CHINA BUSINESS EBOOK.pdf

CHINA INTERCONTINENTAL PRESS

BUSINESSChinaCompiled by Ma Ke, Li Jun, etc.

Translated by Song Peiming and Zhu Youruo

CIP

/.

2004. 1

ISBN 7-5085-0413-5

I. ... . ... ... ... . -

-- . F72

CIP2004000064

www.photocome.com

31

100088

(010)82008396 82008228

www.cicc.org.cn

2004111

188.00

City Time Differences

BeijingE 8 Time Zone

New York-13

Brasilia-11

London-8

Berlin-7

Paris-7

Cairo-6

Moscow-5

Singapore0

Seoul+1

Tokyo+1

Sidney+2

Location of China in the World

Antarctica

Europe

Asia

Africa

North America

South AmericaOceania

North America

Beijing

The Pacic Ocean

The Indian Ocean

The Arctic

The Atlantic Ocean

The

Atla

ntic

Oce

an

Foreword 8

Business Background 12

Geography 12

Population 17

Politics 20

Society 29

Finance 42

Communications 50

Telecom 55

Energy 58

Industries and Markets 62

Economy in General 62

Industrial Policies 65

Agriculture and Farm Produce Market 71

Industry and The Market For Industrial Products 77

Service Sector and Policy For Its Development 117

Market for Consumer Goods 138

List of Industries, Products and Technologies Currently

Encouraged by the State for Development 154

Foreign Trade 176

An overview 176

Right of Import-Export Management 180

Administration of Imported and Exported Commodities 184

Policies on Customs Duty 188

Policies on Processing Trade 189

Foreign Investment 194

Current Situation of Foreign Investment 194

Forms of Foreign Investment 196

Basic Policy on Foreign Investment 203

CONTENTS

Special Economic Zone and Development Zone .............................................................. 212

Establishment of Foreign-Invested Enterprises ................................................................ 224

Taxation Policies Governing Foreign-Invested Enterprises ............................................. 230

Land, Labor and Foreign Exchange Management ............................................................ 232

Provisions on Guiding the Orientation of Foreign Investment ........................................ 241

Catalogue for the Guidance of Foreign Investment Industries ......................................... 246

Intellectual Property Rights .............................................................................................. 272

Laws and Statutes Concerning Intellectual Property Rights ............................................. 272

Application for Trademark and Patent Rights .................................................................. 276

Commitment for the Protection of Intellectual Property Rights ........................................ 278

Around China ................................................................................................................... 284

A Survey ........................................................................................................................... 284

Urban Development .......................................................................................................... 353

The Western Development ................................................................................................ 356

Catalogue of Priority Industries for Foreign Investment in the Central-Western Region

(Amended in 2004) 2004 Revision .................................................................. 373

Commercial Activities ..................................................................................................... 386

Acquisition of Commercial Information .......................................................................... 386

Work and Life ................................................................................................................... 390

Appendix: Organs and Websites ....................................................................................... 396

Central Organs .................................................................................................................. 396

Local Information ............................................................................................................. 404

Sector Information ............................................................................................................ 410

Trade and Investment ........................................................................................................ 413

Society, Media and Tourism ............................................................................................. 423

Embassies in China ........................................................................................................... 427

Long Distance Call Area Codes of Main Cities and Regions in China ............................ 444

8A certain day in the year of 2001, the president of a foreign company paid a

visit to China intending to sell some technical know-how related to insurance to the

Chinese. However, what made him surprised was that instead of selling something to

China he bought from China a set of computer software related to insurance business

management.

If you know nothing about what is happening in China, it means you are ignorant

about it. Many foreign businessmen who have been to China say so. Then what is

really happening in China?

At least in the latest twenty years or so, China has seen the most rapid development

of economy in the world. Just take a look ahead of you, what meets your eyes is high-

rises, modern plants, a metropolis suddenly emerging on the horizon, and freeways

extending thousands of kilometers. But all this is only the front cover of the Story of

China. What attracts you most will be the overall economic transformationfrom

planned economy to market-oriented economyand the construction of an open and

democratic society ruled by laws.

Twenty years ago, almost none could forecast the China of today. In those days,

everything should be arranged by the state, from enterprise production to the peoples

life. The then China was almost short of everything except human beings and coupons

were a must to buy anything. It was also during those days, the door of China was open

to the outside world and groups of businessmen and entrepreneurs entered. The story

that follows sounds quite logical. China becomes a big nation for foreign trade and a

piece of hot land for foreign businessmens investment as well. It seems that China is

to be the manufacturing center of the world.

The fact that China uses a period of twenty years to cover a distance that takes

other countries to do so for 100 years or so is a great achievement itself. If you have not

gone through the process, what you can see is only the exciting results or disheartening

FOREWORD

9FOREWORD

The night China gained WTO membership

10

p r o b l e m s t h e

problems a developing

country is sure to

face with. The key

issue is that the time

spent for China to

solve these problems

is much shorter than

many other countries.

Some transnational

corporations say that

they have plants all

over the world but the

efciencies of the plant in China are the best.

Once China was eulogized as a country with the ground paved with gold just

like a myth but China was also suspected that its economy is going to collapse. No

matter what th