China: opening up on foreign trade, taxation and advertising

In China on January 1, 2005, new regulations and laws came into force regarding foreign trade, taxation and advertising; another step toward compliance with international standards as agreed by the Beijing government when China entered the World Trade Organization (WTO).

Seven of these laws and regulations abolish certain restrictions on the importation of cars and on the participation of foreign companies in gas sales, auctions and the insurance sector.

On the foreign trade front, a government decree on imports and exports will bring China into line with WTO standards for the definition of the origin of goods by country or region. Anticipated by foreign operators, this measure aims at putting a stop to the counterfeiting of certificates of origin on exported goods, widely used to circumvent quotas and taxes, especially in the 'critical' information technology and clothing sectors.

A new regulation also enforces limits on operators in the advertising sector and on the content of advertisements.

Also from January 1 and based on a Central Bank regulation, the maximum amount of currency that can be taken out of China has increased from 6 thousand to 20 thousand yuan per person (from 723 to 2,409 dollars).

The Ministry of Trade is also preparing a new franchising regulation by which foreign companies will be accorded no less favorable treatment than Chinese companies for the creation and implementation of businesses.

(Source: Il Sole 24 Ore)