China Business News

S.J.Grand offers quality research, case studies and essential updates on the latest China tax and business issues through our news feed, periodic newsletters and our online resource library.

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Chinese New Business License: not a fake!

Chinese Administrations have introduced a new Business License, in the wake of the recent amendment of the Chinese Company Lawin the beginning of last year. The issuance of those new licenses has started last March, and formerly-established companies are required to renew their own by February, 28th, 2015. In the meantime, two types are in circulation, the old and the new. Here are the novelties introduced:

Notice 715: SAFE eases foreign exchange regulations

The State Administration of Foreign Exchange (SAFE) has released “Notice 715” simplifying the conversion of foreign currency in registered capital into Renminbi in the 16 pilot zones. Those zones, including areas such as Zhonguancun in Beijing, Binhai in Tianjin or Suzhou Industrial Park, aim at further connect technology and finance. This notice came into force on August 4th and may well ease the way companies manage their funds.

Common problems when registering a WFOE in China

The Wholly Foreign Owned Enterprise (WFOE/WOFE) application process is daunting at first glance. A lot of red tape and bureaucracy, as well as unclear and sometimes contradictory regulations, can lead to some confusion. Here are a few of the common problems that companies have faced in the past when registering a WFOE in China.

Hong Kong New Corporate Law

On 3rd March 2014, the new Hong Kong corporate law (Companies Ordinance) has become effective. It’s the result of enduring negotiations dating back to the year 1984.

Consisting of 80 changes, it constitutes a whole new law. The previous version, renamed in “Companies (winding up and miscellaneous) Ordinance” henceforth only focuses on insolvency and company liquidation issues. All other regulations are going to become inoperative.

The most important changes in brief:

Negative List Shortened in Shanghai FTZ

On July 1st, the Shanghai Free Trade Zone government has released an update of its Negative List, the list referencing the industries in which foreign investments are forbidden. This update reduces the number of restricted industries from 190 to 139, in an effort to increase the zone attractiveness for foreign capital. Key changes affect:

S.J. Grand joins PrimeGlobal

As one of the leading business consulting firms in China, S.J.Grand is proud to announce that it has been accredited for becoming a member of PrimeGlobal, an association of independent accounting firms that ranks amongst the 5 largest professional associations in the world. PrimeGlobals’s more than 320 member companies from 87 countries share the same faith in excellence and dedication towards the satisfaction of their client’s needs.

Shanghai Pilot Free Trade Zone Arbitration Reform

The China (Shanghai) Pilot Free Trade Zone has recently introduced an innovative Arbitration Reform, aiming at improving investors’ confidence by complying with international standards in Alternative Dispute Resolutions (ADR).

New Rules over Bad Record Administration coming into force on July 1st

On April 14th, Administration for Quality Supervision, Inspection and Quarantine (AQSIQ) has released  a set of rules to better control the quality of imported food. They will come into force on July 1st. AQSIQ, with the help of its local entry-exit inspection branches (CIQs), will start collecting and verifying data concerning imported food companies, aiming at warning the population about hazardous products.

Stephane Grand’s analysis on BFM radio: sino-russian rating agency and China growth slow-down

On June 7th Stephane Grand, founder and president of S.J.Grand, was invited on BFM radio, a French leading information radio. He was asked about the announcement made by Chinese and Russian governments to create together an independent rating agency and about the impact of China growth slow down on investor’s mood.

Is China Golden Age about to end?

More and more foreign companies are pessimistic about the perspective of growth on the Chinese market. A report published by the European Union Chamber of Commerce in China (EUCCC) states that 46% of its 550 members believe the Golden Age of multinational firms in China has come to an end. Over the last year, sales and profit margins have been reducing, weakening optimism among European companies.

Updates on Shanghai Free Trade Zone

After 8 months since its launch, in September 2013, the much-acclaimed FTZ is now raising more and more concerns about its effectiveness and key role in fostering trade and providing concrete measures for it. Many innovations still seem more theoretical than pragmatic. If in the very first months after its launch this could still leave space to the ambition and optimism of government officials now this mood is starting to creek under the growing urgency for more concrete implementations.

China France Double Tax Treaty

China has signed 3 treaties last year (2013), namely with Netherlands, Switzerland and France, respectively based on the date of signature. The treaty signed with France is likely to take force next year January as it has been signed on the 26th of November 2013 and is still being affirmed by both parties. Major changes are as follows:

Extending Tax Breaks for startups to boost jobs in China

The extension of tax break has been announced by the State Administration of Taxation together with the Chinese Ministry of Finance. Such measure is taken in order to increase employment in China due to graduates and unemployed people who struggle to find work. The previous expiration was until the end of December 2013 but has been prolonged till December 2016 also expanding the plan’s extent of range, including every sector.

China and Germany renew double tax treaty

On 28th March, the Federal Republic of Germany and the Peoples Republic of China renewed their double taxation agreement that has been in place already for about 30 years. There are going to be particular changes in current practices for Hong Kong and Singapore holding structures, the taxation of dividends and the prerequisites for the identification of tax subjects.

10th Anniversary of S.J.Grand Financial and Tax Advisory

On March 27, 2014, our S.J.Grand team celebrated its 10th anniversary at an exclusive location in the heart of Shanghai. After its foundation in 2003 and a decade of building an outstanding reputation for the dedication to our clients, it was the right opportunity to say “thank you” to clients, business partners and friends for their support and loyalty.

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