China
Beijing tests Manila’s nerves in disputed reef
China was once again trying to block Philippine ships from delivering supplies to the troops stationed at the Second Thomas Shoal in the South China Sea on Friday.
Earlier in the day, “China Coast Guard (CCG) and Chinese Maritime Militia (CMM) vessels recklessly harassed, blocked, executed dangerous maneuvers in another attempt to illegally impede or obstruct a routine resupply and rotation mission to BRP Sierra Madre (LS 57) at Ayungin Shoal (Second Thomas Shoal),” the National Task Force for the West Philippine Sea said in a statement. The West Philippine Sea is the name that Filipinos use for waters claimed by Manila in the South China Sea.
“CCG vessel 5203 deployed water cannon against Philippine supply vessel M/L Kalayaan,” it said. M/L, or motor launch, implies a small-sized, motor-powered boat.
The Kalayaan and another supply boat, the Unaizah Mae 1, were “also subjected to extremely reckless and dangerous harassment at close proximity” by Chinese vessels inside the shoal’s lagoon during their approach to BRP Sierra Madre, said the Philippine National Task Force.
“Nonetheless, both supply boats were able to successfully reach LS 57 (BRP Sierra Madre),” it said.
“We condemn, once again, China’s latest unprovoked acts of coercion and dangerous maneuvers … that has put the lives of our people at risk.”
Manila deliberately ran the World War II-era Sierra Madre aground in 1999 to serve as its outpost at the shoal and has to dispatch ships on a regular basis to deliver fresh supplies to the military personnel there.
The Philippines’ rotation and resupply (RoRe) missions have recently been increasingly impeded and blocked by Chinese ships.
In a graphic provided by Ray Powell from the U.S. Gordian Knot Center for National Security Innovation, Philippine Coast Guard ships accompanying the two supply boats were surrounded by a large number of Chinese vessels.
“In total, 24 Chinese ships were involved in the incident, including four Coast Guard ships. The rest were maritime militia ships,” Powell said.
Continuing blockade
“Beijing is testing Manila’s nerves,” said Malcolm Davis, a defense analyst at the Australian Strategic Policy Institute (ASPI).
“China will keep on conducting such blockades with the hope that Manila will give up its RoRe missions but it won’t happen,” Davis told Radio Free Asia.
When and how the United States, the Philippines’ treaty ally, will get involved remains to be seen, according to the analyst. By a mutual defense treaty, Washington is obliged to defend its ally in the case the latter is being attacked.
The U.S. has repeatedly said that Article IV of the 1951 U.S.-Philippines Mutual Defense Treaty “extends to armed attacks on Philippine armed forces, public vessels, and aircraft – including those of its Coast Guard – anywhere in the South China Sea.”
The Chinese Coast Guard quickly issued a statement calling Manila’s mission “illegal.”
Spokesperson Gan Yu said that “two small transport ships and three coast guard ships from the Philippines entered the waters adjacent to Ren’ai Reef (Chinese name for Second Thomas Shoal) in China’s Nansha (Spratly) Islands without permission from the Chinese government.”
“The Chinese Coast Guard follows Philippine ships in accordance with the law, takes control measures, and makes temporary special arrangements for the Philippines to transport food and other necessary daily supplies,” Gan said.
“The Philippines’ actions violate China’s territorial sovereignty, violate the Declaration on the Conduct of Parties in the South China Sea, and violate its own commitments,” he said, “We urge the Philippines to immediately stop its infringing actions.”
For its part, Manila said the Philippine Embassy in China “has demarched the Chinese foreign ministry and protested” against China’s actions.
As of Nov. 7, the Philippines has made 58 diplomatic protests against what it sees as China’s violations of its sovereignty in the South China Sea.
Last month Manila summoned the Chinese ambassador to the Philippines to protest over two similar incidents, one of which led to a small collision of ships.
Second Thomas Shoal is about 200 kilometers (124 miles) from the Philippine island of Palawan, and more than 1,000 kilometers from China’s Hainan island. It is claimed by the Philippines, China, Vietnam and Taiwan, but is located inside the Philippines’ exclusive economic zone (EEZ).
Edited by Mike Firn and Elaine Chan.
BenarNews is an RFA-affiliated online news organization.
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China
Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
Companies in China must navigate compliance, trading, and reporting within the CCER framework, impacting operations and strategic objectives. The program focuses on afforestation, solar, wind power, and mangrove creation, offering opportunities for innovation and revenue streams while ensuring transparency and accuracy. The Ministry of Ecology and Environment oversees the program.
As companies navigate the complexities of compliance, trading, and reporting within the CCER framework, they must also contend with the broader implications for their operations, finances, and strategic objectives.
This article explores the multifaceted impact of the CCER program on companies operating in China, examining both the opportunities for innovation and growth, as well as the potential risks and compliance considerations.
Initially, the CCER will focus on four sectors: afforestation, solar thermal power, offshore wind power, and mangrove vegetation creation. Companies operating within these sectors can register their accredited carbon reduction credits in the CCER system for trading purposes. These sectors were chosen due to their reliance on carbon credit sales for profitability. For instance, offshore wind power generation, as more costly than onshore alternatives, stands to benefit from additional revenue streams facilitated by CCER transactions.
Currently, primary buyers are expected to be high-emission enterprises seeking to offset their excess emissions and companies aiming to demonstrate corporate social responsibility by contributing to environmental conservation. Eventually, the program aims to allow individuals to purchase credits to offset their carbon footprints. Unlike the mandatory national ETS, the revamped CCER scheme permits any enterprise to buy carbon credits, thereby expanding the market scope.
The Ministry of Ecology and Environment (MEE) oversees the CCER program, having assumed responsibility for climate change initiatives from the National Development and Reform Commission (NDRC) in 2018. Verification agencies and project operators are mandated to ensure transparency and accuracy in disclosing project details and carbon reduction practices.
On the second day after the launch on January 23, the first transaction in China’s voluntary carbon market saw the China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and gas producer, purchase 250,000 tons of carbon credits to offset its emissions.
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 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.
- Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
- 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
