China
Canada launches Indo-Pacific strategy that talks tough on China
U.S. ally Canada has launched its own Indo-Pacific strategy “to advance Canada’s regional peace and security interests” as a Pacific nation, with indications of a tougher stance against China.
Relations between the Canadian and Chinese governments have been strained after Canada arrested Meng Wanzhou, a senior executive at the Chinese telecommunications giant Huawei in 2018 at the request of the U.S.
The bilateral tensions were exposed recently on the sidelines of the recent Group of 20 Summit in Bali, Indonesia, when Chinese leader Xi Jinping appeared to be criticizing his Canadian counterpart Justin Trudeau over alleged media leaks.
The long-awaited 23-page document said “Canada’s evolving approach to China is a critical part of the Indo-Pacific Strategy,” clearly defining Beijing as “an increasingly disruptive global power.”
China has increasingly disregarded international rules and norms while having had “an enormous impact on the Indo-Pacific” and nurturing “ambitions to become the leading power in the region,” it said.
“Canada’s Indo-Pacific Strategy is informed by its clear-eyed understanding of this global China, and Canada’s approach is aligned with those of our partners in the region and around the world,” the paper said.
The new strategy pledges to push back “against any form of foreign interference on Canadian soil” and strengthen Canada’s cyber security systems, while dedicating more resources to “enhance Canadian competencies on China.”
New investments will be made in order to deepen “our understanding of how China thinks, operates and plans, and how it exerts influence in the region and around the world.”
The document said Ottawa was reviewing all mechanisms and structures, such as Memorandums of Understanding (MOUs) and Dialogues, across all federal departments “to ensure they advance Canada’s national interests.”
Economic interests
Canada began talks on a possible free trade deal with China in 2016 but abandoned plans four years later because Trudeau’s government faced increased domestic criticism for being too lenient and compromising towards Beijing.
The Indo-Pacific is Canada’s second-largest regional export market, after the United States, with annual two-way trade valued at CA$226 billion (U.S.$168 billion).
Over the next five years, Canada will invest nearly CA$2.3 billion (U.S.$1.7 billion) in different initiatives to boost its economic and strategic role in the region, according to the new strategy.
While protecting Canadian market access in China, the new Indo-Pacific Strategy acknowledged the importance of diversifying “within, and beyond, that market.”
The paper identified a number of “key partners” in the Indo-Pacific, including India, the North Pacific (Japan and South Korea), and the ten-nation Southeast Asian bloc ASEAN.
“India’s strategic importance and leadership – both across the region and globally – will only increase,” it said, adding that besides economic cooperation, Canada will seek to bolster ties with India in the fields of security, the promotion of democracy, pluralism and human rights.
Initiatives to foster economic ties with the region include establishing the Canadian Trade Gateway in Southeast Asia and Canada’s first agriculture office in the region.
Security ties
A major part of Ottawa’s new strategy in the Indo-Pacific is to promote Canada’s security interests in the region.
“The strategy will bolster our Canadian armed forces’ presence in the region, and will enhance Canada’s defense and security relationships with partners and allies,” said Canadian Defense Minister Anita Anand.
Canada will put over CA$720 million (U.S.$535.8 million) into new security projects with more than a half of the investment going to “reinforce Canada’s Indo-Pacific naval presence and increase Canadian armed forces’ participation in regional military exercises.”
A third naval frigate will be deployed to the region, according to Canada’s department of national defense.
A new multi-department initiative will also be created “to help develop cyber security capacity in select regional partners.”
The new strategy also pledges to further promote Canada’s long-standing collaboration with, and contribution to, the Five Eyes – the intelligence alliance comprising Australia, Canada, New Zealand, the United Kingdom, and the United States.
The Canadian government said it will continue to work with partners “to push back against any unilateral actions that threaten the status quo in the Taiwan Strait, as well as the East and South China Seas.”
Since 2021, Canadian warships have taken part in some U.S.-led Taiwan Strait transits that China denounced as “provocative.”
Beijing considers Taiwan a Chinese province and the Taiwan issue the “core of China’s core interests” and an “insurmountable” red line that should not be crossed.
China has yet to respond to the newly-launched strategy but Canada’s increased military presence will no doubt provoke criticism from Beijing and risk leading to confrontations, even conflicts.
Canadian aircraft taking part in U.N. missions in the region have been dangerously intercepted by Chinese warplanes on numerous occasions.
Since December last year Ottawa has reportedly lodged “multiple” diplomatic complaints with Beijing for what it called the “unsafe and unprofessional conduct” of the Chinese pilots who “buzzed” Canadian airplanes.
“Buzzing” means flying extremely close and fast, risking a mid-air collision.
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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
Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
The Lingang New Area in Shanghai has launched China’s first Cross-Border Data Service Center to facilitate data export for companies in Shanghai. The center will help with applications, data catalogs, and management, aiming to provide legal and safe cross-border data transfer mechanisms.
The Lingang New Area in Shanghai’s Pilot Free Trade Zone has launched a new cross-border data service center to provide administrative and consulting services to companies in Shanghai that need to export data out of China. The service center will help facilitate data export by accepting applications from companies for data export projects and is tasked with formulating and implementing data catalogs to facilitate data export in the area. The Shanghai cross-border data service center will provide services to companies across the whole city.
The Lingang New Area in the Shanghai Pilot Free Trade Zone has launched China’s first Cross-Border Data Service Center (the “service center”). The service center, which is jointly operated by the Cybersecurity Administration of China (CAC) and the local government, aims to further facilitate legal, safe, and convenient cross-border data transfer (CBDT) mechanisms for companies.
The service center will not only serve companies in the Lingang New Area but is also open to companies across Shanghai, and will act as an administrative service center specializing in CBDT.
In January 2024, the local government showcased a set of trial measures for the “classified and hierarchical” management of CBDT in the Lingang New Area. The measures, which have not yet been released to the public, seek to facilitate CBDT from the area by dividing data for cross-border transfer into three different risk categories: core, important, and general data.
The local government also pledged to release two data catalogs: a “general data” catalog, which will include types of data that can be transferred freely out of the Lingang New Area, and an “important data” catalog, which will be subject to restrictions. According to Zong Liang, an evaluation expert at the service center, the first draft of the general data catalog has been completed and is being submitted to the relevant superior departments for review.
In March 2024, the CAC released the final version of a set of regulations significantly facilitating CBDT for companies in the country. The new regulations increase the limits on the volume of PI that a company can handle before it is required to undergo additional compliance procedures, provide exemptions from the compliance procedures, and clarify the handling of important data.
Also in March, China released a new set of technical standards stipulating the rules for classifying three different types of data – core, important, and general data. Importantly, the standards provide guidelines for regulators and companies to identify what is considered “important” data. This means they will act as a reference for companies and regulators when assessing the types of data that can be exported, including FTZs such as the Lingang New Area.
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
A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
The application procedures for business visas to China have been simplified, with most foreigners now able to apply for an M/F visa using only an invitation letter from a Chinese company. Some countries are eligible for visa-free entry. However, a Verification Letter of Invitation may still be needed in certain cases. Consult the local Chinese embassy for confirmation.
In light of recent developments, the application procedures for business visas to China have undergone substantial simplification. Most foreigners can now apply for an M/F visa using only the invitation letter issued by a Chinese company. Additionally, citizens of certain countries are eligible to enter China without a visa and stay for up to 144 hours or even 15 days.
However, it’s important to note that some applicants may still need to apply for a “Verification Letter of Invitation (邀请核实单)” when applying for an M/F visa to China. In this article, we will introduce what a Verification Letter of Invitation is, who needs to apply for it, and the potential risks.
It’s important to note that in most cases, the invitation letter provided by the inviting unit (whether a public entity or a company) is sufficient for M/F visa applications. The Verification Letter for Invitation is only required when the Chinese embassies or consulates in certain countries specifically ask for the document.
Meanwhile, it is also essential to note that obtaining a Verification Letter for Invitation does not guarantee visa approval. The final decision on granting a visa rests with the Chinese embassy abroad, based on the specific circumstances of the applicant.
Based on current information, foreign applicants in Sri Lanka and most Middle East countries – such as Turkey, Iran, Afghanistan, Syria, Pakistan, and so on – need to submit a Verification Letter for Invitation when they apply for a visa to China.
That said, a Verification Letter for Invitation might not be required in a few Middle East countries, such as Saudi Arabia. Therefore, we suggest that foreign applicants consult with their the local Chinese embassy or consulate to confirm in advance.
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.
- 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
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