Tag Archives: State Administration of Foreign Exchange

Laws and Regulations Update in July 2016

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1. The State Council Publishes the Guiding Opinions on the Establishment and Strengthening of the Credit-Based Incentive and Punishment System in Order to Accelerate the Build-up of Social Credit and Moral Awareness

 

On 12th June 2016 the State Council published the Guiding Opinions on the Establishment and Strengthening of the Credit-Based Incentive and Punishment System in Order to Accelerate the Build-up of Social Credit and Moral Awareness (“Guiding Opinions”)

The Guiding Opinions indicates the necessity of the rapid development of the social credit system, making information about a person’s credit more widely available and shared, by using motivation and restraint in a legal way and creating a credit-based incentive and punishment mechanism involving government authorities and other communities in various regions, departments and areas, in order to make sure that people could do businesses in legal and honest ways without violating the good market order, in a society with good moral awareness. [Full Text]

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How shall Overseas Companies Undergo Registration Procedures When Attempting to Provide Guarantees for a Domestic Loan?

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(By You Yunting and Wang Ting) The Chinese government imposes very strict regulations in regard to guarantees in foreign funds for domestic companies. Overseas companies or institutions, whether acting as a guarantor or a guaranteed person, must perform these registration procedures. Today we would like to introduce how domestic companies perform these registration procedures when overseas companies attempt to provide guarantees for domestic loans.

When overseas companies, in accordance with relevant regulations regarding loans to domestic finance organizations, offer loans to aforesaid finance organizations, these domestic groups can accept such loans and guarantees from both individuals and organizations outside China’s border. Such services provided by individuals and organizations in foreign jurisdictions can support the development of domestic companies, as well as exert positive effects on the investment of enterprise fixed assets and requirements of liquid capital.

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China’s Latest Laws and Regulations in March 2013

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I. The Ministry of Commerce Issued Opinions Concerning the 2013 Guide on Attracting Foreign Investment Jobs 

On March 19, 2013, the Ministry of Commerce issued Opinions Concerning the 2013 Guide on Attracting Foreign Investment Work (“Opinions”), which emphasizes attracting foreign investment in the high value-added manufacturing industry, enhancing openness of the service industry to the outside world, and strengthening the important role of foreign investment in the introduction of technology and knowhow. The Opinions also promote advancement of foreign investment in eastern areas and bringing change to central western areas, as well as further improving the investment environment to protect the legal rights and interests of foreign invested enterprises and improving protection of intellectual property rights. The Ministry of Commerce concurrently released a report on the situation of foreign investment attraction in 2012.

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China’s Latest Laws and Regulations in December (II), 2012

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V. The Ministry of Finance Issued Interpretation Number Five on Accounting Standards for Business Enterprises 

Recently, the Ministry of Finance issued Interpretation Number Five on Accounting Standards for Business Enterprises, which provides interpretations on fives issues, including: business mergers, business launches, credit risk mitigation tools and related services, and how to process accounting step by step in cases where an enterprises invests equity in its subsidiary and ultimately loses its right of control through several transactions.

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