China
Crisis in Ladakh strengthens US–India relations against China
Author: Vinay Kaura, Sardar Patel University of Police, Security and Criminal Justice
The face-off between Indian and Chinese forces has become uglier with the recent deaths of 20 Indian soldiers and an unknown number of Chinese soldiers. It is the first such incident in over four decades and likely to change India’s perception of China decisively. US President Donald Trump initially offered to mediate to help resolve the border crisis threatening peace in the broader Himalayan region. Trump knew the two would reject his mediatory proposal. But his decision to make it should be understood within the context of his ‘free and open’ Indo-Pacific vision, US strategic rivalry with China, and his diplomatic aim to nudge India towards a more confrontational position vis-a-vis China.
The increasingly robust US pushback against China involves characterising China as the pre-eminent threat to global peace and stability in the 21st century. To deter China’s rising ambitions, the United States has championed the revival of a robust Quadrilateral Alliance (the Quad) of ‘like-minded’ democratic powers — the United States, Japan, Australia and India.
Ties between India and the United States continue to grow despite facing some obstacles in their relations. There has been a significant expansion of security cooperation between New Delhi and Washington. Trade between the two over the last two decades has jumped from US$16 billion to US$142 billion. But trade tensions have also risen since Trump took office in 2017, particularly over tariffs, foreign investment limitations, intellectual property rights, medical devices, e-commerce and data localisation, and the cap on H-1B visas for Indian professionals.
India’s Prime Minister Narendra Modi is aware of the challenges of depending on the United States, particularly given the potential for a change in US external posture with a change in administration. These uncertain dynamics have injected a dose of caution into India’s strategic behaviour and its relations with the United States.
India’s Indo-Pacific vision is less muscular and more diplomatically nuanced than that of the United States. In his keynote speech at the 2018 Shangri-La Dialogue, Modi projected India as a trans-continental ‘pivot state’ that believes in freedom of navigation across international waters, thus embracing the Indo-Pacific and India’s emergence as a global power. He also praised India’s long tradition of strategic autonomy by highlighting India’s ability to navigate geopolitical fault lines, demonstrated by simultaneously mentioning the ‘extraordinary breadth’ of India–US relations and the ‘maturity and wisdom’ of India–China relations.
India continues to walk this tightrope in dealing with China more gently than the United States. Its rejection of Trump’s offer to mediate underscores New Delhi’s strategic engagement with Beijing and its preference to use established diplomatic channels to peacefully resolve the standoff.
Notably though, Modi and Trump seem to share a common belief of China having hostile intentions. Modi himself has never expressed such a belief in public but his party members have, suggesting that his government considers China a challenge. India has shown greater caution about compromising its economic engagement with China than the United States has with its trade war.
But the United States has not given up on its efforts to make India a committed ally in countering China’s aggression in the Indo-Pacific region. US Defense Secretary Mark Esper expressed his commitment to India’s leadership across the Indo-Pacific region. This increasingly visible public support is a US attempt to cast the India–China border tensions as an integral part of China’s revisionist behaviour across the Indo-Pacific.
Multiple recent confrontations at different locations in eastern Ladakh along the disputed India–China boundary clearly indicate a pattern in Beijing’s behaviour and some prior planning. Chinese President Xi Jinping has adopted an increasingly confrontational approach toward India, marking a new low for arguably India’s most important regional relationship.
And Chinese military deployment along the Line of Actual Control has been far greater than what was witnessed during the 2017 Doklam standoff. As India struggles to respond appropriately, Trump has seized the opportunity to secure a more robust commitment from India regarding its role in the Quad.
Areas of tensions and divergence between India and China — boundary disputes, the…
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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