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Russia–Japan territorial disputes, divisive as ever

Author: Tsuneo Akaha, MIIS The Russia–Japan territorial dispute over the southern Kurils/Northern Territories is heating up again. Although the Cold War has long ended, Russian President Dmitry Medvedev’s visit to Kunashiri Island on 1 November 2010 prompted Japanese Prime Minister Naoto Kan to call it ‘an unforgivable outrage.’ Japan claims that the islands of Habomai, Shikotan, Kunashiri (Kunashir in Russian), and Etorofu (Iturup) are not part of the territories it surrendered in the 1951 San Francisco Peace Treaty. The peace accord, Japan claims, did not specify to whom the renounced territories would belong, and the Soviet Union (now Russia) could not and cannot base their sovereignty claims to the islands on a treaty the USSR refused to sign. Moscow and Tokyo agreed in their joint declaration of 1956, which restored their diplomatic relations, that the Soviet Union would return the disputed islands to Japan upon conclusion of a bilateral peace treaty. Both countries ratified the joint declaration. In 1991, the Japanese were encouraged when General Secretary Mikhail Gorbachev acknowledged that there was a territorial dispute between the two countries. They even became hopeful when the first Russian president, Boris Yeltsin, agreed in 1993 that the 1956 joint declaration was still valid. Since then, Japan has continued to insist that all of the disputed islands are inherent territory of Japan and Russia’s control of the islands is illegal. Moscow’s position is essentially that Japan has no claim to the territories because it surrendered the entire Kuril chain in the San Francisco peace treaty. The victorious Soviet Union, therefore, acquired the islands as well as the southern half of Sakhalin Island (the northern half was already Soviet territory before the Second World War) as justly deserved spoils of war — as agreed in the Yalta Conference among the allied leaders. In recent years, the Russian leadership has intensified their appeal to patriotism and used the islands issue to this end. On 7 July 2010, the Russian Duma passed legislation establishing 2 September as the day to commemorate the end of the Great Patriotic War; that date in 1945 being the day when Japan signed the instrument of surrender. On 28 September, President Medvedev and Chinese President Hu Jintao issued a joint statement commemorating the 65 th anniversary of the war and pledged further strengthening of the Sino–Russian strategic alliance. This was followed by the Russian president’s visit to Kunashiri Island, as noted above, and similar visits to the disputed territories by Defense Minister Anatoly Serdyukov, other key ministers and high-ranking officials. Ironically, the Russian leaders’ visits to the disputed islands demonstrate Moscow’s commitment to develop the long-neglected economy of the Russian Far East, including the southern Kurils; an effort in which Russia regards Japan as an important partner. Japan also sees mutual benefits in closer economic ties with Russia, particularly in the energy field. Although the eventual outcome of the territorial dispute is anybody’s guess, there is no question that the level of trust between Moscow and Tokyo must improve substantially if a mutually acceptable solution is to be reached. Several essential elements of trust-building efforts can be outlined. First, it is essential to improve and expand the relationship between the two governments so as to withstand the ups and downs of diplomatic tensions. The two countries need a more comprehensive engagement, particularly in the economic and social spheres, at both national and subnational levels, especially involving communities in the Russian Far East and northern and western regions of Japan. Second, Moscow and Tokyo should advance cooperation over transnational and global challenges; for example, nuclear proliferation, terrorism, climate change, public health (like HIV/AIDS and infectious diseases), alternative energy development, space exploration and new materials development. Third, both sides should encourage creative and innovative ideas that go beyond long-held perspectives which have proven ineffective. For one, Russia might consider returning the Habomais and Shikotan to Japan upon conclusion of a peace treaty, where the two sides commit to negotiating the status of the remaining islands. While the negotiations continued, Japan should offer assistance and encourage private investment in the development of the entire Northern Territories. Both Russians and Japanese might live side-by-side, with disputes between them to be settled in an arbitration board or a court of their choice. Finally, for any compromise to withstand inevitable criticisms at home, the political leaders in Moscow and Tokyo must build their credibility not on their ability to fan nationalism among their citizens but on their ability to ensure sustainable economic development and social stability. Professor Tsuneo Akaha is Professor of International Policy Studies and Director of the Center for East Asian Studies at the Monetary Institute of International Studies, California. China and its territorial disputes: One approach does not fit all China and its territorial disputes: One approach does not fit all Japan must acknowledge ‘territorial issue’ over islands

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Author: Tsuneo Akaha, MIIS

The Russia–Japan territorial dispute over the southern Kurils/Northern Territories is heating up again. Although the Cold War has long ended, Russian President Dmitry Medvedev’s visit to Kunashiri Island on 1 November 2010 prompted Japanese Prime Minister Naoto Kan to call it ‘an unforgivable outrage.’

Japan claims that the islands of Habomai, Shikotan, Kunashiri (Kunashir in Russian), and Etorofu (Iturup) are not part of the territories it surrendered in the 1951 San Francisco Peace Treaty. The peace accord, Japan claims, did not specify to whom the renounced territories would belong, and the Soviet Union (now Russia) could not and cannot base their sovereignty claims to the islands on a treaty the USSR refused to sign.

Moscow and Tokyo agreed in their joint declaration of 1956, which restored their diplomatic relations, that the Soviet Union would return the disputed islands to Japan upon conclusion of a bilateral peace treaty. Both countries ratified the joint declaration. In 1991, the Japanese were encouraged when General Secretary Mikhail Gorbachev acknowledged that there was a territorial dispute between the two countries. They even became hopeful when the first Russian president, Boris Yeltsin, agreed in 1993 that the 1956 joint declaration was still valid. Since then, Japan has continued to insist that all of the disputed islands are inherent territory of Japan and Russia’s control of the islands is illegal.

Moscow’s position is essentially that Japan has no claim to the territories because it surrendered the entire Kuril chain in the San Francisco peace treaty. The victorious Soviet Union, therefore, acquired the islands as well as the southern half of Sakhalin Island (the northern half was already Soviet territory before the Second World War) as justly deserved spoils of war — as agreed in the Yalta Conference among the allied leaders.

In recent years, the Russian leadership has intensified their appeal to patriotism and used the islands issue to this end. On 7 July 2010, the Russian Duma passed legislation establishing 2 September as the day to commemorate the end of the Great Patriotic War; that date in 1945 being the day when Japan signed the instrument of surrender. On 28 September, President Medvedev and Chinese President Hu Jintao issued a joint statement commemorating the 65th anniversary of the war and pledged further strengthening of the Sino–Russian strategic alliance. This was followed by the Russian president’s visit to Kunashiri Island, as noted above, and similar visits to the disputed territories by Defense Minister Anatoly Serdyukov, other key ministers and high-ranking officials.

Ironically, the Russian leaders’ visits to the disputed islands demonstrate Moscow’s commitment to develop the long-neglected economy of the Russian Far East, including the southern Kurils; an effort in which Russia regards Japan as an important partner. Japan also sees mutual benefits in closer economic ties with Russia, particularly in the energy field.

Although the eventual outcome of the territorial dispute is anybody’s guess, there is no question that the level of trust between Moscow and Tokyo must improve substantially if a mutually acceptable solution is to be reached. Several essential elements of trust-building efforts can be outlined.

First, it is essential to improve and expand the relationship between the two governments so as to withstand the ups and downs of diplomatic tensions. The two countries need a more comprehensive engagement, particularly in the economic and social spheres, at both national and subnational levels, especially involving communities in the Russian Far East and northern and western regions of Japan.

Second, Moscow and Tokyo should advance cooperation over transnational and global challenges; for example, nuclear proliferation, terrorism, climate change, public health (like HIV/AIDS and infectious diseases), alternative energy development, space exploration and new materials development.

Third, both sides should encourage creative and innovative ideas that go beyond long-held perspectives which have proven ineffective. For one, Russia might consider returning the Habomais and Shikotan to Japan upon conclusion of a peace treaty, where the two sides commit to negotiating the status of the remaining islands. While the negotiations continued, Japan should offer assistance and encourage private investment in the development of the entire Northern Territories. Both Russians and Japanese might live side-by-side, with disputes between them to be settled in an arbitration board or a court of their choice.

Finally, for any compromise to withstand inevitable criticisms at home, the political leaders in Moscow and Tokyo must build their credibility not on their ability to fan nationalism among their citizens but on their ability to ensure sustainable economic development and social stability.

Professor Tsuneo Akaha is Professor of International Policy Studies and Director of the Center for East Asian Studies at the Monetary Institute of International Studies, California.

  1. China and its territorial disputes: One approach does not fit all
  2. China and its territorial disputes: One approach does not fit all
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China Unveils Plan to Upgrade Industrial Equipment

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China unveiled a comprehensive action plan for upgrading industrial equipment, with a focus on driving technological innovation and economic growth. The plan, released on April 9, 2024, aims to enhance competitiveness and sustainability within the manufacturing sector through extensive investment and regulatory support.


China announced an ambitious action plan for industrial equipment upgrading, which aims to drive technological innovation and economic growth through extensive investment and regulatory support.

On April 9, 2024, China’s Ministry of Industry and Information Technology (MIIT) and six other departments jointly released a notice introducing the Implementation Plan for Promoting Equipment Renewal in the Industrial Sector (hereafter referred to as the “action plan”).

Finalized earlier on March 23, 2024, this comprehensive action plan addresses critical issues related to technological innovation and economic development. It reflects China’s proactive stance in enhancing competitiveness and sustainability within its manufacturing sector. The initiative underscores the recognition of industrial equipment upgrading as a top policy priority.

The scope of China’s action plan to upgrade industrial equipment in manufacturing, is extensive, covering various aspects such as:

In line with China’s ambitious goals for industrial modernization and sustainable development, the action plan outlines several key objectives aimed at driving substantial advancements in the industrial sector by 2027.

These objectives encompass a wide range of areas, from increasing investment to enhancing digitalization and promoting innovation, including:

The objectives and key actions proposed in the action plan are summarized below.

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 deepens engagement with new Indonesian president as top diplomat visits Jakarta

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China’s top diplomat met the outgoing Indonesian president and his successor in Jakarta on Thursday, as Beijing deepened its engagement with future leader Prabowo Subianto, amid a competition for regional influence with the United States.

The meeting with Chinese Foreign Minister Wang Yi was part of a joint commitment to advance the partnership between the two countries, said Prabowo, who visited Beijing in early April after his landslide win in the February general election.

“It is a great honor for me to welcome him [Wang] today. Thank you for the kind reception I received in Beijing a few weeks ago,” Prabowo said, according to an Indonesian defense ministry statement.

Chinese President Xi Jinping had invited Prabowo to visit, and the latter accepting the invitation raised eyebrows in Indonesia because no president-elect had made a foreign visit such as this one without being sworn in. China is Indonesia’s largest trading partner.

Wang, too, mentioned Prabowo’s Beijing trip, according to the same statement.

“We really appreciate and welcome Defense Minister Prabowo’s visit to China,” he said.

“We are committed to continuing to increase bilateral cooperation with Indonesia, both in the defense sector and other fields such as economic, social and cultural.”

Wang is scheduled to go to East Nusa Tenggara province on Friday to attend the China-Indonesia High-Level Dialogue Cooperation Mechanism, a process to support more effective bilateral cooperation. His Jakarta stop was the first of a six-day tour that also includes Cambodia and Papua New Guinea.

Chinese Foreign Minister Wang Yi (left) and Indonesian Foreign Minister Retno Marsudi attend a press conference after their meeting at the Ministry of Foreign Affairs in Jakarta, April 18, 2024. (Eko Siswono Toyudho/ BenarNews)

Prabowo and Wang discussed cooperation in the defense industry and sector, with potential measures such as educational and training collaboration, as well as joint exercises, said Brig. Gen. Edwin Adrian Sumantha, spokesman at the Indonesian defense ministry.

In fact, the ministry statement said that “China is Indonesia’s close partner and has had close bilateral relations, especially in the defense sector, for a long time.”

Of course, China has also invested billions of U.S. dollars in infrastructure projects in Indonesia, including as part of Beijing’s Belt and Road Initiative – the Jakarta-Bandung high-speed train, which began commercial operations in October 2023, is one such BRI project.

The two countries have drawn closer during outgoing President Joko “Jokowi” Widodo’s two terms, and Beijing would like that to continue as the U.S. tries to catch up with China’s gargantuan influence in Southeast Asia, analysts have said.

Indonesia, China call for ceasefire in Gaza

Both Indonesia and China shared the same position on Israel’s devastating attacks on Gaza, said Wang’s Indonesian counterpart, Retno Marsudi.

Israel’s air and ground strikes have killed more than 33,000 Palestinians following the Oct. 7 attack on the Jewish state by Palestinian militant group Hamas, which killed around 1,100 Israelis.

“We … have the same view regarding the importance of a ceasefire in Gaza and resolving the Palestinian problem fairly through two state solutions,” Retno told reporters in a joint press conference after meeting with Wang. 

“Indonesia will support full Palestinian membership in the U.N. Middle East stability will not be realized without resolving the Palestinian issue.”

For his part, Wang slammed Washington for repeatedly vetoing resolutions calling for Israel to end the attacks on the Palestinian territory it occupies.

“The conflict in Gaza has lasted for half a year and caused a rare humanitarian tragedy in the 21st century,” Wang told the media at the same press conference, according to the Associated Press.

“The United Nations Security Council responded to the call of the international community and continued to review the resolution draft on the cease-fire in Gaza, but it was repeatedly vetoed by the United States.”

The conflict in the Middle East offered a strategic opportunity for China to further expand its influence in Southeast Asia, said Muhamad Arif, a lecturer in international relations at the University of Indonesia.

“China is trying to strengthen its position as a key player in the region,” Arief told BenarNews.

China could present an alternative approach to the conflict in Gaza, he said, which may find approval in Southeast Asia’s largest country, Indonesia, and other Mulism-majority states in the region, such as Malaysia and Brunei.

BenarNews is an RFA-affiliated online news organization.

Read the rest of this article here >>> China deepens engagement with new Indonesian president as top diplomat visits Jakarta

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New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law

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The sixth revision of China’s Company Law is the most extensive amendment in history, impacting foreign invested enterprises with stricter rules on capital injection and corporate governance. Most FIEs must align with the New Company Law by July 1, 2024, with a deadline of December 31, 2024 for adjustments. Contact Dezan Shira & Associates for assistance.


The sixth revision of China’s Company Law represents the most extensive amendment in its history. From stricter capital injection rules to enhanced corporate governance, the changes introduced in the New Company Law have far-reaching implications for businesses, including foreign invested enterprises (FIEs) operating in or entering the China market.

Since January 1, 2020, the Company Law has governed both wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs), following the enactment of the Foreign Investment Law (FIL). Most FIEs must align with the provisions of the New Company Law from July 1, 2024, while those established before January 1, 2020 have bit more time for adjustments due to the five-year grace period provided by the FIL. The final deadline for their alignment is December 31, 2024.

In this publication, we guide foreign investors through the implications of the New Company Law for existing and new FIEs and relevant stakeholders. We begin with an overview of the revision’s background and objectives, followed by a summary of key changes. Our in-depth analysis, from a foreign stakeholder perspective, illuminates the practical implications. Lastly, we explore tax impacts alongside the revisions, demonstrating how the New Company Law may shape future business transactions and arrangements.

If you or your company require assistance with Company Law adjustments in China, please do not hesitate to contact Dezan Shira & Associates. For more information, feel free to reach us via email at china@dezshira.com.

 

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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