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 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.
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- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
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