Tag Archives: third party payment

Is Apple Breaching China’s Foreign Exchange Management Rules in the App Store?

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(By You Yunting) In November of 2011, Apple Inc. began allowing its users in China to purchase app by RMB. At the time, the author believed that it means Apple would operate its AppStore in China. Yet unill now, the business concerning AppStore of Apple is still run by iTunes S.A.R.L.(the “iTunes”), the company registered in Luxembourg, a subsidiary of Apple Inc. Furthermore, according to the relevant International convention on transnational transaction, neither Apple nor iTunes is required to pay taxes for Chinese user’s purchase of the apps to the Chinese government. For Apple and iTunes, on one hand they take the payment in RMB, but on the other hand, they do not pay the taxes. This business model is achieved through the third party payment method. In this situation, the third party payment service provider would collect the payment from the Chinese users, and then transfer them to overseas. But this business model is at risk of violating the foreign currency control regulations of China. The following are the opinions of the author on this issue.

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Is Microsoft Involved in Corruption in China in Genuine Software Trend?

According to the report of local media in China (note: the link is in Chinese), the genuine software trend led by China authority has aroused corrupt, and the officers of Shenyang copyright department, a city in North China, have been punished for their misfeasance in the introduction of genuine software, and Microsoft Inc and its local sales agents are also involved in the scandal.

The Discipline Inspection Committee of CPC in Shenyang City and Shenyang Monitor Department recently investigated a case of forced purchase by cybercafé owner with the pressure from Shenyang Culture and Broadcast Administration. And the investigator claimed the scandal is the inharmonious sound in the construction of software environment, and also an unwise measure damaging the interests of enterprise and social public. The chief office of copyright office of Shenyang Culture and Broadcast Administration Pan Hai Long failed to follow the local regulation “Program on Promoting the Genuine Software Using in Cybercafes” in the administrative act, which demands the group buying, central purchasing and public bidding, and negotiated the purchase price directly with Microsoft accompanied with staffs from the industry association.

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