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China Briefing is a monthly magazine and daily news service about doing business in China. We cover topics relating to the Chinese economy, the market in China, foreign direct investment and Chinese law and tax. It is written in-house by the foreign investment professionals at Dezan Shira & Associates




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Industry Reports

U.S. Burdens Chinese Solar Panel Manufacturers with Anti-Dumping Tariffs

By Sofia Liska

May 22 – The U.S. Commerce Department has imposed tariffs of 31 percent to 250 percent on Chinese solar panels, upsetting American solar panel installers, Chinese solar panel manufacturers, and Chinese officials. In doing so, the U.S. government effectively sided with solar panel manufacturer SolarWorld Industries America, who claimed that Chinese companies were dumping their under-priced and illegally subsidized solar panels onto the U.S. market.

The United States had already imposed a tariff in March of between 2.9 percent and 4.73 percent in order to offset the illegal government subsidies received by Chinese solar panel manufacturers, but American solar panel manufacturers were not satisfied. Continue reading

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China’s Exploding Wine Consumption

U.S., Chile, Australia as well as old world wines all generating increasing market shares as China develops new tastes

Op-Ed Commentary: Chris Devonshire-Ellis

May 21 – China is a country that continues to surprise, even 20 years after I first established my business there. Back in 1992, drinking coffee was limited to the few hotels that even had such a thing as a Nescafe sachet. Last October, Starbucks opened its 500th store, not bad going for a nation once considered purely tea drinkers. The same story, that of changing consumer tastes, has filtered across many F&B markets, not least with wine. In 1992, red wine would be drunk as a highball with coke, and white wine with 7Up. While that may be understandable given the general quality of wine in China at the time, that is not the case today, and rather like the coffee phenomena, wine consumption has sky rocketed and continues to do so. Continue reading

Posted in Business, FDI and Foreign Trade, Markets, Retail | Tagged , , , , | 3 Comments

Regulations Affecting Foreign-Funded International Freight Transportation Agencies in China

May 10 – In order to create a healthy environment for the development of China’s international freight transportation industry and to establish a regulatory system for business operations, the Ministry of Commerce issued the “Administrative Measures for Foreign-Funded International Freight Transportation Agency Enterprises (Order of the Ministry of Commerce [2005] No.19, hereinafter referred as the ‘Measures’) in 2005.

According to the Measures, foreign investors are allowed to establish foreign-funded international freight transportation agencies in China in the form of a joint venture or cooperation. From December 11, 2005, solely foreign-owned international freight transportation agencies are allowed in China with a minimum registered capital of US$1 million. Foreign investors may acquire established international freight transportation agencies through stock equity purchases. However, the ratio of the equity and investors’ qualifications shall comply with the requirements prescribed in the Measures. Relevant laws and regulations shall be followed if state-owned assets are involved. Continue reading

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CEPA Rules of Origin for Hong Kong-Mainland Trade in Goods

Apr. 24 – In order to enjoy zero tariffs under the Closer Economic Partnership Agreement (CEPA), goods exported from Hong Kong to Mainland China must fulfill the rules of origin and show evidence of being “made in Hong Kong.”

The execution of the rules of origin is detailed in the “Customs Provisions of the People’s Republic of China on Executing the Rules of Origin for Trade in Goods under the Mainland/Hong Kong Closer Economic Partnership Arrangement (haiguanshuling No.106, hereinafter refers as ‘Provisions’),” which was promulgated in December 2003 and came in effect from January 1, 2004. Continue reading

Posted in Business, FDI and Foreign Trade, Finance, Tax and Accounting, Legal and Regulatory, Manufacturing, Shipping & Logistics | Tagged , , , | Leave a comment

Suzhou’s Development Zones – An Introduction to Xiangcheng District

By Michael Keller

Apr. 24 – An opening and project signing ceremony was held at Suzhou’s Xiangcheng District on January 11 in which 16 projects were allocated to different firms – 8 domestic and 8 foreign – with total investment amounting to RMB7.7 billion.

Twelve of these projects are in the categories of either advanced manufacturing (precision machinery, electronic equipment components) or emerging sectors (new materials, environmental protection). Among the firms included were PolyOne, Evans, Digital Innovation Display, and Doony. Continue reading

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Taobao and CTR Release Report on China’s Online Shopping Growth

By Xiaolei Gu

Apr. 19 – To further expound the important role that online shopping is playing with regards to China’s expanding consumption levels, popular shopping website Taobao and China’s largest market research firm CTR jointly released the “Report on China’s Online Shopping Trends 2012 (中国消费风向标报告2012).” The report identifies and extrapolates on online shopping trends in China based on CTR’s continuous single-source survey CNRS-TGI, Kantar Worldpanel, and data collected from Taobao – a facilitator of B2C and C2C retail business run by Chinese internet giant Alibaba Group. Continue reading

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South China’s Gaolan Port Economic Development Zone Promoted to NETDZ

Apr. 10 – In late March, China’s State Council approved the promotion of the Gaolan Port Economic Development Zone to become the first national economic and technology development zone (NETDZ) on the west bank of the Pearl River Delta. The newly-promoted zone has been named the “Zhuhai Economic and Technological Development Zone.”

Gaolan is roughly 83 kilometers away from Hong Kong, 42 kilometers from Macao, 150 kilometers from Guangzhou, and 180 kilometers from Shenzhen. The 380-square-kilometer Gaolan Port Economic Development Zone was established in 2006 by the government, with the municipal-level administrative authorities and independent financial management power. It is one of the most important large-scale comprehensive harbor industry zones of South China, with a focus on the equipment manufacturing, petrochemical and energy industries. Continue reading

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Chinese Airlines Raise Fuel Surcharge Fees

Apr. 5 – Due to rising oil prices, Chinese airline companies have increased fuel surcharge fees for both domestic and international fights.

For domestic routes, the fuel surcharge fee has been increased by RMB10 per flight beginning April 5, 2012. After the adjustment, passengers are now subject to an RMB80 fuel surcharge for flights of less than 800 kilometers and RMB150 for longer routes, instead of the previous surcharges of RMB70 and RMB140. It is the second time that Chinese airlines have increased fuel surcharge fees for domestic flights since the beginning of March 2012. Continue reading

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