China
New Bohai Bay Leak Looks to be Less Severe
Associated Press/Xinhua An oil rig at the Jinzhou 9-3 Oilfield off the coast of Jinzhou, in a photo released by the state-run Xinhua News Agency. A fresh oil leak in China’s Bohai Bay appears to be far less severe than a series of recent mishaps in the northern waters that sparked a national outrage and knocked one of the nation’s largest offshore production bases out of action. In the latest incident, owner-operator China National Offshore Oil Ltd.’s Cnooc Ltd. unit said Friday it has taken 1,600 barrels per day of production offline to deal with the spill and surface sheens. The company didn’t estimate when the production might resume. Cnooc said its initial estimate of the Jinzhou 9-3 West oil spill — caused when a working vessel dragged an anchor across an undersea pipeline and ruptured it — was 0.38 cubic meters, or just over two barrels. That’s a far cry from a series of leaks in recent months at a separate Bohai Bay production base, which 51% owned by Cnooc and 49% by Houston-based ConocoPhillips, operator of the field. More than 3,300 barrels of oil was spilled during multiple incidents over the summer at a site called Peng Lai, sparking harsh public and government criticism of the U.S. company’s performance and prompting authorities to order the production to be shuttered in early September. China’s State Oceanic Administration said it scrambled aircraft and boats Friday night after the latest spill but also suggested in a statement (in Chinese) that the incident was minor and Cnooc’s response was adequate. The spill news was getting relatively little attention in China’s media. At least one official of the Oceanic administration, which manages China’s offshore activity, has described the spills around Peng Lai as China’s worst offshore accident. The agency continues to feature news about the incident prominently on its website. The incidents grabbed headlines for weeks in China, as well as senior leadership attention. In daily reports , Conoco has chronicled its efforts to deal with the aftermath of the accidents in the hopes of eventually returning to production, saying it is working under the active supervision of its partner Cnooc. Conoco, which has taken initial steps to pay compensation , says its ongoing efforts include reducing undersea pressure around Peng Lai that it says caused oil to seep out and to look for ways to seal sources of the leaking. It is also revising its overall development plan. –James T. Areddy; Follow him on Twitter @jamestareddy
- Associated Press/Xinhua
- An oil rig at the Jinzhou 9-3 Oilfield off the coast of Jinzhou, in a photo released by the state-run Xinhua News Agency.
A fresh oil leak in China’s Bohai Bay appears to be far less severe than a series of recent mishaps in the northern waters that sparked a national outrage and knocked one of the nation’s largest offshore production bases out of action.
In the latest incident, owner-operator China National Offshore Oil Ltd.’s Cnooc Ltd. unit said Friday it has taken 1,600 barrels per day of production offline to deal with the spill and surface sheens. The company didn’t estimate when the production might resume.
Cnooc said its initial estimate of the Jinzhou 9-3 West oil spill — caused when a working vessel dragged an anchor across an undersea pipeline and ruptured it — was 0.38 cubic meters, or just over two barrels.
That’s a far cry from a series of leaks in recent months at a separate Bohai Bay production base, which 51% owned by Cnooc and 49% by Houston-based ConocoPhillips, operator of the field. More than 3,300 barrels of oil was spilled during multiple incidents over the summer at a site called Peng Lai, sparking harsh public and government criticism of the U.S. company’s performance and prompting authorities to order the production to be shuttered in early September.
China’s State Oceanic Administration said it scrambled aircraft and boats Friday night after the latest spill but also suggested in a statement (in Chinese) that the incident was minor and Cnooc’s response was adequate. The spill news was getting relatively little attention in China’s media.
At least one official of the Oceanic administration, which manages China’s offshore activity, has described the spills around Peng Lai as China’s worst offshore accident. The agency continues to feature news about the incident prominently on its website. The incidents grabbed headlines for weeks in China, as well as senior leadership attention.
In daily reports, Conoco has chronicled its efforts to deal with the aftermath of the accidents in the hopes of eventually returning to production, saying it is working under the active supervision of its partner Cnooc.
Conoco, which has taken initial steps to pay compensation, says its ongoing efforts include reducing undersea pressure around Peng Lai that it says caused oil to seep out and to look for ways to seal sources of the leaking.
It is also revising its overall development plan.
–James T. Areddy; Follow him on Twitter @jamestareddy
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.
The Chinese government seeks to add energy production capacity from sources other than coal and oil, and is focusing on nuclear and other alternative energy development.
The country’s per capita income was at $6,567 (IMF, 98th) in 2009.
Nevertheless, key bottlenecks continue to constrain growth.
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.
China has acquired some highly sophisticated production facilities through trade and also has built a number of advanced engineering plants capable of manufacturing an increasing range of sophisticated equipment, including nuclear weapons and satellites, but most of its industrial output still comes from relatively ill-equipped factories.
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.
“The growth rate (for ODI) in the next few years will be much higher than previous years,” Shen said, without elaborating.
China is expected to have 200 million cars on the road by 2020, increasing pressure on energy security and the environment, government officials said yesterday.
China’s challenge in the early 21st century will be to balance its highly centralized political system with an increasingly decentralized economic system.
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.
Livestock raising on a large scale is confined to the border regions and provinces in the north and west; it is mainly of the nomadic pastoral type.
China is one of the world’s major mineral-producing countries.
China’s leading export minerals are tungsten, antimony, tin, magnesium, molybdenum, mercury, manganese, barite, and salt.
Major industrial products are textiles, chemicals, fertilizers, machinery (especially for agriculture), processed foods, iron and steel, building materials, plastics, toys, and electronics.
Since the 1980s China has undertaken a major highway construction program.
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New Bohai Bay Leak Looks to be Less Severe
China
China Provides Tax Incentives on Special Equipment for Green and Digital Development
China has introduced a new tax incentive for companies investing in digital and smart upgrades of special equipment to encourage environmental protection and safe production. Companies can enjoy a 10 percent deduction from their corporate income tax payable. Eligibility and requirements are outlined by the Ministry of Finance and State Tax Administration.
A new China tax incentive aims to encourage companies to invest in digital and smart upgrades of special equipment. Companies upgrading certain equipment that aids environmental protection and safe production can enjoy a deduction of the investment at a rate of 10 percent from their corporate income tax payable. We explain the requirements of the new tax incentive.
China’s Ministry of Finance (MOF) and State Tax Administration (STA) have issued a new preferential corporate income tax (CIT) incentive for companies investing in digital and intelligent transformations of certain types of equipment. To be eligible for the incentive, companies must invest in the digital and intelligent transformation of equipment related to energy and water conservation, environmental protection, and safe production.
The new tax incentive aligns with a State Council Action Plan, released in March 2024, which aims to accelerate the renewal of large-scale equipment and consumer goods, promoting high-quality development and driving investment and consumption for long-term benefits.
If the annual CIT payable is insufficient for the offset, it can be carried forward to future years for up to five years.
The CIT payable refers to the balance after multiplying the annual taxable income by the applicable tax rate and deducting the tax reductions and exemptions according to China’s CIT Law and relevant preferential policies.
Note that companies enjoying the tax incentives must use the transformed equipment themselves. If the equipment is transferred or leased within five tax years after the transformation is completed, the incentives must stop from the month the equipment is no longer in use, and the previously offset CIT must be repaid.
The “special equipment” eligible for the preferential tax treatment covers equipment purchased and used by companies listed in the Catalog of Special Equipment for Safe Production for Corporate Income Tax Incentives (2018 Edition) and the Catalog of Special Equipment for Energy Saving, Water Conservation, and Environmental Protection for Corporate Income Tax Incentives (2017 Edition).
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
Revealing the Encouraged Industries of Hainan in 2024: Unlocking Opportunities
The 2024 Hainan Encouraged Catalogue, issued by the NDRC, MOF, and STA, aims to boost industries in the Hainan Free Trade Port. It prioritizes sectors like tourism, modern services, and high technologies, offering incentives for foreign investment and market access expansion since 2020. The Catalogue includes 176 entries across 14 categories, with 33 new additions focusing on cultural tourism, new energy, medicine and health, aviation, aerospace, and environmental protection.
The National Development and Reform Commission (NDRC), in collaboration with the Ministry of Finance (MOF) and the State Taxation Administration (STA), has issued the Catalogue of Industries Encouraged to Develop in Hainan Free Trade Port (2024 Version), hereinafter referred to as the “2024 Hainan Encouraged Catalogue.” The updated Catalogue took effect on March 1, 2024, replacing the previous 2020 Edition.
Beyond the industries already addressed in existing national catalogues, the new entries in the 2024 Hainan Encouraged Catalogue are based on practical implementation experiences and the specific needs within Hainan, prioritizing sectors such as tourism, modern services, and high technologies.
The Hainan FTP has been providing incentives to draw investors to invest and establish businesses in the region, especially foreign investment. Alongside a phased approach to opening the capital account and facilitating free capital movement, Hainan has significantly expanded market access for foreign enterprises since 2020, particularly in sectors such as telecommunications, tourism, and education.
The Hainan Encouraged Catalogue comprises two main sections:
Similar to the approach adopted by the western regions, foreign-invested enterprises (FIEs) should always implement their production or operations in accordance with the Catalogue of Encouraged Industries for Foreign Investment.
On top of the industries already addressed in existing national catalogues, the 2024 Hainan Encouraged Catalogue encompasses 14 distinct categories and a total of 176 entries especially encouraged in the region, including 33 new additions compared to the 2020 Edition. These new entries predominantly span cultural tourism, new energy, medicine and health, aviation and aerospace, and ecological and environmental protection, among others.
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
Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
China’s standards authority has released draft standards for personal information protection compliance audits, potentially making them mandatory for companies in 2023. The audits will require companies to undergo annual or biennial checks based on the number of people’s information they handle. The draft standards outline the audit process and requirements, seeking public feedback until September 11, 2024.
China’s standards authority has released draft standards for conducting personal information protection compliance audits. Regular compliance audits to ensure compliance with personal information protection regulations may become a requirement for companies in China under draft measures released in 2023. We explain the audit processes and requirements proposed in the draft standards.
The Standardization Administration of China (SAC) has released a set of draft standards for conducting personal information (PI) protection compliance audits. Under draft measures released by the Cyberspace Administration of China (CAC) in August 2023, companies that process the PI of people in China are required to undergo regular compliance audits.
Specifically, companies that process the PI of over one million people must undergo a compliance audit at least once a year, while companies that process the PI of under one million people must carry out an audit at least once every two years.
While the draft measures stipulate the obligations of the auditing body and the audit scope, the draft standards outline the specific audit process, including evidence management and permissions of the audit organization, as well as the professional and ethical requirements of auditors.
The Secretariat of the National Cybersecurity Standardization Technical Committee is soliciting public feedback on the draft standards until September 11, 2024. Public comment on the draft measures released in August last year closed on September 2, 2023, but no updated document has yet been released.
The draft standards outline five stages of the PI protection compliance audit: audit preparation, implementation, reporting, problem rectification, and archiving management.
Auditors are required to accurately document identified security issues in the audit working papers, ensuring that the records are comprehensive, clear, and conclusive, reflecting the audit plan and its execution, as well as all relevant findings and recommendations.
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 Provides Tax Incentives on Special Equipment for Green and Digital Development
- Revealing the Encouraged Industries of Hainan in 2024: Unlocking Opportunities
- Key Guidelines for Companies in Compliance Audits for Personal Information Protection Standards
- A Comprehensive Guide to China’s Expanded 144-Hour Visa-Free Transit Policy at 37 Ports
- Regulatory Changes in China Aim to Boost Service Sector Growth in Six Cities
- Adhering to Updated Registered Capital Regulations in China’s Revised Company Law
