
UPDATE (December 8, 2023): On December 8, 2023, the Ministry of Foreign Affairs released the Notice on Temporary Reduction of Fees for Applying Visa to China. According to this notice, during the period from December 11, 2023, to December 31, 2024, China shall cut visa fees by 25 percent across the board for foreign travelers. For more details, please consult with your local Chinese embassy or consulate.
UPDATE (December 7, 2023): China and Singapore are seeking to establish a mutual 30-day visa-free travel arrangement to boost people exchanges between the two countries, according to Reuters. At the time of writing, no further details have been released regarding the timeline or the eligibility, requirement, and application procedures of this new arrangement. Click here for more information regarding this mutual 30-day visa-free travel between China and Singapore.
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
Analysis of UK Investments in China for 2023: Evaluating Deals, Values, M&A, and Investments
British Government underwent reshuffle with pro-China David Cameron as Foreign Minister. Possible mild rapprochement with Beijing. Analysis of UK investments in China this year reveals potential trends. Report includes unique Q1-Q3 data and predicts outlook for 2024.
By Chris Devonshire-Ellis & Henry Tillman
With a reshuffle in the British Government and ex-Prime Minister – and generally pro-China politician David Cameron now as the UK’s Foreign Minister, there have been early signs of a potential mild rapprochement in the British governments overall attitude towards Beijing.
But before people get carried away, we can look at what investments the UK has made into China this year – as investments made while anti-China politics have tended to be the norm are typically indicative of stronger trends. In this report I include unique data that has not previously been made public, and examine the Q1-Q3 investment trends to see what may lie ahead for 2024.
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
Ratings agency cuts China’s credit outlook
Financially strapped local governments and state-owned enterprises pose a risk to China’s future economic growth, the ratings agency Moody’s said today in a report downgrading the country’s credit outlook from stable to negative.
Growing evidence suggests that the central government will be required to shore up the debt-laden entities, creating “broad downside risks to China’s fiscal, economic and institutional strength,” Moody’s said.
Local governments are thought to have accumulated trillions of dollars of debt due to spending during the COVID pandemic and a loss of income due to a troubled real estate market.
Despite the challenges, Moody’s maintained China’s overall credit rating of A1, which it describes as low-risk though not the safest category of investment. Moody’s said the rating reflects its belief in the country’s “financial and institutional resources to manage the transition in an orderly fashion.”
“Its economy’s vast size and robust, albeit slowing, potential growth rate, support its high shock absorption capacity,” Moody’s said.
Even so, the outlook downgrade signals some concern about China’s future creditworthiness.
In a statement, China’s Foreign Ministry said it was disappointed in the ratings change and that Moody’s concerns about its growth and financial stability were “unnecessary.”
“In recent years, through the continuous efforts of relevant departments and local governments, China has established a system to prevent and resolve the risks of local government debt,” the ministry said. “The trend of disorderly and illegal borrowing by local governments has been initially curbed, and positive results have been achieved in the disposal of local government debt.”
Moody’s projects China’s annual growth rate will be 4% in 2024 and 2025 but average 3.8% from 2026 to 2030, at which time it might drop again to 3.5%.
Derek Scissors, the chief economist at China Beige Book, a firm that analyzes China’s economy for investors, said in an email that the downgrade was to be expected.
“It’s a recognition of long-standing conditions, not a new development,” said Scissors, who is also a senior fellow at the free-market think tank American Enterprise Institute in Washington. “I think growth will be faster than Moody’s thinks in 2024 and decelerate more than they think after that.”
Fees from local land sales account for nearly 40% of the revenue to local and regional governments. But China’s real-estate sector has been hit hard by overbuilding. One giant, Evergrande, defaulted under massive debt last year, triggering a broader real estate crisis.
Moody’s report said that “the downsizing of the property sector is a major structural shift in China’s growth drivers which is ongoing and could represent a more significant drag to China’s overall economic growth rate than currently assessed.”
Edited by Tara McKelvey
Read the rest of this article here >>> Ratings agency cuts China’s credit outlook
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