Foreign Direct Investment

Following a surge of investment in China’s general aviation sector around 2013, the sector has experienced down-turns due to the overall slowing of the economy in 2015.  On May 17, 2016, the General Office of the State Council announced a guideline to boost China’s general aviation (“GA”)[1] industry, named the Guiding Opinions to Promote the Development of the General Aviation Industry (Guo Ban Fa [2016] No. 38) (“Guideline”).  The Guideline marks the first time the state council, the highest administrative organ, has made plans to boost the development of China’s GA industry[2].
Continue Reading State Council Issues Guideline to Boost General Aviation Industry

The Ministry of Transportation issued the revised Provisions on the Administration of Business Licensing for General Aviation (Order of the Ministry of Transportation [2016] No. 31)(“Order No. 31”) on April 7, 2016.  Order No. 31, which became effective on June 1, 2016 amended the Provisions on the Administration of Business Licensing for General Aviation issued by the Civil Aviation Administration of China in 2007 (Order of the Civil Aviation Administration of China [2007] No. 176) (“Order No. 176”).
Continue Reading The Revised Provisions on the Administration of Business Licensing for General Aviation

On January 29, 2016, the State Administration of Taxation, the Ministry of Finance and the Ministry of Science and Technology jointly issued the Revised Measure for Certification of High and New Technology Enterprise (Guo Ke Fa Huo [2016] No. 32) (the “Revised Measure”).  The Revised Measure is an amendment to the Measure for Certification of High and New Technology Enterprise issued in 2008 (the “Old Measure”). The Revised Measure reduces certain qualification thresholds for High and New Technology Enterprise (“HNTE”) and expands the ambit of “high and new technology” in an effort to support the development of small and medium size high tech companies and encourage the innovation of new technologies in light of the changing environment. In addition,  the Revised Measure introduces a number of new requirements to strengthen the supervision and administration of HNTE incentive. As a background information, the existing corporate income tax rate in China is 25%, company certified as HNTE is entitled to a reduced corporate income tax rate of 15%.  
Continue Reading Revisions to Measure for Certification of High and New Technology Enterprise

China Premier Li Keqiang presided over a State Council executive meeting on February 14, 2016 in which it was decided that China would commence a new pilot program (the “Pilot Program”) in ten cities and provinces along with five new districts to provide more flexible rules to boost service trade. On February 22, 2016, the State Council issued the Official Reply of the State Council on Approving the Commencement of Service Trade Pilot Program (Guohan [2016] No. 40) (国务院关于同意开展服务贸易创新发展试点的批复) which disclosed more details about this Pilot Program.
Continue Reading State Council Approved Pilot Program to Promote Service Trade

On May 4, 2015, the National Development and Reform Commission (“NDRC”) and seven agencies including the National Health and Family Planning Commission and the Ministry of Human Resources and Social Security jointly published Opinions on Promoting Drug Price Reform (the “Opinions”).[1]  The NDRC also issued a Notice on Strengthening Monitoring of Drug Prices (“Notice”)[2] and a press release on the same day.
Continue Reading NDRC Issued Opinions and Notice on Drug Price Reform

Introduction: On March 13, 2015, the National Development and Reform Commission (the “NDRC”) and the Ministry of Commerce promulgated the Catalogue of Industries for Guiding Foreign Investment (2015 Revision) (the “2015 Catalogue”), which is the 6th amendment to the said catalogue since first promulgated in 1995. The 2015 Catalogue will take effect on April 10, 2015, and the 2011 Catalogue Amendment (the “2011 Catalogue”) will be repealed on the same date.

引言: 2015年3月13日,国家发展和改革委员会(下称“国家发改委”)和商务部正式发布了《外商投资产业指导目录(2015年修订)》(下称“2015年版《目录》”),这是《目录》自1995年公布以来的六次修订。2015年版《目录》将于2015年4月10日起施行。《外商投资产业指导目录(2011年修订)》(下称“2011年版《目录》”)同时废止。
Continue Reading An Introduction of Catalogue of Industries for Guiding Foreign Investment (2015 Revision) 《外商投资产业指导目录(2015年修订)》简介

On January 19, 2015, China’s foreign investment regulatory authority Ministry of Commerce (“MOFCOM”) released a draft of new Foreign Investment Law (“Draft Law”)  (See blog article Comparison Chart re JV Law and Foreign Investment Law Draft for Comments dated February 10, 2015).  This Draft Law is expected to come into force in the next couple of months overhauling the 25-year-old regulatory framework of inbound foreign investment in China (See Unofficial English Translation of the Draft Law by AmCham China).
Continue Reading PRC Foreign Investment Draft Law: What You Should Know

On January 19, 2015, MOFCOM released a draft for comment of PRC Foreign Investment Law (the “FIL”). The deadline for comments is February 17, 2015. The purpose of the FIL is to replace the present-day laws for foreign investment, i.e. PRC Sino-foreign Equity Joint Venture Law, PRC Sino-foreign Contractual Joint Venture Law and PRC Foreign Invested Enterprises Law (collectively, the “JV Law”). The major difference between the JV Law and FIL are as follows.
Continue Reading Comparison Chart re JV Law and Foreign Investment Law (Draft for Comments)

On October 20, 2014, the State Council announced a guideline to boost China’s sports industry, named Opinions on Accelerating the Development of Sports Industry and Promoting Sports Consumption, Guofa [2014] No. 46 (国务院关于加快发展体育产业促进体育消费的若干意见) (“Guideline”).  The Guideline marks the first time the Chinese government has tapped into the economic value of the sports industry.  With the issuance of the Guideline, the market expects China to be the biggest fitness market in the world within the next twenty years.  In particular, foreign investors can see great opportunities as the Guideline encourages foreign investors to invest in sports industry in China.
Continue Reading State Council Issues Guideline to Boost Sports Industry

On August 27, 2014, the National Health and Family Planning Commission (“NHFPC”) and Ministry of Commerce (“MOFCOM”) jointly released Notice on Conducting Pilot Work of Setting Up Wholly Foreign Owned Hospitals (关于开展设立外资独资医院试点工作的通知) (“Notice”) dated on July 25, 2014.  The Notice allows foreign investors to set up hospitals in the form of wholly foreign owned enterprises (“WFOE”) in Beijing, Tianjin, Shanghai, Jiangsu Province, Fujian Province, Guangdong Province and Hainan Province[1].  Under the Notice, either setting up a new hospital or acquiring an existing private hospital is allowed.  This move marks a significant step of the opening-up of China’s medical markets to foreign investment.  Previously, the equity ratio of foreign investment from outside Hong Kong, Macao and Taiwan in a hospital should not exceed 70%[2].
Continue Reading China to Open Up Its Hospital Market to Foreign Investment on a Pilot Program

Following the big change where registration was replaced by filing for establishment applications of companies excluded in the Negative List, China State Council further approves adjustment of the special access management measures for qualification requirements, share ratio restrictions and business scope restrictions in some industries in the Shanghai Pilot Trade Zone to allow foreign invested enterprises engaging in some business activities that were previously restricted or prohibited.
Continue Reading China State Council Approves Adjustment of Special Access Management Measures in Shanghai Pilot Free Trade Zone