China
All Asia is saying is give economic peace a chance
Author: Editorial Board, ANU
As if the stakes in the ongoing US–China geopolitical competition weren’t high enough already, on 7 October the United States banned the transfer of key microchip technologies to Chinese entities.
With the chip ban the United States has signalled — despite the Biden administration’s denials — that it is committed to a strategy of containment not only in military, but now also in economic terms. This begins with thwarting China’s ambitions to dominate the development and production of high-end computing chips that will be central to strategically important industries like AI.
The chip ban may well achieve its intended effects in the short run: China’s chip manufacturing industry is still very dependent on US-developed hardware and software, and the local chip industry is in crisis as firms are cut off from key materials and personnel.
The longer-term effects of the policy are much less certain. China will continue to specialise where it can. Cutting China off from US technology gives Beijing extra incentive to keep throwing money at its own chip R&D, with a view to building an isolated tech supply chain that is even more geared towards state — and especially military — goals. What’s certain is that the chip ban will be disruptive far beyond the semiconductor industry, as global tech supply chains come to be driven less by the economics of comparative advantage than by the geopolitics of the world’s two biggest economies.
US National Security Advisor Jake Sullivan has described these strategies as surrounding a small yard with a high fence. Extraterritorial unilateral sanctions that hurt American tech firms, allies and partner economies are locking others into a larger American yard that may not look so attractive.
In tech just as in other industries, it’s pointless to try and build supply chains delinked from China — most of the region’s critical production chains geared for manufactured exports destined for outside the region run through China, driven by the enduring competitive advantage China has as a manufacturing base, despite rising costs and the recent COVID-zero policy.
Indeed, the Asia Pacific economy is not bound by a distinction between the United States and China — it’s an interdependent system in which China is an integral part.
Singapore’s Prime Minister Lee Hsien Loong made this point during a recent visit to Australia where he remarked that, notwithstanding the principle that certain economic exchange is subject to national security concerns, the chip ban could lead to ‘less economic cooperation, less interdependency, less trust, and possibly, ultimately a less stable world’.
At the very least, decoupling threatens to disturb a pan-regional system of trade and investment that is absolutely crucial to the prosperity not only of established, incumbent players — among them US allies like South Korea and Japan — but the development of relative newcomers to international tech production networks like Indonesia and Vietnam, important partners of the United States who would rather not be forced to choose between participation in rival US- and China-centric tech production chains that decoupling would inevitably create.
The chip ban is of a piece with an emergent US Indo-Pacific strategy that seeks to write China out of American attempts to shape multilateral rules and institutions across the region. That has obvious impacts on the interests of US allies across Asia, but more importantly, as Paul Heer warns in this week’s lead article, the impulse to premise US engagement and institution-building in the region on the goal of excluding China undermines US influence over the long run.
In US policy rhetoric, China is increasingly ‘framed in terms of the central threat it poses to openness, security and prosperity in the region. There appears to be little consideration of the possibility that Beijing might share some of its neighbours’ goals or other elements of Washington’s regional agenda.’ This inhibits cooperation between the two great powers on myriad issues in which the rest of the region has a stake — from climate change and energy to debt relief and rehabilitating the WTO.
Heer calls for a small-r realism about China that would open the door for such re-engagement beyond zero-sum geopolitical rivalry. ‘There is no doubt that cooperation would be complicated, given the inevitable rivalry and strategic mistrust between Beijing and Washington. But the alternative of a region divided between hostile camps would…
Business
Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
Gordonstoun school severed ties with Hampton Group over espionage allegations against chairman Yang Tengbo. He denies involvement and claims to be a victim of political tensions between the UK and China.
Allegations Lead to School’s Decision
Gordonstoun School in Moray has cut ties with Hampton Group International after serious allegations surfaced regarding its chairman, Yang Tengbo, who is accused of being a spy for the Chinese government. Known by the alias "H6," Mr. Tengbo was involved in a deal that aimed to establish five new schools in China affiliated with Gordonstoun. However, the recent allegations compelled the school to terminate their agreement.
Public Denial and Legal Action
In response to the spying claims, Mr. Tengbo publicly revealed his identity, asserting that he has committed no wrongdoing. A close associate of Prince Andrew and a former Gordonstoun student himself, Mr. Tengbo has strenuously denied the accusations, stating that he is a target of the escalating tensions between the UK and China. He has claimed that his mistreatment is politically motivated.
Immigration Challenges and Legal Responses
Yang Tengbo, also known as Chris Yang, has faced additional challenges regarding his immigration status in the UK. After losing an appeal against a ban enacted last year, he reiterated his innocence, condemning media speculation while emphasizing his commitment to clear his name. Gordonstoun, on its part, stated its inability to divulge further details due to legal constraints.
Source : Gordonstoun cuts ties with business chaired by man accused of spying for China
Business
China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
The Chinese government demolished the Rebiya Kadeer Trade Center in Xinjiang, affecting Uyghur culture and commerce, prompting criticism from activists amid concerns over cultural erasure and human rights violations.
Demolition of a Cultural Landmark
The Chinese government recently demolished the Rebiya Kadeer Trade Center in Urumqi, Xinjiang, a vital hub for Uyghur culture and commerce, as reported by VOA. This center, once inhabited by more than 800 predominantly Uyghur-owned businesses, has been deserted since 2009. Authorities forcibly ordered local business owners to vacate the premises before proceeding with the demolition, which took place without any public notice.
Condemnation from Activists
Uyghur rights activists have condemned this demolition, perceiving it as part of China’s broader strategy to undermine Uyghur identity and heritage. The event has sparked heightened international concern regarding China’s policies in Xinjiang, which have been characterized by allegations of mass detentions and cultural suppression, prompting claims of crimes against humanity.
Rebiya Kadeer’s Response
Rebiya Kadeer, the center’s namesake and a notable Uyghur rights advocate, criticized the demolition as a deliberate attempt to erase her legacy. Kadeer, who has been living in exile in the U.S. since her release from imprisonment in 2005, continues to advocate for Uyghur rights. She has expressed that her family members have suffered persecution due to her activism, while the Chinese government has yet to comment on the legal ramifications of the demolition.
Source : China Demolishes Uyghur Business Landmark in Xinjiang – Shia Waves
China
China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
China’s private pension scheme, previously piloted in 36 cities, will roll out nationwide on December 15, 2024, enabling workers to open tax-deferred accounts. The initiative aims to enhance retirement savings, address aging population challenges, and stimulate financial sector growth.
After a two-year pilot program, China has officially expanded its private pension scheme nationwide. Starting December 15, 2024, workers covered by urban employee basic pension insurance or urban-rural resident basic pension insurance across the country can participate in this supplementary pension scheme. This nationwide rollout represents a significant milestone in China’s efforts to build a comprehensive pension system, addressing the challenges of a rapidly aging population.
On December 12, 2024, the Ministry of Human Resources and Social Security, together with four other departments including the Ministry of Finance, the State Taxation Administration, the Financial Regulatory Administration, and the China Securities Regulatory Commission, announced the nationwide implementation of China’s private pension scheme effective December 15, 2024. The initiative extends eligibility to all workers enrolled in urban employee basic pension insurance or urban-rural resident basic pension insurance.
A notable development is the expansion of tax incentives for private pensions, previously limited to pilot cities, to a national scale. Participants can now enjoy these benefits across China, with government agencies collaborating to ensure seamless implementation and to encourage broad participation through these enhanced incentives.
China first introduced its private pension scheme in November 2022 as a pilot program covering 36 cities and regions, including major hubs like Beijing, Shanghai, Guangzhou, Xi’an, and Chengdu. Under the program, individuals were allowed to open tax-deferred private pension accounts, contributing up to RMB 12,000 (approximately $1,654) annually to invest in a range of retirement products such as bank deposits, mutual funds, commercial pension insurance, and wealth management products.
Read more about China’s private pension pilot program launched two years ago: China Officially Launches New Private Pension Scheme – Who Can Take Part?
The nationwide implementation underscores the Chinese government’s commitment to addressing demographic challenges and promoting economic resilience. By providing tax advantages and expanding access, the scheme aims to incentivize long-term savings and foster greater participation in personal retirement planning.
The reform is expected to catalyze growth in China’s financial and insurance sectors while offering individuals a reliable mechanism to enhance their retirement security.
| 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.
- Gordonstoun Severs Connections with Business Led by Individual Accused of Espionage for China
- China Dismantles Prominent Uyghur Business Landmark in Xinjiang – Shia Waves
- China Expands Nationwide Private Pension Scheme After Two-Year Pilot Program
- How a scandal over sanitary pads is shaping feminist activism in China
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