China
Xi demands respect at the US–China virtual summit
Author: Olivia Cheung, SOAS University of London
On 15 November 2021, Chinese President Xi Jinping and US President Joe Biden held their first virtual meeting. According to the White House’s readout, Biden told Xi that the two countries should establish ‘common sense guardrails to ensure that US–China competition does not veer into conflict and to keep lines of communication open’. Judging from the press release published by Xinhua, the Chinese state news agency, which is over six times the length of the White House’s readout, the precondition for any ‘common sense guardrails’ appears to be that Washington must treat China with ‘respect’.
Treating China with respect is the first of the three principles that Xi mentioned to Biden during their meeting. The other two were peaceful coexistence and win-win cooperation. This means that China not only wants the United States to not criticise or subvert its one-party system. It wants the United States to go a step further: to recognise, in words and in deeds, that China’s one-party system is morally on par with, if not superior to, a liberal democratic form of government.
That would mean Beijing wants Washington to accept that if there are elements of the rules-based international order that the Chinese leadership deems incompatible with its domestic political system, it is legitimate for China to diverge from them. For example, the rules-based international order defines human rights as inalienable individual rights; but China’s political system subordinates human rights to an absolute interpretation of national sovereignty and state (implying regime) security. There is little scope for Xi to respond to the criticisms against the Chinese government’s human rights performance with the sort of changes that Washington would like to see. China under Xi has become more adept at using international platforms, especially those in which it has the upper hand, like the Shanghai Cooperation Organization and the South-South Human Rights Forum, to show that its state-centric notion of human rights already enjoys widespread acceptance.
In another telling example of what putting China’s domestic political system above the rules-based international order looks like, Biden complained to Xi that China’s trade and economic practices are unfair to US workers and industries. The unfairness Biden alluded to originates in China’s top-heavy, party-led and state-centric economic system that makes use of national industrial policies, including massive subsidies and preferential policies, to groom state-owned enterprises and domestic private companies as globally competitive ‘national champions’. This distorts the playing field for foreign companies in China, and, as Chinese companies increasingly expand their global footprints, for companies outside China too.
But in Xi’s view, China’s top-heavy economic system is a part of its political system, where the Chinese Communist Party ‘superintends the whole situation and coordinates all sides’, mobilising resources from state and private sectors alike to achieve the strategic national goal of making China strong. This implies, in Xi’s view, that respecting China’s political system requires the United States to respect that China should not be held to account to the rules and norms of a free market economy, even if it is discriminatory toward non-Chinese companies.
Xi’s requirement for Biden to exercise self-restraint in relation to Taiwan should also be read in light of his expectation that the United States should treat China with respect. Xi told Biden that the way China pursues its core interests is utterly ‘defensive’. By implication, this includes China’s repeated military intimidation over Taiwan, which China sees as a part of its ‘sacred territory’.
The Xinhua press release states that Biden supports the ‘one China’ policy and opposes Taiwan’s independence. But it conspicuously leaves out any reference to the relevant statement, directed at China’s intimidation over Taiwan, in the White House’s readout: ‘the US opposes unilateral efforts to change the status quo or undermine peace and stability across the Taiwan Strait’. In lieu of it, the Xinhua release states that Xi warned Biden to ‘handle the relevant issues’ surrounding China’s sovereignty with ‘prudence’. This conveys Xi’s expectation of Biden to distance the United States from Taiwan diplomatically and militarily.
Besides respecting what China deems as its domestic affairs, Xi made it clear that…
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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