China
A Notable No-Show at Communist Party’s 90th Birthday
China’s Communist Party does not generally like surprises – especially not during minutely choreographed ceremonies like the one held Friday to celebrate the 90th anniversary of its founding. So tongues quickly began wagging when Jiang Zemin, the 84-year-old former Party chief and President, failed to appear alongside other retired leaders at the anniversary celebrations, screened live on state television. Most of the other big guns were there, including 82-year-old former Premier Zhu Rongji, now sporting a mop of grey hair instead of the standard dye-induced black favored by incumbent leaders. Li Peng, another ex-Premier, was also there, although he appears to be still using the dye, boasting a full head of glossy black hair despite being just a few weeks younger than Mr. Zhu. But as the China Central Television camera lingered on each of the elders, there was no sign of Mr. Jiang, who was succeeded as Party chief by Hu Jintao in 2002 and stood alongside him at a ceremony to mark the 60th anniversary of the People’s Republic in 2009. Mr. Jiang’s surprising, and very obvious, absence is now certain to fuel rumors circulating in Beijing in recent months that he may be severely unwell, and therefore losing his ability to influence key Party decisions – including a once-a-decade leadership change next year. The official People’s Daily reported in May that Mr. Jiang was among current and former leaders who sent condolences on the death of former Vice Premier Chen Muhua, but his name was not listed among those who actually attended the cremation. His no-show at the 90th anniversary ceremony is much more significant, however, especially given the presence of retired leaders who were junior to him in ranking. Whatever the actual reason, his absence creates the perception within the Party that whatever influence he wields behind the scenes is diminishing relative to other current and retired leaders, each of whom represents their own interest group. Mr. Jiang does not have any formal power, but is consulted on major Party decisions, copied in on many important internal Party documents, and permitted to write notes alongside them, according to Chinese and Western political analysts. Retired leaders are also thought to have a say in the selection of the next Politburo Standing Committee – the top decision-making body – which is due to see seven of its nine members retire next year. Vice President Xi Jinping, 58, has already been anointed as the next Party chief and president through his promotion to a key military post last year, but other seats on the Standing Committee are up for grabs. The final lineup will not be known until the 18th Communist Party Congress in autumn next year, but the Party’s Organization department is expected to circulate a list of a dozen or so potential candidates amongst the Party elite some time this year. So the maneuvering has begun as current leaders try to promote proteges to secure their legacies, vested interests and continued influence, while candidates for promotion seek to burnish their credentials and out-flank potential rivals. Bo Xilai, the 61-year-old Party chief of Chongqing, has been the most brazen in his power play, overseeing a high-profile campaign to revive the spirit of Chairman Mao Zedong, mainly through revolutionary singing pageants . He even roped in Henry Kissinger , the former U.S. Secretary of State who negotiated the re-opening of diplomatic ties with China, to attend a red singing contest in Chongqing this week. Wang Yang, the 56-year-old Party chief of the southern province of Guangdong, has had a tougher time of late with a series of incidents of labor unrest on his patch, but he appeared to hit back this week with what some analysts say was an oblique attack on Mr. Bo’s “red” campaign. “For a mature ruling political party, it’s more important to study and review its history and strengthen a sense of anxiety than to just sing the praises of its brilliance,” he was quoted as saying by the People’s Daily web site. There has also been fresh talk this week that Li Keqiang, who is 56 and currently a vice premier, might not be the clear frontrunner for the premiership. Mr. Li – who studied law — was once considered Mr. Hu’s preferred successor, and was thereafter tipped to take over as premier, overseeing the entire Chinese economy. But Wang Qishan, another vice premier responsible for the financial system, has been persistently discussed in business circles as a stronger candidate to guide the world’s second largest economy — even though, at age 63, he would only be allowed to serve one five-year term. “A powerful personality, Wang has the potential to press for more decisive reforms, albeit within the considerable constraints of China’s collective leadership,” wrote the Eurasia Group in a research note Thursday. – Jeremy Page
China’s Communist Party does not generally like surprises – especially not during minutely choreographed ceremonies like the one held Friday to celebrate the 90th anniversary of its founding. So tongues quickly began wagging when Jiang Zemin, the 84-year-old former Party chief and President, failed to appear alongside other retired leaders at the anniversary celebrations, screened live on state television. Most of the other big guns were there, including 82-year-old former Premier Zhu Rongji, now sporting a mop of grey hair instead of the standard dye-induced black favored by incumbent leaders. Li Peng, another ex-Premier, was also there, although he appears to be still using the dye, boasting a full head of glossy black hair despite being just a few weeks younger than Mr. Zhu. But as the China Central Television camera lingered on each of the elders, there was no sign of Mr. Jiang, who was succeeded as Party chief by Hu Jintao in 2002 and stood alongside him at a ceremony to mark the 60th anniversary of the People’s Republic in 2009. Mr. Jiang’s surprising, and very obvious, absence is now certain to fuel rumors circulating in Beijing in recent months that he may be severely unwell, and therefore losing his ability to influence key Party decisions – including a once-a-decade leadership change next year. The official People’s Daily reported in May that Mr. Jiang was among current and former leaders who sent condolences on the death of former Vice Premier Chen Muhua, but his name was not listed among those who actually attended the cremation. His no-show at the 90th anniversary ceremony is much more significant, however, especially given the presence of retired leaders who were junior to him in ranking. Whatever the actual reason, his absence creates the perception within the Party that whatever influence he wields behind the scenes is diminishing relative to other current and retired leaders, each of whom represents their own interest group. Mr. Jiang does not have any formal power, but is consulted on major Party decisions, copied in on many important internal Party documents, and permitted to write notes alongside them, according to Chinese and Western political analysts. Retired leaders are also thought to have a say in the selection of the next Politburo Standing Committee – the top decision-making body – which is due to see seven of its nine members retire next year. Vice President Xi Jinping, 58, has already been anointed as the next Party chief and president through his promotion to a key military post last year, but other seats on the Standing Committee are up for grabs. The final lineup will not be known until the 18th Communist Party Congress in autumn next year, but the Party’s Organization department is expected to circulate a list of a dozen or so potential candidates amongst the Party elite some time this year. So the maneuvering has begun as current leaders try to promote proteges to secure their legacies, vested interests and continued influence, while candidates for promotion seek to burnish their credentials and out-flank potential rivals. Bo Xilai, the 61-year-old Party chief of Chongqing, has been the most brazen in his power play, overseeing a high-profile campaign to revive the spirit of Chairman Mao Zedong, mainly through revolutionary singing pageants . He even roped in Henry Kissinger , the former U.S. Secretary of State who negotiated the re-opening of diplomatic ties with China, to attend a red singing contest in Chongqing this week. Wang Yang, the 56-year-old Party chief of the southern province of Guangdong, has had a tougher time of late with a series of incidents of labor unrest on his patch, but he appeared to hit back this week with what some analysts say was an oblique attack on Mr. Bo’s “red” campaign. “For a mature ruling political party, it’s more important to study and review its history and strengthen a sense of anxiety than to just sing the praises of its brilliance,” he was quoted as saying by the People’s Daily web site. There has also been fresh talk this week that Li Keqiang, who is 56 and currently a vice premier, might not be the clear frontrunner for the premiership. Mr. Li – who studied law — was once considered Mr. Hu’s preferred successor, and was thereafter tipped to take over as premier, overseeing the entire Chinese economy. But Wang Qishan, another vice premier responsible for the financial system, has been persistently discussed in business circles as a stronger candidate to guide the world’s second largest economy — even though, at age 63, he would only be allowed to serve one five-year term. “A powerful personality, Wang has the potential to press for more decisive reforms, albeit within the considerable constraints of China’s collective leadership,” wrote the Eurasia Group in a research note Thursday. – Jeremy Page
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A Notable No-Show at Communist Party’s 90th Birthday
China
New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
The sixth revision of China’s Company Law is the most extensive amendment in history, impacting foreign invested enterprises with stricter rules on capital injection and corporate governance. Most FIEs must align with the New Company Law by July 1, 2024, with a deadline of December 31, 2024 for adjustments. Contact Dezan Shira & Associates for assistance.
The sixth revision of China’s Company Law represents the most extensive amendment in its history. From stricter capital injection rules to enhanced corporate governance, the changes introduced in the New Company Law have far-reaching implications for businesses, including foreign invested enterprises (FIEs) operating in or entering the China market.
Since January 1, 2020, the Company Law has governed both wholly foreign-owned enterprises (WFOEs) and joint ventures (JVs), following the enactment of the Foreign Investment Law (FIL). Most FIEs must align with the provisions of the New Company Law from July 1, 2024, while those established before January 1, 2020 have bit more time for adjustments due to the five-year grace period provided by the FIL. The final deadline for their alignment is December 31, 2024.
In this publication, we guide foreign investors through the implications of the New Company Law for existing and new FIEs and relevant stakeholders. We begin with an overview of the revision’s background and objectives, followed by a summary of key changes. Our in-depth analysis, from a foreign stakeholder perspective, illuminates the practical implications. Lastly, we explore tax impacts alongside the revisions, demonstrating how the New Company Law may shape future business transactions and arrangements.
If you or your company require assistance with Company Law adjustments in China, please do not hesitate to contact Dezan Shira & Associates. For more information, feel free to reach us via email at china@dezshira.com.
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
Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
The Lingang New Area in Shanghai has launched China’s first Cross-Border Data Service Center to facilitate data export for companies in Shanghai. The center will help with applications, data catalogs, and management, aiming to provide legal and safe cross-border data transfer mechanisms.
The Lingang New Area in Shanghai’s Pilot Free Trade Zone has launched a new cross-border data service center to provide administrative and consulting services to companies in Shanghai that need to export data out of China. The service center will help facilitate data export by accepting applications from companies for data export projects and is tasked with formulating and implementing data catalogs to facilitate data export in the area. The Shanghai cross-border data service center will provide services to companies across the whole city.
The Lingang New Area in the Shanghai Pilot Free Trade Zone has launched China’s first Cross-Border Data Service Center (the “service center”). The service center, which is jointly operated by the Cybersecurity Administration of China (CAC) and the local government, aims to further facilitate legal, safe, and convenient cross-border data transfer (CBDT) mechanisms for companies.
The service center will not only serve companies in the Lingang New Area but is also open to companies across Shanghai, and will act as an administrative service center specializing in CBDT.
In January 2024, the local government showcased a set of trial measures for the “classified and hierarchical” management of CBDT in the Lingang New Area. The measures, which have not yet been released to the public, seek to facilitate CBDT from the area by dividing data for cross-border transfer into three different risk categories: core, important, and general data.
The local government also pledged to release two data catalogs: a “general data” catalog, which will include types of data that can be transferred freely out of the Lingang New Area, and an “important data” catalog, which will be subject to restrictions. According to Zong Liang, an evaluation expert at the service center, the first draft of the general data catalog has been completed and is being submitted to the relevant superior departments for review.
In March 2024, the CAC released the final version of a set of regulations significantly facilitating CBDT for companies in the country. The new regulations increase the limits on the volume of PI that a company can handle before it is required to undergo additional compliance procedures, provide exemptions from the compliance procedures, and clarify the handling of important data.
Also in March, China released a new set of technical standards stipulating the rules for classifying three different types of data – core, important, and general data. Importantly, the standards provide guidelines for regulators and companies to identify what is considered “important” data. This means they will act as a reference for companies and regulators when assessing the types of data that can be exported, including FTZs such as the Lingang New Area.
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
A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
The application procedures for business visas to China have been simplified, with most foreigners now able to apply for an M/F visa using only an invitation letter from a Chinese company. Some countries are eligible for visa-free entry. However, a Verification Letter of Invitation may still be needed in certain cases. Consult the local Chinese embassy for confirmation.
In light of recent developments, the application procedures for business visas to China have undergone substantial simplification. Most foreigners can now apply for an M/F visa using only the invitation letter issued by a Chinese company. Additionally, citizens of certain countries are eligible to enter China without a visa and stay for up to 144 hours or even 15 days.
However, it’s important to note that some applicants may still need to apply for a “Verification Letter of Invitation (邀请核实单)” when applying for an M/F visa to China. In this article, we will introduce what a Verification Letter of Invitation is, who needs to apply for it, and the potential risks.
It’s important to note that in most cases, the invitation letter provided by the inviting unit (whether a public entity or a company) is sufficient for M/F visa applications. The Verification Letter for Invitation is only required when the Chinese embassies or consulates in certain countries specifically ask for the document.
Meanwhile, it is also essential to note that obtaining a Verification Letter for Invitation does not guarantee visa approval. The final decision on granting a visa rests with the Chinese embassy abroad, based on the specific circumstances of the applicant.
Based on current information, foreign applicants in Sri Lanka and most Middle East countries – such as Turkey, Iran, Afghanistan, Syria, Pakistan, and so on – need to submit a Verification Letter for Invitation when they apply for a visa to China.
That said, a Verification Letter for Invitation might not be required in a few Middle East countries, such as Saudi Arabia. Therefore, we suggest that foreign applicants consult with their the local Chinese embassy or consulate to confirm in advance.
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.
- New Publication: A Guide for Foreign Investors on Navigating China’s New Company Law
- Lingang New Area in Shanghai Opens First Cross-Border Data Service Center to Streamline Data Export Process
- A Concise Guide to the Verification Letter of Invitation Requirement in the China Visa Process
- Uyghurs remember 1990 Baren Uprising over China’s forced abortions
- New Capital Investment Entrant Scheme Launched in Hong Kong
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