In July 2008, MOFCOM issued a circular granting provincial-level authorities more leeway in approving foreign investment real estate projects. Lawrence Guo, a partner at Broad & Bright, looks at how the delegation of power will change the playing field.
Amendments to China's Regulations for the Administration of Foreign-invested Telecommunications Enterprises came into effect in September 2008. The amendments lower capitalisation thresholds for the operation of basic services and make applications simpler. But it is not clear if the new rules will encourage more foreign investment in the telecoms sector.
China's currency has undergone fundamental changes along with the rapid economic development both domestically and in global markets. In order to adapt to today's financial and currency markets, the State Council has adopted a revision of Foreign Exchange Regulations of the People's Republic of China on August 5 2008. Foreign companies need to be familiar with the newly revised foreign exchange regulations.
China is encouraging foreign investment in the mineral resources exploration and exploitation industry. The government has placed importance on addressing the import of foreign capital and new technologies for mining.
China has further clarified tax preferences for high- and new-technology enterprises (HNTEs) in a recent Working Guideline. Applicants that can satisfy tougher and more precise qualification criteria will benefit from clear and objective evaluation procedures, but must be prepared for broad scrutiny of their tax and legal compliance. HNTE status can be lost through business changes including mergers or acquisitions.
With skyrocketing economic growth and an economy on track to be the world's largest by 2025, China is seeking overseas investment opportunities. Sharon Wong and Malcolm Brennan of Mallesons Stephen Jaques and Sandra Knowler of Lang Michener explain why much of that outbound investment is likely to be in the energy and resources sector.
China's new Company Law increased possibilities for the adoption of a “preferred stock” structure. Greg L Pickrell and Judy J Deng of Pillsbury Winthrop Shaw Pittman explore the practicality of incorporating the two-class stock structure within China's corporate law doctrines and interplay with other relevant segments of laws.