Our collection of resources based on what we have learned on the ground
Resources
Q&A
For what reasons are employees terminated in China?
- June 2015
- Free Access
Terminating an employee in China can only be done for a number of reasons. Because Chinese law does not recognize “at will” termination, the business should be prepared to provide severance payments. The employer may terminate employees w...
Q&A
What does it mean for a company to be dormant?
- June 2015
- Free Access
There is no official term used to express a company’s state of dormancy in Chinese corporate law. However, for a company to become dormant, it must temporarily bring its activities to a halt. A reduction of operations may seem detrimental, but ...
Q&A
What role does the automotive parts industry play in the growth of the Chinese e...
- May 2015
- Free Access
Named as one of the “pillar industries”, the car manufacturing industry is core to China’s economic policy and contributes over 5 percent of the country’s GDP. Car companies benefit from various preferential policies and incen...
Q&A
What steps have the Chinese government taken to improve traffic conditions?
- May 2015
- Free Access
The rapid growth of car use has resulted not only in traffic jams in many of China’s major cities but also in heavy air pollution which has become an everyday concern in recent years. Accordingly, city officials decided to limit the issuing of ...
Q&A
How does the Chinese government regulate foreign investment in the automotive in...
- May 2015
- Members Access
China maintains a list of regulations regarding foreign investment in certain sections of its economy in a document known as the Catalogue for the Guidance of Foreign Investment. It defines foreign investment in certain industries as either enc...
Q&A
What type of market structure does the car manufacturing industry in China exhib...
- May 2015
- Members Access
At large, the car manufacturing industry exhibits a lopsided structure. Thousands of small companies make up the auto parts sector, thus, forming a highly fragmented car parts supply market. However, there are only a few car assemblers at the e...
Q&A
What are some of the special treatments which automotive parts manufacturers can...
- May 2015
- Free Access
The Shanghai Government released its own Negative List specifically for foreign investment in the Free Trade Zone. While the manufacturing of finished cars is still prohibited in this list as in the universal Catalogue, the latest Negative List relea...
Q&A
What is the licensing process for auto parts producers in China?
- May 2015
- Free Access
A Production License is required by the Administration of Quality Supervision, Inspection and Quarantine (AQSIQ) if a company wishes to engage in the production of certain auto parts in China. Specifically speaking, the company needs to submit the ap...
Q&A
Which car parts are subject to consumption tax in China?
- May 2015
- Free Access
Vehicle tires, small and medium-sized commercial vehicles and passenger vehicles with cylinders are all subject to consumption tax. The current CT regime requires that only producers, importers and subcontractors pay CT when they sell a taxable produ...
Q&A
How is the Value-added Tax treatment towards cars and car parts manufacturers in...
- May 2015
- Free Access
The general Value-added tax (VAT) rate of 17 percent applies to both cars and car parts. However, it is important to notice the difference in VAT treatment to small-scale tax payers and general tax payers, which are distinguished based on their annua...
Q&A
What regulations or conditions do Chinese employers face when their employees ar...
- May 2015
- Free Access
In addition to the compensation that the employee is entitled to under the Work-related Injury Insurance scheme, the employer will also be responsible for damages in a work-related accident. Any exoneration clauses that free employers from liabilitie...
Q&A
What is VECITA?
- May 2015
- Free Access
VECITA is Vietnam’s Ministry of Industry and Trade E-Commerce and Information Technology Department. It works together with regional governments in order to support the creation of the ASEAN Economic Community as well as to promote the developm...
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