China Briefing News



China to Fine-Tune its Stimulus Plan (Mar 11)
Mar. 11 – China will reform the RMB exchange rate in a gradual and controlled manner and Chinese economic stimulus plans will be continuously implemented but fine-tuned, China’s Minister of Commerce Chen Deming said before the National People’s Congress on March 8. Chen explained that all of China’s current financial policies, including the policy of the [...]


Illegal Use of Company Chops Seemingly Endorsed in Beijing Court Ruling (Mar 10)
Mar. 10 – A court in Beijing has awarded an employee of a foreign-invested advertising company RMB400,000 for wrongful dismissal after the employee was fired when she established a trade union using the company’s chop without permission, China National Radio reported on Tuesday. The former human resources manager at R&D Advertising in Beijing, identified as Ms. [...]


New Board to Bring Major Multinational Firms to Mainland Soon (Mar 10)
Mar. 10 – The Shanghai Stock Exchange completed draft listing and trading rules of its international board which will allow overseas companies to float shares in China’s A-share market, SSE Chairman Geng Liang said on Monday. The draft rules are completed, but they are still working on the details, and the revised rules will be available [...]


RO Chief Representatives May Consider Power of Attorney in Tax Questioning (Mar 9)
Op/Ed Commentary: Chris Devonshire-Ellis and Richard Hoffmann Mar. 9 – With foreign company representative offices coming under intense scrutiny at the present time due to the changes in tax treatments levied from January 1, 2010, pressure is now on the chief representatives of China-based ROs to fully comply with tax audits and questions raised over their [...]


China to Loosen Publishing Laws (Mar 9)
Mar. 9 – China is set to permit private investors to take a role in mainland publishing, the first time this will be permitted since the Communist party came to power in 1949. China’s General Administration of Press and Publication stated last year that it would dilute the monopoly held by state publishing companies and to [...]


Morgan Stanley Divests Assets as Mainland Property Growth Rises 16% (Mar 9)
Mar. 9 – Morgan Stanley is divesting its mainland China property assets and has sold off US$700 million worth of assets in the past year, the latest being its 50 percent holding in a Foshan residential project, which it has sold back to the developer for US$25million. Other sales that have taken or are taking place [...]


China Curbs Property Speculation to Avert Real Estate Bubble (Mar 8)
Mar. 8 – Whether or not it is an appropriate time to launch a property tax and curb skyrocketing housing prices in China has aroused hot debate at the annual sessions of the National People’s Congress, China’s top legislature, and the Chinese People’s Political Consultative Conference, the top advisory body. China reintroduced a nationwide real estate [...]


China RO vs. FICE (Mar 5)
Op/Ed Commentary: Chris Devonshire-Ellis and Richard Hoffmann Mar. 5 – Recent changes in China’s tax treatment of representative offices in the country have started to push the viability of using RO as a vehicle of “investment” into China in terms of increasing financial pressure. While often stated as being an “investment” vehicle, alongside wholly foreign-owned enterprises and [...]


SAT Increases Deemed Profit Rates for Non-Resident Enterprises (Mar 5)
Mar. 5 – The State Administration of Taxation has increased the corporate income tax deemed profits rates for non-resident enterprises carrying out services or projects in China. Under Guoshuifa [2010] No. 19, issued on February 20, unless a resident enterprise is able to provide accurate accounting records, CIT liability for services or projects carried out in [...]


Expatriates Going Offshore in China Contracts? Think Again (Mar 5)
Op/Ed Commentary:Chris Devonshire-Ellis and Richard Hoffmann Mar. 5 – One symptom of the tightening of China’s economy and the impact of labor law is an increasing desire by Chinese employers to offset or reduce potential liabilities with their expatriate employees, such as expatriates employed by domestic Chinese companies being asked to establish an offshore company and [...]