China
Why China wants to power Argentina’s air force modernisation
Author: Loro Horta, Dili
In early May, several media outlets reported that a Chinese delegation visited Argentina to discuss a major arms deal. The agreement could be a game changer for Argentina and South America’s arms market.
According to reports, the two governments discussed the possibility of selling Argentina Sino–Pakistan JF-17 fighter jets. If the deal goes ahead, this will be the most advanced fighter jet offered by China to the region and could pave the way for future arms deals with other South American countries.
This is not the first time that a major arms deal between China and Argentina has been announced. In 2015, the two countries signed a deal for Argentina’s purchase of several weapons systems. Estimated at US$1 billion, the deal included warships, armoured vehicles and fighter jets. That same year, Argentina’s Defence Minister Agustin Rossi announced that the JF-17 was among the items to be purchased from China.
These agreements were signed during the presidency of Cristina Fernandez de Kirchner (2008–2015), the left-wing and Peronist leader who built close ties with China. The election of right-leaning president Mauricio Macri in December 2015 led to the cancellation of these projects. But since 2019, with the return of a Peronist government and with Kirchner as Vice President, these arms deals are being resuscitated.
Argentina’s financial crises and lack of currency with which to acquire expensive weapon systems have long been an obstacle for China selling defence equipment to Argentina. Yet several factors have emerged that increase the likelihood of success for Chinese weapons companies.
The Argentine Air Force has reached a critical point in its fighter jet inventory. For decades, the French-built Dassault Mirage III interceptor aircraft was the backbone of the Argentinian fighter jet force. In 2015, due to aging aircraft and budget constraints, the Argentine Air Force was forced to retire its fighter jets.
For six years now, Argentina has not possessed fighter interceptors, despite neighbouring countries Brazil and Chile owning modern fighter jets. Argentina has tried to buy new jets from several Western nations, but the UK government has kept an effective arms embargo on the country since the 1982 Falklands War.
The United Kingdom is particularly sensitive to acquisitions of fighter jets, remembering that most UK casualties in the Falklands War were inflicted by the Argentine Air Force. In 2015, Argentina tried to acquire Swedish JAS 39 Gripen fighter jets, but Sweden backed down from the sale due to pressure from London. South Korea also withdrew its offer to sell Argentina fighter jets due to pressure from the United Kingdom. Even the fact that the ejector seat on the JF-17 is built by a UK company has been a point of contention.
Not only are Western arms markets highly restricted in Buenos Aires, but Argentina remains on the verge of bankruptcy. Chinese fighter jets are cheaper than Western ones. China also provides flexible modes of payment and periods of good will, where recipients are not required to pay for several years or can pay in instalments. With Venezuela, US sources claim that China sold weapons on generous terms in exchange for oil at low prices.
The fact that China is willing to jointly produce the JF-17 and share its technology with Argentina further sweetens the deal. Argentina has long preferred agreements that allow for technology transfers in an effort to strengthen its defence industry. Both nations are also negotiating licensing for Argentina to produce Chinese helicopters and armoured vehicles.
While some Argentinian politicians and some sectors in the military have objected to close military cooperation with China, they have not come up with any alternatives. All branches of the Argentinian military, not just the air force, are in urgent need of modernisation.
If the deal goes ahead, the JF-17 project could lay the ground for China’s emergence as a major weapons supplier in a region once dominated by the United States. Yet Beijing’s strategy of financial flexibility with Argentina goes beyond weapons.
Argentina is the second-largest country in Latin America and a member of the G20. The country’s large and sparsely populated territory is rich in natural resources. In March, Argentinian media, citing sources in the President’s office, reported that China and Argentina were negotiating 15 infrastructure projects worth US$30 billion. Chinese companies have invested an estimated US$15 billion in the country’s oil sector. Argentina is…
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
- U.S. national debt is its Achilles’ heel, but China sees it as an opportunity
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