Retail Trade and Distribution

Advertising expenditures of cosmetic, pharmaceutical and beverage enterprises may be deducted against 30% of their sales revenues.

Set of tax policies issued to encourage private investment in various sectors.

Safe no longer requires settlement of foreign exchange received from exports.

VAT reform extended to eight more provinces and cities.

Hong Kong and Macao investors allowed to engage in wholly-owned retail grain business in Guangdong.

“Ke jixu goumai” (“The deal is on”) is the phrase that spurs Chinese consumers to use online group buying websites. The SAIC is taking action to regulate this rapidly expanding market that has led to fraud, fake products and price hikes

The revised Measures require a franchisor to disclose the actual investment amounts of its franchisees. Confidentiality requirements of franchisees are also elaborated.

MOFCOM's latest bid to strengthen commercial franchising will protect trade secrets and increase fines for providing false information during promotional activities. The Measures represent China's commitment to regulating this large, but young market

As franchising increases in China, the Ministry of Commerce has released new measures for greater disclosures, including more information when signing agreements.