Legal & Regulatory

Beijing Lifts Restrictions for Foreigners Buying Real Estate

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Jan. 26 – The Beijing government has lifted restrictions on foreigners wanting to purchase real estate in an effort to lift the slumping property market. For this year, the residency requirement and house type limits that applies for foreign expatriates have been removed. Previously, only expatriates that have resided in the capital for more than […]

Salary Reduction Under China’s Labor Law

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By Chris Devonshire-Ellis Jan. 23 – With many businesses facing economic problems, the legal focus of business in China is shifting to an understanding of the implications of the new labor law, and specifically, its provisions for the reduction of staff salaries. The Labor Law is not specific on the reductions of salaries due to […]

China Releases New Business Tax Rule for Service Contracts

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By Sabrina Zhang Jan. 22 – China’s State Administration of Tax (SAT) has passed a surprise amendment concerning the calculation of Business Tax (BT) effective January 1st. The new rule changes the BT levying principle and affects all overseas companies contracting labor and services to other companies or people based in China. The former BT […]

China’s New Forex Regulations

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Jan. 5 – Due to the significant transformation undergone in Chinese economy, the State Council of the People’s Republic of China issued the new “Regulations on the Administration of Foreign Exchange of China” effective August 1, 2008. Under these new regulations, more emphasis is placed on the administration of inflow and outflow of foreign exchange. […]

China Increases Export Tax Rebates

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Jan. 5 – China’s Ministry of Finance announced that it will further increase tax rebates for exports including 533 hi-tech and machinery products beginning this year as its way of aiding the export market that has been hard hit by the global economic slowdown. Businesses exporting industrial robots and airplane navigation systems can now avail […]

China JV Quality Problems: Time to Increase the Permissible Value of the Foreign Partner’s Brand

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By Chris Devonshire-Ellis Dec. 26 – 2008 has brought with it an apparently never-ending slew of problematic quality issues from MNC’s with substantial JVs in China, with no signs either that this is set to end anytime soon nor any pointers to the phenomena being industry specific. While international management must also carry part of […]

China to Establish Social Security Fund

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Dec. 23 – China announced plans Monday to establish a social security number system for the welfare of its citizens. State media reported on Tuesday that the draft of the social insurance law was discussed by the Standing Committee of the 11th National People’s Congress, the country’s top legislature, on Monday. According to the draft, […]

China Raises Money Supply to Help Liquidity

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Dec. 15 – China’s State Council has announced that it would increase money supply growth from 16 percent to 17 percent to stabilize the capital market and aid the slowing economy. The new figure is 3 to 4 percentage points above the total growth of economic output and consumer prices. The measure comes three days […]

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