China
What Macron makes of the Taiwan Litmus Test
French President Emmanuel Macron triggered a series of geopolitical debates after returning from his state visit to China on 9 April 2023. Strong criticism was provoked by his remarks that Europe should reinforce its strategic autonomy and avoid becoming either a ‘vassal’ of the United States, or a follower which adapts to an ‘American rhythm and a Chinese overreaction’ over Taiwan.
Authors: David Camroux and Earl Wang, CERI Sciences Po
Beijing naturally grasped this opportunity to applaud President Macron’s vision by denouncing the United States as often ‘coercing others’. President Macron clarified his take on Taiwan three days later, emphasising support for the status quo in the Taiwan Strait which he said has been an unchanged ‘French and European position’.
The caustic reaction to President Macron’s remarks was due to the timing. While his remarks were being made, Chinese military exercises had been launched around Taiwan following Taiwan’s President Tsai Ing-wen’s meeting with US House Speaker Kevin McCarthy in California.
It would seem that President Macron did not follow the advice of the experts he consulted — and quite probably his own foreign ministry — prior to his visit. They had argued that reference needed to be made to the preservation of peace and stability across the Taiwan Strait. It was only days later in remarks by French Foreign Minister Catherine Colonna that the subject was mentioned.
The state visit had two purposes, one diplomatic and the other economic. Macron sought to encourage Chinese President Xi Jinping ‘to bring Russia back to its senses and everyone back to the negotiating table’ over the war in Ukraine. Xi merely promised that he would contact Ukrainian President Volodymyr Zelensky when ‘conditions and the timing are right’ — carried out on 26 April 2023.
The other purpose of the visit was economic. Accompanied by his Economic and Finance Minister, Bruno Le Maire, and 60 top French executives Macron sought to promote and protect French investment in China at a time when an EU Comprehensive Agreement on Investment with Beijing has become a dead letter. The shared European mantra in relations with China today is that of ‘de-risking’. This keyword has been underlined by European Commission President Ursula von der Leyen and echoed by US National Security Advisor Jake Sullivan. Transatlantic differences on China are perhaps more apparent than real.
Macron’s remarks can also be contextualised as the French and European promotion of multilateralism in a multipolar global system. European political leaders do not see China as a threat to a unipolar world, but the ‘partner–competitor–systemic rival’ triptych. Paris views Washington to be making Taiwan a litmus test on which side a country is found within the great power rivalry between China under Xi’s rule and the United States with bipartisanship on its China strategy. In the US Congress — and in much of the Anglosphere — China hawks have made declared commitments towards Taiwan a test of allegiance.
The emergence of China as another great power is not seen in Europe as an existential threat. Europe is a post-imperial power unlike the United States of the China hawks or Xi’s China. European support for multipolarity and for strategic autonomy within the transatlantic alliance, like ‘de-risking’, is grounded in a cold-blooded assessment of the nature of European power grounded in an absence of ‘imperial desire’.
President Macron has the possibility of taking a step back on Taiwan — being the ‘good cop’ — because other leaders of EU institutions and Member States can help take on a more assertive stance. German Foreign Minister Annalena Baerbock, a week after Macron’s visit, confronted her Chinese counterpart Qin Gang with the ‘horror scenario of a military escalation in the Taiwan Strait’.
The EU’s High Representative of Foreign Affairs and Security Policy and Vice President of the European Commission Josep Borrell also stated the importance of the Taiwan Strait. He synthesised the seemingly different European positions on China in an op-ed published on 23 April 2023. Aside from expressing the European commitment to its One China policy, he underlined that the situation in and around Taiwan has direct impact on European interests. He further called on EU countries’ naval forces to patrol the Taiwan Strait — in his words, an ’absolutely crucial’ area — to uphold the principle of freedom of navigation.
Fortunately for Macron and Borrell,…
China
China Unveils Plan to Upgrade Industrial Equipment
China unveiled a comprehensive action plan for upgrading industrial equipment, with a focus on driving technological innovation and economic growth. The plan, released on April 9, 2024, aims to enhance competitiveness and sustainability within the manufacturing sector through extensive investment and regulatory support.
China announced an ambitious action plan for industrial equipment upgrading, which aims to drive technological innovation and economic growth through extensive investment and regulatory support.
On April 9, 2024, China’s Ministry of Industry and Information Technology (MIIT) and six other departments jointly released a notice introducing the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector (hereafter referred to as the “action plan”).
Finalized earlier on March 23, 2024, this comprehensive action plan addresses critical issues related to technological innovation and economic development. It reflects China’s proactive stance in enhancing competitiveness and sustainability within its manufacturing sector. The initiative underscores the recognition of industrial equipment upgrading as a top policy priority.
The scope of China’s action plan to upgrade industrial equipment in manufacturing, is extensive, covering various aspects such as:
In line with China’s ambitious goals for industrial modernization and sustainable development, the action plan outlines several key objectives aimed at driving substantial advancements in the industrial sector by 2027.
These objectives encompass a wide range of areas, from increasing investment to enhancing digitalization and promoting innovation, including:
The objectives and key actions proposed in the action plan are summarized below.
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
China deepens engagement with new Indonesian president as top diplomat visits Jakarta
China’s top diplomat met the outgoing Indonesian president and his successor in Jakarta on Thursday, as Beijing deepened its engagement with future leader Prabowo Subianto, amid a competition for regional influence with the United States.
The meeting with Chinese Foreign Minister Wang Yi was part of a joint commitment to advance the partnership between the two countries, said Prabowo, who visited Beijing in early April after his landslide win in the February general election.
“It is a great honor for me to welcome him [Wang] today. Thank you for the kind reception I received in Beijing a few weeks ago,” Prabowo said, according to an Indonesian defense ministry statement.
Chinese President Xi Jinping had invited Prabowo to visit, and the latter accepting the invitation raised eyebrows in Indonesia because no president-elect had made a foreign visit such as this one without being sworn in. China is Indonesia’s largest trading partner.
Wang, too, mentioned Prabowo’s Beijing trip, according to the same statement.
“We really appreciate and welcome Defense Minister Prabowo’s visit to China,” he said.
“We are committed to continuing to increase bilateral cooperation with Indonesia, both in the defense sector and other fields such as economic, social and cultural.”
Wang is scheduled to go to East Nusa Tenggara province on Friday to attend the China-Indonesia High-Level Dialogue Cooperation Mechanism, a process to support more effective bilateral cooperation. His Jakarta stop was the first of a six-day tour that also includes Cambodia and Papua New Guinea.
Prabowo and Wang discussed cooperation in the defense industry and sector, with potential measures such as educational and training collaboration, as well as joint exercises, said Brig. Gen. Edwin Adrian Sumantha, spokesman at the Indonesian defense ministry.
In fact, the ministry statement said that “China is Indonesia’s close partner and has had close bilateral relations, especially in the defense sector, for a long time.”
Of course, China has also invested billions of U.S. dollars in infrastructure projects in Indonesia, including as part of Beijing’s Belt and Road Initiative – the Jakarta-Bandung high-speed train, which began commercial operations in October 2023, is one such BRI project.
The two countries have drawn closer during outgoing President Joko “Jokowi” Widodo’s two terms, and Beijing would like that to continue as the U.S. tries to catch up with China’s gargantuan influence in Southeast Asia, analysts have said.
Indonesia, China call for ceasefire in Gaza
Both Indonesia and China shared the same position on Israel’s devastating attacks on Gaza, said Wang’s Indonesian counterpart, Retno Marsudi.
Israel’s air and ground strikes have killed more than 33,000 Palestinians following the Oct. 7 attack on the Jewish state by Palestinian militant group Hamas, which killed around 1,100 Israelis.
“We … have the same view regarding the importance of a ceasefire in Gaza and resolving the Palestinian problem fairly through two state solutions,” Retno told reporters in a joint press conference after meeting with Wang.
“Indonesia will support full Palestinian membership in the U.N. Middle East stability will not be realized without resolving the Palestinian issue.”
For his part, Wang slammed Washington for repeatedly vetoing resolutions calling for Israel to end the attacks on the Palestinian territory it occupies.
“The conflict in Gaza has lasted for half a year and caused a rare humanitarian tragedy in the 21st century,” Wang told the media at the same press conference, according to the Associated Press.
“The United Nations Security Council responded to the call of the international community and continued to review the resolution draft on the cease-fire in Gaza, but it was repeatedly vetoed by the United States.”
The conflict in the Middle East offered a strategic opportunity for China to further expand its influence in Southeast Asia, said Muhamad Arif, a lecturer in international relations at the University of Indonesia.
“China is trying to strengthen its position as a key player in the region,” Arief told BenarNews.
China could present an alternative approach to the conflict in Gaza, he said, which may find approval in Southeast Asia’s largest country, Indonesia, and other Mulism-majority states in the region, such as Malaysia and Brunei.
BenarNews is an RFA-affiliated online news organization.
Read the rest of this article here >>> China deepens engagement with new Indonesian president as top diplomat visits Jakarta
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.
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- China deepens engagement with new Indonesian president as top diplomat visits Jakarta
- New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
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- A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
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