chapter 2 : forex policy and low

1. SAFE Promulgates New Rules on Offshore Lending The Circular on the Administration of Foreign Exchange in Offshore Lending by Domestic Enterprises issued earlier by the State Administration of Foreign Exchange (SAFE) will become effective on 1 August

2.Pre-tax Deduction of SME Credit Guarantee Institution Reserve Fund Extended According to the Circular on Pre-tax Deduction of SME Credit Guarantee Institution Loan Loss Reserve Fund issued by the Ministry of Finance and State Administration of Taxation earlier, the effective period for the implementation of the policy

3.Unified Enterprise Quality Rating to be Adopted At the Quality and Safety Year’s Quality Excellence Forum convened on 16 June by government departments including the General Administration of Quality Supervision, Inspection and Quarantine (AQSIQ)

4.Vehicle Energy Saving Policy Soon to Come Out The Regulations for the Administration of Fuel Consumption Labelling of Light Vehicles, issued by the Ministry of Industry and Information Technology (MIIT) to canvass public opinions, are scheduled for implementation on 1 January 2010

5.High Performance Products Included in "Appliances to Countryside" Scheme A person-in-charge of the Economic Construction Department under the Ministry of Finance remarked that as product variety under the "home appliances to the countryside" scheme increases and the ceiling price of some products has been raised


6.Trademark Registration Soon to Take Less Than One Year in China The State Administration for Industry and Commerce (SAIC) issued an opinion paper on the implementation of China’s mid- and long-term trademark strategy on 3 June. According to this strategy

7."Financial Supermarket" Targets SMEs in Xian High-tech Zone Sources from the Xian High-tech Zone Start-up Park disclosed that a dedicated "financial supermarket" for small and medium-sized enterprises (SMEs) has been launched in the park

8.Control over Forex Source and Outward Remittance to be Relaxed According to the Regulations for the Administration of Foreign Exchange for Offshore Direct Investment by Domestic Institutions (Draft) issued by the State Administration of Foreign Exchange (SAFE), the scope of forex capital for offshore investment will be expanded

9.Pilot Reform of Classified Customs Clearance of Export Goods Launched According to sources from the national customs working conference on pilot reform of classified customs clearance, this year the General Administration of Customs (GAC) will launch pilot reform of classified customs clearance of export goods in 15 customs offices across the country with large export goods volume


10.SAT Announces Preferential Policy on Income Tax of Venture Capital Enterprises To implement preferential policy on the income tax of venture capital enterprises and promote the development of venture capital enterprises, the State Administration of Taxation (SAT) has published a notice clarifying issues relating to income tax concessions for venture capital enterprises

11.Unauthorised Use of RMB Banknote Patterns Banned in Ads The State Administration for Industry and Commerce (SAIC) and the People’s Bank of China (PBOC) have earlier issued a circular prohibiting the release of advertisements using counterfeited or altered renminbi (RMB) banknotes

12.SAT Issues Circular on Determination of Chinese Tax Resident Enterprises To provide guidance on the determination of tax residence status of enterprises under the Enterprise Income Tax Law and strengthen the administration of enterprise income tax, the State Administration of Taxation (SAT) has recently issued a circular providing clarifications on the determination of Chinese-controlled offshore incorporated enterprises


13.Guangdong Propels VAT Reform Guangdong’s state tax department has taken a number of measures aimed at propelling the transformation and reform of value-added tax (VAT), expediting the pace of export VAT rebate, assisting enterprises in solving practical problems, and promoting the steady development of the local economy

14.Local Governments All Out to Achieve 8% Growth After the close of the NPC and CPPCC sessions recently, local governments have been escalating their efforts in “maintaining 8% growth”. Beijing, Shanghai, Tianjin and Chongqing – the four municipalities directly under the central government – are striving to stay ahead in the race

15.Four Measures to Support New Energy Car At the China Auto Innovation Forum held in Shanghai on 18 April, Minister of Science and Technology Wan Gang disclosed that the Ministry of Science and Technology (MOST) will introduce four measures to strengthen its support for new energy cars

16.Rmb100 billion to Speed up Yellow River Delta Development Against the backdrop of the financial crisis, regional economy is overtaking industry to become the engine driving China’s economic development. In addition to invigorating industry, the central government is also using regional economy as a new way of thinking in promoting economic growth

17.Over 60% Goods Enjoy Zero Tariffs under China- ASEAN FTA At a recent press briefing held by the Ministry of Commerce (MOFCOM), it was revealed that through lowering and lifting tariffs on a reciprocal basis and further liberalising the services and investment sectors, a win-win situation has been achieved between China and the trading partners concerned

18.SAIC Calls for Setting up Sound Food Safety Supervision Systems To fully implement food safety regulations, the State Administration for Industry and Commerce (SAIC) calls on the industry and commerce administration department in all localities to set up six food safety supervision systems in a move

19.Streamlining Export VAT Rebate Processing System To tackle the worsening international financial crisis, promote the healthy development of China's exports, and optimise tax rebate service, the State Administration of Taxation (SAT) has made a decision to streamline the export VAT rebate


20.MOFCOM Encourages Enterprises to "Go Out" The Ministry of Commerce (MOFCOM) issued the Administrative Measures for Offshore Investment on 16 March. Under the measures, MOFCOM reserves the right to approve only a few types of major offshore investment projects