Foreign Direct Investment

China once welcomed foreign exchange inflows; now, hot money is threatening its developing economy. To control the flow of trade funds, the regulator has set requirements for compliance with rules on advance payments and deferred receipt of payments. The new rules could lead to tax losses and fines for exporters. By David Wang, Chris Yang and Chris Chen, Broad & Bright Shanghai Office.

Hubert TseYuan Tai PRC [email protected] recent months, global equity markets have been hitting new lows. However, according to the China…

A new Circular makes it easier for foreign investors to get approval for the conversion of their unlisted shares into B-shares. This may finally render non-listed foreign-investment shares in these issuers obsolete. By Heiner Braun and Miles Ma, Freshfields Bruckhaus Deringer, Shanghai.

A sweeping VAT reform takes place in China on January 1 2009. It will benefit many domestic companies but could block the cash-flow of some foreign invested enterprises, removing advantages enjoyed under the old tax regime. By Joanna Law.

Conversion of unlisted foreign investment shares into tradable B-shares streamlined.

Opinion issued to clarify under which circumstances an FIE is required to pay a place use fee.

The Opinion specifies that if a foreign-invested enterprise obtained the leasehold through grant, it is not required to pay place use fees as it has already paid a land grant fee.

Vsevolod Markov and Nataliya Shapovalova McGuire [email protected], [email protected] Kazakhstan, all taxes and main fees and…

Approval procedures for commercial FIEs streamlined.