Author Archives: China Briefing

Leveraging ASEAN to Sell More China Manufactured Products

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China Outbound

Op-Ed Commentary: Chris Devonshire-Ellis

One of the benefits of being part of a firm that now has a Pan-Asia presence is the different viewpoints and perspectives it provides in terms of business opportunities beyond China. Although China will remain a heavyweight in Asia, it is changing, and manufacturers that came to China twenty years ago to manufacture cheap products and then resell overseas, primarily back to the United States and Europe, are having to change their business models.

It is now China that is developing as the “must be there” consumer market, with its middle class consumer base expected to rise from about 250 million today to some 600 million by 2020. That is the equivalent of adding the entire population of the United Kingdom as new affluent consumers, every year. Asia, meanwhile, is also going through a period of rapid economic growth and wealth creation. Continue reading…

China Regulatory Brief: IIT Reform & New FTZ Establishment

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China Plans to Establish the Beijing-Tianjin-Hebei FTZ
Plans are soon due to be released for the Beijing-Tianjin-Hebei Free Trade Zone (FTZ), aimed at the coordinated development of Beijing, Tianjin and Hebei. It is being speculated that Jingtang Port and Caofeidian in Hebei may be cornerstones of the new zone.

Currently, there are two main theories of how the FTZ will be administered: either the Tianjin and Hebei FTZs will be consolidated as the Beijing-Tianjin-Hebei FTZ, or the two will be established later as independent FTZs. Continue reading…

Hengqin New Area Announces Preferential Policies

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GUANGZHOU – On Mar 27, the Ministry of Finance and State Administration of Taxation jointly issued a Preferential Corporate Income Tax (CIT) Catalog for Hengqin New Area (hereinafter referred to as “Preferential Catalog”), which lists the industries that will be eligible for the preferential CIT rate of 15 percent.

Hengqin New Area, located in the Zhuhai Special Economic Zone in Guangdong Province, is situated next to Macau and only a stone’s throw away from Hong Kong. Given its geographic advantage, the Hengqin New Area is the first pilot zone of the “one country, two systems” policy and has already attracted over RMB226.3 billion (US$36.4 billion) total investment so far. It is equipped with high-quality development resources and advanced management mechanism, as well as provides the most preferential investment policies in South China. Continue reading…

Economic Cooperation to Play Stronger Role in China-France Relationship

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SHANGHAI – Several high-level trade deals were signed between China and France during President Xi Jinping’s three-day visit this week as one stop on a wider European tour.  In the largest of these agreements, French investors were granted a RMB 80 billion (US$12.9 billion) quota to invest in mainland Chinese markets as part of a campaign to promote the yuan as an international currency.

Other deals focused on the automobile and aviation industries: Chinese automobile manufacturer Dongfeng purchased a 14 percent stake in its French counterpart PSA Peugeot Citroen and plans are in the works for China to purchase US$20 billion of aircraft from Franco-German manufacturer Airbus. Continue reading…

China Retail Industry Report 2014: New Issue of China Briefing Magazine

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In this issue of China Briefing Magazine: 

  • An Overview of China’s Retail Industry
  • Setting Up a Retail Store in China
  • China’s Retail Talent Landscape
  • Tips for Recruiting Retail Personnel in China

The newest issue of China Briefing Magazine, titled China Retail Industry Report 2014, is out now and available as a complimentary download in the Asia Briefing Bookstore through the month of April. Continue reading…

China’s 2014 Q1 Minimum Wage Hikes

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SHANGHAI – In the wake of recent reports of coming increases to the minimum wage in Beijing, Shanghai and Tianjin, one question may be on the minds of foreign business leaders active in the country: what is the minimum wage in China?

The answer to this seemingly simple question turns out to be quite complicated for a number of reasons. First off, the specific standards are set in individual cities, provinces and other administrative units by their respective local government. At the next level, each of these units is commonly divided into a number of classes, whose minimum wages vary according to local socioeconomic conditions. Lastly, minimum wage must be differentiated between minimum monthly salary and minimum hourly wage (for full-time and part-time workers, respectively). Continue reading…

China Outbound: Shifting Demographics and Manufacturing Trends in Asia

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Why and Where Foreign Manufacturing Investment is Slipping out of China and into Asia 

In this edition of China Outbound, we highlight the shifting demographic dynamics taking place across Asia and explore their impact on manufacturing centers throughout the region. As China grows from a manufacturing-focused economy to one driven by consumer demands, these demographic trends will be of great interest to companies looking to establish a manufacturing presence in Asia to serve China’s expanding market. To stay up-to-date with the latest trends across China and Asia, subscribe to our complimentary weekly newsletter concerning legal, tax, investment and regulatory updates throughout Asia. Continue reading…

Frankfurt Beats London to Become First RMB Clearing Hub Outside Asia

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SHANGHAI – Germany’s Deutsche Bundesbank and the People’s Bank of China signed a memorandum of understanding (MoU) on Saturday that will establish an RMB settling and clearing service in Frankfurt. Coinciding with Chinese President Xi Jinping’s visit to Berlin, the new MoU will make Frankfurt the first hub for clearing RMB trades outside Asia – narrowly beating London’s Bank of England, which will sign a similar MoU today.

Clearing and settling are essential for international finance and entail converting a promise of payment into the actual movement of money from one bank to another. Continue reading…