By Xiaolei Gu

May 4 – China’s Ministry of Commerce released the 12th Five-Year Plan (FYP) for Foreign Trade Development last week, which aims at an annual growth of 10 percent during 2011-2015 and a total of US$4.8 trillion by 2015.

The 12th FYP outlines the fruitful achievements made during the 11th FYP, analyzes the new domestic and international environment for foreign trade, and identifies challenges and opportunities during 2011-2015. More importantly, it lays out the development goals accompanied by the major tasks and protective measures necessary to achieve the goals. Below is a brief summary of the key information taken from the 12th FYP for Foreign Trade Development. Continue Reading

May 3 – Patrick Chovanec, an economist and associate professor at the Tsinghua University School of Economics and Management expressed skepticism about China’s key economic figures in a recent article in the South China Morning Post.

“If investment merely remains stable compared to last year, you could lose 5 percentage points off GDP growth, bringing it to 4.5 percent,” Chovanec says.

Chovanec also cites examples of inflation, which he says is far higher than the Chinese government admits. Fresh milk he has delivered in China has increased in price by 33 percent over the past 12 months while over the last three years a KFC meal has increased by 53 percent and petrol by 50 percent. Continue Reading

Dezan Shira & Associates founder to speak on China, India, Vietnam and emerging Asia

May 3 – Chris Devonshire-Ellis, founding partner of Dezan Shira & Associates, will be providing a keynote address at the annual U.S. Department of Commerce Trade Winds Asia event, held this year in Singapore from May 16 to May 18.

This program, now in its fifth year, promises to deliver tangible bottom-line results, as demonstrated by a proven track record of success in Turkey (2008), Poland (2009), Brazil (2010) and Mexico (2011), attracting well over 1,000 international business executives from across the United States.

As an official U.S. Department of Commerce multi-sector trade mission, Trade Winds Asia offers participants a unique venue for connecting to business opportunities in Asia. Singapore, the host city for Trade Winds Asia, is an ideal launching point for expansion throughout the region. Continue Reading

May 2 – In a report to the National People’s Congress Standing Committee on April 25, Deputy Minister of Public Security Yang Huanning noted that the government will reinforce its management of foreign nationals who have entered China illegally, have overstayed their allotted time, or who are illegitimately working in the country. Continue Reading

The path to power in China is still dominated by revolutionary political divisions

Op-Ed Commentary: Chris Devonshire-Ellis

May 2 – Recent events in China, ranging from the jostling of power for seats on the Central Commission for the CCP, the downfall of Bo Xilai, and the recent escape of activist Chen Guangcheng from house detention in Shandong have all displayed to varying degrees the changing faces of China’s evolution. In fact, in over 20 years in China I have never personally seen anything quite like the vying for influence being acted out in today’s contemporary political scene. The fact that they are observable at all says perhaps rather more for certain factions that are involved in the path for reform than the oft-lauded “freedom via internet” that many believe is behind an unprecedented media coverage of the struggles and power plays currently underway. Continue Reading

May 1 – The State Administration of Taxation (SAT) issued an announcement at the beginning of the year further regulating the value-added tax (VAT) treatment on the sales of used fixed assets. The “Announcement on VAT Issues Concerning the Sale of Self-used Fixed Assets by VAT General Taxpayers (SAT Announcement [2012] No.1, hereafter referred to as ‘Announcement 1’),” specifies two situations under which the sales of used fixed assets are subject to VAT at 4 percent with a 50 percent reduction. Continue Reading

Apr. 30 – In a meeting with a delegation from the American Institute of Certified Public Accountants on Monday, April 23, Deputy Minister of Finance and President of the Chinese Institute of Certified Public Accountants, Li Yong, emphasized the importance of communication and cooperation between China and the United States in the field of accounting. He noted that such dialogue not only conforms to the trend of global governance in international accounting, but also serves the interest of the strategic economic and trade partnership between China and the United States.

Li put forward the role and performance of public accounting in China and the future development of the industry in China during the visit of the U.S. delegation. Continue Reading

Apr. 30 – The new issue of China Briefing Magazine, titled Hong Kong and Singapore Holding Companies, is out now and immediately available as a complimentary PDF download on the Asia Briefing Bookstore.

While a variety of exotic locations are excellent options for holding company establishments in terms of tax and administrative efficiency, a majority of SMEs choose Hong Kong holding companies for their China investments due to its geographical proximity. But for foreign investors looking to invest in China “and beyond,” Singapore is looking increasingly appealing as a holding company destination.

In this issue of China Briefing, we take a closer look at the benefits of both Hong Kong and Singapore holding companies, how to establish and maintain a company in each of these jurisdictions, and the relevant double tax agreements. Continue Reading