Foreign Direct Investment

On December 7, 2009, the Ministry of Commerce and the Ministry of Science and Technology jointly announced their opinions on encouraging technology export ("opinions"). Opinions on encouraging technology export focus mainly on three areas: implementing preferential policies, closer international cooperation and improvement of the related public administration. The aim is to support enterprises in their export of well developed industrial technologies.Continue Reading China Issues Opinions on Encouraging Technology Exports

By Jennifer Ding

China’s State Administration for Industry and Commerce (“SAIC”) and Ministry of Public Security issued a joint Notice on Further Administration of Registration of Foreign Companies’ Resident Representative Offices (the “Notice”) on January 4, 2010, in light of increased problems with foreign representative offices providing counterfeit registration materials and violating rules regulating their business operations in China. The Notice heightens the scrutiny over registration procedures, personnel structure, and operations of foreign representative offices, which the issuing administrations claim will enhance the enforcement of current regulations and help maintain economic and market order. There is no direct requirement in such Notice that the new restrictions established will be applied to foreign representative offices of certain professional-services firms (including law firms) and liaison offices of foreign-invested enterprises. A summary of changes outlined by the Notice is as follows:Continue Reading SAIC and Ministry of Public Security Issue Stricter Rules for Foreign Representative Offices

On November 23, 2009, China’s Supreme Court launched public consultation on draft Regulations on Issues in Adjudicating Cases Involving Foreign Invested Enterprise Disputes (Part 1) (the "Guidelines"). The Guidelines provide detailed rules regarding dispute resolution for foreign investors based on the court’s experience in real cases.Continue Reading China’s Supreme Court Drafts Guidelines For Adjudicating Disputes Involving Foreign Investment

On November 25, 2009, China’s State Council issued the long-awaited Administrative Measures for the Establishment of Partnership Enterprises in China by Foreign Enterprises or Individuals (the “FIP Measures”). The FIP Measures will take effect on March 1, 2010.Continue Reading The Administrative Measures for the Establishment of Partnership Enterprises in China by Foreign Enterprises or Individuals Will Take Effect On March 1, 2010

Approval of the Draft Foreign-Invested Partnership ("FIP") Regulations

On August 19, 2009, China’s State Council approved, subject to further clarifying amendments, the Administrative Measures for the Establishment of Partnership Enterprises in China by Foreign Enterprises or Individuals (Draft) (the “Draft FIP Regulations”). The Drafted FIP Regulations have been returned to the Ministry of Commerce for further refinement.Continue Reading Draft Foreign-Invested Partnership Regulations – A Move to A National Framework for FIPs

On July 6, 2009, the China State Administration for Taxation (“SAT”) issued a Notice Regarding Enhancement of Supervision and Investigation of Cross-border Related Party Transactions (the “Notice”). The Notice aims at preventing overseas companies from shifting losses to their related-parties in China against the backdrop of the financial downturn.Continue Reading China Enhances Supervision of Cross-border Related Party Transactions

In order to encourage more multinational companies to set up regional headquarters in the capital, the Beijing Municipal Government recently issued general rules and implementing regulations (the "New Rules”) to establish detailed policies on the treatment of regional headquarters. The New Rules not only lower the application requirements for regional headquarters, but also offer generous subsidies and rewards, and other preferential policies. Some highlights include the following:Continue Reading Beijing’s New Offer For Regional Headquarters

Due to the global financial crisis and economic downturn, foreign companies are faced with more challenges and risks associated with international purchase transactions with Chinese suppliers. As a result, it is suggested that foreign companies take steps to reduce costs and control risks when purchasing commodities in China.
Continue Reading Strategy for Foreign Companies’ Purchase Transactions in China During Financial Crisis

Since 2006, China has implemented a string of policies designed to restrict foreign investments in the real estate industry. Recent actions, such as the State Council Order No. 546 promulgated at the end of 2008, which repealed the rigorous treatment of the urban real estate tax, have curbed some of the most onerous of these restrictions; however, the Chinese real estate market remains heavily regulated. As a result, China’s attitude toward foreign investment in local real estate may be best characterized as conservative.Continue Reading Current Situation and Anticipated Trend of Foreign Investments in China’s Real Estate Market