China's Peaceful Development

The People's Daily released the full text of White Paper on China's Peaceful Development a few hours ago.  It is worth a read, folks.  http://english.people.com.cn/90785/7589696.html
 
If the idea is to 'lead, follow or get out of the way' it seems China is choosing to do all three at the same time depending on what they are dealing with at any given moment.  
 
We might all do well to consider the same strategy, for there is no one right answer.  Or ever was.

Real income tax threshold hiked to CNY4,545

From 1 September 2011, the taxable amount of Personal Income Tax will become CNY4, 545 which means there will be 60M of Chinese personal tax payer need not pay for PIT from that time. 

China recently raised the personal income tax threshold from 2,000 yuan to 3,500 yuan, which reduced the population paying this tax from 84 million to 24 million. The new income tax threshold of 3,500 yuan ($541) is for a person's income after deductions have been made for social basic insurance premiums and the housing public fund.  The social basic insurance includes the basic pension insurance, basic medical insurance and unemployment insurance.
 

New Regulation about Registered Chop Specific for Fapiao in Shenzhen

On February 25, 2011, Shenzhen Local Tax Bureau released a new mandatory regulation about fapiao management. The main content of it is that all tax payer, no matter General Tax Payer or Small Tax Payer, should stamp all kinds of fapiao with “chop specific for fapiao”. This kind of chop is no necessary for small tax payer before. And the Company’s tax ID No. should be showed on the new chop specific for fapiao.
 
So, all small tax payer should go to the authorized chop making shop to make another additional new chop and register it in Public Security Bureau. The new regulation was affective from March 1, 2011.
 
This is another disgusting rule which increases enterprise’s cost after the Impact Printer rule’s release at the end of last year. It is so different from all the other countries in the world. The importance of CHOP becomes bigger and bigger inside China, while online system and signature identification system outside China works very well. It seems the development direction in this area is going backwards.
 

Intellectual Property Protection in China

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We recognize that foreign enterprises doing business here in Mainland China often have intellectual property protection and trademark enforcement issues.  However, there is a safe way to do business here – by recognizing that the Chinese legal system operates differently from any other developed economy.

Sending plans and designs to China: Yes, you can you protect them

designs.jpgClearly, if you make your living on your intellectual property as embedded in your plans, designs and specialized tooling and you do business internationally, you should be filing all your trademarks and patents in all jurisdictions where you make/sell products.   

But, this post looks to a more basic set of concerns on how to ensure that your long term ownership in plans, designs, molds and tools is also protected and under contract here in Mainland China.  For many companies pay their IP counsel lots of money, but forget the basics when it comes to where their molds/ tools are -- and who owns them.

Historically, a Chinese company would agree to make a run of, say, two million widgets, to your plans and designs, and no special contracts would be made out on who would be paying for all molds and tooling.  In many cases a contract would say, in English, that you would own the tooling after so many millions of pieces were run on those molds/tools.  Sound familiar?

China: 'Ant Tribes' Face Eviction from Colonies

ant colony.jpgAs if it was not hard enough to get ahead in the world as a young and inexperienced college graduate in modern China, the Ant Tribes of China are now faced with new government regulations to evict them from their 'colonies' too.

Already modest one or two bedroom apartments that have been partitioned into a series of 25-35 cubic foot 'capsule apartments' are a common first residence for many new urban immigrations all over China and are known as colonies. 

If you are a Chinese university graduate born in the 1980's, working an unstable job that pays less than RMB 2,000 per month, living in a shared RMB 350 apartment and spending over two hours a day travelling to and from work, then you are officially an "ant."  Welcome to the ant tribe.

Chinese Registration of Copyright Pledges

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The Measures for the Registration of Copyright Pledge (hereinafter the “Measures”) were promulgated by the State Copyright Bureau and will be implemented as of January 1st, 2011. The Measures for the Registration of Copyright Pledge Contracts promulgated by the State Copyright Bureau in 1996 were abolished at the same time. This is another amendment to the pledge of intellectual property rights since the promulgation of the Measures for the Registration of Patent Right Pledge in October 2010.

According to the relevant statistics, altogether 934 copyright pledges have been registered at the State Copyright Protection Center, from 2000 to August 2010, among which 747 are for copyrights of computer software and the remaining 187 are for the copyrights of general works.

Doing business in Shenzhen is getting easier By: Jane Lai

 
 

FOREIGN investors are now allowed to acquire full ownership of Shenzhen companies owned by Chinese, while Chinese are allowed to set up a high-tech enterprise with foreign individuals or corporations, according to policies released by the city market supervision administration yesterday.
 
    To respond to the municipal government’s call to accelerate economic upgrading, the administration had formulated 28 policies to make it easier for entrepreneurs to do business in Shenzhen.
 
    One of the highlights of the policies was to encourage the optimization of foreign investment structures and boost the development of Sino-foreign joint ventures.
 

China: That which does not kill us makes us stronger...

That which does not kill us makes us stronger.  Well, I'm not sure if being here long enough to be opening year ten has made us any stronger, but it certainly not killed us yet.
Now, I have often been quoted as saying to clients, keep your arms and hands inside of the moving vehicle at all times because living and working here is often a bit like a roller coaster.   But there has been nothing like a near death experience.  Except for that whole pesky situation where we were deported for a week.   The upside there was a family vacation in Hong Kong, so, no harm no foul.
And on the up side, we have been able to see the WTO come into being here, followed by each sequential ramp up on the ten year commitments China gave as a developing economy. Manned space flight, the Olympics, the World's Fair, the Asian Games.  Umm.  I guess they got over that 3rd world country label.  Developing economy, my ass.

Austerity VS My Father is Li Gang

The 2010 most popular network glossary in USA is AUSTERITY and “My father is Li Gang” in China Mainland.  We can tell USA has not break away from the shadow of economic crisis until 2010 and China’s severest problem is anti-corruption from these two popular word and phrase. The USA’s excessive waste is worldwide well-known. Li Gang is a local governor whose son killed a college student in college campus when driving a luxury racing car to pick up his girl friend.  Li Gang’s son roared to the school guard to let everybody know his father is who and tried to escape the spot.
 
The top CTR blog about USA in China is that the teacher in USA Kindergarten made a list to the parents to show what kind of Christmas gift she wants to receive, which can show the life of USA people is really in a hard situation.
 

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