China
The CPTPP isn’t just a trade deal for Taiwan, it’s a survival plan
Author: Shihoko Goto, Wilson Center
When Taiwan made its bid to join the CPTPP in September, a week after China officially declared its interest in joining, there was speculation about the implications of the timing. Taipei could not afford to wait to request entry once Beijing got in the game. Yet the CPTPP is at the heart of mapping out Taiwan’s long-term survival, not just a means to remain competitive in global markets.
Taipei is facing formidable military pressure from Beijing. In a television interview in October, Taiwanese President Tsai Ing-wen stressed that threats from Beijing were growing daily. In response the United States has galvanised like-minded countries within and beyond the Indo-Pacific to prepare to come to Taiwan’s defence should the need arise.
Yet the schism grows between the United States (and its partners and allies) preparedness to come to the physical defence of Taiwan and their readiness to support Taiwan’s ability to continue remaining economically competitive.
For now, Taiwan’s economy is not simply doing well — it is flourishing. Its unique position in the global supply chain has become all too clear during the COVID-19 pandemic. Taiwan’s GDP expanded in 2020 when the majority of economies worldwide shrunk drastically. Demand for its technology exports continues to be robust. Taiwanese industries play a pivotal role in supplying international markets with high-capacity semiconductors. Domestic investment remains strong, and the wooing of Taiwanese chipmakers by overseas manufacturers continues to intensify.
Nevertheless, the economic environment that Taiwan may find itself in the long term is as fraught with risks as its security landscape — but without the same sort of concerted regional support. Taipei finds itself amid a newly emerging regional trade architecture from which it is increasingly at risk of being marginalised. Taiwan’s bid to join the CPTPP not only highlights the risk of marginalisation that it faces as the Indo-Pacific becomes the centre of multilateral and bilateral trade deals, but it also underscores the need for a greater US economic presence in the region. The lack of a collective economic security vision, unlike a roadmap for regional military security, makes Taiwan’s future prospects more vulnerable.
In theory Taipei has a fighting chance of joining the CPTPP, given that it is on equal footing with Beijing. Both are seeking membership at the same time and will have to meet the same requirements for entry. Taiwan should have the upper hand, since it has met more of the criteria for accession and is also prepared to make the necessary concessions to be considered. And unlike the Regional Comprehensive Economic Partnership agreement, of which China is a founding member, current CPTPP members including Japan, Australia and New Zealand have stepped up efforts to vocalise support for Taiwan.
Still, whether the 11 existing CPTPP members have the political will to risk a significant fallout with China for allowing Taiwan to join is debatable. The members need to consider aligning the security risks they have verbally committed to taking in Taiwan’s defence with the risks they should be prepared to take in defence of Taiwan’s economic survival.
The Biden administration has overcome its reluctance to enter new trade deals and has resumed negotiations with Taipei. The rapidly shifting landscape since the bilateral Trade and Investment Framework was signed in 1994 requires more than an end to the longstanding conflict over agricultural import restrictions or lowering tariffs more broadly. What Taiwan needs most is a demonstration of firm US and regional long-term commitment to support the government and its economy as much as its military defence.
Taiwan has thrived to date as a global player despite having only signed a limited amount of trade deals with select countries, including economic cooperation agreements with New Zealand and Singapore. But as the Indo-Pacific becomes the epicentre of integrated deals that will make trade far more efficient, cost-effective, and harmonised, Taiwan is in danger of becoming less attractive for investors precisely because it is not part of the trade networks.
For Taiwan to remain a flourishing and prosperous democracy, it needs not only strong defensive support from its partners, but also their backing to remain an integral part of the global economy. What’s more, its efforts to join the CPTPP must be acknowledged as a political manoeuvre as much as economic policy. By joining the CPTPP, the…
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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