First nation to report over 20 million units sold
Jan. 20 – China became the first country to sell in excess of 20 million auto units last year, with nearly 22 million passenger and commercial vehicles being sold in the country over that time. This figure represented a 14 percent increase over 2012, and was double the China Association of Automobile Manufacturers estimate. Of these, 59.7 percent of the market was taken by foreign joint ventures. Volkswagen replaced General Motors as the top China seller for the first time since 2003, while Ford sales grew by 49 percent and Japan’s Toyota enjoyed a record year, despite political problems with China. Continue reading
Sept. 30 – WFOEs are considered resident enterprises in China and, just as other domestic companies, their profits are subject to corporate income tax (CIT), which is generally 25 percent. Businesses generally also pay either business tax (BT) or value-added tax (VAT), depending on the nature of the business. Only in special circumstances are both taxes paid. BT is imposed on the provision of taxable services and sale of immovable property and intangible assets. Meanwhile, VAT is levied on the on the sale of goods, provision of repair and replacement services, and importation of goods into China. BT ranges from 3 percent to 20 percent, while VAT ranges from 0 percent to 17 percent. For both BT and VAT, certain exemptions apply. Continue reading
By Eunice Ku
Sept. 11 – A wholly foreign-owned enterprise (WFOE) is a company established in China according to Chinese laws and wholly owned by one or more foreign investors. A WFOE is a limited liability company, meaning that the liability of the shareholders is limited to the assets they brought to the business. Unlike the simpler representative office setup which is subject to a number of limitations, a WFOE can make profits and issue local invoices in RMB to its customers, which is crucial as invoices are the basis for obtaining tax deductions in China. Compared to a joint venture, a WFOE has greater freedom and independence, and can better protect its intellectual properties. It can also employ local staff directly, without obligation to employ services from employment agencies. Although there is no legal restriction on the number of foreigners a WFOE can employ, in practice the number of foreign employees does depend on the amount of registered capital (discussed below) that the respective company injects. Continue reading
By Christian Fleming and Shirley Zhang
May 28 – Development zones are not a Chinese creation, but China in particular has found tremendous success with this economic tool. Historically, the liberal business environment in these areas have allowed foreign enterprises to operate more comfortably in the Chinese business environment, sheltered from the bureaucracy and red tape that often characterizes the rest of the country while at the same time such businesses could benefit from preferential policies, greater resource availability, and prime locations within regional hubs of creativity and innovation. Continue reading
Posted in Automotive, Business, Central China, Chemical & Pharmaceutical, East China, Economy and Politics, FDI and Foreign Trade, Featured, Manufacturing, Markets, Northeast China, Shipping & Logistics, South China, Technology, West China
Where to source Chinese expertise and academic research from within city clusters around China
Feb. 23 – China originally began clustering its national industries under directives from Chairman Mao Zedong in the early 1950s. This occurred during the Cold War era when it was feared that either Soviet or American attacks on cities such as Beijing and Shanghai could wipe out much of the nation’s industry, centered at that time in these cities. Strategic industries were thus spread across the country to protect against attack and invasion.
The legacy of this today has been that different industrial clusters have developed in different areas of China. In order to develop an effective supply chain, source universities with the right set of talents, and recruit the right type of workers, attention needs to be paid to the regional differences around China as concerns available expertise. Continue reading
Posted in Automotive, Business, Chemical & Pharmaceutical, Economy and Politics, FDI and Foreign Trade, Manufacturing
Tagged China Clusters, China Industry Report, China Manufacturing, Pearl River Delta, Professional Clusters, Yangtze River Delta
By Julia Gu
Feb. 20 – Since separating from Southwest China’s Sichuan Province in 1997, the municipality of Chongqing has emerged as one of China’s fastest developing regions and is regarded by Beijing as the epicenter of the country’s “Go West” campaign.
Last year, the province-sized city with a population of 28.85 million attracted US$11 billion in foreign direct investment and its GDP grew 16.5 percent year-on-year to RMB920 billion (US$145 billion). According to the Chongqing municipal government, the city expects 13.5 percent GDP growth this year. Continue reading
Dec. 16 – The Chinese government recently announced the imposition of two new tariffs on U.S. car imports, bringing higher market access thresholds to U.S. auto manufacturers.
In the “Announcement on Imposing Anti-dumping and Countervailing Measures on Imports of Certain U.S.-made Cars (MoC Announcement  No.84)” issued on December 14, the Ministry of Commerce (MoC) says that, between December 15, 2011 and December 14, 2013, both anti-dumping and countervailing tariffs will apply to U.S-made passenger cars and sports utility vehicles with engine capacities of 2.5 liters and above. Continue reading
Posted in Automotive, Business, FDI and Foreign Trade, Legal and Regulatory, Regulatory Update
Tagged BMW, China Anti-dumping Tariff, China Auto Market, China Countervailing Tariffs, China U.S. Trade Disputes, Chrysler, Ford, General Motors, Honda, Mercedes-Benz, Trade Protectionism, U.S. Automobiles, World Trade Organization
Shenzhen BYD E6 taxi
Dec. 13 – Shenzhen has begun integrating electric vehicles into its public transport with the recent commercial introduction of local auto-maker BYD’s vehicles appearing on the city streets. An initial fleet of some 300 e-taxis are now plying the roads. Named the E6, the vehicle offers enough space for five passengers and has a range of some 160 kilometers. Plans are currently being put into place to convert all of Shenzhen’s public vehicular transport to electric – including buses and all taxis – over the next five years. Continue reading
Posted in Automotive, Business, Markets, Oil & Petroleum, Science and Tech, South China, Technology
Tagged BYD, China Auto, China Electric Vehicles, Shenzhen, Shenzhen E-Taxi, Shenzhen Public Transportation, Warren Buffett