Category Archives: China

New Policy in Beijing-SMEs in Zhongguancun Eligible for Import and Export Soft Loans

The Zhongguancun Administrative Committee and the Export-Import Bank of China (China Exim Bank) have recently signed a strategic cooperation agreement. In future, both sides will offer specialized financing support to small and medium-sized enterprises (SMEs) in Zhongguancun so that they …

Leadership Transition and Economic Policy

During the next two weeks – November 8th to 14th, to be specific -, the Communist Party of China will hold its 18th National Congress in Beijing. On this occasion, the Politburo as well as its Standing Committee – the …

A Broader Perspective on the Third Quarter

Last week has seen a confusing mixture of signals concerning the development of China’s economy (see Friday’s blog post). As 2012’s third quarter – the last before the big leadership transition – draws to a close, what can be said …

China’s February Foreign Direct Investment Increases 32.2%

Foreign direct investment in China climbed in February, indicating investor confidence in the world’s second-biggest economy. Investment rose 32.2 percent to $7.8 billion last month from a year earlier, the Ministry of Commerce said in a statement on its website …

Chinese Premier sets 7% growth target

An annual growth target of 7 percent over the 12th Five-Year Plan (2011-2015) has been set to ensure sustainable development, Premier Wen Jiabao said on Sunday. “We must not any longer sacrifice the environment for the sake of rapid growth …

China attracts 106 billion dollars in direct investments

China attracted record-high direct investment volume – 106 billion dollars in 2010, which is a leap of 17.4%, compared to the previous year. An opposite tendency was observed in 2009, when investments shrunk by 2.3%. Last year, approximately 20% of …

New Regulation on Administration of Representative Offices in China

On November 19, 2010 the State Council promulgated Regulation of the Administration of Representative offices of foreign enterprises (order of the State Council no. 584). Regulations will come into effects on March 1, 2011. The previous Regulations provided that Representative …

China allows foreign institutions to open RMB accounts

The People’s Bank of China end of September released regulations to allow foreign institutions to open cross-border RMB-settlement accounts at locally registered banks from Oct. 1, which will further expand its ongoing RMB-settlement trial program. According to the rules published …

New Taxation Rules for Representative Offices of Foreign Enterprises in China

On February 20, 2010, the State Administration of Taxation issued the Provisional Measures for Tax Collection and Administration for Foreign-Enterprise Representative Office (“Provisional Measures”).  The Provisional Measures bring significant changes to the existing taxation rules and may have significant implications …

WFOE Registration-Office Address

Before starting to set up a WFOE in China, the client has to rent an office or a plant (for manufacturing company) in advance. The office could be located in any normal office building in China which could run business. …