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China

Making Chinese IPOs a bit more private

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Alibaba Group co-founder and executive chairman Jack Ma attends the World Artificial Intelligence Conference (WAIC) in Shanghai, China, 17 September 2018 (Photo: Reuters/Aly Song).

Author: Juan Du, University of Sydney

The responses of Chinese regulators to initial public offerings (IPOs) by the country’s homegrown tech companies have made headlines beyond financial markets. With memories of the paused IPO and anti-trust investigations into Jack Ma’s Ant Group still fresh, regulators launched a series of investigations into Didi Global, China’s biggest ride-hailing company, within days of its IPO in New York on 30 June 2021.

Some media reports about the regulatory actions are skewed towards speculation about the Chinese Communist Party’s tightened grip over the tech giants. But based on public information, the accumulation of user data is a common theme in the investigations into Ant Group and Didi Global.

Like oil giants last century, big tech companies are facing growing challenges from states over their monopoly on user data. Super platforms act as basic infrastructure for the digital economy, enabling everything from the production to the distribution and consumption of digital services. Empowered by data, these platforms offer innovative solutions to digitalising traditional sectors. But they also enjoy higher pricing and bargaining power, hampering market competition, innovation and consumer interests.

In April 2021, Alibaba took a hefty penalty from Chinese regulators in the wake of anti-trust investigations. According to regulators, the company controlled over half of China’s online retail between 2015 and 2019. Since 2015, Alibaba has required merchants to choose between its platform and competitors’, using data and algorithms to implement this ‘pick one from two’ strategy — a violation of Chinese anti-trust law.

Alibaba was also accused of other data-related monopolistic behaviour. Its data-driven solutions, such as tailored search results for customers, make it difficult for merchants to switch platforms without losing their customer base, transaction records and review histories.

National security is also a concern when examining firm behaviour in cross-border exchanges of data. The probe into Didi Global was grounded in China’s National Security and Cybersecurity Laws, under which IPO-related cross-border activities require critical infrastructure operators to first seek evaluation from ad hoc Chinese regulators to pre-empt national security risks.

Two more companies came under scrutiny on the same grounds. Both control the personal data of millions of Chinese users and were recently listed in the US stock market. One of the companies, like Didi, manages large amounts of data on user identification and contact information, flow of vehicles and people and China’s transportation infrastructure.

Chinese regulators made revisions to the Cybersecurity Review Measures days after investigations into Didi. These made it compulsory for operators handling the data of over one million users to register with the cyberspace regulator for safety-related reviews before listing overseas. The cyber security examination will be undertaken by 14 Chinese regulators, and the securities regulator is the latest addition to this mechanism. The revisions referred to the Data Security Law, which will come into effect in September 2021.

The revisions are a typical case of policymaking lagging behind developments in industry. But when it comes to national security, countries often decide that it is better safe than sorry, as evidenced by the escalating screening of foreign investment in critical infrastructure by the United States, Japan, Australia and the European Union.

Didi’s treatment sent a ripple through the tech industry. Some tech companies like Meicai chose to delay their planned overseas IPOs to adjust to the new compliance requirements. Venture capitalists may have second thoughts over regulatory risks when investing in Chinese tech start-ups and see it as a hurdle for cashing in on their initial investments through IPOs. Chinese tech companies may be less favoured after foreign investors were spooked by the consecutive drops of Didi’s share price. Some firms may choose to instead list on the Hong Kong stock exchange.

Despite the chaos, there are some positives. The regulations restrain tech companies from illegal collection and use of data. Since 1 May 2021, companies have been prohibited from collecting data without consent beyond defined basic personal information. Big firms are more careful about monopolistic practices. The rival Chinese super platforms, WeChat and Alipay, are reported to be considering opening their ecosystems to each other and ending some…

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New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024

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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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Is journalist Vicky Xu preparing to return to China?

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Chinese social media influencers have recently claimed that prominent Chinese-born Australian journalist Vicky Xu had posted a message saying she planned to return to China.

There is no evidence for this. The source did not provide evidence to support the claim, and Xu herself later confirmed to AFCL that she has no such plans.

Currently working as an analyst at the Australian Strategic Policy Institute, or ASPI, Xu has previously written for both the Australian Broadcasting Corporation, or ABC, and The New York Times.

A Chinese language netizen on X initially claimed on March 31 that the changing geopolitical relations between Sydney and Beijing had caused Xu to become an expendable asset and that she had posted a message expressing a strong desire to return to China. An illegible, blurred photo of the supposed message accompanied the post. 

This claim was retweeted by a widely followed influencer on the popular Chinese social media site Weibo one day later, who additionally commented that Xu was a “traitor” who had been abandoned by Australian media. 

Rumors surfaced on X and Weibo at the end of March that Vicky Xu – a Chinese-born Australian journalist who exposed forced labor in Xinjiang – was returning to China after becoming an “outcast” in Australia. (Screenshots / X & Weibo)

Following the publication of an ASPI article in 2021 which exposed forced labor conditions in Xinjiang co-authored by Xu, the journalist was labeled “morally bankrupt” and “anti-China” by the Chinese state owned media outlet Global Times and subjected to an influx of threatening messages and digital abuse, eventually forcing her to temporarily close several of her social media accounts.

AFCL found that neither Xu’s active X nor LinkedIn account has any mention of her supposed return to China, and received the following response from Xu herself about the rumor:

“I can confirm that I don’t have plans to go back to China. I think if I do go back I’ll most definitely be detained or imprisoned – so the only career I’ll be having is probably going to be prison labor or something like that, which wouldn’t be ideal.”

Neither a keyword search nor reverse image search on the photo attached to the original X post turned up any text from Xu supporting the netizens’ claims.

Translated by Shen Ke. Edited by Shen Ke and Malcolm Foster.

Asia Fact Check Lab (AFCL) was established to counter disinformation in today’s complex media environment. We publish fact-checks, media-watches and in-depth reports that aim to sharpen and deepen our readers’ understanding of current affairs and public issues. If you like our content, you can also follow us on Facebook, Instagram and X.

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Guide for Foreign Residents: Obtaining a Certificate of No Criminal Record in China

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Foreign residents in China can request a criminal record check from their local security bureau. This certificate may be required for visa applications or job opportunities. Requirements and procedures vary by city. In Shanghai, foreigners must have lived there for 180 days with a valid visa to obtain the certificate.


Foreign residents living in China can request a criminal record check from the local security bureau in the city in which they have lived for at least 180 days. Certificates of no criminal record may be required for people leaving China, or those who are starting a new position in China and applying for a new visa or residence permit. Taking Shanghai as an example, we outline the requirements for obtaining a China criminal record check.

Securing a Certificate of No Criminal Record, often referred to as a criminal record or criminal background check, is a crucial step for various employment opportunities, as well as visa applications and residency permits in China. Nevertheless, navigating the process can be a daunting task due to bureaucratic procedures and language barriers.

In this article, we use Shanghai as an example to explore the essential information and steps required to successfully obtain a no-criminal record check. Requirements and procedures may differ in other cities and counties in China.

Note that foreigners who are not currently living in China and need a criminal record check to apply for a Chinese visa must obtain the certificate from their country of residence or nationality, and have it notarized by a Chinese embassy or consulate in that country.

Foreigners who have a valid residence permit and have lived in Shanghai for at least 180 days can request a criminal record check in the city. This means that the applicant will also need to currently have a work, study, or other form of visa or stay permit that allows them to live in China long-term.

If a foreigner has lived in another part of China and is planning to or has recently moved to Shanghai, they will need to request a criminal record check in the place where they previously spent at least 180 days.

There are two steps to obtaining a criminal record certificate in Shanghai: requesting the criminal record check from the Public Security Bureau (PSB) and getting the resulting Certificate of No Criminal Record notarized by an authorized notary agency.

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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