China is set to lose out as the United States Senate voted on June 23rd to allow the much-vaunted Trans-Pacific Partnership free trade deal to go ahead. That senate deal effectively paved the way for the TPP to progress unimpeded and prevents Congress from interfering with negotiated trade agreements.
China recently launched three new FTZs in Guangdong, Tianjin and Fujian. In this last part of the Free Trade Zone series, we concentrate on the Fujian FTZ, which is mainly aimed at strengthening the economic ties with Taiwan and further opening up its financial sector for foreign investors.
China became the world top destination for foreign direct investment (FDI) in 2014 and is moving toward a more open foreign exchange market. Foreign companies will be allowed to convert their foreign exchange capital into RMB from designated banks in unlimited amounts starting June 1.
Chris Devonshire-Ellis discusses some of the tax issues relevant to foreign investors. He points out how lack of awareness of crucial tax issues may end up being costly for foreign investors.Staying informed of these issues can significantly impact the bottom line.
Hong Kong’s Advanced Pricing Program allows companies to get clarification from the tax authorities on whether a transaction is considered transfer pricing. These agreements become possible once Hong Kong has a DTA with the country or countries in question.
Given the recent problems American trading companies are having in establishing bank accounts in Hong Kong, alternatives need to be found. Singapore presents the most viable option available to foreign investors for a host of reasons, says Chris Devonshire-Ellis in this op-ed.
Over the next five to ten years, China will increase the size of its general aviation fleet by roughly 30 percent annually, a total value of $159 billion, leading to considerable opportunities for foreign investment in the country’s aerospace and aviation industry.
Research conducted by Dezan Shira & Associates on foreign investment between Scotland and China has revealed a paucity of related statistics, suggesting that the country is not mature enough in its institutions to go it alone when looking to attract FDI.