China
Taliban takeover is bad news for China
Author: Michael Clarke, UTS and ANU
The withdrawal of the United States from Afghanistan has prompted much breathless commentary, including on the implications for China’s role in the region. But despite predictions of sweeping geopolitical gains, China will be observing the Taliban takeover with significant concern.
One narrative suggests that US withdrawal from Afghanistan will enable China to swoop in and scoop up the country’s mineral resources or broker a partnership with the Taliban to make Afghanistan a vital part of its Belt and Road Initiative. Supposedly, it may even prompt Beijing to ‘prosecute its interests with regard to Taiwan’ in the near term.
Such commentary is hyperbolic. It ignores both the record of China’s relationship with the Taliban when they controlled most of Afghanistan in the 1990s and the hierarchy of Beijing’s interests in Central Asia. China’s defensive interests — such as ensuring no spill-over of security threats from Afghanistan into Xinjiang — remain pre-eminent. Its more positive interests, from economic investment through to pushing for a greater role for the Shanghai Cooperation Organization (SCO), come a distant second.
Many analysts ignore these factors in favour of the distorting lens of US–China strategic competition. Executive Director of the Australian Strategic Policy Institute Peter Jennings, for instance, claims that the ‘attitude of Beijing … to what’s happened in Afghanistan will probably be one of absolute delight’ and that such a set-back for US credibility will have repercussions throughout the Indo-Pacific.
It is true that Chinese officials and media are expressing schadenfreude over the US ‘defeat’ in Afghanistan. In a phone call with US Secretary of State Antony Blinken, Foreign Minister Wang Yi made a thinly veiled jab at the US record of regime change interventions — noting that events in Afghanistan ‘proved once again that a regime cannot stand without the support of the people’. The reliably jingoistic Global Times asserted that Washington’s Afghanistan failure contrasts US ‘arrogance to transform other countries’ with ‘China’s values of world order and governance’.
This rhetorical point-scoring is also coupled with caution and even apprehension about China becoming overly involved in the country. China’s defensive interests remain at the forefront of its Afghanistan calculations.
Qian Feng of Tsinghua University notes the full mix of opportunities and risks that confront China — from perceived threats to Xinjiang to the potential to ‘participate in Afghanistan’s reconstruction’ and great power ‘games’. His assesment bears the stamp of Beijing’s long-standing hierarchy of interests. With respect to the threat to Xinjiang, Qian argues — in terms almost identical to those espoused by China in the 1990s — that ‘the turmoil in Afghanistan spills northward to Central Asian countries, and southward to Pakistan and other countries, and then to China’. Regardless of who governs Afghanistan, China’s core interest there is to ensure that Kabul continues the fight against terrorism.
As for an emerging great power ‘game’ for influence in the country, Qian notes that Washington’s influence in Afghanistan will decline significantly, leaving China, India, Pakistan, Russia and the Central Asian states as important stakeholders.
In the recent past, China attempted to use the SCO to mediate the divergent interests that this group of states has in Afghanistan. But Beijing lost its patience with the unwieldy SCO and is now doing more with minilaterals such as its Quadrilateral Cooperation and Coordination Mechanism with Tajikistan, Pakistan and Afghanistan, and the China+C5 group (China and the Central Asian republics). These efforts remain heavily focused on securing Xinjiang from any ‘terrorist’ contagion from Afghanistan.
Smaller conclaves like China+C5 allow Beijing to set the agenda without compromising with regional players such as Russia and India. They also clearly reveal the hierarchy of China’s interests. The joint statement of the May 2021 China+C5 meeting, for example, announced a number of new economic and infrastructure initiatives but also underscored Chinese caution about Afghanistan, speaking in vague terms about the grouping’s desire for a ‘political settlement’ to the conflict. Elsewhere, Wang has spoken about assisting Afghanistan to achieve a ‘soft landing’.
In short, Beijing remains concerned that Afghanistan doesn’t once again become a source of regional…
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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