China
WeChat ban a catch-22 for Chinese Australians
Author: Haiqing Yu, RMIT University
Chinese social media network WeChat is facing global scrutiny and possible bans due to its handling of user data privacy, its censorship and surveillance practices and the widespread misinformation and propaganda campaigns it hosts supposedly on behalf of the Chinese Communist Party. Yet members of the Chinese diaspora in Australia continue to use WeChat as their main social media platform, despite the availability of alternative social media networks that claim to protect privacy and freedom of expression.
Global scrutiny of Chinese digital platforms such as TikTok and WeChat has been front-page news since July 2020. These globally successful Chinese platforms are caught in the crossfire of geopolitical tensions between China and India, and China and the United States. They have been subjected to scrutiny over ‘security’, ‘surveillance’ and ‘influence’.
In July, India banned TikTok and WeChat along with 57 other Chinese apps amid military tensions along the India–China border, citing a threat to ‘sovereignty and integrity’. In August, US President Donald Trump weighed in on the debate by signing two executive orders banning any US transactions with WeChat operator Tencent and TikTok operator ByteDance citing ‘security concerns’. This came as ByteDance was pressured to ‘sell’ its US TikTok operations to a US company. Microsoft, followed by Oracle, entered into discussions about taking over the popular app.
In Australia, the same apps are also under increasing scrutiny from the Australian government and face the threat of being banned. At the end of July 2020, TikTok and other global social media companies fronted a Senate inquiry into foreign interference conducted on social media misinformation.
WeChat has been at the centre of controversy over surveillance and censorship on Chinese digital platforms for a long time. Public scrutiny intensified in Australia in the context of the potential WeChat ban in the United States. The Australian media has given extensive coverage to claims that a private WeChat group was inappropriately engaged by a staffer of New South Wales Legislative Council parliamentarian Shaoquett Moselmane. Two Chinese scholars in the same chat group had their Australian visas cancelled.
The potential ban in the United States has divided opinions into three camps. Those opposing the ban say they rely on WeChat to communicate with family and friends. The more neutral position supports the right of users to choose their own platform but dislikes WeChat’s censorship practices. Supporters of the ban believe WeChat infringes on freedom of expression.
Some members of the Chinese Australian community have created parallel chat groups on WhatsApp, Letstalk, Line or Telegram in case of a local WeChat ban. But they continue to be drawn back to WeChat as their main social media platform. Why do members of the Chinese diaspora choose to self-censor when they have many other options available? The answer may lie in platform affordances available in WeChat as well as techno-material features of the app that produce ‘habits’, engender ‘necessity’ and provide users with a sense of ‘vitality’.
People are attracted to the platform for its design. WeChat is the international version of Weixin, which has targeted the Chinese market since 2011. It has been continuously optimising, improving and adding features as its global market expands. It is now an influential platform, open to third-party developers and content creators for free. This openness in platform design has ensured its agility as an innovative super-platform. People are attracted to the platform for its all-in-one functionality. The super-app concept is now an industry standard and copied among digital start-ups elsewhere.
New Chinese migrants take their social media habits to their host countries, even when they use ‘Western’ or non-Chinese social media platforms alongside Chinese ones. Research has shown that the formation of a social media habit is an intentional and emotional process driven by conscious decision making as well as unconscious affective attachment.
WeChat is the only platform that allows members of the Chinese diaspora to connect with family and friends in China, where familiar ‘Western’ platforms are banned. Chinese Australians are caught in a catch-22. They feel it necessary to continue using WeChat even if they sympathise with accusations of the platform’s monopolistic practices and unfair competition in the global market.
While it is…
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
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- Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China
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