Shanghai FTZ Further Revises FIE Regulations
The State Council recently released the “Decision on Temporarily Adjusting and Implementing the Special Administrative Access Measures in the China (Shanghai) Free Trade Zone (Guo Fa  No.38),” which took immediate effect. According to the Decision, wholly foreign-owned enterprises (WFOE) have been newly approved in certain industries such as:
- Research and application of new technologies for petroleum exploration and development;
- Research, development, design and manufacture of passenger service facilities and equipment to support high-speed rail, dedicated railway passenger lines and urban railways; and
- Design of luxury cruisers and yachts.
A total of 27 liberalization measures were introduced for business scope items and foreign equity ratios.
China to Launch Coal Tax Reform
The Chinese government recently announced plans to launch a coal reform program, including a coal resource tax to be levied on an ad valorem basis – meaning that the rate will be set based on the resource price rather than quantity. In order to reduce the burden on the coal industry, other coal-related fees shall be cancelled, including the coal price regulation fund, ecological compensation fund for primary mineral products and local economic development charge. The reforms, which will begin on December 1, 2014, are aimed at promoting energy savings and emissions reductions.
RELATED: The East is Green: The Future of China’s Environmental Regime (Part 1 and 2)
RMB-Euro Direct Trading Opens
On September 29, the People’s Bank of China (PBOC) announced that China would allow direct trading between the yuan and the euro from September 30, 2014. Direct trading is expected to promote the internationalization of the renminbi, according to Ryan Song, Head of Global Markets at HSBC China. According to official data, bilateral trade between China and Europe reached US$291 billion in the first half of this year alone, growing at 12 percent year on year. The euro is now the sixth foreign currency to allow direct trading with the yuan – the others being the Japanese yen, Australian dollar, New Zealand dollar, Malaysian ringgit and Russian ruble.
China Implements Measures to Strengthen Imports
An executive meeting of the State Council, held by Premier Li Keqiang, has released a package of policies to strengthen imports and promote further liberalization of the industry. The meeting clarified that the import of advanced technical equipment and key components shall be highly encouraged. As a result of the meeting, China will adjust the “Catalog of Encouraged Imported Technology and Products”; further support enterprises engaged in import equipment financing and leasing services; and improve import tax policies for products connected with scientific and technological development. These measures come as a response to China’s declining imports volume and the likelihood of missing trade targets for a third consecutive year. In the first five months of this year, the country’s import volume was decreased by 1.6 percent (RMB 4.9 trillion).
Revisiting the Shanghai Free Trade Zone: A Year of Reforms
In this issue of China Briefing, we revisit the Shanghai FTZ and its preferential environment for foreign investment. In the first three articles, we highlight the many changes that have been introduced in the Zone’s first year of operations, including the 2014 Revised Negative List, as well as new measures relating to alternative dispute resolution, cash pooling, and logistics. Lastly, we include a case study of a foreign company successfully utilizing the Shanghai FTZ to access the Outbound Tourism Industry.
Adapting Your China WFOE to Service China’s Consumers
In this issue of China Briefing Magazine, we look at the challenges posed to manufacturers amidst China’s rising labor costs and stricter environmental regulations. Manufacturing WFOEs in China should adapt by expanding their business scope to include distribution and determine suitable supply chain solutions. In this regard, we will take a look at the opportunities in China’s domestic consumer market and forecast the sectors that are set to boom in the coming years.
Industry Specific Licenses and Certifications in China
In this issue of China Briefing, we provide an overview of the licensing schemes for industrial products; food production, distribution and catering services; and advertising. We also introduce two important types of certification in China: the CCC and the China Energy Label (CEL). This issue will provide you with an understanding of the requirements for selling your products or services in China.