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Q&A

How are wages determined in China?

How are wages determined in China?

Wage standards in China are set for individual cities, provinces and other administrative units by their respective local governments, rather than on a nationwide basis. As of June 2014, wages has been hiked in eleven areas – Beijing, Chongq...

Q&A

What does the China-ASEAN free trade agreement (FTA) entail?

What does the China-ASEAN free trade agreement (FTA) entail?

The China-ASEAN FTA was signed off in 2002 and came into effect more than three years ago. It offers a way out by allowing companies to reposition manufacturing to other low cost areas of Asia, yet still be able to service the China market via the du...

Q&A

With manufacturing costs going up in China, what strategies can China-based manu...

With manufacturing costs going up in China, what strategies can China-based manu...

As low-cost production is moving away from China and into other Asian nations that are becoming as efficient as mass manufacturing, healthy economic growth requires that China creates higher-skilled manufacturing jobs, becomes more innovative and dev...

Q&A

Can existing wholly foreign-owned enterprises (WFOEs) engage in distribution in ...

Can existing wholly foreign-owned enterprises (WFOEs) engage in distribution in ...

To engage in distribution, an existing manufacturing WFOE will need to expand its business scope. Adding distribution into its business scope means that the WFOE will be able to import goods to China to sell directly, either in wholesale or retail; a...

Q&A

How can an existing manufacturing wholly foreign-owned enterprise (WFOE) in Chin...

How can an existing manufacturing wholly foreign-owned enterprise (WFOE) in Chin...

To expand the business scope of a WFOE in China, it should amend its articles of association, fill out the relevant application forms, and submit them in accordance with the legal procedures for expanding an enterprise’s business scope. The ...

Q&A

What does the Revised Environmental Protection Law in China entail?

What does the Revised Environmental Protection Law in China entail?

On April 22, 2014, the Standing Committee of the National People’s Congress passed a revision to the 1989 Environmental Protection Law. The Revised Law, which contains 70 articles in comparison to only 46 in its predecessor, will take effect on...

Q&A

Does the Revised Environmental Protection Law in China contain heavier punishmen...

Does the Revised Environmental Protection Law in China contain heavier punishmen...

Overall, the Revised Law establishes heavier punishments for pollution enterprises and government officials connected to pollution incidents. All parties involved in conducting fraudulent or environmentally damaging activities will bear joint liabili...

Q&A

Will the Revised Environmental Protection Law in China make it easier to file la...

Will the Revised Environmental Protection Law in China make it easier to file la...

The Revised Law widens the channels for initiating public-interest environmental litigation against polluters. While previously only a single state-controlled NGO was capable of bringing such suits to court, under the Revised Law, all social organiza...

Q&A

Does the Revised Environmental Protection Law in China require environmental ass...

Does the Revised Environmental Protection Law in China require environmental ass...

The Revised Law requires two types of environmental assessments to be conducted prior to certain types of industrial projects. An environmental impact assessment (EIA) is required for all construction projects, including new construction, modificatio...

Q&A

Why are most foreign businesses in China not leaving the country completely?

Why are most foreign businesses in China not leaving the country completely?

Domestic consumption, particularly among the middle class, is expected to be a major factor in the US$4 trillion of growth forecasted for the Chinese economy over the next decade. Rising wage costs in China may be prompting companies to relocate thei...

Q&A

What are the developing trends among Chinese consumers?

What are the developing trends among Chinese consumers?

Trends among Chinese consumers will largely follow those seen in the economic booms of Japan, Korea and Taiwan. Chinese consumers today are richer, more urbanized, better educated, more upwardly mobile, and more willing to postpone life stages than t...

Q&A

Which industries are poised to boom in the next coming years in China?

Which industries are poised to boom in the next coming years in China?

Certain industries are poised to boom in light of the coming economic and demographic shifts in Chinese society and thus represent the brightest opportunities for foreign investment: E-commerce - for several years, e-commerce in China has been one...

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