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 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
