China
10 years on, Belt and Road goals shift with China’s ambitions
A decade ago, amid much fanfare, Chinese President Xi Jinping launched the Belt and Road program, a grand plan to build a global infrastructure and supply chains that would connect China to the rest of the world in a modern and many-pronged Silk Road – and hypothetically benefit everyone involved.
Next month, Beijing will host the third Belt and Road Forum for International Cooperation, with confirmed attendance from a number of world leaders and representatives from 90 countries, state news agency Xinhua reported.
What started out as a way to boost trade ties, secure energy supplies and invest in global infrastructure has now branched out to include digital, health, cultural, security, and sustainable development projects, some of which have been dogged by labor issues and cost overruns.
Playing off the motif of the ancient trade route that linked China to the Mideast and Europe, Its components are many, and include the Digital Silk Road, the Silk Road on Ice, the Healthy Silk Road, the Space Silk Road, and the Green Silk Road.
In fact, today almost all of China’s overseas cooperation projects could be classified as part of the Belt and Road Initiative. Xi has termed it the “project of the century.”
Critics of how China uses its rising power are less sanguine. The United States has accused China of “debt diplomacy” – trapping nations with financial liabilities for major infrastructure projects they can ill-afford and which might be leveraged for Beijing’s political benefit.
$1 Trillion in investment
The forum comes four years after the last Belt and Road summit in 2019, and is part of China’s bid to show off the program’s achievements to the international community after a decade in operation.
The program has sparked some US$1 trillion of investments, foreign ministry spokesman Wang Wenbin told a recent news conference. Around 83% of China’s diplomatic allies and nearly 80% of the 193 UN member states have gotten involved.
Over the past decade, China has signed more than 200 cooperation agreements with 152 countries and 32 international organizations under the plan.
China now spends twice as much on international development finance as the United States, according to the U.S.-based organization AidData, with most of that increase occurring during the past 10 years.
There has been a political benefit as well: Some of those deals have led partner countries to publicly support Chinese Communist Party propaganda on Xinjiang, where China has persecuted 11 million Uyghurs and other Turkic minorities and sought to erase their culture.
What’s the goal?
Researchers have been collating vast amounts of data and official sources to try to answer questions about the purpose of the Belt and Road — does it fulfill China’s economic, diplomatic or strategic ambitions?
The answer is all of the above.
It facilitates the offshoring of China’s production capacity, offers a powerful tool for the country’s diplomats and is also a key plank in Beijing’s geostrategic framework.
It expands China’s global influence and promotes Xi Jinping’s ultimate vision of creating a China-centered global order.
And with the decoupling of China’s flagging economy from that of the United States, and China’s exclusion from key technology supply chains, China appears to need the Belt and Road Initiative more than ever.
Radio Free Asia is marking the 10th anniversary of the Belt and Road with a series of features about how the plan has evolved over the past decade, and its impact on the countries and people it touches.
For example, China has been dialing back investment in overseas infrastructure projects, while boosting it in the digital sector.
The country’s homegrown global navigation satellite system Beidou now spans 165 capital cities around the world, providing broader coverage than GPS created by the United States.
Huawei, which has been widely boycotted by governments in Europe and the United States, built 70% of the 4G networks currently in operation in Africa.
Exporting surveillance platforms
Meanwhile, China has continued to export surveillance platforms for policing and domestic security to at least 80 countries around the world.
The technology sector has become a hotly contested battleground in China’s global strategic plan, which includes exporting its brand of digital authoritarianism, while competing for a share of future markets.
Globally, 2.9 billion people still lack access to the internet, and China has set its sights on the digital divide, hoping to gain the support of more countries by gaining a foothold in emerging markets, where it can position itself as the digital standard-setter.
Indonesia – the fourth most populous nation on the planet – is one of those markets. Nearly half of its 270 million people are under the age of 30, making it uncharted territory for the digital economy.
Yet Chinese telecoms giant Huawei is already charting that territory, offering cheaply built infrastructure, personnel training and government publicity services.
Radio Free Asia has been examining some of the concerns and potential threats posed by China’s monopolistic practices in the region.
China’s digital presence can also be felt across a number of large-scale regional infrastructure projects.
The China-Laos high-speed railway doesn’t just run on Chinese-gauge tracks with Chinese-made locomotives and rolling stock: it also uses Chinese technology in its ID-card verification system and security checkpoints.
Resistance
Some countries and leaders have tried to resist the “China model,” including former Micronesian President David Panuelo.
In an open letter published two months before he left office in May 2023, Panuelo said China had used a combination of…
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China
China Unveils Measures to Enhance Hotel Accommodation for Foreign Workers
China’s new measures aim to simplify hotel accommodations for overseas travelers by removing qualification barriers and improving service standards, payment convenience, and registration processes. This addresses challenges faced by foreign guests and supports China’s goals of high-level openness and inbound tourism growth, following complaints from foreign travelers.
China introduced new measures aiming to simplify hotel accommodations for overseas travelers by removing qualification barriers and enhancing service standards, payment convenience, and registration processes. These changes address previous challenges faced by foreign guests and support China’s broader goals of high-level openness and inbound tourism growth.
On July 25, 2024, the Ministry of Commerce (MOFCOM) and six other departments jointly issued the Notice on Several Measures to Facilitate Accommodation for Overseas Personnel in High-Level Service and Opening Up (The Notice), to address the difficulties faced by inbound overseas travelers regarding hotel accommodation.
This follows up on several foreign travelers from Nigeria and the United Kingdom who left messages on the Chinese government website, reflecting that they were refused when attempting to check in at hotels in China.
To solve the issues flagged by overseas travelers, the Notice proposed accommodation facilitation measures in the following eight aspects: operating in compliance with the law, enhancing reception capacity, strengthening industry self-discipline, leveraging platform roles, optimizing registration management, ensuring smooth service channels, improving payment convenience, and fostering a friendly atmosphere.
We summarize the details of the proposed measures below:
Foreign travelers often encounter difficulties when attempting to check into hotels in China. Reasons for hotel refusals include not having the necessary qualifications for foreign guests or not knowing how to input information into the system.
In China, there used to be a rule that only foreign-related hotels, or “涉外酒店” (shè wài jiǔdiàn) can accommodate foreigners. Such hotels refers to accommodation facilities such as hotels, guesthouses, apartments, and resorts that have been approved by various levels of business administration and public security departments to accommodate foreigners, overseas Chinese, Hong Kong and Macau compatriots, and Taiwanese.
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 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 Unveils Measures to Enhance Hotel Accommodation for Foreign Workers
- 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
