Blogs

Post-Covid Tax Cuts in China—Do you Qualify?

As the economic aftershocks of the worldwide coronavirus pandemic are still prevalent, the Chinese government has cut an array of taxes and fees for both large and small businesses. The stimulus has focus on industries particularly hurt, such as high-tech manufacturing, foreign trade, and medical equipment.

These tax cuts amount to RMB 550 billion (about $85 billion) and are not schedule to be fully phased out until 2025. As we have written before in this blog series, some of the stimulus measures end in 2023, the other in 2025.

They were announced by Vice-Premier Li Keqiang in Beijing’s 2021 two sessions (NPC & CPPCC National Committee annual sessions) that concluded on March 11th 2021.

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China’s Economic Stimulus in Response to the Coronavirus Pandemic

In recent times, due to the coronavirus epidemic, it has become more valuable for businesses to open in China. They have waived fees and given credits to small businesses to stimulate the economy. While they have a wide variety of credits, they do prefer certain businesses, including those like manufacturing business or medical businesses. This is not for the short term, as the benefits could last all the way through the end of 2025. In total, all of the benefits and waived fees total up to around 85 billion dollars.

These benefits were made by Li Keqiang this year (in 2021), during the yearly meetings of the NPC and CPPC national Committee. Li Kequiang is the Premier of the State Council of the PRC and a key architect of the country’s current economic reforms. This isn’t the first time incentives have been set in place for small businesses to come to China. Due to the Coronavirus epidemic, a new volley of such efforts have been made.

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Investment Provinces: a Quick Look at China’s Richest Regions

It is quite well-known that China had made stupendous economic growth in the last 30 years. Today, we compiled a list of the richest provinces where the growth most rapidly occurred.

Guangdong  

The three main cities are: Jiangmen City, Kaiping City, and Foshan City. The GDP (Gross  Domestic Product) is the total of 12.5% of the entire nation. This province is considered one of  the most notable provinces in China, giving it dominant economic and financial strength.  Being China’s most populous province with over 100 million residents, this province is also known for benefiting greatly from the “reform and opening” policies such as the Open Door  Policy.  

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What is an Internet Content Provider License?

First, let’s get down to the nitty-gritty of Internet Content Provider (ICP) licensing. What is it? 

An ICP license is an essential prerequisite for attracting customers in the Chinese mainland. As we have written before, it is a registration issued by the state that allows legal operation of China-based websites to legally operate in the country. 

In order to establish and expand your business globally, especially to China, one must  consider the necessary steps to file for a separate legal entities, as well as consolidating electronic commerce, so that your business will thrive- not only are these steps to getting an  ICP License encouraged, but it is also requirement in order to officially set up your site in  China. The only possible exception to this is if your site is not accommodated in mainland China. 

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What You Need to Know: China Visa Requirements

Chinese has become home for many Western expatriates who desire work outside their home countries. The Chinese government’s visa application process has been greatly simplified in recent years, but is still rather complicated. Anyone looking to acquire a Chinese work visa should keep in mind some crucial tidbits of information that will be crucial in deciding the status of your work permit.

There are three different kinds of work visas one can apply for:

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Profit Repatriation: How to Get Your Money Out of China

As China’s economy continues to grow, it appears to foreign companies as an increasingly attractive place to do business. China is the only major economy to have grown during 2020, a year remembered by many for the coronavirus pandemic and concomitant economic recession. But as foreign businesses invest in the China, a growing number of them are also looking for the most efficient way to bring their profits back home. r repatriating funds are different for individuals and companies, regarding both the preconditions one must meet and limits on the amount transferred. Here, we will can compare the regulations for companies and people:

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Come aprire un conto bancario in Cina

Aprire un conto bancario in Cina è uno dei passi fondamentali per chi volesse iniziare la sua avventura commerciale nel gigante asiatico. Una delle caratteristiche più attraenti della Repubblica Popolare Cinese è la dimensione del mercato interno, il quale, per dimensioni, non ha nulla da invidiare a quello statunitense o europeo. Tuttavia, la conoscenza della lingua e della civiltà cinese possono non bastare, in quanto fare affari in Cina implica un’adeguata conoscenza del sistema economico e burocratico. Aprire un conto bancario in Cina è uno dei passaggi fondamentali, nei prossimi paragrafi sintetizzeremo tale processo ripercorrendo i principali punti dell’iter burocratico.

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WeChat: What is it and Why is it so Popular in China?

WeChat. It allows Chinese people to make payments, install other apps, and even write micro-blogs. Despite its popularity in the Chinese mainland, it is not often used in other countries for privacy issues. However, let’s get started with the fundamental question:

What is WeChat?

WeChat (微信) is a Chinese multi-purpose app developed by Tencent. First released in 2011, it has become the most popular app in China due to its numerous functions, despite it initially only sending instant messages. Why did WeChat grow so rapidly in popularity? The answer is simple: as an all-inclusive app which has no competition in mainland China, WeChat is the dream of every developer. WeChat’s ubiquity in Chinese society makes it a necessity for anyone even visiting for a short time, so make sure to download the app once you’re in China, otherwise you might not even be able to pay a taxi driver.

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How To Open a Bank Account in China

Planning to operate a wholly foreign-owned enterprise business in China, whether it be a small business, a global company, or even a Fortune 500 company, can be fairly effortful. It is essential to take all the precautions needed to for your business to be successfully established. Once you acquire a business license, there are more steps to be taken further, such as, opening a bank account in China, to assist your business affairs. Although this step is necessary and can sound simple, opening an account in China can be challenging, especially recently, as the regulations became more stringent.

As of April 2020, the People’s Bank of China (PBOC) have made it obligatory to follow high level of analysis during the Know Your Customer (KYC) process. Because of this, the PBOC have ordered that all banks not only to oversee business activities, including financial transactions, but also to induct a few other conditions such as investigating your other bank accounts in addition to dormant accounts, seek capital transitions, examine times of transactions as well as suspicious or abnormal activities, restrict pay outs and limit online banking transactions.

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China’s Digital Market: How it Combats the Economic Consequences of the Corona Virus

Even before the surge of Corona Virus cases and the world going into lock down, the digital market in China has been on the rise, and more dynamically than most nations around the world. Such systematic progression is rooted in the country’s core business model as well as the business environment created by China’s rapid growth. Using their business environment as an example, we can more readily anticipate business trends and opportunities that will arise in this age of digital business.

From the beginning of the outbreak to the present, China has been unknowingly prepared for the change from physical work environments to the shift into a predominantly remote working business model. The growth of technology-based companies such as Tencent, Alibaba, and Huawei, as well as the integration of apps such as WeChat and Weibo into their daily life has put the Chinese economy ahead of the curve in the shift towards a digital business framework. The convenience afforded by the systems in place allow more remote services to be provided to the everyday consumer. This addresses the issue of public quarantine that’s present in most countries in the world.

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