China
Why a ‘Nixon moment’ in India–China relations is unlikely
Author: Raj Verma, Huaqiao University
India–China relations have hit a nadir after the recent clash between Indian and Chinese troops in the Galwan Valley. Although disengagement and de-escalation is underway, tensions remain high. Some argue that there has been a Chinese and Indian leadership failure in ensuring amicable ties, pointing to ‘a historical failure on both countries’ parts to initiate a Nixonian moment in their relationship’, a reference to the former US president’s promoting pragmatic coexistence with China.
But calling for a ‘Nixon-in-China moment’ in India–China relations implies a set of false analogies in the relationships between India, China and the United States today, and those between the United States, China and the Soviet Union that prevailed when Richard Nixon landed in Beijing in 1972.
The dynamics within the US–USSR–China triad and the US–China–India triad are different. During the Cold War, the United States was the most dominant economic and military power globally and in Asia, followed by the Soviet Union and China. The United States and the Soviet Union were also on opposing sides during the Cold War.
After its establishment in 1949, the People’s Republic of China espoused Marxism-Leninism and consolidated an alliance with the Soviet Union. But bilateral relations hit rock bottom in the 1960s especially after the clash along their disputed border in 1969. It is in this context that the United States (the leading power) and China (the weakest power in the triad) established relations aimed at countering their common enemy, the Soviet Union.
Today, the United States is the hegemon, albeit in decline, and India is the weakest power in a US–China–India triad. China–US relations have gone from bad to worse, especially through the COVID-19 pandemic. On the other hand, India–US relations have blossomed in the 21st century. Political, diplomatic, economic, security and military ties between the world’s two largest democracies have strengthened and deepened.
For its part, India is wary of China’s assertive foreign policy, including attempts to curtail India’s rise as a great power. Beijing wants New Delhi to be enmeshed in South Asian affairs so that India’s political, diplomatic and military resources are not utilised to challenge China’s rise as the predominant power in Asia.
Unlike the India–China and China–USSR dyads, the United States and China are not neighbours. In 1969, at the height of the China–Soviet split the two countries had a seven-month border conflict, which ended in a ceasefire with the status quo ante restored. But the border dispute was not resolved and rivalry between the two countries was extended to countries in Asia, Africa and the Middle East. Bilateral relations only improved, slowly and steadily, in the 1980s.
India fought a limited border war with China in 1962, where the former was defeated and China captured Aksai Chin, a piece of territory claimed by India. The 1962 war exacerbated mistrust and led to the breakup of diplomatic ties between the two countries until 1976. The two countries also had border skirmishes at Nathu La, Sikkim, in 1967, and at Tulung La, Arunachal Pradesh, in 1975. In the 21st century, both have blamed each other for border transgressions along the un-demarcated Line of Actual Control (LAC). Tensions rose again in 2013 and 2014 when India blamed China for encroaching on Indian territory, denied by China. The matter was resolved when both sides withdrew troops.
In 2017, the two countries had a 72-day military standoff in Doklam at the China–Bhutan–India trijunction. There were fears of this spilling over between the two nuclear-armed neighbours. The standoff resolved after both sides withdrew troops and China agreed not to build a road in Doklam.
One explanation for recurrent border transgressions is geopolitical, in attempting to put pressure on India to kowtow to China and show India its place in the Asian hierarchical order. Another is domestic factors, such as Chinese expansionism and rising nationalism, which makes it difficult for leaders to compromise on territorial sovereignty. China is also anxious about India’s construction of roads, bridges, tunnels and other infrastructure along the disputed LAC. China is especially concerned over the construction of the 255-kilometre Darbuk-Shyokh-Daulat Beg Oldie (DS-DBO) all-weather road due to its tactical advantage along the LAC.
Government leadership in both countries is essential for strengthening India-China relations and to…
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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