China
Is China angling for a Saudi–Iranian detente?
Author: Guy Burton, Brussels School of Governance
China’s Foreign Minister Wang Yi embarked on a six-country tour of the Middle East at the end of March 2021. On the eve of his departure, Wang announced China’s five-point plan for the region, which included mutual respect, equity and justice, non-proliferation, collective security and development cooperation.
The principles set out in the five-point plan are uncontentious — and it is also not the first time that China has issued a plan for the Middle East. In 2013, Chinese President Xi Jinping launched a four-point plan around the Israel–Palestine conflict. Four years later he re-launched it, this time referencing China’s Belt and Road Initiative — with Israel and Palestine as important partners.
What makes the recent five-point plan unique is its wider scope to include other conflicts in Syria, Libya and Yemen, as well as the rivalries in the Gulf. In a departure from previous proposals, Wang also set out some concrete suggestions for how tensions in the Gulf might be managed. They included China hosting a ‘multilateral dialogue conference’ to help create a trust-building mechanism which — as a first step — could ensure the ‘safety of oil facilities and shipping lanes’.
In the end, the five-point might not make much of a splash. There was no statement on when the conference might happen or what role Beijing would have in the design or guarantee of the trust-based mechanism. The plan was also overshadowed by the media coverage given to an alleged 25-year cooperation deal signed between China and Iran — which some observers have argued is overstated.
Yet even if the five-point plan seems like it may fizzle out, its spirit kept with regional developments in the past month. Saudi and Iranian officials met at a face-to-face meeting in Baghdad for the first time since diplomatic relations broke off five years ago. Initially, the Saudis denied the meeting took place. But at the end of April, Crown Prince Mohammed bin Salman (MBS) implicitly backed the move. In a television interview, he abandoned his previous confrontational language towards Iran in favour of a more conciliatory tone, expressing his hope for ‘good’ relations.
In explaining the shift, analysts have focused on changes taking place in the United States, in particular the presidency of Joe Biden. Not only was Trump more sympathetic towards MBS than Biden, but he also pursued a ‘maximum pressure’ strategy against Iran when he pulled the United States out of the Joint Comprehensive Plan of Action (JCPOA) and reimposed sanctions. In contrast, Biden is perceived as cooler towards MBS. His administration is pushing back on Saudi Arabia’s military campaign in Yemen and is also involved in indirect talks with Iran over the future of the JCPOA.
But focusing on US-centric explanations is too limited given the increasing multipolarity of the Middle East. A quiet Chinese word may have also made a difference. For instance, official statements made clear that Wang was likely to have some frank discussions around ‘peace in the Middle East’ during his trip to the region.
China has sufficient base and motivations to have such conversations.
First, Saudi Arabia and Iran are among the most important countries for Chinese commercial activity in the Middle East. Besides the oil trade, Saudi Arabia and Iran are the largest and third largest recipients of Chinese capital respectively in the region. So, instability in the region, including from the Iran–Saudi Arabia rivalry, would adversely affect China’s business interests.
Second, China has the means to engage with Riyadh and Tehran on a substantive basis. China’s stated commitment to non-interference gives it the air of an honest broker. The two countries have also been elevated to the same level of importance — in 2016 China signed comprehensive strategic partnerships with both Iran and Saudi Arabia. This is the highest form of diplomatic recognition and cooperation it can bestow short of a formal alliance. Such partnerships seek to expand ties beyond the economic sphere to include political interaction and exchange at different levels.
A Chinese word would not be ignored. For the Saudis, Biden’s approach is narrowing the gap between US and Chinese positions in the Gulf. For the Iran, its geopolitics has become heavily weighted towards China and Beijing has shown that it is prepared to leverage this, for example by previously persuading Iran to accept the JCPOA.
But while China has some advantages over the United…
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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- China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
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