Legal & Regulatory

SEPA removes five more areas from blacklist


China’s environmental watchdog removed three cities and two industrial zones from its blacklist only a week after taking out five other areas. The removal of the additional cities and industrial zones leaves only one county and two industrial zones on the list: Hejin county in north China’s coal base of Shanxi province, Lanzhou High-Tech Industrial […]

Local labor rules come into conflict with new national law


By Cathy Gao/Dezan Shira & Associates SHANGHAI, Sept. 26 – Currently in China, labor contracts are regulated by the Labor law of the PRC and over 25 separate employment contract regulations by individual provinces and cities. These current regulations and rules are now being challenged by the recently passed Contract Labor, set to take effect […]

Policy shift on guarantee deposits for processing trade


Process manufacturers are now able to pay standing book deposits with bank guarantees rather than cash according to a statement released by the Ministry of Commerce on Wednesday. Notice No. 71, jointly released by the Ministry of Commerce, China Customs, and the China Banking Regulatory Commission, stipulates the ways by which enterprises engaged in processing […]

Tax inspection on offices premises in Shanghai


Earlier this year, a new policy of conducting an on-sight tax inspection for any new representative office (RO) or wholly foreign owned enterprise (WFOE) has come into practice in Shanghai. Under this current practice, the tax inspection on the office premises will have to be conducted before tax registration can begin. Because the tax officer […]

Overseas bourses now allowed representative offices on mainland


Aug. 31 – As the China Securities Regulatory Commission announced earlier this year, foreign stock exchanges are now able set up representative offices to promote their organizations and conduct research on the mainland. The Measures for the Administration of Foreign Stock Exchanges’ Representative Office in China, which came into effect July 1, permits overseas bourses […]

New restrictions on processing trade come into effect


China announced a new policy restricting processing trade in an effort to reduce a growing trade surplus. As approved by the State Council, the Ministry of Commerce and the General Administration of Customs jointly issued Announcement No. 44 introducing a new catalogue of restricted commodities on July 23. The new policy, which took effect August […]

China looks to deal with rising number of labor disputes


State media announced today that China’s top legislature started to read the draft law on labor dispute mediation and arbitration on Sunday amid an increasing number of labor disputes that emerged in the country. “The draft bill has summed up the experience in solving labor disputes, which also takes new situation and problems into account. […]

Additional post-establishment requirements for companies leasing properties in Shenyang


Shenyang is currently a hotbed for foreign investment, particularly in the high-end retail, real estate and manufacturing sectors. When establishing a company or a branch office the State Tax Bureau requires a Certificate of Tenancy to be issued by the Housing Management Bureau. This sounds straightforward enough, however in order to obtain this document a […]

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