Legal & Regulatory

China Adopts Labor Contract Law

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On Friday, June 29, 2007 China’s top legislature, the National People’s Congress (NPC) adopted the labor contract law. The controversial bill gained increased exposure and was all but guaranteed passage after the Shanxi brick kill slavery scandal of early June. The law, which will come into effect on January 1, 2008, won 145 of the […]

VAT rebate reduction update

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As many of Dezan Shira & Associates clients and China Briefing Blog readers will know, the Chinese government has reduced the amount of VAT rebates applicable upon export of some 2,831 different types of products in a circular that takes effect from this Sunday, July 1, 2007. This was anticipated in the May issue of […]

Mandatory registration for internet access in Shenzhen

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Companies in Shenzhen have recently received letters from the local Public Security Bureau (PSB) reminding them to register their internet access or face punishment and blockage from the internet for six months. This reminder is in line with a rule that states every company with access to the internet must register with the Shenzhen PSB within […]

Compensation payments for deceased employees in Dalian

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The has been plenty of press about the various additions and subtractions to the second draft labor law – China Briefing looked at it in May – and with all the recent focus on worker’s rights, we decided to post a recent case blog contributor Adam Livermore of Dezan Shira & Associates’ Dalian office dealt with regarding deceased […]

New developments for foreign trade companies inside the Yantian and Futian FTZs

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The Notice on Relevant Issues in the Administration of Foreign Trade in Free Trade Zones and Bonded Logistics Parks was issued on July 13, 2005 and clarified that trade companies inside the Yantian & Futian FTZs may apply to the Ministry of Commerce for foreign trade and distribution rights. Since the first of March, the […]

Environmental evaluation reports in Guangzhou and the Pearl River Delta

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As a consequence of being the main pioneering area for the reforms and opening up policies of the People’s Republic of China and as well as the world’s factory hub for more than a decade, investments in Pearl River Delta are increasingly being more affected by pollution related problems. Environmental issues here, more than anywhere […]

Electronic Foreign Exchange Certificate application process changes in Hangzhou

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Chief representatives of ROs and the legal representatives for FICEs are now required to go in person to register for a foreign exchange certificate if they want to have an account that can accept foreign currencies in Hangzhou. This new regulation differs from that of Shanghai where an agent applies for the Electronic Foreign Exchange […]

China’s corporate bankruptcy law comes into effect

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China’s corporate bankruptcy law took effect today. The law, which effects both foreign and domestic companies, allows creditors or financial supervision agencies to initiate bankruptcy proceedings against companies whose managements are unwilling to do so. The law should streamline the process for declaring bankruptcy or securing defaulted payments, especially for foreign companies that before fell […]

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