Category: Policy & Regulations

Navigating the Aftermath of the Jiangsu Chemical Plant Explosion, Four Months on

A March 2019 explosion at a chemical plant in China’s Jiangsu province has refocused public attention on environmental issues across the country. The latest in a series of incidents, the blast is now forcing China to carry out a difficult...

/ July 16, 2019

Open Government Developments in China: Implications for US Businesses

The People’s Republic of China continues to modernize the Chinese regulatory state through its open government project, even as the Chinese Communist Party (CCP) asserts comprehensive leadership and tightens political and social controls under General Secretary Xi Jinping.

/ July 1, 2019

The New Rules of Tax Residency: A Potential Trap for Foreigners?

US and other foreign businesses now face higher income taxes in mainland China following new rules issued in March by China’s tax administration. The new law and implementing rules impose tax filing obligations on the worldwide income of foreigners (which...

/ May 15, 2019

Will China Fold on Structural Issues? An Algorithm says not any Time Soon.

Want to predict China’s policy changes? A new machine learning algorithm, called the Policy Change Index (PCI) for China, looks at the state-run paper People's Daily and is a leading indicator of China’s policy shifts from 1951 to the most...

Ghosts of Fukushima: The Evolution and Future of China’s Nuclear Power

The Fukushima Daiichi accident shaped not only Japanese but also Chinese public opinion, and dramatically altered Beijing’s plans for the expansion of its own nuclear energy program. Seven years later, however, China may be returning to ambitious plans for its...

/ October 23, 2018

Why Businesses Should Pay Attention to China’s Government Inspections

By Alexander Chipman Koty On July 6, China announced a campaign to inspect local governments and departments, signaling the central government’s resolve to implement core policies. The announcement, detailed in the State Council’s Circular about the Launch of Inspection Program for Departments and...

/ July 26, 2018

Fact Sheet: Communist Party Groups in Foreign Companies in China

The Chinese government is pushing foreign companies to include party organizations among their employees. Where do these companies stand if they don't want to acquiesce to their demands?

/ May 31, 2018

China Eases Foreign Investment Restrictions in Free Trade Zones

China has relaxed restrictions on foreign investment in the country’s 11 free trade zones (FTZs), per a decision released by the State Council, China’s cabinet, on January 9.

/ February 14, 2018

Withholding Tax Deferral for Foreign Investment in China

On December 21, 2017, authorities clarified the criteria for withholding tax (WHT) deferral treatment on dividends for foreign investment in encouraged sectors in China. The Notice Regarding the Provisional Deferral Treatment for Withholding Tax on Distributed Profits used for Direct...

Is China Really Opening Its Doors to Foreign Investment?

On January 17, 2017, the State Council issued a circular on a new foreign direct investment policy to open up China’s economic system. At first glance, it would appear that this policy is a reaction to the slowdown in China’s...

/ November 8, 2017