China
China’s space success is ready to launch — with or without foreign partners
Author: Brian Waidelich, CNA
On 25 January 2023, Space News reported that the European Space Agency (ESA) no longer intends to send European astronauts to Tiangong, China’s newly completed space station. The report quoted the ESA Director General Josef Aschbacher saying that the agency was already ‘very busy’ with its International Space Station (ISS) commitments and that it currently lacked both the budgetary and political ‘green light’ to engage with China’s space station.
The Director General’s remarks come several years after the stall of efforts to prepare European astronauts for flights on China’s space station. This had been a major development following decades of cooperation between the two space agencies.
In 2016, a Chinese astronaut participated in an ESA astronaut training course. The next year, two European astronauts carried out sea survival training with their Chinese counterparts. But after 2017, the budding human spaceflight cooperation between the two sides hit a snag.
The assertion that budgetary constraints are holding the ESA back from participating in Tiangong’s mission has its merits. As pointed out by Eric Berger, the senior space editor at Ars Technica, ESA funding is less than one-third of NASA’s. The European agency must be choosier about how it uses its limited resources.
But politics undoubtedly exerted the greatest influence on the ESA’s decision. For years, European countries have been reconsidering the nature of their relations with China amid growing concerns over human rights, technology security and intensifying strategic competition between Washington and Beijing. The pace of those shifting views was quickened following the outbreak of Russia’s war in Ukraine.
China, while claiming to be impartial to the conflict, has consistently issued official statements and media reports with pro-Russian narratives and has expanded its economic ties with Russia amid Western countries’ economic sanctions on Moscow. Although Beijing has not yet provided lethal military aid to Russia, China’s companies have supported Russia with ‘nonlethal assistance,’ according to US officials. And China’s military has participated in large-scale exercises and patrols with Russian armed forces aimed at improving their interoperability and deterrence signalling. At a time when Europe and China are supporting opposite sides of a conflict that has been likened to a superpower proxy war, sending European astronauts to Tiangong would be awkward at best.
The ESA Director General’s remarks, while annoying to Beijing, were almost certainly not unexpected. During a press conference in April 2022, Chinese Foreign Ministry Spokesperson Wang Wenbin dodged a direct answer when asked whether any foreign astronauts would enter China’s space station. In the vaguely worded reply, the spokesperson said that foreign astronauts are ‘welcome to visit’.
While it is likely an unwelcome development for Beijing, it is highly improbable that the absence of European astronauts on Tiangong will have any notable effect on the space station’s operations or on China’s expansion into space more broadly. China has invested enormous sums into its manned space program since the 1990s. Its reported space budget is second only to the United States. It is seeking to become the world’s pre-eminent space power by mid-century.
Unlike the ISS, China has built and managed Tiangong without depending on other countries for funds or personnel. According to China’s official news agency Xinhua, Chinese space station developers ‘have been adhering to self-reliance and independent innovation’, ‘developed a large number of core technologies’ and achieved complete localisation of ‘key components’.
Even if China’s space station does not host European astronauts any time soon, researchers from Europe and other countries may proceed with plans to use Tiangong as an alternative to the competitive spots for scientific experiments on the ISS.
In 2019, China — in collaboration with the ESA and the United Nations Office for Outer Space Affairs — selected nine projects from 17 countries to be implemented on Tiangong. Most of these projects were apparently designed to be conducted in space by Chinese astronauts, with ground support from other countries’ researchers. According to China Daily, there had only been requests from several of the 17 countries to send their own astronauts to run these experiments on the space station.
China understands the benefits of space cooperation as…
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
