Author Archives: China Briefing

The Long and Winding Road of IPR Protection in China

Posted on by

By Mary Field

SHANGHAI — A sign at the entrance to the Han City Market in downtown Shanghai reads: “Enhance the protection of intellectual property rights to legitimize and standardize the order of the market economy.” The irony of the message is obvious to anyone who has set foot inside Han City, better known as “the Fake Market,” where the majority of goods on sale are counterfeit, including everything from Longchamp handbags, to Apple accessories, to OPI nail polish. Markets like Han City are emblematic of the issues faced by international brands in China, which remains the largest manufacturer of counterfeit goods worldwide.

The tools used by China for the protection of intellectual property are the same as in most other countries—patents, copyright, and trademarks—but their effectiveness has historically failed to inspire confidence among foreign investors.  This is poised to change, however, in light of China’s new Trademark Law (in effect since May 1, 2014), which has streamlined trademark application procedures, expanded the scope of trademarks and improved the opposition procedure. Continue reading…

China Extends Export Tax Rebate Scheme

Posted on by

SHANGHAI – China’s General Administration of Customs, Ministry of Finance and State Administration of Taxation jointly announced that they will be expanding the scope of the national export tax rebate pilot program to cover eight ports starting from September 1. The purpose of this is to encourage exports through Shanghai’s Yangshan Free Trade Port, and is also hoped to incentivize exports amidst the country’s slowing foreign trade sector. Export tax rebates refer to the refunds of indirect taxes, including value-added, business and consumption taxes, paid by exporting businesses in the production and distribution of goods and services. Continue reading…

The Competitive Advantages of Manufacturing in Vietnam

Posted on by

SHANGHAI — ­The state of manufacturing in Vietnam today so closely parallels that of China ten or more years ago—when low-wage, low-tech, low-added value manufacturing acted as a magnet for FDI into the country—that many foreign investors with existing China operations are actively inquiring about the payoffs of moving to Vietnam. As China moves further up the value chain in manufacturing, Vietnam has been well-poised to pick up the slack. As a result, Vietnam’s manufacturing sector grew at a compound annual growth rate of more than 9 percent between 2005 and 2010 and today accounts for 25 percent of GDP. Continue reading…

Industry Focus: Importing Wine into China

Posted on by

By Riccardo Benussi and Eunice Ku, Dezan Shira & Associates

SHANGHAI – Foreign wine in China no longer makes the headlines. The spotlight is now on much larger trends: foreign wine has been pouring into China, growing sevenfold over the last six years and increasing to 19 percent of the total domestic market. As a result, almost one out of five bottles opened in China is now imported. Translated into numbers, U.S. exports of wine to China were close to 23 million bottles in 2013, up from practically none a decade earlier. French wine is still the main player in this market, where sales totaled US$1.15 billion in 2013 and accounted for nearly half of all wine imports. As of April 2014, China is the eighth largest export market for Argentine wines in terms of value, up from 18th a few years back; Chile’s wine exports to China increased 157 percent in March 2014. Italian wine surprisingly counted for only 6.5 percent of the market in 2013. However, industry insiders have heard through the grapevine that the presence and marketing of Italian wine in China is finally on the rise, aiming at sales worth almost US$10 billion over the next four years. Continue reading…

Haikou: An Emerging Industrial City

Posted on by

By Rainy Yao

Source: leadtochina.comOften referred to as the “Coconut City,” Haikou is a prefecture-level city situated on the northern coast of Hainan known for its crystal waters and coconut trees. Haikou literally means “sea mouth”—i.e. the place where rivers and streams meet before joining the sea and accordingly was viewed by its ancient inhabitants as being blessed by Heaven. Rainy Yao from Dezan Shira & Associates takes a look at how this “paradise” is fast becoming the economic and industrial center of Hainan Island.

Economic Overview

Since the Song Dynasty, Haikou has been a trading port and main courier station to the countries to the southeast of China. Following the establishment of the Hainan Special Economic Zone in 1988, Haikou began vigorously promoting itself as China’s Outstanding Tourism City, with an advanced service sector. In 2005, the city established “Haikou Industrial Day” and rolled out various preferential policies to support the development of industry. Continue reading…

China Regulatory Brief: Paperless Clearance System Implemented & SME Tax Registration Streamlined

Posted on by

China Cancels Three Administrative Approvals for Small and Micro-sized Enterprises

China’s State Council recently released the “Circular on Cancellations and Adjustments for Several Administration Approvals (Guo Fa [2014] No.27)”, which took effect on July 22, 2014. The Circular abolishes the need to apply for administrative approvals pertaining to three preferential tax policies designated for small and micro-sized enterprises, including:

  • The approval for encouraged foreign-invested projects,
  • The examination and approval for small and low-profit enterprises to enjoy the preferential corporate income tax (CIT); and
  • The approval for eligible enterprises engaged in service and foreign trade industries and which hire laid-off workers to enjoy tax reduction or exemption.

These preferential policies will automatically apply to qualified enterprises. Continue reading…

Law Abiding Foreign Executives Can Rest Easy In China

Posted on by

Directors and officers liability insurance is valid in China to cover legal costs and other expenses while under investigation

Op-Ed Commentary: Chris Devonshire-Ellis

In the wake of the prison sentence handed down to ChinaWhys Founder Peter Humphrey, much commentary has been alluded to that suggests that foreign executives in China are now “nervous” about working in the country. These reports are erroneous.

Foreign direct investment into China is booming, and increasing numbers of executives want to place a “China” position on their international CV. So how high are the risks for foreign executives in China? The answer is, for those who abide by the law, very low. Continue reading…

China’s Domestic Consumer Market in 2020

Posted on by

By Matthew Zito and Eunice Ku, Dezan Shira & Associates

SHANGHAI – Domestic consumption, particularly among the middle class, is expected to be a major factor in the US$4 trillion of growth forecasted for the Chinese economy over the next decade. Rising wage costs in China may be prompting companies to relocate their manufacturing operations elsewhere, but few are leaving the country entirely—opportunities for growth in the domestic consumer market are simply too lucrative to pass up. Below, we forecast what China’s consumer market will look like in 2020, by which point China will have surpassed the U.S. as the world’s biggest economy, with an estimated gross domestic product of RMB 100 trillion (US$16 trillion). Long before then, China is predicted to become the world’s largest retail market by 2016, at a value of around US$4.2 trillion. Continue reading…

Asia Briefing Bookstore Catalogue 2013