Tag: china

• By Olalekan A. Babatunde

Keen observers of global affairs would notice that there have been threats to peace and stability in the Taiwan Strait recently. This is because of the separatist activities of Taiwan like the election it held on January 13, despite the “One-China principle” and the Chinese government’s position of opposing “Taiwan’s independence” and the international community’s position, upholding the principle. But looking at history, both the Mainland China and Taiwan are the same people with same traditions.

Since context is about everything, including in every human issue, it is important in enhancing our understanding on the position of China to reunify with its kith and kin, build one prosperous nation and de-escalate the rising tensions and fears in the region. It is also important to shed light on why foreign powers should cease interference in the internal affairs of these people, and what the simmering superpower rivalry means for the island and for the world. So here is a look at everything that needs to be known.

First, Taiwan’s first known settlers were Austronesian tribal people, believed to have come from modern day southern China. Secondly, Chinese records appear to first mention the island when an emperor dispatched an expeditionary force to it. Third, the island was annexed in 1683 by the Qing dynasty of China.. The Republic of China, which had overthrown the Qing in 1911, took control of the island following the surrender of Japan in 1945 after World War II.

Fourth, in the following few years, a civil war broke out in China, and then-leader Chiang Kai-shek’s nationalist troops were defeated by Mao Zedong’s Communist army. Chiang, the remnants of his Kuomintang (KMT) government and their supporters numbering about 1.5m people fled to Taiwan in 1949, dividing the two sides, to become the Republic of China (ROC) as against the Mainland’s the People’s Republic of China (PRC). Chiang established a dictatorship that ruled Taiwan until the 1980s. Following his death, Taiwan began a transition to democracy and held its first elections in 1996.

Fifth, despite all efforts of Chiang’s government to lay claim to the whole of China and even held China’s seat on the United Nations Security Council, the rest of the world did not recognize Taiwan. This is because from the 1970s, some countries began to argue that the Taipei government could no longer be considered a genuine representative of the people living in the Mainland China. In 1971, having guided by history, the UN corrected itself by diplomatically recognising Beijing as the sole representative of Chinese people. From 1979 with its opening up and reform programmes, more countries including the United States recognized China and established diplomatic ties with it. Nigeria established relations with China in 1971.

Consequently, the number of countries that recognized Taiwan fell drastically with about 12 countries recognizing the island today. That is, almost all the countries in the world recognise and have established diplomatic ties with China. Nauru, a tiny Micronesian island, became the latest to ditch Taiwan, less than 48 hours after the election. Also following the election, the US Secretary of States, Antony Blinken reiterated the US’s position on its One China Policy.

Weeks back, Nigeria reiterated its commitment to the One China Policy as recognized by the UN in a statement issued by the Chairman of House of Representatives Committee on Nigeria-China Relations, Honourable Ja’afaru Yakubu. The statement read: “There is but One-China in the world. Taiwan is an inalienable part of China’s territory, and the Government of the People’s Republic of China is the sole legal government representing the whole of China.” Meanwhile, amid the crisis, there are some Taiwanese who are constructive to the Chinese claim and favour closer relations with the PRC.

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Lastly, China has severally demonstrated its willingness to embrace its breakaway province back through “peaceful reunification.” In 2019, President Xi Jinping reiterated China’s long-standing proposal for Taiwan on its incorporation into the mainland under the formula of “one country, two systems.” On the other hand, it does not shy away from applying force to accomplish the goal as it had in 2004 passed what can be described as anti-secession law, declaring China’s right to use “non-peaceful means” against Taiwan if it tried to “secede” from China. Such option would plunge the region and the rest of the world into crises. Nevertheless, 2049 has been set by President Xi for the unification with Taiwan to achieve the Chinese Dream and restoration of China’s great power status.

This is the morality of this issue. But the experience of the benign big-power China has shown that morality is ineffective in determining foreign policy. The more it wants to have the island back, the more the island gets support from the foreign powers notably the US, UK and Japan. But as Tom J. Velk writes on Asia Times on January 10, “national interest, say pragmatic thinkers, is a more certain guide and standard for foreign policy.” It is in the interest of China and indeed most of its allies the world back its sovereignty claim and indeed to have One China. This is the sense of China’s claim.

So given the historical trajectory and contemporary politics and diplomacy, the so-called complexity and controversial aspect of the dispute needed not to have arisen. Groundless and fearful geopolitics is to blame. This is because the US that is leading support to Taiwan despite the Chinese interest has not broken relationships with China but harms it. An example of this could be witnessed in the election that produced Lai Ching-te of the Democratic Progressive Party (DPP), a party vigorously championing Taiwan “independence”. His emergence has pushed the island away from Beijing and his clamour for independence could trigger a war.

So we need to know that though the US sells weapons to Taiwan to defend itself against any invasion, it also partly respects the overwhelming prevailing consensus on upholding One China Policy. This is one of the most contentious issues in China-US relations, with Beijing condemning any perceived support from Washington for Taipei. The visit to Taiwan by the former US Speaker Nancy Pelosi in 2022 received an unprecedented show of force around Taiwan by China in retaliation. Beijing was also upset by US President Joe Biden’s comments in 2022 suggesting that the US would defend Taiwan if it was attacked. China’s military drills are an ongoing exercise in the air and in the Taiwan Strait, the sea that separates Taiwan from the Chinese mainland.

 So China is desirous for a peaceful resolution of the dispute. That is, the split between the PRC and Taiwan that is fast becoming a crisis as a result of the Chinese Civil War should be resolved. As far as China is concerned and what is entitled to, the breakaway province will eventually be part of the country, and it has not ruled out the use of force to achieve this. That is more reason the great power competition with China can be approached through dialogue and cooperation, in order to avoid hegemonic tendencies that can lead to escalated conflict in the region. As nations strive to achieve national reunification, so does China.

Therefore, in making comments on China’s claim on Taiwan, we need to understand their shared distinct history, and interests and the position of almost every country of the world including the UN. For us here, “Nigeria opposes any separatist activities aimed at ‘Taiwan’s independence’ and foreign interference in internal affairs of other states and fully supports China’s strive in achieving peaceful reunification.” The enormous scale of the crisis   over Taiwan in the past couples of years has put the responsibility on the international community to intervene and support China. Pretending the problem is not there will only make it worse. To address China’s concern on reunification and ensure global peace and security, the core principles of territorial integrity and sovereignty of China must be respected by all countries.

• Babatunde, PhD, is a fellow at the Institute for Peace and Conflict Resolution, Abuja.

• By Charles Onunaiju

As China’s comprehensive national aggregates soar and with outcome in the overall improvement in the quality of lives of her people of all ethnic nationalities, the social system justifies itself by practice and results and not by obtuse abstraction.

Against the previous grim and cynical predictions of some western experts and pundits that the China development model would atrophy at some point, and ultimately seek economic and social reconciliation with all its political ramifications in the western model of development, that did not happen and would likely never happen. Now, ideologically fixated politicians in the western countries and their media surrogates seemed to have invented another soft belly which like Hong Kong and Taiwan, it would seek to embarrass and put pressure and even attempt to contain China: the Xinjiang Uygur Autonomous Region.

Regional ethnic autonomy is part of the core of China’s fundamental political system for addressing domestic ethnic issues in contemporary China and is premised on the socialist equality of all ethnic nationalities.

 But history has consistently demonstrated that such measures designed to exert pressure on Beijing are usually dead on arrival. Why the West persist in the old path that lead to nowhere can only be explained, in their increasingly dysfunctional and extremely polarizing domestic political process in which extremist ideologies foist the notion of zero sum game in which the rise and development of non-western power is direct threat to their well-being.

 To be seen to be pontificating liberal values abroad while the home front is in a state of lethargy and disarray is an old trick of the Western ruling establishments. The new fad of Western humanitarian concern is the China’s Xinjiang Uygur Autonomous Region, of a population of over 25million for which about 60% is from ethnic minorities with the Uygur ethnic group constituting appropriately 46.11%.

 The Uygur ethnic group, which are mainly Muslims are the target of western fabrications and slander against China. However, statistics show that the population of Uygur ethnic group has grown rapidly at a rate of 25.04% which is not only higher than the population growth of the entire Xinjiang region at 13.99% but of all minority ethnic groups and even considerably higher than the population of the ethnic Han majority which only grew at 2.0%. Since the 18th National Congress of the Communist Party of China (CPC) in 2012 when Xi Jinping was elected the General Secretary of the Party and consequently elected to the presidency in 2013, eliminating poverty in Xingjiang as in other parts of the country was given a high priority. Substantial progress has been recorded in the region through measures ranging from industrial development, relocation, education and infrastructure development to implementing urban and rural affordable housing projects, building potable water safety and ecological conservation facilities. Between 2016 and 2020, all the administrative villages across the Xinjiang region were connected to the power grid and were all accessible by tarred concrete roads. More than 40,000 apartments were built for the relocation of nearly 170,000 people to more hospitable places where they would shake off the pangs of poverty and key into the road map of increased prosperity for all the Chinese people. In addition to this, potable water facilities were made available to a total of 1.52 million impoverished population and measures were taken to ensure that not a single child dropped out of school on account of poverty.

Read Also: Diplomatic Relations: Nauru recognises ‘One-China Principle’ with Taiwan

Basic medical insurances and critical illness insurances became universal not only in Xinjiang region but across all China covering the entire previous poor population, with per-capita net income of registered poor households in Xingjian increasing by 32.32% per annum.

In 2020, despite the impact of the Covid-19 pandemic, over three million rural poor residents of the region were lifted out of poverty. All the 3,666 villages and 35 counties previously designated as extremely impoverished were delisted from the national register of poor people.

Xinjiang has the largest land area, longest land borderline among all provinces and equivalent administrative units in China.

 On the February 25, 2021, China declared the end of poverty among its 1.4 billion people, 10 years ahead of the UN target of 2030, with President Xi Jinping declaring that “the sunshine of poverty alleviation has shined to every corner, the destines of numerous people have hence changed, the dreams of millions were hence realized and happiness of countless individuals was hence accomplished”.

Covering 1.66 million square kilometres, Xinjiang accounts for nearly one-sixth of China’s total land area. Its land borderline of over 5,700 kilometres accounts for nearly one-fourth of China’s total and bordering eight countries – Mongolia, Russia, Kazakhstan, Tajikistan, Kyrgyzstan, Afghanistan, Pakistan, and India.

With the Eurasia continental bridge running through, Xinjiang is clearly identified as the core area of the Silk Road Economic Belt of “the Belt and Road” framework of international cooperation initiated by China. As a priority locality in China’s national strategy of large-scale development of the western region, it serves as an important gateway for China’s west-ward opening up as well as an important energy base and transport thoroughfare for China. The alleged abuses were designed to obliterate the fact of a region and its ethnically diverse residents, who have joined the rest of their compatriots in a fast train of inclusive development and shared prosperity.

 Delegations upon delegation, including some from majority Muslim countries have visited the region to see and confirm the fact of all-round development of the region and its people. Vocational training centres provided in the region to build capacity and help wean off, those affected by extremist radical propaganda were claimed by some western politicians and media as detention facilities.

 While the CPC and the Chinese government believe that the problem of extremist violence should be dealt with more broadly by improving living conditions and giving people the opportunity to pursue better life for themselves, extremist ring leaders and their anti-social agenda must be dealt with according to law. The West and specifically United States of America, with the Guantanamo Bay detention facility of extremist violent Jihadists is the most exemplary fact of the efforts to rein in, the excesses of violent extremists.

 The fact on the ground in the Xinjiang Uygur Autonomous Region of China, speaks louder than ideologically-motivated noise of western political establishment and its media outlets that is yet to reconcile itself to the fact of modern China, which proclaimed itself over seven decades ago to have stood up; and “will never again be an insulted nation.”

 The United States has more to do for its Native American population who still lives in reserve area without access to life improving basic amenities and any rudiment of self -governing mechanism for cultural expression and resource control. One only of the indigenous Native Americans was recently appointed to cabinet level position in the more than 200 years history of the US.

 The political status of Puerto Rico which is considered a U.S territory but is citizens have no voting representation in the US federal government, except for one non-voting resident commissioner in the House of Representatives, has remained a conundrum for the US ruling establishment who care so much for distant Xinjiang region of China but has refused to ameliorate the situation in its own Puerto Rico.

• Onunaiju contributes this piece from the FCT, Abuja. 

• By Oche Echeija Egwa 

By nature, most people would like to dodge payment of taxes if the system allows it. It’s not surprising that some easily agree with the saying that tax collectors rarely have many friends. But, for governments, taxes are a major policy instrument for shaping, and reshaping, the economic destinies of their countries. In this regard, President Bola Tinubu’s sense of urgency can be understood. 

At his inauguration on May 29, economic transformation topped the president’s agenda. With the historic precedence in Lagos State as a former governor (1999-2007), the president knows the dynamics and centrality of fiscal and tax reforms in dictating the vibrancy, competitiveness and inclusiveness of an economy, especially in tackling debilitating poverty. 

Barely a month into office, the president had swung into action, appointing a seasoned and national award-winning career officer, Adewale Bashir Adeniyi, MFR, as acting Comptroller General of Nigerian Customs Service (NCS), which was roundly applauded. Adeniyi was confirmed four months later, in October, for making a clear difference in revenue generation, trade facilitation and staff motivation.

To further improve the reforms, the president changed the gatekeeper of another major revenue earner, the Federal Inland Revenue Service (FIRS), by appointing his former Special Adviser on Revenue, Zacch Adedeji, a first-class graduate of Accountancy, as the acting chairman/CEO of that agency. Adedeji had served as Commissioner for Finance in Oyo State under the late Governor Abiola Ajimobi, bringing on board a wealth of experience on tax reforms. Adedeji was confirmed by the Senate on October 31. 

Walking his vision for economic turnaround, President Tinubu inaugurated an all-inclusive Presidential Committee on Fiscal and Tax Reforms headed by a renowned expert, Taiwo Oyedele. Their mandate was clear: simplify the tax system for more efficiency and effectiveness. 

In less than two months, the committee tendered its report, October 24, detailing the “Quick-wins’’ that will ameliorate noticeable burdens within a month. 

The president had directed reduction of tax regimes to a single digit, following the disclosure by the chairman of the committee that Nigerian economy was struggling with 60 legal taxes, across the federal, state and local councils, and additional illegal taxes that brought the total to about 200, which was clearly a disincentive to starting and growing businesses, particularly to the lifeblood of economies, small and medium enterprises. 

While the tax reforms were going on Nigeria, at a study tour, October 10-30, organized by the Peoples Republic of China, in Beijing, with focus on Public Finance and Government Budgets for Developing Countries, Prof. Young Ho, said regular tax reforms were redemptive measures by governments, citing oft-celebrated lifting of 700 million Chinese citizens out of poverty. 

Sharing the Chinese experience with participants from 10 countries, including Nigeria and bureaucrats from the African Union (AU), Prof. Ho, who is Associate Dean, School of Public Finance and Taxation, at the Central University of Finance and Economics, Beijing, said tax reforms must be regular, and purposeful to reflect the vision and direction of governments. 

 “China has grown exponentially by using tax as an instrument for development, like prioritizing on Foreign Direct Investments that will impact the economy. We had a tough time in eliminating double taxation and we had to start using either the credit or exemption method,’’ she noted. 

To cure the Chinese economy of multiple taxation, the tax expert emphasized that the country invested heavily in innovative technology, that provided solutions to plug leakages, and provided access for voluntary payments, through websites and apps, which is a path Nigeria had taken with focus on data mining by the FIRS.

Ho disclosed that most transactions in China had been intentionally digitalised, with little human interference in domestic and cross-border transactions. Where a weak link was observed and exploited by corrupt people, she said the government punished the defaulters and culprits, and further tightened the bolts with new technology.

In her presentation at the Central University of Finance and Economics, titled, “International Tax Reforms and their Impacts on Foreign Direct Investments’’, Prof. Ho explained that in order to reduce poverty among the 1.4 billion population of China, the government exempted all agricultural raw materials from all forms of taxation.

“Only the end product of agricultural materials could be taxed, not the input, or the process. Our farmers were exempted from paying taxes, while financial institutions, like our policy banks, were encouraged to favour farmers with credits and subsidies,’’ she added. 

The Chinese government operates four policy banks that support the vision of the government, she explained, stressing that only processed or manufactured agricultural products could be taxed in China.

“We have lower taxes of about 4-6% on small businesses, and it is based on their growth levels. Agricultural products, at raw stages, are exempted from tax base. Newspapers and journals are also excluded so we don’t pass the cost to the ordinary people,’’ the lecturer added. Other items that get preferential treatments are medical and educational equipment, and the public schools (private schools pay taxes). 

She also pointed out that Chinese multinational companies pay 25 per cent taxes to the government, and where they had been taxed abroad at lower rates, they pay the balance at home. They can only be exempted when the tax in a foreign country is the same or above.

“The government tries to avoid double taxation. The Small and Medium Scale Enterprises get facilities at lower interest rates, and their taxes are between 3% to 6%.  

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“The biggest tax in China is Value Added Tax (VAT). Mostly, the 13 percent VAT is on high profit businesses like banks, petroleum companies, other financial institutions, some manufacturers, some online service companies, social media and telecoms. Most times, construction companies are not included because of the focus on infrastructure development,’’ Prof Ho stated.

She disclosed that VAT contributes 32-35 per cent of the government’s total revenue, and can be preferentially staggered to 9%, 6% and 3% for various businesses at different growth levels. The lecturer said China has 19 different taxes, with the corporate, income, consumption taxes on luxury items and the VAT was controlled by the central government, which was usually shared by other structures. Local councils administer taxes on land and transportation. 

“Before 2008, China had separate laws for domestic tax payers and foreigners and to attract FDI, it was harmonized, with even lower rates for the foreigners,’’ Prof. Ho said. Incentives were also given for single corporate tax laws, research and high telecom companies, which were focused on skills transfer to citizens.

To her, developing countries should design their tax to attract FDIs, and reduce the sufferings of the ordinary people. She said “The Golden Tax System’’ of China had gone through different phases, from 1-4, and graduation into online payment for flexibility and accessibility. Some taxes, like the Green Tax, favour sustainability, and encourage new technology.

In another presentation, “The Reform and Practice of China’s Fiscal and Tax Development’’, an Associate Professor, School of Accounting, Chongquin University of Technology, He Fan, pointed out that tax reforms were regular features in China, with four provinces, Beijing, Shanghai, and Tianjin, also implementing the various aspects.

More than 80% of China’s revenue, he pointed out, comes from different taxes, spread across VAT (36.8%), Corporate Tax (8.9%), Corporate Income Tax (24.3%) and Personal Income Tax (8%). For more details, Fan told participants that cigarettes were taxed 45% because of health implications, makeup 30%, wine 20%, jewelleries 5%, solid-wood for flooring 5% and chopsticks 5%. Based on grade and emission, cars were taxed 40%-50%.

The Chinese tax researchers noted that the secret of effective tax administration lies in heavy investments in technology, and deploying intelligent systems for collection, distribution and monitoring. Fan disclosed that apps and websites play a central role in providing solutions, particularly in collection.

The lecturers also said repositioning the Chinese economy for prosperity, a long-term plan since 1978, was a deliberate policy choice, and successive governments followed through, consistently refining the process with new technology, opening up the economy for partnerships, offering cheap labour that enabled skills transfer, and imbibing global best practices. 

•Egwa, Assistant Director of Information in the Presidency, participated in a three-week conference in Beijing, China