China Laws and Regulations Update in August 2014

  1. The Shanghai Municipal People’s Government Releases the 2014 Revised Version of ‘Negative List’ Applicable in the Shanghai Free Trade Zone

On 1 July 2014, the Shanghai Municipal People’s Government released the 2014 Revised Version of ‘Negative List’ applicable in the Shanghai Free Trade Zone, containing 139 special administrative measurements, while the previous version contained 190 ones, representing a change of 26.8% contents of the Negative List.

The Revised Version of ‘Negative List’ eliminated fourteen (14) material clauses to expand business scopes, fourteen (14) material clauses to lift dual restrictions on both domestic and foreign investments and twenty three (23) clauses to readjust categories. The eliminated clauses, including those restricting foreign investment in mail orders and online sales of ordinary commodities, allowing wholly owned foreign businesses to deal in railroad transport, etc., relate to manufacturing, real estate, infrastructure, commercial trade, shipping, social service sectors, etc.

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China Laws and Regulations Update in April 2014

  1. Shanghai Customs Reform the Supervision and Administrative System of the Shanghai Free Trade Zone in Eleven (11) Respects

In response to AQSIQ’s (General Administration of Quality Supervision, Inspection and Quarantine of the People’s Republic of China) issuance of the Notice on Supporting Animals and Plants Inspection and Quarantine Reforms in the China (Shanghai) Pilot Free Trade Zone on March 4th, Shanghai Customs has  launched a series of administrative system reforms in eleven (11) respects, introducing a negative list, entitlements to ‘post customs declaration’, ‘free freight transport,’  ‘unified customs declaration’ , a list of goods applied to simplified import filing procedures, etc. to the China (Shanghai) Pilot Free Trade Zone.

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China Laws and Regulations Update in March 2014

1. The State Council has begun circulating the “Registered Capital Registration System Reform Plan”

On February 7th, 2014 the State Council issued the Registered Capital Registration System Reform Plan (the “Plan”) with the purpose of promoting the development and efficiency of business registration systems.

The Plan makes it clear that requirements for registered capital of companies applying to be incorporated will be lowered. However, minimum registered capital restrictions could remain applicable to companies in given industries subject to relevant laws, administrative rules and decisions made by the State Council. The new guidelines stipulate that the minimum registered capital restrictions of RMB 30,000 on limited companies, RMB 100,000 on solely- owned limited companies and RMB 5,000,000 on stock-limited companies will generally be lifted. Additionally, restrictions on the proportion of registered capital that is initially subscribed by all shareholders (or initiators) upon incorporation of a company as well as the proportion of registered capital subscribed in cash by all shareholders (or initiators) to the total registered capital of a company will be lifted. The duration of existence for a company with registered capital not fully paid by its shareholders (or initiators) will also no longer be limited.

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Introduction to the New Laws and Policies in the Shanghai Free Trade Zone

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(By Dr. Qiao Wenbao) On August 22, 2013, the State Council officially approved the establishment of the China (Shanghai) Free Trade Test Zone (the “FTZ”). Compared with regular domestic bonded zones, export-processing zones, and the Qianhai Bay economic zone previously approved, the FTZ is of profound significance upon the degree of openness and the influence of China’s development in the future.

The FTZ occupies an area of 28.78 square kilometers, including the Yangshan Free Trade Port Area, the Waigaoqiao Free Trade Zone, Waigaoqiao Free Trade Logistics Park, and the Shanghai Pudong Airport Comprehensive Free Trade Zone. The FTZ, centered on the Waigaoqiao Free Trade Zone and combined with Yangshan Free Trade Port Area and Shanghai Pudong Airport Comprehensive Free Trade Zone, is quickly becoming the new experimental field in China’s economy, promoting the development of Shanghai’s financial, trade and shipping center.

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