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
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
