November 2020 / China

November 26 2020

Two Authorities Adjust Catalogue of Prohibited Commodities in Processing Trade

The Ministry of Commerce and the General Administration of Customs recently issued an announcement to adjust the Catalogue of Prohibited Commodities in Processing Trade, to be implemented from December 1, 2020.

According to the announcement, 199 commodity codes in the 2014 catalogue, which are consistent with China's industrial development policies, are not products with heavy pollution and high energy consumption, and involve advanced technologies, will be removed from the catalogue; some products will be prohibited by different means. Other products on the catalogue will continue to be prohibited according to the previous announcement released in 2014.

November 26 2020

Hainan Free Trade Port Releases First “Zero Tariff” Positive List

The Ministry of Finance, the General Administration of Customs and the State Taxation Administration released on November 12, 2020 the Circular about "Zero Tariff" Policies for Importing Raw Materials to Hainan Free Trade Port, to be implemented from December 1, 2020.

According to the circular, if a company has been registered and secured independent legal entity at the free trade port before the island is closed off, and it imports raw materials for production, processing or service trade purposes and will export finished products to foreign destinations, it will be exempted from import tariff, import value-added tax and consumption tax. The "zero tariff" materials will be managed through a positive list, which includes 169 items in eight tax categories in the first stage.

November 26 2020

Three Authorities Unveil Preferential VAT Policies for Insurance and Export Companies at GBA

The Ministry of Finance, the General Administration of Customs and the State Taxation Administration recently issued the Circular about Implementing Value-added Tax Policies at the Guangdong-Hong Kong-Macau Greater Bay Area.

From October 1, 2020 to December 31, 2023 insurance companies registered in Guangzhou will be exempted from value-added tax for revenues received from providing international shipping insurance to enterprises registered in Nansha free trade zone; from October 1, 2020 eligible export companies can get tax rebate for container goods shipped to foreign markets from Nansha bonded port zone and Qianhai bonded port zone.

November 26 2020

Returned Goods from Export Destinations Will Not Be Levied with Import VAT Tax and Consumption Tax

The Ministry of Finance, the General Administration of Customs and the State Taxation Administration released on November 3, 2020 the Announcement about Tax Policies for Returned Export Goods Due to the COVID-19, effective from November 2, 2020.

According to the announcement, if a company declares export between January 1, 2020 and December 31, 2021, and the exported goods are returned within one year due to the COVID-19 pandemic, the goods will not be levied with import tariff, import value-added tax or consumption tax; export tariff will be returned if the tariff has already been levied. If taxpayers have already received tax rebates for their exported goods, and the goods are later returned, they shall repay the rebated value-added tax and consumption tax according to existing tax rules.

November 26 2020

Minister Zhong Shan signed the Regional Comprehensive Economic Partnership Agreement on behalf of the Chinese government

On November 15, during the 4th Regional Comprehensive Economic Partnership (RCEP) Summit, witnessed by Premier Li Keqiang and other leaders attending the meeting, Minister of Commerce Zhong Shan signed the RCEP on behalf of the Chinese government, together with the trade ministers of 10 ASEAN countries, Japan, the ROK, Australia and New Zealand.

The RCEP consists of 20 chapters, covering comprehensive market access commitments on goods, services, investment and other areas. It is a comprehensive, modern, high-quality and mutually beneficial free trade agreement. The overall liberalization level for trade in goods exceeds 90%; the service trade commitment is significantly higher than that of the original China-ASEAN FTA; the negative list approach is applied for market access commitments on investment; the rules cover trade facilitation, intellectual property rights, e-commerce, competition policy, government procurement and other areas at a higher level. The RCEP Agreement also fully takes differences in economic scale and development level among members into consideration, and includes dedicated chapters on small and medium-sized enterprises and economic and technological cooperation to help developing members, especially the least developed ones, to fully enjoy the benefits of RCEP.

The signing of the RCEP Agreement marks the successful launch of the world's largest free trade area and is a new milestone for East Asian economic integration. The total population, economic volume and trade of the 15 existing RCEP members all account for about 30% of the global total, which means that about one third of the global economy forms an integrated market. This will strongly support the free trade and multilateral trading system, promote international cooperation against COVID-19, keep the regional industrial chain and supply chain stable, and boost regional and global economic recovery and development.

In the next step, the parties are committed to completing their domestic approval procedures so that the agreement will enter into force as early as possible.

November 26 2020

China’s FDI inflow rises for 7th month

Foreign direct investment (FDI) into the Chinese mainland, in actual use, expanded 18.3 percent year on year to 81.87 billion yuan (about 12.4 billion U.S. dollars) in October, the Ministry of Commerce (MOC) said Monday.

This marked the 7th consecutive month for the country to see positive growth in FDI. In the first ten months, FDI growth was 6.4 percent year on year, quickening from the 5.2-percent gain seen in the first three quarters, the MOC data showed.

Foreign investment in the service industry came in at 625.8 billion yuan during the January-October period, up 16.2 percent year on year, while that in the high-tech service sector increased 27.8 percent.

Building on the effective containment of the COVID-19 epidemic, China has rigorously rolled out a string of measures to stabilize foreign trade and investment.


November 26 2020

The 3rd China International Import Expo Concludes with Great Highlights

The 3rd China International Import Expo themed "New Era, Shared Future" was successfully held in accordance with the general requirements of “making continued success” despite negative impacts. Coordinated efforts have been made to deliver fruitful results while containing the coronavirus. The total area of the CIIE was nearly 360,000 square meters, about 30,000 square meters larger than that of the last one. Exhibitors from many countries and regions launched a large number of new products, new technologies and new services at the CIIE. 101 supporting activities were held. The CIIE attracted nearly 400,000 professional visitors and more than 3,000 domestic and foreign journalists, living up to the expectations of making a safe, splendid and successful expo.

First, the high-standard exhibition wins warm response at home and abroad.

Second, the high-quality exhibition sees active participation by businesses around the world.

The total number of new products, new technologies, and new services making their debut at this year's CIIE is 411. Nearly 80% of the Global Fortune 500 enterprises and industry leaders have participated in the CIIE for three years in a row. The level of exhibition setup improves with 94% of special booths. Multiple ministries have launched support measures on tax incentives, customs clearance and market access, among others, which brings real benefits for exhibitors and buyers. The six exhibition zones in the 3rd CIIE are featured in different highlights.

Third, rich agenda and fruitful results.

Despite the ravaging COVID-19, participants at the 3rd CIIE were full of enthusiasm for cooperation. The cumulative intended deal on an annual basis reached USD72.62 billion, up by 2.1%.

Fourth, thoughtful services and better experience.

The 3rd CIIE, integrating virtual and physical exhibitions, is the largest international event with the most participating countries held in China as we maintain containment routines in the meantime. It is a testament to the remarkable achievements of China in epidemic control and economic and social development. It has served as platforms for sourcing, investment promotion, cultural exchanges, and openness and cooperation. Through the spillover effect of these platforms, exhibits have made their way to the markets, while exhibitors have found investment opportunities. The CIIE has also sent messages of wider opening-up and shared markets to the world, and underpinned the strategy to expand domestic demand and build a new paradigm of domestic and international circulations.