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The rise of China and contestation in global tax governance

2022/01/14 by Rasmus Corlin Christensen, Martin Hearson · 1 voice
Business, Management and Accounting · Economics, Econometrics and Finance · #Corporate Taxation and Avoidance #Taxation and Legal Issues #Taxation and Compliance Studies

paper · pdf · doi:10.1080/13602381.2022.2012992

openalex publication_date 2022/01/14 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/26

Abstract

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.

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