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
Jun. 3 – The new issue of China Briefing Magazine, titled Sourcing from China, is out now and will be temporarily available as a complimentary PDF download on the Asia Briefing Bookstore throughout the month of June.
While the United States and Europe continue to lead in the production of top-end manufacturing and smart technologies, China is slowly but surely climbing the technology ladder, and is actively trying to raise the human capital and managerial skills needed to lead such growth. Meanwhile, China continues to outpace competitors in the mass production of those basic, low value-added products necessary in the daily lives of people around the world. It has also managed to develop a fast and efficient national network of roads, railways, ports and airports coupled with a first-tier integrated logistics system. On top of these structural accomplishments, China has created a skilled workforce capable of producing anything an engineer can design, and a comprehensive supply chain that sources energy and raw materials from around the globe. Continue reading
Posted in Business, Central China, East China, FDI and Foreign Trade, Featured, Legal and Regulatory, Manufacturing, Markets, Northeast China, Shipping & Logistics, South China, Textiles, West China
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
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