China
Asia Fact Check Lab: Did the U.S. steal oil from Syria as China claims?
In Brief
Over the past few months, China has repeatedly accused the U.S. of “illegally stealing” oil from Syria in an act of “banditry.”
Asia Fact Check Lab (AFCL) found that the accusations echo those made by official Syrian media reports. The Syrian government under Bashar al-Assad has no control over the northeast area of the country, which is occupied by the anti-government coalition known as the Syrian Democratic Forces (SDF). U.S. and international media have reported that a U.S. company had secured an oil deal in the area, but it did so with the approval of the SDF, which helped to oust ISIS terrorist forces that previously controlled the oil production there. The U.S. currently authorizes non-governmental organizations to purchase petroleum in Syria, but the products have to stay in Syria for non-profit use.
In Depth
“The illegal plundering of natural resources in Syria by foreign troops must stop immediately,” Dai Bing, China’s ambassador to the U.N., said during the U.N. Security Council briefing on Syria, according to a Jan. 26 report by Chinese state media Global Times. The article said that U.S. troops have been “slammed” for “stealing” oil from Syria.
China has repeatedly accused the U.S. of taking Syria’s oil in recent months. At a Jan. 17 press conference for China’s Ministry of Foreign Affairs, a China Central Television (CCTV) reporter quoted Syrian state news reports that the “illegal” U.S. garrison in the country had smuggled 53 tankers of oil from the northeast province of al-Hasakah into northern Iraq. Foreign Ministry spokesperson Wang Wenbin has described the actions as “illegal looting” and “banditry” and said that the U.S. is exacerbating the humanitarian disaster in Syria.
Where do these allegations of stealing oil come from?
The information cited recently by the CCTV reporter in the Jan. 17 press conference followed a Jan. 14 report by the Syrian Arab News Agency. The SANA report cites anonymous local sources accusing the U.S. military of stealing 53 tankers of oil. The short report provides few details and only a single photo of an oil tanker. No explanation or sourcing accompanied the photo, and no mention was made of the agreement between the U.S. company and SDF.
Reporters from official Chinese media outlets quoted similar SANA reports that featured general accusations without any additional context at previous press conferences. The SANA reports never cite the location where the theft allegedly occurred and sometimes appear to reuse the same photo.
Is the U.S. getting oil in Syria?
Credible media outlets report that U.S. companies have extracted oil in northeast Syria. But Chinese claims that the U.S. is stealing Syrian resources lack sufficient context.
The SDF occupies the northeastern part of the country, independent of the Syrian government led by Bashar al-Assad. In 2020, Delta Crescent Energy, a little known U.S. oil company, signed a contract with the SDF that allowed the company to extract oil. The State Department has not disclosed many details about the deal, but a report by U.S. media outlet Politico said that some of the oil was refined to use in the region, with the rest exported to Iraq and Turkey.
The Syrian government has strongly criticized the agreement, saying that the U.S. is taking the country’s oil without its permission. State-sponsored media in Russia and Iran have also described the U.S. actions as the “theft” and “plunder” of Syrian resources.
U.S. and international media outlets and think tanks have covered the oil deal Delta signed with the SDF in 2020. CNN reported the deal was signed in secret and that Delta Crescent was created by former political and military officials during the Trump administration. News reports note that the agreement was approved by the U.S. in order to keep Russia, Syria’s Assad government and ISIS terrorist forces that had controlled the region from benefiting from oil production there.
A story recently published by Esquire revealed how Delta Crescent was first awarded the contract and the company’s ensuing difficulties with the Biden administration. The company’s license expired in 2021, with reports at the time indicating that the White House planned to abandon support for oil operations in Syria.
“Syrian oil is for the Syrian people. The United States does not own, control or manage any of those resources, nor do we wish to,” a U.S. State Department spokesperson told AFCL. The spokesperson said the department does not comment on the operations of private companies there.
The spokesperson told AFCL that SDF will continue to deny ISIS access to oil and gas revenue in northeast Syria, which it previously used to fund its terror campaign.
The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC), which first authorized Delta Crescent’s oil deal in Syria, now only allows NGOs to purchase refined petroleum products from Syria. The products have to be used in Syria for non-profit purposes. Oil extraction is not an authorized activity, according to the current Code of Federal Regulations and Syria General License issued by OFAC in 2022.
Asia Fact Check Lab (AFCL) is a new branch of RFA, established to counter disinformation in today’s complex media environment. Our journalists publish both daily and special reports that aim to sharpen and deepen our readers’ understanding of public issues.
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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
