(By You Yunting) According to media reports, the officer in charge of the China National Development and Reform Commission (the “NDRC”) in a recent statement was quoted as saying that the NDRC had always, and would continue to supervise the monopoly issues in relation to broadband access provided by China Telecom and China Unicom, and that the NDRC suffered from various reactions when it announced its investigation into China Telecom and China Unicom at the end of 2011. He also said that currently the 10G of bandwidth provided by China Telecom and China Unicom had been extended to 100G, and that it would still urge China Telecom and China Unicom to rectify this issue within a period of three to five years.
V. The State Council Has Issued Amended Regulations on the Administration of Foreign-Funded Insurance Companies.
On June 8, 2013, the State Council issued amended Regulations on the Administration of Foreign-Funded Insurance Companies (Order No. 336), which will take effect on August 1, 2013. The amendments are comprised of two paragraphs. The first paragraph of Article 7 has been revised to “the minimum amount of registered capital of a joint venture and wholly foreign invested insurance company is RMB twenty million or convertible currency in equivalent.” The second paragraph of Article 7 has been revised to read, “a foreign-funded insurance company shall allot no less than RMB twenty million of working capital to its branch.” The regulation of “contribution of a foreign-funded insurance company shall be convertible currency” is deleted.
(By You Yunting) Abstract: By the “Management Measures of Internet Information Services” (the “Measures”) issued by the State Council, China will carry out a new system of filing and recording to those non-operating Internet information services, namely those services involving the open sharing of information. These websites falling within the measures shall undertake the recording and filing procedures laid out before publishing any and all information. Yet, the situation seems to have undergone some changes with the promulgation of the working draft of the “Management Regulations of Network Publishing Services” (the “Regulations”), wherein most information released onto the network would be deemed so-called “network publishing.” As provided in the Regulations, no matter whether the service is operating or non-operating, the requirements for a Network Publishing Service License (the “License”) shall apply. It can be easily seen that such regulations are being made that are essentially beyond any lawful authorization, and are in fact contrary to rules previously issued by the State Council.
I. Eight Provinces Including Beijing will gradually Develop the Pilots to be Levied VAT Instead of Business Tax from 1st of August, 2012.
The Ministry of Finance and State Administration of Taxation jointly issued the Notice on Developing the Pilots to be Levied VAT Instead of Business Tax in Transportation Industry and Partly Modern Services Industry in 8 Provinces or Cities including Beijing (hereinafter referred to as the “Notice”) on 31st of July, 2012. According to the Notice, upon the approval of the State Council, the range of pilots is extended to Shanghai, Beijing, Tianjin, Jiangsu, Anhui, Zhejiang, Fujian, Hubei and Guangdong. The transition of such tax policy shall be completed before 1st of September, 2012 in Beijing, 1st of November, 2012 in Fujian and Guangdong and 1st of December, 2012 in Tianjin, Zhejiang and Hubei. The pilot plan is basically the same as that of Shanghai. On 10th of August, 2012, the State Administration of Taxation published the Announcement on Relevant Issues concerning Qualification Verification of a General VAT Taxpayer in 8 Provinces and Cities Including Beijing Developing Pilots to be Levied VAT Instead of Business Tax.
From this month, Bridge IPR Commentary will update the latest laws and regulations promulgated in China.
1. The Ministry of Commerce issued the Notice of the Problems regarding Cross- border Direct Investment Denominated in RMB (hereinafter referred to the Notice)
On 14th October, 2011, the Ministry of Commerce released the Notice, which regulates that the overseas investors (including the Hong Kong and Macau investors) can directly invest the RMB gained legally from overseas on business. The Notice defines the concept of “the RMB circulating outside China”, and regulates the investment scope, review and approval procedures and so on. By the Notice, the cross-border direct investment in RMB cannot be made in securities or derivatives (except otherwise specified), either be used for the entrusted loans. Regarding the administrative procedure of review and approval, there will be no alternation on the current review and approval power, which provides that the cross-border direct investment in RMB shall be approved by the local administrative departments of commerce according to the effective administrative regulations of the review and approval of foreign investment. For those investment projects and financial warrant of 300 million or more, foreign invested companies, macro control industry and other projects, the agreement from the Ministry of Commerce is demanded before the approval of the provincial commerce administration. And the procedure related will be simplified the Ministry of Commerce basing the practices of the cross-border direct investment in RMB.