China
The U.S. Politics of Dealing With China
Next week is bash-China week in Washington. Some politicians are taking up two-by-fours; others are trying to dance around the issue. On Monday, the Senate is going to take up new legislation backed by Democrats Charles Schumer of New York and Sherrod Brown of Ohio, Republican Lindsey Graham of South Carolina and a host of other lawmakers, which would penalize China for keeping its currency undervalued. In Washington political lingo that’s been called “currency manipulation,” although the new legislation dials that rhetoric down a notch by using a more technocratic term — “currency misalignment.” Still, the idea is to whack China rhetorically and, possibly, with trade sanctions if it doesn’t let its currency rise more quickly. Republican presidential candidate Mitt Romney has been quick to adopt a squeeze-China policy. His economic plan has a section labeled “confronting China,” which includes labeling the country a currency manipulator — using the old-style language — imposing unilateral sanctions, and ordering the U.S. government not to buy Chinese goods and services. In an early September Republican presidential debate, former U.S. Ambassador to China Jon Huntsman, tried to slap down Mr. Romney over his currency proposal, telling him, “now is not the time in a recession to enter a trade war.” But in a television interview on Fox with Greta Van Susteren earlier this week, Mr. Huntsman changed course a bit. While still warning of a trade war, he said he’d sign the Schumer bill if he were president. Why? “You need to keep pressure on China,” he said. “We need all the tools and leverage that we can muster,” Mr. Huntsman continued. “So the fact that it’s moving through Congress I think will put the Chinese certainly on notice.” Mr. Huntsman’s press spokesman said his boss wasn’t being inconsistent. In the debate, he was reacting to Mr. Romney’s full set of proposals, the spokesman said. In the interview, Mr. Huntsman was responding to one piece of legislation. For its part, the Obama administration continues to dance around the issue. On Friday it dispatched Undersecretary of Treasury Lael Brainard to China ostensibly to press the currency issue, as well as to discuss the agenda for a series of meetings of the Group of 20 nations. But the White House hasn’t either endorsed or rejected the currency bill. In the past, Treasury Secretary Timothy Geithner has said that Congressional pressure on China helps generally, but he has declined to designate China as a currency violator — a determination that the Treasury must make twice a year. Mr. Geithner fears doing so would backfire. –Bob Davis
Next week is bash-China week in Washington. Some politicians are taking up two-by-fours; others are trying to dance around the issue. On Monday, the Senate is going to take up new legislation backed by Democrats Charles Schumer of New York and Sherrod Brown of Ohio, Republican Lindsey Graham of South Carolina and a host of other lawmakers, which would penalize China for keeping its currency undervalued. In Washington political lingo that’s been called “currency manipulation,” although the new legislation dials that rhetoric down a notch by using a more technocratic term — “currency misalignment.” Still, the idea is to whack China rhetorically and, possibly, with trade sanctions if it doesn’t let its currency rise more quickly. Republican presidential candidate Mitt Romney has been quick to adopt a squeeze-China policy. His economic plan has a section labeled “confronting China,” which includes labeling the country a currency manipulator — using the old-style language — imposing unilateral sanctions, and ordering the U.S. government not to buy Chinese goods and services. In an early September Republican presidential debate, former U.S. Ambassador to China Jon Huntsman, tried to slap down Mr. Romney over his currency proposal, telling him, “now is not the time in a recession to enter a trade war.” But in a television interview on Fox with Greta Van Susteren earlier this week, Mr. Huntsman changed course a bit. While still warning of a trade war, he said he’d sign the Schumer bill if he were president. Why? “You need to keep pressure on China,” he said. “We need all the tools and leverage that we can muster,” Mr. Huntsman continued. “So the fact that it’s moving through Congress I think will put the Chinese certainly on notice.” Mr. Huntsman’s press spokesman said his boss wasn’t being inconsistent. In the debate, he was reacting to Mr. Romney’s full set of proposals, the spokesman said. In the interview, Mr. Huntsman was responding to one piece of legislation. For its part, the Obama administration continues to dance around the issue. On Friday it dispatched Undersecretary of Treasury Lael Brainard to China ostensibly to press the currency issue, as well as to discuss the agenda for a series of meetings of the Group of 20 nations. But the White House hasn’t either endorsed or rejected the currency bill. In the past, Treasury Secretary Timothy Geithner has said that Congressional pressure on China helps generally, but he has declined to designate China as a currency violator — a determination that the Treasury must make twice a year. Mr. Geithner fears doing so would backfire. –Bob Davis
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The U.S. Politics of Dealing With China
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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