China
Beijing’s BRI influence over the UN Human Rights Council
Author: Anna Hayes, JCU
As a United Nations Human Rights Council (HRC) member state, China has a responsibility to promote and protect human rights globally. Yet through its Belt and Road Initiative (BRI), Beijing has used economic coercion, inducement, harassment and manipulation to undermine the international human rights framework. This poses a serious threat to the effectiveness of the HRC.
Beijing prioritises ‘people-centred development’ over universally recognised human rights. But China’s high-modernist development at home involves human rights violations that have disempowering impacts on marginalised peoples. This is evident in the Tibet Autonomous Region and in the unfolding genocide in the Xinjiang Uyghur Autonomous Region (XUAR).
Focussing on XUAR, calls for a UN investigation into allegations of mass human rights violations in the region were first raised in 2018. But action was delayed by Beijing’s unwillingness to allow entry and then by COVID-19.
These delays prompted 22 states to present a letter to the HRC in July 2019 expressing their concerns about human rights violations in the XUAR. They urged Beijing to accept the inspectors and called on China to uphold its obligations to protect human rights.
In response, Beijing mobilised 37 states to write a second letter defending China’s record in XUAR and praising its ‘counter-terrorism’ efforts. Almost all signatories of Beijing’s letter were BRI partner states, including several authoritarian states with dubious human rights records.
In May 2022, United Nations High Commissioner for Human Rights Michelle Bachelet gained access to the XUAR, but her tour was greatly restricted. There was a long delay in the release of the official report and allegations surfaced that Beijing attempted to pressure her into not releasing the report. The report was released on her last day in office.
Bachelet’s report found that China’s anti-terrorist legislation had resulted in serious human rights violations and possible crimes against humanity. It documented the use of ethnic profiling, arbitrary detention, torture and other forms of ill-treatment, including rape and sexual abuse. It also reported the denial of reproductive rights, the eradication of rights to privacy and free movement for Uyghurs, enforced disappearances and the targeted eradication of Islam and religious sites.
The report also identified the transnational reach of China’s human rights violations, arguing that the Chinese state has been threatening and intimidating members of the diaspora community and has severed contact within families.
In response to the report, the 51st session of the HRC considered a motion seeking a debate on the situation of human rights in the XUAR. Prior to the vote, China’s ambassador to the United Nations deployed wedge politics to divide member states by alleging that the motion was a ‘US plot’ and warning developing states that they ‘could be targeted’ next.
While the vote was close, the motion was defeated. Beijing claimed this outcome as a victory against ‘Western human rights’ being ‘imposed’ on the rest of the world. These statements call into question China’s suitability as a member of the HRC given its objections to the universal human rights framework that underpins the HRC.
Of the 19 states that voted against the motion, excluding China, all states have BRI agreements. Of those states that abstained from voting, 8 out of the 11 have BRI agreements with China.
This vote raises questions about the extent of China’s influence over international forums and the possible emergence of a Chinese-led bloc of BRI states. Given that BRI agreements are not made public, it is difficult to identify specific economic promises and rewards that may be jeopardised if state leaders displease Beijing in international forums like the HRC.
Beijing’s coercive diplomacy and economic sanctions against Australia may be viewed by BRI partner states as a cautionary tale even though Australia is not a BRI partner state. Beijing has also used economic coercion against BRI partners states such as Lithuania and South Korea, demonstrating that Beijing is prepared to flex its muscle against BRI partners to get what it wants.
Of the 47 member states on the HRC, only 13 states do not have a BRI agreement with China. Given Beijing’s track record of deploying economic punishment to achieve its goals, BRI partner states are more susceptible to economic coercion and may not be willing to support votes unfavourable to Beijing.
The XUAR situation…
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
