Northeast China

SAFE Requires Additional Documents for Foreign Exchange Settlement

Sept. 8 – The State Administration of Foreign Exchange (SAFE) issued the “Supplementary Circular on Issues Relating to Improving Business Operations with Respect to the Administration over Payment and Settlement of Foreign Exchange Capital of Foreign-invested Enterprises (Huizongfa [2011] No. 88, ‘Supplementary Circular’)” on July 18, 2011, which came into effect on August 1, 2011. The Supplementary Circular, promulgated on the basis of Huizongfa [2008] No. 142 (“Circular 142”), stipulates additional documents that enterprises should provide when applying for foreign exchange capital settlement, as well as imposes on banks the obligation to examine and verify the authenticity of the invoices related to and the usage of RMB funds obtained from enterprises’ foreign exchange capital settlements. Continue reading →

Posted in Finance, Tax and Accounting, Legal and Regulatory, Northeast China, Regulatory Update, South China | Leave a comment

Beijing FIEs Now Subject to Labor Union Fees

Aug. 30 – From July 2011, foreign invested enterprises (FIEs) in the pilot areas of Beijing (Dongcheng, Xicheng, Chaoyang, Mentoutou and Shunyi District) will be required to pay labor union fees, according to a recent announcement made by the Beijing Labor Union.

In addition, an FIE with more than 25 employees is required to either establish a labor union by itself, or join the community labor union. Smaller FIEs with less than 25 employees can only join the community labor union. Each enterprise is required to submit an application letter together with other application documents to the designated local tax authority. The local tax authority will then review the documents and give you instructions on how to join the community labor union or establish an independent labor union. Establishing an independent labor union involves more procedures and is thus more time-consuming and complicated than joining the community labor union. Continue reading →

Posted in Finance, Tax and Accounting, Legal and Regulatory, Northeast China, Regulatory Update | Leave a comment

Calculation of Maternity Benefits to Change in Dalian

By Adam Livermore

Aug. 30 – In addition to amendments to the social insurance system in Dalian (explained here yesterday), the northeast city has also implemented an amendment to the maternity benefit policy.

From this month, employees on maternity leave will no longer enjoy their full salary during the period of maternity leave (normally five months in Dalian). Instead they will receive a figure equal to the average monthly salary earned by the employees during the previous fiscal year at the company they are working for. Continue reading →

Posted in Legal and Regulatory, Northeast China, Regulatory Update | Leave a comment

Dalian-based Employers to Face Higher Social Insurance Costs. Other Cities to Follow?

By Adam Livermore

Aug. 29 – On August 25, the northeast Chinese city of Dalian released a new policy set to come into effect from September 1, 2011, stating that the calculation for the employer contribution of social insurance costs on behalf of their employees will change. The effect of this change is going to have a considerable negative effect on some companies based in the city. The changes can be summarized in two portions:

The base on which monthly contributions are calculated will be changed. Previously (as is the case in most cities across China), the average monthly salary of the employee during the previous year would be used as the social insurance contribution base for both the employer and the employee. This amount would be multiplied by 31.4 percent (the total social insurance contribution percentage in central Dalian) to derive the amount of contribution required from both employer and employee. However, starting from September 1, the employer portion of the social insurance payment will be based on the total previous month’s salary received by the employee. Continue reading →

Posted in Business, Finance, Tax and Accounting, Legal and Regulatory, Northeast China, Regulatory Update | 2 Comments

Will Kim’s Russia Visit Help Develop China’s Northeast?

Op-Ed Commentary: Chris Devonshire-Ellis

Aug. 22 – With the North Korean leader Kim Jong-il on his first visit to Russia in nine years, questions can be asked about how much this means for the redevelopment of much of the Northeast Asia seaboard, including that of Northeast China.

For Kim – who also visited Beijing and Dalian in May this year – to have undertaken visits to both his allied neighbors within such a short period of time is unusual. He is apparently fearful of travel, refuses to fly, and only goes abroad via a specially armed train. His son however, heir apparent Kim Jong-un, has been Swiss educated and appears rather less paranoid – although his ability to take aircraft journeys will no doubt be tested once he takes the reigns. Assassination by aircraft malfunction has long been a feature of hard-line communist regimes. Continue reading →

Posted in Economy and Politics, Markets, Northeast China | Leave a comment

New Complimentary China City Guides Available from Asia Briefing

New city guides released for Shanghai, Beijing, Hong Kong, Shenzhen, Guangzhou, Dalian, Tianjin, Qingdao, Hangzhou, Suzhou, Ningbo, and Zhongshan.

Jul. 6 – Asia Briefing has just revised and updated its China City Guide series – offering readers a brief and easy to read, yet immensely informative, introduction to 12 cities across China.

Compiled based on our own local resources and expertise, and in cooperation with Dezan Shira & Associates, these guides present the investor with a real picture of the economic conditions in some of China’s most important cities. Continue reading →

Posted in Business, East China, Economy and Politics, FDI and Foreign Trade, Featured, Markets, Northeast China, South China | 1 Comment

New Development Zone in Tianjin to Further Boost FDI

Jul. 4 – Tianjin has been historically regarded as one of the major trading centers in China for its convenient location, abundant natural resources, and rich culture. Today, Tianjin is still regarded as a major trading hub, as it can be seen in the economic success of the area. In 2010, Tianjin’s GDP hit roughly US$140 billion with a year on year growth rate of 21.4 percent. Total exports and imports amounted to US$82.2 billion. Continue reading →

Posted in Business, Northeast China | Leave a comment

Russia’s Vladivostok to Boom as China Cuts Mineral Exports

China gets sidelined as global trade routes re-open further north

Op-Ed Commentary: Chris Devonshire-Ellis

May 24 – The Far Eastern Russian city of Vladivostok is set to experience a boom as concerns over China’s aggressive slashing of mineral exports dictate the need for new supplies. Circumnavigating the need to export vital commodities either through or from China is fast becoming a major policy. China’s exports of rare earths accounted for 90 percent of the global supply until last year, however it has drastically reduced its export quota of rare earths from 50,000 tons annually to just 8,000 tons this year. Continue reading →

Posted in Economy and Politics, FDI and Foreign Trade, Markets, Northeast China | Leave a comment