China
China’s ambiguous mediation role in Ukraine

Author: Alexander Korolev, UNSW
After a year of diplomatic inactivity towards the war in Ukraine, the Chinese government has made demonstrable attempts to look like a peacemaker. But while these moves indicate a change in its behaviour, there is little reason to anticipate that China’s efforts will end the war.
China’s 12-point ‘peace plan’ and Chinese President Xi Jinping’s direct phone call to Ukrainian President Volodymyr Zelensky on 26 April 2023, though met with scepticism and criticism in the West, led the international community to believe that China might be able to move the needle far enough to bring the Ukraine war closer to a solution or at least some sort of peace process.
But neither Russia nor Ukraine is ready to negotiate and make concessions. While the conflict is mutually detrimental, there is no clear battlefield stalemate or strategic impasse that would necessitate immediate negotiations. Neither Ukraine nor Russia is exhausted enough to engage in negotiations, with both sides digging in for a long haul.
Beijing’s relative success in brokering a Saudi–Iran agreement should not be extrapolated to the Ukraine war. In the Saudi–Iran case, a pre-established dialogue framework helped China’s late involvement. Iraq and Oman had done much of the substantive work before Beijing stepped in. Most importantly, given the power vacuum in the region, both Iran and Saudi Arabia were willing to reach an agreement with each other.
This does not apply to the case of Ukraine, where the irreconcilability of Kyiv’s and Moscow’s demands and the lack of a strong ‘give peace a chance’ camp in Europe make protracted war the most likely scenario. If China’s mediation attempts are driven by the desire to boost its status, there is a risk for Beijing that a failure to achieve a successful outcome will damage its credibility.
The conflict between Moscow and Kyiv has become an acute manifestation of global great power rivalry, an epicentre of the struggle for influence between Russia and the West rooted in long-term systemic trends.
The Russia–West stand-off in the post-Soviet space surfaced long before the Ukraine war. Soon after the August 2008 Russia–Georgia war, former Russian president Dmitri Medvedev stated that Moscow had demarcated a ‘traditional sphere of Russian interests’, to which then US vice president Joe Biden rebutted, ‘we will not recognise any nation having a sphere of influence’. Russia and the West ruled out any possibility of a positive-sum scenario involving Ukraine. This means that China must mediate not a Russia–Ukraine territorial dispute but a full-blown zero-sum confrontation between Russia and the West — a daunting task.
China’s own precarious position in great power politics and its deteriorating relations with the United States, aggravated by Beijing’s commitment to winning Taiwan back, make Beijing an unlikely candidate to solve tensions between Russia and the West. The crux of the problem is that Russia is China’s only great power ally, and China will rely on Russia in the event of a confrontation with the United States.
Unlike the United States and its allies, China does not want Russia to suffer a devastating defeat in Ukraine. Such a scenario would mean a triumph for the United States’ international order and global influence. This would deal a blow…
China
The Latest Updates on China’s Visa-Free Policies

China has fully reopened its borders, allowing international tourism to recover. Visa-free travel policies are reinstated, and visa fees for foreign travelers will be reduced by 25% from December 11, 2023, to December 31, 2024. China and Singapore are also pursuing a 30-day visa-free travel arrangement.
China has fully reopened its borders, promising recovery of international tourism and travel. Many of the visa-free travel policies that were in place prior to the pandemic have therefore come back into effect, enabling people from a wide range of countries to visit
UPDATE (December 8, 2023): On December 8, 2023, the Ministry of Foreign Affairs released the Notice on Temporary Reduction of Fees for Applying Visa to China. According to this notice, during the period from December 11, 2023, to December 31, 2024, China shall cut visa fees by 25 percent across the board for foreign travelers. For more details, please consult with your local Chinese embassy or consulate.
UPDATE (December 7, 2023): China and Singapore are seeking to establish a mutual 30-day visa-free travel arrangement to boost people exchanges between the two countries, according to Reuters. At the time of writing, no further details have been released regarding the timeline or the eligibility, requirement, and application procedures of this new arrangement. Click here for more information regarding this mutual 30-day visa-free travel between China and Singapore.
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
Analysis of UK Investments in China for 2023: Evaluating Deals, Values, M&A, and Investments

British Government underwent reshuffle with pro-China David Cameron as Foreign Minister. Possible mild rapprochement with Beijing. Analysis of UK investments in China this year reveals potential trends. Report includes unique Q1-Q3 data and predicts outlook for 2024.
By Chris Devonshire-Ellis & Henry Tillman
With a reshuffle in the British Government and ex-Prime Minister – and generally pro-China politician David Cameron now as the UK’s Foreign Minister, there have been early signs of a potential mild rapprochement in the British governments overall attitude towards Beijing.
But before people get carried away, we can look at what investments the UK has made into China this year – as investments made while anti-China politics have tended to be the norm are typically indicative of stronger trends. In this report I include unique data that has not previously been made public, and examine the Q1-Q3 investment trends to see what may lie ahead for 2024.
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
Ratings agency cuts China’s credit outlook

Financially strapped local governments and state-owned enterprises pose a risk to China’s future economic growth, the ratings agency Moody’s said today in a report downgrading the country’s credit outlook from stable to negative.
Growing evidence suggests that the central government will be required to shore up the debt-laden entities, creating “broad downside risks to China’s fiscal, economic and institutional strength,” Moody’s said.
Local governments are thought to have accumulated trillions of dollars of debt due to spending during the COVID pandemic and a loss of income due to a troubled real estate market.
Despite the challenges, Moody’s maintained China’s overall credit rating of A1, which it describes as low-risk though not the safest category of investment. Moody’s said the rating reflects its belief in the country’s “financial and institutional resources to manage the transition in an orderly fashion.”
“Its economy’s vast size and robust, albeit slowing, potential growth rate, support its high shock absorption capacity,” Moody’s said.
Even so, the outlook downgrade signals some concern about China’s future creditworthiness.
In a statement, China’s Foreign Ministry said it was disappointed in the ratings change and that Moody’s concerns about its growth and financial stability were “unnecessary.”
“In recent years, through the continuous efforts of relevant departments and local governments, China has established a system to prevent and resolve the risks of local government debt,” the ministry said. “The trend of disorderly and illegal borrowing by local governments has been initially curbed, and positive results have been achieved in the disposal of local government debt.”
Moody’s projects China’s annual growth rate will be 4% in 2024 and 2025 but average 3.8% from 2026 to 2030, at which time it might drop again to 3.5%.
Derek Scissors, the chief economist at China Beige Book, a firm that analyzes China’s economy for investors, said in an email that the downgrade was to be expected.
“It’s a recognition of long-standing conditions, not a new development,” said Scissors, who is also a senior fellow at the free-market think tank American Enterprise Institute in Washington. “I think growth will be faster than Moody’s thinks in 2024 and decelerate more than they think after that.”
Fees from local land sales account for nearly 40% of the revenue to local and regional governments. But China’s real-estate sector has been hit hard by overbuilding. One giant, Evergrande, defaulted under massive debt last year, triggering a broader real estate crisis.
Moody’s report said that “the downsizing of the property sector is a major structural shift in China’s growth drivers which is ongoing and could represent a more significant drag to China’s overall economic growth rate than currently assessed.”
Edited by Tara McKelvey
Read the rest of this article here >>> Ratings agency cuts China’s credit outlook