China
Will Biden’s America change course on China and trade?
Author: Charles R Hankla, Georgia State University
US President Joe Biden’s administration must figure out how to pick up the pieces of former president Donald Trump’s controversial trade policy, especially as it relates to China. Some hope (or perhaps fear) that Biden will return US policy to a reformed version of the pre-Trump days of liberal internationalism, embracing free trade and global economic leadership. Yet an integrated approach between liberal internationalism and populism is more likely.
A liberal internationalist approach would see Biden bring the United States into the Trans-Pacific Partnership — the trade agreement among 12 pacific-rim nations that Trump abandoned in 2017 and has since become the smaller Comprehensive and Progressive Agreement for Trans-Pacific Partnership. He might also restart momentum towards the Transatlantic Trade and Investment Partnership with the European Union and negotiate new trade terms with a post-Brexit United Kingdom. He could reinvigorate the World Trade Organization (WTO) negotiation process while putting its dispute settlement process on firmer ground.
Biden has signalled that he could embrace a traditional form of liberal internationalism. In 2017, he gave a defence of the liberal international order at Davos and in 2020 he published a paean to US leadership in Foreign Affairs. But Trump has broken the post-war consensus in favour of free trade. The politics of trade has changed, with trade sceptics on the left and right now stronger. This points to the possibility that Biden will continue his predecessor’s populist policies on trade, focussing on protectionism and unilateralism.
The differences between a liberal internationalist and populist policy direction in the United States are stark on China policy. A liberal internationalist Biden would adopt a traditional US approach to China’s rise. He would see China’s growing economy as an opportunity for US business and would hope to manage any threat Beijing might pose by integrating it into international institutions and laws.
Still, Biden may add strategic vision to Trump’s erratic and disorganised trade policy, and he might take a more aggressive position towards perceived unfair Chinese trade practices. For example, he might impose trade penalties for Chinese currency manipulation or violations of intellectual property rights. Biden’s administration may also see trade protection as one of many policy instruments available to punish China for non-trade related behaviours to which it objects. These might include human rights violations against the Uighurs and aggressive behaviour against Taiwan or in the South China Sea.
A recent Carnegie Endowment for International Peace report titled A Foreign Policy for the Middle Class and co-authored by Biden’s national security advisor, Jake Sullivan, may shed some light on the new administration’s plans. It lays out a vision for a more integrated approach to US foreign relations, one which is neither purely liberal internationalist nor purely populist. Biden has endorsed the report and the broad concept of building policy around the interests of regular Americans, however defined.
A ‘foreign policy for the middle class’ aims to consider how any action will affect the lives of most Americans. It intends to build a broad coalition around US foreign policy, prevent swings from internationalism to isolationism and forestall destructive overcommitments such as the war in Iraq. Yet it is unclear what this approach would mean for trade policy and the US–China relationship.
That said, if Biden puts this report and its implications at the centre of his foreign policy, we can predict five areas of change.
First, there will be a more integrated approach to foreign policy. Biden’s administration will view trade policy with China as one portion of the overall US–China relationship, giving consideration to the implications of trade policy on US prosperity broadly.
Second, there will be an open but pragmatic approach to international cooperation on trade. Biden may be more amenable than Trump to signing new trade agreements and deepening old ones. Still, he will not support such agreements simply to solidify US leadership but will prioritise the economic impact of any potential agreement on middle-class voters.
Third, there will be strong demands that any new agreements contain more labour and environmental protections. The influence of the left wing in the Democratic Party, along with the political power of the US rust belt, makes it likely that…
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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