China
Morality politics under Xi Jinping
Author: Delia Lin, University of Melbourne
Unlike any of his predecessors, including Mao himself, Xi Jinping has a political theory with his name etched on it. Xi Jinping Thought on Socialism with Chinese Characteristics for a New Era is enshrined in both the Party and State Constitutions. This may be seen as the return of Mao-style personalised politics. But more importantly, it characterises an ideology capable of justifying absolute rule of the Chinese Communist Party (CCP), laying the theoretical groundwork for an authoritarian single-party regime.
The unmitigated supremacy of the CCP and socialist rule of law are forged through a dual emphasis on ‘governing the country in accordance with the law’ and ‘moral principles’. These principles set the ideological foundation of the integration of law and morality for a new era.
Amalgamating law and morality is nothing new to China. For millennia, governing by moral code was at the core of imperial China’s Confucian–legalist statecraft. Both Confucian and legalist governing principles reject the acknowledgement of individual desires to pursue self-interest — believing it to lead to nothing but selfishness and corruption. Nor do they trust individuals as autonomous moral agents.
Confucian governance assumes an intrinsically moral ruler and the malleability of human nature through repetitive practice and the performance of moral principles. These practices are demanded of individuals in order to realise their ‘true’ humanity, hence the Confucian focus on li, decorum and ritual proprieties.
Legalism, on the other hand, emphasises the absolute power and authority of the ruler and uniform enforcement of punitive codes intended to curb corruption. Under the imperial dynasties, penal codes worked to reinforce Confucian moral principles, reflecting a Confucianisation of law.
The deep-seated influence of China’s ancient law-morality dialectic has resulted in the moral cultivation of individuals remaining high on the political agenda today. Many social problems and policies are framed in terms of suzhi, the citizens’ intrinsic moral quality. This approach to policy justifies the moral construction campaigns that set out to raise citizens’ suzhi, remoulding and transforming each of them into a new socialist person. While these moral campaigns have legalist roots, they were separate from the legal and judicial system — until the Xi Jinping era.
In the Xi era, the marriage of law and morality has become an integral part of building the Chinese socialist rule of law system. This amalgamation is achieved through incorporating a prescribed moral code, known as socialist core values, in all legal and judicial processes. The 12 designated moral principles are the national values of prosperity, democracy, civility and harmony; the social values of freedom, equality, justice and rule of law; and the individual values of patriotism, dedication, credibility and friendship.
In 2013, the CCP Central Committee issued the first government directive on socialist core values, requiring them to be integrated across the full range of administrative processes and social activities at all levels of government. The 2014 Decision of the CCP Central Committee’s Fourth Plenum of the 18th Party Congress was the first government document to link socialist core values to developing laws. It defined the meaning of governing the country in accordance with moral principles as ‘forcefully carrying forward the socialist core values, carrying forward China’s traditional virtues, fostering social morals, professional ethics, household virtues and personal character’.
In December 2016, the CCP Central Committee and State Council issued a policy document titled ‘Guiding Opinions on Further Integrating Socialist Core Values into the Construction of Rule of Law’, highlighting the importance of making all laws, regulations and public policies guide the value orientation of society. On 7 May 2018, the CCP Central Committee announced a plan to ‘fully incorporate socialist core values into all legislation’ within five to ten years. The plan identified ‘governing the country in accordance with the law’, and ‘moral principles’ as the two most distinctive features of the China-style socialist rule of law.
In response to these party directives, the Supreme People’s Court (SPC), China’s highest court, and the Supreme People’s Procuratorate have subsequently issued guidelines demanding that socialist core values be implemented in courts and everyday caseloads. The…
China
China Provides Tax Incentives on Special Equipment for Green and Digital Development
China has introduced a new tax incentive for companies investing in digital and smart upgrades of special equipment to encourage environmental protection and safe production. Companies can enjoy a 10 percent deduction from their corporate income tax payable. Eligibility and requirements are outlined by the Ministry of Finance and State Tax Administration.
A new China tax incentive aims to encourage companies to invest in digital and smart upgrades of special equipment. Companies upgrading certain equipment that aids environmental protection and safe production can enjoy a deduction of the investment at a rate of 10 percent from their corporate income tax payable. We explain the requirements of the new tax incentive.
China’s Ministry of Finance (MOF) and State Tax Administration (STA) have issued a new preferential corporate income tax (CIT) incentive for companies investing in digital and intelligent transformations of certain types of equipment. To be eligible for the incentive, companies must invest in the digital and intelligent transformation of equipment related to energy and water conservation, environmental protection, and safe production.
The new tax incentive aligns with a State Council Action Plan, released in March 2024, which aims to accelerate the renewal of large-scale equipment and consumer goods, promoting high-quality development and driving investment and consumption for long-term benefits.
If the annual CIT payable is insufficient for the offset, it can be carried forward to future years for up to five years.
The CIT payable refers to the balance after multiplying the annual taxable income by the applicable tax rate and deducting the tax reductions and exemptions according to China’s CIT Law and relevant preferential policies.
Note that companies enjoying the tax incentives must use the transformed equipment themselves. If the equipment is transferred or leased within five tax years after the transformation is completed, the incentives must stop from the month the equipment is no longer in use, and the previously offset CIT must be repaid.
The “special equipment” eligible for the preferential tax treatment covers equipment purchased and used by companies listed in the Catalog of Special Equipment for Safe Production for Corporate Income Tax Incentives (2018 Edition) and the Catalog of Special Equipment for Energy Saving, Water Conservation, and Environmental Protection for Corporate Income Tax Incentives (2017 Edition).
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
Revealing the Encouraged Industries of Hainan in 2024: Unlocking Opportunities
The 2024 Hainan Encouraged Catalogue, issued by the NDRC, MOF, and STA, aims to boost industries in the Hainan Free Trade Port. It prioritizes sectors like tourism, modern services, and high technologies, offering incentives for foreign investment and market access expansion since 2020. The Catalogue includes 176 entries across 14 categories, with 33 new additions focusing on cultural tourism, new energy, medicine and health, aviation, aerospace, and environmental protection.
The National Development and Reform Commission (NDRC), in collaboration with the Ministry of Finance (MOF) and the State Taxation Administration (STA), has issued the Catalogue of Industries Encouraged to Develop in Hainan Free Trade Port (2024 Version), hereinafter referred to as the “2024 Hainan Encouraged Catalogue.” The updated Catalogue took effect on March 1, 2024, replacing the previous 2020 Edition.
Beyond the industries already addressed in existing national catalogues, the new entries in the 2024 Hainan Encouraged Catalogue are based on practical implementation experiences and the specific needs within Hainan, prioritizing sectors such as tourism, modern services, and high technologies.
The Hainan FTP has been providing incentives to draw investors to invest and establish businesses in the region, especially foreign investment. Alongside a phased approach to opening the capital account and facilitating free capital movement, Hainan has significantly expanded market access for foreign enterprises since 2020, particularly in sectors such as telecommunications, tourism, and education.
The Hainan Encouraged Catalogue comprises two main sections:
Similar to the approach adopted by the western regions, foreign-invested enterprises (FIEs) should always implement their production or operations in accordance with the Catalogue of Encouraged Industries for Foreign Investment.
On top of the industries already addressed in existing national catalogues, the 2024 Hainan Encouraged Catalogue encompasses 14 distinct categories and a total of 176 entries especially encouraged in the region, including 33 new additions compared to the 2020 Edition. These new entries predominantly span cultural tourism, new energy, medicine and health, aviation and aerospace, and ecological and environmental protection, among others.
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
Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
China’s standards authority has released draft standards for personal information protection compliance audits, potentially making them mandatory for companies in 2023. The audits will require companies to undergo annual or biennial checks based on the number of people’s information they handle. The draft standards outline the audit process and requirements, seeking public feedback until September 11, 2024.
China’s standards authority has released draft standards for conducting personal information protection compliance audits. Regular compliance audits to ensure compliance with personal information protection regulations may become a requirement for companies in China under draft measures released in 2023. We explain the audit processes and requirements proposed in the draft standards.
The Standardization Administration of China (SAC) has released a set of draft standards for conducting personal information (PI) protection compliance audits. Under draft measures released by the Cyberspace Administration of China (CAC) in August 2023, companies that process the PI of people in China are required to undergo regular compliance audits.
Specifically, companies that process the PI of over one million people must undergo a compliance audit at least once a year, while companies that process the PI of under one million people must carry out an audit at least once every two years.
While the draft measures stipulate the obligations of the auditing body and the audit scope, the draft standards outline the specific audit process, including evidence management and permissions of the audit organization, as well as the professional and ethical requirements of auditors.
The Secretariat of the National Cybersecurity Standardization Technical Committee is soliciting public feedback on the draft standards until September 11, 2024. Public comment on the draft measures released in August last year closed on September 2, 2023, but no updated document has yet been released.
The draft standards outline five stages of the PI protection compliance audit: audit preparation, implementation, reporting, problem rectification, and archiving management.
Auditors are required to accurately document identified security issues in the audit working papers, ensuring that the records are comprehensive, clear, and conclusive, reflecting the audit plan and its execution, as well as all relevant findings and recommendations.
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 Provides Tax Incentives on Special Equipment for Green and Digital Development
- Revealing the Encouraged Industries of Hainan in 2024: Unlocking Opportunities
- Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
- A Comprehensive Guide to China’s Expanded 144-Hour Visa-Free Transit Policy at 37 Ports
- Regulatory Changes in China Aim to Boost Service Sector Growth in Six Cities
- Adhering to Updated Registered Capital Regulations in China’s Revised Company Law
