China
Is WeChat’s threat to Australian elections overstated?
Author: Fan Yang, Deakin University
The 2019 Australian federal election was the first time that Australian politicians interacted with Mandarin speakers on the Chinese social media platform WeChat. The two major party leaders at the time — Scott Morrison of the Liberal-National Party (LNP) and Bill Shorten of the Australian Labor Party (ALP) — joined WeChat Official Accounts (WOAs) to give public announcements and conduct online video meetings as part of their election campaigns.
Concerns were raised about the possibility of Beijing’s influence in swinging the opinion of Chinese-speaking voters towards the party that maintained more moderate policies toward China. These fears came as no surprise — from 2020 onwards, Chinese-owned apps like WeChat and TikTok have faced public disputes, boycotts and parliamentary inquiries into issues of foreign interference, censorship and cybersecurity.
After Morrison’s WOA ‘went missing’ in 2022, Liberal members of parliament, including James Paterson and Gladys Liu, pledged to boycott WeChat. The 2022 elections saw the LNP increasingly politicising WeChat in the name of countering foreign interference, inflaming anti-China sentiments for political gain.
The incorporation of WeChat into politicians’ 2022 federal election campaigns became not only instrumental, but also divisive. In 2022, more LNP, ALP and independent politicians joined WeChat to promote their policies. But engagement with Chinese migrants on WeChat mostly remained one-way, with political communication largely terminated after the election.
While certain groups of LNP politicians shunned WeChat, others such as Josh Frydenberg and Paul Fletcher invested significantly in political advertising across several influential WOAs. Prime Minister Anthony Albanese and ALP member Clare O’Neil used WeChat to update Chinese voters on political announcements and ALP policies. Teal candidates Kylea Tink and Fuxin Li also participated on WeChat.
The significance of WeChat in political communications has also been highlighted in Australia’s state elections. In 2022, the then Victorian Liberal leader Matthew Guy initiated a series of political advertisements on WeChat ahead of the state election. In the leadup to the NSW state election in 2023, NSW Labor leader Chris Minns embarked on political campaigns using influential Sydney-based WOAs.
Political campaigns on WeChat are under-supervised by the platform and the Australian Electoral Commission. Although WeChat has clarified that the platform prohibits political campaigns, business-oriented and self-sponsored WOAs continue to publish political advertisements on behalf of Australian politicians, bypassing the platform’s regulations. In 2022, the Australian Electoral Commission groundbreakingly commissioned influential WOAs to publish educational materials about identifying disinformation.
Though politicians’ engagement on WeChat is vital in filling the gap between Mandarin-speaking migrants and the Australian political sphere, consistent engagement from politicians is lacking and the risks of using Chinese technologies remain. Resources invested in monitoring disinformation on WeChat are deficient, especially ahead of national or state elections. As Chinese language political commentaries by commercial WOAs are one of the major sources for Mandarin speakers to understand Australian politics, there is the possibility of misinformation or disinformation driven by commercial imperatives and non-professional translations.
Since 2023, scrutiny over Chinese-made technologies — from social media, digital devices and smart home appliances to commercial drones and urban infrastructure — is being further escalated by Labor government national initiatives to counter foreign interference. Concerns about WeChat are realistic and the app could bring various risks to Australia in the future. With Beijing having assumed more restrictive controls over the country’s tech industry since 2021, political interests are on par with commercial imperatives for Chinese tech companies.
Despite fears of foreign interference, our study — which monitored multiple rounds of Australian federal and state elections — has not yet identified alleged ‘Chinese influence’ across WOAs. Our assessment of Beijing’s influence is based on the number of China-sponsored articles that show a strong preference towards a particular candidate, which was apparent in the 2022 Hong Kong Chief Executive election.
During the 2019 and 2022 Australian elections, WOAs run by Chinese state…
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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