China Finance – Aisa Net http://aisa-net.com/ Mon, 10 Jan 2022 03:16:19 +0000 en-US hourly 1 https://wordpress.org/?v=5.8 https://aisa-net.com/wp-content/uploads/2021/05/aisa-net-icon-150x150.png China Finance – Aisa Net http://aisa-net.com/ 32 32 HUTCHMED Launches Phase I Study of BTK Inhibitor HMPL-760 in Previously Treated Non-Hodgkin B-Cell Lymphoma Patients in China https://aisa-net.com/hutchmed-launches-phase-i-study-of-btk-inhibitor-hmpl-760-in-previously-treated-non-hodgkin-b-cell-lymphoma-patients-in-china/ Mon, 10 Jan 2022 00:03:56 +0000 https://aisa-net.com/hutchmed-launches-phase-i-study-of-btk-inhibitor-hmpl-760-in-previously-treated-non-hodgkin-b-cell-lymphoma-patients-in-china/

– HMPL-760 is the eleventh innovative oncology drug candidate discovered internally by HUTCHMED –

– HMPL-760 is HUTCHMED’s fifth candidate in clinical development for hematologic malignancies, including amdizalisib and HMPL-523 which also target the B cell receptor (“BCR”) signaling pathway, as well as tazemetostat and HMPL-306 –

HONG KONG and SHANGHAI and FLORHAM PARK, NJ, January 10, 2022 (GLOBE NEWSWIRE) – HUTCHMED (China) Limited (“HUTCHMED”) (Nasdaq / AIM: HCM; HKEX: 13) has initiated a phase I study in China of HMPL-760, a very potent, selective and reversible inhibitor with a long-lasting commitment against Bruton’s tyrosine kinase (“ BTK ‘), including wild type and C481S mutated BTK. The first patient received their first dose on January 4, 2022.

The clinical study is an open-label, multicenter study to evaluate the safety, tolerability, pharmacokinetics (PK), pharmacodynamics (PD) and preliminary efficacy profile of HMPL-760. The study is recruiting patients with previously treated chronic lymphocytic leukemia / chronic lymphocytic lymphoma (CLL / SLL) or other types of non-Hodgkin lymphoma (“NHL”), including patients treated with a previous regimen containing an inhibitor. BTK, the disease of which carries either wild-type BTK or acquired resistance to first generation BTK inhibitors due to additional BTK mutations.

An initial dose escalation step to determine the maximum tolerated dose (MTD) and / or recommended phase II dose (“RP2D”) is planned, followed by a dose extension phase in which patients will receive HMPL-760 to further assess the safety, tolerability and clinical activity of RP2D. About 100 patients should be included.

HMPL-760 is HUTCHMED’s fifth investigational drug candidate targeting hematologic malignancies in clinical development. Amdizalisib (HMPL-689, targeting the delta isoform of phosphoinositide 3-kinase or PI3K delta) and HMPL-523 (targeting spleen tyrosine kinase or Syk) are also being studied in several phase II trials against B-dominant malignant tumors. Phase II registration studies are underway in China for amdizalisib in patients with follicular lymphoma (FL), for which it has achieved breakthrough therapy designation in China, and marginal zone lymphoma (MZL).

In addition to the three BCR inhibitors, for hematologic malignancies, HUTCHMED is also developing its internally discovered drug candidate HMPL-306, a dual mutant isocitrate dehydrogenase inhibitor 1 and 2, and tazemetostat, a methyltransferase inhibitor. ‘EZH2 (under development in Greater China by HUTCHMED as part of a strategic collaboration with Epizyme).

About BTK and non-Hodgkin lymphoma

BTK is a key component of the B cell receptor signaling pathway and is an important regulator of cell proliferation and cell survival in various lymphomas. Abnormal activation of B-cell receptor signaling is closely linked to the development of hematologic B-cell-type cancers, which account for approximately 85% of all cases of NHL.1 BTK is considered to be a validated target for drugs to treat certain hematologic cancers, however the C481S mutation of BTK is a known resistance mechanism for first and second generation BTK inhibitors. In 2020, it is estimated that around 93,000 new cases of NHL were diagnosed in China.2

About HMPL-760

HMPL-760 is an experimental, highly selective, non-covalent, third-generation inhibitor of BTK, both wild-type and C481S mutant enzymes, with preclinical data suggesting high target specificity and higher potency compared to first generation BTK inhibitors. The BTK C481S mutation plays an important role in resistance to certain BTK inhibitors.3,4

HMPL-760 is HUTCHMED’s eleventh potential innovative oncology drug candidate to enter clinical development. HUTCHMED currently retains all rights to HMPL-760 worldwide.

About HUTCHMED

HUTCHMED (Nasdaq / AIM: HCM; HKEX: 13) is an innovative, commercial-stage biopharmaceutical company. She is engaged in the discovery, development and global commercialization of targeted therapies and immunotherapies for the treatment of cancer and immunological diseases. It has more than 4,500 employees in all of its companies, at the center of which is a team of more than 1,400 people in oncology / immunology. Since its inception, 11 cancer drug candidates have moved from in-house discovery to clinical studies around the world, with its first three oncology drugs now approved and marketed in China. For more information, please visit: www.hutch-med.com or follow us on LinkedIn.

Forward-looking statements

This press release contains forward-looking statements within the meaning of the safe harbor provisions of the United States Private Securities Litigation Reform Act of 1995. These forward-looking statements reflect HUTCHMED’s current expectations regarding future events, including its expectations regarding the future. therapeutic potential of HMPL-760, amdizalisib, HMPL-523, HMPL-306 and tazemetostat for patients, his expectations as to whether studies of HMPL-760, amdizalisib, HMPL-523, HMPL-306 and tazemetostat would meet their criteria for primary or secondary evaluation, and their expectations for when to complete and publish the results of those studies. Forward-looking statements involve risks and uncertainties. These risks and uncertainties include, among others, assumptions regarding enrollment rates and the timing and availability of subjects meeting the inclusion and exclusion criteria for a study; changes to clinical protocols or regulatory requirements; unexpected adverse events or safety issues; the ability of HMPL-760, amdizalisib, HMPL-523, HMPL-306 and tazemetostat, including as combination therapy, to meet the primary or secondary endpoint of a study, obtain regulatory approval in different jurisdictions and obtain commercial acceptance after obtaining regulatory approval; the potential market for HMPL-760, amdizalisib, HMPL-523, HMPL-306 and tazemetostat for a targeted indication; the adequacy of funding; and the impact of the COVID-19 pandemic on economic, regulatory and general political conditions. Existing and potential investors are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date hereof. For more information on these and other risks, see the documents filed by HUTCHMED with the United States Securities and Exchange Commission, the Hong Kong Stock Exchange Limited, and AIM. HUTCHMED assumes no obligation to update or revise any information contained in this press release, whether as a result of new information, future events or circumstances or otherwise.

CONTACTS

Investor surveys

Mark Lee, Senior Vice President

+852 2121 8200

Annie Cheng, vice-president

+1 (973) 567 3786

Media inquiries

Americas – Brad Miles,
Solebury Trout

+1 (917) 570 7340 (Mobile)
bmiles@trutgroup.com

Europe – Ben Atwell / Alex Shaw,
FTI Council

+44 20 3727 1030 / +44 7771 913 902 (Mobile) / +44 7779 545 055 (Mobile)
HUTCHMED@fticonsulting.com

Asia – Zhou Yi,
Brunswick

+852 9783 6894 (mobile)
HUTCHMED@brunswickgroup.com

Appointed advisor

Atholl Tweedie / Freddy Crossley,
Panmure Gordon (UK) Limited

+44 (20) 7886 2500

______________________________

1 American Cancer Society (2019, January 29). Types of B cell lymphoma https://www.cancer.org/cancer/non-hodgkin-lymphoma/about/b-cell-lymphoma.html. Accessed January 5, 2022.
2 Information sheet from the World Cancer Observatory, China. https://gco.iarc.fr/today/data/factsheets/populations/160-china-fact-sheets.pdf. Accessed November 17, 2021.
3 Woyach JA, Ruppert AS, Guinn D, et al. BTKC481S-Ibrutinib-mediated resistance in chronic lymphoid leukemia. J Clin Oncol. 2017; 35 (13): 1437-1443. do I:10.1200 / JCO.2016.70.2282.
4 Woyach JA, Huang Y, Rogers K, et al. Resistance to acalabrutinib in CLL is mediated primarily by BTK mutations. Blood. 2019; 134 (Supplement_1): 504. doi:10.1182 / sang-2019-127674.

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RIP Janos Kornai, who called for vigilance against China https://aisa-net.com/rip-janos-kornai-who-called-for-vigilance-against-china/ Sat, 08 Jan 2022 07:00:00 +0000 https://aisa-net.com/rip-janos-kornai-who-called-for-vigilance-against-china/

Janos Kornai, a Hungarian economist who laid the theoretical foundations for the end of the Cold War, has died at the age of 93.

Among his notable works, “Anti-Equilibrium” published in 1971 and “Economics of Shortage” in 1980 attracted so much attention that intellectuals from the Soviet Union and the Eastern European bloc in financial difficulty under the socialist system wondered if they were reading any of Kornai’s works. titles during the East-West impasse.

Kornai’s focus on a planned economy with structural flaws served as a driving force for the change that saw the Berlin Wall demolished and the Soviet Union disintegrate.

The concept of “soft budget constraint” used by Kornai to explain the fundamental problems of socialist economies is still used by academics today.

Kornai argued that SOEs tend to be erratic and reckless in the way they do business because they know they can continue to operate even when the alarm bells ring about balloon spending, losses. and other market signals.

The concept has proven useful in analyzing Japan’s financial crisis triggered by the so-called Ministry of Finance’s convoy system, under which extraordinary measures were taken to protect weak companies from collapse.

Kornali was born into a Jewish family in 1928 in Budapest. Her father perished in the Holocaust after being transported by the Nazis from Hungary to the Auschwitz concentration camp in occupied Poland. Young Kornai escaped from a labor camp to survive the war.

After the end of World War II, Kornai worked as a journalist for the flagship newspaper of the Communist Party in Hungary. He then embarked on a career as a researcher. No sooner had he done so than the Hungarian Revolution of 1956 broke out.

The event made Kornai a critic of Marxism. He endured many hardships living under the surveillance of the secret police, but lived to see his homeland shift to democracy and a market economy.

In the 1980s, Kornai began teaching at Harvard University in the United States, while continuing to work in Hungary. Traveling frequently between East and West, Kornai studied society, politics and economics as one concept without separating them.

When Kornai visited China at Beijing’s invitation in the mid-1980s, his economic theory had a huge impact on reformist bureaucrats and intellectuals seeking to introduce a market economy.

For this reason, Kornai has never tried to hide his disappointment with President Xi Jinping’s administration, describing it as an increasingly authoritarian monster.

Calling for vigilance, Kornai pointed out to me in an interview that states overreact by concentrating authority.

Tsuneo Morita, who lives in Budapest and has translated some of Kornai’s texts publications, describes what Kornai was like.

“He (Kornai) didn’t like nationalism and kept his distance from the current authoritarian Hungarian administration headed by Viktor Orban,” Morita said.

Kornai passed away on October 18. The cause of death has not been disclosed. A farewell ceremony was held by his relatives as well as academics and musicians in the United States, China and elsewhere close to him.

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Chinese developer Shimao defaults on fiat loan https://aisa-net.com/chinese-developer-shimao-defaults-on-fiat-loan/ Thu, 06 Jan 2022 10:52:30 +0000 https://aisa-net.com/chinese-developer-shimao-defaults-on-fiat-loan/

SHANGHAI / HONG KONG (Reuters) – Chinese developer Shimao Group defaulted on a loan after missing a payment of 645 million yuan ($ 101 million), the lender said in a letter seen by Reuters on Thursday in the last sign of distress in China’s property sector.

China Credit Trust Co said in the letter, confirmed by two sources familiar with the matter, that 755 million yuan of the trust loan had been repaid. However, the absence of the remaining payment meant that the loan was now in default, he added in the letter to investors on the loan.

Shimao and China Credit Trust Co did not respond to requests for comment.

Separately, its smaller rival, Guangzhou R&F Properties, said it did not have sufficient funds to buy back a $ 725 million bond because sales of its assets did not go as planned.

Chinese developers face unprecedented liquidity shortage due to years of regulatory restrictions on borrowing, sparking a spate of overseas defaults, rating downgrades and sales of stocks and bonds developers.

The offshore default last month by China Evergrande Group, the world’s most indebted developer with more than $ 300 billion in liabilities, exacerbated a debt crisis that threatens the world’s second-largest economy.

Shimao had already seen a sharp drop in its shares and debt in December, sparked by concerns over an asset sale and the cancellation of apartment deals.

For R&F, he said on Wednesday in a filing that the funds available to settle his takeover bid for an offshore bond were significantly lower than the $ 300 million he had previously expected, due to continued volatility in the market. real estate sector.

Last month, R&F offered two takeover bid options to holders of 5.75% bonds, while seeking their consent to extend by six months the maturity of the bond due January 13.

The options redeemed the Notes at a 17% discount, or $ 830 for every $ 1,000 in principal; or by redeeming at most half of the warrants in full, both with accrued interest.

R&F said on the record that 71.7% of bondholders bid for the first option and 24.2% for the second – but added that it expected to have “significantly less” than the 300. million dollars previously planned to buy back the bonds.

“The proceeds from certain asset sales contemplated by the group may not materialize on the settlement date,” he said, adding that the settlement date had been postponed two days to around January 12.

In last month’s document, R&F said it would accept tickets offered on a pro rata basis, and that any tickets not accepted for purchase would be returned to bondholders. Holders who deposited would also be deemed to have approved the extension of the term.

As of 09:35 GMT, the bond was trading at 56.5 cents to the dollar, compared to 66.5 overnight, according to data from Duration Finance. R & F’s other international bonds also fell.

Shimao’s bond due July 2022 dipped to 47.625 from 70.6.

Ashore, most of the two developers’ yuan bonds also fell, with the Shimao bond due in September 2022 dropping 11%.

Hong Kong-listed shares of Shimao closed 5.2% lower. R&F shares gained 2.3%.

($ 1 = 6.3753 yuan Chinese renminbi)

(Report by Jason Xue, Steven Bian and Ma Rong in Shanghai, Clare Jim in Hong Kong, edited by Jacqueline Wong and Mark Potter)

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Is the Fed ready for another Minsky moment if the asset price bubble bursts? https://aisa-net.com/is-the-fed-ready-for-another-minsky-moment-if-the-asset-price-bubble-bursts/ Tue, 04 Jan 2022 15:50:00 +0000 https://aisa-net.com/is-the-fed-ready-for-another-minsky-moment-if-the-asset-price-bubble-bursts/

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We are still in the planning stage and it is likely that we will establish a new R&D division in the United States.

More information will be available soon.

With our best wishes we share a happy new year,

PHOENIX RISING COMPANIES
DS Chang
President and CEO

THE SOURCE: Phoenix Rising Companies

See the source version on accesswire.com:
https://www.accesswire.com/680470/2021-Year-end-Shareholder-Update

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China sees ‘unprecedented’ difficulty in stabilizing trade in 2022 https://aisa-net.com/china-sees-unprecedented-difficulty-in-stabilizing-trade-in-2022/ Thu, 30 Dec 2021 06:57:16 +0000 https://aisa-net.com/china-sees-unprecedented-difficulty-in-stabilizing-trade-in-2022/

(Bloomberg) – China faces “unprecedented” difficulties in stabilizing trade next year as favorable conditions that have boosted export growth this year will not be sustainable, Commerce Ministry official says .

Bloomberg’s Most Read

Export gains could slow as competing countries recover their production capacities and the inflation that has pushed up export values ​​gradually eases, Ren Hongbin, vice minister of the Ministry of Commerce, said at the meeting. briefing in Beijing on Thursday. The rapid gains in exports this year also make the baseline higher for 2022, he said.

China will increase awareness of business enterprises and their ability to manage currency risks, according to Ren. The government will also step up efforts to alleviate pressures related to international logistics and supply chain issues, he said, pledging to actively secure the supply of commodities.

We will “do everything to keep foreign trade within a reasonable range,” Ren said. These intercyclical measures aim to help stabilize trade in early 2022, he said. He expects China’s merchandise imports and exports to grow by more than 20% in 2021 to a total of $ 6 trillion.

Ren’s comments echo concerns raised earlier this week by Trade Minister Wang Wentao, who said it would be difficult for China to keep its trade growth stable next year.

Chinese exports have remained resilient throughout the year, providing some support to an economy that has been weighed down by regulatory crackdowns and repeated virus outbreaks. Overseas shipments have posted double-digit gains every month this year, with the exception of February when shipments jumped 155% from a decline the previous year.

But the trade outlook is less certain, as overseas appetite for Chinese goods is expected to wane if the global economic recovery falters. Chinese exporters are also facing high raw material prices, as well as rising labor and freight costs.

Bloomberg Businessweek Most Read

© 2021 Bloomberg LP

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China injects most liquidity in two months, triggering gains on bonds https://aisa-net.com/china-injects-most-liquidity-in-two-months-triggering-gains-on-bonds/ Tue, 28 Dec 2021 09:27:52 +0000 https://aisa-net.com/china-injects-most-liquidity-in-two-months-triggering-gains-on-bonds/

(Bloomberg) – Sign up for the New Economy Daily newsletter, follow us @economics and subscribe to our podcast.

Bloomberg’s Most Read

China increased its injection of short-term liquidity into the banking system to a two-month high as demand for liquidity increased before year-end. Government bonds won.

The People’s Bank of China added 200 billion yuan ($ 31 billion) in liquidity to the financial system through seven-day repurchase agreements, more than offsetting the upcoming 10 billion yuan. The yield on 10-year government bonds fell to 2.795%, the lowest level since June 2020.

The PBOC transaction came after an indicator of short-term borrowing costs rose the most in a year on Monday, a sign of liquidity shortages in the interbank market. The liquidity supply tends to tighten towards the end of the year as banks accumulate liquidity to prepare for regulatory checks.

“The large amount of injection will help ease the pressure on liquidity,” said Zhaopeng Xing, senior strategist at Australia & New Zealand Banking Group Ltd. “There is a need to help financial institutions get through the end of the year smoothly.”

Earlier this month, the PBOC lowered the required reserve ratio in a bid to maintain a plentiful supply of liquidity and support the country’s economic recovery from the pandemic. At its quarterly meeting, the PBOC pledged to use monetary policy tools more “proactively” to support growth.

The seven-day repo rate fell 13 basis points to 2.29% at 5:07 p.m. local time after climbing 52 basis points on Monday. Costs on the same tenor’s contracts in the forex market fell 5.16%, from the highest close since January in the previous session.

“The net injection will likely continue for the rest of the week,” said Peiqian Liu, Chinese economist at Natwest Markets. As the PBOC’s rhetoric in December leaned in the conciliatory side, signaling Beijing’s concerns about the near-term growth prospects, China should be prepared to use widespread easing tools to help the economy, he said. -she adds.

(Updates with bond movements in the first and second paragraphs, updates to the sixth paragraph with the latest prices.)

Bloomberg Businessweek Most Read

© 2021 Bloomberg LP

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South China Sea Buddhism Roundtable 2021 opens in Shenzhen https://aisa-net.com/south-china-sea-buddhism-roundtable-2021-opens-in-shenzhen/ Fri, 24 Dec 2021 16:22:00 +0000 https://aisa-net.com/south-china-sea-buddhism-roundtable-2021-opens-in-shenzhen/

The Shenzhen South China Sea Buddhism Roundtable 2021 was held in Shenzhen on December 9.

South China Sea Buddhism Roundtable 2021 opens in Shenzhen

The Shenzhen South China Sea Buddhism Roundtable 2021 was held in Shenzhen on December 9.

The Shenzhen South China Sea Buddhism Roundtable 2021 was held in Shenzhen on December 9.

London, UK, December 24, 2021 (GLOBE NEWSWIRE) – The 2021 South China Sea Buddhism Roundtable in Shenzhen was held in Shenzhen on December 9. Guests from 18 countries and regions, including Cambodia, Laos, Sri Lanka, Thailand, Mongolia and Myanmar, attended the meeting through physical and virtual participation. Focused on the theme “Building Compassion and Illuminating the Heart, Fighting COVID and Preserving Peace,” the meeting featured equal dialogue, candid conversations, sharing of ideas and a census, in the hope of use Buddhist kindness to bring spiritual comfort to those who are suffering. of the pandemic. International politicians and former political leaders, including Deputy Prime Minister of Cambodia Men Sam An, Deputy Prime Minister of Mongolia S. Amarsaikhan, President of the Lao Front for National Development Sinlavong Khoutphayhoune, former Prime Minister British Minister Tony Blair, sent letters and messages of congratulations to the conference.

Laos has been invited to be the guest of honor at this year’s event. At the end of 2021, China proposed a joint strategic project with Laos to “transform the landlocked country into a country linked to the land”. The China-Laos Railway has been completed and opened to traffic, bringing new benefits to the Lao people and strengthening mutual assistance and exchanges between Chinese and Lao Buddhist communities. His Holiness Maha Bounma Simmaphom, vice president of the Lao PDR Central Buddhist Community Organization, said many Buddhist and Buddhist leaders from around the world have participated in previous editions of the roundtable.

Chinese master Yin Shun makes a six-point proposal with calls for a joint pandemic response.

Yin Shun, vice president of the Buddhist Association of China and abbot of the Shenzhen Hongfa Temple, gave a keynote address. He said the presence and free discussions of eminent monks from the South China Sea region are the best illustration of freedom of religion, people-to-people bonds and the shared destiny of the Buddhist community around the world. .

Master Yin Shun said that this year’s roundtable marks the new start of another five-year plan, and over the next five years, the roundtable will open its arms to more countries and regions, making it a port for the souls of believers. He made six proposals: First, fight COVID and comfort the people. The roundtable secretariat will establish a dedicated South China Sea Buddhism charity office to strengthen cooperation against COVID-19 for the Buddhist community in South China Sea countries and beyond. Second, stay united and create synergy. Continued efforts should be made to implement the consensus reached at the roundtable over the past five years, seek common ground while reserving differences, make joint efforts to protect the South China Sea, continue common development and create a better future, jointly strengthen the power of speech and the visibility of Buddhism in the South China Sea, and adapt to changing times to enhance the notion of “community of destiny for the region”. Third, to stimulate exchanges and mutual learning for harmony between nations. Buddhist leaders from all countries and regions of the South China Sea will continue to conduct regular exchange of visits, promote communication and mutual learning, strengthen national friendships and strengthen cooperation in various fields. Fourth, relieve suffering and impart Buddhist compassion. The Shenzhen Hongfa Temple Charity Foundation will be used to communicate and coordinate poverty reduction and relief programs in the region. Fifth, protect the environment and preserve a green world. The secretariat of the Shenzhen South China Sea Buddhism Roundtable and the South China Sea Buddhism Foundation will cooperate with Buddhist temples and monasteries in various countries and regions of the South China Sea to conduct campaigns environmental issues, engaging more Buddhists to participate, contribute and advocate for global ecological progress. Sixth, strengthen self-discipline and cultivate good behavior. Buddhists must remain modest and disciplined, restrict behavior, strengthen beliefs, guard against wrongdoing and purify hearts.

Monks suggest stronger cooperation through Buddhist compassion.

During the panel discussion, Emit monks expressed their wish to achieve consensus through Buddhist wisdom and compassion. Ku Mara Bhivamsa, chairman of the Linguee Tutor Committee of Myanmar, urged all parties to unite their efforts to eliminate all the suffering of the peoples of the world. He quoted the Ratana Sutra and called for concerted efforts for a better future, including: 1) All the people of the world should be righteous, avoid cheating, wrongdoing and bad deeds; 2) Be faithful to each other and build trust; 3) Despite the different beliefs, religions and nationalities, efforts should be made to find solutions through dialogues without hate speech; 4) Help all living beings without kindness and great compassion; 5) Overcome all challenges through discussions and fair judgment, promote exchanges and dialogues for future cooperation.

Different schools of Buddhism share the same root and origin. Buddhist believers from the South China Sea region took an active part in the roundtable with deep friendship, kinship and blood ties.

Company: The Golden Age News Group

Contact Person: Ning Li

Email: ning.li@goldenagenewsgroup.com

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Financial Republicans call for OECD deal treasury analysis https://aisa-net.com/financial-republicans-call-for-oecd-deal-treasury-analysis/ Wed, 22 Dec 2021 19:21:19 +0000 https://aisa-net.com/financial-republicans-call-for-oecd-deal-treasury-analysis/

Washington DC–Republicans on the US Senate Finance Committee, led by non-commissioned member Mike Crapo (R-Idaho), have written to Treasury Secretary Janet Yellen renewing requests for information regarding international tax negotiations. To date, the Treasury has been unwilling or unable to fully engage with Congress to provide details of the negotiations, which will have a significant impact on American workers, businesses and incomes.

Senators are concerned about how the negotiations could negatively impact the competitiveness of the United States; the United States’ commitment to increase its overall minimum tax before any other country; and suggestions that the Treasury could implement the deal without the advice and consent of the Senate, bypassing the treaty process.

From letter:

“The administration’s rush to reach political agreement, linked to its domestic spending plans and the search for revenue, came at the expense of in-depth analysis and meaningful engagement with Congress and the government. business world, and may ultimately put American businesses at risk. . . . Given the potential of this agreement to undermine the competitiveness of the United States, we continue to be concerned about the lack of detail underlying the approach proposed under the first pillar and its lack of basis in tax principles. discernible.

“What is even more troubling is the Treasury’s continued insistence that the United States once again act first by dramatically increasing the United States global minimum tax. . . . Since the second pillar does not require other countries to adopt a global minimum tax, we are not convinced that our largest foreign competitors, like China, will adopt and apply a global minimum tax on the same terms or within the timeframe. agreed at the OECD.

“Finally, suggestions that the United States could fully implement the first pillar without the advice and consent of two-thirds of the Senate through the treaty process are very problematic. . . . [A]Any suggestion that the first pillar can be implemented without the ratification of a treaty constitutes a radical departure from previous precedents and calls into question the binding nature of such an agreement, thus threatening tax security even as many countries. our companies, and this administration, claim to seek under Pillar One.

Senators end the letter with a detailed list of questions regarding the proposals, reiterating that any opportunity for a bipartisan outcome will require greater transparency and a commitment from the Treasury.

All Republican members of the finance committee signed the letter:

  • Mike Crapo (R-Idaho, Ranking Member)
  • Chuck Grassley (R-Iowa)
  • John Cornyn (R-Texas)
  • John Thune (R-South Dakota)
  • Richard Burr (R-North Carolina)
  • Rob Portman (R-Ohio)
  • Pat Toomey (R-Pennsylvania)
  • Tim Scott (R-South Carolina)
  • Bill Cassidy (R-Louisiana)
  • James Lankford (R-Oklahoma)
  • Steve Daines (R-Montana)
  • Todd Young (R-Indiana)
  • Ben Sasse (R-Nebraska)
  • John Barrasso (R-Wyoming)

The full text of the letter can be read here or below.

______________________________________

Dear Secretary Yellen,

We remain focused on ensuring that the agreement reached within the Organization for Economic Co-operation and Development (OECD) / G20 on international taxation keeps American businesses and workers competitive globally. Because this administration has not provided us with the details necessary to evaluate the agreement, we renew our request for information.

The United States’ engagement in the OECD negotiations has always received broad bipartisan support given the key objective of eliminating discriminatory taxes on digital services (DST). Rather than prioritizing this common goal, the focus of this administration has shifted to its national agenda to increase taxes on American businesses, including through a higher global minimum tax. The administration’s rush to reach political agreement, linked to its domestic spending plans and the search for revenue, came at the expense of deep analysis and meaningful engagement with Congress and the world. business, and can ultimately put American businesses at risk.

Given the potential of this agreement to undermine the competitiveness of the United States, we continue to be concerned about the lack of detail underlying the approach proposed under the first pillar and its lack of basis in tax principles. discernible. Although you said that the first pillar would be “largely income neutral” for the United States, you declined to provide us with an analysis to support your claim. You also undermined that claim by acknowledging that open design features can “have a significant impact on US businesses and the US tax position relative to other countries.”

We are also concerned that the timetable for the implementation of the first pillar agreed by this administration is not realistic. The administration’s recent deals allow existing DSTs to remain in place, suspend all options for U.S. retaliation, and require implementation by December 31, 2023 in order for DSTs to be removed. Given the number of open questions remaining and the need for all countries to reach consensus, implementation by 2023 is likely unachievable. These deals appear to eliminate any US leverage, while attempting to manipulate Congress into acting – potentially to the detriment of US businesses and revenues – in order to obtain DST relief.

The Treasury’s continued insistence that the United States once again act first by dramatically increasing the U.S. global minimum tax. The United States already acted first when the Global Low Tax Intangible Income Minimum Tax (GILTI) was enacted four years ago. Yet the United States remains the only country to impose a global minimum tax on its businesses. Since the second pillar does not require other countries to adopt a global minimum tax, we are not convinced that our largest foreign competitors, like China, will adopt and apply a global minimum tax on the same terms or within the timeframe. agreed at the OECD.

Finally, suggestions that the United States could fully implement the first pillar without the advice and consent of two-thirds of the Senate through the treaty process are very problematic. Beyond constitutional concerns, any suggestion of implementation through an agreement between Congress and the executive at this point is grossly inappropriate: this administration has chosen not to engage with Congress to establish a legislative procedure defining the OECD negotiating objectives or providing for a detailed monitoring and consultation process. The Administration cannot now assert that it has the authority to enter into such an agreement. Overall, any suggestion that the first pillar can be implemented without the ratification of a treaty is a radical departure from previous precedents and calls into question the binding nature of such an agreement, thus threatening certainty. very fiscal that many of our businesses, and this administration, claim to seek under the first pillar.

Any opportunity for a bipartisan outcome will require greater transparency and engagement. We ask that you provide prompt answers to the following questions regarding these proposals:

  1. Please provide your estimate of the number of US companies that would fall under the scope of the first pillar.
  1. While we understand that there are open design issues, Treasury has clearly performed an analysis and identified a range of possible outcomes. Please provide point estimates for the following and describe the major design issues upon which these estimates depend:
    1. The amount of profit that would be reallocated between the United States and foreign countries, including a breakdown of estimated amounts by country.
    2. The net impact on Pillar 1 revenue in the United States.
  1. The Joint Committee on Taxation (JCT) has long been involved in OECD negotiations at the request of the two congressional tax drafting committees. If you do not wish to share this information directly with our members, do you agree to provide this information to JCT so that they can provide independent and confidential analysis?
  1. Please provide a proposed plan for the implementation of the first pillar, including:
    1. The approach proposed by the Treasury for implementation, including actions provided for by treaty, national legislation and changes to our competent authority agreements.
    2. The timeline proposed by the Treasury for the United States to implement the first pillar.
    3. If the Treasury’s position is that treaty action will not be necessary to implement the first pillar, by what means and under what authority will the United States enter into a multilateral convention? Please provide a detailed analysis of how each of the permanent establishment provisions of each of the U.S. bilateral tax treaties will be amended by means other than the formal treaty approval process.
    4. If the first pillar is not implemented by December 31, 2023, will US companies have recourse for DST collected by that date? Will other countries be free to adopt DST at that time?
    5. What are the OECD’s plans for public consultation with stakeholders, including Congress and the US business community, before design and implementation plans are finalized? What efforts is the Treasury Department making to ensure meaningful public consultation?
  2. What commitments, if any, has China made regarding the timeline for implementing a 15% global minimum tax? Have any of the other 134 countries that have joined the accord made a commitment to you regarding implementation?

We will continue to engage in good faith to assess the effects of this agreement on American workers, businesses and incomes. However, the current position of this administration of blocking our requests for relevant and material information made this determination impossible.

We appreciate your attention to these issues and look forward to your prompt response to our questions.

Truly,

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