Our collection of resources based on what we have learned on the ground
Resources
Q&A
What does China Energy Label (CEL) entail?
- June 2014
- Free Access
In recent years, energy efficiency has become a greater focus of Chinese product regulations. The CEL is a system of compulsory certification for specified electronic devides, and is equivalent to the EU Energy Label. Introduced in 2005, CEL places p...
Q&A
What information does a China Energy Label (CEL) contain?
- June 2014
- Free Access
The CEL should be placed in a prominent location on the product itself or the closest layer of packaging to the product. A CEL contains the following information: Name or abbreviation of the producer; Product specification and model;...
Q&A
How have the wages for Chinese people developed in China and what are the prospe...
- June 2014
- Free Access
In recent years, the Chinese government has been pushing for pay increases to retain public support and boost domestic consumption. Wages have also risen as millions of Chinese move from the countryside into the cities, and as employers struggle t...
Q&A
Where do tier-two and three consumers spend their money in China?
- June 2014
- Free Access
According to Nielsen, the top four areas where tier-two and three consumers are spending their spare cash are new clothing, dining out, education funds and into saving deposits. For 2013, these two tiers contributed almost half of the total fast-m...
Q&A
Will China?s middle-class grow bigger?
- June 2014
- Free Access
By 2022, the upper middle class is estimated to account for 54 percent of urban households and 56 percent of urban private consumption. Middle-class growth rates are expected to be far greater in the smaller and less developed third and fourth tier c...
Q&A
Why is it important for companies in China to keep the generational change in mi...
- June 2014
- Free Access
Companies should keep the generational change in mind and the effect of differently held values on the consumption behavior of China’s younger generation. According to a study on Chinese consumers conducted by the Samsung Economic Research Inst...
Q&A
What is the outline of China?s retail sector right now?
- June 2014
- Free Access
Currently, China’s retail sector is fragmented. Small independent stores dominate the retail landscape, with the top 100 retailers accounting for only 11 percent of total retail sales. For a long time, companies only set up stores in the downto...
Q&A
What are the requirements for setting up a foreign-invested commercial enterpris...
- June 2014
- Free Access
To set up a retail store in China, foreign investors must first (or concurrently) register a foreign-invested commercial enterprise. According to the 2004 FICE regulations, setting up a FICE requires applicants to meet the following criteria: ...
Q&A
How was China?s Company Law amended at the end of 2013?
- June 2014
- Free Access
China amended its Company Law at the end of 2013, which, with certain exceptions, removed the previously mandatory requirement of minimum registered capital for establishing a company. The same law also replaced the paid-up capital registration syste...
Q&A
What is the minimum amount of capital needed to establish a foreign-invested com...
- June 2014
- Free Access
While in theory the new Company Law suggest that a FICE may be established with US$1 of capita, in practice, this is not a good idea for the following reason: a FICE’s capital should cover its pre-operational expenses (including rental fees, ta...
Q&A
What are the limitations that apply to foreign-invested commercial enterprises (...
- June 2014
- Free Access
Limitations apply to FICEs dealing in specific products such as books, periodicals, newspapers, pharmaceutical products, agricultural chemicals or films, chemical fertilizers, processed oil, grain, vegetable oil, edible sugar, and cotton. If a foreig...
Q&A
How long is the application process to establish a foreign-invested commercial e...
- June 2014
- Free Access
Depending on the region of registration, planned business scope, and complexity of the business plan, the application process to establish a FICE generally takes five to six months and can be divided into two parts: pre-registration, i.e., what happe...
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