China
China Watch: Big on Mao Tai, Afraid of Milk
A list of what the Wall Street Journal’s reporters in China are reading and watching online. (NOTE: WSJ has not verified items in the ‘News’ section and does not vouch for their accuracy.) Last updated: 6:20 pm Beijing time. News Items: More than one hundred bottles of vintage Mao Tai, China’s “national liquor,” sold at auction for a total of nearly $800,000 in Shanghai over the weekend. (Xinhua) A new survey shows 70% of Chinese consumers avoid domestically-produced milk products . (Beijing Times via China Media Project) Digging Deeper: Criminal youth: China Daily reports on findings that migrant workers born after 1980 were responsible for a third of the crimes committed in China in 2010. The end of cheap jeans? The Telegraph examines the effects of rising cotton prices and rising labor prices on China’s producers of cut-rate denim . The dark side of China’s labor shortage: The Los Angeles Times takes a close and harrowing look at the practice, disturbingly common in China, of using disabled people as slave labor . Jasmine Watch: East South West North translates a post on the nationalist Chinese website Anti-CNN.com that picks out instances of Western media using misleading photos in reporting on the “Jasmine Revolution.” Why is China so worried about protests when its economy is growing at an unprecedented rate? The Globe and Mail examines the contradiction . Forget regime change for a second: Forbes blogger Paul Denlinger points looks at how the turmoil in northern Africa will affect China’s business interests there . Other recent readings: In an enlightening essay for Foreign Affairs last week, Wang Jisi, dean of Peking University’s School of International Studies identified several major transformations in China’s strategic thinking , among them a move towards a more “comprehensive understanding of security.” Just because: In video that has spread widely throughout the Chinese internet, angry airline passengers take revenge on “platinum” fliers whose complaints about not getting upgraded caused a flight to be delayed []. Chinfographics produces a striking series of infographics describing everything from the size of China’s car demand over time to just how bad the national soccer team really is. (NOTE: Link is to a Ministry of Tofu summary with low-resolution versions of the infographics; the Chinfograpics website appears to have been hacked, but full-resolution copies of the graphics are available here .) –compiled by Josh Chin. Follow him on Twitter @joshchin
A list of what the Wall Street Journal’s reporters in China are reading and watching online. (NOTE: WSJ has not verified items in the ‘News’ section and does not vouch for their accuracy.) Last updated: 6:20 pm Beijing time.
News Items:
- More than one hundred bottles of vintage Mao Tai, China’s “national liquor,” sold at auction for a total of nearly $800,000 in Shanghai over the weekend. (Xinhua)
- A new survey shows 70% of Chinese consumers avoid domestically-produced milk products. (Beijing Times via China Media Project)
Digging Deeper:
- Criminal youth: China Daily reports on findings that migrant workers born after 1980 were responsible for a third of the crimes committed in China in 2010.
- The end of cheap jeans? The Telegraph examines the effects of rising cotton prices and rising labor prices on China’s producers of cut-rate denim.
- The dark side of China’s labor shortage: The Los Angeles Times takes a close and harrowing look at the practice, disturbingly common in China, of using disabled people as slave labor.
Jasmine Watch:
- East South West North translates a post on the nationalist Chinese website Anti-CNN.com that picks out instances of Western media using misleading photos in reporting on the “Jasmine Revolution.”
- Why is China so worried about protests when its economy is growing at an unprecedented rate? The Globe and Mail examines the contradiction .
- Forget regime change for a second: Forbes blogger Paul Denlinger points looks at how the turmoil in northern Africa will affect China’s business interests there .
Other recent readings:
- In an enlightening essay for Foreign Affairs last week, Wang Jisi, dean of Peking University’s School of International Studies identified several major transformations in China’s strategic thinking, among them a move towards a more “comprehensive understanding of security.”
Just because:
- In video that has spread widely throughout the Chinese internet, angry airline passengers take revenge on “platinum” fliers whose complaints about not getting upgraded caused a flight to be delayed [].
- Chinfographics produces a striking series of infographics describing everything from the size of China’s car demand over time to just how bad the national soccer team really is. (NOTE: Link is to a Ministry of Tofu summary with low-resolution versions of the infographics; the Chinfograpics website appears to have been hacked, but full-resolution copies of the graphics are available here.)
–compiled by Josh Chin. Follow him on Twitter @joshchin
Measured on a purchasing power parity (PPP) basis that adjusts for price differences, China in 2009 stood as the second-largest economy in the world after the US, although in per capita terms the country is still lower middle-income.
Deterioration in the environment – notably air pollution, soil erosion, and the steady fall of the water table, especially in the north – is another long-term problem.
China is also the second largest trading nation in the world and the largest exporter and second largest importer of goods.
The PRC government’s decision to permit China to be used by multinational corporations as an export platform has made the country a major competitor to other Asian export-led economies, such as South Korea, Singapore, and Malaysia.
The restructuring of the economy and resulting efficiency gains have contributed to a more than tenfold increase in GDP since 1978.
China is the world’s largest producer of rice and is among the principal sources of wheat, corn (maize), tobacco, soybeans, peanuts (groundnuts), and cotton.
A report by UBS in 2009 concluded that China has experienced total factor productivity growth of 4 per cent per year since 1990, one of the fastest improvements in world economic history.
By the early 1990s these subsidies began to be eliminated, in large part due to China’s admission into the World Trade Organization (WTO) in 2001, which carried with it requirements for further economic liberalization and deregulation.
Both forums will start on Tuesday.
According to the ministry, China’s ODI grew by 1.1 percent from a year earlier to $56.53 billion, which includes investment of $47.8 billion in non-financial sectors worldwide, up 14.2 percent year-on-year.
China reiterated the nation’s goals for the next decade – increasing market share of pure-electric and plug-in electric autos, building world-competitive auto makers and parts manufacturers in the energy-efficient auto sector as well as raising fuel-efficiency to world levels.
Although China is still a developing country with a relatively low per capita income, it has experienced tremendous economic growth since the late 1970s.
Agriculture is by far the leading occupation, involving over 50% of the population, although extensive rough, high terrain and large arid areas – especially in the west and north – limit cultivation to only about 10% of the land surface.
China is the world’s largest producer of rice and wheat and a major producer of sweet potatoes, sorghum, millet, barley, peanuts, corn, soybeans, and potatoes.
Fish and pork supply most of the animal protein in the Chinese diet.
Growing domestic demand beginning in the mid-1990s, however, has forced the nation to import increasing quantities of petroleum.
China’s leading export minerals are tungsten, antimony, tin, magnesium, molybdenum, mercury, manganese, barite, and salt.
In the 1990s a program of share-holding and greater market orientation went into effect; however, state enterprises continue to dominate many key industries in China’s socialist market economy.
In the northeast (Manchuria) are large cities and rail centers, notably Shenyang (Mukden), Harbin, and Changchun.
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China Watch: Big on Mao Tai, Afraid of Milk
China
2024 Tax Incentives for Manufacturing Companies in China
China offers various tax incentives to boost the manufacturing industry. The Ministry of Finance and State Tax Administration provide guidelines on eligibility and policies. VAT exemptions and refunds are available for companies producing specific goods or services, with a monthly refund option for deferred taxes.
China implements a wide range of preferential tax policies to encourage the development of the country’s manufacturing industry. We summarize some of the main manufacturing tax incentives in China and explain the basic eligibility requirements that companies must meet to enjoy them.
China’s Ministry of Finance (MOF) and State Tax Administration (STA) have released guidelines on the main preferential tax and fee policies available to the manufacturing industry in China. The guidelines consolidate the main preferential policies currently in force and explain the main eligibility requirements to enjoy them.
To further assist companies in identifying the preferential policies available to them, we have outlined some of the main policies currently available in the manufacturing industry, including links to further resources.
For instance, VAT is exempted for:
Companies providing the following products and services can enjoy immediate VAT refunds:
Companies in the manufacturing industry that meet the conditions for deferring tax refunds can enjoy a VAT credit refund policy. The policy allows companies to receive the accumulated deferred tax amount every month and the remaining deferred tax amount in a lump sum.
The policy is not exclusive to the manufacturing industry and is also available to companies in scientific research and technical services, utilities production and supply, software and IT services, and many more.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
Companies in China must navigate compliance, trading, and reporting within the CCER framework, impacting operations and strategic objectives. The program focuses on afforestation, solar, wind power, and mangrove creation, offering opportunities for innovation and revenue streams while ensuring transparency and accuracy. The Ministry of Ecology and Environment oversees the program.
As companies navigate the complexities of compliance, trading, and reporting within the CCER framework, they must also contend with the broader implications for their operations, finances, and strategic objectives.
This article explores the multifaceted impact of the CCER program on companies operating in China, examining both the opportunities for innovation and growth, as well as the potential risks and compliance considerations.
Initially, the CCER will focus on four sectors: afforestation, solar thermal power, offshore wind power, and mangrove vegetation creation. Companies operating within these sectors can register their accredited carbon reduction credits in the CCER system for trading purposes. These sectors were chosen due to their reliance on carbon credit sales for profitability. For instance, offshore wind power generation, as more costly than onshore alternatives, stands to benefit from additional revenue streams facilitated by CCER transactions.
Currently, primary buyers are expected to be high-emission enterprises seeking to offset their excess emissions and companies aiming to demonstrate corporate social responsibility by contributing to environmental conservation. Eventually, the program aims to allow individuals to purchase credits to offset their carbon footprints. Unlike the mandatory national ETS, the revamped CCER scheme permits any enterprise to buy carbon credits, thereby expanding the market scope.
The Ministry of Ecology and Environment (MEE) oversees the CCER program, having assumed responsibility for climate change initiatives from the National Development and Reform Commission (NDRC) in 2018. Verification agencies and project operators are mandated to ensure transparency and accuracy in disclosing project details and carbon reduction practices.
On the second day after the launch on January 23, the first transaction in China’s voluntary carbon market saw the China National Offshore Oil Corporation (CNOOC), the country’s largest offshore oil and gas producer, purchase 250,000 tons of carbon credits to offset its emissions.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
China
China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
China’s Ministry of Commerce announced new policy measures on April 19, 2023, to encourage foreign investment in the technology sector. The measures include facilitating bond issuance, improving the investment environment, and simplifying procedures for foreign institutions to access the Chinese market.
On April 19, 2023, China’s Ministry of Commerce (MOFCOM) along with nine other departments announced a new set of policy measures (hereinafter, “new measures”) aimed at encouraging foreign investment in its technology sector.
Among the new measures, China intends to facilitate the issuance of RMB bonds by eligible overseas institutions and encourage both domestic and foreign-invested tech companies to raise funds through bond issuance.
In this article, we offer an overview of the new measures and their broader significance in fostering international investment and driving innovation-driven growth, underscoring China’s efforts to instill confidence among foreign investors.
The new measures contain a total of sixteen points aimed at facilitating foreign investment in China’s technology sector and improving the overall investment environment.
Divided into four main chapters, the new measures address key aspects including:
Firstly, China aims to expedite the approval process for QFII and RQFII, ensuring efficient access to the Chinese market. Moreover, the government promises to simplify procedures, facilitating operational activities and fund management for foreign institutions.
This article is republished from China Briefing. Read the rest of the original article.
China Briefing is written and produced by Dezan Shira & Associates. The practice assists foreign investors into China and has done since 1992 through offices in Beijing, Tianjin, Dalian, Qingdao, Shanghai, Hangzhou, Ningbo, Suzhou, Guangzhou, Dongguan, Zhongshan, Shenzhen, and Hong Kong. Please contact the firm for assistance in China at china@dezshira.com.
- 2024 Tax Incentives for Manufacturing Companies in China
- Exploring the Revamped China Certified Emission Reduction (CCER) Program: Potential Benefits for International Businesses
- China Implements New Policies to Boost Foreign Investment in Science and Technology Companies
- Q1 2024 Brief on Transfer Pricing in Asia
- New Report from Dezan Shira & Associates: China Takes the Lead in Emerging Asia Manufacturing Index 2024
- Is journalist Vicky Xu preparing to return to China?
