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
Trends and Future Prospects of Bilateral Direct Investment between China and Germany
China and Germany experienced a decline in direct investment in 2023 due to global economic uncertainty and policy changes. Despite this, China remains an attractive destination for German FDI. Key industries like automotive and advanced manufacturing continue to draw investors, although FDI outflows from Germany to China decreased by 30% in the first three quarters of 2023. Despite this, the actual use of foreign capital from Germany to China increased by 21% in the same period according to MOFCOM. The Deutsche Bundesbank’s FDI data and MOFCOM’s actual use of foreign capital provide different perspectives on the investment trends between the two countries.
Direct investment between China and Germany declined in 2023, due to a range of factors from global economic uncertainty to policy changes. However, China remains an important destination for German foreign direct investment (FDI), and key industries in both countries continue to excite investors. We look at the latest direct investment data between Germany and China to analyze the latest trends and discuss key factors that could shape future business and commercial ties.
Direct investment between China and Germany has undergone profound changes over the past decade. An increasingly complex investment environment for companies in both countries has led to falling two-way FDI figures in the first three quarters of 2023, in stark contrast to positive trends seen in 2022.
At the same time, industries with high growth potential, such as automotive and advanced manufacturing, continue to attract German companies to China, and high levels of reinvested earnings suggest established firms are doubling down on their commitments in the Chinese market. In Germany, the potential for electric vehicle (EV) sales is buoying otherwise low investment among Chinese companies.
According to data from Deutsche Bundesbank, Germany’s central bank, total FDI outflows from Germany to China fell in the first three quarters of 2023, declining by 30 percent to a total of EUR 7.98 billion.
This is a marked reversal of trends from 2022, when FDI flows from Germany to China reached a record EUR 11.4 billion, up 14.7 percent year-on-year.
However, according to China’s Ministry of Commerce (MOFCOM), the actual use of foreign capital from Germany to China increased by 21 percent year-on-year in the first eight months of 2023. The Deutsche Bundesbank’s FDI data, which follows standards set by the IMF, the OECD, and the European Central Bank (ECB), includes a broader scope of transactions within its direct investment data, including, broadly, direct investment positions, direct investment income flows, and direct investment financial flows.
Meanwhile, the actual use of foreign capital recorded by MOFCOM includes contracted foreign capital that has been concluded, including the registered and working capital paid by foreign investors, as well as the transaction consideration paid for the transferred equity of domestic investors.
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
Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident
China’s coast guard on Saturday fired a water cannon at a Philippine supply boat in disputed waters in the South China Sea, causing “significant damages to the vessel” and injuring its crew, the Philippine coast guard said.
Manila was attempting to resupply troops stationed on a ship at the Second Thomas Shoal, known locally as Ayungin Shoal, when the Chinese coast guard and maritime militia “harassed, blocked, deployed water cannons, and executed dangerous maneuvers against the routine RoRe (rotation and resupply) mission,” said the Philippine National Task Force for the West Philippine Sea.
The West Philippine Sea is the part of the South China Sea that Manila claims as its jurisdiction.
The Chinese coast guard also set up “a floating barrier” to block access to shoal where Manila ran aground an old warship, BRP Sierra Madre, to serve as a military outpost.
The Philippine task force condemned China’s “unprovoked aggression, coercion, and dangerous maneuvers.”
Philippines’ RoRe missions have been regularly blocked by China’s coast guard, but this is the first time a barrier was set up near the shoal.
The Philippine coast guard nevertheless claimed that the mission on Saturday was accomplished.
Potential consequences
The Second Thomas Shoal lies within the country’s exclusive economic zone where Manila holds sovereign rights.
China, however, claims historic rights over most of the South China Sea, including the Spratly archipelago, which the shoal forms a part of.
A Chinese foreign ministry’s spokesperson on Saturday said the Philippine supply vessel “intruded” into the waters near the shoal, called Ren’ai Jiao in Chinese, “without permission from the Chinese government.”
“China coast guard took necessary measures at sea in accordance with law to safeguard China’s rights, firmly obstructed the Philippines’ vessels, and foiled the Philippines’ attempt,” the ministry said.
“If the Philippines insists on going its own way, China will continue to adopt resolute measures,” the spokesperson said, warning that Manila “should be prepared to bear all potential consequences.”
U.S. Ambassador to the Philippines MaryKay Carlson wrote on social media platform X that her country “stands with the Philippines” against China’s maneuvers.
Beijing’s “interference with the Philippines’ freedom of navigation violates international law and threatens a free and open Indo-Pacific,” she wrote.
Australian Ambassador to the Philippines Hae Kyong Yu also said that Canberra shares the Philippines’ “serious concerns about dangerous conduct by China’s vessels adjacent to Second Thomas Shoal.”
“This is part of a pattern of deeply concerning behavior,” Yu wrote on X.
Edited by Jim Snyder.
Read the rest of this article here >>> Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident
China
Foreigners in China: 2024 Living and Working Guidelines
China’s Ministry of Commerce released updated guidelines for foreign businesspersons living and working in China in 2024. The guidelines cover accommodations, visas, work permits, and emergency protocols. It also outlines responsibilities regarding social security premiums and individual income tax obligations. prompt registration for temporary accommodation is required upon arrival.
The updated 2024 guidelines for foreign businesspersons living and working in China, released by the country’s Ministry of Commerce, outline essential procedures and considerations covering accommodations, visas, work permits, and emergency protocols.
On January 25, 2024, China’s Ministry of Commerce (MOFCOM) released the latest version of the Guidelines for Foreign Businessmen to Live and Work in China (hereinafter referred to as the “guidelines”).
The document is divided into four main sections, labeled as:
Furthermore, the guidelines elucidate the regulatory framework governing foreign businessperson’s responsibilities concerning social security premiums and individual income tax obligations.
This article provides a comprehensive overview of the guidelines, delving into their significance and implications for foreign businesspersons in China.
Upon arrival in China, prompt registration for temporary accommodation is required.
If staying in a hotel, registration can be facilitated by the hotel staff upon presentation of a valid passport or international travel documents.
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.
- Trends and Future Prospects of Bilateral Direct Investment between China and Germany
- Manila blasts China’s ‘unprovoked aggression’ in latest South China Sea incident
- Foreigners in China: 2024 Living and Working Guidelines
- China Unveils 24 Fresh Initiatives to Draw in Foreign Investment
- China’s top diplomat visits Australia, pushes stable relations
- Wang Yi, China’s Foreign Minister, will visit Australia to discuss trade and technology.
