Culture and History

China Continues Offering Tax Incentives to Animation Industry

Jan. 19 – As part of its support for emerging cultural industries, China’s Ministry of Finance and State Administration of Taxation recently announced their intentions to continue the favorable value-added tax (VAT) and business tax (BT) treatment to the animation industry.

According to the “Circular on VAT and BT Policies that Support the Development of the Animation Industry (caishui [2011] No.119)” released on December 27, 2011, qualified animation developers can enjoy a VAT refund and a reduced BT rate. Continue reading →

Posted in Business, Culture and History, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update | Tagged China Animation Industry, China Animation Production, China Animation Software, China Business Tax, China Copyright Transfer, China Cultural Industries, China Tax, China Value Added Tax, China VAT Refund | Leave a comment

Twenty Years Ago, Deng Changed China Forever

The “socialist market economy” was born this week in 1992

Op-Ed Commentary: Chris Devonshire-Ellis

Jan. 16 – An anniversary occurs this week that may well go unnoticed by many – the 20th year since Deng Xiaoping, China’s premier at the time, visited Shenzhen as part of an unusual South China tour. To set the scene to recall why this was so important an event is to remember that China had not really fully opened up its economy on the back of reforms instigated by Deng in the late 1980s. What had at one stage seemed to be a sincere movement to open the country up came to a shuddering halt in the aftermath of the Tiananmen incident. I was in China at that time, employed by Asia Law & Practice (now part of Euromoney) – it was to be a further few months before I was to establish my firm, Dezan Shira & Associates. That I did so was almost entirely down to Deng’s visit. Continue reading →

Posted in Culture and History, Economy and Politics, South China | Tagged Chris Devonshire-Ellis, Deng Xiaoping, Opening Up, Shekou, Shenzhen, South China, Tour of South China | Leave a comment

Why India Matters

Investing in India makes sound Asia strategic sense when coupled with China

Op-Ed Commentary by Chris Devonshire-Ellis

Jan. 4 – Much has been made of comparisons between China and India, much of it driven by the fact that the two nations are (occasionally reluctant) neighbors, their size, population and simultaneous development and progression. For two nations so large, sometimes at polar opposites, yet at the same time offering potentially comparable market sizes, is unprecedented in history. Yet here we are, 25 years on from the beginnings of China’s first, tentative steps towards reform, and India now looms on the horizon as a giant of Asia.

Continue reading →

Posted in Business, Culture and History, Economy and Politics, FDI and Foreign Trade, Featured | 4 Comments

China to Offer Incentives to Its High-Tech, Cultural Industries

Dec. 12 – In a recent statement, China’s State Administration of Taxation (SAT) has vowed to offer more tax incentives to the country’s cultural industries, especially those emerging cultural industries essential to China’s advancement in technological innovation.

Favorable policies will mainly go to high-tech as well as emerging cultural industries, and nonprofit cultural organizations. Continue reading →

Posted in Business, Culture and History, Finance, Tax and Accounting, Legal and Regulatory, Regulatory Update, Technology | Tagged China Animation, China Digital Cable TV, China Emerging Cultural Industries, China High-tech Industry, China Nonprofit Cultural Organization, China Research and Development, China Tax, China Tax Incentives, China Technological Development, China Technology Transfer, State Administration of Taxation | 1 Comment

China Announces Official 2012 National Holiday Schedule

Dec. 6 – China’s General Office of the State Council released the “Circular on Arrangement of Certain Holidays in 2012 (guobanfamingdian [2011] No.45)” today and announced the arrangement of national holidays in 2012 as follows:

New Year

January 1-3 (three days in total)
December 31, 2011 (Saturday) is an official working day Continue reading →

Posted in Business, Culture and History, Legal and Regulatory, Regulatory Update | Tagged China Labor Day, China National Day, China National Holidays, The Chinese New Year, The State Council | 5 Comments

Six Principles to Follow for Bribery Prevention

By Helena Wahlund

Dec. 5 – It has become increasingly important for companies to have procedures in place in order to prevent corruption and bribery from taking place within their organizations. Following greater international cooperation between enforcement authorities as well as new enforcement techniques such as wiretaps and sting operations, the number of prosecutions under the U.S. Foreign Corrupt Practices Act (FCPA) has dramatically increased from just five in 2004 to over seventy in 2010. China Briefing dedicated an entire issue to the FCPA in May this year, and with the introduction of the UK Bribery Act five months ago, the global trend of taking action against noncompliance is showing no signs of losing strength.

Unlike the FCPA, the UK Bribery Act also covers business-to-business bribery and does not offer any exceptions for facilitating payments to foreign officials – an area that may be of particular concern to companies operating in China. Another key feature of the act is the new corporate offence of “failure to prevent bribery” (The Bribery Act, Section 7). According to Section 7, if bribery occurs on behalf of a company by a person associated with it, the company can be made liable and, what is more, there are no limitations as to the amounts that can be fined. Continue reading →

Posted in Business, Culture and History, Legal and Regulatory | Tagged China Bribery, China Compliance, China Corruption, China Due Diligence, China Legal, China Risk Analysis, Compliance, Regulatory, U.S. FCPA, UK Bribery Act | 1 Comment

The Man from Ashgabat – Xinjiang’s Key to Central Asia

A unique combination of Islam and Russia blends to produce a unique Asian trade opportunity

Op-Ed Commentary: Chris Devonshire-Ellis

Nov. 24 – Xinjiang has long held the fascination of the exotic-minded businessman. Fabled for its association with the ancient Silk Road and Western legends through the travel exploits of Marco Polo, as well as with Chinese mythology through the epic classic “Journey to the West” mixed together with more recent shades of Britain and Russia playing out their “Great Game.” All the while set to the Oriental Islamic mysticism of veiled women, Turkish coffee, silk magic carpets and water pipes, hubbling and bubbling with pure hashish. If Xinjiang didn’t exist, it would be necessary to invent it as the setting for the ultimate Indiana Jones movie. Perhaps one day Spielberg will set foot here, and if not, Daniel Craig should in a remake of the 19th Century adventures in Imperial espionage that took place in Kashgar. Continue reading →

Posted in Business, Culture and History, Economy and Politics, Featured, West China | Tagged Almaty, Ashgabat, Astana, Central Asia, Central Asian Trade, Chris Devonshire-Ellis, Islam, Kashgar, Kazakhstan, Religion, Samarkand, Turkish, Uyghur, Xinjiang | Leave a comment

China’s Ex-Expats: Emerging Asia Beckons

An examination of 20 alternative Asian cities for expats leaving China

Op-Ed Commentary: Chris Devonshire-Ellis

Nov. 18 – It seems likely that this coming Christmas will see the end of many China expatriates’ careers in China. Nervous of the recently introduced, and fairly high, mandatory social welfare contributions for foreigners, employers are cutting back on non-essential foreigners, and localizing these positions. Essential expats will remain, but those on the fringes and not able to offer much in terms of specific talent face culling. As China moves up the value chain, it simply does not need to have foreigners with little actual skills to offer. Returning Chinese can fill lower-middle management, and increasingly senior managerial roles, and the China expat is being squeezed out.

The impact on this will be felt by those that have recently graduated, or are aged to about 35 and haven’t yet found their way high enough up the corporate ladder. There are of course exceptions, but many in this age bracket will find their China career options coming to a close. Contracts will not be renewed, and many will face termination. The lucky will be relocated elsewhere within their existing employers. However, the future externally also looks rather bleak. Both the United States and European economies are in the doldrums, and unemployment is rising. Returning back may also be something of a waste – all that China experience down the drain. Here, employees need to make a decision – remain an expat, and continue to add to the adventure, or return home and take the chances of reabsorbing back into mainstream society. Continue reading →