Trade

Hong Kong

Hong Kong and New Zealand entered into a free-trade agreement that would gives preferential treatment to companies in a range of service sectors. Described as "a new-generation closer economic partnership, one which does not have tariffs as its focus or ultimate goal", the agreement was Hong Kong's first closer economic partnership agreement with an economy outside China.

Nationality

Hong Kong

Over 1,000 foreigners applied for Chinese citizenship every year in Hong Kong, although the number has dropped since 2006.

Jurisdiction

Tax

Hong Kong

In an effort to deflect criticism that it has become a worldwide tax haven, Hong Kong is working with about 15 countries to sign tax treaties that would allow greater exchange of information. However, the value of such agreements is doubtful as Hong Kong collects little information that might be of interest to other tax authorities.

Jurisdiction

A Hong Kong company sued the Hong Kong police in respect of a search at a Hong Kong company director's office by Italian prosecutors investigating a money laundering case involving Prime Minister Silvio Berlusconi. The company complained that Hong Kong police officers present at the search "followed the instructions of the Italians".

Trade

Finance

Dispute Settlement

China is said to be skillfully using inconsistencies in international trade rules to spur its own economy at the expense of others. On the one hand, China used WTO to fight protectionism in trade partners by filing more cases at WTO than any other country 2009 (filing four cases after filing only three in the previous seven years). On the other hand, China frustrated the toothless IMF by suppressing a series of I.M.F. reports since 2007 that concluded the renminbi was “substantially undervalued.”

Territory

North Korea has agreed to lease the port of Rajin on its northeastern coast to China's Jilin province for 10 years, giving China a foothold on the Sea of Japan for the first time in more than a century. Chinese authorities planned to use the port not only for shipping goods and resources but also for tourism.

Law of the Sea - Continental Shelf

Treaty

Referring to the 2008 agreement between China and Japan on gas field development in the East China Sea, Foreign Minister Yang Jiechi said the two countries should observe the spirit of the agreement and ''work to foster favorable conditions for effective implementation'' of the accord. Tokyo has been pushing for a treaty to implement the 2008 agreement.

See previous post.