China Regulatory Brief: Work Injury Insurance and Steel Dumping Duties
China Social Security Bureau Clarifies Issues Concerning Work Injury Insurance
The Ministry of Human Resources & Social Security (MOHRSS) recently issued the “Opinions on Several Issues Concerning the Implementation of the Regulations on Work Injury Insurance.” It clarifies that employers should enroll employees in work injury insurance even if their place of registration and place of operation are not under the same overall arrangement. Employees that are not enrolled in a work injury insurance scheme in the place of registration can be enrolled by the employer to a work injury scheme at the place of operation. In addition to this, the Opinion also explains that in cases where construction enterprises enroll in insurance schemes on a project basis, work injury insurance must be enrolled at the project location.
SAIC Revises Four Rules and Regulations for Foreign Enterprises
Approved by the State Council, China’s Administration for Industry and Commerce (AIC) recently released the “Decision on Repealing & Revising Certain Rules & Regulations (Draft for Comments).” The Decision aims to revise four rules and regulations regarding foreign-invested enterprises, and is currently seeking public opinions and comments. According to the Decision, the Central Government will delegate the authority of approving matters related to foreign investment into China’s domestic production and operation to the provincial level government, and transform the current annual inspection system for foreign enterprises to an annual report system. Furthermore, China will empower more local AIC bureaus to approve foreign-invested projects in their own administrative regions.
China Announces Steel Dumping Duties
The Ministry of Commerce (MOFCOM) has announced its decision to levy anti-dumping duties on imports of grain-oriented flat-rolled electrical steel originating from the EU, Japan, and South Korea. Preliminary duties between 14.5 and 46.3 percent have been imposed, following accusations that imports from the aforementioned regions have hindered the Chinese steel industry. The MOFCOM has also announced that it would impose anti-dumping duties on acrylic fibers from Japan, South Korea, and Turkey, ranging between 6.1 and 17.8 percent.
VAT Revenues to be Split Equally between the Central Government and Local Governments
Along with the country’s massive value-added tax (VAT) reform, China is looking to rebalance and transform the relationship between the central government and the local governments. Considered one of the top three tasks of the fiscal/tax reform, this move is expected to have a huge positive impact on the country’s tax collection system. The transitional scheme will see VAT revenue split equally between the two systems, with an emphasis on the stability of the scheme. Simultaneously, the proportion of division of consumer tax and VAT to be incrementally introduced depending on the progress of the VAT reform after the central government solicits the opinion of the local authorities.
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