China
Japan–China relations back on track
Author: Shin Kawashima, University of Tokyo
At a Japan–China summit on 17 November 2022, Japanese Prime Minister Fumio Kishida and Chinese President Xi Jinping met face-to-face for the first time in three years. 2022 marks the 50th anniversary of normalised diplomatic relations between Japan and China. A meeting full of smiles allowed both countries to maintain appearances and celebrate the occasion.
Kishida and Xi’s meeting was important in several ways. It put bilateral relations back on track — the trajectory pursued by former Japanese prime minister Shinzo Abe from 2014. Though major issues such as the Senkaku Islands dispute cannot be resolved in the short term, this improvement will allow top-level exchanges to be held regularly. In other words, it is a second normalisation of relations. In November, both a Japan–ROK summit and a China–ROK summit were held, making it possible to also realise a Japan–China–ROK trilateral summit.
The Xi–Kishida meeting showed that despite tensions, both sides are trying to avoid conflict. At their summit, both countries agreed to swiftly begin operations for a hotline between defence authorities under the maritime and air communication mechanism. Leaders also agreed to strengthen communication through the Japan–China security dialogue. Previously, even negotiations to build such mechanisms could not be held.
In authoritarian regimes like China, leaders can be briefed based on biased information. Because of this, even the exchange of views between Japan and China is meaningful from a communication standpoint. Chinese Coast Guard vessels frequently enter Japan’s territorial waters, but this was not much of an issue when it happened right before the summit meeting. Since China is increasingly active in territorial disputes with Japan — for example, Chinese public vessels are more frequently entering the territorial waters of the Senkaku Islands — frameworks to prevent the amplification of problems are needed more than ever before.
The meeting showed that China continues to value stable relations with major powers, as Xi mentioned at China’s 20th National Party Congress. For this reason, he also recently met with German Chancellor Olaf Scholz and US President Joe Biden. The summit with Japan is part of this policy.
Some argue that Xi’s goal in meeting with Kishida was to discuss economic issues. Domestically, China currently faces substantial economic problems. But China is not as economically reliant on the West as it was during its reform and opening-up. Even as China maintains supply chains with the West, its biggest trading partner is ASEAN. This means that China is decreasing its dependence on Western supply chains.
Japan and China reaffirmed the possibility of ‘cooperation’ at their November meeting. Kishida emphasised the importance of a ‘constructive and stable relationship between Japan and China’. President Xi also stated that ‘there is a wide range of common interests and possibilities for cooperation between the two countries’. As the security environment around Japan has seriously deteriorated, the two countries agreeing to at least explore the possibility of cooperation is significant.
But even as Japan and China both try to avoid conflict and promote cooperation, China’s military pressure on its neighbouring countries continues. China–Russia joint military exercises in waters around Japan have increased. Japan is under military pressure from three countries — China, Russia and North Korea. A new national security policy will be adopted in line with three key newly revised documents on national security. These documents — the National Security Strategy, National Defense Program Guidelines and Medium Term Defense Program — are expected to be announced in December 2022.
On the other hand, China is spreading the discourse at home and abroad that it is being encircled by US-led efforts such as the Quad, AUKUS and Five Eyes. On the Taiwan issue, China argues that military tensions are rising in the Taiwan Strait as a result of US and Japanese support for the pro-independence administration of Taiwanese President Tsai Ing-wen. China never says that these problems are caused by its own military power expansion, instead claiming that other countries create the issues.
Though Japan–China relations may actually be tracking towards improvement, it is only to the extent of leaders holding top-level meetings. It is important that the two countries establish a communication mechanism, but Chinese Coast Guard actions near…
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
- Yakult Unveils Restructuring Plans for Its China Operations | ESM Magazine
- Italy’s Strategic Shift Towards China After Exiting the Belt and Road Initiative