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…
Read the rest of this article here >>> 10 years on, Belt and Road goals shift with China’s ambitions
China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
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
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 Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
- Is journalist Vicky Xu preparing to return to China?
- Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
- China Unveils Plan to Upgrade Industrial Equipment
