China’s FDI Climbs for Seventh Consecutive Month

Mar. 16 – Foreign direct investment in China rose for the seventh consecutive month in February, albeit at a slower rate, the Ministry of Commerce said on Monday.

The indicator recorded year-on-year growth of 1.1 percent in February to US$5.9 billion, the lowest since August 2009. FDI growth in January was 7.79 percent while in December last year it grew nearly 103 percent. During the first two months of the year, FDI rose 4.86 percent to US$14.02 billion, the ministry said. China’s February economic data was affected by a week-long Lunar New Year holiday. Read the rest of this entry »

China Property Outlook and Strategy

Mar. 16 – China’s economy reported strong recovery in the second half of 2009, following unprecedented levels of coordinated stimulus measures by the government. Financial markets have largely mended while liquidity has started to flow. Domestic consumption was a key driver, backed by relatively healthy household balance sheets and generous fiscal boosts.

China’s economic momentum is building thanks to a cyclical turnaround in exports and investment, with the added advantage of growing domestic consumption. The latter has been aided by structural advantages of lower debt (at both the national level and household levels) and favorable demographics. Read the rest of this entry »

Premier Wen Supports Balanced Trade

Mar. 15 – Chinese Premier Wen Jiabao said that China will strive to make balanced international payments and promote free trade during an open question and answer session with foreign and domestic press agencies on Sunday.

“I am a staunch supporter of free trade, since it will not only promote world economic growth, but also improve people’s livelihoods,” Wen remarked at the press conference. “We will launch new measures to increase imports. We sent purchasing groups to the European Union and the United States when the world was stranded in the most difficult period of time (in the global financial crisis).” Read the rest of this entry »

China’s Foreign Trade up 45 Percent in February

Mar. 11 – China’s exports grew for the third straight month in February to US$94.52 billion, up from 45.7 percent year-on-year, indicating a rebound in global demand.

Imports also increased according to statistics released by the General Administration of Customs on Wednesday, rising 44.7 percent to US$86.91 billion. Exports grew 8.2 percent compared with the same month in 2008 before the global financial crisis, while imports increased 9.8 percent. Read the rest of this entry »

New Board to Bring Major Multinational Firms to Mainland Soon

Mar. 10 – The Shanghai Stock Exchange completed draft listing and trading rules of its international board which will allow overseas companies to float shares in China’s A-share market, SSE Chairman Geng Liang said on Monday.

The draft rules are completed, but they are still working on the details, and the revised rules will be available for public comment soon, according to Geng. Read the rest of this entry »

Daimler and BYD Sign MOU for China Electric Cars

Mar. 3 – Daimler of Germany and BYD, the Shenzhen-based, Hong Kong-listed small auto manufacturer, have signed an agreement to develop and sell electric cars on the Chinese mainland.

The deal could be worth up to US$150 million in a joint venture to develop fully electric vehicles.

“This is cooperation between the most senior car maker and the youngest, between the country with the best car industry and the country with the biggest car market,” BYD’s General Manager Henri Li stated at a press conference. Read the rest of this entry »

New Issue of China Briefing Magazine: Operational Due Diligence in China

Mar. 2 – In this new issue of China Briefing, we take a look at operational due diligence issues and how to kick a China business’s tires.

First, we delve into some of the operational, financial and HR issues that anyone investing in China should be aware of. From establishment issues to key operational functions and environmental considerations, we explore how operational due diligence can help assess the risks and opportunities inherent when operating on the mainland. We also look at how to assess financial statements, corporate documentation and China’s taxes and conclude our overview with some HR concerns including employment issues and social welfare benefits.

Read the rest of this entry »

Business Licenses for Foreign-Invested Partnership Enterprises Available in March

Feb. 26 – Business licenses for Foreign-Invested Partnership Enterprises and Branches of Foreign-Invested Partnership Enterprises drafted by the State Administration for Industry and Commerce will be available for use beginning March 1.

The license will include registration number, name, main site for business operations, executive partners, business scope, partners, duration of partnership, date of establishment, registration authority, date of issuance and preliminary instructions. Read the rest of this entry »

Paying Tax by Installment in Hong Kong

HONG KONG, Feb. 24 – As the region slowly recovers from the effects of the financial crisis, some business may still be struggling to manage their cash flow.

Hong Kong’s Inland Revenue Department allows payment of taxes by installment for taxpayers having financial difficulties. Taxpayers will need to submit an installment application to the agency and if approved a surcharge not exceeding 5 percent of the outstanding amount will be imposed. Read the rest of this entry »

Lithium the Next Big Thing for China Investments

Feb 24 – China’s long had a relationship with Latin America, and with the South American continent holding 75 percent of the global lithium reserves, global players are piling in to negotiate supplies of the metal.

With China positioned as the global manufacturing hub for computers, and starting to pull away in the technology race to find viable light weight batteries, lithium – used in batteries and in hybrid vehicles – is poised to become the next oil as a commodity. Usage is expected to double by 2020. Read the rest of this entry »

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