China’s growing consumer market to be serviced from Asia
Op-Ed Commentary: Chris Devonshire-Ellis
China agreed to a full Free Trade Agreement with ASEAN, effective from 2010, yet the implications of this, given the preoccupation with the global financial crisis, are only now starting to become apparent. What this agreement does is to eliminate import-export tariffs and barriers on some 90 percent of all products traded between China and the ASEAN member states. ASEAN is a ten member Asia trade bloc, including the Asian Tigers of Singapore, Indonesia, Malaysia, Philippines and Thailand, all of whom have already reduced tariffs (and China has done in reciprocity) on the majority of traded products between them. By the end of next year, the same will also apply to the other ASEAN members of Cambodia, Laos, Myanmar and Vietnam. Continue reading
As China becomes increasingly unified through its many tax treaties, trade and political developments with its neighboring countries in Asia, we take a look at some of the Asian news this month of strategic interest to China-focused executives. As China changes, so does Asia and this bulletin provides you with the market intelligence as what is going on beyond China’s own borders. Continue reading
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
SHANGHAI – To further enhance financing support for cross-border investment and trade, the Shanghai office of the People’s Bank of China (PBOC), the mainland’s central bank, has allowed companies based in the Shanghai free trade zone (FTZ) to conduct offshore RMB borrowing.
The Shanghai PBOC recently promulgated the “Notice concerning Support to Further Expand the Cross-Border Usage of RMB in the China (Shanghai) Pilot Free Trade Zone” (hereinafter referred to as the “Notice”), which simplifies the procedures for using RMB across the border under current account and direct investment items within the Shanghai FTZ. The Notice outlines the scale allowed for offshore RMB loans and the scope of using the borrowings. It also specifies some innovative services that will be offered in the Shanghai FTZ, such as cross-border E-commerce settlement and RMB exchange services. Continue reading
Minimum Registered Capital Requirements To Be Abolished
SHANGHAI – To further lower the requirements for registering new businesses in China, the State Council, China’s cabinet, recently revealed their scheme for the reform in business registration. The scheme is a vigorous move in executing the objectives determined in the Third Plenum last year to establish an open and competitive market. Decisions made in the Third Plenum after the enthronement of a new leadership in China usually serves as an indication of how the country will be led for the next decade.
China amended its Company Law at the end of 2013. The new law will remove the registered capital requirements for company establishment, replace the paid-up capital registration regime with a subscribed capital registration regime, and will remove the minimum cash contribution requirement. The new Company Law will come into force on March 1, 2014. Continue reading
Key Value-Added Tax Regulatory Updates:
Caishui  No. 106 – VAT Pilot Reform Expansion
On August 1, 2013, the value-added tax (VAT) pilot reform was implemented nationwide, as formalized by the promulgation of the Notice Concerning the Nationwide Adoption of VAT in lieu of BT Pilot Tax Collection Policy in the Transportation Industry and Certain Modern Service Industries (Caishui  No. 37, Circular 37) by China’s Ministry of Finance (MOF) and the State Administration of Taxation (SAT) on May 24, 2013. In early December 2013, China’s State Council revealed the further expansion of the VAT reform to the railway transportation and postal service industries, and the MOF and the SAT jointly released the Notice Regarding the Inclusion of Railway Transportation and Postal Service Industries under VAT in lieu of Business Tax Pilot Reform (Caishui  No. 106, Circular 106), which came into effect on January 1, 2014, abolishing Circular 37. Continue reading
SHANGHAI - In this exclusive China Briefing interview, Dezan Shira & Assocites’ audit expert Ivy Gu discusses the annual audit process for foreign invested enterprises operating in China and highlights the resulting due diligence benefits, such as the development of efficient internal controls. Continue reading
Knowledge of China’s ASEAN FTA is Critical when Dealing with Increasing Wage Cost Concerns
Op-Ed Commentary: Chris Devonshire-Ellis
China has developed a strategic position when it comes to entering into free trade agreements – the policy of allowing dutiable and tax reduction on certain products and services being one of the main cornerstones that has projected the nation to be the world’s manufacturing hub over more recent years. Without doubt, the signing of the China-ASEAN FTA is and will continue to have a huge impact on China and Asia’s development in global sourcing and the foreign investment related to this.