In what is fast becoming a rite of passage for Chinese leaders, President Xi Jinping has decreed that the Xiongan New District be created in Hebei, about 160 km south of Beijing. The area will be developed with similar incentives and infrastructure that were put in place with the creation of Shenzhen and the Pudong New Area by predecessors Deng Xiaoping and Jiang Zemin.
The Xiongan New District is set to include Anxin, Rongcheng, and Xiongxian counties around Hebei’s Baiyangdian Lake. It will initially be a 100 km2 area but will expand to more than 2,000 km2 over time, and will house facilities such as markets, schools, research institutions, and hospitals that will be relocated from Beijing. The area is expected to form a triad between Beijing, Tianjin, and Hebei.
China Raises Consumption Tax on Cigarettes
Earlier this month, the Ministry of Finance and the State Administration of Taxation jointly announced that the consumption tax rate of cigarettes would be raised from the current 5 percent to 11 percent starting May 10. Further, a special duty of RMB 0.005 would be imposed on each cigarette. Consumption tax in China is levied on five categories of products:
- Products the over-consumption of which is harmful to health, social order and the environment (such as tobacco, alcohol, and fireworks)
- Luxury goods and non-necessities (such as precious jewelry and cosmetics)
- High-energy consumption and high-end products (such as passenger cars and motorcycles)
- Non-renewable and non-replaceable petroleum products (such as gasoline and diesel oil)
- Financially significant products (such as motor vehicle tires)
By Rainy Yao
As the capital of China’s Heilongjiang province, Harbin is a key political, economic and cultural center in Northeast China. Due to its close proximity to Russia, the city serves as the country’s gateway to trade with Russia and hosts the China-Russia Expo every year.
Many Russian immigrants made Harbin their home in the early 20th century. Since the 1950s it has become a hub for mining and steel production. In this article, we explain how the ‘Ice City’ is turning out to be one of the fastest growing regions in the country with its unique geographic location and sound transport network.
In 2013, Harbin’s GDP reached RMB 501.08 billion, up 8.9 percent from the previous year. The city’s primary industry contributed RMB 59.26 billion of its total GDP, and its secondary industry RMB 174.39 billion. With RMB 267.43 billion, the service sector accounted for more than 52 percent of the economy. The statistics for 2014 have not yet been released, but during a meeting in January 2015 the Harbin government was able to say that the city’s GDP has been growing at a stable rate.
By Rainy Yao and Steven Elsinga
Chinese Premier Li Keqiang announced on December 12 that three more Free Trade Zones (FTZ) will be established in China, based on the model of the Shanghai FTZ, which was launched in September of last year.
The three new FTZs will be set up in Tianjin, Guangdong province and Fujian province. Each is to make full use of its geographic location and carry special local features. The announcement confirmed long speculation that a next wave of FTZs would be launched around the areas of the Pearl River Delta (Guangdong province), Bohai Bay (Tianjin, Beijing and Hebei province) and Xiamen (Fujian province). Continue reading…
By Adam Livermore, Partner & Regional Manager, Dezan Shira & Associates
Earlier this month, the Dalian Local Tax Bureau issued a notification to companies in the region informing them that they are required to pay a levy to the Dalian branch of the All China Federation of Trade Unions (ACFTU). The levy for companies that have not set up their own trade union internally within their organization is two percent of the entire monthly salary of their employees (including bonuses, overtime payments and other special payments). The payment is requested on a monthly basis. For companies that already have their own union set up, the levy will be only 40 percent of this amount. We believe that most foreign invested companies in Dalian will fall into the former category. Continue reading…
By Rainy Yao
Dalian: The Pearl of Northern China
As the biggest free trade port in Northern China, Dalian is a modernized international shipping metropolis serving as a gateway to Beijing and Tianjin. In this article, Rainy Yao from Dezan Shira & Associates takes a look at this national garden city with abundant commercial opportunities. 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…
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…