The rise of China and contestation in global tax governance Article Swipe

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China Diplomacy Negotiation Corporate governance Business Tax avoidance Foreign direct investment Global governance International trade Tax treaty Corporate tax Market economy Global Leadership International economics Economics Tax reform Political science Finance Macroeconomics Law Politics Management

Rasmus Corlin Christensen , Martin Hearson ·

YOU? · · 2022 · Open Access · · DOI: https://doi.org/10.1080/13602381.2022.2012992 · OA: W4205099443

This paper examines the relationship between China’s changing economy and its global business tax diplomacy. Three trends dominate: China is becoming a net capital exporter, emerging as a major consumer market, and is home to digital giant firms including Baidu, Tencent and Alibaba. The resulting drive to promote both ‘going out’ and ‘bringing in’ foreign direct investment has led China to engage selectively and strategically with Western-led institutions. We show how China variously challenges, defends, and develops alternatives to global tax standards in three cases: global efforts to tackle corporate tax avoidance, bilateral tax treaty negotiations, and administrative tax cooperation.