China
Countering China and North Korea’s mad dash for missiles
Author: Jaganath Sankaran, University of Texas
China and North Korea have accumulated a significant arsenal of ballistic missiles. China is estimated to possess as many as 1500 short-range ballistic missiles (SRBMs) and 450 medium-range ballistic missiles. These missiles could target the United States and allied military bases in a Taiwan Strait confrontation. North Korea has close to 1000 SRBMs and approximately 300 medium-range ballistic missiles that can reach targets in South Korea and Japan.
In 2017, former director of US National Intelligence Daniel Coats testified to the US Congress that North Korea has developed precision conventional ballistic missile capabilities. The US Department of Defense 2019 Missile Defense Review also declares China’s regional ballistic missiles as a prominent weapons system in its ‘efforts to counter US military capabilities in the Indo-Pacific’ and ‘deny the United States the capability and freedom of action to protect US allies and partners in Asia’. Fortunately for Washington, it has paths towards mitigating these threats.
The United States and its allies could respond in kind and deploy missiles arrayed against Chinese and North Korean assets to establish deterrence. They could expand missile defences in the Asia Pacific region to mitigate the threat. Finally, the United States could attempt arms control mechanisms to contain, and potentially reverse, the proliferation of missiles. All of these options offer possibilities and challenges.
Understanding the motivations behind Chinese and North Korean missile pursuits will enable the evaluation of the effectiveness of these options. Beijing and Pyongyang have different ideas about the role missiles play in deterrence and warfare. Engaging in arms control, deploying countervailing offensive arms, and preparing a robust missile defence against China and North Korea present unique challenges.
North Korea does not see its missiles as a means towards reunification or as assets in a prolonged war. Rather, they are instruments of coercion and leverage to, for example, dissuade Japanese leaders from offering material or military support to South Korea or the United States in a military contingency. North Koreans hope to successfully do what the Iraqis failed to achieve in the 1991 Gulf War. The Iraqis had fired several missiles into Israel and threatened chemical weapons attacks on Israel, attempting unsuccessfully to unravel the broad coalition under US command.
The North Koreans hope to unravel Japanese support for a US-led military campaign using the threat of missile bombardment. The North Koreans also aim to use their missile arsenal to target major military airbases and naval disembarkation ports in the Asia Pacific region to prevent the assembling of US and allied forces to foreclose a Desert Storm-style military operation against it.
For North Korea, their regional missiles are tools of deterrence and defence to avoid catastrophic military defeat. Consequently, they may be unwilling to engage in standalone arms control or reductions in conventional ballistic missile arsenals unless there is a significant shift in the nature of the country’s relationship with the United States. This means that, in the near term, a combination of hardened population shelters and limited missile defences may be the most viable countermeasure to the North Korean missile threat.
Meanwhile, China has articulated a robust war-fighting strategy using its conventional ballistic missiles. Chinese military doctrine documents discuss ‘penetrating the enemy’s air defence system, striking the enemy’s in-depth targets, and seizing air and naval dominance in future local wars’. These documents speculate a missile campaign designed to degrade US and allied air defence operations, followed by an air campaign that uses cheaper precision-guided munitions to exact significant operational damage to US and allied operations.
These are still speculative concepts and may not be easily achieved by Chinese rocket forces. But evidence indicates that China is training to execute these styles of campaigns and that Chinese rocket forces have attained limited ability to execute pre-planned joint fire against targets in the Pacific theatre.
China has integrated its conventional ballistic missiles within its regional military strategy. In the near term, arms control measures such as a version of the Intermediate-Range Nuclear Forces Treaty seem improbable. US regional missile defence deployments and other defensive measures will have to deter and…
China
India Initiates a Shift in Security Focus Regarding China Amid Economic Ambitions
Since 2014, India’s Modi government aimed to boost manufacturing through the Make-in-India campaign. However, tensions with China led to increased scrutiny of Chinese investments post-COVID-19, limiting their influence.
Modi’s Manufacturing Push
Since Narendra Modi took office in 2014, his administration has focused on boosting the manufacturing sector’s contribution to India’s GDP. The launch of the Make-in-India campaign aimed to enhance manufacturing capabilities and attract foreign direct investment (FDI), even in sensitive sectors such as defense and railways, thereby fostering economic growth.
Shift in Economic Relations
During this period, Chinese companies like Oppo and ZTE sought to capitalize on India’s manufacturing potential. However, the 2020 COVID-19 pandemic highlighted the need for safeguard measures against potential foreign takeovers. In response, India revised its FDI policy to increase scrutiny on investments from neighboring countries, particularly targeting Chinese investments, which now require governmental approval.
Geopolitical Tensions and FDI Impact
Tensions escalated after the June 2020 Galwan clash, severely straining Indo-China relations. This ongoing border standoff has posed challenges to the evolving dynamics between the two nations. As a result of these geopolitical tensions and pandemic-era policies, Chinese capital inflow to India constituted merely 0.43% of the total FDI from April 2000 to December 2021, highlighting a significant downturn in bilateral economic ties.
Source : India begins a rebalance of security concerns over China and economic aspirations
Business
BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
China’s Shanghai court ruled cryptocurrencies are property, boosting optimism in the crypto industry while maintaining a ban on business transactions. This may signal a shift in future regulations.
China’s Ruling on Cryptocurrency
In a pivotal decision for the nation and its BRICS alliance, China has officially classified cryptocurrency as property while maintaining prohibitions against business transactions involving digital assets. A notable ruling from the Shanghai Songjiant People’s Court affirmed cryptocurrencies as property, sparking optimism within the crypto industry regarding future regulations.
Implications for the Crypto Industry
As cryptocurrencies gain significance globally, the Chinese ruling is viewed as a potential-positive shift amidst ongoing restrictions. While individuals can hold virtual currency, businesses remain barred from engaging in investment transactions or issuing tokens independently. This decision has generated anticipation for more accommodating regulations in the future.
Future Prospects for Cryptocurrency in China
Experts like Max Keiser believe this ruling indicates China’s growing acknowledgment of Bitcoin’s influence. As BRICS nations explore increased cryptocurrency utilization in trade, this legal shift could enhance market demand and lead to greater acceptance of cryptocurrencies as a legitimate asset class, setting the stage for potential developments in 2025.
Source : BRICS: China Rules Crypto as Property, Bars Business Holdings
China
Digital Taxation in China: Effects on Corporate Tax Risk Management and Compliance Strategies
Tax digitalization in China enhances efficiency and accuracy in tax administration through AI and technology. Significant advancements include online services, e-invoicing, and data integration, improving risk management. The government targets further reforms by 2025 to establish a robust intelligent taxation system.
Tax digitalization, also known as “digitalized tax administration” or “tax administration by data,” is gaining momentum in China. Enabled by digital technologies and artificial intelligence, Chinese tax authorities have significantly improved the efficiency and accuracy of tax administration. As a result, tax risks are now easier to identify, and tax audits have become more focused and targeted.
The Chinese tax bureau has made significant efforts to advance tax administration through digital upgrades and intelligent transformation. By utilizing modern information technology, the tax authorities have established platforms such as the electronic tax bureau, which enables online processing of tax registration, filing, and payments. Additionally, the promotion of electronic invoicing and the Golden Tax IV system has improved the efficiency and accuracy of tax administration.
This digital landscape allows tax authorities to integrate data from various sources, including invoices, banking information, business records, and customs data. Such integration facilitates more accurate identification of potential tax risks.
This article explores the impact of tax digitalization on businesses in China, emphasizing the evolving dynamics of tax risk management, particularly regarding data supervision.
At the opening ceremony of the 5th Belt and Road Initiative Tax Administration Cooperation Forum on September 24, 2024, Hu Jinglin, Commissioner of the State Taxation Administration (STA) of China, delivered a speech outlining the efforts of Chinese tax authorities to enhance tax administration and efficiency. He emphasized the importance of advancing tax governance through data, highlighting the STA’s commitment to leveraging data and algorithms for intelligent tax management.
Currently, a pilot program for fully digitalized electronic invoices (e-fapiao) has been expanded nationwide, alongside the launch of a unified electronic tax bureau. Additionally, a smart office platform for tax personnel is under development. These systems aim to provide intelligent services for taxpayers and enable tax officers to deliver differentiated and precise services based on dynamic credit risk assessments.
Furthermore, according to a document released by the General Office of the CPC Central Committee and General Office of the State Council in 2021, titled “Opinions on Further Deepening the Reform of Tax Collection and Administration,” China aims to achieve significant progress by 2025 in reforming its tax administration system. In particular, it aims to establish a robust and intelligent taxation framework and develop a first-class intelligent administrative application system, thereby improving tax law enforcement, service, and regulatory capabilities.
| 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. |
Read the rest of the original article.
- India Initiates a Shift in Security Focus Regarding China Amid Economic Ambitions
- BRICS: China Classifies Crypto as Property and Prohibits Business Ownership
- Digital Taxation in China: Effects on Corporate Tax Risk Management and Compliance Strategies
- Farms to fame: How China’s rural influencers are redefining country life
- Wegovy: The Popular Weight-Loss Drug Now Available in China
- China Implements New Measures to Increase Foreign Investment in A-Share Market
