LIFTING RESTRICTIONS: COMPARISON OF THE 2019 AND 2020 FOREIGN INVESTMENT NEGATIVE LISTS

16 July 2020 | Investment, FDI

On 24 June 2020, China’s State Council released updated versions of the Negative List for Foreign Investment and the Negative List for Foreign Investment for China’s Pilot Free Trade Zones in parallel. In this article background is provided on the purpose of the negative lists and comparison between the Negative Lists is made on an industry level. ... READ MORE


TWO SESSIONS GOVERNMENT WORK REPORT ON INVESTMENT FOCUS

19 June 2020 | Investment, Regional Development, FDI

The Two Sessions refer to the two annual meetings held by the Chinese People’s Political Consultative Conference (CPPCC) and the National People’s Congress (NPC). The CPPCC is an organization which consists of delegates from eight legally permitted political parties, other organizations, and independent members. It consists out of over 2.000 members and serves as an advisory body to the NPC, China’s top legislative body. ... READ MORE


CHINA EXTENDS PREFERENTIAL POLICY ON REDUCED CORPORATE INCOME TAX RATES FOR QUALIFIED INVESTORS IN THE COUNTRY’S WESTERN REGIONS

4 June 2020 | Investment, Preferential policy

In 2011 a preferential policy was introduced to attract foreign investors to China’s western regions. For a period of 10 years until 31 December 2020 qualified investors would be able to enjoy a reduced Corporate Income Tax (CIT) rate of 15% whereas the default CIT rate is set at 25%. This policy has been prolonged to December 31, 2030. Corporate Income Tax continues to be levied at a reduced rate of 15% for enterprises in the encouraged industries located in the western region. ... READ MORE


TREATMENT OF HONG KONG, MACAO, AND TAIWAN INVESTMENTS UNDER CHINA'S NEW FOREIGN INVESTMENT LAW

Date: 13 April 2020 | Investment, HMT investments

Per 1 January 2020 China’s new Foreign Investment Law entered into effect, replacing the 1979 Law on Sino-Foreign Equity Joint Ventures, the 1986 Law on Wholly-Foreign-Owned Enterprises and the 1988 Law on Sino-Foreign Contractual Joint Ventures simultaneously. Prior to enactment of the new Law, China’s three foreign investment laws categorized investments from Hong Kong Special Administrative Region ... READ MORE


INSIGHTS INTO CHINA’S INDUSTRIAL POLICY VIA THE “CATALOGUE FOR INDUSTRY RESTRUCTURING”

Date: 2 April 2020 | Investment, Policy

As discussed in our previous article here, China has implemented a structured rule-based investment management system. To manage the inflow and structuring of foreign investments, China operates multiple foreign investment Negative Lists and Encouraged Lists, which are applicable to foreign investors with an interest to establish an enterprise located in either China or designated national level Pilot Free trade Zones. ... READ MORE


UNDERSTANDING CHINA'S FOREIGN INVESTMENT MANAGEMENT SYSTEM AND NEGATIVE LISTS

23 March 2020 | Investment, Regulatory, FDI

In recent years China has evaluated its existing foreign investment policies and developed and implemented a structured rule-based investment management system. The new Foreign Investment Law which came into effect per 1 January 2020, which combined with its detailed implementation regulations, forms the basic law for foreign investment into China ... READ MORE


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