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
Q1 2024 Brief on Transfer Pricing in Asia
Indonesia’s Ministry of Finance released Regulation No. 172 of 2023 on transfer pricing, consolidating various guidelines. The Directorate General of Taxes focuses on compliance, expanded arm’s length principle, and substance checks. Singapore’s Budget 2024 addresses economic challenges, operational costs, and sustainability, implementing global tax reforms like the Income Inclusion Rule and Domestic Top-up Tax.
Indonesia’s Ministry of Finance (MoF) has released Regulation No. 172 of 2023 (“PMK-172”), which prevails as a unified transfer pricing guideline. PMK-172 consolidates various transfer pricing matters that were previously covered under separate regulations, including the application of the arm’s length principle, transfer pricing documentation requirements, transfer pricing adjustments, Mutual Agreement Procedure (“MAP”), and Advance Pricing Agreements (“APA”).
The Indonesian Directorate General of Taxes (DGT) has continued to focus on compliance with the ex-ante principle, the expanded scope of transactions subject to the arm’s length principle, and the reinforcement of substance checks as part of the preliminary stage, indicating the DGT’s expectation of meticulous and well-supported transfer pricing analyses conducted by taxpayers.
In conclusion, PMK-172 reflects the Indonesian government’s commitment to addressing some of the most controversial transfer pricing issues and promoting clarity and certainty. While it brings new opportunities, it also presents challenges. Taxpayers are strongly advised to evaluate the implications of these new guidelines on their businesses in Indonesia to navigate this transformative regulatory landscape successfully.
In a significant move to bolster economic resilience and sustainability, Singapore’s Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, unveiled the ambitious Singapore Budget 2024 on February 16, 2024. Amidst global economic fluctuations and a pressing climate crisis, the Budget strategically addresses the dual challenges of rising operational costs and the imperative for sustainable development, marking a pivotal step towards fortifying Singapore’s position as a competitive and green economy.
In anticipation of global tax reforms, Singapore’s proactive steps to implement the Income Inclusion Rule (IIR) and Domestic Top-up Tax (DTT) under the BEPS 2.0 framework demonstrate a forward-looking approach to ensure tax compliance and fairness. These measures reaffirm Singapore’s commitment to international tax standards while safeguarding its economic interests.
Transfer pricing highlights from the Singapore Budget 2024 include:
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
New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
China has been the world’s largest manufacturer for 14 years, producing one-third of global manufacturing output. In the Emerging Asia Manufacturing Index 2024, China ranks highest among eight emerging countries in the region. Challenges for these countries include global demand disparities affecting industrial output and export orders.
Known as the “World’s Factory”, China has held the title of the world’s largest manufacturer for 14 consecutive years, starting from 2010. Its factories churn out approximately one-third of the global manufacturing output, a testament to its industrial might and capacity.
China’s dominant role as the world’s sole manufacturing power is reaffirmed in Dezan Shira & Associates’ Emerging Asia Manufacturing Index 2024 report (“EAMI 2024”), in which China secures the top spot among eight emerging countries in the Asia-Pacific region. The other seven economies are India, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Bangladesh.
The EAMI 2024 aims to assess the potential of these eight economies, navigate the risks, and pinpoint specific factors affecting the manufacturing landscape.
In this article, we delve into the key findings of the EAMI 2024 report and navigate China’s advantages and disadvantages in the manufacturing sector, placing them within the Asia-Pacific comparative context.
Emerging Asia countries face various challenges, especially in the current phase of increased volatility, uncertainty, complexity, and ambiguity (VUCA). One notable challenge is the impact of global demand disparities on the manufacturing sector, affecting industrial output and export orders.
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
Is journalist Vicky Xu preparing to return to China?
Chinese social media influencers have recently claimed that prominent Chinese-born Australian journalist Vicky Xu had posted a message saying she planned to return to China.
There is no evidence for this. The source did not provide evidence to support the claim, and Xu herself later confirmed to AFCL that she has no such plans.
Currently working as an analyst at the Australian Strategic Policy Institute, or ASPI, Xu has previously written for both the Australian Broadcasting Corporation, or ABC, and The New York Times.
A Chinese language netizen on X initially claimed on March 31 that the changing geopolitical relations between Sydney and Beijing had caused Xu to become an expendable asset and that she had posted a message expressing a strong desire to return to China. An illegible, blurred photo of the supposed message accompanied the post.
This claim was retweeted by a widely followed influencer on the popular Chinese social media site Weibo one day later, who additionally commented that Xu was a “traitor” who had been abandoned by Australian media.
Following the publication of an ASPI article in 2021 which exposed forced labor conditions in Xinjiang co-authored by Xu, the journalist was labeled “morally bankrupt” and “anti-China” by the Chinese state owned media outlet Global Times and subjected to an influx of threatening messages and digital abuse, eventually forcing her to temporarily close several of her social media accounts.
AFCL found that neither Xu’s active X nor LinkedIn account has any mention of her supposed return to China, and received the following response from Xu herself about the rumor:
“I can confirm that I don’t have plans to go back to China. I think if I do go back I’ll most definitely be detained or imprisoned – so the only career I’ll be having is probably going to be prison labor or something like that, which wouldn’t be ideal.”
Neither a keyword search nor reverse image search on the photo attached to the original X post turned up any text from Xu supporting the netizens’ claims.
Translated by Shen Ke. Edited by Shen Ke and Malcolm Foster.
Asia Fact Check Lab (AFCL) was established to counter disinformation in today’s complex media environment. We publish fact-checks, media-watches and in-depth reports that aim to sharpen and deepen our readers’ understanding of current affairs and public issues. If you like our content, you can also follow us on Facebook, Instagram and X.
Read the rest of this article here >>> Is journalist Vicky Xu preparing to return to China?
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