By Dezan Shira & Associates
Editor: Samuel Wrest
China is expected to increase its wind power installed capacity from the current 149 gigawatts (GW) to 495 GW by 2030, according to a recently released report from GlobalData. This substantial rise would represent a Compound Annual Growth Rate (CAGR) of nine percent and is in line with plans laid out in China’s 13th Five Year Plan, which targets an increase in domestic wind capacity to 250 GW by 2020.
China already dominates the global wind energy market. Last year, the country overtook the EU to become the industry world leader by adding 30.5 GW to its overall installations – fully half of what was installed worldwide in 2015. However, while wind power is undeniably a rising segment of the Chinese economy, the sector has experienced a sharp decrease in foreign participation over the past ten years. Despite having an attractive incentive framework for investment in place, 98 percent of the market is now controlled by domestic players compared to approximately 40 percent in 2006. With more growth predicted for the future, the question now posed to foreign alternative energy companies looking at China as a potential production base is how, and indeed if, to enter this dynamic yet seemingly unwelcoming market.
By Adam Livermore
Partner, Dezan Shira & Associates
A sound network security system is an important component within the operations of any foreign company in China, as it is in any other country. Especially for small and medium-sized companies (SMEs), who often lack the IT resources of larger companies, to protect a business from today’s sophisticated internet threats can be a challenging task. As a network security system usually consists of many parts, investors need to make sure that all components work together in order to minimize maintenance and improve the overall security level.
MOHRSS to Cancel Unnecessary Certifying and Stamping Procedures without Legal Basis
The Ministry of Human Resources & Social Security (MOHRSS) recently issued the Opinions on Improving Public Services in the Field of Human Resources & Social Security, which aims to avoid the issuance of unnecessary certificates and to improve service quality. According to the Opinions, human resources and social security departments at all levels will be required to execute a comprehensive examination of the certifying materials and procedures necessary to handle public service matters, and to cease all certifying and stamping procedures that are not stipulated in the laws or regulations. In addition, the Opinions also sets out to fully implement the cross-regional and cross-service use of the social security card in dealing with human resources and social security matters, and eventually to realize the universal application of an all-in-one social security card across the country by the end of 2017.
By Dezan Shira & Associates
British payment systems firm VocaLink has formed a five year deal with China’s UnionPay, the only domestic bank card issuing company in China and one of the biggest card issuers in the world. With over 5.4 billion UnionPay bank cards currently in circulation, the deal will greatly improve Chinese bank account holders’ international connectivity, granting access to Europe and the UK’s vast ATM network.
As China’s banking system continues to liberalize and become more international, foreign investors have increasing flexibility over the management of funds. However, China’s banking system remains complex, and many restrictions apply to foreign investors. The following article lays out the steps and options foreign investors must consider when opening a Chinese bank account.
The latest issue of China Briefing Magazine, titled “China Investment Roadmap: the Elderly Care Industry“, is out now and available to subscribers as a complimentary download in the Asia Briefing Bookstore through the month of May.
- Golden Years: An Overview of China’s Elderly Care Industry
- Investing in China’s Elderly Care Services Industry
- Challenges Ahead for Investment in China’s Elderly Care Market
By Emerging Strategy
The transformative effects of e-commerce and the opportunities it presents across various industries and markets have been well documented. For most companies, developing an e-commerce strategy is no longer merely a consideration or an experiment, but integral to their business. Compared to many other industries, however, the automotive aftermarket’s e-commerce activity is less prominent. This is largely due to the complex nature of the industry’s products, supply chains, and channel relationships. Innovative players who can overcome these challenges have the potential to capitalize on a growing but underdeveloped service that could disrupt the way this industry conducts business.
By Dezan Shira & Associates
Editor: Jake Liddle
China’s new Online Publishing Service Administrative Rules became effective on March 10, 2016. The law, which aims to “regulate the criteria of and promote the healthy development of internet publishing services”, has already curbed the online activity of several Western MNCs – including Apple’s iTunes and Disney’s DisneyLife – but what wider implications do the rules have for internet censorship in China?
The new online publishing rules form part of President Xi Jinping’s broader efforts to utilize China’s so called ‘Great Firewall’ to control the flow of online information. In a meeting held in April, China’s State news agency Xinhua quoted Xi as saying: “China must improve management of cyberspace and work to ensure high-quality content with positive voices creating a healthy, positive culture that is a force for good”. With 25 percent of internet sites currently blocked in China compared to the 14 percent before Xi came into power, it is evident that the country’s new approach is effective.
New Tariff Policy for Cross Border e-Commerce Likely to be Postponed
On May 10, Shanghai Securities News reported the possibility of adjustments to a new cross border e-commerce tariff policy brought into effect last month. The report suggests postponement of the new cross border e-commerce tax policies and restrictions imposed on foreign exporters for one year. During the expected transition period, cross border retailers could prepare for the changes brought by the new round of policy revision. This is the latest in a number of adjustments that have already been made to online import restrictions. Several ministries including the Ministry of Commerce, the General Administration of Customs, and the Ministry of Finance have conducted research on the effects of the policy on cross border e-commerce, inquiring with third-party online e-commerce platforms and working on changes to the current rules.