China
Japan leans forward on China–Taiwan tensions
Author: Sheila A Smith, CFR
Today Beijing has far greater military resources to bring to bear on its relations with its neighbours and increasing pressure on Taiwan’s defences by the Chinese People’s Liberation Army (PLA) has many in Washington and Tokyo worried about Beijing’s intentions. China is now the top priority for the US–Japan alliance, as the foreign and defence secretaries and cabinet ministers of both nations made clear in their joint statement for the Japan–US Security Consultative Committee (2+2) in March 2021.
A month later, Japanese Prime Minister Yoshihide Suga and US President Joe Biden also called out China for its behaviour, raising concerns about human rights issues, maritime challenges across the region and economic coercion imposed on trading partners. Their statement suggests renewed allied concern about rising tensions there.
Japan will have no choice but to prepare to defend itself in the case of a conflict across the Taiwan Strait. Proximity to Taiwan — only a hundred or so kilometres separate Taiwan from Japan’s southernmost islands — makes the possibility of conflict there of deep interest to Japan’s Self-Defense Forces (SDF). In addition, Okinawa hosts a considerable array of US military forces, making it a likely staging area for any US assistance to Taiwan’s defences.
Japanese Deputy Prime Minister Taro Aso testified to the Diet on 5 July that a military crisis across the Taiwan Strait would threaten Japan’s survival. This was a nod to the 2015 security laws that laid the groundwork for the SDF to join with other national militaries in case of a conflict.
But the consequences of Tokyo’s decision-making on Taiwan will be grave. China remains one of Japan’s largest trading partners and the PLA regularly operate in and through Japan’s waters and airspace.
The regional military balance around Japan has been shifting in China’s favour. The clash between Beijing and Tokyo over a long-dormant sovereignty dispute over islands in the East China Sea a decade ago suggested that China was willing to use its maritime forces, both coast guard and navy, in support of its territorial claims.
Military action by China against Taiwan would provoke the United States into a military response. Many experts argue that China has little to gain from a direct attack on Taiwan. Yet, outgoing Indo-Pacific commander Admiral Philip Davidson told the US Congress that he thought the PLA would be able to launch such an attack within the next six years. A US response to Chinese aggression against Taiwan would be calibrated to the nature of that threat. Chinese pressure on Taiwan could present itself as grey-zone tactics or as cyberattacks. Both could create unprecedented challenges to Taiwan’s economic vitality and territorial integrity.
Regardless of the intensity of such a confrontation, Tokyo would be faced with difficult decisions about how Japanese and US forces would cooperate in response. Japan’s role would likely involve two distinct actions. First, Japan would be asked to provide support for US operations. Second, Japan’s Self-Defense Forces would need to consider how best to defend Japanese territory during a conflict.
Not surprisingly, opinion within Japan is divided. There are those who believe that Japan must play a role with the United States should China use force against Taiwan. Defence ministry officials clearly see a need to develop more clarity on how the alliance would respond.
Minister of Defence Nobuo Kishi’s political deputy, State Minister of Defence Yasuhide Nakayama, has repeatedly declared to the media that it is time to ‘wake up’ regarding Taiwan. The newly released 2021 Defence White Paper — which drew considerable attention for its anime-inspired samurai on the cover — clearly stated that cross-Strait tensions were an important factor in considering Japan’s security.
Political leaders, even those within the Liberal Democratic Party, are unsure of what steps to take next. Prime Minister Suga has taken a more reserved stance than his deputy. Sharing fully US and Japanese assessments of Chinese behaviour across the Taiwan Strait and in the vicinity of Japanese territory is indispensable, but care must be taken to ensure the politics of the moment take a back seat to the need for alliance readiness.
Alliance consultations will move ahead by year’s end, and Japan should be prepared to develop its options in three areas: which bases and facilities would be available to US forces in a Taiwan contingency; what priorities and principles for…
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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