China's 11th Five Year Plan

April 2006 China Briefing

This issue highlights the detail of China's new National 5 year plan following Ministerial level meetings held by Chris Devonshire-Ellis, Senior Partner of Dezan Shira & Associates, and Publisher of "China Briefing" with various Chinese Government bodies to discuss and be briefed upon matters of policy and the implementation of this. This issue covers details of Chinas foreign investment policy in addition to replies given to specific questions asked about tax, regulatory and other development issues that affect foreign investment in China on a national basis. The main article, "De-Briefing Session Following the 11th Five Year Plans Introduction by the Chinese National Peoples Congress" features private meetings held by Chris Devonshire-Ellis with Wang Li, the Vice Commissioner of the State Administration of Tax, and discussions on foreign and domestic enterprise income tax unification, foreign nationals in China and their worldwide income tax liabilities, China property tax reform, vehicle consumption tax, and a proposal to alter the audit fiscal year end reporting structure. Devonshire-Ellis also met with Liao Xiaoqi, the Vice Minister of the Ministry of Commerce, and discusses matters such as Hong Kong CEPA applications, and Chinas and Hong Kongs roles within ASEAN. This is followed by a briefing from Sun Songpu, Chinas Vice Minister of Customs, and discussions concerning co-location customs clearance between China, Hong Kong, Macao and Guangdong Province, China's growth in customs duty revenues, the proposed Vietnam / Yunnan free trade area, increased taxes on energy intensive products, the standardization of Chinas national customs treatment, and the new Chinese customs declaration forms. Devonshire-Ellis also met up with Zhu Zhixin, Vice-Director of the China National Reform & Development Commission, to discuss basic tenents of Chinas new five year plan and the strategic thinking behind this. Zhu is an advisor to Hu Jintao, the Chinese Premier. Meetings with the China Security Regulatory Commission are also discussed with Tu Guangshao, the Vice-Chairman, over matters concerning Hong Kongs role as a centre for Chinese listings, Chinese competencies when trading futures on international markets, the launch of QDII and the raising of Chinas QFI Investment ceiling. Chinese real estate investment funds and Chinese corporate governance and enforcement were also discussed by Devonshire-Ellis with the SRC. Finally, discussions were held with Beijings Vice Mayor Lu Hao, over Beijings economic development and the plans for the 2008 Olympics.