China
‘Gaituguiliu’ causes division in Hong Kong
Author: Baogang He, Deakin University
Millions of people have recently marched through the streets of Hong Kong in protest against proposed amendments to the city’s Extradition Law. The upheaval has attracted significant analysis, but Hong Kong–mainland relations could perhaps be better understood from the perspective of ‘Gaituguiliu’.
Gaituguiliu refers to the traditional Chinese policy where the central government replaces the local rulers’ inheritance system with a central direct appointment system — a Chinese model of integration and grand union. This was facilitated through the use of Confucian culture and education. Gaituguiliu was practiced across many dynasties — in particular during the Ming and Qing eras — and can be seen as a ‘gene’ of Chinese civilisation. Variants of the policy can be seen today in Hong Kong, Tibet, Xinjiang and Inner Mongolia.
Hong Kong is theoretically governed under the ‘one country, two systems’ principle. But Beijing has adopted the ‘Grand Union’ policy and has asserted its ‘overall jurisdiction’ — comprehensive power to manage and rule Hong Kong as per the official White Paper of June 2014. For over 22 years, Gaituguiliu has eroded the ideal of ‘one country, two systems’.
From the perspective of Gaituguiliu, Beijing’s resistance and opposition to direct elections is understandable. Gaituguiliu believers are sceptical about democratic autonomy and believe that China needs a new version of Gaituguiliu to accelerate the process of integration towards a single administrative system where the central government appoints local governors. Conversely, many Hong Kongers demand universal suffrage and believe in the value of democratic autonomy.
Gaituguiliu’s influence can be seen in numerous areas. For example, Beijing has set up various government institutions and agencies in Hong Kong and has increasing power and influence. The Liaison Office of the Central People’s Government in Hong Kong is heavily involved in the management of Hong Kong affairs. Even the Chinese Communist Party has established party branches and recruits members there.
China promotes patriotic education and Mandarin Chinese as requirements of Gaituguiliu. The five interpretations of the ‘Hong Kong Basic Law’ issued by the National People’s Congress Standing Committee have ensured unity within a diversified legal system. China’s military garrison in Hong Kong also guarantees a military base enforcing Gaituguiliu. The rise of China’s economy, especially following the recent construction of the Greater Bay Area region, integrates Hong Kong into the mainland economy.
At the social level, Beijing controls the entry quota of 150 mainland settlers into Hong Kong on a daily basis, with the number of mainland immigrants over the past 20 years having reached one million people — resulting in so-called ‘mainlandisation’.
Many Hong Kongers are disappointed and frustrated in the face of a continued intensification of Gaituguiliu and are defending their way of life and demanding democratic autonomy. In 2014, the 79-day Occupy Central Movement demanded the direct election of the chief executive. The election in September 2016 saw six young people without political experience elected as members of the Legislative Council.
Some of the younger generation that grew up in the period following Hong Kong’s return to China even advocate independence. From the democratic perspective, some Hong Kong youths do not see any hope of democracy under China’s authoritarianism.
The emergence and development of the Hong Kong independence movement is further accelerating the pace of China’s Gaituguiliu policy. Beijing is tightening its control over Hong Kong’s independence movement by elevating the ‘Grand Union’ as a core national interest and national security issue. The central government also intensified its Gaituguiliu process in response. The 2019 revision of the Extradition Law represents the legal process of expediting Gaituguiliu that inspired large-scale local protests.
The 2019 marches opposing amendments to the Extradition Law reflects the determination of the local movement to defend the autonomy of Hong Kong’s legal system and prevent Hong Kong from becoming another mainland city. One special characteristic of the demonstrations is the protest against symbols of China — the China–Hong Kong High Speed railway station and the Liaison Office of the Central People’s Government.
Among the Hong Kong local movement, there is a belief that new immigrants from…
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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