By Dezan Shira & Associates
Li Hui, Chinese Ambassador to Russia
The Chinese government has made statements concerning its view of the developing world, as China’s Ambassador to Russia, Li Hui, spoke on Wednesday at a government news conference organized in response to the results of the 19th Chinese Communist Party Congress in October.
The two countries – leading diplomatic and military rivals of the US – have been pursuing greater relations in past years as they both embark on initiatives to modernize their military and assume a more assertive role in international politics.
By Alexander Chipman Koty and Zhou Qian
Guangdong province, China’s manufacturing heartland, has announced new measures to attract foreign investment.
On December 1, the Guangdong provincial government issued a report delineating 10 policies to expand the province’s openness to foreign investors and foreign capital.
The measures are in support of the State Council’s Measures to Expand Opening-up and Actively Utilize Foreign Investment (Guo Fa  No. 5) and the Measures to Promote Foreign Capital Growth (Guo Fa  No. 39). They include policies to improve Guangdong’s business environment, promote fair competition between foreign and domestic companies, expand market access, and offer investment incentives.
By Srinivas Raman
China is undergoing an environmental paradigm shift, transitioning from the world’s top polluter to global leader in the fight against climate change. In recent months, China has dramatically strengthened the enforcement of its environmental regulations as it pursues its goal of promoting ‘ecological civilization’, and has inspected and fined countless businesses in the process.
Many areas in China suffer from severe levels of pollution, and the central government under the leadership of President Xi Jinping has initiated several crackdowns on heavily polluting industries that are non-compliant with current environmental regulations. These measures have affected business as usual in various sectors and have had rippling effects throughout the economy.
Tax incentives for advanced technology service enterprises rolled out nationwide
The Ministry of Finance (MOF), the State Administration of Taxation (SAT), the Ministry of Commerce (MOFCOM), the Ministry of Science and Technology, and the National Development and Reform Committee (NDRC) jointly released a circular on November 2, 2017, to formally roll out the tax incentives for advanced technology service enterprises (ATSE) nationwide.
According to the circular, corporate income tax (CIT) for a qualified ATSE will be calculated at the preferential tax rate of 15 percent, instead of the standard 25 percent rate. Employee education expenses incurred by a qualified ATSE can also be deducted from taxable corporate income, for up to eight percent of the ATSE’s total salary and wage expenses. Further, the portion exceeding eight percent may be carried to the following tax years for CIT deduction.
Our weekly round up of other news affecting foreign investors throughout Asia:
ASEAN’s Free Trade Agreements: An Overview
The Association of Southeast Asian Nations (ASEAN) has signed several FTAs with some of the major economies in the Asia-Pacific region. In this article, we provide a broad overview of some of ASEAN’s FTAs and highlight the overall benefits they offer.
Expatriates in India: Visa, Work Culture, Socioeconomic, and Payroll Considerations
India is the second most favored destination for expatriates that want to work in the emerging markets. Here we discuss India’s living and working environment, and briefly touch on its HR and payroll laws as applicable to foreign nationals working in the country.
The latest issue of China Briefing Magazine, titled “Managing China’s Financial System“, is out now and currently available to subscribers as a complimentary download from the Asia Briefing Publication Store.
In this issue:
- Why do Foreign Investors think China’s Financial System is Complex?
- How to Manage Complexities within China’s Tax Regime
- Pre-investment Capital Planning for China’s Foreign Exchange Control
- Transfer Pricing Regulations in China
By Mark Preen
The electric vehicle (EV) industry is just one priority area of the country’s ‘Made in China 2025’ industrial strategy, which aims to transform China from a low-end manufacturer to a high-end one. Yet, the government’s goals for the industry are staggering: its target is to have five million electric vehicles on its roads by 2020, up from one million today.
The battery industry’s success is closely tied to the EV industry’s success – a battery currently accounts for up to half an EV’s cost of production. Given the close relationship of the EV industry and battery industry, the government has picked domestic champions that it is promoting to lead the way in China’s domination of the global battery industry.
Fierce global competition in this industry is already under way as producers vie for their share of the what is predicted to be a US$25 billion global industry by 2020.
By Dezan Shira & Associates
On November 30, China’s General Office of the State Council released the “Notification of Holiday Arrangements in 2018 (Guobanfamingdian  No.12)”, which lays out the official national holiday schedule for 2018.
As always, China’s holiday schedule features two major week-long holidays: the Spring Festival (also known as Chinese New Year) and National Day. In 2018, the Spring Festival falls between February 15 and 21, and the National Day holiday between October 1 and 7.
Employers should take note that China’s holiday schedule often includes additional official work days that fall on Saturdays and Sundays to compensate for long holidays. For example, Sunday, February 11 and Saturday, February 24 are official work days designed to partially offset the seven days off in between for the Spring Festival.