China
Taiwan’s pro-China speaker choice stirs fears of deeper Beijing influence
The former pro-China mayor of Taiwan’s Kaohsiung has been elected speaker of the Legislative Yuan sparking local civic groups’ protests to “reject China’s choice”.
Han Kuo-yu of the main opposition and Beijing-friendly Kuomintang (KMT) emerged victorious after two rounds of voting on Thursday, an outcome that could challenge the ruling and pro-independent Democratic Progressive Party (DPP) which last month won the presidential election. Neither of the two parties, along with the Taiwan People’s Party (TPP), had more than half of the seats of the legislature – DPP with 51 seats, KMT 52, and TPP eight.
By law, the Speaker is to remain neutral in Parliament, but plays a crucial role in determining which bills are put up for discussion in the legislature that controls spending.
Speaking to reporters after his win, Han thanked the KMT and independent legislators, as well as urged the public to look forward to a new and reform-driven legislature that will create happiness for the Taiwanese people.
The DPP issued a statement to congratulate the new speaker, and emphasized that “in the future, the three parties will jointly bear the responsibility for national progress.”
Hours before the voting for speakership began, a coalition of about ten civic and non-governmental organizations gathered outside the legislature complex to protest against the voting for “China’s preferred candidate.”
“Kuo-yu becomes Speaker and introduces the Communist Party. We reject China’s choice. We don’t want China’s choice,” read one placard.
“Taiwan is the Taiwan of Taiwanese people, the Taiwan of the world, not the Taiwan of the Chinese Communist Party [CCP]. Stop lying to young people, and don’t go back to the old politics,” Kao Fan-hsi, leader of the rally, told the crowd.
Separately, the Taiwan Green Party, one of civic groups, stated: “Letting a person who agrees with the CCP’s ‘1992 consensus’ become the speaker of Taiwan’s parliament is probably the biggest breakthrough for the CCP to infiltrate and unite Taiwan. It is undoubtedly a humiliation and threat to Taiwan’s democracy.”
The “1992 consensus” refers to a tacit understanding reached in that year between the then-ruling KMT and Beijing. Both sides acknowledge that there is only “one China,” with each side free to interpret what that “one China” refers to.
Han seen as a “national security risk”
Elected as Kaohsiung’s mayor in late 2018, Han swiftly visited Hong Kong, Macau, and mainland China in March of the following year. His meeting with Wang Zhimin, the then-director of China’s Liaison Office for Hong Kong and Macau, sparked significant controversy within Taiwan’s political spheres.
Before the speaker’s vote on Thursday, president-elect Lai raised concerns about how Han’s election and potential meetings between the island’s mayors and Chinese officials would affect Taiwan’s international image.
After being sworn in, Han addressed Lai’s concerns directly, saying: “Don’t be overly nervous and don’t overinterpret.”
Han also affirmed his commitment to Taiwan, promising to uphold the constitution, remain neutral, and empower the Legislative Yuan to fulfill its duties and responsibilities.
Taiwan Association of University Professors President Chen Li-Fu described Han’s win as “an unprecedented congressional crisis.”
He believes that China had hoped for Han to be elected as Han has visited the Liaison Office and it would be no surprise if the speaker eventually visits or delivers a speech at the Chinese People’s Political Consultative Conference. The CPPCC is the CCP’s political advisory body.
“China’s preparations for the threat of force against Taiwan and its annexation ambitions have never stopped,” Chen told Radio Free Asia.
“In the future, when Han presides over discussions in the legislature, he doesn’t even need to object, but only has to be passive and uncooperative – the domestic submarine production or the US military procurement funds will be delayed, or initiate a technical delay of a few years until the United States no longer wants to sell, we’d achieve the goal.”
Although Taiwan only has 12 diplomatic allies, Chen stressed that the self-governing island, which Beijing considers its own, has maintained very close congressional exchanges in recent years with democratic countries including the United States, Japan, Australia, and in Europe.
Taiwan needs to leverage this second-track and alternate congressional diplomacy to increase its international space, he noted.
Translated by RFA staff. Edited by Taejun Kang and Mike Firn.
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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.
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- 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
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