Economy & Trade
China to Further Regulate the Publishing Industry
On January 28, the State Administration of Press, Publication, Radio, Film and TV issued the “Measures for the Administration of Press & Publication License,” which shall become effective as of March 1, 2016. The Measures clarified the procedures for designing, printing, issuance, renewal and the cancellation of the publication license. The state and provincial publication department should publicize the issuance or the revoking of the license via their official websites or an authorized newspaper. In the case where a company/individual needs to renew the license, the renewal should be finished within 30 days before the expiration date. Despite relaxations on foreign investment categories over the past years, publishing in China is an industry marked with restrictions and prohibitions for foreign investment. A more detailed introduction of China’s publishing industry can be found in our previous article here.
The below is a sample of Cascade Asia Advisor’s monthly report on light manufacturing across emerging Asia, available for purchase through the Asia Briefing bookstore. The report is a 4-5 page executive-ready assessment and outlook designed to help companies anticipate labor risks and dynamics across key manufacturing countries in Asia. Countries of coverage include Cambodia, China, Indonesia and Vietnam.
Though the official Chinese New Year (CNY) dates run from February 7-15, many workers will have already left for home with more to follow over the next few days. Office and sales staff will likely be off for about two weeks but other than that points of contact with the factories will be active in most cases. They will continue to take new orders however they will not hit the production line until workers return. Brands should be aware that workers do not typically return to work at the same time but do so in waves. The first wave will usually return after the Lantern festival (February 22) while the second wave will return around the first week of March.
By Dezan Shira & Associates
Editor: Rainy Yao
China’s 2015 total trade volume decreased by seven percent from the previous year – its first drop since 2010, according to China’s customs authorities. Imports to the country fell 13.2 percent to RMB 10.45 trillion. Boosting foreign trade has therefore become a top priority for the Chinese government in 2016. However, the Middle Kingdom also has its trump card – e-commerce. Exporters trying to sell to the lucrative Chinese market, with or without a physical presence in the country, will inevitably have heard of its booming cross-border e-commerce industry, which grew over 30 percent in 2015 despite the slowing international trade. It is predicted that trade via cross-border e-commerce alone will exceed RMB 6.5 trillion in 2016, accounting for 20 percent of total trade volume.
So how does the cross-border e-commerce model work, and what makes it different from imports under general trade? In this article, we take a closer look at China’s cross-border e-commerce industry and compare two of the most common sales approaches used by foreign merchants engaged in the industry.
Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia
In this edition of China Outbound, we start with an overview of the current state of the e-commerce landscape in India and Vietnam. We also include a guide to Vietnam’s import and export restrictions, which is closely related to the development of the country’s e-commerce industry. Then, we examine the corporate establishment procedures, regulations and key considerations when setting up businesses in other ASEAN nations such as Singapore and the Philippines.
The latest issue of China Briefing Magazine, titled “A Guide to China’s Free Trade Zones”, is out now and available to subscribers as a complimentary download in the Asia Briefing Bookstore through the months of January and February.
- Getting in the Zone: Understanding China’s FTZs
- Navigating China’s FTZs: Market Access, Tax Systems and Registration Procedures
- Expert Commentary: Additional Considerations when Investing in China’s Free Trade Zones
Hit on China’s Financial Sector: China Suspends the Approval of Investment/Fund Management Companies
In order to crack down on illegal fund raising activities and restore the order of China’s financial market, the Chinese government has decided to restrict the approval of investment related registration applications nationwide starting January 12. The restrictions implemented differ per city and district. For example, Beijing has already suspended the registration of all companies whose business scope contains words such as “investment,” “capital & fund,” “equity investment,” and “finical management.” The officer of the Administration for Industry and Commerce (AIC) stated that currently the length of this suspension period remains unclear.
Examined from a certain angle, China’s trade and business relationship with the Association of Southeast Asian Nations (ASEAN) is in a state of flux. A number of important questions currently face the two: as China’s workforce ages and labor costs rise, will the Middle Kingdom’s role as the “world’s factory” be surpassed by its ASEAN neighbors? As China’s growth slows, will this have a knock-on effect on ASEAN’s ten member nations? And how will this affect western companies doing business in the region?
China’s GDP Growth during the First Three Quarters of 2015
Although China’s gross domestic product (GDP) of last year has yet to be released, the country’s actual 2015 GDP growth is set to come in at about 6.9 percent – slightly below the target for about 7 percent. According to the National Bureau of Statistics, the country’s GDP rose 6.9 percent during the first three quarters this year compared to the previous year, beating economists’ estimates for 6.8 percent. It is estimated that the tourism sector contributed over 10 percent to the national GDP growth with a total revenue of RMB 4 trillion.