The Government of Mainland China
2017.07.31
On paper the National People's Congress (NPC) of the People's Republic is the highest organ of state power and includes delegates from 23 provinces, 4 municipalities, 5 autonomous regions and 2 special administrative regions (SAR). The NPC convenes once a year and when it is not in session, the Standing Committee of the NPC takes on its administrative powers. Both the NPC and its Standing committee have a term of office of five years. The NPC’s powers include the rights of legislation,...

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Incentives for Business Activities
2017.07.31
The Foreign Enterprise Investment Projects Instruction Catalogue ("the Catalogue") categorises to all foreign investments into three types: encouraged industries; restricted industries and prohibited industries. Those FIEs that fall into the "encouraged industries" category may be offered, in addition to other incentives, customs and tax breaks. Many of the industries that will receive the incentives are those which can offer advanced and environmentally friendly technolog...

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New PRC Enterprise Bankruptcy Law
2017.07.31
After twelve years of discussion the new Enterprise Bankruptcy Law came into effect on 1 June 2007. The New Bankruptcy Law applies to all entities that hold legal person status, including private companies, foreign enterprises, limited liability companies, and companies limited by shares, as well as state owned enterprises (SOEs). However, the New Bankruptcy Law does not apply to insolvent partnerships and individuals and at present, there is no personal bankruptcy system in China. The new...

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New PRC Labor Contract Law
2017.07.31
The new Labour Contract Law became effective on 1 January 2008 and applies to all enterprises, individual owned economic organizations and private non-enterprise work units in China. Under the new law, there must be written labour contracts to establish labour relationships. There are four types of labour contracts specified: 1. Contracts with fixed terms of service 2. Contracts with unfixed terms of service 3. Contracts where the terms of service equal to the period required to complete...

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Control on Foreign Investment
2017.07.31
Monitored by the State Administration of Foreign Exchange and the People's Bank of China. For foreign investment enterprises and individuals, revenue and expenses in foreign currencies have to be deposited with or withdrawn from their accounts with the Bank of China or other authorised banks. After tax profits or income of foreign investment enterprises or individuals can be remitted outside mainland China. The RMB has appreciated steadily over the recent years and in April 2008 it stood...

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