China
Taiwan’s president-elect hopes US can continue to support the island
Updated Jan. 15, 2024, 12:10 a.m. ET
Taiwan’s president-elect Lai Ching-te told a visiting delegation of former senior U.S. officials on Monday that he hopes the United States can continue to support Taiwan.
Lai added his administration will continue to defend peace and stability in the Taiwan Strait, according to media reports.
Lai from the ruling Democratic Progressive Party (DPP) became Taiwan’s president-elect on Saturday, beating Beijing-favored Hou Yu-ih of the Kuomintang (KMT) and Ko Wen-je of the Taiwan’s People Party (TPP).
His remarks came during the meeting with the high-level U.S. delegation’s three-day trip to the self-governed island to exchange views on bilateral issues and prospects.
The American Institute in Taiwan (AIT), the U.S.’s de facto embassy in the island, said in a statement on Sunday a delegation made up of former senior officials, including former National Security Advisor Stephen J. Hadley and former Deputy Secretary of State James B. Steinberg, would be in Taipei and would meet with “a range of leading political figures” on Monday.
The delegation also met incumbent President Tsai Ing-wen at the presidential office on Monday morning, where Hadley conveyed the American people’s congratulations on the election.
“Taiwan’s democracy has set a shining example to the world,” Hadley said, in comments released by Tsai’s office.
“We are honored to have the opportunity to meet with you today to reaffirm that the American commitment to Taiwan is rock solid, principled and bipartisan and that the United States stands with its friends,” said Hadley, adding that he looked forward to meeting Lai and other political leaders.
“We look forward to continuity in the relationship between Taiwan and the United States under the new administration, and for common efforts to preserve cross-strait peace and stability.”
Lai, the incumbent vice-president, has vowed to continue outgoing President Tsai’s efforts to bolster diplomatic ties with democratic allies and protect the island from “threats and intimidation” by China, which claims Taiwan as its own.
Key strategic allies of Taiwan extended congratulations following his triumph and the elections. Antony Blinken, the U.S. Secretary of State, commended Taiwan for its “strong democratic system and electoral process,” while Japan acclaimed the “seamless execution” of the democratic election.
However, Beijing said the DPP “did not represent mainstream public opinion,” referring to Lai garnering only 40% of the vote and the DPP failing to retain a majority in the legislature, adding that the result would not stop “the inevitable trend of China’s reunification.”
The Chinese foreign ministry on Sunday rebuked the U.S. State Department’s statement on the election as “seriously” in breach of the one-China principle, sending a wrong signal to the “Taiwan independence separatist forces”.
The ministry’s statement reiterated the “Taiwan question” – which Beijing calls the political foundation of bilateral relations – as the first red line that must not be crossed in US-China ties.
Separately, China’s mouthpiece publication, Global Times, warned on Sunday that China has “both the strength and determination to resolve the Taiwan question once and for all once Lai crosses the red line,” noting that the initiative on solving the Taiwan question firmly lies with the Chinese mainland.
The AIT said in a statement on Sunday the unofficial visit will “convey congratulations from the American people to Taiwan on its successful elections, support for Taiwan’s continued prosperity and growth, and our longstanding interest in cross-Strait peace and stability.”
Taiwan’s Ministry of Foreign Affairs also said on the same day that the delegation symbolizes bipartisan government support for Taiwan and demonstrates that democratic values are key factors in “propelling Taiwan towards the international stage and embracing the world,” according to the ministry.
When asked to comment on Taiwan’s election during a press briefing on Saturday, U.S. President Joe Biden reiterated Washington’s position of not supporting Taiwan independence.
In contrast to Beijing’s “one China principle,” which holds that Taiwan is an inalienable part of China and that it should be governed from Beijing, Washington espouses a “one China policy” that takes no position on sovereignty over Taiwan. While acknowledging Beijing’s position, Washington does not take a stance on its validity.
Edited by Elaine Chan and Mike Firn.
Updated to add remarks made by the president-elect Lai Ching-te and former U.S. National Security Advisor Stephen J. Hadley.
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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
Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
China’s standards authority has released draft standards for personal information protection compliance audits, potentially making them mandatory for companies in 2023. The audits will require companies to undergo annual or biennial checks based on the number of people’s information they handle. The draft standards outline the audit process and requirements, seeking public feedback until September 11, 2024.
China’s standards authority has released draft standards for conducting personal information protection compliance audits. Regular compliance audits to ensure compliance with personal information protection regulations may become a requirement for companies in China under draft measures released in 2023. We explain the audit processes and requirements proposed in the draft standards.
The Standardization Administration of China (SAC) has released a set of draft standards for conducting personal information (PI) protection compliance audits. Under draft measures released by the Cyberspace Administration of China (CAC) in August 2023, companies that process the PI of people in China are required to undergo regular compliance audits.
Specifically, companies that process the PI of over one million people must undergo a compliance audit at least once a year, while companies that process the PI of under one million people must carry out an audit at least once every two years.
While the draft measures stipulate the obligations of the auditing body and the audit scope, the draft standards outline the specific audit process, including evidence management and permissions of the audit organization, as well as the professional and ethical requirements of auditors.
The Secretariat of the National Cybersecurity Standardization Technical Committee is soliciting public feedback on the draft standards until September 11, 2024. Public comment on the draft measures released in August last year closed on September 2, 2023, but no updated document has yet been released.
The draft standards outline five stages of the PI protection compliance audit: audit preparation, implementation, reporting, problem rectification, and archiving management.
Auditors are required to accurately document identified security issues in the audit working papers, ensuring that the records are comprehensive, clear, and conclusive, reflecting the audit plan and its execution, as well as all relevant findings and recommendations.
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 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
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