May 10 – The new issue of Asia Briefing Magazine, titled An Introduction to Development Zones Across Asia, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the months of May and June.
The use of development zones in their different guises has been an effective model essentially brought to prominence by China over the past 25 years to help both foreign investors and domestic companies meet in a relationship that provides tax advantages to both. Development zones typically permit the foreign investor to bring component parts into a country for assembly without having to pay import duties. Investors may then add in locally-sourced components, assemble the final product, and warehouse it all duty free before then having the option of exporting the finished product (collecting some VAT rebates on the locally sourced portion) or entering the domestic market with a product assembled at local labor costs. Continue reading
May 24 – China’s Ministry of Rail has released plans to permit private investment into the country’s rail sector on a massive scale. The Ministry is struggling with huge debts, corruption issues and a series of high profile accidents, and is at the same time under pressure to expand China’s rail network and investment. Private investors will be encouraged to bid for contracts, establish subsidiaries that may list on stock markets, and permit pension funds to invest in rail as an investment, the Ministry said in a policy document released last Friday. Continue reading
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  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
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
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
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
Feb. 6 – In a move to further boost its logistics industry, China is now allowing logistics enterprises to pay less urban land use tax (ULUT) on lands occupied by their commodity warehouses.
According to the “Circular on the ULUT Policy Concerning the Lands Occupied by Logistics Enterprises’ Commodity Warehousing Facilities (caishui  No. 13)” co-issued by the Chinese Ministry of Finance and State Administration of Taxation, between January 1, 2012 and December 31, 2014, land occupied by a logistics enterprise’s self-owned commodity warehousing facilities (for both self-use and renting out) are subject to 50 percent of the ULUT those enterprises were originally supposed to pay based on related regulations. Continue reading
Jan. 17 – In order to exploit its massive “oceanic productivity potential,” the Chinese eastern coastal province of Zhejiang is looking to establish a special RMB1 billion fund for the development of its oceanic economy, and another separate RMB1 billion fund for the promotion of its oceanic industries.
The RMB2 billion investment will mainly focus on the advancement of emerging oceanic industries, the development as well as protection of important islands, the expansion of bulk commodity exchange centers, and the improvement of port logistics information interconnection as well as interchange throughout Northeast Asia. Continue reading