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.
2. The People’s Bank of China (PBC) issued the Administrative Rules on Settlement Business of Foreign Direct Investment Denominated in RMB (hereinafter referred to Administrative Rules)
On 13th October, 2011, the People’s Bank of China (PBC) issued the Administrative Rules. The Administrative Rules makes it clear that overseas enterprises, economic entities and individuals can apply directly to commercial banks for settlement of their RMB denominated direct investment as long as such investment comply with the relevant laws in China that governs FDI activities, and the commercial banks shall provide RMB fund settlement services to enterprises established with FDI.
3. The State Council studied and confirmed the financial and taxation policies for the support of the small enterprises
On 12th October, 2011, the Premier Wen Jiabao presided over the executive meeting of the State Council to study and confirm the financial and taxation policies and measures to support the development of the small and mini enterprises. On the meeting, it has been studied and confirmed the policies and measures to support the development of the small and mini enterprises in finance and fiscal policy, including to increase the credit support, to clear and correct the unreasonable charge of financial services, to broaden the finance channel of small and mini enterprises, as well as to strengthen the taxation aid and support for small and mini enterprises, to increase the threshold of value added tax and business tax, to extend the policy of half income tax to the end of 2015 and to enlarge the applicable scope, and to involve the public technology service demonstration platform of middle and small enterprise into the scope of the preferential tax policy of science and technology development supplies, etc.
Quoted from the Newsletter of DeBund Law Offices.
Introduction on Bridge IPR Commentary:
Mr. You Yunting
Founder & Editor-in-Chief of Bridge IP Commentary
Partner & Attorney-at-law of Shanghai DeBund Law Offices
Email: Bridge@chinaiplawyer.com, Tel: 8621-5213-4900,
You can also find us on Facebook, Twitter and Linkedin.
Bridge IPR Commentary is a website focus on the introduction of commercial laws in China, especially the intellectual property laws. All the posts here are our original works. And all news or cases referred here are from public reports, and our comments or analysis are of due diligence, neutrality and impartiality, representing our own opinions only and are our original works. You may contact us shall you have any opinions or suggestions.
Short Link: