China
Xi Jinping’s pledge: Will China be carbon neutral by 2060?
Author: Fergus Green, Utrecht University
In a speech to the UN General Assembly in late September 2020, Chinese President Xi Jinping declared his country’s aim ‘to have CO2 emissions peak before 2030 and achieve carbon neutrality before 2060’.
As the first time the government has adopted a domestic long-term goal for emissions, the announcement took even seasoned China-watchers by surprise.
China’s emissions comprise more than a quarter of the global total, so its plans are of unparalleled importance to global climate change mitigation efforts. According to one prominent estimate, China achieving carbon neutrality by 2060 could lower global warming projections by 0.2–0.3 degrees Celsius.
Yet, this would still not be consistent with the global trajectory needed to restrict global average temperature increases to within 1.5 degrees Celsius above preindustrial levels — the more ambitious of the Paris Agreement’s numerous objectives. According to analysis by the Intergovernmental Panel on Climate Change (IPCC), meeting that objective would require net zero emissions globally around 2050 and cuts of 45 per cent relative to 2010 levels by 2030. More recent scientific analysis urges an even faster timetable to reduce the risk of catastrophic outcomes. China’s 2060 carbon neutrality target would be 10 years too slow at the least.
‘Carbon neutrality’ implies net zero carbon dioxide emissions, but it is not clear what long-term trajectory China has in mind for its other greenhouse gas sources and sinks. The goal also doesn’t cover China’s financing of coal power plants and polluting infrastructure in other countries — but that’s another story.
All of this assumes China’s goal will be implemented, raising an important question of credibility. It certainly requires an enormous transformation. At a minimum, it would mean all but completely phasing out fossil fuel energy in power generation, transport, buildings and industry. Considerable changes in land use will also be needed to suck more CO2 out of the atmosphere.
According to one study, China could feasibly decarbonise its power sector by 2050 using existing non-fossil electricity generation technologies, and it could decarbonise much of transport, buildings and industry through widespread electrification and the deployment of other available technologies. Decarbonising the remaining sources of emissions would, according to the study, require technological breakthroughs, for example in hydrogen energy. This could occur if the government undertook a concerted energy innovation program over the relevant timeframe.
Achieving net-zero carbon emissions by 2060 would bring local economic and social benefits to China. According to modelling by Cambridge Econometrics, investing in clean energy and its related infrastructure would significantly increase Chinese GDP relative to a baseline scenario. It would also have numerous domestic ‘co-benefits’ such as dramatically lowering local air pollution — a scourge that causes millions of premature deaths in China every year.
Achieving this material and socio-economic transformation would require major changes in governance, planning, policy, investment and organisational practice at multiple levels. Here lies the greatest challenge, for China’s political economy is dominated by vested interests and riddled with perverse incentives for unsustainable production. State-owned enterprises in the fossil fuel and energy-intensive industries, as well as industry-focused bureaucracies and many provincial and city officials, still have a short-term interest in building fossil fuel power plants, steel mills, cement factories and other highly polluting infrastructure. Central officials often acquiesce or otherwise fail to rein them in.
There has been a dramatic increase in new coal-fired power station development in the last few years as central government planning controls have loosened. A study by the Centre for Research on Energy and Clean Air (CRECA) analysed priority projects in China’s main energy-consuming and producing provinces. It showed that the equivalent of hundreds of billions of dollars in post-COVID-19 stimulus is being planned for fossil fuel and energy-intensive industrial projects, exceeding planned spending on low-carbon energy threefold.
It is trends like these that make analysts understandably cautious about the significance of the 2060 target. As CRECA’s Lauri Myllyvirta notes, 2060 is a long way away and the government’s medium-term target gives it space to increase…
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
- China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
- Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
- China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
- U.S. national debt is its Achilles’ heel, but China sees it as an opportunity
- Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
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