China
Philippines’ Marcos to raise South China Sea dispute during Beijing state visit
Philippine leader Ferdinand Marcos Jr. will raise the South China Sea dispute and assert Manila’s sovereignty over its territorial waters when he meets Chinese President Xi Jinping next week during his first presidential visit to Beijing, officials said Thursday.
Marcos is embarking on the Jan 3-5 state visit weeks after Manila accused Chinese boats of “swarming” in South China Sea waters within the Philippines’ exclusive economic zone.
He will bring up issues “affecting bilateral relations, among them the issue [of the] WPS,” said Neil Imperial, the Philippine assistant foreign secretary for Asian and Pacific Affairs. “WPS” refers to the West Philippine Sea, Manila’s name for territories and waters it claims in the South China Sea.
“The president wants a peaceful and stable situation in the WPS and will continue to uphold our country’s sovereignty and sovereign rights during his meetings with Chinese leaders,” Imperial told reporters in an online press briefing.
The foreign department, however, will not “second guess what the president will say to [his] counterpart,” he said.
In addition, the foreign ministries of both governments are set to sign an agreement “establishing direct communication” to avoid “miscalculation and miscommunication” in the contested sea region, Imperial said. Details of the proposed pact were not immediately available.
The Philippine foreign office said earlier that it had sent 193 diplomatic protests to China this year alone – 65 of those since Marcos assumed the presidency in June.
China claims nearly all of the South China Sea on historical grounds, including waters within the exclusive economic zones of Brunei, Malaysia, the Philippines, Vietnam, and Taiwan. Beijing also claims historic rights to areas of the waterway that overlap Indonesia’s exclusive economic zone as well.
“The president has said that the maritime issues do not define the totality of our bilateral relations with China, but nevertheless, he acknowledges the importance of this issue to our interest and that of the Filipino people,” Imperial said.
For part of the bilateral meeting, at least, both leaders will likely discuss energy cooperation, especially in oil and gas.
The foreign department also said that it expected major Chinese investment pledges during the trip, particularly in the areas of agriculture, renewable energy and nickel processing – China supplies about 70 percent of nickel ore and concentrates to Manila.
Presidents Marcos and Xi have met once before, in Bangkok, on the sidelines of the APEC summit in November.
“With both leaders receiving a fresh mandate in recent elections, there is an expectation that the state visit will set the tone of bilateral ties between the two countries in the next five to six years,” Imperial said.
In September, Marcos met with President Joe Biden in New York on the sidelines of the United Nations General Assembly meeting.
During their meeting, Biden “reaffirmed the United States’ ironclad commitment to the defense of the Philippines.”
Concerns over COVID-19
Meanwhile, Marcos’s appointments office said that the Philippine president’s trip was shortened to three days from the originally scheduled four days over concerns about the surge of a newer, more virulent COVID-19 variant. The Chinese government has assured the Philippine side that all safety protocols and restrictions will be followed, Philippine officials said.
Members of the official delegation who fall ill during the trip would be quarantined and isolated until they recover and are fit to fly home. Marcos as well as some members of his staff had earlier this year been infected, with the president having to be isolated shortly after he took office.
The government has had to scrap planned meetings by Marcos with the significant Filipino expatriate community in Beijing, while those traveling with the president would have to undergo quarantine upon arrival at a special facility.
Earlier on Thursday, Health Undersecretary Maria Rosario Vergeire said the country didn’t see a need to shut down its borders or impose tighter restrictions for Chinese travelers despite the spread of the new COVID-19 variant in China.
“We can’t just have closures, then open it, then close it again,” she said, adding she believed that health protocols already in place were sufficient.
“We are moving forward.”
Jeoffrey Maitem in Davao City, southern Philippines, contributed to this report.
BenarNews is an RFA-affiliated online news service.
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China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
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
Q1 2024 Brief on Transfer Pricing in Asia
Indonesia’s Ministry of Finance released Regulation No. 172 of 2023 on transfer pricing, consolidating various guidelines. The Directorate General of Taxes focuses on compliance, expanded arm’s length principle, and substance checks. Singapore’s Budget 2024 addresses economic challenges, operational costs, and sustainability, implementing global tax reforms like the Income Inclusion Rule and Domestic Top-up Tax.
Indonesia’s Ministry of Finance (MoF) has released Regulation No. 172 of 2023 (“PMK-172”), which prevails as a unified transfer pricing guideline. PMK-172 consolidates various transfer pricing matters that were previously covered under separate regulations, including the application of the arm’s length principle, transfer pricing documentation requirements, transfer pricing adjustments, Mutual Agreement Procedure (“MAP”), and Advance Pricing Agreements (“APA”).
The Indonesian Directorate General of Taxes (DGT) has continued to focus on compliance with the ex-ante principle, the expanded scope of transactions subject to the arm’s length principle, and the reinforcement of substance checks as part of the preliminary stage, indicating the DGT’s expectation of meticulous and well-supported transfer pricing analyses conducted by taxpayers.
In conclusion, PMK-172 reflects the Indonesian government’s commitment to addressing some of the most controversial transfer pricing issues and promoting clarity and certainty. While it brings new opportunities, it also presents challenges. Taxpayers are strongly advised to evaluate the implications of these new guidelines on their businesses in Indonesia to navigate this transformative regulatory landscape successfully.
In a significant move to bolster economic resilience and sustainability, Singapore’s Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, unveiled the ambitious Singapore Budget 2024 on February 16, 2024. Amidst global economic fluctuations and a pressing climate crisis, the Budget strategically addresses the dual challenges of rising operational costs and the imperative for sustainable development, marking a pivotal step towards fortifying Singapore’s position as a competitive and green economy.
In anticipation of global tax reforms, Singapore’s proactive steps to implement the Income Inclusion Rule (IIR) and Domestic Top-up Tax (DTT) under the BEPS 2.0 framework demonstrate a forward-looking approach to ensure tax compliance and fairness. These measures reaffirm Singapore’s commitment to international tax standards while safeguarding its economic interests.
Transfer pricing highlights from the Singapore Budget 2024 include:
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
New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
China has been the world’s largest manufacturer for 14 years, producing one-third of global manufacturing output. In the Emerging Asia Manufacturing Index 2024, China ranks highest among eight emerging countries in the region. Challenges for these countries include global demand disparities affecting industrial output and export orders.
Known as the “World’s Factory”, China has held the title of the world’s largest manufacturer for 14 consecutive years, starting from 2010. Its factories churn out approximately one-third of the global manufacturing output, a testament to its industrial might and capacity.
China’s dominant role as the world’s sole manufacturing power is reaffirmed in Dezan Shira & Associates’ Emerging Asia Manufacturing Index 2024 report (“EAMI 2024”), in which China secures the top spot among eight emerging countries in the Asia-Pacific region. The other seven economies are India, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Bangladesh.
The EAMI 2024 aims to assess the potential of these eight economies, navigate the risks, and pinpoint specific factors affecting the manufacturing landscape.
In this article, we delve into the key findings of the EAMI 2024 report and navigate China’s advantages and disadvantages in the manufacturing sector, placing them within the Asia-Pacific comparative context.
Emerging Asia countries face various challenges, especially in the current phase of increased volatility, uncertainty, complexity, and ambiguity (VUCA). One notable challenge is the impact of global demand disparities on the manufacturing sector, affecting industrial output and export orders.
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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- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
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