SHANGHAI – On February 28, the Shanghai State Administration of Foreign Exchange (Shanghai SAFE) issued the “ Notice Concerning Support for the Implementation of Foreign Exchange Administration in the China (Shanghai) Pilot Free Trade Zone” (Shanghai Huifa  No. 26, hereinafter referred to as the “Notice”). The Notice aims to simplify the process of foreign direct investment (FDI) and facilitates the management of capital accounts in the Shanghai free trade zone (FTZ) – a 28.78 square kilometer free-trade zone launched in 2013.
These reform measures move China one step closer to the liberalization of foreign exchange capital accounts and carry great importance for foreign investors with an eye on the Chinese market. Continue reading
By Chet Scheltema & Leonard Liu, Dezan Shira & Associates
BEIJING – Starting March 1, 2014, Beijing adopts new incorporation requirements for all companies, including for foreign invested enterprises, consistent with national reforms enacted in the legislation “Reform of Registered Capital Rules.” Beijing’s announcement follows similar pronouncements in February of other major Chinese municipalities such as Tianjin and Guangzhou and also in Zhejiang.
According to inquiries with Beijing authorities, foreign invested enterprises may now complete incorporation in Beijing and obtain a business license without needing to inject “registered capital” or complete capital verification. Old rules required that one installment be made within six months of obtaining a company’s preliminary business license or several installments within a two-year period and that such injection be formally verified. Also, the minimum invested capital requirement has been formally eliminated (except for enterprises operating in restricted or special industries). Continue reading
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
By Roy McCall
So you would like to invest in China’s film industry? Does the competitive landscape offer opportunities to the strategic investor? Here’s a view of the China film value chain:
Knowledge of China’s ASEAN FTA is Critical when Dealing with Increasing Wage Cost Concerns
Op-Ed Commentary: Chris Devonshire-Ellis
China has developed a strategic position when it comes to entering into free trade agreements – the policy of allowing dutiable and tax reduction on certain products and services being one of the main cornerstones that has projected the nation to be the world’s manufacturing hub over more recent years. Without doubt, the signing of the China-ASEAN FTA is and will continue to have a huge impact on China and Asia’s development in global sourcing and the foreign investment related to this.