China
What Does Gadhafi’s Fall Mean for China, rest of Asia?
Ben Simpfendorfer is Managing Director of Silk Road Associates, an economic consultancy. He is an Arabic and Chinese speaker and author of The New Silk Road. Tripoli might seem a long way from Beijing or Seoul, but the region’s global trade linkages and rising middle-class mean that events in Libya will have a knock-on effect. It is the response of international oil prices that will have the greatest impact on Asia’s economies. The region accounted for 80% of the increase in global oil consumption over the past decade. Sure, factories accounted for a large share of the increase. But so did rising car ownership with Asia’s annual car sales rising from 7 million to 20 million in the past five years (or 3 million to 5 million, excluding China), as the region’s middle-class started to spend. So today’s fall in oil prices, if sustained, will help to ease some of the cost pressure on the region’s factories and keep car sales ticking along, useful support at a time when worries about global demand are growing. What about non-oil trade? Perspective is important here. Libya might be one of the world’s larger oil producers, but its economy isn’t all that big–it’s smaller than Vietnam or about the same size as the southern Chinese city of Shenzhen. No surprise then that Asia’s exports to Libya were only worth $3.4 billion last year, or about 0.1% of the region’s total exports to the world. Of that, China accounted for $2.1 billion (Korea and India were the next largest). For China, specifically, the risks and opportunities have always been greater. Libya is China’s 11th largest oil supplier. But the Libyan regime had also turned more hostile towards China in recent years. Sure, China had 35,000 workers in the country. Yet the regime has publicly accused China of colonialism and rejected a bid by China National Petroleum Corporation in 2009 to buy the Libyan energy assets of Verenex, a Canadian oil company. So regime change in Libya might offer China new opportunities. Continue reading on Dispatch :
Ben Simpfendorfer is Managing Director of Silk Road Associates, an economic consultancy. He is an Arabic and Chinese speaker and author of The New Silk Road. Tripoli might seem a long way from Beijing or Seoul, but the region’s global trade linkages and rising middle-class mean that events in Libya will have a knock-on effect. It is the response of international oil prices that will have the greatest impact on Asia’s economies. The region accounted for 80% of the increase in global oil consumption over the past decade. Sure, factories accounted for a large share of the increase. But so did rising car ownership with Asia’s annual car sales rising from 7 million to 20 million in the past five years (or 3 million to 5 million, excluding China), as the region’s middle-class started to spend. So today’s fall in oil prices, if sustained, will help to ease some of the cost pressure on the region’s factories and keep car sales ticking along, useful support at a time when worries about global demand are growing. What about non-oil trade? Perspective is important here. Libya might be one of the world’s larger oil producers, but its economy isn’t all that big–it’s smaller than Vietnam or about the same size as the southern Chinese city of Shenzhen. No surprise then that Asia’s exports to Libya were only worth $3.4 billion last year, or about 0.1% of the region’s total exports to the world. Of that, China accounted for $2.1 billion (Korea and India were the next largest). For China, specifically, the risks and opportunities have always been greater. Libya is China’s 11th largest oil supplier. But the Libyan regime had also turned more hostile towards China in recent years. Sure, China had 35,000 workers in the country. Yet the regime has publicly accused China of colonialism and rejected a bid by China National Petroleum Corporation in 2009 to buy the Libyan energy assets of Verenex, a Canadian oil company. So regime change in Libya might offer China new opportunities. Continue reading on Dispatch :
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What Does Gadhafi’s Fall Mean for China, rest of Asia?
Business
China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
The 2024 China Golden Rooster and Hundred Flowers Film Festival began in Xiamen on Nov 13, featuring awards, cultural projects worth 31.63 billion yuan, and fostering international film collaborations.
2024 China Golden Rooster and Hundred Flowers Film Festival Opens
The 2024 China Golden Rooster and Hundred Flowers Film Festival commenced in Xiamen, Fujian province, on November 13. This prestigious event showcases the top film awards in China and spans four days, concluding with the China Golden Rooster Awards ceremony on November 16.
The festival features various film exhibitions, including the Golden Rooster Mainland Film Section and the Golden Rooster International Film Section. These showcases aim to highlight the achievements of Chinese-language films and foster global cultural exchanges within the film industry.
On the festival’s opening day, a significant milestone was reached with the signing of 175 cultural and film projects, valued at 31.63 billion yuan ($4.36 billion). Additionally, the International Film and Television Copyright Service Platform was launched, furthering the globalization of Chinese film and television properties.
Source : China’s Golden Rooster film festival opens in Xiamen – Thailand Business News
China
Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
Italy ratified an upgraded Double Tax Agreement (DTA) with China, effective in 2025, to reduce tax burdens, prevent evasion, and enhance investment. The DTA introduces modern provisions aligned with international standards, targeting tax avoidance and improving dispute resolution for Italian businesses.
Italy recently ratified the upgraded Double Tax Agreement (DTA), which will finally take effect in 2025. This agreement was signed in 2019 and was designed to reduce tax burdens, prevent tax evasion, and promote Italian investment in China.
On November 5, 2024, Italy’s Chamber of Deputies gave final approval to the ratification of the 2019 Double Tax Agreement (DTA) between Italy and China (hereinafter, referred to as the “new DTA”).
Set to take effect in 2025, the new DTA is aimed at eliminating double taxation on income, preventing tax evasion, and creating a more favorable environment for Italian businesses operating in China.
The ratification bill for the new DTA consists of four articles, with Article 3 detailing the financial provisions. Starting in 2025, the implementation costs of the agreement are estimated at €10.86 million (US$11.49 million) annually. These costs will be covered by a reduction in the special current expenditure fund allocated in the Italian Ministry of Economy’s 2024 budget, partially drawing from the reserve for the Italian Ministry of Foreign Affairs.
During the parliamentary debate, Deputy Foreign Minister Edmondo Cirielli emphasized the new DTA’s strategic importance, noting that the agreement redefines Italy’s economic and financial framework with China. Cirielli highlighted that the DTA not only strengthens relations with the Chinese government but also supports Italian businesses, which face increasing competition as other European countries have already established double taxation agreements with China. This ratification, therefore, is part of a broader series of diplomatic and economic engagements, leading up to a forthcoming visit by the President of the Italian Republic to China, underscoring Italy’s commitment to fostering bilateral relations and supporting its businesses in China’s complex market landscape.
The newly signed DTA between Italy and China, introduces several modernized provisions aligned with international tax frameworks. Replacing the 1986 DTA, the agreement adopts measures from the OECD/G20 Base Erosion and Profit Shifting (BEPS) Project and the OECD Multilateral Instrument (MLI), targeting tax avoidance and improving dispute resolution.
The Principal Purpose Test (PPT) clause, inspired by BEPS, is one of the central updates in the new DTA, working to prevent treaty abuse. This clause allows tax benefits to be denied if one of the primary purposes of a transaction or arrangement was to gain a tax advantage, a move to counter tax evasion through treaty-shopping.
| This article was first published by China Briefing , which is produced by Dezan Shira & Associates. The firm assists foreign investors throughout Asia from offices across the world, including in in China, Hong Kong, Vietnam, Singapore, and India . Readers may write to info@dezshira.com for more support. |
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Business
China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
China’s new home prices fell for the 17th month in October, declining 0.5% from September, but slowing, indicating potential market stabilization amid supportive measures. Second-hand home prices showed mixed trends.
Decline in China’s Home Prices Stabilizes
China’s new home prices continued to decline in October for the 17th consecutive month, although the drop showed signs of slowing. Recent support measures from Beijing appear to be inching the market toward stabilization, as evidenced by a lighter decline compared to earlier months.
Monthly and Yearly Comparisons
According to the latest data from the National Bureau of Statistics, new home prices across 70 mainland cities fell by 0.5% from September, marking the smallest decrease in seven months. Year-on-year, prices dropped by 6.2%, slightly worse than the September decline of 6.1%. In tier-1 cities like Beijing and Shanghai, prices decreased by 0.2%, a smaller fall than 0.5% in the previous month.
Second-Hand Home Market Trends
Second-hand home prices in tier-1 cities experienced a 0.4% increase in October, reversing a 13-month downward trend. Conversely, tier-2 cities observed a 0.4% drop in second-hand prices, while tier-3 cities faced a similar 0.5% decline. Overall, recent trends indicate a potential stabilization in China’s property market.
Source : China’s new home prices slow 17-month decline after support measures kick in
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- China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
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