China
Authoritarianism amplified in the Mekong region
Author: Nguyen Khac Giang, Victoria University of Wellington
The Mekong region started 2021 with a blow as the Myanmar military overthrew the country’s democratically elected government. The coup, which ironically happened on the 10th anniversary of Myanmar’s democratisation, cast a grim outlook over the region’s political landscape in 2021, which was also marred by COVID-19 and the great power competition between the United States and China.
The return to military dictatorship in Myanmar is an extreme case, but not the sole incident that marked a sharp authoritarian turn in the region. Thailand, despite ostensibly returning to democracy after the 2019 election, maintains an entrenched authoritarian regime with the increasing use of repressive tactics against protesters and the opposition. Cambodia has also transitioned from competitive to hegemonic authoritarianism with Prime Minister Hun Sen — the longest serving ruler in the world — becoming a king-like leader who recently mandated his son to take over his position in the future.
The region’s two communist regimes, Vietnam and Laos, organised their quinquennial party congresses where the top leaders were selected in early 2021. The results were not encouraging for those who wanted to see greater political change. In Vietnam, the 77-year-old party apparatchik Nguyen Phu Trong broke the two-term limit to become the Communist Party of Vietnam’s general secretary for a third time in a row amid stalled reforms and increasing repression of civil society. Laos promoted the 75-year-old Thongloun Sisoulith to the country’s top post.
Political regression could not have come at a worse time as the region struggled to deal with COVID-19. After a relatively successful 2020, the region was struck hard by the Delta variant which led to millions of infections and over 75,000 deaths. While Cambodia, Thailand and Vietnam have fully inoculated at least 65 per cent of their population, Laos struggles to reach 50 per cent. Less than 25 per cent of Myanmar’s population have received two doses.
Lockdown and border closures have also devastated the region’s export-led, labour-intensive and service-oriented economies. Exports bounced back in 2021 due to governments being less willing to apply harsh measures, but this growth was based on the low point of 2020. GDP growth in Thailand and Vietnam, the two economic powerhouses of the Mekong region, is estimated at modest rates of 1 per cent and 2.58 per cent respectively. Home to a young population of 250 million, finding a swift recovery is the region’s most urgent policy target in 2022.
Economic vulnerability and authoritarian tendencies amplify the region’s dilemma in navigating intensifying US–China competition. China continues to be the region’s biggest economic partner, yet its growing political influence and aggression — both on economic and maritime fronts — cause real concerns for some Mekong leaders, who understand that the economic coercion campaign against Australia could be used whenever Beijing wants to ‘teach them a lesson’.
The United States remains the favourite partner. But despite Washington’s support for regional development, particularly its enormous vaccine donations, Mekong capitals question US commitment. Its lacklustre role on the Myanmar issue, the disquiet with Thailand over its eroding democratic situation and the recent arms embargo against Cambodia show anything but effective engagement.
Despite security concerns, Mekong countries need Beijing’s deep pockets to boost their underdeveloped infrastructure and revive their damaged economy. China has used economic leverage to gain influence in Cambodia, secure Laos’ economic overreliance and start rapprochement with Myanmar’s military junta. An overreliance on China in the region poses bleak prospects for democracy. There are already signs of regional regimes learning repressive tactics from China, from the application of cybersecurity laws to the harsh treatment of civil society.
With low vaccination rates — particularly in Laos and Myanmar — and overstretched public health systems, the region remains vulnerable to new variants of COVID-19.
The Myanmar crisis is the biggest security threat to the Mekong region, threatening its own residents as well as creating instability across its borders with the exodus of refugees and a booming drug trade. Geopolitical tensions might escalate and sow division among regional countries, particularly as Cambodia — Beijing’s ‘ironclad brother’ — takes over 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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