China
Clarifying US commitments to Taiwan
Authors: Samuel Hui and Wang Kai-Chun, Taipei
On 7 July White House Asia tsar Kurt Campbell stated ‘we support a strong unofficial relationship with Taiwan; we do not support Taiwan independence’, drawing an even clearer line on the US position regarding Taiwan. This came after he affirmed in June that the Biden administration is confident in the current framework that governs relations between mainland China, Taiwan and the United States.
At the event in June, Campbell said that the administration ‘still believes the frameworks that have been developed over the last several decades between the United States, Taiwan, and China give us the best framework forward’. He further noted that the administration ‘has [already] emphasised the downsides of adjusting that framework’.
Avril Haines, the US Director of National Intelligence, also viewed Taiwan’s move towards de jure independence as a potential challenge. She argued that ‘already Taiwan is hardening, to some extent, toward independence as they’re watching, essentially, what happened in Hong Kong’. Haines said that such developments would ‘solidify Chinese perceptions that the US is bent on constraining China’s rise if Washington moves towards strategic clarity’.
The concerns described by Haines resonate with critics of US strategic clarity. There are fears that an ‘unconditional promise of US support’ will embolden pro-independence factions in Taiwan, many of whom want to unilaterally change the status quo. Independence fundamentalists are often dismissive of the threat posed by China and overly confident in US support. So the adoption of strategic clarity may limit Washington’s choices in the event of emboldened Taiwanese actions relating to China.
Strategic clarity in the form of unconditional support for Taiwan could tempt radicals towards de jure independence, risking full scale confrontation between the United States and China. Beijing could use the situation to rally the Chinese population against both Taipei and Washington under the banner of Chinese nationalism and increase risks of Chinese challenges to the regional status quo. For Washington, strategic clarity would forces it to be reactive — leaving US policymakers guessing where and when a confrontation might occur in the Taiwan Strait.
Aside from affirming the benefits of maintaining ambiguity, Campbell noted the fact that the United States is entering uncharted territories regarding a ‘new complex coexisting paradigm’ with China where competition and cooperation go hand in hand. Despite Biden’s characterisation of US–China relations as a battle between democracy and autocracy, high-level dialogues have continued.
Former US secretary of state John Kerry still made his trip to China, and Biden still virtually met Chinese President Xi Jinping at the recent US-led climate conference. To foster stability in this unprecedented ‘frenemy’ relationship, Washington figured some existing conflicts, like Afghanistan, must be settled, and some controversies, like Taiwan, should be stabilised.
From a Taiwanese perspective, it’s easy to interpret Washington’s China policy shifts as signs of support for Taiwan. Biden has maintained a tough stance on China, and Biden officials describe relations with Taiwan as ‘rock-solid’. But high ranking officials from China and the United States have started to communicate more frequently than during the Trump era.
On the one hand, Washington’s competitive posture against China has resulted in more hardline statements. But on the other hand, increasing Chinese aggression and the deteriorating power balance between Taiwan and China in the context of a shrinking US military budget also requires US leadership to restore interactions with Beijing and minimise miscommunications.
As the US–China relationship remains unpredictable, Washington’s attention will increasingly turn to Taiwan. But such focus does not necessarily imply unconditional support for Taipei. Such attention might instead be a way of compensating for a lack of confidence in US military deterrence without significantly provoking the Chinese, a policy which calls for a more cautious approach to the island deemed ‘the most dangerous place on earth’.
US support might be another part of managing the tilting power balance between Beijing and Washington — not as a political gesture or blind pass for Taiwanese actions. Washington supports Taiwan insofar as failing to do so threatens US interests — not just because it is a proud democratic…
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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