CiCM 31st July 2023

NEWS IN CHINA

Beijing recently nominated a new leadership for the People's Liberation Army Rocket Force, which is in charge of the country's nuclear weapons after its former commanders were involved in an anti-corruption drive. Wang Houbin, the navy's previous deputy commander, has been selected as the Rocket Force's new commander, and Xu Xisheng has been named as its new political commissar; both have been elevated from lieutenant general to full general. A promotion ceremony was held in Beijing, attended by President Xi Jinping and other senior military commanders. The Central Military Commission's anti-corruption section is also looking into the previous head of the force, Li Yuchao, as well as his current and past subordinates. President Xi Jinping's choice to change both the force's commander and its political leader at the same time is unprecedented. China's nuclear deterrent policy and military pressure on Taiwan rely on the Rocket Force. The Rocket Force's leadership transition is considered an essential measure to prevent future wrongdoing and to guarantee that all top commanders are trained in contemporary warfare and capable of managing strategic nuclear weapons.
The Ministry of National Defence and Emergency Management, together with other major ministries, convened a video conference on 31st, July to discuss flood control and dispatch measures in Beijing, Tianjin, Hebei, Shanxi, Henan, and other provinces. Due to extremely heavy rainfall and the high risk of disasters, the National General Department of Flood Prevention and Drought launched a secondary emergency response for flood control in these provinces, exacerbated by rivers' low flood carrying capacity and low flood control standards in the northern region. During the discussion, it was stressed that flood prevention and disaster relief activities should be bolstered, with clear organization and leadership, and that the roles and duties of all parties involved should be clearly defined. Monitoring and early warning systems for intense rainfall floods, flash floods, landslides, and mudslides were to be upgraded, as well as a "call-and-response" method to contact grassroots responsible personnel. There were also directives to improve unified dispatch for river flood defense, use flood storage and detention, and inspect and defend against flash flood geological disasters in remote mountainous areas, urban-rural junctions, tourist destinations, industrial and mining areas, and construction sites. Reservoir flood prevention and rescue plan procedures were to be implemented, as well as rapid and decisive evacuations of threatened persons in high-risk regions.
China's Defence Ministry stated that China and the United Arab Emirates (UAE) would undertake their first-ever combined air force training next month in the Xinjiang Uyghur Autonomous Region. The training is part of the yearly agenda and illustrates the two forces' strengthening collaboration. The goal of the combined training is to improve practical exchanges, mutual understanding and trust, and collaboration between the two air forces. Previously, the Chinese military and Arab nations had a strong and cordial connection, engaging in a variety of fields including joint exercises, equipment and technology collaboration, and people training. UAE has also show interest in developing the Global Security Initiative and forging a shared future for China and Arab states.
China and Guyana issued a joint statement in which they reaffirmed their commitment to deepening and expanding bilateral ties and promoting collaboration in a variety of sectors. Guyanese President Mohamed Irfaan Ali recently traveled to China, where he met with Chinese President Xi Jinping and Premier Li Qiang. Both sides backed each other's growth pathways and the one-China concept. Guyana praised China's Belt and Road Initiative (BRI) and stated openness to discuss a BRI cooperation plan. The two nations agreed to expand economic cooperation in areas such as commerce, investment, infrastructure, agriculture, health, energy, and education. They also promised to work together on environmental issues such as climate change and sustainable development. The countries agreed to encourage cultural and educational exchanges, health cooperation, and mutual understanding among their people. In addition, Chinese Foreign Minister Wang Yi met with Guyana's Foreign Minister, Hugh Todd, to boost bilateral ties.
In light of the Army Day on 1st August, Xi Jinping, Chairman of the Central Military Commission (CMC), paid a visit to the Western Theatre Command's Air Force recently. He sent warm welcomes to all Air Force officers and troops, as well as holiday greetings to the People's Liberation Army, Armed Police Force, military-civilian staff, and militia reserve members. In his address, Xi emphasized the importance of accelerating the army's modernization and specifically asserted the upgradation of the Western Theatre Command. During his speech he also lauded the Air Force's achievements and job accomplishments since its inception during his visit. He also went onto assert the necessity of military preparation, everyday air defense, promoting new equipment and forces, and strengthening combat capabilities. He also stressed upon the need for discipline and anti-corruption initiatives.
Aoka Prefectural New Modern Agricultural Machinery Cooperative's finance director expressed delight at the major advances in the difficulty relief application as part of the taxing process. Earlier they had to go to the county tax service agency, present paper documentation, and arrange on-site verification with tax bureau officials. Given the advancements they are required to just provide electronic materials via WeChat and email and undertake video verification, simplifying the whole procedure. Through WeChat, the firms can now submit electronic versions of the application materials, and the management sub-bureau will conduct remote visual verification through Tencent video conference. The person in charge of the enterprise supplied real-time photos and position data during the remote verification procedure, meeting the grid officer's criteria. The entire verification procedure can now be completed in less than 30 minutes, saving time and money while avoiding direct interaction with taxpayers.

SOCIAL MEDIA CHATTER IN CHINA

Controversy at Mount Tai tourist area as shops charge for shelter during heavy rain: Shops in eastern China's Mount Tai tourist region have sparked outrage by charging tourists to seek shelter from severe rain. A viral video shows a restaurant owner on Mount Tai asking 25 yuan (US$3.5) for standing and 40 yuan (US$5.6) for sitting inside amid a storm. The traveler who shot the video stated that they paid for shelter after seeing others, especially children, get soaked. Local officials replied to the problem, indicating that while charging for services and products is lawful, they are evaluating the reasonableness of charging for rain cover. They selected two stores that charged fees and vowed to take necessary measures if they were proven guilty. According to an unidentified source, when it rains, an emergency plan permits surrounding temples and business venues to give free refuge for travelers. Mainland Chinese social media users were divided on the issue. Some criticized the stores, while others defended them, claiming that the fees were required to meet operating and rent costs. Similar stories regarding tourist fees have been circulating on social media, such as a convenience shop demanding a hefty cost for using their lavatory, which was ultimately decreased following police involvement.

INDIA WATCH

The fast rise of the digital economy has presented new taxing issues for nations such as India and China. Traditional tax regulations are struggling to keep up with the complications offered by cross-border transactions and digital business models as the digital realm transcends geographical boundaries. China, with its enormous population and active digital economy, has comparable digital taxation difficulties. The enormous rise of cross-border e-commerce and digital platforms has made it difficult for tax authorities to efficiently monitor and enforce correct taxation. To address these concerns, China passed the "E-commerce Law" in 2019, which focuses on tax evasion, product safety, and intellectual property rights issues in the e-commerce industry. The law also makes e-commerce platforms responsible for ensuring that merchants follow tax requirements, increasing tax compliance in the digital sector. China has also taken attempts to simplify cross-border e-commerce tax compliance by providing a "single-window" platform for customs clearance and tax payment. These streamlines import and export procedures, making it easier for digital enterprises to meet tax obligations.

With a growing e-commerce industry and a large user base, India has emerged as a prominent participant in the global digital world. However, the international nature of digital transactions makes detecting tax countries and appropriately distributing profits challenging. This has raised worries about global digital corporations operating in India eroding their tax bases and moving profits. To address these difficulties, India implemented the "Equalization Levy" in 2016, a ground-breaking levy on internet advertising and associated services given by non-resident firms to Indian customers. The goal was to efficiently tax digital transactions, so levelling the playing field for both domestic and international digital service providers. India enhanced its strategy in 2020 by establishing the notion of "Significant Economic Presence." Non-resident entities with significant economic activity in India are taxed under this idea. This change allows India to tax digital firms with a large user base, digital platforms, or any other methods of producing value in the country. As the digital environment evolves, continuing international collaboration and talks will be essential for both the countries, in order to build a harmonized and effective framework for digital taxes. Countries can only strike the correct balance between supporting digital innovation and guaranteeing a fair and effective taxation system in the digital era via coordinated efforts that takes into account both such perspectives.

Prepared By

Anakha S Thampy

Anakha S Thampy is currently pursuing her dual Masters degree - an MA in International Studies from Symbiosis International University, Pune, and an MA in Sustainability Science from IGNOU. Having completed her Bachelor's in Political Science, she aspires to make a significant impact in society by becoming a Civil Servant. Her research focus revolves around the captivating realms of Asian area studies and the Sustainable Development Goals (SDGs).