Category: China Updates

What’s New? Starting from 6 June 2022, foreign nationals coming to China for work and dependent family members are not required to apply for the PU Letter. Accordingly, Chinese embassies in several countries have updated their visa application policies. Affected Individuals In particular, the following categories of foreign travelers no longer need to obtain a PU letter as part of their visa application materials: Foreign nationals who have obtained a Notification Letter of Foreigner’s Work Permit. Foreign nationals who hold

According to the new regulation recently promulgated by the State Administration for Market Regulation, a real-name authentication is imposed on those individuals who are in the following (but not limited to) positions in the process of establishment, change, filing, or deregistration of an enterprise: Legal Representative; Person in-charge; Individual shareholder; Director; Supervisor; Senior management personnel (including but not limited to General Manager, and Finance Person-In-Charge); Contact officer with the registration authority; Receiver for service of legal documents of foreign investors;

Administrative Regulation of the People’s Republic of China on the Registration of Market Entities  On 1 March 2022, China enacted the new Administrative Regulation of the People’s Republic of China on the Registration of Market Entities, which is the first unified administrative regulation to regulate all types of market entities in terms of registration and filing matters, registration procedures, and norms, application materials and documents, etc.  Market entities refer to all natural persons, legal persons, and unincorporated organizations that engage in

Administrative Measures for Client Due Diligence and Preservation of Clients’ Identity Information and Transaction Records by Financial Institutions The “Administrative Measures for Client Due Diligence and Preservation of Clients’ Identity Information and Transaction Records by Financial Institutions” will enter into force on 1 March 2022. Here’s how it will affect the individuals engaging in funds transactions in China: From 1 March 2022 onwards, individuals with cash deposits and withdrawals exceeding RMB 50,000 need to register the source or purpose of

Draft Measures for the Security Assessment of Outbound Data On 29 October 2021, the Cyberspace Administration of China released the Measures for the Security Assessment of Outbound Data for public consultation. These measures aim at regulating the outbound transmission of data in accordance with the Cybersecurity Law, the Data Security Law, the Personal Information Protection Law, and other laws and regulations. The measures provide a standardized framework for data processors when they provide overseas with important data collected and generated

China to Impose Higher Fines to Business Operating in Mainland without a Local Legal Entity from 1 March 2022 Any company running a business in Mainland China which needs to hire staff must establish a legal entity. Violators will be subject to higher fines, which will go from RMB 10,000 to RMB 100,00 from 1 March 2022 onwards. Foreign companies that employ individuals or independent contractors to explore the China market will be targeted as well. Even though the authorities might

Greater Bay Area launches Wealth Management Connect On 10 September 2021, the People’s Bank of China, the Hong Kong Monetary Authority (HKMA), and the Monetary Authority of Macao announced the implementation details of the Wealth Management Connect scheme that links Guangdong, Hong Kong, and Macau. Under the scheme, there are an aggregate quota of RMB150 billion in each direction and an individual investor quota of RMB1 million, which enables the residents of Greater Bay Area Mainland cities to invest in

The FDI increases in China, despite tensions worldwide The global pandemic, the financial crisis, and the trade tensions have not stopped China from becoming a leader in attracting foreign investment again. Some of the existing foreign investments in the market are currently struggling. Meanwhile, others and expanding, and thousands of new ones are being established, reaching a new all-time high again. Many of these are non-financial investments and reinvested profits of existing ones. Regarding foreign trade, the half-year of 2021 has been the best performance in history, thanks to its rapid recovery from COVID.

The world turns the compass to Asia Insights on China’s economy in the first half-year give us the result that the foreign direct investment increased by 29% year on year, with the high-tech service industry as the number one sector in terms of growth, an astonishing 43%. Regarding foreign trade, China also experienced one of the biggest rises in history due to the world’s global demand for Chinese products, by 27%. On the digital side, cross-border e-commerce also experienced a