China
Drawing the curtain on China–Israel cooperation?
Authors: Carice Witte and Dale Aluf, SIGNAL
As the longest-serving prime minister in Israeli history, Benjamin Netanyahu has had a profound influence on China–Israel relations. Diplomatic relations between the two countries are the widest-reaching since normalisation in 1992, with China having emerged as Israel’s second-largest trading partner.
But China’s swift ascent to global economic and military might has led to a growing unease among Israel’s Western allies, especially the United States. Has Netanyahu’s administration done enough to adapt to the rapidly shifting realities?
After China emerged as the world’s second-largest economy in 2010, it identified advanced technology as a national priority in its 12th Five Year Plan and began looking to the ‘Start-up Nation’ for innovative solutions to its domestic challenges. Netanyahu had just launched Israel’s pivot to Asia to diversify its economy beyond the United States and Europe.
Israel’s embassy and the four consulates in China were all instructed to promote business ties with Beijing. Israel saw China as a ‘good news story’, promising a stream of investment money. China identified Israel as a key source of innovation after a 2012 visit to Israel by the Central Party School’s International Institute of Strategic Studies.
Hundreds of millions of dollars subsequently flowed from China into innovative tech companies and R&D centres in Israel. Toga Networks became an R&D centre for Chinese telecommunications giant Huawei. Now Alibaba, ChemChina, Kung-Chi, Legend, Lenovo and Xiaomi have all set up shop in Israel. Many of these investments and acquisitions have been in firms focussed on cloud computing, artificial intelligence, semiconductors and communications networks — areas that have great strategic and economic importance.
The Netanyahu government also looked to China for Israel’s infrastructure needs, especially in cases when US companies were invited to compete for tenders and refused. This is what occurred when Israel sought foreign companies to operate the newly privatised section of Haifa Port in 2015.
China’s expanding footprint in Israel began to alarm officials in 2014, when the former head of Israel’s intelligence agency, Efraim Halevy, criticised Israeli dairy corporation Tnuva’s acquisition by Chinese state-owned enterprise, Bright Food, arguing that food security is a vital national interest and should not be in the hands of foreign governments.
Israel has not been entirely naive regarding the risks associated with foreign entities investing in critical sectors. While serving as Commissioner of Capital Markets, Dorit Salinger blocked multiple attempts by Chinese companies to acquire Israeli insurers Phoenix and Clal. Yet, outside the financial realm, Israel continued to welcome Chinese capital with no indication that there was a need for scrutiny.
After all, Israel and China cut defence ties in the early 2000s, when Washington compelled Israel to cancel a series of defence contracts with Beijing. From 2004 onward, so long as cooperation remained strictly in the civilian realm, all was deemed kosher.
The geopolitical landscape began to change in 2017 when Jerusalem’s most important ally labelled China a strategic rival. The United States has since raised concerns about Chinese companies conducting espionage and views China’s infrastructure development projects and acquisition of advanced technologies as a threat to its global primacy.
The United States imposed export restrictions on Chinese multinationals wishing to acquire US tech and launched a pressure campaign on its allies to curb ties with China. At a maritime conference held at Haifa University in 2018, members of the US think tank community lambasted their Israeli counterparts over approving the 2015 Haifa port deal with the Shanghai International Port Group.
Meanwhile, the Netanyahu government continued awarding tenders to Chinese companies for infrastructure projects and cultivating Chinese investment into its high-tech industries. Facing mounting US pressure, Israel still sought to maintain trade and investment relations with China.
The US-China trade war has, in some ways, brought Israel and China closer together. Israel’s semiconductor industry saw exports to China increase by 80 per cent in 2018. As the United States closed the door to Chinese tech companies, they began looking to Silicon Wadi. As China–Israel technology cooperation continued unabated, Washington ramped up pressure on Israel regarding Chinese infrastructure projects, as it ‘puts the capacity…
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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