China
Smarter strategies for sharing South Asia’s rivers
Author: Ashok Swain, Uppsala University
South Asia is facing severe water scarcity. As the region’s population grows and its economies develop, a lack of sustainable water development strategy is leading to increasingly acute water shortages.
The region is home to nearly 2 billion people, almost half of which depend on the large river systems shared among countries. There are two major international river systems in the region: the Indus and Ganges-Brahmaputra. While the Indus basin is shared by Afghanistan, China, India and Pakistan, the Ganges-Brahmaputra is shared by Bangladesh, Bhutan, China, India and Nepal.
But no regional organisations manage these precious water resources. Instead, water is shared according to bilateral agreements. Notable are the 1960 Indus Treaty between India and Pakistan, the 1996 Ganges Treaty between India and Bangladesh and the 1996 Mahakali Treaty between India and Nepal. India and Bhutan also have a series of hydropower generation agreements.
None of these agreements are comprehensive in scope or nature. The Indus Treaty is primarily a river sharing agreement, while the Ganges Treaty is a water-sharing agreement. The Mahakali Treaty — which is yet to be implemented — is a benefit-sharing agreement.
The South Asian region is water-rich but with huge seasonal variations. In the absence of mutually beneficial, comprehensive agreements to store and develop water resources, there is always a fear that upper riparian countries will unilaterally exploit the rivers for their own benefit. This may have far-reaching effects on downstream countries.
Since 2016, in spite of the 1960 agreement, India has repeatedly threatened to divert water from the Indus away from Pakistan. In the Ganges basin, India has also been diverting water away from Bangladesh since 1975, though that diversion is presently regulated under the 1996 Agreement. India has also made proposals to divert water from the Brahmaputra inland, instead of allowing water to flow into Bangladesh.
After becoming the prime minister of India in 2014, Narendra Modi revived old plans to link 30 of the country’s major rivers and divert the Ganges-Brahmaputra. This grand plan intends to provide water to India’s arid provinces — but it is causing anxiety among the country’s smaller neighbours. Some rivers have already been connected, but the proposal requires the construction of large dams in India, Nepal and Bhutan in order to go ahead, as they share the Ganges-Brahmaputra. This will require India to enter into agreements with these countries.
Linking major rivers of the region could create more regional water disputes instead of resolving the existing ones. In South Asia, failure to find negotiated settlements over water in the past has contributed to the rise of tensions between states. Only in the case of the 1960 Indus Treaty did India and Pakistan accept mediation by the World Bank. In all other water disputes, India has strictly adhered to the practice of bilateral negotiation. Though this approach has strengthened India’s position as a regional power, it has kept the past disagreements alive and limited wider plans to develop the region’s water resources.
The growing threat of climate change and its impact on water demand and supply in the region means South Asian countries can no longer continue with the old bilateral approach — particularly given China’s growing interest in harnessing river resources. In the last decade, China has built two hydropower dams on the Indus and Brahmaputra, and two more dams are presently under construction. All these developments have further increased the dynamics of water conflict, as well as the need for India to cooperate over the region’s scarce shared water resources.
China’s water projects upstream have threatened India’s position as the dominant riparian in these two basins. This has prompted India to explore collaborating with Bangladesh, Bhutan and Nepal in the Ganges-Brahmaputra basin, and to seek support for dam-building in the Afghan part of the Indus basin.
Riparian countries in South Asia should work towards establishing lower basin-based water management institutions — as the lower basin countries in the Mekong basin have been doing since the 1990s. Cooperation among lower riparian countries is needed not only to address increasing water scarcity in the dry-seasons and devastating floods in the monsoon periods, but also to effectively protect their water supply from China. Unilateral actions by South Asian countries, particularly India, to protect…
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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