China’s growing consumer market to be serviced from Asia
Op-Ed Commentary: Chris Devonshire-Ellis
China agreed to a full Free Trade Agreement with ASEAN, effective from 2010, yet the implications of this, given the preoccupation with the global financial crisis, are only now starting to become apparent. What this agreement does is to eliminate import-export tariffs and barriers on some 90 percent of all products traded between China and the ASEAN member states. ASEAN is a ten member Asia trade bloc, including the Asian Tigers of Singapore, Indonesia, Malaysia, Philippines and Thailand, all of whom have already reduced tariffs (and China has done in reciprocity) on the majority of traded products between them. By the end of next year, the same will also apply to the other ASEAN members of Cambodia, Laos, Myanmar and Vietnam. Continue reading
As China becomes increasingly unified through its many tax treaties, trade and political developments with its neighboring countries in Asia, we take a look at some of the Asian news this month of strategic interest to China-focused executives. As China changes, so does Asia and this bulletin provides you with the market intelligence as what is going on beyond China’s own borders. Continue reading
Richard Cant, regional director of Dezan Shira & Associates‘ Shanghai offices, was recently interviewed by Australia’s Freight and Trade Alliance about China’s value-added tax reform, its impact on the shipping and logistics industries, and opportunities within Shanghai’s new free trade zone. Continue reading
SHANGHAI – To further enhance financing support for cross-border investment and trade, the Shanghai office of the People’s Bank of China (PBOC), the mainland’s central bank, has allowed companies based in the Shanghai free trade zone (FTZ) to conduct offshore RMB borrowing.
The Shanghai PBOC recently promulgated the “Notice concerning Support to Further Expand the Cross-Border Usage of RMB in the China (Shanghai) Pilot Free Trade Zone” (hereinafter referred to as the “Notice”), which simplifies the procedures for using RMB across the border under current account and direct investment items within the Shanghai FTZ. The Notice outlines the scale allowed for offshore RMB loans and the scope of using the borrowings. It also specifies some innovative services that will be offered in the Shanghai FTZ, such as cross-border E-commerce settlement and RMB exchange services. Continue reading
In this article, we explore China’s social security system, which is especially complex because it is organized at the regional level. While the formal social security system only covers urban workers, some rural workers who move to the cities to work (the so-called “floating population”) are also covered. On account of China’s sheer size and legal diversity, the country’s social insurance system is among the most difficult in the world to navigate.
Chris Devonshire-Ellis, Founding Partner of Dezan Shira & Associates and publisher of China Briefing, was recently interviewed by Dukascopy, a Swiss foreign exchange bank and market intelligence provider, in their “Expert Commentary” series.
In the interview, Chris discusses the potential for growth in China this year, the current fiscal slowdown, and the differences in GDP growth across China. He also touches on the phenomena of China’s “Ghost Cities,” the Housing Bubble and the Chinese Government’s attempts to control housing prices and reign in credit. Continue reading
Minimum Registered Capital Requirements To Be Abolished
SHANGHAI – To further lower the requirements for registering new businesses in China, the State Council, China’s cabinet, recently revealed their scheme for the reform in business registration. The scheme is a vigorous move in executing the objectives determined in the Third Plenum last year to establish an open and competitive market. Decisions made in the Third Plenum after the enthronement of a new leadership in China usually serves as an indication of how the country will be led for the next decade.
China amended its Company Law at the end of 2013. The new law will remove the registered capital requirements for company establishment, replace the paid-up capital registration regime with a subscribed capital registration regime, and will remove the minimum cash contribution requirement. The new Company Law will come into force on March 1, 2014. Continue reading
SHANGHAI – Order No. 55, disseminated by China’s State Council in 1990 (“Order 55”), allows foreign investors to acquire land-use rights for business operations. However, China employs highly rigid rules and administrative control over the grant or transfer of land-use rights, and any change of the title or purpose of the land-use rights requires legal procedures to be carried out with government authorities. The Ministry of Land and Resources (MLR) and its local Land and Resource Bureaus (LRB) oversees land use registration and alterations. Nevertheless, all individuals or entities must utilize the land strictly in compliance with the general plan of land usage formulated by the state and local government. Continue reading