Chinese Work VISA Holders MUST Buy Social Insurance in China From October 2011

From 15 October 2011, all foreigners who are holding work visa in PR China MUST buy social insurance in mainland China, except the ones whose age is over 60years old. It becomes a mandatory rule in the whole China. The government data shows that there are about 700,000 work visa holders, which 230,000 of them are living in Shenzhen.
The Company and the Employee will have to increase their budget RMB2, 100/month more than before totally. For International School and all the big multinational companies, it will become a big shock. China only signs Bilateral Agreement with German and South Korea until today, which means only the aliens from these two countries who has already bought social insurance in their own country can avoid the dilemma of buying double social insurance.
We must say that the promulgation of the Measures is lack of consideration.  Below please find the whole Measures.

Anything goes wrong, anything at all...

images.jpgA 1971 John Wayne movie, Big Jake, has in my opinion, one of the greatest movie lines of all times -- "Now you understand.  Anything goes wrong, anything at all...your fault, my fault, nobody's don't matter...I'm gonna blow your head off.  It's a simple as that."

And while I understand the context of the statement and the sentiment behind it, I am not sure that kind of approch is going to get anyone very far today. And that makes the thoughts raised in my mind worth a scribble or two here

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.
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



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


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.

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