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China’s Minimum Wage Guide (Updated as of February 19, 2024)



Minimum wages in China are set to rise in 2024. The legal minimum wage is the minimum labor remuneration paid by employers to employees. Provincial governments determine minimum wage based on factors like living costs, consumption price index, and economic development. Salary benchmarking is available for business support.

Minimum wages in China continue to rise in 2024. We offer a guide to minimum wages in the Chinese Mainland and discuss how labor costs are affected by changes to the minimum wage levels.

According to China’s Provisions on Minimum Wage, the legal minimum wage refers to the minimum labor remunerations that shall be paid by the employers to the employees under the precondition that the employee has provided normal labor within the promissory working hours or within the working hours that is prescribed in the labor contracts.

The minimum wage standards are determined by provincial governments by taking into consideration factors, such as the minimum living costs of local employees and their dependents, the urban residents’ consumption price index, the social insurance premiums, and the housing funds paid by the employees themselves, the average salary of the employees, the level of local economic development, the local employment status, etc.

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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 props up state-owned developer Vanke as property crisis deepens



China has asked 12 banks to provide financing to the beleaguered state-owned real estate firm, Vanke Group, just days after the housing and urban-rural development ministry vowed to let insolvent property developers go bankrupt.

The Chinese government’s support bucks its recent trend of letting indebted developers take their own downward course, which has compounded a spiraling crisis in the sector, once a major economic growth driver. 

Privately-held Evergrande Group and Country Garden Holdings were left to their own devices as their debts soared, leaving their creditors and homebuyers high and dry in trying to recover investments. The Hong Kong High Court issued a liquidation order for Evergrande in January. A similar fate looms for Country Garden which received a liquidation petition from one of its creditors in Hong Kong. Both companies are listed in Hong Kong.

In contrast, rescue efforts for Vanke, part-owned by the Shenzhen government, are being coordinated by the State Council, China’s cabinet amid Chinese President Xi Jinping’s policy of advancing state enterprises and a retreat of the private sector. 

The State Council has requested financial institutions to make swift progress and called on creditors to consider private debt maturity extension, according to a Reuters report on Monday, citing unnamed sources. 

Separately, the state-owned Cailian Press reported that the 12 institutions are expected to raise as much as 80 billion yuan (US$11.1 billion) for Vanke. But the report cited sources saying that the attitude maintained by each bank was conservative.

Shaky ground

Nonetheless, Vanke is likely to stay on shaky ground among investors after rating agency Moody’s lowered its credit rating to “junk.” 

“The rating actions reflect Moody’s expectation that China Vanke’s credit metrics, financial flexibility and liquidity buffer will weaken over the next 12-18 months because of its declining contracted sales and the rising uncertainties over its access to funding amid the prolonged property market downturn in China,” said Kaven Tsang, a Moody’s senior vice president in a statement this week.

The rating agency said it has placed all the ratings on review for downgrade, as it saw the company’s ability to recover sales, improve funding access, and maintain an adequate liquidity buffer to be worrying.

The government’s bid to save Vanke has aroused discussion online. Some netizens questioned the discrepancy between saving Vanke and abandoning Evergrande, while others worried that saving Vanke would reduce national resources at a time when the economy is growing at its slowest pace since 1990. There are also many posts rationalizing the government’s efforts to support Vanke.

A Vanke sign is seen above workers working at the construction site of a residential building in Dalian, Liaoning province, China September 16, 2019. (Stringer/File Photo/Reuters)

The blogger “Wuxinxinshuofang” believes that propping up Vanke is to ensure that the “hunt” for foreign capital won’t be disrupted by a Vanke-triggered real estate crisis. 

“The collapse of Vanke will bring about the debt crisis and liquidity crisis of all real estate companies. Efforts so far to prop up the market have only begun to show effects. Vanke can fail next year, but not this,” the blogger wrote.

Zombie developers to zombie banks?

Frank Xie, a professor at the University of South Carolina Aiken Business School, attributed Beijing’s support to Vanke’s state-owned background.

“The Chinese Communist Party cannot let Vanke fail, because the CCP [Communist Party of China] treats its own people and outsiders differently,” Xie pointed out. 

The failure of any state-owned assets would be “tantamount to the bankruptcy of national capital, questioning the Communist Party’s ability to run enterprises.”

Xie said that Chinese banks have accumulated a large backlog of mortgage loans involving real estate, and even assisting Vanke will only delay the explosion.

“As for other private companies facing the same problems as Evergrande, the CCP cannot save them, nor does it want to save them,” he added.

Beijing has also established a “white list” of approved property projects by distressed developers that banks and financial institutions should support in a stop-gap measure. Those deemed beyond rescue should go bankrupt.

A person walks past by a gate with a sign of Vanke at a construction site in Shanghai, China, March 21, 2017. Picture taken March 21, 2017. (Aly Song/File Photo/Reuters)

Chen Songxing, director of the New Economic Policy Research Center at National Donghua University in Taiwan, said that the Chinese official statement of “bankruptcy should be bankrupt” is merely to show the outside world Beijing is unable to save real estate developers. 

Chen said the amount of rescue for Vanke this time was insufficient to solve the problem, given how intertwined the real estate and banking industries are. He warned this was only a delay tactic which could lead to a bigger crisis.

“China’s current financial situation actually does not have the ability to save the real estate industry, as this is just transferring the debts of real estate developers and local governments to banks. 

“If you continue to save these zombie real estate developers this year, it is very likely that banks will also become zombies in the future. It is very detrimental to China’s economic development,” Chen said.

Edited by Taejun Kang and Mike Firn. 

Read the rest of this article here >>> China props up state-owned developer Vanke as property crisis deepens

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China to update M&A Regulations in 2024: Changes to Filing Thresholds



China’s State Council has implemented revised Provisions on Declaration Standards for Business Operator Concentration, effective from January 22, 2024. Originally proposed by SAMR in June 2022, the 2024 Provisions have raised turnover criteria, benefiting big tech firms and multinational companies involved in M&A activities.

China’s State Council has released the revised Provisions of the State Council on Declaration Standards Regarding the  Concentration of Business Operators, which took effect from January 22, 2024.

The 2024 Provisions were initially proposed by the State Administration for Market Regulation (SAMR) in June 2022. The comparatively slow legislation process indicates the Provisions had been subjected to heated discussion within the government organs.

Notably, the 2024 Provisions dropped some specific standards proposed in the 2022 draft that required any deal involving a company with annual China revenues over RMB 100 billion to be subject to review by the authorities. According to analysts, this roll-back was designed to favor the big tech firms originally, but will concurrently benefit all multinational companies (MNCs).

This article delves into the significant revisions to China’s M&A declaration thresholds and their implications, providing crucial insights for businesses and stakeholders involved in merger activities.

The 2024 Provisions have significantly raised the turnover criteria for the declaration threshold for concentration of undertakings.

The term “concentration of undertakings” refers to any of the following circumstances:

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

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South Asia sides with China after Taiwan’s elections



South Asia sides with China after Taiwan’s elections


South Asian countries, including Afghanistan, Bangladesh, Maldives, and Nepal, expressed support for China’s claim on Taiwan, upholding the ‘One China’ principle and opposing interference in China’s internal affairs.

After Taiwan’s general elections in January 2024, where the Democratic Progressive Party secured a third term, several South Asian nations voiced support for China’s stance on Taiwan being an integral part of China’s territory and upholding the ‘One China’ principle. This display of solidarity highlights Beijing’s ability to wield economic and political leverage in the region to influence the narrative surrounding Taiwan.

Afghanistan’s Ministry of Foreign Affairs affirmed its commitment to the ‘One China’ principle, denouncing any interference in China’s internal affairs as provocative and destabilizing. Similarly, the Bangladeshi Ministry of Foreign Affairs reiterated its adherence to the principle while urging all parties to prioritize regional peace and stability, demonstrating a cautious approach to China’s economic influence.

The Maldives released a forceful statement backing China’s territorial integrity and opposing separatist activities related to Taiwan. The government expressed resistance to external meddling in China’s internal affairs and backed Chinese efforts for national reunification, aligning with President Mohamed Muizzu’s foreign policy agenda. Nepal’s Prime Minister also echoed support for the ‘One China’ principle, acknowledging Taiwan as part of China’s territory and maintaining a consistent stance despite domestic and external circumstances.

Read the complete article on East Asia Forum

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