China
What does China want from the next US president?
Taiwan’s President Lai Ching-te asserts sovereignty amid Chinese military threats following his National Day speech. Beijing desires reunification, while U.S. relations with Taiwan remain complex and pivotal.
During a Taiwan National Day speech on October 10, Taiwanese president Lai Ching-te said that Taipei was determined to defend Taiwan’s sovereignty against “annexation and encroachment”, and emphasised that “China has no right to represent Taiwan”.
China’s response was swift. Less than a week after Lai’s provocative speech, a record 153 Chinese war planes swarmed and surrounded Taiwan during a Chinese military exercise over 24 hours. Beijing’s intention was simple: issue Taipei a “stern warning” for what China considers a “separatist act”.
Beijing sees the island as a “sacred and inseparable part of China’s territory” that must return to the fold. The Taiwanese president sees things differently. Currently, the self-governing island has a different political system, and few Taiwanese are in favour of reunification with China.
Though Washington doesn’t have diplomatic relations with Taipei officially, it does have regular communication through back channels and a strong economic relationship. The island is a key US trading partner and is a major supplier of semiconductors which are critical to the production of computers and other technologies. It also sells arms to Taiwan, although this has reduced significantly under Joe Biden.
China has not ruled out taking Taiwan by force, and if it does, the US might come to the self-ruling island’s defence as indicated by Washington in the past.
China holds extensive military exercises around the island of Taiwan in October 2024.
But Xi will be hoping the outcome of the 2024 US presidential election might bring a leader that would have a different attitude to Taiwan as well as helping China resolve its economic storm, which has resulted in a rising number of protests. So, between an outspoken Donald Trump and a seemingly even-tempered Kamala Harris, does Beijing have a favourite? And do either of them offer Xi anything new?
Taiwan and Xi’s legitimacy
Aside from Mao Zedong, the founder of the People’s Republic of China, Xi is the only sitting Chinese head of state without term limits and whose political ideology is enshrined in the Chinese constitution.
Xi could potentially prove his place in history by resolving China’s economic crisis. However, Beijing’s increasing isolation from the west due to its support of Russia’s Ukraine conquest makes this doubly hard.
Like it or not, Xi might have to ramp up whatever agenda Beijing has for Taiwan. If he could make sufficient progress towards unification, he may be hailed as one of the greats of the Chinese Communist Party, which would consolidate his status within the party, and distract from the nation’s economic woes.
Unlike Harris, who appears to take take alliances and partnerships seriously, Trump questions the benefits of many alliances forged by the US. In fact, the few times that he spoke about Taiwan centres on how the island state has taken America’s semiconductor business, and should pay more to the US for its defence.
So, would Trump come to Taiwan’s aid if China does invade Taiwan? Given the importance of semiconductors to electronics and AI, he just might. But Trump also has a reputation as a “dealmaker-in-chief”, so he might just cut a deal with Beijing, which erodes Taiwan’s independence. And that is likely to worry Taipei.
The Russia dilemma
As Russia’s “partner of no limits”, China has been supplying Russia with technology that fuels Russia’s war machinery against Ukraine. But this has strained Sino-western relations and earned Beijing trade and import restrictions, which hampers China’s economic recovery.
China could halt its aid to Russia to avoid western scrutiny, but that is not likely. Beijing needs a strong Russia to be a viable ally in its battle against a US-led world order, and to avoid being the focus of the west if Russia falters amid its conquest in Ukraine.
While Harris backs Kyiv and sees the war as a strategic and moral issue, Trump has criticised US aid to Ukraine. He also believes that Kyiv should provide concessions to Russia to end the war that Putin started in February 2022.
A future Trump administration might strengthen Russia by withdrawing support for Ukraine and lifting sanctions against Russia. And a more robust Russia is good news for Beijing.
US economic hostility
So, at first glance, Trump and Harris’s approaches towards China are different. Trump’s return to the White House could also intensify the trade war that he started in 2018, as tariffs on Chinese goods could go to as high as 60%. This might hasten the economic decoupling between the US and China.
Harris, on the other hand, wishes to “de-risk” China. This approach seeks to maintain US global interest while engaging with the east Asian economic behemoth. In such a scenario, Beijing might prefer a Harris presidency as it leaves room for negotiation.
However, Harris has relatively little foreign policy experience, and is expected to pick up where Joe Biden left off. This means the tariffs and technological restrictions that China faced under a Biden administration could stay under her presidency.
Another factor is Tesla founder Elon Musk, who is an ardent supporter of Trump, and may take a top job within a Trump administration.
How much influence the tech multi-billionaire actually has over Trump is uncertain. However, it’s worth noting that Musk has substantial business dealings in China, and might seek to lean on Trump if the former president’s policies harms Tesla’s interests.
With many of these factors unclear at the moment, Beijing will be hoping for a US leader who is more interested in economic wins than protecting Taiwan, and one that Xi can negotiate with to warm up relations between the two countries.
This article is republished from The Conversation under a Creative Commons license. Read the original article.
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. |
Read the rest of the original article.
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
- What does China want from the next US president?
- China’s Golden Rooster Film Festival Kicks Off in Xiamen – Thailand Business News
- Italy and China New DTA Set to Take Effect in 2025: Important Changes and Implications
- China’s New Home Prices Stabilize After 17-Month Decline Following Support Measures
- U.S. national debt is its Achilles’ heel, but China sees it as an opportunity
- Business Update: Southern Sun Reports Earnings Growth; China Stimulates Property Market – News24
