China
The shifting US position over the Senkaku Islands
Author: Brian Victoria, Oxford Centre for Buddhist Studies
Since the Nixon administration, the United States has taken the position that territorial sovereignty over the Senkaku Islands was to be decided by the parties involved — Japan, China and Taiwan. From 1996 US diplomats have periodically confirmed that the Senkakus are covered under Article 5 of the US–Japan Security Treaty as Japanese-administered territory, but this was deliberately differentiated from a determination of sovereignty. In 2014, Barack Obama became the first sitting US president to verbally affirm that the United States would defend the islands if attacked, as they were currently under Japanese administration.
This was changed in February 2017 when US President Donald Trump further enhanced the US commitment to the Senkaku Islands. In a joint written declaration with former Japanese prime minister Shinzo Abe, Trump expressly stated that the Japan–US Security Treaty applies to the Senkaku Islands and that the United States opposes all unilateral actions aimed at contesting Japan’s administration over the islands. Trump became the first US president to express in writing the US obligation to defend the Senkakus without mentioning the provisional nature of Japanese sovereignty.
During his visit to Japan in early October, US Secretary of State Mike Pompeo called ‘for a new alliance of democracies’ to counter China. Meanwhile, as the United States and Japan began joint military exercises in the East China Sea in late October, Commander of US Forces Japan Lieutenant General Kevin Schneider stated that ‘the United States is 100 per cent absolutely steadfast in its commitment to help the government of Japan with the situation [of defending the Senkaku Islands]. That’s 365 days a year, 24 hours a day, seven days a week’.
The US commitment expressed by Pompeo and Schneider was welcomed by about 100 legislators of Japan’s governing Liberal Democratic Party who had recently called for joint Japanese and US military operations to strengthen control over the Senkaku Islands. The legislators’ proposal made clear that the ownership of the Senkakus remains an important issue for Japan, with numerous related articles in the Japanese press reporting on China’s incursions into the waters surrounding them.
What is notable is the almost complete absence of an accurate historical account of how the Senkaku Islands became Japanese territory. Japan typically asserts that the islands have been part of its territory since 1895. Their ownership is justified on the basis that Japan conducted surveys of the islands in 1884 and found them to be terra nullius, with no evidence to indicate they were under China’s control.
The reality is that the Senkaku Islands were first mentioned in a 15th century Chinese document describing a voyage to the Ryukyus from China. By the 17th century, Chinese sources clearly named the maritime boundary between the Senkaku Islands and the Ryukyus as the Heishuigou or ‘Black Water Trench’, an area of high turbulence that marks the edge of China’s continental shelf.
In 1720, deputy Chinese envoy Xu Baoguang collaborated with local Ryukyuan authors to compile the travelogue Zhongshan Chuanxin Lu or ‘Record of the Mission to Chusan’, which demarcated the westernmost border of the Ryukyuan kingdom at Kume-jima, south of the Heishuigou Trench.
Japan annexed the Ryukyu Kingdom in 1879, creating Okinawa Prefecture. It was not until 1885 that the governor of Okinawa Sutezo Nishimura petitioned the Meiji government to take control of the Senkaku Islands. In response, Minister of Foreign Affairs Kaoru Inoue noted that the islands lay near the border area with China and already had Chinese names.
Inoue also cited an article in a Chinese newspaper charging that Japan was occupying islands off China’s coast. Inoue feared that a Japanese claim on the Islands would anger China, possibly leading to war. Inoue’s concerns convinced Aritomo Yamagata, Minister of the Interior, to refuse the governor’s request.
It was not until 14 January 1895, in the closing stages of the First Sino–Japanese War of 1894–1895, that Japan secretly took control the Senkaku Islands. By that time, Japan was certain of victory and knew there was nothing China could do about the takeover.
By incorporating the islands prior to the Shimonoseki Peace Treaty on 17 April 1895, Japan sought to ensure that it would at least succeed in acquiring the islands. This allowed Japan to claim that since the takeover had taken place prior to the peace…
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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