The Business Guide to China

by ;
Format: Paperback
Pub. Date: 1997-03-01
Publisher(s): Butterworth-Heinemann
List Price: $24.95

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Summary

Since opening its door to foreign investment in 1979 China has undergone tremendous changes and a legal system for foreign trade and investment has been built up from virtual void to now, one of the most complete legal system for foreign investment in a developing transitional economy. The book provides a broad framework of the legislation and various issues relating to establishing an investment and conducting business activities in the People's Republic of China. One of the authors was a principal drafter on Joint Venture Laws and is currently advising on the interpretation of these laws and regulations.

Table of Contents

About the authors v(2)
Preface vii
Part 1 Economic Reform and Investment Opportunities an Overview 3(22)
1 Economic and Financial Reforms
3(6)
Developing a `Socialist Market' Economy
3(1)
Taxation System Reforms
4(1)
Developing Financial Markets
4(1)
Restructuring of the Banking System
5(1)
Foreign Exchange Reforms
6(1)
Loans for Investment Purposes
6(3)
2 Opportunities and Incentives
9(6)
Guidelines for Foreign Investment
9(2)
Preferential Policies
11(1)
Investment by Multinationals
12(3)
3 An Overview of the Rules affecting Foreign Investors
15(10)
Joint Ventures
16(2)
Foreign-owned Enterprises
18(1)
Foreign Exchange Controls
18(1)
Intellectual Property
19(1)
Special Economic Zones
20(1)
Arbitration Practices
20(2)
Guan Xi
22(3)
Part 2 Forms of Investment 25(38)
4 Chinese - Foreign Equity Joint Ventures
25(10)
Parties to an Equity Joint Venture
25(1)
Basic Policy Requirements
26(1)
Main Industries or Fields of Investment
26(1)
Approval Procedures
27(2)
Registration
29(1)
Registered Capital and Investment Contribution
30(1)
Relevant Taxed and Rates
30(2)
Duration of a Joint Venture
32(1)
Settlement of Disputes
32(3)
5 Chinese - Foreign Cooperative Joint Ventures
35(10)
Characteristics of a Cooperative Joint Venture
35(1)
Parties to a Cooperative Joint Venture
36(1)
Financial Arrangements
36(3)
Fields of Investment
39(1)
Approval Procedures
40(2)
Organisation, Structure and Management
42(1)
Distribution of Earnings and Recovery of Investment
43(1)
Duration of a Cooperative Joint Venture
43(2)
6 Wholly Foreign-Owned Investment Enterprises
45(12)
Conditions for establishing a Wholly Foreign-owned Enterprise
46(1)
Forms of Contributing Investment
47(1)
Establishment Procedures
47(3)
Registered Capital
50(1)
Purchasing of Raw Materials and Marketing of Products
51(1)
Financial Arrangements
51(3)
Labour Management and Trade Unions
54(1)
Duration of the Enterprise
55(2)
7 Holding Companies
57(6)
Conditions for Establishment
57(1)
Approval Procedures
58(1)
Terms of Operation
59(1)
Business Scope
59(1)
Investment Enterprises of the Holding Company
60(3)
Part 3 Operational Issues 63(50)
8 Management of Joint Ventures
63(4)
Board of Directors
63(1)
Management Structure
64(1)
Conflicts of Interest and Compliance with the Law
65(2)
9 Customs Duties
67(8)
Tariff Commission
67(1)
Tariff Rates
68(5)
Procedures for Appeal
73(1)
Penalties
74(1)
10 Labour Management
75(10)
Engagement and Dismissal of Staff
76(1)
Labour Protection
77(1)
Wages, Insurance and Welfare Benefits
78(1)
Work Hours
79(1)
Labour Contracts
80(5)
11 Trade
85(10)
Foreign Trade Law
86(2)
Import and Export of Goods and Technologies
88(2)
China's Contract Law
90(2)
Experiments in Comprehensive Trading
92(3)
12 Retail Industry
95(8)
Opening up to Foreign Participation
96(1)
Trailling Foreign-funded Enterprises
97(1)
Joint Venture Chainstores
98(5)
13 Negotiations, Disputes and Arbitration
103(10)
Chinese Negotiation Styles
103(1)
Dispute Resolution
104(1)
Arbitration Law
105(8)
Part 4 Financial Issues 113(52)
14 The Financial System
113(10)
Transforming The People's Bank
114(1)
Commercialising the Banking System
115(2)
Credit for Foreign Investors
117(1)
Borrowing from Domestic Banking Institutions
118(1)
Conditions and Guarantees for Loans
119(3)
Foreign Exchange Loans from Foreign-funded Banking Institutions
122(1)
15 Foreign Exchange
123(10)
Early Policies
123(1)
Reforms to the Foreign Exchange System
124(2)
Rates
126(1)
Control of Forex by Foreign Investors
127(2)
From swap Centre to Inter-bank Market
129(1)
Renminbi Convertibility
130(1)
Recent and Future Measures
130(3)
16 Emerging Securities Markets
133(10)
The Development of China's Securities Markets
133(2)
Existing Stock-markets
135(1)
Development of the Shareholding System
136(4)
Future Developments
140(3)
17 Taxation
143(22)
Value Added Tax (VAT)
143(1)
Consumption Tax and Business Tax
144(1)
Income Tax payable by Enterprise
145(1)
Income Tax payable by Individuals
145(1)
Resources Tax
146(1)
Land Appreciation Tax
146(2)
Further Tax Reforms
148(1)
Preferential Policies for Foreign Investors
148(1)
Foreign Enterprise Income Tax
149(6)
Income Tax on Royalties
155(2)
Tax Treatment of Intangible Assets and Establishment Costs
157(1)
Double Taxation Agreements
157(1)
Foreign Investors and China's Taxation System
158(7)
Part 5 Intellectual Property and Technology Transfer 165(40)
18 Trademarks
165(22)
Registration
166(1)
The First-to-File Principle
167(1)
The Paris Convention
168(1)
Trademark Infringement
169(2)
The Trademark Bureau
171(3)
Product Classification
174(3)
Opposition to a Trademark Application
177(1)
Reapplication after Rejection
178(1)
Licensing Trademarks
178(1)
Developing a Chinese Trademark
179(6)
Market Recognition of Trademarks
185(2)
19 Patents
187(4)
The Patent Office
187(1)
Patent Legislation
188(1)
China's Membership of International Conventions
189(1)
Taiwan Patents
189(2)
20 Copyright
191(6)
Development of Copyright Protection
191(1)
Copyright Law for Authors
192(1)
China's Membership of International Conventions
193(1)
Development of National Copyright Administration
193(4)
21 Technology Transfer
197(8)
Technology Import Contract Regulations
197(3)
Importation of Know-How and Technology
200(5)
Appendices 205(53)
Appendix I China Foreign Investment Guidelines Catalogue (by sector in 1995) 205(8)
Appendix II Sample Contract for Joint Ventures using Chinese and Foreign Investment 213(20)
Appendix III Sample Articles of Association for Joint Ventures using Chinese and Foreign Investment 233(16)
Appendix IV Sample Application Form for the Establishment of a Foreign Capital Enterprise in China 249(6)
Appendix V Sample Approval Certificate for a Foreign Investment Enterprise 255(3)
Index 258

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