Foreign Direct Investment

Hong Kong and foreign companies making frequent visits to mainland China are likely to be subject to PRC enterprise income tax, while foreign investors, lenders and technology licensors will face challenges in seeking the most preferential rates of PRC withholding tax.

Wholly foreign-owned construction project service enterprises allowed.

The new Enterprise Income Tax Law will take effect on January 2008. What changes should be expected by foreign investors?

What standards of environmental protection should multinationals and their legal advisers consider, and why?

Industrial land is subject to a new set of regulations in terms of granting procedures, granting prices, urban land use tax and requirements governing the conditions of using industrial land.

Foreign banks are encouraged to set up banks with legal personality.

SAFE sets forth procedures concerning foreign exchange matters in the restructuring of foreign-invested banks.

Anti-monopoly filings required before conducting mergers or acquisitions.

Foreign-invested commercial enterprises prohibited from engaging in tobacco retail and wholesale businesses.