China
China’s fisheries policy makes a belated shift to sustainability
Authors: Hongzhou Zhang, RSIS and Genevieve Donnellon-May, University of Oxford
In response to growing demand for aquatic products, China introduced its 14th Five-Year National Fisheries Development Plan in 2022. Under the plan, the 2025 target for the country’s aquatic production is 69 million tonnes, suggesting that its enormous fishing industry will continue to expand.
But underneath the general trend of continuous expansion, China’s fishing industry has been undergoing major structural shifts. These shifts will likely be further encouraged by new policies introduced by the government, creating far-reaching consequences for regional and global governance of fisheries.
Limiting wild catch and reducing vessel numbers have been at the heart of China’s fisheries policy since 2016, when provinces were told how many vessels to take off the water. By 2020, 40,000 working vessels had been taken off Chinese coastal waters, while the total catch was reduced to 9.5 million tonnes. The limit for marine catches in Chinese waters will remain at 10 million tonnes, and the number of fishing vessels will be further reduced under the 2022 plan.
Meanwhile, China has started piloting systems that determine total allowable catches and allocate these across vessels. China aims to stabilise its total distance water fishing output at 2.3 million tonnes, the same level as 2020, while also strictly controlling the size of its distant water fishing fleet.
The decline in the number of fishing vessels has also been accompanied by fishing workforce shrinking. In 2021, China’s fishing workshops dropped to 11.8 million, a decrease from 14.1 million in 2015. In addition, with the phaseout of fishing fuel subsidies, which had been a major contributor to the phenomenal expansion of China’s fishing fleet and overfishing by Chinese fishing vessels, the decline in China’s marine catch will likely be irreversible.
Following the rapid development of agriculture in China, the country became the world’s leading aquaculture producer in 1989 and remains so today. In recent years, factors like industrialisation, urbanisation, and stricter environmental policies have resulted in a reduction in traditional fish farming areas. In response, marine ranching is poised to play an even bigger role in China’s seafood supplies.
Marine ranching is a type of aquaculture developed in the 1970s which involves placing artificial reefs, including cement frames and old iron boats, at fixed sites in an enclosed section of ocean or in open sea to attract fish, shrimps, crabs, shellfish and other marine life to forage, rest and reproduce.
In recent years, the development of marine ranching has received strong government support. The National Mariculture Development Plan (2017–2025) published by the Ministry of Agriculture and Rural Affairs stated that China planned to build 178 national-level demonstration marine ranches, later raised to 200 in 2022. In a speech in March 2023, Chinese President Xi Jinping stressed that the expansion of marine ranching was necessary to help solve China’s food security concerns.
In recent years, China has experienced a major transition in its fishery trade, moving from a leading processor of fish raw material for re-export into a country that increasingly sources high-quality aquatic products for domestic consumption. Although China has long been the world’s top fish exporter, most exports are actually imported and then processed and re-exported to other countries.
But rising domestic demand for high-quality seafood brought on by China’s expanding middle class and policy measures taken by the central government to facilitate fishing imports have resulted in soaring imports and declining re-exports. In 2022, for the first time in decades, China registered a fishery trade deficit, with fishery imports totalling US$23.7 billion and fishery exports during the same period totalling US$23 billion.
Given China’s limited natural resources, Beijing has always prioritised the development of science and technology as a potential solution to managing its food supplies.
Currently, China’s aquaculture cultivation is dependent on ‘trash fish’ (fish too small for human consumption) for feed. To address this issue, Chinese researchers are searching for replacements. In an encouraging sign, trials of compound feed as an alternative to trash fish have achieved a substitution rate of 77 per cent.
At the same time, high-tech fish farming is being encouraged through the development of ‘smart’ fish farming, where new…
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.
- China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- 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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