Is your business considering doing business with China? Step one—you must be aware that many foreign companies will choose either a Representative Office (RO) or a Wholly Foreign Owned Enterprise (WFOE) to do business in China. If you’re seriously considering how to setup operations in China, take a look at the following top 2011 China …
WFOE and RO Basics – Step one in Setting up a Company in China Read More »
Recently a Bloomberg article entitled “China Causing ‘Growing Frustrations’ With Curbs on Businesses, Locke Says” spliced Locke commentary gathered at an American Chamber of Commerce hosted event. Locke was quoted as saying “There is a gap between the goals China identified in its five-year plan and the steps it is taking to achieve them.” The …
U.S. Ambassador to China Gary Locke Asks China for Market Access and Financing Options Read More »
The Interim Rules on the Assessment of the Impact of Concentrations on Competition of China has been taken effect on 5 Sep 2011. The rules provide the first guidance from the Ministry of Commerce (“MOFCOM”). The Rules details the five AML factors and the Assessment Rules make clear that MOFCOM will analyze a transaction for …
Interim Rules on the Assessment of the Impact of Concentrations on Competition of China Read More »
On 1 Sep 2011, the new version of Individual Income Tax Law of the People’s Republic of China (2011 Revision) became into effect and the taxable income is calculated monthly by subtracting a standard monthly deduction from income. The new income tax rules increase the standard monthly deduction from RMB2,000 to RMB3,500. In an attempt …
Individual Income Tax Law of the People’s Republic of China (New Version) Read More »
Two regulations have been introduced for asset management service for clients of fund management companies: Trial Measures for Fund Management Companies’ Asset Management Services for Designated Clients and Guidelines on the Content and Format of Asset Management Contracts of Fund Management Companies for Single Clients (revised in 2011). Qualification requirements for fund management companies applying …
Chinese regulations regarding to Asset management service Read More »
China Administrative Measures for Material Asset Reorganization of Listed Companies (the “Measures”) has been amended by China Securities Regulatory Commission (CSRC). Any reorganization subject asset in the context of back-door listing should meet, among other things, particular financial standards and existence term requirement and it also require that any company intended for back-door listing should …
In China, the franchise specific legislation regulates the franchise disclosure and franchise registration. The Chinese Ministry of Commerce (“MOFCOM”) has amended the provisions related to disclosure and registration. The most important changes has listed as follows: On registration, regarding to “2+1” rule, a number of improvements has been introduced. The most important improvement is the …
The new PRC Social Insurance Law, came into effect on 1 July 2011, indicates that foreigner working in China are able to participate in the Chinese social security system. A foreigner who has the work permit for foreigners, a foreign expert certificate, a foreign journalist card or a permanent residence permit for foreigners must participate …
The social insurance of expatriates working in China Read More »
Q: When is the due date of conducting public consultation on the new amendments to the PRC Criminal Procedure Law? A: The public consultation on the new amendments to the PRC Criminal Procedure Law lasts until 30 September 2011. Q: What is the suggestion of amendment of Article 73? A: Residential surveillance should be carried …
FAQs on the Amendments to the PRC Criminal Procedure Law Read More »
Source from ChinaLawBlog Print Comments (21) Share Link In the last three years, I estimate that about 25% of the China employee wage/labor disputes on which my firm has worked have involved foreign (i.e., non-Chinese) employees. I think there are two reasons for this. One, companies do not bother calling us if the dispute involves a Chinese employee being paid $12,000 a year. In those cases, they typically just settle the case themselves as quickly and as cheaply as possible. Their foreign employees always make way more than that. The second reason is more important. Far too many companies are under the mistaken impression that China’s labor laws do not apply to foreign workers when they most certainly do. China’s labor contract law applies to all of your China-based employees, foreign or not. China’s labor contract law even applies to those foreign employees who have a contract with you saying United States or some other country’s laws apply. To put it another way, all employment law is local. So what this means is that in many ways you are at greater risk from your non-Chinese employees than from your Chinese employees because foreign employees still generally make considerably more than Chinese employees. The congruity between foreign and Chinese employees recently got even closer with China’s very recent (July 1) enactment of its new Social Insurance Law, which law applies equally to Chinese and foreign employees. The new social insurance system will cover the following: Pension insurance Unemployment insurance Work-related injury insurance; and Maternity insurance. Local governments (provinces and cities) determine the contribution rates for employers and employees. We generally tell our clients to expect to have to pay about 40% of an employee’s wages in social insurance. The new law lessens the employer’s burden for covering work-related injury costs. The new law also includes penalties against employers that fail to make sufficient or timely insurance contributions. This penalty is set at .05% a day on the outstanding contribution. If the employer fails to pay the penalty, additional fines can be imposed by the local administrative department. If things get really bad, the local social insurance administrative department has the right to collect outstanding amounts directly from the employer’s bank account. The law also requires that each employer register with the local insurance administrative department within 30 days of incorporation and register any employee within 30 days of employment. Were you aware that your foreign employees in China are now covered by social insurance? What have you done to comply with this new law? How has/will this new law impact your bottom line?
