Finance

‘No challenges can stop China’s progress’ Xi Jinping says in 75th anniversary speech

Published

3 months ago

September 30, 2024

China’s President Xi Jinping speaks during an awards ceremony at the Great Hall of the People in Beijing on Sept. 29, 2024, ahead of China’s National Day.

Adek Berry | Afp | Getty Images

BEIJING — Chinese President Xi Jinping said Monday that no challenges can stop the country from moving forward and reiterated Beijing’s reunification aims with Taiwan.

He was speaking at a reception commemorating the 75th anniversary of the People’s Republic of China, which was founded on Oct.1, 1949.

“The path ahead will definitely see challenges,” Xi said, before calling on the country to overcome uncertainties and risks. “No challenges can stop China’s progress.”

The comments were translated by CNBC from a Chinese state media broadcast.

The brief speech, aired during the state broadcaster’s daily evening news program, noted that Xi and other top Chinese leaders entered the reception shortly after 5 p.m. local time on Monday.

Mobius: China represents 30% of the Emerging Market Index."

About 3,000 people, including foreigners, attended the event in Beijing, according to state media.

During his speech, Xi emphasized the need to unify under the Chinese Communist Party’s leadership and reiterated Beijing’s “firm opposition” to Taiwan “separatist” activities, while calling for both sides to increase economic and cultural cooperation.

He cast reunification with Taiwan as an inevitable development of history — something he has said previously.

Beijing considers the democratically self-ruled island as a part of its territory.

No mention of trade tensions

Tensions between China and the U.S. and Europe have increased over the last several years, with Western nations increasing tariffs and restrictions on Beijing’s access to advanced technology.

Xi did not mention specific countries or trade conflicts in his Monday speech, instead portraying China as upholding globalization. He broadly thanked “friendly” countries and supporters of China’s development.

He also emphasized Beijing’s claim to Greater China by saying “national rejuvenation” was the hope of Hong Kong, Macao, Taiwan and all Chinese peoples.

The Beijing leader added that China would “spur” the development of Hong Kong and Macao — both self-governed regions which are ruled by Beijing under the “one country, two systems” principle.

In a 2019 speech commemorating the PRC’s 70th anniversary, Xi had said that no force could sway China’s development, amid festivities involving a military parade and large-scale celebrations. Events for the 65th anniversary were more subdued.

Xi’s speech comes at a time of uptick in Chinese markets in recent weeks, with major mainland Chinese and Hong Kong stock indexes recently surging to their highest in more than a year after authorities announced plans to support economic growth. On Thursday, a high-level meeting led by Xi called for halting the real estate decline, and for strengthening fiscal and monetary policy.

While the People’s Bank of China has cut rates in the last week, the Ministry of Finance has yet to announce additional fiscal support.

Finance

Treasury delays deadline for small businesses to file new BOI form

Published

35 minutes ago

December 26, 2024

Business Finance News

Janet Yellen, U.S. Treasury secretary, on a tour of the Financial Crimes Enforcement Network (FinCEN) in Vienna, Virginia, on Jan. 8, 2024.

Valerie Plesch/Bloomberg via Getty Images

The U.S. Treasury Department has delayed the deadline for millions of small businesses to Jan. 13, 2025, to file a new form, known as a Beneficial Ownership Information report.

The Treasury had initially required many businesses to file the report to the agency’s Financial Crimes Enforcement Network, known as FinCEN, by Jan. 1. Noncompliance carries potential fines that could exceed $10,000.

This delay comes as a result of legal challenges to the new reporting requirement under the Corporate Transparency Act.

The rule applies to about 32.6 million businesses, including certain corporations, limited liability companies and others, according to federal estimates.

Businesses and owners that didn’t comply would potentially face civil penalties of up to $591 a day, adjusted for inflation, according to FinCEN. They could also face up to $10,000 in criminal fines and up to two years in prison.

However, many small businesses are exempt. For example, those with over $5 million in gross sales and more than 20 full-time employees may not need to file a report.

Why Treasury delayed the BOI reporting requirement

The Treasury delayed the compliance deadline following a recent court ruling.

A federal court in Texas on Dec. 3 had issued a nationwide preliminary injunction that temporarily blocked FinCEN from enforcing the rule. However, the 5th U.S. Circuit Court of Appeals reversed that injunction on Monday.

CNBC Small Business Survey finds confidence rising among small businesses

“Because the Department of the Treasury recognizes that reporting companies may need additional time to comply given the period when the preliminary injunction had been in effect, we have extended the reporting deadline,” according to the FinCEN website.

FinCEN didn’t return a request from CNBC for comment about the number of businesses that have filed a BOI report to date.

Some data, however, suggests few have done so.

The federal government had received about 9.5 million filings as of Dec. 1, according to statistics that FinCEN provided to the office of Rep. French Hill, R-Ark. That figure is about 30% of the estimated total.

Hill has called for the repeal of the Corporate Transparency Act, passed in 2021, which created the BOI requirement. Hill’s office provided the data to CNBC.

“Most non-exempt reporting companies have not filed their initial reports, presumably because they are unaware of the requirement,” Daniel Stipano, a partner at law firm Davis Polk & Wardwell, wrote in an e-mail.

There’s a potential silver lining for businesses: It’s “unlikely” FinCEN would impose financial penalties “except in cases of bad faith or intentional violations,” Stipano said.

“In its public statements, FinCEN has made clear that its primary goal at this point is to educate the public about the requirement, as opposed to taking enforcement actions against noncompliant companies,” he said.

Certain businesses are exempt from BOI filing

The BOI filing isn’t an annual requirement. Businesses only need to resubmit the form to update or correct information.

Many exempt businesses — such as large companies, banks, credit unions, tax-exempt entities and public utilities — already furnish similar data.

Businesses have different compliance deadlines depending on when they were formed.

For example, those created or registered before 2024 have until Jan. 13, 2025, to file their initial BOI reports, according to FinCEN. Those that do so on or after Jan. 1, 2025, have 30 days to file a report.

There will likely be additional court rulings that could impact reporting, Stipano said.

For one, litigation is ongoing in the 5th Circuit, which hasn’t formally ruled on the constitutionality of the Corporate Transparency Act.

“Judicial actions challenging the law have been brought in multiple jurisdictions, and these actions may eventually reach the Supreme Court,” he wrote. “As of now, it is unclear whether the incoming Trump administration will continue to support the Government’s position in these cases.”