China
Activists call for probe into China’s ‘consular volunteers’ network
The Chinese Communist Party is running a global network of “consular volunteers” through its embassies and consulates who form part of its “United Front” influence and enforcement operations on foreign soil, according to a new report, prompting calls for democratic governments to investigate.
While Chinese embassies and consulates have been using such informal networks for at least a decade, they were recently formalized through a State Council decree that took effect on Sept. 1, yet the networks remain largely undeclared to host countries, the Spain-based rights group Safeguard Defenders said in a report published this week.
Consular volunteers are mostly drafted in to help with administrative tasks linked to consular protection, risk assessments, and even “warnings and advisories” to overseas citizens and organizations, the report said, citing multiple online recruitment advertisements and other official documents.
This gives them full access to individuals’ personal information, and “may also dangerously enhance their function of control over overseas communities and dissenters,” the report warned.
China is already known to rely on an illegal, overseas network of “police service centers” that are sometimes used as a base from which to monitor and harass dissidents in other countries.
Since taking power in 2012, Chinese leader Xi Jinping has launched an accelerated expansion of political influence activities worldwide, much of which rely on overseas community and business groups under the aegis of the United Front Work Department.
Under the radar
While Beijing has shut down some of its overseas police “service centers” following protests from host countries, the “consular volunteer” network has managed to fly under the radar until now, further enabling China’s overseas influence and illegal transnational law enforcement operations, according to the report.
According to the State Council decree, “The state encourages relevant organizations and individuals to provide voluntary services for consular protection and assistance.”
The state also “encourages and supports insurance companies, emergency rescue agencies, law firms and other social forces” to take part in consular work, it says.
The decree also requires Chinese nationals overseas to “abide by the laws of China,” regardless of location.
Organizations and individuals that “make outstanding contributions to consular protection and assistance” are to be commended and rewarded, it says.
And official reports on volunteer commendation ceremonies and training events show that they are – under the supervision of individuals with “direct and demonstrable ties to the CCP’s United Front,” the Safeguard Defenders report said.
“The [consular volunteer] network runs through United Front-linked associations and individuals and shows the involvement of the Overseas Chinese Affairs Office,” it said, adding that the Office was labeled an “entity that engages in espionage” by the Federal Canadian Court in 2022.
Global effort
A March 2023 recruitment drive by the Chinese Embassy in the Czech Republic posted to an official website called for volunteers from among “overseas Chinese, international students, Chinese employees of Chinese-funded enterprises and other individuals in the Czech Republic, overseas Chinese groups, Chinese-funded enterprises and other organizations, institutions and groups.”
Similar notices have been seen in Trinidad and Tobago, Botswana, Turkey, Malaysia, Johannesburg, Equatorial Guinea, Chile and Japan, the report said, adding that the Overseas Chinese Affairs Office has also been directly named as a participant at training events for consular volunteers in Rio de Janeiro and Florence, Italy.
According to the Australian Strategic Policy Institute, “the United Front system acts as a liaison and amplifier for many other official and unofficial Chinese organizations engaged in shaping international public opinion of China, monitoring and reporting on the activities of the Chinese diaspora, and serving as access points for foreign technology transfer.”
The Safeguard Defenders report called on democratic countries to review the practice of “consular volunteering” by Chinese diplomatic missions, and warned them not to take part in United Front-linked events.
French current affairs commentator Wang Longmeng described consular volunteers as quasi-spies.
“The so-called assistance in providing consular services actually means collecting financial support from overseas Chinese individuals,” Wang said. “This can help the Chinese Communist Party control overseas Chinese remotely, making them loyal to party and state, as well as helping China to steal Western technology and intelligence.”
“These people are also collecting information on dissidents, and many dissidents’ family members back home are also being threatened,” he said. “This is a quasi-espionage organization and an integral part of the Chinese Communist Party’s transnational repression network.”
Wang said European countries have been fairly slow to catch on to such practices, compared with the United States.
“That encourages the Chinese Communist Party to extend its long arm even further,” he said. “Their intention was never to stop transnational repression and United Front work,” he said, calling for EU legislation to curb such activities “as soon as possible.”
APEC summit
Zhou Fengsuo, executive director of the U.S.-based Human Rights in China, said China’s consulate in San Francisco had engaged in the large-scale mobilization of patriotic protesters during President Xi Jinping visit last week to the Asia-Pacific Economic Cooperation leaders’ summit in the city..
“The Chinese Communist Party will take up every bit of space it can in democratic societies to extend its rule and engage in state persecution,” Zhou told Radio Free Asia. “Consulates wield a great deal of power overseas.”
“Much like it did with overseas police stations, the international community needs to face up to this form of [Chinese] government control.”
After Chinese international student Tian Ruichen took part in protests supporting the “White Paper“…
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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.
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- 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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