China Briefing News



Shanghai Expo 2010: The UK Pavilion (Mar 12)
The 2010 World Exposition in Shanghai will be the first registered one in a developing country. Officially known as “Expo Shanghai 2010,” it will last 184 days and provide China an opportunity to show off its remarkable economic growth. The expo will also give foreign nations and companies a chance to [...]


Triggering Permanent Establishment In China Representative Offices (Mar 12)
China-derived income key to understanding potential tax liabilities By Chris Devonshire-Ellis Mar. 12 – The recent rulings by the State Administration of Tax concerning the taxable income of representative offices in China highlights an important status position in the activities of the RO – and the question of whether an RO is in fact operating as a [...]


AmCham South China releases Special Report on the State of the Business in China (Mar 12)
GUANGZHOU, March 12 – The American Chamber of Commerce in South China launched its 2010 special report on the state of the business in South China and a white paper on the business environment in China yesterday. The special report details the results of a study conducted by AmCham South China among their members from December [...]


China’s CPI Rise Stokes Inflation Fears (Mar 12)
Mar. 12 – China’s consumer price index in February rose at its fastest clip in 15 months, putting pressure on the government to tighten monetary policy. A key gauge of inflation, the country’s CPI last month grew by a stronger than expected 2.7 percent year-on-year, up still from the 1.5 percent increase experienced in January. Food prices [...]


SAT Clarifies Implementation Issues for Corporate Income Tax (Mar 12)
Mar. 12 – On February 22, the State Administration of Taxation published Circular 79 in an effort to clarify certain technical issues for corporate income tax purposes including the timing of income recognition, tax treatments for certain expenses, and the determination of tax basis for fixed assets. This clarification relates tax treatment for expenses including those [...]


China’s Foreign Trade up 45 Percent in February (Mar 11)
Mar. 11 – China’s exports grew for the third straight month in February to US$94.52 billion, up from 45.7 percent year-on-year, indicating a rebound in global demand. Imports also increased according to statistics released by the General Administration of Customs on Wednesday, rising 44.7 percent to US$86.91 billion. Exports grew 8.2 percent compared with the same [...]


China to Fine-Tune its Stimulus Plan (Mar 11)
Mar. 11 – China will reform the RMB exchange rate in a gradual and controlled manner and Chinese economic stimulus plans will be continuously implemented but fine-tuned, China’s Minister of Commerce Chen Deming said before the National People’s Congress on March 8. Chen explained that all of China’s current financial policies, including the policy of the [...]


Illegal Use of Company Chops Seemingly Endorsed in Beijing Court Ruling (Mar 10)
Mar. 10 – A court in Beijing has awarded an employee of a foreign-invested advertising company RMB400,000 for wrongful dismissal after the employee was fired when she established a trade union using the company’s chop without permission, China National Radio reported on Tuesday. The former human resources manager at R&D Advertising in Beijing, identified as Ms. [...]


New Board to Bring Major Multinational Firms to Mainland Soon (Mar 10)
Mar. 10 – The Shanghai Stock Exchange completed draft listing and trading rules of its international board which will allow overseas companies to float shares in China’s A-share market, SSE Chairman Geng Liang said on Monday. The draft rules are completed, but they are still working on the details, and the revised rules will be available [...]


RO Chief Representatives May Consider Power of Attorney in Tax Questioning (Mar 9)
Op/Ed Commentary: Chris Devonshire-Ellis and Richard Hoffmann Mar. 9 – With foreign company representative offices coming under intense scrutiny at the present time due to the changes in tax treatments levied from January 1, 2010, pressure is now on the chief representatives of China-based ROs to fully comply with tax audits and questions raised over their [...]