China
Chinese–Russian ballistic missile cooperation signals deepening trust
Author: Vasily Kashin, Higher School of Economics
During the annual meeting of the Valdai Discussion Club in October 2019, Russian President Vladimir Putin announced that Russia and China are cooperating on developing a ballistic missile early warning system (BMEWS). Putin underscored that such cooperation demonstrates the high level of trust between the two countries.
Beijing’s first efforts to develop and build a BMEWS and anti-missile defence tracking radars were undertaken as part of the abortive Project 640, an attempt to build a Chinese strategic missile defence system that ran in the 1960s–80s. Project 640 resulted in the construction of two functioning experimental radars: a type 7010 BMEWS radar and a type 110 tracking radar. Both radars were used for some time by the Chinese military.
China renewed its BMEWS development in the 2000s, using some of the experience gained from Project 640. Construction of long-range BMEWS radars started in the 2010s. Experiments with space-based ballistic missile early warning components were also renewed with the launch of test satellites.
The Chinese system does not copy any existing Russian system. But the Chinese have approached Russia for expertise in overcoming bottlenecks.
Russia–China military technical cooperation has always been rather secretive, and the level of secrecy has increased as both countries engage in more direct confrontation with the United States. So far the Russian media has identified just one contract related to the bilateral BMEWS cooperation with China. This contract is for the development of specialised BMEWS software, worth approximately US$60 million, was awarded to a leading Russian air and missile defence systems corporation.
This is likely not the only defence agreement between the two countries. BMEWS cooperation likely consists of numerous small contracts that address various problems in the Chinese system.
These systems are among the most sophisticated and sensitive areas of defence technology. The United States and Russia are the only countries which have been able to develop, build and maintain such systems. Early systems, both land and space-based, were unreliable, leading to several potentially catastrophic incidents during the Cold War after erroneous warnings of enemy attacks.
Technological assistance from Russia will help the Chinese to overcome several issues with their systems. This will decrease the probability of system malfunction, and in turn have a positive impact on global security.
Russian companies’ involvement in the development of these Chinese ballistic missile early warning systems gives them access to a great deal of data about system capabilities. This demonstrates a high level of trust and puts forward the question of possible integration of Russian and Chinese systems.
In the event of system integration, stations located in the North and the West of Russia could provide China with warning data. In turn, China could provide Russia with data collected at their Eastern and Southern stations. This would enable the two countries to create their own global missile defence network. But neither Chinese nor Russian governments have stated their intentions to do this yet.
Missile defence cooperation is in the interests of both countries’ militaries. Russia and China have conducted a number of joint computer-simulated missile defence exercises in recent years. But these only simulated the work of simpler theatre missile defence systems such as the S-400 and HQ-9 systems.
The introduction of the Countering America’s Adversaries Through Sanctions Act (CAATSA) — the US law that seeks to punish those who procure arms and defence technology from Russia — led to even greater secrecy surrounding Russia’s bilateral arms deals in recent years. Official statements have disclosed at least three new major contracts for the export of Russian arms and technology to China in 2019.
The political meaning of Putin’s statement on BMEWS cooperation extends far beyond the technical and military significance of these cooperation projects. It demonstrated to the world that the two countries are on the brink of a formal military alliance, which could be triggered if US pressure goes too far.
At the next Valdai meeting in October 2020, Putin suggested the possibility of a military alliance with China. The Chinese Ministry of Foreign Affairs’ reaction to this statement was positive but the Chinese side refrained from using the word ‘alliance’. Putin’s 2019 statement on BMEWS cooperation, however, was likely made…
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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