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China Briefing Blog 
Provides news, analysis and commentary on economic, business and regulatory issues in China.
Post Frequency: 1.5/day Last Entry: November 20, 2009 at 06:45:50 Recent Entries: 513
By Andy Scott and Chris Devonshire-Ellis
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Ministry of Finance Clarifies Tax Exemptions for NGOs
Posted on November 20, 2009SHANGHAI, Nov. 20 -The Ministry of Finance has released two circulars clarifying the scope of tax-exempt income and tax-exemption identification for non-profit organizations (NGOs). On the circular on tax-exempt income, there are five types of income considered as tax-exempt income for NGOs including money donated by individuals, units, and government subsidies...
Notice to Local Online Game Companies in China, Less Violence Please
Posted on November 20, 2009Nov. 20 – China’s Ministry of Culture has released a notice to local online game companies to lessen the amount of violence, erotic content and gambling found in their games. Online game operators were advised to change the current gaming model that allows a player to advance only by killing non-player-controlled enemies reports Chinatechnews...
China Joint Ventures: Negotiating the Contract
Posted on November 18, 2009Part Five in our ?Joint Ventures as a Strategic Investment? series By Chris Devonshire-Ellis and Richard Hoffmann Nov. 18 – Joint ventures by their very nature are intensely idiosyncratic creatures, differing so much depending on circumstances that the area of contractual negotiations is really best dealt with professionally on a case by case basis...
New Standard for China Tax Invoices Being Introduced
Posted on November 18, 2009Nov. 19 – China?s State Administration of Tax has issued Circular Guoshuifa (2009) #142 concerning the simplification and unification of general tax invoices. This has largely been issued to facilitate the introduction of computerized tax data. The circular states that tax invoices will be divided into three categories come January 1, 2011: the general computer generated [...
Microsoft Ordered to Stop Sale of Programs Guilty of IPR Violation
Posted on November 17, 2009BEIJING, Nov. 18 – U.S. software company Microsoft has been ordered by a Beijing court to stop the sale of all Windows programs found in violation of a Chinese company’s intellectual property rights. The Beijing Number One Intermediate People’s Court ruled in favor of Beijing-based software company, Zhongyi Electronic, saying that Microsoft’s use of its two Chinese [...
Shanghai Apartment Sale Breaks Record at RMB96 Million
Posted on November 17, 2009SHANGHAI, Nov. 18 – A luxury apartment broke price records when it was sold for RMB96.09 million (US$14.07 million) to an unidentified buyer reports Shanghai Daily. The Tomson Riviera luxury complex apartment was priced at RMB160,848 per square meter and located on the 28th floor of Block A...
China Issues New Directives over Offshore Beneficial Ownership
Posted on November 17, 2009Nov. 17 – The State Administration of Tax has issued new guidelines on the determination of the ?beneficial owner? during the application of double tax treaties with China. According to Circular Guoshuifan (2009) 601, effective from October 27, 2009, any applicant who fails to substantiate that they are a beneficial owner will be denied treaty benefits...
China to Subsidize 294 Solar Power Plant Projects
Posted on November 17, 2009Nov. 17 – China is working its way to become a major solar power market as it plans to subsidize at least 50 percent of 294 solar power projects with total generating capacity of 642 megawatts (MW). Beijing recognizes it will need to strengthen its alternative power sources to continue economic growth and remedy its worsening [...
Foreign Direct Investment Increases for Third Straight Month
Posted on November 16, 2009Nov. 16 – Foreign direct investment into China increased for the third consective month in October the Ministry of Commerce said on Monday. According to Yao Jian, a spokesman for the ministry, FDI into China increased 5.7 percent year-on-year to US$7...
Industrial Output Expected to Grow by 10.5% for 2009
Posted on November 16, 2009Nov. 16 – China’s industrial output is expected to grow by about 16 percent year-on-year in November and industrial output for the entire 2009 could reach around 10.5 percent, Minister of Industry and Information Technology Li Yizhong said on Saturday...
Shanghai to Make Details of its Expense Budget Public
Posted on November 13, 2009SHANGHAI, Nov. 13 – Following Guangdong Province’s move to make its government expense budget downloadable to the public, Shanghai is also releasing details of its expense budget to the public for the first time. The expense budget will include collection, distribution and application of special funds, administrative and institutional unit revenues, as well as welfare and [...
2009 BusinessWeek CEO Forum: The Post-Recession World and China
Posted on November 12, 2009Nov. 12 – The 2009 BusinessWeek CEO Forum being held next week in Beijing will focus on China and the post-recession global economy. How will China and the rest of the world seize the opportunities presented in the post-recession global economy? For CEOs and their companies the opportunities and challenges brought on by the next transformation [...
Triggering Permanent Establishment in China
Posted on November 11, 2009By Hank Bourg Nov. 12 – China has many foreign companies operating within its borders. Some of these enterprises have permanent establishment in China while others do not. In either case, these enterprises are taxed on their China source income...
Hong Kong Offers to Cut Water Demand to Help Guangdong Drought
Posted on November 11, 2009HONG KONG, Nov. 12 – Hong Kong authorities have offered to cut down on the territory’s water supply from Guangdong Province to alleviate the worst drought in 60 years. Water levels in Guangdong from August to September are only half of last year’s but the province has continued to supply 2 million cubic meters of water [...
VAT Rebate Tax Policy for China-Based R&D Institutions
Posted on November 10, 2009Nov. 10 – The Ministry of Finance, General Administration of Customs and the State Administration of Tax have jointly issued Circular Caishui (2009) 115, which details the eligibility of tax exemption of imported equipment for foreign funded research and development centers in China...
From the Edge: Hand on the Till (China Version)
Posted on November 10, 2009From the Edge is the collected memories and experiences of an old China hand and will run in an irregular series of articles on this site over the next couple of months. By I.B. Bogard Nov. 10 – Due diligence. These were the two most important words that I was advised to use about the China business [...
Beijing Hosts The China Internet Forum
Posted on November 10, 2009BEIJING, Nov. 10 – The China Internet Forum, to be held at the Grand Millennium Hotel in Beijing on November 18, will be a chance for industry innovators to gain access to exclusive insights on taking advantage of industry trends, while building relationships with leading Chinese and international entrepreneurs, corporate executives, investors and government officials...
Swedish Arbitration Court Rules in Favor of Danone
Posted on November 10, 2009Nov. 10 – A Swedish arbitration court was found to have ruled in favor of French food group Danone saying that Chinese beverage producer Hangzhou Wahaha breached confidentiality and non-competition agreements. The confidential arbitration decision was given on the same day that Danone decided to amicably settle the matter with Wahaha reports The Financial Times...
Artificially Induced Snowfall in Beijing Disrupts Traffic, Flights
Posted on November 10, 2009BEIJING, Nov. 11 – Unusually early snowfall in Beijing that worsened traffic and grounded flights out of the city’s international airport yesterday was the second snowfall in eight days to be artificially induced says China Daily. The first snowfall occurred on October 31 when authorities shot 186 doses of silver iodide into the sky resulting in [...
Deed Tax Changes on Transfer of State-Owned Land
Posted on November 10, 2009Nov. 11 – The State Administration of Tax issued a formal reply to a local tax bureau on October 27 concerning the applicable basis for assessing deed tax on the transfer of state-owned land which has implications for foreign investors entering into joint ventures with SOEs or acquiring land from the state...
GM China Races Past 1.5 million Units for 2009
Posted on November 09, 2009Nov. 9 – U.S. auto giant General Motors said today that it had sold more than 1.5 million units this year, extending its record selling streak. In contrast to the weak U.S. sales the company has experience exiting bankruptcy, GM and its Chinese joint venture partners passed the 1...
Africa to Get US$10 Billion in Loans from China
Posted on November 09, 2009Nov. 9 – China has committed to providing US$10 billion in concessional loans to African countries and cancel debts as a way of increasing its role in the continent during the opening of the Forum on China-Africa Cooperation yesterday. The loan package will allot a US$1 billion special loan for small and medium-size African businesses...
SAT Clarifies Deed Tax Calculations on Transferred State-Owned Land Use Rights
Posted on November 06, 2009Nov. 6 – The State Administration of Taxation has clarified how taxes are to be paid on transfers of state-owned land. The ?Reply on Clarifying the Basis of Deed Tax Calculations Imposed on Transfers of State-Owned Land Use Rights? states that all economic benefits paid by transferees in obtaining their state-owned land use rights are subject [...
World Bank Raises China GDP Growth to 8.4 percent
Posted on November 05, 2009Nov. 5 – The World Bank became the latest major institution to raise its forecast for growth in China on Wednesday when they projected China?s economy to grow by 8.4 percent this year. The organization had forecast the economy to grow by 7.2 percent in June...
China Joint Ventures: Understanding the Intangibles
Posted on November 04, 2009Part Four in our ?Joint Ventures as a Strategic Investment? series By Chris Devonshire-Ellis and Richard Hoffmann Nov. 4 – The intangible aspects of entering into and running a successful joint venture in China include the business areas where culture, common sense, law and an understanding of finance all cross over and weave together...
Autumn Canton Trade Fair Buyers Increase
Posted on November 04, 2009GUANGZHOU, Nov. 5 – Overseas visitors to the autumn Canton Trade Fair “appeared 20 percent higher” than the previous two fairs earlier this spring and last autumn according to reports from the local office of Dezan Shira & Associates...
Disneyland Gets Approval for Shanghai Park
Posted on November 04, 2009SHANGHAI, Nov. 5 – The Shanghai municipal government has confirmed reports that the central government has finally approved the Shanghai Disneyland Project. The Shanghai Disneyland park, which has been on the drawing board for the past twelve years, had originally been passed over in preference to Hong Kong...
Foreign-Invested R&D Centers Exempt from Import Taxes on Goods for Scientific Development
Posted on November 03, 2009Nov. 3 – In an effort to encourage more scientific research and development, the Chinese government has issued tax exemption incentives for foreign-invested research and development firms in China. From July 1, 2009 to December 31, 2010, qualifying foreign-invested R&D centers will be exempt from having to pay import taxes on goods for scientific and [...
The Asia Comparator: New issue of China Briefing Examines the Emerging Markets in Asia
Posted on November 02, 2009Nov. 2 ? The November issue of China Briefing magazine is out now and available for download (click on the image ? complimentary subscription required). In this issue of China Briefing we expand our horizons and take a look at emerging Asia. Using statistics researched by the global financial services firm UBS, we extrapolated and added [...
China Joint Ventures: Financial Due Diligence
Posted on October 30, 2009Part Three in our ?Joint Ventures as a Strategic Investment? series By Chris Devonshire-Ellis and Richard Hoffmann Oct. 30 – Financial Due Diligence in China can be an awkward issue to resolve, not least because there are no publicly available records systems in China that permit viewing of reported accounts...
Guangzhou Taxis Drive to M&A Consolidation
Posted on October 30, 2009GUANGZHOU, Oct. 30 – The taxi service sector in Guangzhou could see consolidation ahead of the 2010 Asian Games, as the local government has made it known they would prefer the three large state-owned companies currently operating acquire their smaller peers...
China: Exports are Yesterday?s News
Posted on October 30, 2009By Chris Devonshire-Ellis Oct. 30 – As regular readers of 2point6billion.com will know, the stacking up of China against other countries in Asia has been taking a battering recently. An economy too far slanted towards export manufacturing, a government caught on the hop, and an overabundance of egos when it comes to promoting China as being [...
United States, China Relax Trade Restrictions
Posted on October 30, 2009Oct. 30 – United States and China representatives have agreed to ease trade restrictions on certain sectors and stop issuing new trade protection measures against each other at the end of the 20th China-U.S. Joint Commission on Commerce and Trade talks held in China’s eastern city of Hangzhou...
Air China, Cathay Pacific to Set Up Largest Cargo JV in Shanghai
Posted on October 29, 2009SHANGHAI, Oct. 29 – Hong Kong’s Cathay Pacific Airways and Air China have agreed to partner to form the country’s biggest cargo joint venture in Shanghai in anticipation of rising demand. “The venture is expected to be launched ahead of the 2010 Shanghai World Expo but still requires regulatory approval,” Kong Dong, chairman of Beijing-based Air [...
China Joint Ventures: Legal Due Diligence
Posted on October 28, 2009Part Two in our ?Joint Ventures as a Strategic Investment? series By Chris Devonshire-Ellis and Richard Hoffmann Oct. 28 – Legal due diligence is a complex and contentious issue when it comes to joint ventures in China. Many investors seem to regard it as a waste of time and money; they?ve developed a relationship with an existing [...
China Clarifies Business Tax and Tax Relief Measures
Posted on October 28, 2009Oct. 28 – The Ministry of Finance and State Administration of Taxation jointly released Circular 111 on September 27, clarifying the scope of the China?s business tax and providing temporary tax relief. The BT regime was amended at the end of 2008 to bring within its scope any service, regardless of whether either the provider or [...
Shanghai Wants Free Exchange of Renminbi with New Taiwan Dollar
Posted on October 27, 2009SHANGHAI, Oct. 28 – Shanghai’s Financial Service Office is pushing for a free exchange between the renminbi and the New Taiwan dollar to improve the city’s financial ties with Taiwan. The city already opened a cross-border currency clearing system and authorities expect the system to eventually include the Taiwanese currency due to burgeoning trade between the [...
Hong Kong Authorities Move to Prevent Real Estate Bubble
Posted on October 26, 2009HONG KONG, Oct. 26 – Hong Kong’s Monetary Authority released a circular aimed at tempering the territory’s hot high-end property market by increasing the minimum down payment on luxury homes from 30 percent to 40 percent effective immediately...
China Joint Ventures As Strategic Investment
Posted on October 26, 2009Part One: Why the Need for a Chinese Partner? By Chris Devonshire-Ellis and Richard Hoffmann Oct. 27 – As the United States shows signs of emerging from recession, there has been some discussion on the best way to enter the China market but perhaps under reduced financial constraints...
Customs Increase Emphasis on Dutiable Value, HS Classification and Country of Origin
Posted on October 23, 2009Oct. 23 – The General Administration of Customs (GAC) has released GAC Order [2009] No. 49, that aims to strengthen customs enforcement by focusing on the dutiable value of imported goods, the harmonized system (HS) classification of imported and exported goods, and processing trade beginning October 1...
Is China Heading for a Bubble Bursting Downturn?
Posted on October 22, 2009By Chris Devonshire-Ellis Oct. 22 – One of the curious things about living and being involved in a country is often expressed in the silver birch alluding expression ?can?t see the wood for the trees.? Having spent the best part of twenty years in China, it can be difficult to shake off preconceptions about a country [...
VAT Refunds for China-based Manufacturers Contracting Overseas
Posted on October 21, 2009Oct. 21 – The State Administration of Tax has issued Guoshuihan (2009) 538 to its subordinate tax bureau concerning treatment of export VAT refunds (exemptions) on overseas contracted projects carried out by manufacturing enterprises. According to the circular, a manufacturing enterprise with general VAT payer status exporting goods of its offshore contracted projects is entitled to [...
Great Wall Motors Accuses Fiat of Industrial Espionage
Posted on October 21, 2009Oct. 21 – Chinese car company Great Wall Motor has filed a suit against Fiat in China for industrial espionage; alleging that it secretly photographed its production facilities. The suit was filed in Shijiazhuang in response to Fiat’s claim that Great Wall copied a Fiat car model...
China to Impose 36 Percent Tariff on U.S.-Made Nylon in Ongoing Trade Dispute
Posted on October 20, 2009Oct. 20 – The Ministry of Commerce has announced that it will be immediately collecting a 36 percent tariff on American-made nylon 6 or polycaprolactam in the latest development of the ongoing trade tussle between China and the United States. The ministry said that the tariff will be collected as a security deposit and will be [...
China Industry: Oct. 21
Posted on October 20, 2009Oct. 21- This is a regular series of relevant industry news from around China. Air transport China Southern Airlines Company intends to sell its 50 percent stake in the aircraft engine maintenance joint venture MTU Maintenance Zhuhai to China Southern Air Holding Co, its parent, for RMB1...
Coca-Cola Continues Growth with RMB600 Million Bottling Plant in Wuhan
Posted on October 19, 2009Oct. 19 – American beverage giant Coca-Cola continues to invest heavily into China with the opening of its newest RMB600 million bottling plant in Wuhan, Hubei Province. It will be Coca-Cola’s largest single still beverage investment in China thus far with an annual production capacity of 1 billion beverage bottles that includes bottled water, tea and [...
Individual Income Tax Treatment for Stock Compensation Schemes
Posted on October 16, 2009Oct. 16 – The Chinese State Administration of Tax has released circular Guoshuihan [2009] 461, clarifying PRC Individual Income Tax (IIT) treatment for income generated from share appreciation rights and restricted share units granted to employees by listed companies, as well as those from various stock plans...
New Macau Visa Rules to Reduce Mainland Visitors
Posted on October 16, 2009HONG KONG, Oct. 16 – Guangdong Province authorities are reportedly implementing new visa rules that would restrict mainland Chinese visits to casino haven, Macau, from once a month to once every two months. According to MarketWatch, Macau casino stocks ended lower yesterday when a report of the new visa rules came out and cited unidentified provincial [...
Beijing Plans RMB50 Billion Animation City
Posted on October 15, 2009Oct. 15 – Beijing is planning to raise RMB50 billion for an Animation and Game City inspired by Hollywood and Disneyland. Beijing has committed to provide RMB100 million yearly to support the project to attract the country’s emerging online game and internet companies like Sohugame, Linekong, NetEase, Tencent and Giant...
WFOE Branches: Differences in Tax Registrations
Posted on October 15, 2009By Richard Hoffmann Oct. 15 – Increasingly, companies that have already invested in a WFOE in China wish to set up branches in other cities to further develop their national business. Branches may have the same scope of business as the parent WFOE, however there are differences in the registration procedures for branches depending upon whether [...
Business Tax Exemption Policies on Financial Products and Services
Posted on October 15, 2009Oct. 15 – The Ministry of Finance and the State Administration of Tax have jointly released Caishui (2009) 111, which details a number of business tax exemption policies. The circular contains details on exemption from business tax (BT) on financial products trading businesses carried out by individuals, but also a number of BT exemption policies including, [...
Good Language Practice in China-Based Contracts
Posted on October 14, 2009By Richard Hoffmann Oct. 14 – When doing business in China, many contracts need to also be written in Chinese. There is also usually an issue over arbitration in contracts between Chinese and overseas entities. It is usually typical ? and often a legal requirement ? for the contracts of joint ventures or construction design contracts [...
Shanghai, Hong Kong Airport Operators Partner to Manage Hongqiao Airport
Posted on October 14, 2009Oct. 14 – The operators of the main international airports in Shanghai and Hong Kong have signed a joint venture to manage the Shanghai Hongqiao International Airport and make it highly competitive reports China Daily. Currently, the Hongqiao airport is mostly for domestic flights handling 22...
China to Invest RMB468.9 Billion for Western Region Development
Posted on October 14, 2009Oct. 14 – China plans to invest RMB468.9 billion in projects to further improve the development of its western region this year according to the National Development and Reform Commission (NDRC). Xinhua reports that the money will fund 18 projects that include railways, expressways, hydropower stations, shipping hubs, water control projects and airports in the region...
Volkswagen?s China Sales Beats 2008 Record
Posted on October 13, 2009Oct. 13 – German automaker, Volkswagen (VW), announced that sales in the Chinese mainland and Hong Kong from January to September has already topped last year’s sales record. “We surpassed the one million record sales landmark of last year already in middle of September,” Winfried Vahland, president and chief executive of Volkswagen Group China, said in [...
China Approves GM-Delphi Deal Following Conditions
Posted on September 30, 2009Sept. 29 – China’s Commerce Ministry has approved General Motors Co.’s plan to buy parts of auto parts maker Delphi under certain conditions that would prevent the two from monopolizing the industry. These conditions include forbidding GM and Delphi to divulge trade secrets about Delphi’s clients as well as requiring Delphi to ensure it supplies parts [...
China Tightens Royalty Payments via Double Tax Treaty Residency
Posted on September 30, 2009BEIJING, Sept. 30 – The State Administration of Tax moved last week to clarify the treatment of royalties under the nation?s double tax treaties. Guo Shui Han (2009) No. 507, published on September 23 and taking effect October 1, sets out the scope of permitted royalties under double tax treaties (DTAs) as well as what should [...
New Issue of China Briefing Tackles Setting Up in China
Posted on September 30, 2009Oct. 1 ? The October issue of China Briefing magazine is out now and available for download (click on the image ? complimentary subscription required). In this issue of China Briefing, we take a look at some procedures for establishing a presence in China...
Shanghai Expo 2010: The Canadian Pavilion
Posted on September 30, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
Average Wage Rate in Hong Kong Falls by 1.9 Percent
Posted on September 29, 2009HONG KONG, Sept. 29 – The average wage rate in Hong Kong for June fell by 1.9 percent in nominal terms compared to the same period last year, according to the Census and Statistics Department. The number of companies reporting decreasing wage rates were 19 percentage points higher compared to rates in March at 61 percent...
China to Ease FDI Threshold in Culture Industry
Posted on September 28, 2009Sept. 28 – China’s State Council government said it would lower the investment threshold for its entertainment and cultural industry to allow more private and foreign direct investment in state-owned media groups, reports Caijing. Beijing wants to develop the industry further by increasing its size and competitiveness by raising the export of culture-related products and services [...
New Expressway Cuts Travel Time to Hebei by Half
Posted on September 28, 2009Sept. 28 – The newly opened Beijing-Chengde Expressway has now cut travel time from Beijing to Hebei Province by half to two hours. The new RMB6.2 billion road is expected to boost tourism for Hebei Province and will will charge RMB105 one way. “Because the expressway will greatly improve the transport network access to Chengde, and [...
Beijing Clamps Down as 60th National Day Approaches
Posted on September 25, 2009BEIJING, Sept. 25 – Beijing is tightening security and speeding up preparations for the Communist Party’s 60th National Day celebrations on October 1. More armed soldiers have been deployed around the city, kite-flying has been banned and knife sales restricted...
Hongqiao Business Park to Begin Construction Next Year
Posted on September 24, 2009SHANGHAI, Sept. 24 – The city is scheduled to break ground on its new Hongqiao Business Park next year that will eventually feature offices, hotels, entertainment facilities, shopping malls and exhibition sites upon completion. The park will have a 26...
China Offers More Help for SMEs
Posted on September 23, 2009Sept. 23 – China’s State Council is offering more assistance to struggling small and medium enterprises (SMEs) by cutting taxes and expanding financing services. Shanghai Daily reports that for 2010, corporate income tax rate will be cut from 25 percent to 20 percent for small businesses with annual taxable incomes of less than RMB30,000...
Hong Kong Reports Record FDI Inflows for 2008
Posted on September 23, 2009Sept. 23 – Foreign direct investment (FDI) inflows to Hong Kong worth US$63 billion continued to come last year despite the global financial crisis, an increase of 15.9 percent year-on-year. This figure makes Hong Kong Asia’s second largest recipient of FDI and the seventh largest recipient in the world, says Invest Hong Kong...
State Watchdog Releases List of Blacklisted Imports
Posted on September 22, 2009Sept. 22 – The State Council watchdog for product quality has released a list of blacklisted imported products, reports Xinhua. Food, beverages and cosmetics products that make it on the list are either returned or destroyed. The list named 25 foreign companies including famous names such as PepsiCo and Mead Johnson...
Guidelines for Obtaining Import Tax Refunds
Posted on September 22, 2009Sept. 22 – Circular (2009) 84, which contains administrative measures for the ?levy first and refund Later? mechanism for import taxes, was jointly issued last July by the Chinese Ministry of Finance, the People?s Bank of China, the General Administration of Customs and the State Administration of Taxation...
Shanghai Expo 2010: The Taiwan Pavilion
Posted on September 21, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
Hong Kong Launches Council for Testing and Certification
Posted on September 21, 2009HONG KONG, Sept. 21 – The government launched the Hong Kong Council for Testing and Certification last week to serve as a consultant on government initiatives to develop the testing and certification industry. The council will also look at business opportunities for the industry and more ways to improve professional standards...
IBM to Collaborate with Shenyang on Smart City Project
Posted on September 18, 2009Sept. 18 – IBM will be collaborating with China’s Shenyang City and Northeastern University on a research lab to bring high-tech solutions that will allow the city to responsibly solve its environmental issues as well as provide a healthier environment for its citizens...
Changes to Chinese Input VAT Credits on Fixed Assets
Posted on September 17, 2009Sept. 17 – The Ministry of Commerce and State Administration of Taxation jointly issued Circular Caishui (2009) 113 on Sept. 9, providing further clarification on the applicable methods of evaluating input VAT credits on fixed assets. The circular provides definitions for VAT purposes on buildings, structures, and attachments to land as well as the VAT treatment [...
China FDI Up 7 Percent in August
Posted on September 17, 2009Sept. 17 – Foreign direct investment into China rose by 7 percent compared to the same period last year, the first rise in the past 11 months. Chinese state media reported that the mainland attracted US$7.5 billion in foreign investment during August...
Employee Allowances and Benefits Now Taxable
Posted on September 17, 2009Sept. 17 – China’s State Administration of Taxation (SAT) has announced that it will begin taxing certain employee allowances like telecommunications and transportation as part of its general campaign to require more companies to report their tax activities in detail and tighten tax collection...
China Clarifies Tax Deduction for Charitable Donations
Posted on September 16, 2009Sept. 16 – The Chinese Ministry of Finance, State Administration of Tax and the Ministry of Civil Affairs have jointly issued Caishui (2009) No 85; which deals with the first batch of Charitable Social Organizations (CSO) eligible for the deduction of charitable donations for income tax purposes...
Discovering Dalian?s High-Tech Zone
Posted on September 15, 2009By Gary Clubb DALIAN, Sept. 15 – Over a decade in the making, an ambitious series of high-tech development projects are now well underway in China?s northeastern port city of Dalian. Long a crucial player in both heavy and light industries, as well as distribution via shipping, Dalian is in the process of transforming itself into [...
New Procedures Issued for Customs Declarations
Posted on September 15, 2009Sept. 15 – China’s General Administration of Customs (GAC) has issued an announcement with a sample of the required additional documentation for assessing the value, classification and origin of goods effective October 1st. Following the GAC Announcement 49, “About Relevant Questions Concerning Additional Declaration of Imported and Exported Goods,” the additional forms will be used by [...
Hong Kong Nightlife Hub to Expand to Chengdu
Posted on September 15, 2009Sept. 15 – Hong Kong’s famous nightlife hub, Lan Kwai Fong, is set to expand to Chengdu by March 2010. The Hong Kong-based billionaire property developer, Allan Zeman, has announced plans to open another version of his Lan Kwai Fong branded leisure area in Chengdu...
China Tightens Double Tax Treaty Reporting
Posted on September 13, 2009Sept. 14 – The State Administration of Tax (SAT) has issued Circular 124 that further regulates tax administration for non-residents availing of the tax benefits provided by double tax treaty arrangements on their income from China. Foreign executives based in China for limited periods over a 12 month time frame currently may not have to declare [...
Foreign Invested Partnership Rule Opens New Avenues for FDI
Posted on September 11, 2009Sept. 11 – China’s Ministry of Commerce is finalizing the details of a draft regulation that is expected to be officially released by Beijing soon that allows foreign entities to apply for business licenses as a foreign invested partnership (FIP)...
China Tax Issues Concerning Employee Stock Options
Posted on September 11, 2009Sept. 11 – The State Administration of Tax has issued Circular 461 to provide guidance to previous Circulars 5 and 35 concerning the individual income tax treatment for employment-related Stock Appreciation Rights (SARs), and Restricted Stock (RS)...
Mobile Phones Now a Payment Tool
Posted on September 11, 2009SHANGHAI, Sept. 11 – China Unicom has just launched a new program in Shanghai that allows mobile phones to be used for paying taxi, bus and subway fares and soon for shopping as well. The company will provide users with a fare-settlement chip attached on the back of SIM cards...
Standard Chartered Issues Unique HK$150 Banknote
Posted on September 10, 2009HONG KONG, Sept. 10 – The Standard Chartered Bank of Hong Kong will be issuing a unique HK$150 note to celebrate the 150th year of the bank’s operations in the city. The bank is the only one of three bank note issuing banks in the territory thus making the commemorative notes legal tender there and also [...
Bank of China to Provide Swiss Investment Funds in RMB
Posted on September 09, 2009Sept. 9 – The Bank of China is set to launch a range of Swiss-based funds, denominated in renminbi to provide international-based investments to its wealthy clients and also ensure the money does not leave China. The funds are being rolled out by the Bank of China (Suisse) Fund Management, a Geneva-based private bank and the [...
China to Gradually Reduce Equity Limits for Stock Listing
Posted on September 09, 2009Sept. 9 – Limits on corporate equity stake proportion in investment will gradually be reduced to allow more foreign-invested enterprises to list in the country’s stock market, reports China Daily. China’s Minister of Commerce, Chen Deming, spoke with China Daily during the 13th China International Fair for Investment and Trade held in Xiamen...
China Industry: Sept. 10
Posted on September 09, 2009Sept. 10 – This is a regular series of relevant industry news from around China. Solar power Shi Zhengrong, founder and chief executive of Chinese solar giant Suntech Power backtracked on last week’s statement that his company had cut solar panel prices in the United States below production cost, saying he misunderstood a reporter’s question...
China Sector Watch: Pharmaceuticals
Posted on September 08, 2009This ongoing series takes an in-depth look at the industries that are shaping the Chinese economy today. By Joyce Roque SHANGHAI, Sept. 8 – Last year, when Vicky Zhang got sick with pneumonia she went to a public hospital in Shanghai’s Pudong district...
Tax Clarification on Director?s Fees, 13 Month Salaries
Posted on September 08, 2009Sept. 8 – The State Administration of Tax (SAT) issued Circular 121, clarifying four areas of individual income tax policy (IIT) namely director’s fees, 13 month salaries, criteria for recognition as a Chinese national residing overseas, and property splits associated with divorce...
New Bank Department To Handle RMB Global Development
Posted on September 08, 2009Sept. 8 – China?s central bank, the People?s Bank of China (PBOC), will establish a Second Monetary Policy Unit to deal with a wide range of commercial issues concerning the use of the renminbi in international trade, investment, swaps and foreign aid...
Beijing Relaxes Private Flight Plan Applications
Posted on September 06, 2009Sept. 7 – China has relaxed applications for private flight plans from six days to just three hours, a move that will likely lead to a boom in the private jet travel business. The decision means it is now possible for a Chinese registered Airbus A318 elite or Gulfstream 200 to file a flight plan with [...
Northeast Asia Cooperation Forum Promotes Regional Development
Posted on September 04, 2009CHANGCHUN, Sept. 4 – The 5th Northeast Asia Investment and Trade Expo opened on Tuesday in Changchun, the capital of Jilin Province. The six-day event focuses on strengthening regional cooperation and finding opportunities and challenges to coping with the global financial crisis...
Eurocham Paper Critical of China?s Protectionist Measures
Posted on September 03, 2009Sept. 4 – The European Chamber of Commerce in China (Eurocham) has released a position paper critical of China’s progress on World Trade Organization reforms and cites the rising of trade barriers and the squeezing out foreign competitors from domestic markets...
Logistics Investment Plan to Boost Chongqing?s Infrastructure
Posted on September 03, 2009Sept. 3 – The country’s top economic planner,The National Development and Reform Commission, recently gave the green light to Chongqing’s “Three Bases and Four Ports” logistic investment plan according to a report made by the Shanghai Securities News...
China?s Manufacturing Registers Fastest Growth in 16 Months
Posted on September 02, 2009Sept. 2 – Mainland China’s manufacturing grew at its fastest pace in 16 months according to the purchasing managers’ index (PMI) compiled by the China Federation of Logistics and Purchasing. The index jumped to 54 last month from 53...
China Industry: Sept. 2
Posted on September 02, 2009Sept. 2 -This is a regular series of relevant industry news from around China. Solar power Chinese photovoltaic (PV) maker Trina Solar said earnings per average diluted share topped US$0.71 for the second quarter of fiscal 2009, thanks to a drop in polysilicon prices...
New Issue of China Briefing Asks ?Are You (Really) in Control of Your China Operations??
Posted on September 01, 2009Sept. 1 – The September issue of China Briefing magazine is out now and available for download (click on the image ? subscription required, however this is complimentary). With investment down and pressure mounting on foreign companies to streamline costs in China, we take a look in this month’s China Briefing at some common legal and [...
Customs Department Clarifies Outsourced Processing Trade Procedures
Posted on September 01, 2009Sept. 1 – China’s General Administration of Customs has issued a circular clarifying the administration procedures for trade companies outsourcing their processing businesses and relevant H2000 administrative systems. Circular 51 confirms that processing trade companies with limited production capacity and technical capabilities can outsource their processing operations; pending approval of the local customs office...
New Transfer Pricing Regulations on Overseas Royalties Released
Posted on August 31, 2009Sept. 1 – Local tax bureaus around the country are scrutinizing outbound royalty payments to related parties overseas, in response to Circular No.363, ?Notice of SAT on Reinforcing the Monitoring and Investigation of Cross-Border Related-Party Transactions...
Hong Kong Proposes Acceptance of Mainland Auditors
Posted on August 30, 2009Aug. 31 – The Hong Kong Stock Exchange (HKSE) has proposed allowing mainland companies listed in Hong Kong to submit their accounts using mainland China’s accounting standards and auditors. Currently, Hong Kong uses a different set of accounting standards from the mainland...
China Remembered: China Joins the WTO
Posted on August 28, 2009By Chris Devonhire-Ellis Aug. 28 – It seems such a long time ago now, but China?s joining of the WTO only occurred eight years ago, in November 2001. Today it is taken for granted. However, without doubt there was a pre-WTO China, and a post-WTO China, and the two beasts have proven to be very different...
Top Australian Investment Bank Enters China?s Finance Market
Posted on August 28, 2009SHANGHAI, Aug. 28 – Australia’s largest investment bank, Macquarie Group, has entered into a trust company joint venture in China to offer yuan-dominated products, arrange domestic debt and equity financing, according to Xinhua. The joint venture (JV) called the Sino-Australian International Trust Co...
China, India Purchasing Power, Prices and Salaries Report
Posted on August 27, 2009Aug. 27 – 2point6billion.com has just produced a comprehensive breakdown of the costs of business and living between China and India. Using data taken from the recent UBS Global Prices and Earnings Report, the 2point6billion.com examination provides commentary on UBS data from Beijing, Shanghai, Delhi and Mumbai and uses New York as a benchmark...
Hong Kong to Host Louis Vuitton America?s Cup World Series
Posted on August 27, 2009Aug. 27 – The Royal Hong Kong Yacht Club has asked the Hong Kong government for a grant to help it host the Louis Vuitton World Series, an America?s cup standard yachting competition that is the sport’s equivalent to the Formula One. If approved, the event will be held on November 2010 with the regatta to [...
Around Asia: Aug. 26
Posted on August 26, 2009Aug. 26 – A weekly look at China and related influential regional news. China Plays Hardball as ADB/India Loan Row Continues India has rejected a loan from the Asian Development Bank of US$60 million for infrastructure project developments in Arunachal Pradesh state as China insisted on clauses within the loan agreement preventing ADB members from recognizing [...
SAFE Improves Foreign Exchange Administration, Nullifies Regulatory Documents
Posted on August 26, 2009Aug. 27 – The State Administration of Foreign Exchange released a circular on Tuesday announcing that 25 regulatory documents have been repealed or nullified to improve the laws on foreign exchange administration. Of the 25 regulatory documents, 17 include the Circular on Adjusting the Examination and Approval Procedures for Financial Institutions Carrying Out Foreign Exchange Businesses [...
Shanghai Closes in on New York-Level Prices
Posted on August 25, 2009SHANGHAI, Aug. 25 - Shanghai and Beijing are getting close to prices one would expect to pay in New York for certain products, a recent UBS survey has found. The ?Prices and Earnings 2009” report was issued to the bank?s high net worth value individuals and compares a variety of prices for commodities ranging from food [...
CBRC Tightens Lending Policy
Posted on August 24, 2009Aug. 24 - The China Banking Regulatory Commission is issuing guidelines effective from next month that slow down or even prevent banks from making new loans, in efforts to curb the excessive growth in consumer credit. The move comes against fears of creating a platform of bad debt...
China Industry: Aug. 25
Posted on August 24, 2009Aug. 25 - This is a regular series of relevant industry news from around China. Solar power Taiwanese uninterruptible power supplies maker Powercom plans to spend TWD250 million to build a solar power plant in Central Taiwan Science Park. The company’s chairman, Simon Chang, said that the power station will have an output of 1 MW and [...
U.S. Commercial Service Releases China Business Handbook
Posted on August 24, 2009Aug. 24 - The U.S. Commercial Service recently released their “China Business Handbook,” a resource guide for doing business in the People’s Republic of China. (Click on the cover to download, subscription required) Produced in association with Dezan Shira & Associates, the guidebook provides a general overview to doing business in China with chapters devoted to [...
China Remembered: Turandot at the Forbidden City
Posted on August 21, 2009By Chris Devonshire-Ellis Aug. 21 - The hosting of Giacomo Puccini’s opera “Turandot” at the Forbidden City in Beijing in 1998 was a landmark occasion for both the city, and China. Although we weren’t to know it at the time, it laid the groundwork for the confidence and capabilities of China to host the Summer Olympics [...
Beijing Releases List of Major Corporate Polluters, Energy Consumers
Posted on August 21, 2009Aug. 21 ?The Beijing Development and Reform Commission has released a list of major water-polluting and energy consuming companies that includes foreign and local brewers, beverage producers and dairy companies in efforts to achieve its aim to fulfill emission and energy-reduction targets mapped out in its 11th five-year plan...
China?s Fire Safety Law Affecting Foreign-Owned Factories and Warehouses
Posted on August 20, 2009Aug. 20 ? The release of amendments to China?s fire safety laws following an increase in the numbers of fatal fires in commercial premises on the mainland last year is affecting businesses, which are now having to ensure adequate measures in fire prevention, evacuation and extinguishing are implemented...
Air China Deal a Learning Step for Mainland Aviation
Posted on August 20, 2009By Chris Devonshire-Ellis Aug. 20 - The deal of the week has been Air China buying an additional 12.5 percent stake in Cathay Pacific held by CITIC Pacific and bringing its total stake in the Hong Kong-based airline to 29.9 percent. Cathay Pacific is the city’s leading airline and also owns a majority stake in Dragonair...
China Tax Bureau Clamping Down On Use of Fake Receipts
Posted on August 19, 2009Aug. 19 - China’s State Administration of Tax appears to be concentrating efforts on curbing a rise in the use of faked receipts for businesses filing their monthly business taxes and reports to the local tax bureau. The use of false receipts, or fapiaos, to justify expenditure (and thus reduce income tax liability) has been evident [...
PetroChina Signs US$41 Billion Gas Deal with ExxonMobil
Posted on August 19, 2009Aug. 19 - China’s PetroChina has made its largest trade yet with a US$41 billion liquefied natural gas deal with American company ExxonMobil. Under the deal, PetroChina will buy 2.25 million tons per year of gas from the Gorgon LNG project located in Western Australia for 20 years thus becoming the largest buyer in the project...
West, Central Regions Recession Proof as Auto Sales Surge
Posted on August 19, 2009Aug. 20 - China’s Western and Central inland regions have reported a surge in auto sales with growth of 33 percent for the first half year over 2008 figures, according to a report from the global market research firm, Ipsos. The industry average for China this year has been 24 percent...
Beijing Inks ASEAN Deal, 7,000 Products at Zero Tariffs
Posted on August 18, 2009Aug. 18 - China and ASEAN have concluded talks on the establishing of a free trade zone next year, boosting economic integration with Southeast Asia and clearing the way for increased trade throughout the region. Beijing?s agreement with ASEAN follows a similar agreement reached between India and ASEAN last week...
China Revises Advertising and Promotional Expenses
Posted on August 18, 2009Aug. 18 - China’s Ministry of Finance and the State Administration of Taxation have released a circular on the qualifying deductions for advertising and promotional expenses (A&P Expenses) for corporate income tax computations beginning January 1, 2008 to December 31, 2010...
Tax Bureau Clarifies Investment Terms for Western Region
Posted on August 18, 2009Aug. 19 - The State Administration of Tax has issued a circular to clarify the definitions set forth in the previous Caishui 202 regarding tax incentives for developments in China?s Western Regions that include Chongqing, Sichuan, Guizhou, Yunnan, Tibet, Shanxi, Gansu, Qinghai, Ningxia, Xinjiang, Inner Mongolia and Guangxi...
Shanghai Expo 2010: The Singapore Pavilion
Posted on August 16, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
China Remembered: The Silver Russian Samovar at Beijing Capital Airport
Posted on August 14, 2009By Chris Devonshire-Ellis Aug. 14 - It?s a sunny afternoon along a peaceful country road in north-east Beijing. Poplar trees and silver birch line the road, red-billed magpies, resplendent in blue feathers dive amongst the trees, and the occasional horse and cart trot by along the two lane tarmac...
Pudong Issues Rules on Foreign Invested Equity Investment Enterprises
Posted on August 14, 2009SHANGHAI, Aug. 14 - Pudong New Area authorities have just issued guidelines for foreign private equity companies opening in the area. According to the circular, foreign-invested equity investment management enterprises (FIEIMEs) can establish offices in the following forms: contractual joint venture; equity joint venture; or wholly foreign-owned enterprise...
HSBC?s Shanghai Listing to Kick Start Financial Reforms
Posted on August 13, 2009By Chris Devonshire-Ellis Aug. 13 - HSBC?s proposed listing next year in Shanghai is likely to have an extreme knock on effect in terms of accounting standards on the mainland, and is also likely to herald a move to a fully convertible RMB. China has long been wary of foreign banks operating in China, not just [...
WTO Rules Against Chinese Import Limits
Posted on August 13, 2009Aug. 13 ? The World Trade Organization (WTO) has ruled in favor of the United States on its complaint that China?s distribution restrictions on imported reading materials, audiovisual home entertainment products, DVDs, sound recordings and movies violated international free trade rules...
Visas May be Difficult to Obtain After September 15
Posted on August 13, 2009SHANGHAI, Aug. 14 - Businessmen planning to visit China in the early?mid autumn period are advised that visas may be difficult to obtain for dates after September 15 due to the government’s 60th founding anniversary on October 1. The restrictions are likely to be in force for about four to six weeks...
Bank of East Asia Declares Interest in Shanghai Listing
Posted on August 13, 2009SHANGHAI, Aug. 14 - Hong Kong?s third largest bank, the Bank of East Asia has declared interest in listing in Shanghai following news earlier this week that HSBC is also set to list in the city next year. BEA?s deputy chief executive, Brian Li, made the comments yesterday in Taiwan following a ceremony to rename the [...
Tax Breaks for Tobacco Promotion Over
Posted on August 12, 2009Aug. 12 ? China?s Ministry of Finance and the State Administration of Taxation said in a circular that promotional spending by tobacco firms will no longer be eligible for tax breaks, effective until 2011. By that time, tobacco promotion in the country will already be banned...
HSBC Set to List in Shanghai
Posted on August 12, 2009By Chris Devonshire-Ellis Aug. 12 - HSBC is set to list their operations in the Shanghai stock market in a move that would see them return to their roots. The bank was founded by Thomas Sutherland and was called the Hongkong and Shanghai Banking Company Limited...
New Stamp Duty Policy in Guangdong
Posted on August 12, 2009GUANGDONG, Aug. 13 - The Guangzhou local tax bureau issued a notification last July 16 authorizing it to check and collect stamp tax beginning August 1. The period of the rate paying is one month, and the tax payer should be clarify and pay the tax before the 15th next month.
Singaporean Business in China, a Continuing Partnership
Posted on August 11, 2009By Emma Xu SHANGHAI, Aug. 11 - Singaporeans have a long history of doing business in China. Formal diplomatic relations between China and Singapore began in 1990 and helped further enhance this relationship as the Chinese market became more open to Singaporean companies...
Training Costs May Be Paid by Employees
Posted on August 10, 2009Aug. 10 ? China?s Legislative Affairs Office of the State Council has released a draft regulation for public comment regarding training fees that may need to be paid for by employees. According to the China Daily, around 1.5 to 2.5 percent of employees’ salary will be set aside for the training fees...
Shanghai Expo 2010: The French Pavilion
Posted on August 09, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
China Remembered: The Jianguo Hotel Gets a Fax Machine
Posted on August 07, 2009By Chris Devonshire-Ellis Aug. 7 - China at the end of the 1980s was a very different place than it is now. The platform of contemporary China in terms of infrastructure was already being put in place and China?s rise was perfectly timed in terms of its taking place during the communications revolution ? email and [...
Shanghai Petitions Currency Rule Changes to Attract More Foreign Private Equity Firms
Posted on August 05, 2009SHANGHAI, Aug. 6 ? Local government officials are petitioning that restrictions on private-equity firms be changed to encourage attract more foreign private-equity firms to open offices in the Pudong financial district. Director-general of Shanghai’s financial-services office, Fang Xinghai, told the Wall Street Journal that the city wants foreign private-equity firms that raise majority of their capital [...
CBRC to Restrict Chinese Interbank Bond Holdings
Posted on August 04, 2009Aug. 4 - The China Banking Regulatory Commission is set to tighten banks capital rules by excluding subordinated bonds sold to other banks from their capital base. The regulator has sounded out banks concerning the plan, according to the South China Morning Post, who quoted a spokesman as saying ?the CBRC wants to restrict bank?s mutual [...
China Announces US$7.5 Billion Rail Investment in Venezuela
Posted on August 04, 2009Aug. 4 - China?s state-owned Railway Engineering has signed a US$7.5 billion agreement with the Venezuelan Railway Authority to design and build a 471 kilometer rail network throughout the country. This is China’s single biggest rail investment project and is also Venezuela?s largest non-oil contract...
China Industry: Aug. 5
Posted on August 04, 2009Aug. 5 - This is a regular series of relevant industry news from around China. Solar power Chinese photovoltaic (PV) cells and modules maker Suntech Power Holdings said it has inked a strategic agreement with China Energy Conservation Investment Corporation (CECIC) to develop solar projects over the next five years...
Are China?s Banks In Trouble?
Posted on August 04, 2009Aug. 5 - Recent speculation suggests China may be mired in non-performing debt at a larger scale than previously thought after the recognition that at least 20 percent of the stimulus plan has leaked out of the banking system and into speculative activities...
Remodeling China?s Economy, the Bear to Watch
Posted on August 03, 2009By Chris Devonshire-Ellis Aug. 3 - Andrew Peaple in today?s Wall Street Journal article wrote an interesting piece on China?s stimulus habit which details new concerns over the remodeling of its economy. As I mentioned in my recent essay, China is having to remake its economic model and move away from such an export driven base...
Shanghai Expo 2010: The German Pavilion
Posted on August 03, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
Ten Years of Establishing and Operating Foreign Businesses in China
Posted on August 03, 2009SHANGHAI, Aug. 4 - As part of China Briefing?s ten years of publishing, here is a quick ?do-it-yourself? breakdown of the most popular issues of the magazine that deals with establishing and operating foreign businesses in China. These are taken from the China Briefing archives...
Plague Outbreak Kills Two in Qinghai
Posted on August 02, 2009Aug. 3 - An outbreak of pneumonic plague has hit the town of Ziketan in China’s western province of Qinghai, killing two and leading to the full quarantine of its estimated 10,000 residents. According to the Centers for Disease Control and Prevention (CDC) website, pneumonic plague occurs when the bacteria, Y...
United States to Allow More Hi-Tech Exports to China
Posted on July 31, 2009Jul. 31 - The United States will soon allow more hi-tech exports to China as part of the issues agreed upon during the recently concluded China-US Strategic and Economic Dialogue this week. “The U.S. pledged to facilitate exports of high-technology products from the U...
Tax Bureau to Look at Cross Border Charges
Posted on July 30, 2009Jul. 30 - China’s State Administration of Taxation (SAT) has instructed local authorities to carry out tax audits on companies with cross-border charges. Local authorities in major cities will soon implement this following the Jin Bin Han [2009] No...
Keeping Your Chinese Partners Honest
Posted on July 30, 2009By Chris Devonshire-Ellis Jul. 31 - A Financial Times article published earlier this week told the story of how a German businessman was cheated out of his business in China. The story, written by Jamil Anderlini, deals with the tale of businessman Heinz Zuercher, who took up a position as CEO with the Frankfurt listed media [...
Swedish Government to Close Guangzhou Consulate by November
Posted on July 29, 2009Jul. 29 - The Swedish government has announced the closure of their consulate in Guangzhou by November 30 along with one embassy and three other consulates-general due to budgetary constraints. On July 23, the government said on its website that they would close Sweden’s Embassy in Colombo and the Swedish Consulates-General in Guangzhou, Kaliningrad, Los Angeles [...
China Industry: Jul. 29
Posted on July 29, 2009Jul. 29 - This is a regular series of relevant industry news from around China. Solar power Canadian Solar said it had received ISO/IEC17025 accreditation for its photovoltaic (PV) reliability testing center in Changshu, China. The center gained the accreditation from China National Accreditation Service for Conformity Assessment, which is solely responsible for the accreditation of certification, [...
Uyghers Should Develop Tolerance in Chinese Lands
Posted on July 28, 2009By Chris Devonshire-Ellis Jul. 29 - China is a multi-faceted nation with some 55 officially recognized, non-Han minorities and banknotes that depict six separate languages so the potential for conflict is always simmering just beneath the surface. Nowhere is this more starkly demonstrated than in Tibet and Xinjiang...
AmCham: Market Shifting to Higher-End Manufacturing
Posted on July 28, 2009Jul. 29 - The American Chamber of Commerce in Shanghai has released the first of its Viewpoint series focusing on the manufacturing industry in China and how it is evolving to include higher-end manufacturing. The issue reports how China will no longer remain a source of cheap labor and resources in the future...
Threat of Mass Layoff Leads to Death of Factory Manager
Posted on July 27, 2009By Chris Devonshire-Ellis Jul. 27 - The beating to death of a factory manager in North-East China by workers has raised fears of a resurgence of the type of violence once encouraged by the Communist Party against capitalists during the Cultural Revolution...
Shanghai Eases FDI Threshold
Posted on July 27, 2009SHANGHAI, Jul. 27 - In an effort to further ease foreign investment into the city, Shanghai’s district-level officials will now be allowed to sign off on projects worth as much as US$100 million beginning August 1. The move is part of Shanghai’s overall plans to become an international finance capital...
P&G to Build Largest Asia Pacific Manufacturing Hub in Tianjin
Posted on July 27, 2009TIANJIN, Jul. 28 - Procter & Gamble is slated to complete its biggest manufacturing base in the Asia Pacific region in China’s northern city of Tianjin at a cost of US$248 million. The plant will be located in the city’s southwest district of Xiqing...
China Loses Trade Dispute with the United States
Posted on July 24, 2009Jul. 24 - The World Trade Organization has ruled in favor of the United States over a dispute that accused China of breaking international trade rules by restricting the distribution of American CDs, DVDs, books and computer software to Chinese state-owned companies, reports The Associated Press...
Around Asia: Jul. 23
Posted on July 23, 2009Jul. 23 - A weekly look at China and related influential regional news. ASEAN Ratifies New Human Rights Commission The Association of Southeast Asian Nations (ASEAN) has agreed to the formation of a new human rights body that was ratified this week and will be implemented in October...
Half Of China?s Judiciary ?Have No Legal Training?
Posted on July 23, 2009Jul. 23 - According to a survey, 14 out of 30 provincial chief justices have had no legal training, reports the South China Morning Post. Of the judges participating in the survey, 14 possessed no prior legal training or experience working in China?s court system prior to their appointments...
A Look at China?s Half Year Report
Posted on July 23, 2009By Jie Gong SHANGHAI, Jul. 23 - China’s National Bureau of Statistics has just released its latest economic figures this month and it paints a picture of how the country has fared thus far with half the year already over. China Briefing has compiled the official economic figures announced by various government agencies in a chart that [...
Shenzhen Government Lowers Average Salary Benchmark
Posted on July 23, 2009SHENZHEN, Jul. 23 - The Labor and Social Security Bureau has lowered the average pay scale in the city for the first time since 1999 in a salary reference document for employers released last Monday. According to Shenzhen Daily, the average salary in the city decreased by 3...
Shanghai Expo 2010: The U.S. Pavilion
Posted on July 22, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
Beijing Orders Banks To Increase Bad Debt Reserves
Posted on July 21, 2009Jul. 22 - The chairman of China’s Banking Regulatory Commission (CBRC), Liu Mingkang, has told all mainland-based banks, and some overseas banks such as HSBC and Citigroup to increase their bad-debt loan reserves by 150 percent by the end of this year...
U.S. Buyers Influencing China?s Manufacturing Moves To Latin America
Posted on July 20, 2009By Chris Devonshire-Ellis Jul. 21 - As the global economy further integrates and the price of oil looks set to gain in the long-term, U.S. buyers, are realizing that they are generating the upper hand over Chinese manufacturers in the supply of products to the United States...
China?s Income Tax Generation Collapses
Posted on July 19, 2009Jul. 20 - China?s income tax base has shrunk even further as taxpayers are badly hit by the global downturn. With a small income tax paying base of about 30 million people from a population of 1.3 billion, the country’s inland revenue has struggled to generate sufficient income and meet monthly targets...
China Briefing Books Now Downloadable in PDF
Posted on July 19, 2009Jul. 20 - The complete series of China Briefing?s popular legal, tax and regional guides are now available for purchase via PDF downloads here. Published since 2003 and regularly updated, available titles include guides to the legal procedures and investment implications of establishing Representative Offices, Wholly Foreign Owned Enterprises, Joint Ventures, Mergers & Acquisitions, Intellectual Property [...
China?s FDI Plateaus as Investment Demographics Shift
Posted on July 17, 2009By Chris Devonshire-Ellis SHANGHAI, Jul. 17 - China?s foreign direct investment and the nature of its GDP growth are showing signals of permanent change as the world gradually lifts itself out of the global recession. Dezan Shira & Associates has just released its half year figures and they make for interesting reading in terms of the [...
Dalian Emerging as Outsourcing Hub
Posted on July 17, 2009Jul. 17 - China’s northern city of Dalian in Liaoning Province is emerging as one of the key outsourcing hubs in the country. Due to the province’s proximity to Japan, it has primarily attracted investment from Japanese investors and now handles an estimated 80 percent of Japan’s outsourcing needs...
Local Tax Bureau Cracking Down on Foreign Companies
Posted on July 16, 2009SHANGHAI, Jul. 16 - Dezan Shira & Associates clients across the country are reporting a recent spate of unannounced visits to their premises by local tax bureau officials demanding to inspect books and inquiring about salary levels. In most instances, this has been followed by requests for additional tax payments, questions about expatriate staff salary levels [...
China Briefing Celebrates 10 Year Anniversary
Posted on July 16, 2009SHANGHAI, Jul. 16 ? China Briefing celebrated a decade of publishing at Kathleen?s 5 last night in the company of long-time subscribers, diplomats, clients and friends. More than 250 guests gathered until late to wish the magazine a happy tenth birthday while enjoying wine, canapés and entertainment provided by OmBraMaiFu...
Wal-Mart Partners with Lakala to Offer Financial Services
Posted on July 14, 2009Jul. 14 ?Wal-Mart outlets in 80 Chinese cities are now offering financial services to customers in partnership with the Chinese offline payment provider Lakala. According to ChinaRetailNews, the company is adding one-stop daily payment services, including credit card repayment, public utilities, and mobile phone recharging...
SAFE Regulates Domestic Forex Accounts of Foreign Institutions
Posted on July 14, 2009Jul. 15 - The State Administration of Foreign Exchange released a new circular concerning the opening and usage of domestic forex accounts by foreign institutions on Monday. The descriptively named “Circular on the Issues Regarding the Management of Domestic Forex Accounts of Foreign Institutions” permits qualified domestic Chinese and foreign banks to open forex accounts and [...
China to Radically Readjust Economic Policy
Posted on July 14, 2009BEIJING, July 15 - The Chinese government is preparing to apply major readjustments to its financial policies to re-balance the domestic economy. Concerns over the country?s economy and the development of an over-reliance on exports have prompted a meeting of the politburo in the next two weeks as policymakers voice their concerns that despite encouraging [...
China Industry: Jul. 13
Posted on July 13, 2009Jul. 13 - This is a regular series of relevant industry news from around China. Solar power Enfinity NV, LDK Solar and state-owned China Guangdong Nuclear Power Holdings will install the first 10 MW of a 500 MW solar photovoltaic (PV) project in Dunhuang, after winning over 13 other bids...
Apple iPhones to be Sold Without Wi-Fi
Posted on July 13, 2009Jul. 13 ? After drawn out negotiations with China’s Ministry of Industry and Information Technology, Apple has conceded and filed an application to officially sell the iPhone without Wi-Fi connectivity in the mainland, according to sources. The Network Access License will allow the company?s iPhone to enter the Chinese market and run only on Chinese cellular [...
British TV Channel Bought by Wenzhou Firm
Posted on July 13, 2009Jul. 14 - A Chinese firm based in Wenzhou City has bought the British digital satellite tv channel, Propeller TV, for an undisclosed amount, according to sources. The Xiking Group led by Wenzhou businessman, Ye Maoxi, said the channel will start airing programs that promote Chinese culture...
Shanghai Expo 2010: The Spanish Pavilion
Posted on July 10, 2009The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as ?Expo Shanghai 2010,? it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to further develop business partnerships [...
Shenzhen Releases New Recognition Measures for High-Tech Enterprises
Posted on July 10, 2009SHENZHEN, Jul. 10 - The Shenzhen government released the Administrative Measures of Shenzhen for the Recognition of High and New Technology Enterprises earlier this month, laying out two sets of rules regarding the recognition of high-tech enterprises in Shenzhen...
Four Rio Tinto Employees Accused of Espionage
Posted on July 09, 2009SHANGHAI, Jul. 9 - Four employees of the iron ore company, Rio Tinto, have been detained since July 5 on charges of espionage. The employees from Rio Tinto’s Shanghai sales office were accused of stealing government secrets. Three are part of the iron ore local sales team while one is an Australian national, Stern Hu, the [...
Annual Filing of Foreign Bank Account Reports for U.S. Taxpayers
Posted on July 08, 2009By Hank Bourg Jul. 8 - U.S. taxpayers holding financial interest or other authority over a financial account in a foreign country amounting to more than US$10,000 are required to file the annual Foreign Bank Account Report (FBAR) by June 30th of the following year...
Fiat Signs JV Deal with Guangzhou Auto
Posted on July 07, 2009Jul. 7 ? The leading Italian carmaker, Fiat, has signed a joint venture agreement with the Guangzhou Automobile Group to build a factory in Changsha, Hunan Province. The 700,000 square meter factory is expected to produce 250,000 cars and 300,000 engines annually when it reaches maximum capacity...
China?s Minority Ethnic, Racism and Sensibility Issues
Posted on July 07, 2009By Chris Devonshire-Ellis Jul. 8 - The recent riots in Xinjiang ? an area I have travelled extensively in over the years ? have brought to a head the increasing collision between China’s growing prosperity and the sections of the society that are being left behind...
First Cross-Border Trade Settlement Deal Made
Posted on July 06, 2009Jul. 6 ? The first cross-border yuan trade settlement deal came through today from the Bank of China (BOC), Hong Kong to Bank of China, Shanghai reports Xinhua. The deal is part of a pilot program announced by Beijing last April to ease cross-border trade deals for Chinese importers and exporters in southern Guangzhou, Shenzhen, Shanghai, [...
Largest Shipyard in the World Opens in Dalian
Posted on July 02, 2009Jul. 3 - The largest shipyard in the world measuring 460 meters long with a width of 135 meters has opened in Dalian, a coastal city located northeast of China. The shipyard located in Changxing Island has bypassed the Philippine shipyard built by Hanjin Heavy Industries by 1 meter long and 1 meter wide...
New Issue of China Briefing Examines Compliance and Trade Issues in China
Posted on July 01, 2009Jul. 1 - In this month’s China Briefing, we take a look at important compliance issues for U.S. business operating in China; Specifically the United States’ Foreign Corrupt Practices Act and what American companies operating China need to know about the act...
Around Asia: Jul. 1
Posted on July 01, 2009Jul. 1 - A weekly look at important regional news. China and India to Set Up Direct Hotline India and China are in talks to set up a direct hotline as early as next month. The hotline would connect Indian Prime Minister Manmohan Singh to Chinese Prime Minister Wen Jiabao, allowing the two to conduct direct diplomacy...
Shanghai?s Office Rentals Plunge
Posted on July 01, 2009SHANGHAI, Jul. 1 ? Rental prices for the city?s high-grade office spaces have plunged because of rising vacancies aggravated by the global financial crisis and abundant supply of office space. Real-estate services provider, Colliers International, reports that the prices for the city’s Grade A office buildings dropped by 9 percent to RMB7...
China to Build Economic Zone in Liaoning Province
Posted on July 01, 2009Jul. 2 ? China will soon build a 700 square kilometer coastal economic belt in the northeastern Liaoning Province specializing on shipbuilding, petroleum refining, advanced equipment manufacturing, raw materials, high-tech industries and agriculture processing, according to reports...
Pepsi Opens its First Overseas ?Green? Plant in Chongqing
Posted on June 29, 2009Jun. 29 ? Major beverage and food company, PepsiCo, has opened a “green” plant located in Chongqing city, the first in five new manufacturing plants slated for the next two years. The new plant is the company?s first ?green? beverage plant abroad and the first of its kind in the country...
Hong Kong, Mainland Businesses to Use Yuan for Trade Settlement
Posted on June 29, 2009Jun. 30 - Hong Kong businesses will soon be able to settle international trade in yuan with companies in Guangzhou, Shenzhen, Shanghai, Dongguan and Zhuhai starting next month. The agreement was formalized last Monday by Hong Kong Monetary Authority Chief Executive Joseph Yam and the People?s Bank of China Governor Zhou Xiaochuan...
Shanghai?s New Tunnel Links Port with Financial Center
Posted on June 25, 2009SHANGHAI, Jun. 25 ? The city?s newly-completed tunnel spanning of 2,254 meters will now link the Shanghai Port located on the on the west bank of the Huangpu River to its finance and trade center, Lujiazui. The tunnel took 10 months to build at a cost of RMB1...
Shanghai to Offer Perks for Expat Finance Professionals
Posted on June 25, 2009SHANGHAI, Jun. 26 - The local government is set to launch a program that will give foreign finance specialists incentives to work in Shanghai including lowered taxes, reports Shanghai Daily. The financial talent award is just one of the government?s policies aimed at turning Shanghai into an international financial and shipping hub by 2020 “We can’t change [...
Around Asia: Jun. 24
Posted on June 24, 2009Jun. 24 - A weekly look at important regional news. India to Develop Investment Regions for Petroleum and Chemical Industries The government of India is implementing more initiatives to attract more foreign direct investment in its petroleum, chemicals and petrochemical sectors by establishing specific investment regions for this...
WTO Complaints Filed Against Chinese Export Restrictions
Posted on June 24, 2009Jun. 24 ? Two complaints were filed with the World Trade Organization (WTO) regarding China?s export restrictions on raw materials, alleging that it gave an unfair advantage to local companies and violated international trade rules. The European Union and the United States submitted separate complaints on the same issue...
China Industry: Jun. 24
Posted on June 23, 2009Jun. 24 - This is a regular series of relevant industry news from around China. Solar power Nanjing-based solar cells manufacturer China Sunergy said it had entered into a 53 MW sales framework agreement with solar modules manufacturer Renergies Italia...
Higher Tobacco Taxes Imposed
Posted on June 22, 2009Jun. 22 ? China?s Ministry of Finance and the State Administration of Taxation (SAT) has announced higher taxes on tobacco products to increase state revenue. Cigarette cartons that cost RMB70 or more will be taxed from 45 percent to 56 percent while cartons costing less than below RMB70 will be taxed from 30 percent to [...
Caution over China?s GDP Figures, 2010 is the Real Test
Posted on June 22, 2009Commentary: China ?Not Yet? Engine for World Growth By Chris Devonshire-Ellis Jun. 22 - Seeing the World Bank raise their expectations for China?s GDP growth for 2009 as a whole last week was encouraging news. Raising the anticipated growth level from 6...
New Censorship Rule Worries the United States
Posted on June 22, 2009Jun. 22 - In a rare move, the United States has submitted a complaint regarding China’s new plan to tighten internet censorship by requiring that all PCs in the country be preloaded with web-blocking software. Representatives from the U.S. embassy in Beijing recently met with China?s officials to discuss the issue...
More Export Tax Cuts Announced for Next Month
Posted on June 22, 2009Jun. 23 ? China will implement more tax cuts next month to help the struggling export market. The substantial cuts will cover around 100 categories of goods that include fertilizers and agricultural products. One example of a deep tax cut is the discount on phosphate fertilizer now set at 10 percent from the previous 75 percent...
Pudong to Allow Foreign Investors to Set-up Equity Investment Management Company
Posted on June 19, 2009SHANGHAI, June. 19 - Shanghai?s Pudong local government is now allowing foreign investors to set-up an equity investments management company until June 30, 2010. The new regulation is limited to the Pudong area and can be applied via a cooperative joint venture, equity joint venture or a wholly foreign-owned enterprise given the following conditions: (a) At least one [...
World Bank Raises China?s Growth Forecast to 7.2 Percent
Posted on June 18, 2009Jun. 18 ? In its China Quarterly Update, the World Bank changed its economic growth forecast for China from 6.5 percent to 7.2 percent on account of its stimulus package fueling an investment boom. While China?s economy has continued to feel the brunt of the global crisis, very expansionary fiscal and monetary policies have kept the [...
New ?Buy Chinese? Policy Risks Tension, Protectionism
Posted on June 17, 2009Jun. 17 ? Beijing has introduced a new ?Buy Chinese? policy that could agitate foreign trade relations and encourage protectionism. The new policy outlines that only Chinese products and services may be used for government procurement except when certain products or services are not available within the country or could not be bought on reasonable [...
First Bioenergy Research Center Opens in Nanning
Posted on June 16, 2009Jun. 16 ? The country?s first bioenergy research center was launched last Sunday in the Guangxi Zhuang autonomous region?s capital city of Nanning as part of Beijing?s new energy development plans. The research center aims to find ways to effectively use cassava, sugar cane and sweet sorghum for new energy development; commodities that are abundant in [...
U.S. Company Claims China?s Web Blocking Software Contains Pirated Code
Posted on June 15, 2009Jun. 15 ? U.S. company, Solid Oak Software of Santa Barbara, is claiming that parts of China?s state sanctioned web blocking software called “Green Dam-Youth Escort” in English have been stolen from the company?s own filtering software. Early this month, it was reported that Beijing would require that all personal computers sold in the country be [...
Exports Drop Further, Stimulus Spending Fuels Economy
Posted on June 12, 2009Jun. 13 - China’s exports for May plunged lower by 26.4 percent compared to last year; decreasing trade surplus to US$13.39 billion. The May figures maintain the trend of slowing activity, with April exports also declining by 22.6 percent. The figures show that now more than ever, China’s economy is fueled by growth funded by its [...
China Industry: Jun. 11
Posted on June 11, 2009Jun. 11 - This is a regular series of relevant industry news from around China. Solar power Shi Lishan, vice director of the National Energy Administration’s Renewable Energy Department, said that the country will implement a tariff of RMB1.09 per kWh for solar power in a bid to make this type of renewable energy more competitive...
Beijing Eases Foreign Investment Rules for Chinese Companies
Posted on June 11, 2009Jun. 11 - Beginning August 1, Chinese companies can now use their foreign exchange funds or buy from the state reserve to fund overseas ventures; easing rules for overseas investments. According to the State Administration of Foreign Exchange (SAFE), previously only large multinational companies were allowed to use their forex funds to lend to overseas ventures...
OZ Minerals Sells Assets to China Minmetals for US$1.39 Billion
Posted on June 11, 2009Jun. 12 ? Melbourne-based OZ Minerals has approved the sale of its assets to China Minmetals Group for US$1.39 billion in an effort to cut debt and secure future operations. OZ Minerals will use the money from the sale to pay its AU$1.1 billion debt and fund expansion of the Prominent Hill mine located in South [...
Yahoo to Open Global R&D Center in Beijing
Posted on June 10, 2009BEIJING, Jun. 10 - American internet giant Yahoo has announced that it will open a global research and development center (R&D) in Beijing focusing on research on search, advertising, cloud computing, and other personal internet tools and technologies...
Shenzhen Releases New Procedures for Working Permit Application
Posted on June 09, 2009SHENZHEN, Jun. 9 - Last April 17, Shenzhen Social Security Bureau came out with simplified procedures for working permit applications for foreigners. The changes from the previous 2005 regulations are as follows: a.) the position of the foreigner shall fulfill the special needs of the company, and that there is currently no such candidate in Shenzhen, namely, [...
Around Asia: June 9
Posted on June 09, 2009Jun. 9 - A weekly look at important regional news. India Protests Fake Chinese Drugs Labeled ?Made in India? New Delhi has lodged a protest to the Chinese mission in Nigeria and China?s foreign trade ministry because of a large seizure of fake anti-malarial generic pharmaceuticals labeled `Made in India? were actually found to have been produced [...
More Export Tax Rebates Announced
Posted on June 09, 2009Jun. 9 ? China?s Ministry of Finance has announced higher tax incentives covering more than 600 export items beginning this month. Sewing machines and air conditioners are qualified for the full tax rebate of 17 percent, and items like juice, furniture and toys will be raised to 15 percent...
Gov?t Wants Censor Software on All PCs Sold in China
Posted on June 08, 2009Jul. 8 - Beijing is planning to require that all personal computers sold in the country starting July 1 include preloaded software that blocks access to websites deemed inappropriate by censors. The software whose name translates to “Green Dam-Youth Escort” in English would connect PCs with a database of banned sites then block access to those [...
China Eastern, Shanghai Air to Merge
Posted on June 08, 2009Jun. 8 - State-owned China Eastern Airlines and Shanghai Airlines are in talks to consolidate assets in a tentative merger deal. Although both carriers are now operating at a loss, the merger will give them control of more than half the market share in Shanghai...
China?s Africa Strategy Blossoms as Relationship Develops
Posted on June 08, 2009AP PHOTO By Chris Devonshire-Ellis NAIROBI, Jun. 8 -China has stepped up its foreign policy of friendship and trade with Africa this year as it seeks to further strengthen its ties throughout the continent. With President Hu Jintao having already visited Mali, Senegal, Tanzania and Mauritius, China announced a new Beijing summit of African nations aimed at [...
Rio Tinto Rejects Chinalco Bid
Posted on June 05, 2009Jun. 5 ? The world?s third- largest mining company, Rio Tinto Group, has rejected Chinalco?s US$19.5 billion bid; opting to raise US$15.2 billion through a share offering. Rio Tinto and its former rival BHP Billiton are forming a 50/50 joint venture that will consolidate all their iron ore assets in Western Australia and save them more [...
New Food Safety Law Effective this Month
Posted on June 04, 2009Jun. 4 ? China?s new Food Safety Law China went into effect beginning this month. The law integrates stringent food safety standards to make supervision easier and will require new food licenses for businesses. Food suppliers who already obtained a food sanitation license prior to June 1 can still use the license until expiry date...
Chinese Company Buys GM?s Hummer Brand
Posted on June 03, 2009Jun. 3 - General Motors has announced tentative plans to sell its Hummer brand to Chinese industrial machinery firm, Sichuan Tengzhong, although details of the sale are still pending. The deal will give Tengzhong brand rights and management of existing dealer agreements in addition to saving 3,000 jobs in the United States...
Chongqing to Build Inland Free Trade Area
Posted on June 03, 2009Jun. 4 - Chongqing Municipality located in southwest China has begun building a free trade area, the first of its kind to be located deep inland. The Cuntan Bonded Area is strategically found between the Cuntan Harbor and the Jiangbei International Airport...
Around Asia: June 2
Posted on June 02, 2009Jun. 2 - A weekly look at important regional news. First Deepwater Container Terminal Opens in Vietnam Vietnam?s first deep-water container terminal was inaugurated last Saturday in the southern province of Ba Ria-Vung Tau. (Vietnam Briefing) India?s Manufacturing Expands for Second Month in a Row A recent survey reported that manufacturing activity in India grew for the second straight [...
China Industry: June 2
Posted on June 02, 2009Jun. 2 - This is a regular series of relevant industry news from around China. Air transport Hainan Airlines booked a loss of RMB1.4 billion for 2008. The company blamed the loss on the high oil prices and decreased demand. Separately, the company also received government aid worth RMB3 billion from the local Hainan Provincial Government [...
New Issue of China Briefing Examines Repatriating Profits Out of China
Posted on June 01, 2009June 1 - The June issue of China Briefing magazine is online and available for download (complimentary subscription available). At the end of the day, it?s all about making money, and that is where sound strategic planning for maximization and repatriation of profits becomes so important in China...
Guidelines for Managing Large Enterprise Tax Risk Released
Posted on June 01, 2009June 1 ? China?s State Administration of Tax released a guideline last month for how large enterprises should manage tax risks in the current economy. Released on May 5, Guoshuifa (Tax Circular) No. 90, ?China SAT Guide for Large Enterprises to Manage Tax Risks,? provides guidance for large enterprises regarding their overall corporate tax compliance and [...
Shanghai to Spend US$45 Billion for Expo
Posted on May 31, 2009SHANGHAI, May 31 ? Shanghai is sparing no expense to make next year?s World Expo the most expensive one yet at US$45 billion, more than the money spent for the Beijing Olympics. The city is pushing through plans to upgrade infrastructure and build new transportation links despite the ongoing credit crisis...
Hong Kong to Send Rebates to 500,000 Taxpayers
Posted on May 31, 2009HONG KONG, May 31 - An estimated 500,000 taxpayers in Hong Kong will receive rebate checks in September while 800,000 taxpayers may not need to pay taxes for the year, according to the Hong Kong Financial Secretary John Tsang. He spoke during a radio show last Saturday adding that he was assured that recent relief measures [...
Shanghai to Subsidize More Environmentally Friendly Cars
Posted on May 31, 2009SHANGHAI, June 1 ? The local government is encouraging more people to replace their cars and trucks with more environment-friendly models by giving average subsidies of RMB5,000 starting today until April 30, 2010. The measure is part of the city?s efforts to ease pollution and help the local economy for the coming Shanghai 2010 World Expo...
China Sector Watch: Automobiles
Posted on May 29, 2009This series will take an in-depth look at the industries that are shaping the Chinese economy today. By Joyce Roque May 29 - It would be in 1901 that automobiles first came to China, mainly in the streets of then turn of the century Shanghai. Then, automobiles were usually imports from America and used by foreigners...
Hong Kong Adds HK$16.8 Billion to Stimulus Plan
Posted on May 27, 2009May 27 - Yesterday the Hong Kong Special Administrative Region (HKSAR) announced its package of tax cuts, fee waivers and spending amounting to HK$16.8 billion to ease the effects of the global economic crisis. The plan includes the waiver of business registration fees, salary tax cuts and two quarter suspension of property rates...
Chinese Investors Buy Minority Stake in NBA Team
Posted on May 26, 2009May 26 ? A Chinese investment group has bought minority stakes of a U.S. basketball franchise and its arena. The group could purchase as much as 15 percent of Cavaliers Operating Co. although the deal is still pending approval from the National Basketball Association’s board of governors...
HSBC and Citibank Cut RMB Deposit Rates
Posted on May 25, 2009May 25 - HSBC and Citibank have cut interest rates for medium-term yuan deposits for retail consumers below the central bank benchmark. The move highlights differing policies between local and foreign banks. While foreign banks have refrained from lending more, local banks have gone ahead to fund various projects related to the stimulus plan...
Around Asia: May 26
Posted on May 25, 2009May 26 - A weekly look at important regional news. The 2009 Monsoon Arrives, Affecting India to China The annual Asian monsoon has arrived, touching the western coast of India last Saturday with 5 centimeters of rainfall in Thiruvananthapuram, the State Capital of Kerala in 24 hours...
Tianjin to Expand Rail Network by 2020
Posted on May 25, 2009May 26 ? Tianjin?s plan to grow its railways system to 470 kilometers of track by 2020 has been approved. Tianjin is a port city located around 120 kilometers from Beijing. Currently, it has one subway line and one light rail line totaling 70 kilometers while two more subway lines and an extension of the [...
Another Chinese Yangtze Species Extinct?
Posted on May 25, 2009May 26 - Following the sad tale of the extinction of the Chinese Yangtze River Dolphin, it appears the Yangtze River is losing more species, including the giant Chinese Paddlefish, which has not been seen alive since 2007. Reaching 23 feet (7 meters) in length and weighing half a ton (450 kilograms), the creature is thought [...
China Industry: May 25
Posted on May 24, 2009May 25 - This is a regular series of relevant industry news from around China. Solar power U.S. solar power plants developer AES Solar Energy has signed a supply deal with Chinese photovoltaic (PV) product manufacturer Yingli Green Energy. Under the three-year exclusive supplier framework agreement, Yingly Green Energy will deliver its polycrystalline PV modules to [...
Shenzhen Plans to Expand Economic Zone to Include the Whole City
Posted on May 22, 2009SHENZHEN, May 22 - The local government has proposed a plan to expand its special economic zone (SEZ) to encompass the whole city as a way to boost its competitiveness during the downturn. If the proposal pushes through, the Bao’an and Longgang districts will become part of the SEZ thus growing the area from 395...
Stanley Ho and LVMH Invest in Upscale Complex in Hongqiao
Posted on May 21, 2009SHANGHAI, May 22 - Gambling magnate Stanley Ho and LVMH Moët Hennessy - Louis Vuitton chairman Bernard Arnault attended the groundbreaking ceremony of L’Avenue Shanghai last May 20. Mr. Ho and LVMH co-invested US$500 million for the project to develop an area of about 140,000 square meters located in the Hongqiao Development Zone and slated to [...
Global Manufacturing in China Changes Tune as Exports Slow and India Rises
Posted on May 21, 2009By Chris Devonshire-Ellis May 21 - Subtle changes are occurring in the global and domestic perception of China as a viable cheap manufacturing source as the country grapples with the imbalances caused by its export driven economy. While much of China?s foreign direct investment over the past twenty years has come from initially one source [...
CEPA VI Continues Economic Liberalization Between Hong Kong and the Mainland
Posted on May 20, 2009By Joyce Roque HONG KONG, May 20 - Officials from the Chinese mainland and Hong Kong signed the latest supplement to the Closer Economic Partnership Arrangement (CEPA) last May 9 to further ease economic activities between the two. The agreement is set to take effect on October 1, 2009...
MGM Mirage?s Macau Venture Criticized by U.S. Agency
Posted on May 20, 2009May 21 - In a report, the New Jersey Division of Gaming Enforcement has recommended that MGM Mirage cut business ties with its joint-venture partner in Macau, Pansy Ho, the daughter of Macau gambling magnate Stanley Ho. The gambling-enforcement agency called Ms...
Sarbanes-Oxley and U.S. Businesses in China
Posted on May 19, 2009By Hank Bourg May 19 - The Public Company Accounting Reform and Investor Protection Act of 2002 commonly known as Sarbanes-Oxley or SOX after the two authors of the bill, was enacted on July 30, 2002 in response to several major corporate and accounting scandals, the most infamous being the meltdown of energy giant Enron...
Hangzhou Promises to Clampdown on Illegal Software for Microsoft
Posted on May 18, 2009May 18 - China’s east coast city of Hangzhou has promised to step-up enforcement of anti-piracy laws in exchange for investments from Microsoft. The city has laid out specific targets for enforcement and will encourage local companies to use legitimate programs...
Hong Kong Clarifies Rule on Double Tax Relief
Posted on May 18, 2009HONG KONG, May 18 - The Hong Kong Inland Revenue Department has released details on Departmental Interpretation and Practice Notes No.45- ?Relief from Double Taxation due to Transfer Pricing or Profit Reallocation Adjustments? (DIPN45) last April 30. The DIPN45 clarifies the procedure for companies wanting to seek double tax relief for transfer pricing or profit reallocation [...
Hong Kong Extends Online Filing of Tax Returns
Posted on May 18, 2009HONG KONG, May 19 - Hong Kong’s Inland Revenue Department (IRD) has extended the online filing of tax returns to June 4 to encourage more people to use the service. “As a one-month period is allowed for filing individual tax returns, the deadline falls on June 4 this year,” the Commissioner of Inland Revenue, Alice Lau, [...
Security Checks on Foreign Staff in Beijing Increasing
Posted on May 15, 2009BEIJING, May 15 - Checks by the Public Security Bureau on the status of foreign employees in offices in Beijing have been taking place in the lead up to the anniversary of the Tiananmen Square incident on June 4. The checks include requests to provide passport, visa and resident certificates...
China Cuts Industrial Land Prices by 30 Percent
Posted on May 15, 2009May 15 - The Ministry of Land and Resources is discounting the minimum purchase price of land for use in agriculture, forestry, animal husbandry and aquatic products by 30 percent to encourage more investment. The announcement made last Wednesday did not specify when the cut will begin...
Foreign Banks Post Profits Despite Industry Constraints
Posted on May 14, 2009May 14 - Despite China’s constraints on its banking and financial industry, foreign banks reported robust profits from its business coming from the mainland; providing a respite from troubled U.S. markets. For HSBC Holdings PLC, mainland China was its fourth most profitable market last year at US$353 million in pretax profits an increase of 137 percent [...
The Foreign Corrupt Practices Act: Implications for U.S. Businesses in China
Posted on May 13, 2009By Hank Bourg May 13 - The 1988 Trade Act by the Congress of the United States directed the U.S. Attorney General to provide guidance to potential exporters and small business regarding the Foreign Corrupt Practices Act of 1977, an act all U.S. businesses operating in China need to be familiar with...
China Industry: May 13
Posted on May 12, 2009May 13 - This is a regular series of relevant industry news from around China. Solar power Wang Zhongying, assistant director of the Energy Research Institute of the National Development and Reform Commission, said that China plans to boost its solar power capacity to 10?20 GW by 2020...
Plans to Allow Foreign Companies to List in Shanghai Stock Exchange Underway
Posted on May 12, 2009SHANGHAI, May 13 - Plans to allow foreign companies to list on the Shanghai Stock Exchange have already begun as well as the development of an international board. The local government has concluded an agreement with Britain that aims to improve the stock market...
New M&A Tax Regulations Released
Posted on May 11, 2009May 11 - China’s Ministry of Finance and the State Administration of Taxation released new Merger and Acquisition (M&A) Tax Rules on April 30. It is the first time the Chinese government has issued a comprehensive set to address the issue of tax treatment of varieties of M&A...
Cheung Kong?s Posh Villas Sell Out in One Weekend
Posted on May 11, 2009May 11 - Li-Ka Shing’s Cheung Kong Property Developers first phase development at La Grande Villas, close to Beijing’s International Exhibition Center, sold out it’s entire stock of house units over 48 hours this past weekend. The development, which comprises luxury houses priced at between US$750,000 to US$2 million, sold out all 138 properties at [...
Inflation Rate Drops for Third Month
Posted on May 11, 2009May 11 - China’s inflation rate dropped for the third month in a row in April as its consumer price index decreased by 1.5 percent compared from a year earlier after a 1.2 percent decline in March. According to the National Statistics Bureau (NSB), food prices decreased by 1...
Shipping Tax Break for Foreign Ships Extended
Posted on May 11, 2009SHANGHAI, May 12 - Shanghai’s local government has announced that it would extend the tax break for foreign-registered ships until June 30, 2011 in line with its goal of making the city a major international financial center and shipping hub by 2020...
Shanghai Merges Economic Zones
Posted on May 08, 2009SHANGHAI, May 8 - In a move aimed at streamlining the city’s shipping, business and manufacturing industries, the local government is combining the Nanhui District with the Pudong New Area under one government entity. The partnership of the Yangshan Deep-water Port and the Waigaoqiao Free Trade Zone will lead to better port and shipping policies in [...
AmCham China Releases 2009 White Paper
Posted on May 07, 2009May 7 - The American Chamber of Commerce in the People?s Republic China has released its 11th white paper on the state of American businesses in the country based on the views and experiences of its members. The 2009 White Paper is released by AmCham-China annually and is used by the organization as a basis for [...
China Revises Market Entry Policies for Banks
Posted on May 06, 2009May 6 - Recently, the China Banking Regulatory Commission (CBRC) released the new market entry policies for branches of joint-stock commercial banks and urban commercial banks. The new policies called the Opinions on the Market Entry Policies for Branches of Small and Medium-Sized Commercial Banks include six clauses...
Stricter Visa Application Procedure for U.S. Citizens
Posted on May 06, 2009May 6 - China has announced new rules for visa applications to the country for U.S. citizens; suspending express and rush services until further notice. All U.S. visa applications to China, including tourist and business visas, will now take six business days to process as opposed to the previous one day processing...
Around Asia: May 6
Posted on May 06, 2009May 6 - A weekly look at important regional news. India Empowers 700 million People, China Looks On One of the fundamental differences between India and China is the democratic process of government. It?s a curious subject to delve into: Indian politicians look on with envious eyes at China?s one party state and their ability to push [...
Are Privileged GAAP Treatments Keeping China?s SOEs Profitable?
Posted on May 05, 2009May 5 - Findings by the research team at the Spanish bank BBVA uncovered specific treatments by the Chinese government used solely for the benefit of its own state-owned enterprises that appear to show a disregard for China?s own generally accepted accounting principles in terms of transparency and fair competition...
Alibaba Hikes Fees for Global Members
Posted on May 05, 2009May 5 - China’s biggest e-commerce company, Alibaba, has announced that it will hike fees by as much as five-fold for its international members starting June 15. The new annual fee is priced at US$2,999 and will give members the same pricing and level of service that local domestic exporters receive...
CHINICT Founder Looks Forward to Successful IT Entrepreneurship Conference
Posted on May 05, 2009May 5 - From May 21 to May 22, Beijing will play host to the largest networking, communication and brand-positioning event in Asia for the world?s fastest growing IT corporations. CHINICT [pronounced China-ICT] aims to bring together established industry heavyweights with up and coming IT companies, providing insight into market trends and introducing cutting-edge technologies...
China Approves Taiwan Straits Economic Zone
Posted on May 05, 2009May 5 - China’s State Council has approved the development of an economic zone on the western side of the Taiwan Straits with Fujian Province at its hub and linking it to the Pearl River Delta and the Yangtze River Delta. This could mean that Fujian will get more policy support from the central government...
New China Briefing and Technical Guide Examine Transfer Pricing in China
Posted on May 04, 2009May 4 - The May issue of China Briefing magazine is online and available for download (complimentary subscription available). Transfer pricing is a reality for most multinational companies in China, and with the implantation of the new Enterprise Income Tax Law, the arm?s length principle for pricing group transactions is now being actively enforced...
Guangdong Reports Boost in Ship Exports
Posted on May 04, 2009May 4 - Guangdong province reported an increase of ship exports when it sold 42,000 vessels for the first quarter of the year at an increase of 230 percent. The total exports were made up of 49.1 percent or US$200 million by foreign-funded companies and the rest worth US$160 million was sold by state-owned enterprises...
Mainland China Investments in Taiwan Now Permitted
Posted on May 01, 2009May 1 - New laws allowing Mainland Chinese companies to invest in Taiwan came into effect today, bringing to an end 60 years of cross-straits B2B restrictions. Previously, Chinese companies wanting to invest in Taiwan had to establish Hong Kong or other entities to do so, and even this was considered not politically prudent...
Foreign Businesses Permitted to List in Shanghai
Posted on April 30, 2009SHANGHAI, Apr. 30 - China?s State Council yesterday approved plans to permit, on a trial basis, overseas companies to list on the Shanghai stock exchange. The ratification allows foreign companies to list on the exchange, to use RMB for trade settlements, and to float shares in RMB denominated bonds...
New Regulation on Releasing Financial Info
Posted on April 30, 2009Apr. 30 - China’s State Council Information Office, the Ministry of Commerce, and State Administration for Industry and Commerce has announced a new regulation regarding the release of financial information in the country by foreign organizations...
China Industry: May 1
Posted on April 30, 2009May 1 - This is a regular series of relevant industry news from around China. Solar power Taiwanese Motech Industries booked a net income of TW$48 million for the first quarter of 2009, 82 percentless than last year and the lowest in six years. Chinese photovoltaic (PV) cells and modules maker Suntech Power Holdings Co...
China Ramps Up Security for 60th Anniversary Celebration
Posted on April 29, 2009Apr. 29 - China has announced that it would launch a security campaign in May similar to the measures taken last year for the Beijing Olympic to guarantee safety for the upcoming anniversary celebrations marking the founding the of the People’s Republic of China on Oct...
Around Asia: Apr. 28
Posted on April 28, 2009Apr. 28 - A weekly look at China and related influential regional news. Vietnam Taking Precautionary Measures Against Swine Flu At the recommendation of health experts, Vietnam has established precautionary measures to protect itself from the spreading H1N1 strain of swine flu virus currently affecting people in Mexico and the Unites States...
China Signs Deals Worth US$10 Billion with U.S. Companies
Posted on April 28, 2009Apr. 28 - At yesterday’s forum hosted by the U.S. Chamber of Commerce and the China Chamber of Commerce for Import and Export of Machinery and Electronic Products, Chinese companies signed 32 contracts with American companies worth US$10.6 billion...
China Sector Watch: Tourism
Posted on April 28, 2009This series will take an in-depth look at the industries that are shaping the Chinese economy today. By Joyce Roque Apr. 29 - The tourism industry in China in many ways is still at its early stages. Compared to the other industries that opened up after the reforms made Deng Xiaoping thirty years ago, the industry has [...
Hong Kong Announces Strict Measures Against Swine Flu
Posted on April 27, 2009Apr. 27 - Once the epicenter of a SARS outbreak, Hong Kong,has announced that it would implement strict measures in response to the reported swine flu outbreak in Mexico and the United States. According to the U.S.’s Centers for Disease Control and Prevention, at least 20 cases have been already been confirmed in New York, Ohio, [...
China to Spend US$10B in Next Phase of Stimulus Plan
Posted on April 27, 2009Apr. 27 - As part of the next phase of its stimulus plan, Beijing is set to spend RMB70 billion or US$10.3 billion to be used mostly for infrastructure projects. The amount is part of the total RMB4 trillion yuan stimulus package announced by Beijing last November to help the economy cope with the global [...
Food Safety Law to Require Registration for Foreign Importers
Posted on April 24, 2009Apr. 23 - Following the draft of a new food safety law, foreign food importers will need to register with the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) every four years to ensure the safety of their products. The new law is set to take effect on June 1...
New Postal Law May Limit Foreign Companies
Posted on April 24, 2009Apr. 24 - China’s new legislation for postal services may restrict foreign companies from competing with domestic firms. The new Postal Law on the express delivery of documents is currently in its final stages and is expected to be approved soon when the standing committee of the National People’s Congress meet...
Zhuhai to Invest RMB317 Billion on Upgrading Infrastructure
Posted on April 23, 2009Apr. 23 - The port city of Zhuhai in Guangdong Province is set to invest 316.9 billion to upgrade its infrastructure with 67 public works projects for this year alone. The shipbuilder, CSSC Jiangnan Heavy Industry, has already provided RMB44.3 billion in a shipyard in the city...
Will the Chinese Market Save the Auto Industry?
Posted on April 22, 2009By Joyce Roque SHANGHAI, Apr. 22 ? If the ongoing 2009 Auto Show in Shanghai is any indication, automakers all over the world are hoping that Chinese demand will sustain them during these tough times. Porsche introduced its entry to the luxury sedan market during the eve of the auto show...
China to Restrict F Visas for 60th Anniversary
Posted on April 22, 2009SHANGHAI, Apr. 22 - In preparation for the 60th anniversary of the founding of the People’s Republic of China, there has been talk that the government may restrict F visas beginning this month. The preparations for a large national celebration of the October 1, 1949 founding are already underway and should Beijing elect to tighten [...
Around Asia: Apr. 21
Posted on April 21, 2009Apr. 21 - A weekly look at China and related influential regional news. India Back on Track as Chinese Ore Demands Provide Growth Steel output and a revival in the auto, housing and rural infrastructure sectors for Q1 in India point to a turning point for India?s economy, while other steel producing countries have seen a continuing [...
Five Nuclear Stations to be Built This Year
Posted on April 21, 2009Apr. 21 - According to China’s National Energy Administration (NEA) there are plans to build five nuclear power stations in Zhejiang, Shandong, Guangdong and Hainan by the end of the year. The Sanmen Nuclear Power Plant in Zhejiang already begun construction last Sunday...
Porsche Unveils its First Sedan in Shanghai
Posted on April 20, 2009SHANGHAI, Apr. 20 - Porsche introduced its first luxury sedan during the eve of the Shanghai auto show at the Shanghai World Financial Center; indicating its focus on the Chinese automobile market. It is the first time the car company formally entered a new market segment during an auto show outside the United States or Europe...
China Industry: Apr. 21
Posted on April 20, 2009Apr. 21 -This is a regular series of relevant industry news from around China. Solar power Chinese solar power products manufacturer Trina Solar said yesterday it had supplied photovoltaic (PV) modules to a 4.7 MW rooftop installation in Italy. The project, developed by Italy-based investment company ErgyCapital at the end of February, is currently the country’s largest PV [...
Majority of China?s Richest Live Outside Big Cities
Posted on April 17, 2009Apr. 17 - Majority of China’s wealthiest people live outside the huge cities of Beijing, Shanghai and Guangdong, according to a study. The Hurun 2009 Wealth Report announced that 825,000 people in China have a reported personal wealth of more than RMB10 million (US$1...
China to Revise FDI Procedures
Posted on April 16, 2009Apr. 16 - China will further revise its foreign direct investment (FDI) approval procedures in a bid to make the process efficient and channel more investments to the western and central parts of the country. Despite China’s FDI inflow slowing down for the sixth consecutive month, March figures indicate that the economy may be picking [...
Rules for Deducting Commision Expenses During Tax Filing in China Clarified
Posted on April 15, 2009Apr. 15 - The State Administration of Taxation and the Ministry of Finance recently issued a circular clarifying the rules for deducting commission expenses during enterprise income tax filing. The circular, Caishui [2009] No. 29, was issued March 19 and sets a deduction ceiling at 15 percent of the prescribed premium income for property insurance companies [...
Hong Kong, Shenzhen and Shanghai Listed as the Most Competitive Cities in China
Posted on April 15, 2009Apr. 15 - The seventh edition of the Blue Book on Urban Competitiveness conducted by the Chinese Academy of Social Sciences (CASS) listed Hong Kong, Shenzhen and Shanghai as the three top competitive cities in the country. The newest entrant to the top 10 is the coastal city of Qingdao; which hosted the sailing events for [...
China Industry: Apr. 16
Posted on April 15, 2009Apr. 16 - This is a regular series of relevant industry news from around China. Air transport Chongqing Airlines, a company jointly owned by China Southern Airlines and Chongqing International Invest Co, received its first of three Airbus A319s at a ceremony held in Hamburg, Germany...
China in Asia: Apr. 14
Posted on April 14, 2009Apr. 14 - Here is how China has been reported across the region over the past week. China / India Border Disputes: Arunachal Pradesh With news that China has vetoed plans for an Asian Development Bank loan to India for development of the Arunachal Pradesh region, we take a look at why the region is disputed, [...
Five Year Tax Exemptions for Media and ?Cultural? Industries
Posted on April 14, 2009Apr. 14 -The Chinese government has announced a preferential tax policy spanning five years to help boost the country’s “cultural industries.” According to the Ministry of Finance, cultural companies will be qualified for an exemption of value-added tax, business tax or import duties from 2009 to 2013...
Rules for Chinese Overseas Investment Relaxed, Guidelines Issued
Posted on April 12, 2009Apr. 13 - The Ministry of Commerce released its first guidelines for overseas investment by Chinese companies on Friday. The document, encompassing some twenty countries approved by the central government to receive Chinese investment, are part of the ministry?s strategy to assist Chinese companies abroad and come on the heels of last month?s relaxing of [...
China Industry: Apr. 13
Posted on April 12, 2009Apr. 13 - This is a regular series of relevant industry news from around China. Solar power Solar power technology supplier Canadian Solar has nabbed an order to supply 80,000 solar panels of 1.6 MW in total for rural households in China?s Sichuan province...
Shanghai to Extend Financial Street Along the Bund
Posted on April 10, 2009SHANGHAI, Apr. 10 - As part of the city’s ambitions to be an international financial and shipping center by 2020, the financial street along the Bund will be extended southward to Nanpu Bridge forming a 2.6 square kilometer zone. It will span from the south bank of Suzhou Creek in the north to Lujiabang in the [...
Whirlpool to Close Shanghai Plant and Move to Zhejiang
Posted on April 10, 2009SHANGHAI, Apr. 10 - U.S. appliance maker, Whirlpool, is closing its washing machine plant in Shanghai and transferring to the Hisense-Whirlpool Facility in Changxing Economic Development Zone in Zhejiang Province. The move will cut 600 jobs in Shanghai but will create 900 jobs in the Zhejiang production base by the end of the year...
Establishing NGOs in China
Posted on April 10, 2009By Christian Fleming SHANGHAI, Apr. 11 - The establishment of not-for-profit, nongovernmental organizations (NGOs) in China is becoming increasingly popular as the necessity of providing private alternatives to social, economic, political, and cultural issues becomes apparent...
Health Care Reform Offers Business Opportunities
Posted on April 09, 2009Apr. 9 - China’s latest move to reform its health care system could provide business opportunities for technology companies, health-services providers, insurers and pharmaceutical companies looking to expand its market despite the global slowdown...
China to Standardize Rural Land-Use Transfer Rights
Posted on April 08, 2009Apr. 8 - China is working out the details of implementing a model contract for rural land-use rights transfer to regularize farmland-use rights. The State Administration for Industry and Commerce said that the model will outline the object, time limit, payment, mode and time of payment of the deal in addition to the date of land [...
China in Asia: Apr. 8
Posted on April 08, 2009Apr. 8 - Here is how China has been reported across the region over the past week. Asian companies are Investing More in their People Large companies across Asia are increasingly investing in human resources - attracting and keeping the best human capital as well as training them for business opportunities which they might face when the [...
China Industry: Apr. 7
Posted on April 07, 2009Apr. 7 - This is a regular series of relevant industry news from around China. Solar power In order to stimulate the country?s solar industry, China’s Ministry of Finance will provide a subsidy of RMB20 per watt-peak for building integrated photovoltaics with a capacity of more than 50 kilowatt-peaks...
Beijing?s Car Restrictions to Continue for Another Year
Posted on April 07, 2009Apr. 7 - Beijing’s revised restrictions on cars will continue for another year beginning April 13 and will only be enforced on weekdays not including holidays and weekends. Spokesman for the municipal committee of communications, Wang Zhaorong, said in a press conference that some of the rules were changed to make it easier for residents to [...
Forbes: Hong Kong has Friendliest Tax Regime in the Region
Posted on April 03, 2009Apr. 3 - According to the 2009 Tax Misery and Reform Index, Hong Kong was ranked as the friendliest tax regime in the Asia-Pacific region and the third in the world. The index was done by business magazine, Forbes Asia and compared 50 jurisdictions around the world...
Zhangjiang High-Tech Park Continues to be Top Draw for FDI
Posted on April 01, 2009SHANGHAI, Apr. 1 - Zhangjiang High-tech Park located in Pudong New Area still continues to be a top destination for FDI with a recent signing of contracts with local and international companies worth an estimated RMB4 billion. Government officials told Shanghai Daily that the investment is expected to generate more than RMB20 billion in output in [...
April Issue of China Briefing Online Now
Posted on April 01, 2009Apr. 2 - The April issue of China Briefing magazine is online and available for download (complimentary subscription available). China’s value-added taxes contribute a large percentage of China’s annual tax revenue and account for a significant proportion of tax liabilities for many Chinese enterprises...
Foreign Investors Asked to Commit 5 Year Lockup for Bank Shares
Posted on April 01, 2009Apr. 2 - The China Banking Regulatory Commission (CBRC) has extended the lockup period for bank shares held by foreign investors from of 3 years to 5 years or more. CBRC chairman, Liu Mingkang, was quoted by China Daily during a recent meeting held at the Chinese Academy of Social Sciences, that if Chinese commercial [...
New Regulations on Travel Agencies Effective May 1
Posted on March 31, 2009Mar. 31- New regulations that will allow local and foreign-owned travel agencies to run inbound and domestic tours with a lower registered capital requirement than was previously the case will take effect beginning May 1. The revised Regulations on Travel Agencies will permit foreign-owned travel agencies to set up in China with just RMB300,000 compared to [...
China in Asia: Mar. 31
Posted on March 31, 2009Mar. 31 - Here is how China has been reported across the region over the past week. Asia To See Increased, But Lower Value M&A Deals This Year M&A activity in Asia is expected to increase over last year as more companies said they were looking to expand in the face of healthy valuations...
Chinese Protectionism vs. Political Pressure
Posted on March 31, 2009Mar. 31 - One of the debates doing the rounds following the fallout of the Coke-Haiyuan deal is China’s attitude towards foreign investment. There have been cries of protectionism and warnings on the perils of doing business in China, and in certain quarters, an absolute belief that China is “anti-foreign takeover” doing the rounds...
China Increases Rebates on Textile, Metal Exports
Posted on March 30, 2009Mar. 30 - Beginning April 1, tax rebate rates on selected textile, iron and steel, nonferrous metal, petrochemical, electronic information and light industrial exports will be raised. The amount of the tax rebate rate is still unavailable; pending confirmation from the State Council...
China Industry: Mar. 30
Posted on March 29, 2009Mar. 30 - This is a regular series of relevant industry news from around China. Solar power Solar Energy Technology Support Center, a new joint venture technology project, has opened doors at the Hong Kong Science Park. The initiative is part of the “Shenzhen-Hong Kong Innovation Circle,” a cooperation agreement between Shenzhen and Hong Kong...
Beijing Rejects Local Gov?t Plans to Extend May Holidays
Posted on March 27, 2009Mar. 27 - Beijing has rejected plans to change the May holidays after the local governments of Guangdong, Liaoning, Xinjiang Uygur Autonomous Region and Hangzhou City, Zhejiang announced an extended week in an effort to boost domestic consumption and tourism...
Guangdong Brings Back May Golden Week Holidays
Posted on March 26, 2009Mar. 26 - The Guangdong government announced that it would bring back the May Day golden week holiday by advancing the following Saturday and Sunday and adding two days from the resident’s annual paid holiday to the three-day vacation from May 1 to 3...
China in Asia: Mar. 25
Posted on March 25, 2009Mar. 25 - Here is how China has been reported across the region over the past week. Is this the Beginning of the Asian Century? Economists globally seem to think that emerging economies will come out of this crisis sooner and stronger than the developed economies...
Northeast Asia Regional Forum Concludes in Mongolia, Economic Cooperation Trumpeted
Posted on March 25, 2009ULAANBAATAR, Mongolia, Mar. 25 ? Government ministers and business leaders from Northeast Asia came together with the United Nations Development Program for the 10th meeting of the Greater Tumen Initiative Consultative Commission, held in the Mongolian capital of Ulaanbaatar on March 24 and March 25...
Xinjiang to Offer First Local Government Bond Sale
Posted on March 25, 2009Mar. 25 - The Xinjiang Uygur Autonomous Region is set to make history when it offers the first local government bond sale in the country amounting to RMB3 billion. The proceeds of the bond sale will be used to finance the economic stimulus package announced last year and reinforce schools and hospitals against earthquakes, build roads, [...
High-Speed Trains Cut Travel Time to Central China and YRD
Posted on March 25, 2009Mar. 25 - Two new high-speed railways will slash travel time to Central China and the Yangtze River Delta when they begin operations on April 1. The two new railways are the Hefei-Wuhan passenger railway and the Shijiazhuang-Taiyuan railway that connects the north and the west...
Central Bank Governor Proposes SDR as Main Reserve Currency
Posted on March 24, 2009Mar. 24 - China’s central bank governor has released a proposal calling for the overhaul of the global monetary system and replacing the world’s main reserve currency with the Special Drawing Right (SDR) prior to the start of the G20 meetings in London next week...
Program to Offer Subsidies for Foreign Experts
Posted on March 23, 2009Mar. 23 - The Organizational Department of the Communist Party of China Central Committee has launched a program that would pay roughly US$146,000 or one million yuan in subsidies each for foreign senior company officials, patent holders and entrepreneurs willing to work and share their technical knowledge...
Spending Plan Risks Industry Overcapacity
Posted on March 23, 2009Mar. 23 - China’s focus on economic growth and investment risks worsening the nation’s overcapacity in industries with global markets unlikely to be able to buy the extra supply, according to economists. China will need to boost consumption at home to absorb the excess supply as overcapacity may overtake actual demand...
China May Release Another Stimulus Package
Posted on March 23, 2009Mar. 24 - China could release another stimulus package should figures for the second quarter of the year be below expectations, according to a senior official at the Ministry of Finance. The head of the Research Institute of Fiscal Science, Jia Kang, told China Securities Journal that the stimulus package launched last November won’t produce results [...
China Industry: Mar. 23
Posted on March 22, 2009Mar. 23 - This is a regular series of relevant industry news from around China. Solar power Chinese solar cells maker China Sunergy Co. saw its revenues rise by 49.4 percent to US$350.9 million last year. Gross profit for 2008 was US$15.5 million, down from US$18 million in 2007...
China?s Antitrust Decision May Affect Overseas Bids
Posted on March 20, 2009Mar. 20 - China’s rejection of the Coke-Huiyuan deal may affect ongoing and future bids made by Chinese companies to acquire overseas assets. The move indicates China’s protectionist stance on huge foreign investment or more interestingly may have been a requital for past failed Chinese bids for the United States’ Unocal and 3Com...
Tianjin Port Overtakes Guangzhou in Cargo Throughput
Posted on March 19, 2009Mar. 19 - Tianjin Port has emerged as a major global port as it overtook Guangzhou Port to become China’s third largest and the world’s fifth largest port in the world. It is the biggest artificial deep water port in the country and last year handled 356 million metric tons of cargo, surpassing average coastal harbor [...
Coke-Huiyuan Deal Fails under Antitrust Review
Posted on March 19, 2009Mar. 19 - Coca-Cola’s bid to acquire China Huiyuan Juice Group was rejected under the anti-monopoly review conducted by the Ministry of Commerce on grounds that the deal would affect or limit competition and was not conducive to the development of the country’s juice industry...
China?s String of Pearls Strategy
Posted on March 18, 2009By Chris Devonshire-Ellis Mar. 18 - China?s ?string of pearls? strategy appears to be taking another step forward as Beijing increases ties with the Sri Lankan government. The strategy, which was the subject of a 2005 U.S. China Commission report to Congress, is driven by China?s need to secure foreign oil and trade routes critical to [...
Antitrust Review of Coke-Huiyuan Deal Due on Friday
Posted on March 17, 2009Mar. 17 - China’s Commerce Ministry has until Friday to review Coca-Cola Co.’s takeover of China Huiyuan Juice Group although under the anti-monopoly law regulators are allowed to extend the deadline. Commerce Ministry spokesman Yao Jian told WSJ that they were in the second stage of their review of Coca-Cola Co...
Cost of Living and Mandatory Welfare Payments Chart for 2009
Posted on March 17, 2009Mar. 17 - China Briefing has updated our cost of living chart detailing prices for a basket of goods and services in the Chinese cities where Dezan Shira & Associates holds offices. In addition, we have also updated welfare chart that catalogs the mandatory welfare payments employers must pay their Chinese employees...
China in Asia: Mar. 17
Posted on March 17, 2009Mar. 17 - Here is how China has been reported across the region over the past week. GFSI : Shanghai 35th, Mumbai 49th The Global Financial Centers Index, which measures the performances of the world?s financial centers, has just released its latest six monthly report...
Provinces Ordered to Stop Power Discounts to Industrial Users
Posted on March 17, 2009Mar. 18 - China’s National Development and Reform Commission told local government to stop giving preferential power discounts to large industrial users as it goes against the national plan to foster energy conservation and revamp industries that consume a lot of energy...
The Chinese are Spending their Way to Recovery
Posted on March 16, 2009By Christian Fleming SHANGHAI, Mar. 16 - Since the collapse of major financial institutions this past fall, China has been spending a fortune trying to keep their country running smoothly and continue expanding. A large part of this spending has come from the RMB4 trillion stimulus package designed to maintain growth even as world trade collapses...
China Signs US$3.2 Billion Gas Deal with Iran
Posted on March 16, 2009Mar. 16 - China has signed a three-year natural gas deal with Iran worth US$3.2 billion to develop the South Pars field underneath the Persian Gulf seabed; said to be the world’s largest natural gas reservoir. The deal comes after the United States announced renewed business sanctions against Iran and highlights how using economic pressure to [...
China Industry: Mar. 17
Posted on March 16, 2009Mar. 17 - This is a regular series of relevant industry news from around China. Solar power Chinese photovoltaic (PV) cells and modules maker Suntech Power Holdings teamed up with U.S. solar project developer 3rd Rock Systems and Technologies to develop an initial 7...
Hong Kong, Mainland to Connect Payment Network
Posted on March 13, 2009Mar. 13 - Beginning March 16, Hong Kong and the rest of the mainland will link their foreign-currency payment and clearing systems to reduce cross-border payment risks and costs. Mainland Chinese banks can now make cross-border payments and settlements in Hong Kong dollars, United States dollars, euros and pounds through the network...
China Industry: Mar. 12
Posted on March 12, 2009Mar. 12 - This is a regular series of relevant industry news from around China. Wind power U.S. anti-friction bearings maker Timken Company has signed a long-term, multi-year agreement to supply wind turbine gearbox bearings to China-based Nanjing High Speed Gear Manufacturing Co Ltd...
February Exports Drop by 25.7 Percent
Posted on March 12, 2009Mar. 12 - China’s General Administration of Customs released the figures for February showing that exports plunged by 25.7 percent to US$64.9 billion compared to last year. It is the largest decrease in more than a decade and the fourth monthly decline in a row, reports China Daily...
Local Governments Allowed to Approve Foreign Investment
Posted on March 12, 2009Mar. 13 - China’s Ministry of Commerce (MoC) is allowing local governments to authorize the set-up of foreign-funded ventures to cope with slowing capital inflows, effective immediately. Local governments can approve foreign investment worth up to US$100 million in sectors that the country wants to develop...
New Regulation for Company Chops in Shenzhen
Posted on March 11, 2009SHENZHEN, Mar. 11 - For companies in Shenzhen that are looking to change or report the loss of their company chop, legal representatives are now required to appear and file the application in person. In the past, this could be done through power of attorney...
Guangdong Supports Foreign-Funded Businesses
Posted on March 10, 2009Mar. 10 - The provincial government of Guangdong has implemented measures to help Hong Kong, Macau and Taiwanese-funded companies deal with the slowing global economy. The latter combined comprise of sixty four percent of the 91,000 foreign-funded companies in the province...
Coke-Huiyuan Deal Still Under Review
Posted on March 10, 2009Mar. 10 - The Chinese government is still reviewing Coca-Cola Co’s bid to acquire China Huiyuan Juice Group under the new anti-monopoly law, the Commerce Minister Chen Demin said in a press conference at the sidelines of the ongoing annual parliamentary meeting...
China Industry: March 9
Posted on March 09, 2009Mar. 9 - This is a regular series of relevant industry news from around China. Solar power U.S.-based Chinese manufacturer Worldwide Manufacturing USA has filed for eight Chinese patents seeking protection for solar module technology. These patents will address improvements in voltage receiving capacity, production process enhancements, power output increases and design improvements...
China to Eventually Abolish Export Tax
Posted on March 09, 2009Mar. 9 - China will eventually cut export-related taxes to zero and offer financial help for struggling exporters, the commerce minister said in an interview. The Commerce Minister Chen Deming told the Study Times newspaper, the government would “according to international rules steadily restore zero tax rates for export products,” as well as ensure high-energy and [...
China in Asia: Mar. 10
Posted on March 09, 2009Mar. 10 - Here is how China has been reported across the region over the past week. Asia Optimistic of Continued Growth As Warren Buffett and President Obama predict a gloomy economy this year, Asian economies backed by the strength of their financial systems and international reserves are looking forward to a brighter economy with more [...
China Announces Plan to Renovate Rural Housing
Posted on March 08, 2009Mar. 8 - China will implement a large scale plan to renovate dilapidated houses in rural areas to improve quality of living, create jobs and increase domestic demand, according to reports. The vice minister of Housing and Urban-Rural Development, Qi Ji, told Xinhua during the ongoing annual parliament session that China will rebuild 800,000 rural houses [...
China?s Postal Savings Bank to Play Key Role in Spreading Rural Wealth
Posted on February 26, 2009Feb. 26 - China?s Postal Savings Bank, a relatively obscure yet powerful entity formed in 2007, will be the main infrastructure driver for getting income into rural areas under the country?s economic stimulus plan. The bank, which was initially capitalized at RMB20 billion, was formed following a restructuring of the State Post Bureau, and consequently possesses [...
A Look at China in Numbers
Posted on February 25, 2009By Christian Fleming Feb. 25 - As the workshop of the world, China has largely fueled its growth through the export of consumer goods to the West. This was undoubtedly the niche China was bound to fill with its army of cheap labor, abundant natural resources, and a burgeoning free market economy...
China Industry: Feb. 26
Posted on February 25, 2009Feb. 26 - This is a regular series of relevant industry news from around China. Solar power According to a report by Bharat Book Bureau, in 2008, the additional installed capacity of wind power in China was 6.3 GW and the total installed capacity reached 12...
Online Shopping Rises by 128.5 Percent in 2008
Posted on February 24, 2009Feb. 24 - Online shopping rose by 128.5 percent to reach RMB120 billion in 2008, according to a report made by research firm, iResearch and top shopping website, Taobao.com. The number of those registering online to shop grew to 120 million, an increase of 185 percent from the previous year...
Survey: Chinese Mainland Most Preferred Job Location in Asia
Posted on February 24, 2009Feb. 25 - The Chinese mainland is now considered the most preferred job assignment destination in Asia for multinationals, reports a survey done by a top accounting firm. Among the 112 companies surveyed, seventy-eight percent chose the Chinese mainland as their key assignment location in Asia, followed by Singapore at 43 percent and Hong Kong [...
Yangtze Ports Show Signs of Growth
Posted on February 23, 2009Feb. 23 - Cargo passing through the Yangtze River ports increased in January, the first time after six months of decline. Industry sources told Xinhua that businesses on the river will not see a full recovery until the year’s second half. In January, major ports in the area reported that cargo throughput of 80 million tons, [...
Devonshire-Ellis Resigns
Posted on February 23, 2009Feb. 23 - Chris Devonshire-Ellis, the senior partner of Dezan Shira & Associates and publisher of China Briefing, has resigned from his positions today. He effectively leaves the business he founded 17 years ago in South China and the publishing company that is celebrating its 10th anniversary this year...
China in Asia: Feb. 24
Posted on February 23, 2009Feb. 24 - Here is how China has been reported across the region over the past week. The Economic Crunch Lunch While job losses, plunging currencies and cuts in interest rates are a more apparent form of the economic crisis, changing food habits are a less obvious alteration...
China Industry: Feb. 23
Posted on February 22, 2009Feb. 23 - This is a regular series of relevant industry news from around China. Solar power Golden Sun (Fujian) Solar Technology Co. Ltd. plans to build a RMB950 million thin film solar cell R&D and manufacturing facility with an annual production capacity of 150 MW in the Mafang Industrial Park of Pinggu District...
Brazil to Supply up to 160,000 Barrels Daily to China
Posted on February 20, 2009Feb. 20 - Brazil’s state-owned oil and gas giant, Petrobras, has agreed to supply from 100,000 to 160,000 barrels of oil daily to China. The oil will be sold to China at market prices and handled by China National Petroleum Corp. and Sinopec.The deal also includes a US$10 billion loan from the China Development Bank, financed [...
Foreign-Owned Banks Urged to Increase Lending
Posted on February 20, 2009Feb. 20 - The government is urging foreign-owned banks including Citigroup Inc. and HSBC Holdings Plc. to increase lending to support the slowing economy. Last month, the likelihood of defaults led foreign-owned banks to decrease lending and rein in credit...
NDRC and CBRC Notice
Posted on February 19, 2009Feb. 19 - The National Development and Reform Commission and the China Banking Regulatory Commission have issued statements on their respective websites concerning interviews held with agency officials that appeared on this website. As they state, that these were not ?official? meetings...
China to use Forex Funds to Boost Domestic Market
Posted on February 19, 2009Feb. 19 - The Chinese government said it will use its foreign exchange reserves to lift sagging imports and domestic demand. During a press conference, Fang Shangpu, deputy director of the State Administration of Foreign Exchange (SAFE) told China Daily that the administration would allow more measures to support Chinese firms wanting to expand overseas...
Guangdong Government Launches Trade Website
Posted on February 19, 2009Feb. 19 - The local government has launched a website to provide information and services for Guangdong-based companies dealing in international trade. The companies will be able to use the site for various document and license applications as well as provide updates on the latest government trade policies and news on the global markets...
China Reveals Details of Stimulus Package
Posted on February 19, 2009Feb. 20 - The State Council has announced additional details of the stimulus package in terms of plans to aid the country’s light industry and petrochemical sector. Processing trade restrictions on labor-intensive, technology-intensive, energy-efficient, and environment-friendly products will now be abolished...
China, Russia Sign Energy Pact
Posted on February 18, 2009Feb. 18 - China and Russia have agreed on an energy cooperation pact that will include building a crude oil pipeline and long-term crude trading and loans. The deal also comes with a financing scheme between the China Development Bank and Russia’s oil companies...
Foreign Direct Investment Drops by 32.7 Percent
Posted on February 17, 2009Feb. 17 - The Ministry of Commerce reported that foreign direct investment declined by 32.7 percent in January to US$7.54 billion year on year. This is the fourth straight month that China reported slowing FDI rates. Last December, the FDI rate was 5...
Clarification Over RMB Commentary
Posted on February 17, 2009BEIJING, Feb. 18 - We wish to provide a clarification over the RMB/U.S. dollar position as quoted in conversations with Vice Minister Zhang Xiaoqing and CBRC Chairman Liu Mingkang. Both gentlemen acknowledged that the RMB position against the U.S. dollar was currently felt to be at the correct level, however in terms of a weakening [...
Interview with the China Banking Regulatory Commission
Posted on February 17, 2009By Chris Devonshire-Ellis BEIJING, Feb. 18 - Liu Mingkang is the chairman of the China Banking Regulatory Commission and the People?s Bank of China, the nation?s central bank. The CBRC is authorized by the State Council to regulate the Chinese banking sector, making Liu one of China’s most visible and important senior government officials...
China Industry: Feb. 18
Posted on February 17, 2009Feb. 18 - This is a regular series of relevant industry news from around China. Solar power Chinese solar cells maker JA Solar Holdings Co. Ltd. said it had extended its existing agreement with BP Alternative Energy Holdings Limited, a subsidiary of BP Plc, to supply monocrystalline and multicrystalline solar cells to BP Solar in 2009, with [...
China in Asia: Feb. 16
Posted on February 16, 2009Feb. 16 - Here is how China has been reported across the region over the past week. Can China and India Compete with U.S. Multinationals? ??East and South Asia are poised to become the long-term power centers of the world,? the director of national intelligence, Admiral Dennis Blair told the U...
Interview with the National Development and Reform Commission
Posted on February 16, 2009By Chris Devonshire-Ellis BEIJING, Feb. 17 - Zhang Xiaoqiang is the vice chairman of the National Development and Reform Commission, and a board director of the China Investment Corporation. The NDRC is a macroeconomic management agency under the State Council, and has broad administrative and planning control over the Chinese economy...
Companies Now Allowed to Hire Graduates Without Hukou
Posted on February 16, 2009Feb. 17 - China’s State Council has announced that it will abolish the permanent residency requirement to allow job seekers to move easily between cities and alleviate unemployment. The regulation is applicable to all cities in the country except Beijing, Shanghai, Tianjin and Chongqing...
Chinese Ports Upgrade Facilites
Posted on February 15, 2009Feb. 16 - China’s shipping industry is taking advantage of the government’s RMB4 trillion stimulus plans by upgrading their logistics facilities. Despite the downturn, Chinese ports are improving infrastructure by building more dry hubs, domestic shipping lines in addition to expanding into barge, railway and road transportation...
Interview with the Ministry of Finance
Posted on February 15, 2009By Chris Devonshire-Ellis BEIJING, Feb. 16 - Wang Jun is the vice minister of the Ministry of Finance, the General Secretary of China Accounting Standards Committee, and a member of the Standards Advisory Council of International Accounting Standards Board (IASB)...
Karma Trumps Feng Shui in China
Posted on February 13, 2009Feb. 13 - Every Friday afternoon we feature the best weekly article from China Expat that bridges the gap between China business and culture. We hope you?ll find it interesting and enjoyable. Karma Beats Feng Shui Businessmen from Harbin to Hong Kong spend ungodly sums on feng shui...
China Industry: Feb. 12
Posted on February 12, 2009Feb. 12 - This is a regular series of relevant industry news from around China. Solar power Chinese photovoltaic giants including Suntech Power, LDK Solar, Trina Solar Ltd. and Canadian Solar Inc. offered the Chinese Ministry of Science and Technology a plan to cut power generation costs to RMB1 per kw/h...
Interview with the Ministry of Commerce
Posted on February 12, 2009By Chris Devonshire-Ellis BEIJING, Feb. 13 - Jiang Zengwei is the vice minister of Commerce and director-general of the National Intellectual Property Protection Office. His portfolio consists of the Department of Commercial Reform and Development, the National Office for the Rectification and Regulation of Market Economic Order, and the Ministry of Commerce Logistics Bureau...
Interview with the Ministry of Industry and Information Technology
Posted on February 11, 2009By Chris Devonshire-Ellis Feb. 12 - Miao Wei is the vice-minister for the newly formed Ministry of Industry and Information Technology. Miao spent his career in the automobile industry, working in sales, production and engineering before rising to the leadership of the Dongfeng Automobile Corporation...
New Rules Issued for Layoffs
Posted on February 11, 2009Feb. 12 - China’s State Council has announced new rules that will require companies to report to local labor authorities one month in advance before implementing layoffs. The move signals the government’s concern on increasing unemployment rates due to the global slowdown...
Downsizing and Liquidating a China Business
Posted on February 10, 2009Feb. 11 - While the current global economic problems continue to wreak havoc, particularly among businesses in China who are solely export focused, it is prudent for executives facing difficult decisions in China to be aware of their responsibilities when faced with tough decisions...
China to Reconsider Taxes, Subsidies for Oil
Posted on February 10, 2009Feb. 11 - China could raise the oil-price threshold for firms qualified for windfall taxes, from US$40 a barrel to US$60 along with granting more subsidies to aid the petroleum and chemical industry. In 2008, oil firm CNPC paid a staggering RMB85 billion in windfall taxes or an estimated 62...
Shandong Province to Build RMB150 Billion Railway Network
Posted on February 09, 2009Feb. 9 - Shandong Province has announced a seven-year plan for a high-speed intra-province railway system of 14 railroads that will connect 17 cities, including Qingdao, Yantai, Jinan, Rizhao, Linyi and Weihai. The railway plan will cost a total 150 billion yuan with 70 percent of the amount to be shouldered by the Ministry of Railways [...
FedEx Moves Asia-Pacific Hub to Guangzhou
Posted on February 09, 2009Feb. 9 - U.S. logistics giant Federal Express will soon move its Asia-Pacific air trans-shipment hub from the Philippines to China’s Guangzhou City. The company’s Philippine base is located in Subic Bay, a former United States Navy base, 100 kilometers northwest of Manila...
Fire Destroys 5-Star Hotel Near CCTV Tower in Beijing
Posted on February 09, 2009BEIJING, Feb. 9 - The newly built, and still unoccupied, Mandarin Oriental Hotel on the grounds of Central China Television’s new headquarters has caught fire and been destroyed. The cause of the blaze at the 40-story luxury hotel is unknown - CNN is reporting that there are no injuries...
Feb. 10 - Here is how China has
Posted on February 09, 2009Feb. 10 - Here is how China has been reported across the region over the past week. China Overtakes U.S. in January Car Sales Boon or bane? China has overtaken the United States in terms of car sales when the country snapped up 790,000 vehicles last January compared to the United State?s 656,976...
January?s Inflation Rate Slows to 1 Percent
Posted on February 09, 2009Feb. 10 - China?s Statistics Bureau announced that inflation rate for January slowed to 1 percent, the slowest pace in more than two years while producer prices dropped by 3.3 percent. Last year, China’s CPI for December increased by 1.2 percent...
China?s Millionaires of the Past
Posted on February 06, 2009Feb. 6 - Every Friday afternoon we feature the best weekly article from China Expat that bridges the gap between China business and culture. We hope you?ll find it interesting and enjoyable. China’s Old Time Millionaires Liu Yongxing of Shanghai’s East Hope Group is worth three billion...
China Industry Report: Feb. 6
Posted on February 06, 2009Feb. 6 - This is a regular series of relevant industry news from around China. Wind power US-based Navajo Wind Energy acquired Chinese wind power company Guangzhou Jianianxiang. Through the acquisition, Navajo plans to boost the expansion of its wind power facilities in the world’s most populous country...
Revision on Technology Import Procedures Announced
Posted on February 05, 2009Feb. 6 - China’s Ministry of Commerce (MOC) has announced a new revision on the Administration of Technology Prohibited or Restricted from Import Procedures. Under the revised procedures, investigate privileges for import applications will be shifted from the MOC to the provincial and municipal commercial administration departments...
Harbin Preparing to Bid for Winter Olympics
Posted on February 04, 2009Feb. 4 ? With the Chinese government officially declaring they would not be bidding to host the 2018 or 2022 World Cup soccer finals, attention has now focused on a possible bid for the Winter Olympics in either 2018 or 2022. Li Zhanshu, the provincial governor for Heilongjiang, has stated that this month?s Winter University [...
PLA Troops Enter Beijing 60 Years Ago this Week
Posted on February 04, 2009BEIJING, Feb. 4 - In this year of important Chinese anniversaries, 60 years ago communist troops from the People?s Liberation Army took control of Beijing following the city?s occupation by Kuomingtang troops during the Chinese civil war. Following negotiations between the surrounded KMT forces and the PLA, KMT general Fu Zuoyi agreed to evacuate the city [...
China in the Light of her Development
Posted on February 04, 2009Feb. 4 - Chinese Premier Wen Jiabao has been in Europe attending the annual Davos World Economic Forum, as well as visiting with European leaders. The past two days have seen him in London, where a doubling of British exports to China within the next 18 months was agreed upon ? signs that China is [...
Guangdong to Allot US$4 Billion for Jobless Rural Workers
Posted on February 04, 2009Feb. 5 - The Guangdong provincial government has announced that it will allot more than RMB30 billion (US$4 billion) to aid jobless rural workers. The measure comes after China recently admitted that there was a huge jump in unemployment rates in the country with an estimated 20 million rural migrants now unemployed...
Textile Tax Rebate to Increase 15 Percent
Posted on February 04, 2009Feb. 5 - China will increase the tax rebate rate for textile and garment exports to 15 percent from the previous from 14 percent in an effort to support the textile industry and help exporters reduce costs. The State Council did not specify when the new tax rebate rate will be applied...
Invitation to Question China?s Ministers
Posted on February 03, 2009BEIJING, Feb. 3 - Chris Devonshire-Ellis, senior partner of Dezan Shira & Associates, will hold his annual meetings with various Chinese government ministers next week. China Briefing readers are invited to post questions for Chris to ask the ministers on their behalf...
UN Initiative in Greater Tumen Region to Boost Northeast China
Posted on February 03, 2009BEIJING, Feb. 3 - The Greater Tumen area ? the land mass that covers Northeast China, the Asian part of Russia, Mongolia, and North & South Korea ? has been earmarked for special development and investment incentive status by the United Nations. China has already made commitments to this by hosting its own Heilongjiang International Investment [...
China Approves Tax Breaks and Subsidies for Service Outsourcing Industry
Posted on February 03, 2009Feb. 3 - The State Council has approved tax breaks and subsidies to boost the growth of China’s service outsourcing industry. The measures will also include a series of tax and fiscal policies and intellectual property rights protection, reports Xinhua...
China Industry Report: Feb. 4
Posted on February 03, 2009Feb. 4 - This is a regular series of relevant industry news from around China. Solar power Chinese photovoltaic (PV) modules maker Suntech Power Holdings Co. Ltd. said it has entered into a supply agreement with US-based Standard Solar Inc. Under the terms of the contract Suntech will supply up to 5 megawatts of photovoltaic solar panels [...
Improvements Forecast For China?s Real Estate Market
Posted on February 02, 2009Feb. 2 - The Shanghai based real-estate expert, Sam Crispin, has just released his latest report on China?s nationwide property markets. Crispin is the current Chairman of the Shanghai British Chamber of Commerce and is a Chartered Surveyor. He is a fluent Chinese speaker and has been a resident of China since 1988...
U.S. Energy Company Seeks To Raise US$200 Million on Hong Kong Listing
Posted on February 02, 2009Feb. 2 - The U.S.-based energy company, China Hydroelectric, has announced plans to raise US$200 million through a listing in the Hong Kong stock exchange. Deutsche Bank and Merrill Lynch have been appointed to manage the sale, with a listing scheduled for three-four months time...
China in Asia: Feb. 2
Posted on February 02, 2009Feb. 2 - Here is how China has been reported across the region over the past week. Asia According To The Big Mac Index Invented by The Economist magazine in 1986, Burgernomics is a modern, fast food version to calculate the purchasing power parity (PPP) of a nation...
Lunar New Year Holidays Boosts Spending by 13 Percent
Posted on February 01, 2009Feb. 1 - China’s Ministry of Commerce announced retail sales increased by 13.8 percent to RMB290 billion during the Lunar New Year holidays despite the slowing economy, compared to the same period last year. The figure may point to a stable Chinese consumer sector that posted a 19 percent increase in retail sales last December...
Wen:China Considering New Stimulus Package
Posted on February 01, 2009Feb. 2 - China’s premier,Wen Jiabao, said that Beijing was considering another economic stimulus plan in addition to the initial US$585 billion package announced last November. Mr. Wen spoke during an interview with the Financial Times during the fifth leg of a European tour tasked to assure trade partners that China will cooperate with the west [...
Dezan Shira & Associates Hire Senior US Practitioners
Posted on January 30, 2009Dezan Shira & Associates has just announced the hiring of Hank Bourg to their Shanghai office. Hank joins Dezan Shira from LimeLife, Inc. a venture capital back startup based in Silicon Valley California (USA). He will initially be responsible for North American clients doing business in China...
Morgan Stanley: China Growth To Be 8% in 2010
Posted on January 30, 2009Stephen Roach, the Chairman of Morgan Stanley, in an exclusive interview with Xinhua at the Davos World Economic Forum yesterday, was bullish about China?s ability to emerge from the global recession, stating that China ?is to witness a robust rebound in 2010, with its GDP growth topping 8 percent?...
China Industry Report: Jan. 28
Posted on January 27, 2009Jan. 28 - This is a regular series of relevant industry news from around China. Wind power Bowen, a wholly-owned subsidiary of China’s CIAM Group Ltd. bought 45 percent of Huaneng Shouguang Wind Power for RMB84.03 million. U.S. Navajo Wind Energy Corp...
Beijing Lifts Restrictions for Foreigners Buying Real Estate
Posted on January 25, 2009Jan. 26 - The Beijing government has lifted restrictions on foreigners wanting to purchase real estate in an effort to lift the slumping property market. For this year, the residency requirement and house type limits that applies for foreign expatriates have been removed...
Salary Reduction Under China?s Labor Law
Posted on January 23, 2009By Chris Devonshire-Ellis Jan. 23 - With many businesses facing economic problems, the legal focus of business in China is shifting to an understanding of the implications of the new labor law, and specifically, its provisions for the reduction of staff salaries...
China to Top Global GDP League in 2009
Posted on January 23, 2009Jan. 23 - Our sister website, 2point6billion, has just run a piece on how Asian economies are likely to perform against those of the developed world this year. The recent news of the decline of China?s GDP to 9 percent for 2008, draws up interesting conclusions about the country...
Shanghai to Begin RMB Settlement Trials
Posted on January 23, 2009SHANGHAI, Jan. 24 - The local government said it is likely to participate in the second batch of yuan-settlement trials to deal with export slowdown and the instability of the U.S. dollar. Last December, the State Council announced it would use the Chinese currency yuan to settle trade payments in Guangdong province, the Yangtze [...
China Industry Report: Jan 24
Posted on January 23, 2009Jan. 24 - This is a regular series of relevant industry news from around China. Solar power Japanese solar modules maker Sun Dream Co. inked an agreement with Taiwanese Jumao Photonics Co. Under the terms of the contract Sun Dream will supply components to the Taiwanese company which will assembly the products and market them in China...
China Releases New Business Tax Rule for Service Contracts
Posted on January 22, 2009By Sabrina Zhang Jan. 22 - China?s State Administration of Tax (SAT) has passed a surprise amendment concerning the calculation of Business Tax (BT) effective January 1st. The new rule changes the BT levying principle and affects all overseas companies contracting labor and services to other companies or people based in China...
China in Asia: Jan. 23
Posted on January 22, 2009Jan. 23 - Here is how China has been reported across the region over the past week. China & India - Complementary or Contrasting? One might assume that China and India are mirror images of each other. They have different systems of government, attitude to FDI and excel in contrary economic sectors...
China?s GDP Grows by 9 Percent in 2008
Posted on January 21, 2009Jan. 22 - China’s National Bureau of Statistics announced that gross domestic product (GDP) grew by 9 percent to RMB30.067 trillion in 2008. This is the first time since 2003 that China reported less than double-digit growth and is the slowest growth since 2001, when GDP rate was 8...
China, HK Agree to Currency-Swap Deal
Posted on January 21, 2009Jan. 21 - Hong Kong and Mainland China has agreed to currency-swap deal as part of the central government’s efforts to help the economic development of the territory. The deal is expected to strengthen Hong Kong’s role as an international finance center and will provide liquidity support worth HKD227 billion or about US$29...
Mainland Investors to Access Taiwanese Stocks Soon
Posted on January 19, 2009Jan. 20 - Chinese mainland investors may soon be able to access Taiwanese stocks when bourses finalize cross-listing exchange traded funds (ETFs), says market experts. An agreement between the Shanghai and Taiwan bourses will be signed soon and this should be followed by talks on cross-listing ETFs...
Chinese Domestic Travel to Thrive During Holidays
Posted on January 18, 2009Jan. 19 - Chinese domestic travel during the Spring Festival holiday is expected to be robust despite global economic slowdown, according to the latest survey results. Market research company, Nielsen said that almost half of the respondents in an online survey said they would take up domestic tour packages during the holidays...
China Industry Report: Jan. 19
Posted on January 18, 2009Jan. 19 - This is a regular series of relevant industry news from around China. Solar power China plans to build its largest solar powerhouse connected to the grid in Qinghai’s Qaidam Basin. The construction of the 1 GW project will start in the latter part of 2009...
Perkowski Leaves ASIMCO
Posted on January 16, 2009Jan. 17 - Jack Perkowski; the founder and chairman of ASIMCO Technologies, has left the company. In a statement issued to ASIMCO employees, president and CEO Gary Riley announced that ?effective immediately,? Leland Lewis would replace Perkowski on the board and assume the role of non-executive chairman of the board of directors...
A Look at Recessions of the Past in China
Posted on January 16, 2009Jan. 16 - Every Friday afternoon we feature a round up of the best weekly stories and articles from China Expat that bridge the gap between China business and culture. We hope you?ll find them interesting and enjoyable. Remembrance of Chinese Downturns Past Luckily, one of the tourists recorded it on a cell phone...
Hong Kong Ranked World?s Freest Economy for 15th Time
Posted on January 16, 2009Jan. 16 - The U.S. Heritage Foundation and Wall Street Journal has ranked Hong Kong at the top spot of its 2009 Index of Economic Freedom for the 15th consecutive year, besting 183 countries based on 10 specific economic freedoms. Hong Kong scored 90, 0...
Former U.S. President Carter and Henry Kissinger Cement Nixon?s Operatic China Ties
Posted on January 16, 2009By Chris Devonshire-Ellis Jan. 16 - In a little heralded diplomatic event this week, former U.S. President Jimmy Carter and statesman Henry Kissinger met with President Hu Jintao and Premier Wen Jiabao in Beijing to celebrate the 30th anniversary of U...
Alert! New RSS feed for China Briefing News
Posted on February 25, 2008Please note that as of today, February 26, China Briefing will be using a new rss feed. To continue to receive China Briefing updates, news and analysis, please change the feed in your rss feed reader to www.china-briefing.com/news/feed. This will be the last entry on the www...
China M&A activity unlikely to slow down, economy appears immune from U.S. recession
Posted on February 24, 2008SINGAPORE, Feb. 25 ? Chris Devonshire-Ellis, Senior Partner of Dezan Shira & Associates, speaking at the Asia Business Forum Annual China M&A Conference in Singapore today said that he felt the Chinese economy would withstand any U.S. recession and that M&A activity would continue in the PRC...
Dezan Shira announce new offices in Vietnam and India
Posted on February 22, 2008Firm?s expansion into Asia a result of increasing FDI investment into other locations SHANGHAI, Feb. 22 - Dezan Shira & Associates, the specialist foreign direct investment practice, announced today the establishment of two new offices in India, and the new opening of a Vietnam practice with offices in Hanoi and Ho Chi Minh City...
Central bank issues RMB102 billion in attempt to absorb excess liquidity
Posted on February 22, 2008The People’s Bank of China on Thursday issued two batches of central bank bills totaling RMB102 billion in its the latest attempt to clean up excess liquidity. According to Xinhua, the move is intended to maintain stable growth in the money supply and steady market interest rates...
Joint ventures in China as commercial investment sense
Posted on February 20, 2008JVs still a valid legal vehicle for use in China manufacturing By Chris Devonshire-Ellis Feb. 20 - Joint Ventures (JVs) were the first legal entities to be promulgated and available for foreign direct investment into China and remain the vehicle of choice for many larger investments...
FDI in China more than doubles in January
Posted on February 19, 2008Feb. 20 - China used US$11.2 billion in foreign direct investment in January, a growth of 109.78 percent over the same period of last year, the Ministry of Commerce said Tuesday. This is a result of strong investor confidence in China?s economic growth...
China, India, Vietnam foreign direct investment discussions - Singapore
Posted on February 18, 2008Complimentary meetings to discuss FDI available February 27-29 Chris Devonshire-Ellis, the Senior Partner of Dezan Shira & Associates, and publisher of China Briefing, India Briefing, 2point6billion.com and the brand new Vietnam Briefing title is in Singapore next week speaking at the Asia Business Forum ”China Mergers & Acquisitions” conference, and will be available following this, from February [...
CPI predicted to rise 7.5 percent in January
Posted on February 18, 2008Jan. 18 - The Bank of China forecast a minimum 7.5 percent rise in the January Consumer Price Index (CPI), mainly fuelled by rising food prices and the worst winter weather in decades. The bank said in a report issued Friday that the CPI would rise between 5 to 7 percent in the first half this [...
Waging an ?internet war? in China
Posted on February 17, 2008Abuse of public forums designed to defame plaintiffs slowly being reined in Feb. 17 - In an ongoing trend in China, large numbers of legal disputes, which should be the preserve of the courts, are being aired via public forums. At China Briefing for example, we are involved with several litigation suits over the inappropriate use [...
Politicizing the Beijing Olympics a flawed concept
Posted on February 15, 2008Political protests in such forums also a denial of free speech By Chris Devonshire-Ellis With Steven Spielberg?s decision to resign as advisor to the Beijing Olympics Opening Ceremony over the civil war in Darfur, coming on top of the British Athletics Federation bungling over the IOC?s clause 51 and the comments by marathon champion Haile Gebreselassie [...
Chinese New Year retail sales up 16 precent
Posted on February 13, 2008Consumer spending up despite poor weather conditions Feb 14 - China’s retail sales, the country’s key gauge of consumer spending, surged 16 percent during the weeklong Spring Festival holiday despite the worst winter storms in 50 year buffeting the country...
Government increases Central Regions Infrastructure spending to USD67 billion for 2008
Posted on February 12, 2008Policy shift targets rural areas instead of developed coast for infrastructure spending, Guangdong based low cost manufacturers relocating February 12th - The central government has topped up its investment budget for rural areas by an increased RMB100 billion ($13...
Common misperceptions about China
Posted on February 12, 2008By Chris Devonshire-Ellis Feb. 13 - During the build up to the Olympics, China will come under increasing scrutiny from the world press and tourists. Many of them may not be familiar with China and some will have misperceptions about the country based on old stories or misunderstandings...
Beijing Olympics becoming politicized, UK Olympic Association backs down after stand-off with athletes
Posted on February 12, 2008Section 51 of Olympic Charter likely to be a key issue of interpretation Feb. 13 - In the second potentially embarrassing event to hit the Olympics this week it has emerged that the British Olympic Association has had to back down from proposed clauses it had wanted to insert into athletes contracts to prevent them [...
Direct sky casino flights planned between Hong Kong and Las Vegas
Posted on February 12, 2008In-flight gambling proposed for Venetian Las Vegas ? Venetian Macao-linked route Feb. 13 - Plans have been announced in the Las Vegas Review Journal to launch VIP flights between Hong Kong and Las Vegas to capture some of the high roller market operating in Macau and its American counterpart...
China?s commodity ration coupons
Posted on February 11, 2008China began issuing commodity ration coupons (known as liang piao) in the 1950s, with specific coupons issued for foodstuffs, fuel, even bicycles. Without them you were not permitted to purchase the goods. The system, which was only finally abolished in 1995, ensured that under the collective system, everyone got their fair share...
Beijing To Increase FDI in National Power Sector by Liberalizing Regulatory Environment
Posted on February 10, 2008National infrastructural investment rather than regional profit taking the key to policy change By Chris Devonshire-Ellis February 11th - Beijing is set to fast track regulatory changes to permit increased foreign investment in the countries stressed national and regional power grid network following the chaos of the winter?s snows, our contacts close to the NDRC explained yesterday...
Olympic Marathon World Record Athlete Threatens Beijing Air Quality Pull Out
Posted on February 10, 2008Haile Gebresellassie an asthma sufferer, may not participate February 11th - The current Olympic World Record holder for the Marathon, Ethiopian long distance runner Haile Gebresellassie stated he may pull out of participating in this summers Beijing Olympics if the air quality remains poor...
Ex PBOC Governor named Head of China?s National Pension Fund
Posted on February 10, 2008Responsible for USD70 billion national social security By Chris Devonshire-Ellis February 11th - Dai Xianglong, the ex Governor of the Peoples Bank of China and the current Mayor of Tianjin has just been named as the new Head of China?s national social security fund...
Year of the Rat Spirit Prevails As China Overcomes Its Weather
Posted on February 07, 2008Old Communist ideals triumph over freezing adversity By Chris Devonshire-Ellis Feb 8th - China’s long ten days of extreme snowy conditions finally relented as a massive coordinated effort by the national and regional Governments together with the military enabled the nation to enjoy a peaceful new year...
Beijing University Professor Named As World Bank Chief Economist
Posted on February 07, 2008Greater economic understanding of developing countries, Africa, seen as main benefits By Chris Devonshire-Ellis Washington, February 8th ? Justin Lin Yifu, of Beijing University China Center for Economic Research, has just been named Chief Economist of the World Bank , the first time a Chinese national has held the position...
Practical Accounting - It?s Really All In The Numbers
Posted on February 06, 2008February 7th - It’s always good to meet other industry professionals, and we all love a bit of media attention. So it was when our Senior Partner, Chris Devonshire-Ellis, bumped into Howard Wolosky, Editor-in-Chief at America’s industry standard “Practical Accountant” (www...
Greetings For The Chinese New Year of the Rat !
Posted on February 05, 2008February 5th - The Chinese New Year of the Rat begins at midnight on Thursday 7th February, with most people in China celebrating New Years Eve on Wednesday evening. All staff at China Briefing and Dezan Shira & Associates wish all our readers and clients around the world the very best for the New Year...
Power Chaos As More Snow Hits Central, Eastern & Southern China
Posted on February 04, 2008Chinese New Year passenger travel discouraged in favor of energy supplies ? more heavy snowfalls forecast February 4th - China continues to have problems with its worst winter weather for 50 years as further heavy snow hit already stressed cities and towns in much of the country...
ShanghaiExpat.com reported to Chinese Network Security Police
Posted on February 04, 2008Libel suit may follow - China based social websites increasingly under fire for publishing inappropriate content February 5th - The social expatriate website Shanghaiexpat.com has had a legal case against it lodged with the network security division of the Public Security Bureau in Shanghai for libel and ?disrupting social harmony? it has been [...
Establishing FICEs in China: Registration procedures explained
Posted on February 04, 2008Feb. 5 - Since June 2004 China has permitted foreign direct investors to establish fully operational, 100 percent foreign owned retail and trading companies that can buy and sell in China, holding their own import-export licenses. In this article, we will look at the pre-registration stage of the application process...
Common mistakes made during M&As
Posted on February 03, 2008Feb. 4 - Today we excerpt part of an article that appears in the China Briefing’s new Technical Guide to M&A. With more and more multinationals consider mergers and acquisitions as a means of entering the Chinese market, many are finding out the hard way that mistakes and misperceptions about M&A deals in China can [...
Chinese rubles
Posted on February 01, 2008China lost control much of the northern territory of Manchuria (latter day Heilongjiang, Liaoning and Jilin provinces) from 1895 until the end of World War II and the defeat of the Japanese. The area was highly volatile and controlled via a series of treaties by both Russia and Japan...
Corporate America?s China plus one strategy
Posted on January 31, 2008By Chris Devonshire-Ellis LOS ANGELES, Jan. 31 - Traveling around California and Nevada these past two weeks (you guessed it, Las Vegas has got to be an essential stop on any self-respecting conference go-er) it struck me in talking to American businesses large and small how much the Far East is changing in perception for the [...
37,000 reservists, 30 aircraft, 4,000 rocket launchers and 7,000 anti-aircraft guns
Posted on January 31, 2008China?s meteorological bureau guarantees good weather for Olympics BEIJING, Feb. 1 - Beijing?s Meteorological Bureau announced yesterday at a Beijing Olympics Organizing Committee meeting that they are fully prepared to take control of the most unpredictable element in sports ? the weather...
China to strengthen management of cross-border capital flows
Posted on January 30, 2008BEIJING, Jan. 30 - China?s foreign exchange regulator said yesterday it will strengthen management of cross-border capital flows and short-term bank borrowing in 2008. The State Administration of Foreign Exchange will conduct checks on cross-border capital flows, paying particular attention to how foreign currency converted into yuan is used in China...
China struggles to recover from worst winter storm in 50 years
Posted on January 29, 2008By Andy Scott SHANGHAI, Jan. 29 - The biggest winter storm to hit many parts of the eastern China in 50 years brought down buildings, closed train stations and left millions stranded throughout the country just days ahead of the biggest holiday season in China...
Can China and India save the world economy?
Posted on January 28, 2008Jan. 29 - As fears of a U.S. recession begin to bite - Asian stock markets crashed yesterday by over 7 percent - we reproduce a story by Agence France Press on the issue. Quoting our own Senior Partner of Dezan Shira & Associates, as well as other informed names such as George Soros, Zhang Ming and [...
Asian stocks slide amid global recession concerns
Posted on January 28, 2008By Andy Scott SHANGHAI, Jan. 28 ? Asia stocks tumbled Monday as traders took their cues from a faltering U.S. economy and a Wall Street that lost ground on Friday following a two-day rally. Following last weeks ups and downs, investor sentiment remained fragile throughout the region as stocks slumped on renewed fears of a global recession...
New railways to further link Xinjiang to Central Asia
Posted on January 27, 2008Jan. 28 ? Construction will hopefully start this year on two railways linking China’s westernmost Xinjiang Uygur Autonomous Region with the central Asian nations of Kyrgyzstan, Uzbekistan and Kazakhstan, Xinjiang government sources said. The railway, expected to be completed within the year, will link Korgas on the China-Kazakhstan border with China?s inland railways...
China to build 97 airports in next 12 years
Posted on January 27, 2008Jan. 28 - Xinhua is reporting that China announced plans Saturday to build nearly 100 new airports by 2020 to cater for soaring demand. The proposals will mean eight out of every ten residents will live within 100 kilometers of an airport within 12 years, the General Administration of Civil Aviation said...
1927 Guangzhou government war bond
Posted on January 25, 2008Jan. 25 - This bond was issued by the Finance Minister of the Kuomintang Party, which was then trying to establish a national government based in Guangzhou prior to the establishment of the Republic of China (click photo to enlarge). Valued at 10 yuan, and issued on February 1, 1927, it was intended to raise [...
U.S. recession fears not a global concern for China, India and the developing world
Posted on January 24, 2008SAN FRANCISCO, Jan. 24 - Chris Devonshire-Ellis, Senior Partner of Dezan Shira & Associates and publisher of China Briefing has just been interviewed by Agence France-Presse over concerns that the U.S. markets may well tip the world into a global recession...
Shanghai ROs have until Feb. 5 to apply for vehicle license plate free of charge
Posted on January 24, 2008SHANGHAI, Jan 24 - Shanghai?s Urban Transportation Administration Bureau has announced that any representative office established in Shanghai before January 7, 2007 has until February 5, 2007 to apply for a vehicle license plate free of charge. In the past, every representative office in Shanghai was entitled to one vehicle license plate...
China gives Southeast Asia?s poorest first time access to consumer goods
Posted on January 23, 2008By Andy Scott VIENTIANE, Laos, Jan. 23 - The Lao call them Jin, and since the late 1800s when groups of marauding Chinese on horseback called Haw Jin first arrived, they have been coming into Laos in search of fortune. Southeast Asia has long had Chinese immigrants, and from Thailand and Singapore to Indonesia and the Philippines, many [...
Preparation the key to transfer pricing documentation requirements
Posted on January 22, 2008By Steven Carey, Douglas Fone and Dr. Jian Li HONG KONG, Jan. 22 - The Implementing Regulations that have been in effect from January 1, 2008 for the new Corporate Income Tax Law are the result of several years of deliberation by the State Administration of Taxation on transfer pricing...
Dezan Shira & Associates global network billing reaches US$1.6billion in 2007
Posted on January 21, 2008Big Four staff moving to larger boutique firms as industry focus shifts LAS VEGAS, Jan. 22 - The Leading Edge Alliance firms yesterday revealed their total billing for professional services globally reached US$1.6 billion for 2007, an increase of 21 percent over 2006 figures...
China?s labor law ? The reality for overseas investors
Posted on January 20, 2008Drafting an employment handbook a sensible step to take to minimize liabilities and identify terms By Chris Devonshire-Ellis and Richard Hoffmann Jan. 18 - Much has been made of the new Labor Contract Law in China, with regrettably a lot of hot air from excitable “China” lawyers as well...
1926 China government lottery bond
Posted on January 18, 2008The Republic of China issued this 5 Dollar Second Nationalist Government Lottery Loan bond in 1926 to raise money to finance improvements in the Port of Whampoa, near Guangzhou (click on photo to enlarge). Rather than pay interest, and to guarantee investment from the natural gambling instincts of the Chinese, the bonds were automatically entered [...
Battling rampant inflation, Beijing caps prices on food commodities
Posted on January 17, 2008Food coupons may be re-introduced BEIJING, Jan 18 - The National Development & Reform Commission announced that from today prices on basic commodities such as grains, meat, milk, edible oil, eggs and liquefied petroleum gas would be curbed with immediate effect...
China looks to Southeast Asia, but roads continue to hinder development
Posted on January 17, 2008By Andy Scott VIENTIANE, Laos, Jan. 17 - Trade between China and the Association of Southeast Asian Nations has boomed in the past 15 years, growing more than 20 percent a year, reaching US$160 billion last year. The two sides are each other?s fourth-largest trading partners...
Hong Kong moves towards provision of Islamic financial services
Posted on January 16, 2008Possible changes in tax law to facilitate entry of Islamic fund market By Chris Devonshire-Ellis HONG KONG, Jan. 16 - Hong Kong?s Financial Secretary, Joseph Tsang, yesterday committed to the development of Hong Kong as an Islamic financial centre by seeking to attract more Muslim investors...
?Can you afford it?? rather than regulatory barriers now join the issues for entering the China market
Posted on January 16, 2008China Mobile suspend talks with Apple over selling iPhone in China China Mobile has announced they have just broken off talks with Apple over the sales of the iPhone into the Mainland China market. The deal?s bone of contention essentially is over the industry practice of mobile operators giving equipment suppliers a cut of the traffic [...
Oil imports up 12.4 percent to 163.17 million tons in 2007
Posted on January 14, 2008Jan. 14 - China’s crude oil imports rose 12.4 percent in 2007 over the previous year to a record 163.17 million tons, according to customs figures. Crude oil imports for 2006 were 138.8 million tons, representing an increase of 16.9 percent from the previous year...
Indian Prime Minister Manmohan Singh visits Beijing
Posted on January 13, 2008BEIJING, Jan 14 - Indian Prime Minister Dr. Manmohan Singh began a three-day State visit yesterday arriving in Beijing for talks with Chinese President Hu Jintao. The visit, the first State visit by a sitting Indian Prime Minister for five years, comes during rapidly growing bilateral ties between the two countries, and follows Sonia Gandhi’s [...
Chinese-educated foreign dispute resolution mediators now sitting in Chinese courts
Posted on January 13, 2008Jan, 14 - In a demonstration that the Chinese Ministry of Justice is actively engaging with Western concepts of judicial management and dispute resolution, and as a result of on-going educational and instructional support from the American and British governments in particular, we can report that a 27-year-old British-South African woman, Katie Kinahan, has been [...
Chinese Qing Dynasty railway company share certificate
Posted on January 11, 2008This is an un-issued share certificate for the Yunnan-Sichuan Tang Yue Railroad Company. It was due to be issued in 1909 during the short reign of the last Chinese Emperor. The issue was approved by the provincial governors of Yunnan and Guizhou, and was to be 20 million shares in blocks of 5 Liang ? [...
China to introduce resource tax system in 2008
Posted on January 11, 2008Details of a new resource taxation system will be announced this year, an official with the State Administration of Taxation said on Thursday. While the system is still being finalized, it may include a shift to taxation by price instead of volume and an expansion of the category of taxable resources Xinhua reports...
The politics of manufacturing: China loses its luster
Posted on January 10, 2008By Andy Scott Jan. 10 - This past year was China?s year, 2008 may be it again, what with the Beijing Olympics in August, but there is no denying that 2007 was the year of China. Unfortunately, for much of the world, that meant story after story about defective and contaminated products ? from toys and tires [...
China?s national highway system to focus on rural roads in 2008
Posted on January 09, 2008Jan. 9 - China will build at least 5,000 km of expressways this year, bringing the total length of expressways in the nation to almost 60,000 km by the year-end, Minister of Communications Li Shenglin said on Saturday. According to the Ministry of Communications, there are currently 53,600 km of expressways traversing the country, of which, 8,300 [...
China eyes Mongolia?s resources
Posted on January 08, 2008By Joyce Roque Gaily bedight, A gallant night In sunshine and in shadow, Had journeyed long, Singing a song, In search of El Dorado. -Edgar Allan Poe, El Dorado The Land of the Khans Jan. 8 - Through much of its history, Mongolia had been subject to the whims of its two giant neighbors...
China to reform State Council: Large, combined ministries endorsed
Posted on January 07, 2008China will move to create a ?big ministries system? (?????) at its upcoming legislative session, combining a number of central-level ministries, commissions and departments to facilitate better formulation and execution of policy. Three ?super-ministries? will be endorsed by the First Plenary Session of the 11th National People?s Congress, due to open on March 5, reports Wily [...
Playing on IPR fears: The China domain name registry scam
Posted on January 06, 2008You may have received a very helpful looking email lately alerting you to the fact that a Chinese company was attempting to register your domain name here in China, and should you take action quickly, you could not only stop this from happening, but also properly register your domain name and protect your copyright in [...
1918 Chinese Northern Warlord issued coins
Posted on January 04, 2008The first half of the last century was a traumatic one for China, with much in-fighting and civil wars. Local warlords sprung up and the new government of the Republic of China set up by Chiang Kai-Shek exerted little control over much of the country...
China IPR clampdown targets karaoke royalties
Posted on January 03, 2008Jan 3 - As far as New Year’s resolutions go, China is looking to further crack down on intellectual property rights violations as is seeks to burnish its image as a IPR wasteland where anyone can borrow, beg or steal someone else?s hard earned intellectual property...
Shanghai opens new subway lines
Posted on January 02, 2008By Andy Scott SHANGHAI, Jan 2 - On December 29, the Shanghai Metro opened three new subway lines and the final four stations on the newly completed line 4, finally linking Puxi to Pudong on the southern section of the ring-shaped line. China Briefing’s photographers were on hand to explore the new editions to the city’s mass transit [...
Filing annual individual income tax returns in China
Posted on January 01, 2008By Smile Yu/Dezan Shira & Associates BEIJING, Jan. 2 - Early in 2008, expatriate employees in China with annual incomes in excess of RMB120,000 (about US$16,200) should complete an annual self-declaration to be submitted by the end of March ? at the latest ? for their income earned in the 2007 tax year...
January/February China Briefing now available online
Posted on January 01, 2008The January/February issue of China Briefing is now available online. The new issue includes a good look at some annual house-keeping that needs to be carried out at this time of year ? the renewal of corporate business licenses, the annual statutory audit, and individual income tax filings...
Spratly Islands RMB
Posted on December 28, 2007The Spratly Islands are a group of more than 100 small islands and reefs in the South China Sea. The islands, which are claimed in whole or in part by China, Taiwan, Vietnam, Philippines, Malaysia and Brunei, sit atop potentially large oil and gas deposits, are surrounded by rich fishing grounds and are located on [...
China to adjust import/export duties in an effort to conserve resources
Posted on December 28, 2007Dec. 28 - The government will adjust the import and export duties on some products from January 1 to save domestic resources and ensure better trade balance the government has said. Import duties on aluminum, refined copper and coal will be removed while the export taxes on some steel products, coking coal and coke will be [...
AmCham report: Business environment healthy, second- and third tier cities the future
Posted on December 27, 2007AmCham Shanghai recently released their 2007 China Business Report, a survey of AmCham?s corporate members and their experiences operating businesses in China. With one-third of all respondents having done business in China for 1o?20 years and seven percent for more than 20 years, the American companies that provided information for the report have significant experience operating on [...
Tianjin airport finishes Olympic Games expansion
Posted on December 26, 2007Dec. 26 - Tianjin airport has completed its large expansion project, including a new terminal and runway expansion, ahead of the 2008 Summer Olympic Games in Beijing. The new terminal building is five times larger than its predecessor with a handling capacity of 10 million passengers annually airport sources told Xinhua...
Season?s Greetings from China Briefing
Posted on December 23, 2007www.china-briefing.com www.india-briefing.com www.chinaexpat.com www.2point6billion.com www.dezshira.com
Chinese Silver Dragon coins
Posted on December 21, 20077 Mace and 2 Candareens China only began producing mass circulation silver coins in 1889 when the first modern coining press was imported into the country. As circulated coins until then had largely been the Mexican Silver Dollar, the new coins were based on these, but with Chinese styling...
Working together to make a difference: CSR in China
Posted on December 20, 2007With the season of giving upon us, corporations find themselves having to both consider employee bonus packages for their employees as well as some sort of charitable giving ahead of the end of the tax year. With this in mind, we have decided to publish an excerpt from our upcoming China Briefing 2008 Regional Business [...
M&As rise 18 percent through first 11 months of 2007
Posted on December 20, 2007Mergers and acquisition deals in China jumped 18 percent to more than 1,700 in the first 11 months of 2007 according to a PricewaterhouseCoopers report released on Wednesday. The total M&A deals were worth more than 80 billion U.S. dollars, up 25 percent from the same period a year earlier...
China?s audit regulations ? Filings shortly due
Posted on December 18, 2007Getting prepared for your annual audit inspection By Chris Devonshire-Ellis BEIJING, Dec. 19 - All foreign invested businesses in China are required to prepare annual financial statements, including balance sheets and income statements for their annual Chinese audit...
China lays its stake on Central Asia
Posted on December 18, 2007By Joyce Roque Dec. 18 - “The main thing is to make history, not to write it.” Otto Von Bismarck Much ado about oil Just like the spice trade of yore where adventurers dared flinging themselves in the uncharted world for the sake of country and above all for the business of spice, it seems China is no [...
Introducing?The Hong Kong Spin
Posted on December 18, 2007By Chris Devonshire-Ellis The architectural practice Aedas has proposed a massive new landmark to be erected on the site of Hong Kong?s old Kai Tak airport in order to mark the tenth anniversary of the handover of the territory to China. The proposed Hong Kong Spin is both a spectacular inclined observation tower overlooking the harbor [...
One million words and a partridge in a pear tree
Posted on December 17, 2007Rather more than just a blog, another year passes at China Briefing? Well, as many of our readers head off about now back home for Christmas and New Year festivities ? safe journeys to you all ? we?ll have a quick round up of the numbers here at China Briefing and what we did...
China 2008 annual renewals due: Are you up to speed?
Posted on December 16, 2007Government departments need your reports for various business license renewals By Chris Devonshire-Ellis It?s that time of year again folks, timed right at the end of the calendar year, and just when westernized business administrators are thinking of skiing holidays, the kids at home and New Years parties ? the atheist, yet pragmatic Chinese government insist we [...
China?s last imperial coin 1911
Posted on December 14, 2007This is the last cast square hole coin issued by China and the last coin issued by an Imperial dynasty. Emperor Pu Yi, also known by his reign title Hsuan-T’ung, ascended to the Chinese throne in 1908, aged three. By this time however imperial rule was already collapsing due to repeated wars, foreign interference and [...
China publishes implementation rules for new corporate income tax
Posted on December 14, 2007By Andy Scott SHANGHAI, Dec. 14 ? China?s State Council approved the long-awaited implementation rules for the country?s new corporate income tax law on December 6. The Detailed Implementation Regulations, prepared by the Ministry of Finance and the State Administration of Taxation, contains eight chapters and 133 articles...
Chen Deming to be the new Minister of Commerce?
Posted on December 13, 2007In light of Bo Xilai’s move to Party Secretary of Chongqing, as predicted by us two months ago, the guessing game is on as to the identity of the new Minister of Commerce to replace Mr. Bo. Our money is on Chen Deming. Having, until very, recently been in an advisory role at the National [...
Financial credit and due diligence checks on individuals in China
Posted on December 13, 2007By Chris Devonshire-Ellis We are often asked as a firm to establish the facts of an individual?s reputation in China, and whether they have any criminal record or have faced other legal issues while acting as company officials, directors or shareholders...
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Is a child fathered out of wedlock by an American diplomat to a foreign women on foreign soil entitled to US Citizenship by jus sanguinis?
This is a very tough situation your friend is in. It is difficult to know the ex...
Is it libel to write blog posts and/or online reviews about a local business that defames one's reputation?
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