The Improving Business Environment in China
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The Improving Business Environment in China

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By Zhou Yunlei, Ministry of Commerce PRC

By Zhou Yunlei, Ministry of Commerce PRC

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The Improving Business Environment in China The Improving Business Environment in China Presentation Transcript

    • The Improving Business Environment in China
    • by Zhou Yunlei
    • Ministry of Commerce, P.R.C
    • SECTION 1 . China’s WTO accession and market opening
    • SECTION 2. Improving investment environment
    • SECTION 3. Huge Market potential
    • SECTION 4. Recent development of China’s trade policy
    • SECTION 5. Recommendation for investment in China
  • SECTION 1 . China’s WTO accession and market opening
    • Introduction of World Trade Organization:
    • World Trade Organization is described as “one of the three backbones” in the current world economic system (along with IMF and World Bank)
    View slide
  • SECTION 1 . China’s WTO accession and market opening
    • Market opening after China’s WTO accession
    • 1. China’s tariff level has been reduced gradually, and China has phased out all its non-tariff restrictions on imports inconsistent with WTO rules
    View slide
  • SECTION 1 . China’s WTO accession and market opening
    • 2. As one of the most important changes after China’s WTO accession, control on foreign trading rights has been removed completely.
  • SECTION 1 . China’s WTO accession and market opening
    • 3. Liberalizing Trade in Service
    • The overall level of China’s commitments has reached or even exceeded the level of some developed countries.
  • SECTION 1 . China’s WTO accession and market opening
    • (1) Professional Services:
    • China gradually liberalized its professional services sectors such as accounting, legal and auditing service.
  • SECTION 1 . China’s WTO accession and market opening
    • (2) Financial services:
    • Banking: the Regulation of People’s Republic of China on Administration of Foreign-funded Banks eliminated all the restrictions on geography and targeted customers to foreign banking institutions
    • Insurance: all the geographic restrictions to foreign insurance companies have been eliminated.
    • Securities: China will allow qualified foreign investment companies (including banks) to issue A shares (shares calculated in RMB) or issue corporate bonds and financial bonds calculated in RMB.
  • SECTION 1 . China’s WTO accession and market opening
    • According to statistics, China has approved more than 200 foreign invested banking institutions, 70 foreign invested insurance institutions
  • SECTION 2. Improving investment environment
    • 1. Rule of law plays important roles in economic development of China.
    • 2. Effective Macro-Control Measures
    • 3. The control on foreign exchanges is gradually eased, and there’s no restriction on the amount of remitted profits for FIEs.
    • 4. Improvement of basic infrastructure
  • SECTION 2. Improving investment environment
    • 1. Rule of law plays important roles in economic development of China.
    • (1) China established the transparency of legislation as a basic principle to be observed in China’s legislation formulation process.
    • The most important change in the newly issued Enterprise Income Tax Law is unifying the income tax rate for domestic and foreign enterprises
    • The Chinese Government has also established China WTO Notification and Enquiry Centre in the Ministry of Commerce
  • SECTION 2. Improving investment environment
    • (2) . The Protection and Remedy of Right
    • Any citizens, legal person or other organizations can resort to remedy if his or her legal rights or interests have been infringed upon by a specific administrative act.
  • SECTION 2. Improving investment environment
    • (3). Protection of Private Property was incorporated into the Law for the first time.
  • SECTION 2. Improving investment environment
    • (4). Protection of Intellectual Property Rights
    • The Chinese Government set as its priority work to strengthen enforcement of laws to combat IPR infringements. A National Working Group on IPR Protection headed by Vice Premier
    • 50 IPR service centers had been set up all over the country with the hotline "12312"
  • SECTION 2. Improving investment environment
    • 2. Effective Macro-Control Measures
    • The Chinese government implemented a “moderately tight” monetary policy in time so as to alleviate the problem of over-investment and credit expansion
  • SECTION 2. Improving investment environment
    • 3. The control on foreign exchanges is gradually eased, and there’s no restriction on the amount of remitted profits for FIEs.
  • SECTION 2. Improving investment environment
    • 4. Improvement of basic infrastructure
  • SECTION 3. Huge Market potential
    • 1. GDP Growth Rate Reached 11.4% in 2007
    • 2. The Third Largest Trading Nation in the World
    • 3. The most attractive developing country destination for foreign direct investment
  • SECTION 3. Huge Market potential
    • 4. Rapid Growth of Domestic Consumption
    • In 2007, domestic consumption surpassed investment in the contribution to GDP for the first time since 2000.
  • SECTION 3. Huge Market potential 21.5% 38.8% 39.7% 2007 19.5% 41.3% 39.2% 2006 24.1% 37.7% 38.2% 2005 Net Export Investment Domestic Consumption Year
  • SECTION 3. Huge Market potential
    • 5. A Huge Luxury Market
    • 120 million mobile phones, more than 8 million vehicles and 6.297 million laptop computers were sold in China within one year.
  • SECTION 4. Recent development of China’s trade policy
    • China encourages and guides foreign investments in high technology, modern services and modern agriculture.
  • SECTION 4. Recent development of China’s trade policy
    • 1. The amendment of the “Catalogue for the Guidance of Foreign Investment Industry” in 2007.
    • 2. Environmental Protection Is a Fundamental Policy of China
    • 3. Greatly develop service sector, especially service outsourcing
    • 4. Cross-border merge and acquisition will become a main form of enrolling FDI
  • SECTION 4. Recent development of China’s trade policy
    • 1. The amendment of the “Catalogue for the Guidance of Foreign Investment Industry” in 2007.
    • Foreign investments are encouraged in (1).circular economy
    • (2).clean production
    • (3).renewable energy
    • (4).environmental protection
    • (5).integrated utilization of resources
  • SECTION 4. Recent development of China’s trade policy
    • Foreign investments are not encouraged in (1). key scarce or finite mineral resources
    • (2). projects, which are highly resource and energy-consuming and heavily polluting (3). real estate industry
  • SECTION 4. Recent development of China’s trade policy
    • 2. Environmental Protection Is a Fundamental Policy of China
    • 3. Greatly develop service sector, especially service outsourcing
    • 4. Cross-border merge and acquisition will become a main form of enrolling FDI
  • SECTION 5. Recommendation for investment in China
    • 1 . Sectors encouraging foreign investment:
    • 2 . Important policies to encourage and support the Development of SMEs’
    • 3 . Main institutions and websites supporting foreign investment
    • 4 . Appealing process
  • SECTION 5. Recommendation for investment in China
    • 1 . Sectors encouraging foreign investment:
    • Please refer to “Catalogue for the Guidance of Foreign Investment Industry”.
  • SECTION 5. Recommendation for investment in China
    • 2 . Important policies to encourage and support the Development of SMEs’
    • Funds for supporting technological innovation for the technological small and medium-sized enterprises
    • Funds for SMEs Development
    • Funds for international market exploration by SMEs
    • Special funds for establishment of service system for SMEs.
  • SECTION 5. Recommendation for investment in China
    • 3 . Main institutions and websites supporting foreign investment
    • China Council for the Promotion of International Trade (CCPIT) ( www.ccpit.org )
    • China Association of Enterprises with Foreign Investment (CAEFI) ( http:// caefi.mofcom.gov.cn / )
  • SECTION 5. Recommendation for investment in China
    • 4 . Appealing process
    • A Coordination Office and a National Center in will be established to deal with the complaints from foreign invested enterprises.
    • Thank You All, and Welcome to China!