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Singapore and China join forces with new green finance taskforce

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East Asia Forum

Abstract

Sustainable finance is gaining attention from investors and policymakers worldwide. While Europe has been at the forefront of regulating sustainable finance, East Asia is quickly catching up due to recent government initiatives and regulations. Countries like Singapore and China have embraced sustainable finance regulations, guiding their financial sectors towards eco-friendly and socially responsible ventures. Collaboration between Singapore and China has been elevated through the China-Singapore Green Finance Taskforce, aimed at strengthening cooperation in green and transition finance. The taskforce includes expert members from commercial banks, sovereign wealth funds, and regional banks, working together to boost investment in green technology and streamline sustainable financial instruments. This collaboration is expected to invigorate the sustainable finance market in the region.


Author: Stefanie Schacherer, Singapore Management University

Sustainable finance garners significant attention from global investors and policymakers. In recent years, Europe has led the way in regulating sustainable finance. But East Asia is catching up as sustainable investment surges due to recent government initiatives and regulations.

The regulatory landscape is pivotal, providing clarity for markets to flourish. Countries like Singapore and China have embraced new sustainable finance regulations, guiding the financial sector toward eco-friendly and socially responsible ventures. Fourteen Asian states and ASEAN have developed or are in the process of developing green taxonomies. China established its Green Bond Catalogue in 2015, while Singapore is currently finalising its forthcoming green taxonomy.

Building upon their sustainable finance policies and regulations, Singapore and China have elevated their collaborative efforts. In April 2023, the Monetary Authority of Singapore and the People’s Bank of China unveiled the China–Singapore Green Finance Taskforce — a seminal stride aimed at amplifying bilateral cooperation in green and transition finance across Singapore, China and East Asia. Comprising a public–private consortium of expert members including commercial banks, such as Singapore-based DBS, sovereign wealth funds and Chinese regional banks, the taskforce functions as a conduit for the exchange of best practices and knowledge.

This initiative aims to boost investment in green technology and promote decarbonisation by streamlining the issuance of sustainable financial instruments. The Singapore Exchange and China International Capital Corporation will jointly establish a workstream with the goal of fortifying connectivity within the sustainability bond market between the two nations. This endeavour encompasses the mutual issuance of — and access to — green and transition bond products across China and Singapore.

Collaborative efforts between the Metaverse Green Exchange and China Beijing Green Exchange are also integral to this facilitation. Their cooperative workstream will harness technology to expedite the adoption of sustainable finance, including piloting digital green bonds accompanied by carbon credits.

The hybrid and expert-based character of the taskforce should facilitate greater public–private sector collaboration in China and Singapore on concrete products and instruments. This will catalyse capital flows to support a credible and inclusive transition to low-carbon business activities.

Investing in sustainable finance products offers substantial long-term benefits. It provides investors with an opportunity to invest in infrastructure while also meeting their climate commitments. It also reduces any regulatory risks associated with investments that are not aligned with the transition. Facilitating the issuance of green bonds for sustainable projects and bolstering financing mechanisms are poised to invigorate the sustainable finance market in the region.

The taskforce will also collaborate on Singapore’s green…

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Business

China and the UK Resume Economic and Financial Discussions After Six-Year Break

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China and Britain resumed economic talks after six years, aiming to improve relations. Chancellor Reeves seeks cooperation but raises concerns over Russia’s support and Hong Kong’s civil liberties.


Resumption of Talks

Taipei, Taiwan (AP) — China and the United Kingdom have reignited economic discussions after a six-year pause, spurred by British Treasury Chief Rachel Reeves’ recent visit to Beijing. The Labour government aims to mend strained relations with China, the world’s second-largest economy. Reeves met with Chinese leaders and underscored the necessity for a "stable, pragmatic" partnership, emphasizing collaboration on mutual interests while maintaining transparency in disagreements.

Economic Collaboration

During her talks, Reeves sought to address key issues such as reducing economic support to Russia and advocating for basic rights in Hong Kong. Both nations signed agreements expected to infuse £600 million ($732 million) into the U.K. economy over the next five years. These agreements target crucial sectors including finance, with Reeves emphasizing that this renewed engagement may generate up to £1 billion for the U.K.

National Security Concerns

While seeking better ties, there are mounting concerns regarding national security and human rights abuses in China. Critics from the opposition have questioned the balance between economic opportunities and safeguarding Britain’s interests. Reeves acknowledged the importance of national security but highlighted the need for pragmatic relations with global partners, stating that ignoring China is not a viable option for the U.K.’s economic future.

Source : China and the UK restart economic and financial talks after a 6-year hiatus

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China

Indonesia Needs to Take a Critical Stance on China’s Global Order Vision

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During his visit to China, Indonesian President Prabowo secured $10 billion in investments and issued a Joint Statement, raising concerns about Indonesia’s neutrality amid China’s global vision and territorial claims.


Indonesian President’s Visit to China

During his visit to China from November 8 to 10, 2024, Indonesian President Prabowo Subianto secured a remarkable US$10 billion in investments and issued the Joint Statement on Advancing the Comprehensive Strategic Partnership. This document has raised eyebrows as it suggests alignment with China’s global vision, potentially undermining Indonesia’s traditionally impartial stance among major powers. Notably, it includes discussions on joint development in areas with overlapping territorial claims, despite Indonesia being a non-claimant in the contentious South China Sea.

Strengthening Bilateral Relations

President Prabowo considers China a significant partner, reflecting on centuries of bilateral collaboration. This visit highlights Indonesia’s commitment to enhancing cooperation across various sectors, including technology and green energy. China also pledged support for Prabowo’s free meal program, which is part of Indonesia’s larger Food Supplementation and School Feeding initiative, reinforcing the ties between the two nations.

Implications of the Joint Statement

The Joint Statement emphasized shared aspirations for the future but also raised concerns about Indonesia’s strategic positioning. By commending China’s narrative, particularly the concept of a "community with a shared future," Indonesia may inadvertently compromise its neutrality amid major power rivalries. Given the complexities surrounding this language, it is crucial for Indonesia to approach such statements carefully to uphold its independent foreign policy.

Source : Indonesia must be critical of China’s global order vision

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Cross-Border Data Transfers: New Draft Guidelines Clarify Certification for Personal Information Protection

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China’s draft measures for personal information protection in cross-border data transfers clarify certification procedures, eligibility, and requirements. Released by the Cyberspace Administration, they aim to enhance data governance and privacy, ensuring compliance and safeguarding personal information in international exchanges.


China’s new draft measures provide clarity on the certification process for personal information protection in cross-border data transfers (CBDT). Aimed at enhancing data governance, safeguarding privacy, and ensuring regulatory compliance, the draft measures outline eligibility criteria for applying the certification mechanism, specify the requirements, and detail the certification procedures.

On January 3, 2025, the Cyberspace Administration of China (CAC) issued a draft document titled Measures for the Certification of Personal Information Protection for Cross-Border Data Transfers (hereinafter, draft measures) for public consultation. The draft measures, comprising 20 detailed articles, outline a comprehensive framework for certifying the security and compliance of personal data transfers beyond China’s borders.

With the feedback deadline set for February 3, 2025, the draft measures represent a crucial step in China’s broader strategy to strengthen data governance, ensure cybersecurity, and address global concerns over the safety of cross-border information flows.

Article 3 of the draft measures defines “PI protection certification” in cross-border data transfers as the formal evaluation process carried out by bodies authorized by the State Administration for Market Regulation (SAMR).

These certification bodies are responsible for assessing the compliance of personal information processors with the requirements of secure cross-border data transfers. The certification ensures that processors—whether domestic or foreign—adhere to the stringent criteria set out in the regulations, thereby protecting individuals’ personal information while enabling international data exchanges. Certified entities must demonstrate their capacity to manage cross-border data transfers in compliance with the standards laid out by the CAC and SAMR.

The certification process not only verifies compliance but also serves as an assurance to the public and regulatory authorities that the certified processors meet the required data protection measures.

Moreover, the scope of “cross-border data transfers” encompasses several scenarios where personal information moves across national boundaries. These include:


This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in ChinaHong KongVietnamSingapore, and India . Readers may write to info@dezshira.com for more support.

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