China
What the US ‘EAGLE Act’ means for Southeast Asia
Author: Karl Chee Leong Lee, Anbound Malaysia
Two months after its introduction to the US House of Representatives’ Foreign Affairs Committee, the ‘Ensuring American Global Leadership and Engagement (EAGLE) Act’ has passed the mark for it to be introduced in the House for a vote at a later stage. Southeast Asia should sit up and take note.
Despite failing to secure bipartisan compromise for this bill, both Democrats and Republicans agreed that Washington has to deal with China from the position of strength. This is true whether through the Democrats’ restrained approach or the Republicans’ hard-line slant on Indo-Pacific security, human rights and global governance.
The inclusion of ASEAN within Section 205 of the proposed Act speaks to the importance of Southeast Asia to the Foreign Affairs Committee. Altogether, there are 17 provisions within the Statement of Policy on Cooperation with ASEAN, with most of them pointing to the reaffirmation of Washington’s support for ASEAN. Still, two specific provisions warrant particular attention from ASEAN in its future engagement with the United States.
The fourth provision hints at the Foreign Affairs Committee’s desire to see ASEAN foster integration with like-minded powers that are aligned with Washington, either as security allies or partners. It calls for ASEAN to unite with Japan, South Korea, Australia, India and the European Union in the three domains of cooperation — namely, political, economic and security. As China is the most important trade partner for ASEAN and the foremost rival for the United States and its allies, it is clear the provision is made with thoughts of containing Beijing in mind.
Such a provision, should it be ratified, poses an unprecedented challenge to ASEAN’s long-held centrality principle. The centrality principle is predicated upon the Southeast Asian bloc being the driver of regional architecture — the processes for economic and security cooperation within the region and beyond.
The fourth provision of Section 205 will provide Washington with the legal pretext to lobby and pressure ASEAN to support the US-led Quad’s Indo-Pacific strategy that counters China. Thus, ASEAN should pay special attention to the progress of this omnibus bill and, if possible, engage with the Congressional political establishment. This may ensure the provision will not place the Southeast Asian bloc at a disadvantage in fostering equidistant relations with great powers.
The eighteenth provision further outlines Washington’s commitment to allocate resources to ASEAN as part of its Indo-Pacific strategy that supports the bloc’s crucial role in the region. While this provision is welcome for ASEAN, it directly contradicts with the fourth provision that downplays the Southeast Asian bloc’s centrality. What is more worthwhile to note is the US pledge to continue allocating resources to the Southeast Asian bloc — an opportunity that ought to be utilised effectively to realise a powerful and functional ASEAN in the Indo-Pacific.
There are also sections within the proposed EAGLE Act that warrant special attention for individual Southeast Asian countries. Section 223, or the Statement of Policy on Maritime Freedom of Operations in International Waterways and Airspace of the Indo-Pacific and Artificial Land Features in the South China Sea, is a clear example of this. Its twelfth provision calls for the development of multilateral mechanisms to ‘prevent destabilising behaviours and deter risky and dangerous activities by certain parties’, obviously referring to China’s activities in the South China Sea.
The catch is that the House Foreign Affairs Committee is banking on these multilateral mechanisms achieving a ‘common operating picture’ with Southeast Asian countries in the long term. Should such a military establishment be formed, it is bound to test Southeast Asia’s capability in maintaining its strategic balance with Washington and Beijing.
Finally, Section 604 enables the United States to execute its strategic competition with China in the area of infrastructure development. Known as the Promoting Responsible Development Alternatives to the Belt and Road Initiative (BRI), this Section authorises the Secretary of State, the Administrator of USAID and other agency chiefs to provide alternatives to development projects that may otherwise become part of China’s BRI.
This targeted approach will bring new development alternatives to most Southeast Asian countries, which are in need of new and sustainable infrastructure…
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. |
Read the rest of the original article.
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
- China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
- Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
- 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
- Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
- Vietnam’s Approach to China: A Balance of Cooperation and Struggle