China
No dialogue between US, China defense chiefs in Singapore
A major regional security forum is underway in Singapore amid rising tensions in the South China Sea and East Asia, with in-person communication between defense chiefs from China and the United States remaining shuttered.
U.S. Defense Secretary Lloyd Austin had invited his Chinese counterpart, General Li Shangfu, to a bilateral meeting on the sidelines of the Shangri-La Dialogue in Singapore but the Chinese minister declined.
China’s decision is “unfortunate,” Austin said before arriving in the city state which has been hosting the annual event since 2002.
“You’ve heard me talk a number of times about the importance of countries with large, with significant capabilities, being able to talk to each other so you can manage crises and prevent things from spiralling out of control unnecessarily,” the U.S. defense secretary was quoted by news agencies as saying in Tokyo on Thursday.
“I would welcome any opportunity to engage with Li,” Austin said. “I think defense departments should be talking to each other on a routine basis or should have open channels for communications.”
For its part, China said that “dialogue cannot be without principles, and communication cannot be without a bottom line.”
Chinese Ministry of Defense spokesperson Tan Kefei said on Wednesday that the “current difficulties in the exchanges between the two militaries are entirely on the U.S. side.”
“On the one hand, the U.S. keeps saying that it wants to strengthen communication, but on the other hand, it ignores China’s concerns and artificially creates obstacles, seriously undermining the mutual trust between the two militaries,” Tan said.
The spokesperson did not elaborate on the obstacles but the U.S. Indo Pacific Command on Tuesday accused a Chinese J-16 fighter jet of performing an “unnecessarily aggressive” maneuver during the intercept of a U.S. Air Force RC-135 reconnaissance aircraft last week.
Beijing responded by calling it a hyped-up accusation, saying the U.S. spy plane “made an intrusion” into the Chinese army’s training zone in the South China Sea and its “aerial forces … professionally dealt with the situation in accordance with law and regulation.”
The Chinese defense minister, who took office in March, has been on the U.S. sanction list since 2018 for the purchase of SU-35 combat aircrafts and S-400 missile system-related equipment from Russia.
This could be another obstacle for an official meeting between Gen. Li and Secretary Austin.
Focal points
In 2019 the then-Minister of National Defense Wei Fenghe had his first in-person meeting with his U.S. counterpart Patrick Shanahan.
Wei also met with Lloyd Austin on the sidelines of Shangri-La Dialogue in 2022 when the forum returned after a couple years of disruption because of COVID-19.
Analysts say the absence of a U.S.-China bilateral meeting reflects the difficulties in the military-to-military relations between the two powers.
Yet “the U.S.-China competition is a focal point of the Shangri-La Dialogue, since it shapes so much of the dynamics in the region and beyond,” said Ian Chong, an associate professor of political science at the National University of Singapore (NUS).
The Global Times, a sister publication of the Chinese Communist Party’s mouthpiece People’s Daily, in an editorial on Thursday said that the ball is in the U.S. court.
“Frankly speaking, the outcome and effectiveness of the Shangri-La Dialogue largely depend on how the U.S. behaves during the conference,” it warned, accusing the U.S. of always trying “to take center stage and set the tone” for the forum.
There are still hopes that, despite the rhetoric, the two delegations from the United States and China would meet “unofficially under a low-key format”, said Hoang Thi Ha, Co-ordinator for the Regional Strategic and Political Studies Program at the ISEAS – Yusof Ishak Institute in Singapore.
Southeast Asian countries “are keen to see whether the U.S. and China would renew their communication especially via the military and defense channel,” Ha told RFA.
“It is in everybody’s interest that Washington and Beijing tone down their hostile posturing towards each other,” the analyst said.
Li Shangfu and Lloyd Austin, separately, plan to make speeches at the forum. Li will speak of China’s new security initiatives and Austin on the U.S. leadership in the Indo-Pacific.
During the three days of the Shangri-La Dialogue, 600 delegates from 49 countries will examine the complex security environment in the Asia-Pacific and the war in Ukraine.
“Other topics of discussion are the situation in Myanmar and the war in Ukraine, especially when it comes to the issue of food security,” NUS’s Ian Chong told RFA.
In his opinion, the rising tension in the Taiwan Strait will also be discussed, as “any Taiwan crisis will affect the region quite directly because of supply chains, shipping lanes, air lanes, and submarine cables going to Northeast Asia.”
“The problem, however, is that Taiwan has only a token quasi-official presence at the forum,” the analyst said, noting that China, which considers Taiwan one of its provinces, would resolutely object to any official Taiwan attendance.
“More exposure to Taiwanese experts in the Shangri-La Dialogue certainly could provide deeper insights into the situations across Taiwan Strait,” said Norah Huang, research fellow from Taiwanese think tank Prospect Foundation.
The think tank’s president, Lai I-chung, is attending the forum as a guest of the organizer, the International Institute for Strategic Studies.
The Shangri-La Dialogue, in its 20 years, is “a unique meeting where ministers debate the region’s most pressing security challenges, engage in important bilateral talks and come up with fresh approaches together,” according to IISS.
Speakers at this year’s event include the ministers of defense from Germany, Australia, the U.K., Canada, Sweden, Japan, South Korea, Singapore, the Philippines, Indonesia and Cambodia.
Two key Southeast Asian players – Malaysia and Vietnam – are keeping…
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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
