Regulations of China (Shanghai) Pilot Free Trade Zone released

It has been almost one year now since the Free Trade Zone (FTZ) has been launched.  During this time, a number of regulations have been issued by various authorities, such as the Ministry of Finance, the General Administration of Customs, the Ministry of Transport, People’s Bank of China, etc.

Interpretation of the SHIAC Pilot Free Trade Zone Arbitration Rules

Just recently, on 1st May 2014 the China (Shanghai) Pilot Free Trade Zone Arbitration Rules came into effect. Formulated by the newly structured Shanghai International Arbitration Center (SHIAC) the regulations consist of 10 chapters and 85 articles. In line with international developments, the framework shall provide an alternative way for contractual and property rights dispute resolution in contrast to enduring court proceedings.

China launches reform to allow Foreign Hedge Funds in Mainland China

China has for years encouraged long-term investors such as foreign insurers and pension funds to invest directly in the country's stocks and bonds, as part of its broader reforms of the country's financial sector. But foreign Hedge Funds, criticized for being be too volatile were banned by authorities and had no direct access to the Chinese market. 

Understanding China's Five-Year Tax Rule

The five-year tax rule is an important and misunderstood factor in determining a tax strategy for expatriates living in China. Foreign nationals who reside in China for more than five years can be considered Chinese tax residents and therefore liable with tax authorities on their global income. In this article, we outline the main points of this rule and consider strategies for compliance.

Important Reform of Foreign Exchange Administration System for Trade in Goods

On Dec 01, 2011 China rolled out a pilot reform of its foreign exchange control system for international trade in goods in pilot regions including Jiangsu, Shandong, Hubei, Zhejiang (excluding Ningbo), Fujian (excluding Xiamen), Dalian, and Qingdao. 

Growth Concerns as China Imports Crumble

--Chinese exports fell and imports slid more than forecast in January as a weeklong holiday disrupted trade--

China's central bank pledges support for homebuyers

--Vows support for first-home buyers as crackdown on speculation threatens to trigger a property slump in China--

The central bank in China will increase support for construction of affordable housing and ensure that “loan demand from first-home families” is met, the People’s Bank of China said on its website yesterday.

A government clampdown aimed at make housing affordable is cooling market prices and driving down transactions as Europe’s sovereign-debt crisis puts a ceiling on export demand.


  • From 1 January 2012 qualified businesses in Shanghai will be required to charge VAT following approval by the local tax bureau;
  • Input VAT is creditable both for qualified pilot participants and their customers;
  • Generally, the program follows existing VAT mechanisms;
  • Two new VAT rates will be introduced, 6% and 11%, adding to the existing rates of 13% and 17%;
  • Treatment of exports is yet to be determined but likely 0% or tax exempt;
  • The first VAT return is due on 15 February 2012;

China's U.S. Treasury holdings in July highest in 9 months

--Boost in U.S. Treasury holdings comes despite overall drop in foreign ownership--

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