Business guide (China)

Contents
Snapshot 1
Basic facts 1
Political environment 1
Foreign trade & investment 1
Business & financing 1
Labour environment 1
Taxation 2
1.0 The Investment Climate 3
1.1 General 3
1.2 Political background 3
1.3 Economic structure 4
1.4 Currency 5
1.5 Attitude towards foreign investment 5
1.6 Banking and financing 14
1.7 Foreign trade 16
2.0 Labour relations and work force 17
2.1 General 17
2.2 Employee benefits 19
2.3 Termination of employment 23
2.4 Rules for foreign nationals 24
3.0 Business Regulations 25
3.1 Registration and licensing 25
3.2 Price controls 27
3.3 Monopolies and restraint of trade 28
3.4 Intellectual property 29
3.5 Mergers and acquisitions 38
China ii
Country Business Guide June 2003 © Deloitte Touche Tohmatsu, written in co-operation with the Economist Intelligence Unit
4.0 Foreign Investment 40
4.1 Foreign investment incentives 40
4.1 Restrictions on foreign investment 42
4.3 Exchange controls 46
4.4 Imports and exports 50
5.0 Choice of Business Entity 51
5.1 Principal forms of doing business 51
5.2 Branches 59
5.3 Setting up a company 60
6.0 Corporate Taxation 63
6.1 Current taxation 63
6.2 Capital gains taxation 65
6.3 Profit repatriation 66
6.4 Shareholder financing 66
6.5 Depreciation 67
6.6 Loss relief 67
6.7 Consolidation 67
6.8 Reorganisations/Mergers & acquisitions 67
6.9 Foreign-earned income 68
6.10 Transfer pricing 70
6.11 Other taxes 71
6.12 Tax compliance and administration 72
7.0 Deloitte & Touche Offices In… 73
7.1 China

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