China
Sina Weibo: Competition for Twitter?
Chinese microblog operator Sina Corp. already has what seems an unassailable lead over Twitter in China, thanks to the fact that Chinese government blocks access to the U.S. website for fear it could be used to spread political dissent. Now, as Sina aims to recharge its business growth by investing heavily in its microblog site, Weibo, some are speculating that the company intends eventually to take on Twitter overseas—where China’s censorship rules could flip things around and put Sina at a disadvantage. Sina is developing an English-language version of Weibo, which had over 140 million registered users at the end of April, a company spokesman said Wednesday. Sina doesn’t have a public timeline for its release and it’s still in the “first stage” of development, he said. He dismissed as speculation the possibility that Weibo could compete with Twitter. The spokesman couldn’t immediately confirm whether the English version will be a separate service or a new user interface for the current Weibo. A separate service would be a more aggressive move suggesting Sina might intend to compete globally with Twitter. The English version of Weibo will target the platform’s overseas users, who currently account for more than 10% of the total and many of whom may be overseas Chinese, the spokesman said. English-speaking foreigners in China could also use the service, he said. Just as Sina is working on new features like online games and e-commerce services to add to Weibo in Chinese, in the longer term Sina is also likely to add functions to its English version, the spokesman said. Sina already recently added an English-language user interface to its Sina Weibo iPhone app . Weibo users conduct most of the their activity on the service via mobile devices, rather than personal computers. Whether by design or not, an English Weibo would compete with Twitter for certain users. Twitter was gaining a following in China before it was blocked, along with Facebook, following deadly ethnic riots in China’s western Xinjiang region in 2009 . (Some dedicated Chinese users continue to use Twitter by using a tool like a virtual private network to run around China’s Internet censors .) Sina appears likely to police user posts on the English version of Weibo just as it does on the Chinese version, where it filters messages for sensitive content to comply with Chinese regulations . When asked if Sina will filter content on an English Weibo, the company spokesman said Sina will continue to comply with Chinese regulations. Sina Chief Executive Charles Chao in April said Sina will likely seek overseas partners for the development of Weibo. “It doesn’t compete in a foreign language and I think it’s a long shot. It’s not our top priority, but we probably will seek partners in other countries to develop our product,” he said. An English Weibo could appeal to overseas users particularly interested in China, and in the longer term Sina could aim to attract users based on Weibo’s unique features, said Mark Natkin, managing director of Marbridge Consulting in Beijing. Weibo has in some cases added features unavailable on Twitter, such as a section for comments on other users’ posts, he said. But China’s censorship rules could be a major hurdle for Sina overseas, and its services will need to meet a substantial demand not already met by Twitter or other websites, analysts said. “Really for Weibo, it’s what do you do that nobody else does? … And aren’t you affiliated with the Chinese government? Those are the two questions that are really going to damage Weibo the most,” said David Wolf, chief executive of Wolf Group Asia, a Beijing-based marketing strategy firm. –Owen Fletcher
Chinese microblog operator Sina Corp. already has what seems an unassailable lead over Twitter in China, thanks to the fact that Chinese government blocks access to the U.S. website for fear it could be used to spread political dissent. Now, as Sina aims to recharge its business growth by investing heavily in its microblog site, Weibo, some are speculating that the company intends eventually to take on Twitter overseas—where China’s censorship rules could flip things around and put Sina at a disadvantage. Sina is developing an English-language version of Weibo, which had over 140 million registered users at the end of April, a company spokesman said Wednesday. Sina doesn’t have a public timeline for its release and it’s still in the “first stage” of development, he said. He dismissed as speculation the possibility that Weibo could compete with Twitter. The spokesman couldn’t immediately confirm whether the English version will be a separate service or a new user interface for the current Weibo. A separate service would be a more aggressive move suggesting Sina might intend to compete globally with Twitter. The English version of Weibo will target the platform’s overseas users, who currently account for more than 10% of the total and many of whom may be overseas Chinese, the spokesman said. English-speaking foreigners in China could also use the service, he said. Just as Sina is working on new features like online games and e-commerce services to add to Weibo in Chinese, in the longer term Sina is also likely to add functions to its English version, the spokesman said. Sina already recently added an English-language user interface to its Sina Weibo iPhone app . Weibo users conduct most of the their activity on the service via mobile devices, rather than personal computers. Whether by design or not, an English Weibo would compete with Twitter for certain users. Twitter was gaining a following in China before it was blocked, along with Facebook, following deadly ethnic riots in China’s western Xinjiang region in 2009 . (Some dedicated Chinese users continue to use Twitter by using a tool like a virtual private network to run around China’s Internet censors .) Sina appears likely to police user posts on the English version of Weibo just as it does on the Chinese version, where it filters messages for sensitive content to comply with Chinese regulations . When asked if Sina will filter content on an English Weibo, the company spokesman said Sina will continue to comply with Chinese regulations. Sina Chief Executive Charles Chao in April said Sina will likely seek overseas partners for the development of Weibo. “It doesn’t compete in a foreign language and I think it’s a long shot. It’s not our top priority, but we probably will seek partners in other countries to develop our product,” he said. An English Weibo could appeal to overseas users particularly interested in China, and in the longer term Sina could aim to attract users based on Weibo’s unique features, said Mark Natkin, managing director of Marbridge Consulting in Beijing. Weibo has in some cases added features unavailable on Twitter, such as a section for comments on other users’ posts, he said. But China’s censorship rules could be a major hurdle for Sina overseas, and its services will need to meet a substantial demand not already met by Twitter or other websites, analysts said. “Really for Weibo, it’s what do you do that nobody else does? … And aren’t you affiliated with the Chinese government? Those are the two questions that are really going to damage Weibo the most,” said David Wolf, chief executive of Wolf Group Asia, a Beijing-based marketing strategy firm. –Owen Fletcher
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Sina Weibo: Competition for Twitter?
China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Q1 2024 Brief on Transfer Pricing in Asia
Indonesia’s Ministry of Finance released Regulation No. 172 of 2023 on transfer pricing, consolidating various guidelines. The Directorate General of Taxes focuses on compliance, expanded arm’s length principle, and substance checks. Singapore’s Budget 2024 addresses economic challenges, operational costs, and sustainability, implementing global tax reforms like the Income Inclusion Rule and Domestic Top-up Tax.
Indonesia’s Ministry of Finance (MoF) has released Regulation No. 172 of 2023 (“PMK-172”), which prevails as a unified transfer pricing guideline. PMK-172 consolidates various transfer pricing matters that were previously covered under separate regulations, including the application of the arm’s length principle, transfer pricing documentation requirements, transfer pricing adjustments, Mutual Agreement Procedure (“MAP”), and Advance Pricing Agreements (“APA”).
The Indonesian Directorate General of Taxes (DGT) has continued to focus on compliance with the ex-ante principle, the expanded scope of transactions subject to the arm’s length principle, and the reinforcement of substance checks as part of the preliminary stage, indicating the DGT’s expectation of meticulous and well-supported transfer pricing analyses conducted by taxpayers.
In conclusion, PMK-172 reflects the Indonesian government’s commitment to addressing some of the most controversial transfer pricing issues and promoting clarity and certainty. While it brings new opportunities, it also presents challenges. Taxpayers are strongly advised to evaluate the implications of these new guidelines on their businesses in Indonesia to navigate this transformative regulatory landscape successfully.
In a significant move to bolster economic resilience and sustainability, Singapore’s Deputy Prime Minister and Minister for Finance, Mr. Lawrence Wong, unveiled the ambitious Singapore Budget 2024 on February 16, 2024. Amidst global economic fluctuations and a pressing climate crisis, the Budget strategically addresses the dual challenges of rising operational costs and the imperative for sustainable development, marking a pivotal step towards fortifying Singapore’s position as a competitive and green economy.
In anticipation of global tax reforms, Singapore’s proactive steps to implement the Income Inclusion Rule (IIR) and Domestic Top-up Tax (DTT) under the BEPS 2.0 framework demonstrate a forward-looking approach to ensure tax compliance and fairness. These measures reaffirm Singapore’s commitment to international tax standards while safeguarding its economic interests.
Transfer pricing highlights from the Singapore Budget 2024 include:
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
China has been the world’s largest manufacturer for 14 years, producing one-third of global manufacturing output. In the Emerging Asia Manufacturing Index 2024, China ranks highest among eight emerging countries in the region. Challenges for these countries include global demand disparities affecting industrial output and export orders.
Known as the “World’s Factory”, China has held the title of the world’s largest manufacturer for 14 consecutive years, starting from 2010. Its factories churn out approximately one-third of the global manufacturing output, a testament to its industrial might and capacity.
China’s dominant role as the world’s sole manufacturing power is reaffirmed in Dezan Shira & Associates’ Emerging Asia Manufacturing Index 2024 report (“EAMI 2024”), in which China secures the top spot among eight emerging countries in the Asia-Pacific region. The other seven economies are India, Indonesia, Malaysia, the Philippines, Thailand, Vietnam, and Bangladesh.
The EAMI 2024 aims to assess the potential of these eight economies, navigate the risks, and pinpoint specific factors affecting the manufacturing landscape.
In this article, we delve into the key findings of the EAMI 2024 report and navigate China’s advantages and disadvantages in the manufacturing sector, placing them within the Asia-Pacific comparative context.
Emerging Asia countries face various challenges, especially in the current phase of increased volatility, uncertainty, complexity, and ambiguity (VUCA). One notable challenge is the impact of global demand disparities on the manufacturing sector, affecting industrial output and export orders.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
- China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
- Is journalist Vicky Xu preparing to return to China?
- Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
- China Unveils Plan to Upgrade Industrial Equipment
