China
The politics of China’s internet philanthropy
Author: Jian Xu, Deakin University
In China’s dynamic philanthropy sector, ‘internet philanthropy’ (hulianwang cishan) is now a leading trend. This refers to the new forms of ‘e-giving’ that allow ordinary people to make low-cost, fast and flexible donations through digital platforms — such as crowdfunding, online peer-to-peer donations, online charity auctions, and running for charity.
Internet philanthropy emerged in China in 2005 when two charitable organisations set up charity e-shops on Taobao. The ‘Free Lunch for Children’ campaign initiated by Deng Fei in 2011 and the ‘Love Save Pneumoconiosis’ project initiated by Wang Keqin that same year made internet philanthropy a buzzword.
Inspired by these two projects, China’s internet philanthropy grew when China’s major internet enterprises — including Sina, Tencent, Alibaba and Baidu — established their own dedicated online charity platforms. China’s existing social media platforms and e-payment systems, such as Weibo, WeChat and Alipay, have been key for the rise of internet philanthropy, providing the digital infrastructure for online fundraising and donations.
The Guo Meimei scandal in 2011 plunged the Red Cross and other official philanthropic organisations into a crisis of credibility. This created perfect conditions for a boom in internet philanthropy, which is widely regarded as more participatory, efficient, transparent and reliable.
The government soon harnessed this new trend. In 2015, Premier Li Keqiang proposed the Internet Plus (hulianwang jia) initiative. The initiative primarily aims to use digital technologies to re-energise traditional industries, but is also applied to various public service sectors such as social work, employment, community management and philanthropy.
The implementation of ‘Internet Plus philanthropy’ marks the start of the centralisation of China’s internet philanthropy. In August 2015, the government set up the China Internet Development Foundation (CIDF) — a public foundation registered with the Ministry of Civil Affairs (MCA) and managed by the Cyberspace Administration of China (CAC) as the leading foundation to promote internet philanthropy.
At the 2015 World Internet Conference held in Wuzhen, the CIDF launched the initiative ‘Let the Internet Become a Sea of Love: Proposal to Develop Internet Philanthropy’. In collaboration with China’s leading internet enterprises, this formed the first national alliance to develop internet philanthropy. Since 2016, the CAC — China’s central internet regulator — initiated the ‘Internet Philanthropy Project’ (wangluo gongyi gongcheng). The project annually selects, awards and propagandises advanced philanthropic organisations, online charity projects, volunteers and local CAC branches for their achievements.
The government is also increasing the regulation of internet philanthropy in order to ensure its legitimacy. The MCA has accredited 20 online charity platforms as legitimate channels for public fundraising online. In July 2017, the MCA issued two standards to strengthen supervision of online charity platforms to promote transparency and equity. The enforcement of the 2016 Charity Law and 2017 Foreign NGO Law introduced further restrictions on NGOs and foundations at home and abroad conducting charitable activities in China.
Why has the Chinese government embraced internet philanthropy, and what are the politics of promoting and centralising it?
Calling on internet enterprises to embark on internet philanthropy is a soft approach to governing China’s cyberspace. Different from the traditional hardline regulation, internet enterprises’ collective promotion of internet philanthropy through their digital platforms could produce a cyberspace with more ‘positive energy’ (zhengnengliang) content and subtly influence people’s everyday internet use.
The CAC guides these enterprises’ internet philanthropy work. For internet enterprises, embarking on internet philanthropy gives them a positive reputation. Ingratiating themselves with the state could also ensure they receive tax revenue support from the state for sustainable economic gain. This win-win situation could create a more sanitised cyberspace while bringing long-term profitability to internet enterprises.
Internet philanthropy is also an effective means to govern NGOs. NGOs often seek to organise their own institutions and harness citizen participation and engagement for policymaking and social change. The Chinese Communist Party (CCP) views NGOs as a potential…
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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