China rolls out tax breaks for foreign investors reinvesting profits locally; China remains key private equity market but firms are starting to diversify investments; U.S. Congressional bill that targets Chinese AI tools like Deepseek has bipartisan support
Chinese manufacturers increase exports to non-U.S. markets; Revisions to the Anti-Unfair Competition Law address challenges to fair competition; China's data centers in Tibet aim to power much of China's AI
U.S. to tighten disclosure obligations of foreign listed companies, targeting China; China to allow local investors to invest more in overseas assets under QDII; and EU issues measures to restrict Chinese medical device manufacturers from accessing public procurement contracts
Chinese exporters ship goods through third countries to conceal true origin; China’s stringent cross-border data transfer rules force European pause in funding of scientific research; and Draft revisions of arbitration law aim to increase oversight and international cooperation on arbitration cases
China to block Chinese firms from investing in the U.S. amid tariff war; Shenzhen launches incentives for foreign-owned hospitals following national legislation; and U.S. companies plan continuous engagement with China
In Part I of this series, Daisy Duan, Yingjie Yang and Cuishi Li of King & Wood Mallesons introduced the implications of the amended PRC Company Law for Formal Capital Reductions. In Part II, the authors focus on the accounting and tax treatments of Substantive Capital Reductions, and analyze the tax risks of shareholders with regard to capital reductions not made at fair market value.
Nasdaq questioned the identities and backgrounds of Chinese IPO investors; China rolls out new phase of Golden Tax System; and U.S. Congress attempts to prevent Chinese companies from using de minimis loophole to avoid tariffs
The amended PRC Company Law will have many, far-reaching effects, including motivating companies to reduce their registered capital in order to optimize capital utilization. Daisy Duan, Yingjie Yang and Cuishi Li of King & Wood Mallesons introduce the motivations and tax implications associated with one possible route: formal capital reductions
