China
Navigating around the Chinese hegemon
Author: Xiang Gao, University of New England
How a rising China will integrate itself with the global economic and political order is a salient issue in world politics. On the one hand, China’s rejection of the South China Sea arbitration, its efforts to isolate Taiwan internationally and its willingness to work with controversial leadership in developing states indicate a more assertive ‘China First’ foreign policy. On the other hand, it is evident that China is engaging in significant multilateral and normative actions.
China’s rapid economic growth since 1978 has been accompanied by an increased involvement in global and regional governance. As of 2018, China is an active member of 65 international organisations, has ratified or signed over 220 international treaties and has implemented a significant amount of international obligations and laws into its domestic legal system.
Along with this international engagement, China is developing a ‘responsible power diplomacy’ — creating political discourse around ‘China’s peaceful rise’ and China’s intention to build a ‘harmonious world’. These initiatives seek to displace China’s old image of a ‘hegemon on the horizon’ with the new image of a responsible and cooperative great power that is fully committed to international norms and a rule-based international order.
The notion of a responsible and cooperative great power does not exclude a state from pursuing its national interest. Rather, the normative environment and interactions in the international community impacts the determination of national interests. These norms tend to reinforce policies that provide international public goods (such as security) or facilitate a redefinition of national interest away from the traditional values of absolute state sovereignty and non-interference to include such things as a commitment to institution building and international human rights. Being a responsible and cooperative great power carries with it the notion that the ability to attain foreign policy objectives short of violence and coercion are dependent on shared norms and values.
International values are often ignored in ‘high politics’ concerning national and international security. Yet it is evident that the international community is saturated in these norms and that they have been internalised by national policymakers. For example, states may pursue certain foreign policies that have little if any material reward. Canada is a ‘helpful fixer’ participating in UN peacekeeping missions and South Africa (before the setback of Jacob Zuma) was a ‘beacon of human rights’.
From this perspective, a review of a range of foreign policies suggests that Chinese policymakers have internalised a set of international norms in some areas even as the Chinese state has vigorously pursued unilateral foreign policy objectives.
First, it has increasingly described itself as a ‘responsible power’ that supports and ascribes to international norms. Various UN Security Council votes or abstentions, such as in the 2011 Libyan intervention and collective anti-piracy support in the Indian Ocean, suggest the impact of normative collective values.
Second, it has specifically incorporated and ‘localised’ various international laws and values into its domestic system. For example, after signing the Convention on the Rights of Persons with Disabilities, China passed a new mental health law in 2013 that greatly expanded the legal protection of mentally ill persons in committal procedures and treatment protocols.
These localisation measures can be used to garner good will and global leadership opportunities. As China actively seeks to incorporate biodiversity and climate change planning into its domestic law with its development of the China Business and Biodiversity Partnership, it has championed itself as a global leader in these areas. In 2020, China will hold the 15th Conference of the Parties to the Convention on Biological Diversity.
But serious challenges remain. China’s bilateral approach to the South China Sea, increasing strategic reach, and the current disputes over international trade and investment suggest that material national interests rather than normative values may dominate Chinese foreign policy as much as many other great powers.
The international values of sovereign rights and non-interference norms are sometimes used to insulate China from criticism of foreign investment in the developing world. Similarly, China is very cautious of humanitarian intervention and…
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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