China
Myanmar’s junta leader and shadow gov’t both praise China at Lunar New Year Festival
In a reflection of the influential role that China plays in the region, leaders from both Myanmar’s ruling military and the anti-junta National Unity Government – essentially enemies – praised China over the Lunar New Year weekend, competing for their neighbor’s blessing.
Junta chief Sr. Gen. Min Aung Hlaing said that China had been an important and good neighbor, while the shadow Unity government sent a message through diplomatic channels saying that it could “guarantee that the fruits of their revolution’s success will not harm the interests of regional countries, including China, but give even more benefits.”
China is an important economic partner and shares a border with Myanmar. It also wields a powerful veto on the five-member U.N. Security Council, which both the junta and the shadow NUG hope Beijing will leverage to their advantage.
China’s U.N. delegation, for example, has prevented meaningful sanctions from being imposed on Myanmar since the military took control in a February 2021 coup, or hold the junta accountable for human rights violations against its own people.
Analysts said that the NUG appears grateful that China did not veto the Dec. 21 Security Council resolution calling for the release of political prisoners by the junta, including imprisoned former leader Aung San Suu Kyi.
The resolution also called on the army to stop violence against civilians and implement the five-point consensus for peace in Myanmar adopted by the Association of Southeast Asian Nations.
Trying to keep China from supporting opponent
Rather than seeking an outright partnership with Beijing, both sides may be trying to keep China from joining their opposition, political analyst Ye Tun said. “It is not bad for them if China at least stays neutral,” he said. “They are trying to have China not be on the opposing side.”
Thein Tun Oo, executive director of the pro-junta Thayninga Institute for Strategic Studies accused the NUG of pulling “a political stunt by thanking China for not vetoing the Security Council resolution. China knows very well who is ruling Myanmar and who to associate with.”
According to data from the Institute for Strategic Studies, which monitors China-Myanmar relations, three new trade channels have emerged between the two countries since the coup.
One trade route links China’s Sichuan province through Yangon and to Singapore, connecting Chinese exports to infrastructure to the Indian Ocean. A second route links Chongqing province with Laos, Thailand, and Myanmar, while the third is a water route connecting Guangxi province through ports in the Bay of Beibu in the South China Sea.
The institute said that the new economic channels will enable China to solidify its long-awaited access to the Indian Ocean and spread its geopolitical influence across Myanmar.
China is Myanmar’s largest trading partner since the coup, with Chinese trade accounting for more than U.S.$4.4 billion out of Myanmar’s total U.S.$17 billion between April and September.
Hla Kyaw Zaw, a China-based analyst of China-Myanmar relations, views China’s policy as a multifaceted approach.
“China is gradually cooling down the hot areas of Burma. But what they can’t persuade is the military,” he said. “China’s diplomacy is usually done quietly. It doesn’t hurt other parties by not doing things like objecting or condemning. Its approach is multifaceted, and it will deal with the junta, NUG, and ethnic armed groups along the border as well.”
RFA contacted the NUG Foreign Minister and President’s offices for comment on the NUG’s relationship with China but did not hear back.
Translated by Kyaw Min Htun. Edited by Nawar Nemeh and Malcolm Foster.
Read the rest of this article here >>> Myanmar’s junta leader and shadow gov’t both praise China at Lunar New Year Festival
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
