China
Philippines raises concerns with China about spiraling Taiwan tensions
The Philippines on Saturday raised concerns with China about soaring tensions related to neighbor Taiwan when the two countries’ top diplomats met in Manila.
The meeting between Chinese Foreign Minister Qin Gang and Foreign Secretary Enrique Manalo came amid heightened rhetoric over the Philippines recently granting the United States access to four additional military bases, two of them fronting Taiwan, which Beijing considers a renegade province.
“Manalo reaffirmed the Philippines’ adherence to the One China Policy, while at the same time expressing concern over the escalating tensions across the Taiwan Strait,” said a statement by the Department of Foreign Affairs (DFA) after a meeting of the two officials.
Manalo also told his Chinese counterpart that the Philippines continues to pursue “an independent foreign policy, which seeks to ensure stability and prosperity in the region,” according to a report by BenarNews, an affiliate of Radio Free Asia.
For his part, China’s Qin reminded Manalo of the “promises” the two nations have made to each other, in what appeared to be an oblique reference to the One China policy, which Beijing’s envoy to the Philippines brought up last week in not so delicate a fashion.
Qin called the situation “‘fluid’ and turbulent,” without elaborating.
“[A] healthy and stable China-Philippines relationship is not only meeting the aspirations of our two peoples, but also in line with the common aspirations of regional countries,” he said.
“We need to work together to continue our tradition of friendship, deepen mutually beneficial cooperation, and properly resolve our differences in the spirit of credibility, consultation, and dialogue, and keep our promises to each other so as to bring more benefits to our two countries and people and inject greater positive energy to the peace and stability of this region and the whole world,” Qin added.
Analysts had called expanded access to Philippine military bases “central” to Washington’s aim to deter any plan by Beijing to attack Taiwan.
China has said it amounted to interference.
But the latest controversy involving China was the warning of its envoy here to the Philippines.
Ambassador Huang Xilian had strongly advised Manila to “unequivocally oppose” Taiwan’s independence rather than fan the flames of conflict by offering the U.S. military additional access to bases. He also commented on the safety of 150,000 Filipino workers in Taiwan.
The Philippine government and opposition slammed the Chinese envoy for his statements on Manila’s policy on Taiwan and its workers on the neighboring island, saying they will not brook any attempts at intimidation by Beijing.
Philippine President Ferdinand Marcos Jr. later downplayed the Chinese envoy’s comments noting the latter’s speech released in English may have been “lost in translation.”
On Saturday Marcos met with China’s Qin and called the meeting “useful.”
“Some of the pronouncements that have been made recently by our two countries and many other countries might be misinterpreted,” according to a statement released by Marcos’ office.
“So today it was really useful that we were able to speak with Minister Qin Gang, the Foreign Minister of China, so we can talk directly to one another and iron things out.”
South China Sea issue
Qin’s visit came even as the Philippines is hosting more than 12,000 American soldiers for the largest-ever joint exercises between the two long-time allies.
The exercises were for “maritime defense, territorial defense, [and] coastal defense,” a Filipino military official said last month, amid seemingly hostile actions by Beijing in the South China Sea, parts of which both countries claim.
During the meeting Saturday with the top Chinese diplomat, his Philippine counterpart Manalo raised the issue of the disputed waterway.
“Our leaders have agreed that our differences in the West Philippine Sea are not the sum total of our relations,” he said, referring to the part of the South China Sea that lies within the exclusive economic zone of the Philippines.
“These differences should not prevent us from seeking ways of managing them effectively, especially with respect to the enjoyment of rights of Filipinos, especially our fisherfolk.”
Manila has said that China has ramped up its presence in the Philippine Exclusive Economic Zone in the disputed sea and increased harassment of Filipino fishermen in recent years.
At a high-level foreign department consultation last month on the sea dispute, the government reminded China that intimidation and coercion have no place in solving the issue.
While there have been significant developments already after the bilateral consultative meeting, Manalo noted that much still needed to be done.
Philippine President Marcos on Saturday referred to the dispute saying more communication would help.
“As to the conflicts, we agreed to establish more lines of communications so that any event that occurs in the West Philippine Sea that involves China and the Philippines can immediately be resolved,” he said.
“So we are currently working on that and are awaiting the Chinese response and we are confident that these issues would be worked out that would be mutually beneficial for both our nations.”
Manila had recently lodged a complaint about the swarming of more than 40 Chinese fishing boats, which were escorted by a Chinese Coast Guard ship and a People’s Liberation Army (PLA) Navy ship near Pag-asa (Thitu), one of the Philippine-occupied islands in the disputed waters.
In February, a CCG ship allegedly pointed a laser towards a Philippine Coast Guard vessel in Ayungin Shoal (Second Thomas Shoal).
Still, as the Philippines’ Foreign Secretary Manalo noted, China has remained the country’s top trading partner over the past few years, even amid the COVID-19 pandemic. And when Marcos visited Beijing in January, he took home investment pledges worth about U.S. $22.8 billion.
Meanwhile, Marcos is scheduled to make his second visit within a year to the U.S. on May 1, when he is set to meet with U.S. President Joe Biden in the White House.
The two leaders are expected to discuss deepening political and economic ties,…
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China
New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
The sixth revision of China’s Company Law is the most extensive amendment in history, impacting foreign invested enterprises with stricter rules on capital injection and corporate governance. Most FIEs must align with the New Company Law by July 1, 2024, with a deadline of December 31, 2024 for adjustments. Contact Dezan Shira & Associates for assistance.
The sixth revision of China’s Company Law represents the most extensive amendment in its history. From stricter capital injection rules to enhanced corporate governance, the changes introduced in the New Company Law have far-reaching implications for businesses, including foreign invested enterprises (FIEs) operating in or entering the China market.
Since January 1, 2020, the Company Law has governed both wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs), following the enactment of the Foreign Investment Law (FIL). Most FIEs must align with the provisions of the New Company Law from July 1, 2024, while those established before January 1, 2020 have bit more time for adjustments due to the five-year grace period provided by the FIL. The final deadline for their alignment is December 31, 2024.
In this publication, we guide foreign investors through the implications of the New Company Law for existing and new FIEs and relevant stakeholders. We begin with an overview of the revision’s background and objectives, followed by a summary of key changes. Our in-depth analysis, from a foreign stakeholder perspective, illuminates the practical implications. Lastly, we explore tax impacts alongside the revisions, demonstrating how the New Company Law may shape future business transactions and arrangements.
If you or your company require assistance with Company Law adjustments in China, please do not hesitate to contact Dezan Shira & Associates. For more information, feel free to reach us via email at china@dezshira.com.
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
Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
The Lingang New Area in Shanghai has launched China’s first Cross-Border Data Service Center to facilitate data export for companies in Shanghai. The center will help with applications, data catalogs, and management, aiming to provide legal and safe cross-border data transfer mechanisms.
The Lingang New Area in Shanghai’s Pilot Free Trade Zone has launched a new cross-border data service center to provide administrative and consulting services to companies in Shanghai that need to export data out of China. The service center will help facilitate data export by accepting applications from companies for data export projects and is tasked with formulating and implementing data catalogs to facilitate data export in the area. The Shanghai cross-border data service center will provide services to companies across the whole city.
The Lingang New Area in the Shanghai Pilot Free Trade Zone has launched China’s first Cross-Border Data Service Center (the “service center”). The service center, which is jointly operated by the Cybersecurity Administration of China (CAC) and the local government, aims to further facilitate legal, safe, and convenient cross-border data transfer (CBDT) mechanisms for companies.
The service center will not only serve companies in the Lingang New Area but is also open to companies across Shanghai, and will act as an administrative service center specializing in CBDT.
In January 2024, the local government showcased a set of trial measures for the “classified and hierarchical” management of CBDT in the Lingang New Area. The measures, which have not yet been released to the public, seek to facilitate CBDT from the area by dividing data for cross-border transfer into three different risk categories: core, important, and general data.
The local government also pledged to release two data catalogs: a “general data” catalog, which will include types of data that can be transferred freely out of the Lingang New Area, and an “important data” catalog, which will be subject to restrictions. According to Zong Liang, an evaluation expert at the service center, the first draft of the general data catalog has been completed and is being submitted to the relevant superior departments for review.
In March 2024, the CAC released the final version of a set of regulations significantly facilitating CBDT for companies in the country. The new regulations increase the limits on the volume of PI that a company can handle before it is required to undergo additional compliance procedures, provide exemptions from the compliance procedures, and clarify the handling of important data.
Also in March, China released a new set of technical standards stipulating the rules for classifying three different types of data – core, important, and general data. Importantly, the standards provide guidelines for regulators and companies to identify what is considered “important” data. This means they will act as a reference for companies and regulators when assessing the types of data that can be exported, including FTZs such as the Lingang New Area.
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
A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
The application procedures for business visas to China have been simplified, with most foreigners now able to apply for an M/F visa using only an invitation letter from a Chinese company. Some countries are eligible for visa-free entry. However, a Verification Letter of Invitation may still be needed in certain cases. Consult the local Chinese embassy for confirmation.
In light of recent developments, the application procedures for business visas to China have undergone substantial simplification. Most foreigners can now apply for an M/F visa using only the invitation letter issued by a Chinese company. Additionally, citizens of certain countries are eligible to enter China without a visa and stay for up to 144 hours or even 15 days.
However, it’s important to note that some applicants may still need to apply for a “Verification Letter of Invitation (邀请核实单)” when applying for an M/F visa to China. In this article, we will introduce what a Verification Letter of Invitation is, who needs to apply for it, and the potential risks.
It’s important to note that in most cases, the invitation letter provided by the inviting unit (whether a public entity or a company) is sufficient for M/F visa applications. The Verification Letter for Invitation is only required when the Chinese embassies or consulates in certain countries specifically ask for the document.
Meanwhile, it is also essential to note that obtaining a Verification Letter for Invitation does not guarantee visa approval. The final decision on granting a visa rests with the Chinese embassy abroad, based on the specific circumstances of the applicant.
Based on current information, foreign applicants in Sri Lanka and most Middle East countries – such as Turkey, Iran, Afghanistan, Syria, Pakistan, and so on – need to submit a Verification Letter for Invitation when they apply for a visa to China.
That said, a Verification Letter for Invitation might not be required in a few Middle East countries, such as Saudi Arabia. Therefore, we suggest that foreign applicants consult with their the local Chinese embassy or consulate to confirm in advance.
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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- Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
- A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
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