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China

China starts detaining petitioners ahead of regional congresses

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Authorities around China are tightening security measures around people who complain about the government, dispatching “interceptors” to stop anyone with a grievance from lodging petitions ahead of regional People’s Congresses later this month, petitioners and local residents said on Thursday.

Provincial governments have started announcing dates for regional People’s Congress and Chinese People’s Political Consultative Conference sessions, which are typically held in mid-to-late January, ahead of the National People’s Congress in Beijing in early March.

A petitioner from the southwestern province of Sichuan who gave only the surname Yang said she was recently intercepted on a petitioning trip to Beijing, and forcibly brought back to the provincial capital Chengdu recently.

“We were stopped by Beijing police at Changqiao, who checked our ID cards,” she said. “They told the [Chengdu] interceptors that they were not to abuse us physically or verbally when they got us back home.”

China’s army of petitioners, who flood the ruling Chinese Communist Party’s official complaints departments daily, frequently report being held in unofficial detention centers known as “black jails,” beaten, or otherwise harassed if they persist in a complaint beyond its initial rejection at the local level, even if they follow legal channels.

They are often escorted home forcibly by “interceptors” sent by their local governments to prevent negative reports from reaching the ears of higher authorities, where they face surveillance, violent treatment and possible detention on criminal charges, particularly during major political events or on dates linked to the pro-democracy movement.

Police officers check the identification cards of people visiting Tiananmen Gate ahead of China’s 20th Communist Party Congress in Beijing, Oct. 13, 2022. (Noel Celis/AFP)

A rights activist in the northeastern province of Liaoning who gave only the surname Zhang said “stability maintenance” operations are in full swing where he lives.

“People are being detained on a daily basis,” he said. “They’re holding a lot of petitioners in the detention center.”

“People from the neighborhood committee won’t let you go anywhere — all the petitioners know that security guards and auxiliary police will turn up the moment they make any kind of move,” Zhang said.

Mobilizing ‘interceptors’

A resident of the northern port city of Tianjin who gave only the surname Li for fear of reprisals gave a similar account.

“They started arresting people a few days ago,” she said. “If you have ever petitioned [the government], they won’t let you board a bus.”

“There are more people intercepting petitioners than there are petitioners right now,” she said, adding that neighborhood committees, the most local unit of the Chinese government, are also mobilizing “interceptors” to make sure nobody from that neighborhood is seen petitioning in provincial capitals and other major cities during the People’s Congress season.

Sometimes, they don’t even wait to see if people are planning a petition, Li said.

“In a lot of places, they just go right ahead and detain you if you have ever petitioned,” she said, citing the recent detention of petitioner Lin Minghua in Beijing for no obvious reason.

Local residents with red armbands, identifying them as security volunteers, keep watch near Zhongnanhai leadership compound in Beijing, March 1, 2017. (Jason Lee/Reuters)
Local residents with red armbands, identifying them as security volunteers, keep watch near Zhongnanhai leadership compound in Beijing, March 1, 2017. (Jason Lee/Reuters)

A Beijing-based petitioner who gave only the surname Zhou said that the provincial and municipal People’s Congress season is a politically sensitive time for the authorities, and the government is stepping up stability maintenance operations aimed at preventing public dissent or protest before it gets under way.

“All petitioners, rights activists and dissidents are targeted by the government [at this time] for stability maintenance,” Zhou said. 

A move to neighborhood ‘grids’

China is moving ahead with plans to shift local law enforcement from police stations to neighborhood “grids,” where local volunteers and teams of vigilantes will enforce the law and residents will be encouraged to inform on each other, the Public Security Ministry announced in March 2023.

Authorities across the country are starting to lay off auxiliary police officers and merge local police stations with a view to outsourcing much of their daily work to neighborhood officials and local militias under a “grid management” system.

The shift will likely intensify China’s “stability maintenance” operations – a system of coercion and surveillance that seeks to prevent acts of defiance against the ruling Chinese Communist Party before they take place.

Shanghai-based petitioner Ma Yalian, whose home was forcibly demolished by local authorities, said it scarcely matters whether petitioners stick to legal channels or not – they are still likely to be targeted.

“There’s actually no such thing as legal or illegal petitioning,” Ma said. “You are legally allowed to report issues.”

“But now they say it’s illegal, and control [petitioners] very tightly for stability maintenance,” she said. “They don’t even abide by their own laws any more.”

Provincial People’s Congresses will be held in Yunnan province on Jan. 17, in Hebei on Jan. 21, in Shanghai, Tianjin, Liaoning, Jiangxi, Hainan and Ningxia on Jan. 23 and in Xinjiang and Inner Mongolia on Jan. 30, according to recent media announcements.

Translated by Luisetta Mudie. Edited by Roseanne Gerin.

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Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses

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Companies in China must navigate compliance, trading, and reporting within the CCER framework, impacting operations and strategic objectives. The program focuses on afforestation, solar, wind power, and mangrove creation, offering opportunities for innovation and revenue streams while ensuring transparency and accuracy. The Ministry of Ecology and Environment oversees the program.


As companies navigate the complexities of compliance, trading, and reporting within the CCER framework, they must also contend with the broader implications for their operations, finances, and strategic objectives.

This article explores the multifaceted impact of the CCER program on companies operating in China, examining both the opportunities for innovation and growth, as well as the potential risks and compliance considerations.

Initially, the CCER will focus on four sectors: afforestation, solar thermal power, offshore wind power, and mangrove vegetation creation. Companies operating within these sectors can register their accredited carbon reduction credits in the CCER system for trading purposes. These sectors were chosen due to their reliance on carbon credit sales for profitability. For instance, offshore wind power generation, as more costly than onshore alternatives, stands to benefit from additional revenue streams facilitated by CCER transactions.

Currently, primary buyers are expected to be high-emission enterprises seeking to offset their excess emissions and companies aiming to demonstrate corporate social responsibility by contributing to environmental conservation. Eventually, the program aims to allow individuals to purchase credits to offset their carbon footprints. Unlike the mandatory national ETS, the revamped CCER scheme permits any enterprise to buy carbon credits, thereby expanding the market scope.

The Ministry of Ecology and Environment (MEE) oversees the CCER program, having assumed responsibility for climate change initiatives from the National Development and Reform Commission (NDRC) in 2018. Verification agencies and project operators are mandated to ensure transparency and accuracy in disclosing project details and carbon reduction practices.

On the second day after the launch on January 23, the first transaction in China’s voluntary carbon market saw the China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and gas producer, purchase 250,000 tons of carbon credits to offset its emissions.

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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China Implements New Policies to Boost Foreign Investment in Science and Technology Companies

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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.

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Q1 2024 Brief on Transfer Pricing in Asia

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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.

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