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    China Foreign Investment Legal & Tax Advice From Dezan Shira & Associates December 2007

    International language editions also available as a complimentary subscription service at www.china-brieng.comVolume VIII - Number XEnglish French German Italian Spanish Portuguese

    In This Issue:Background to the new Labor Contract Law effective January 1, 2008

    New Employers Liabilities

    New Contractual Obligations written forms, probation periods, condentiality clauses, non-competition, xed & open ended contracts, part-time employment and payment of wages

    New Severance & Termination rulesWhat Foreign Invested Enterprises need to prepare for with existing and future staff

    Plus: The Best of the China Brieng Blog our round up of all the past months need-to-know China business news

    CHINA S N EW LABOR CONTRACT LAW G ETTING INTO COMPLIANCE

    Dec

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    Welcome to this issue of China Brieng

    Chris Devonshire-EllisSenior Partner,

    International Practice, Dezan Shira & Associates;

    Publisher, China Brieng

    Alberto Vettoretti Managing Partner,

    China Practice, Dezan Shira & Associates;

    Vice-Publisher, China Brieng

    C HINA B RIEFING M AGAZINEwww.china-brieng.com

    click on "Free Subscription" and we'll send the full colormagazine in pdf format to your email address free of chargeevery month !(your details will not be revealed to any third parties)

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    * New China Brieng blog to discuss and learn about current issues as they happen

    * Complimentary Magazine subscription on the homepage

    * Access to all archives

    * Available in seven language editions

    Tis Month's Cover Art: Utopia. No. 59 by Zhu Wei Workers of the world unite! In Utopia, artist Zhu Wei captures the unionizing spirit of the new labor law. Drawing equally from the schoolof impressionism and traditional communist themes, the pieces vibrant colors and striking imagery deftly combine two very disparate art

    styles, giving the artwork energy and power. A native of Beijing, Zhu studied at the Peoples Liberation Army Academy of Art, the Beijing Film Academy, and the China Institute of Art.Zhu made his rst international appearance in 1993 and since then, has put on more than 20 individual exhibitions worldwide. Zhu devoteshimself to contemporary Chinese art themes using ink and color on paper. Image courtesy of the artist and ASpace Gallery, Beijing

    All materials and contents 2007 China Brieng Media Ltd. No reproduction, copying or translation of materials without prior permission of the publisher. Contact: [email protected]

    THE AWARD WINNINGCHINA BRIEFING DAILY BLOG

    www.china-brieng.com/blog

    China Briengs blog written exclusively by Dezan Shira & Associates brings you the latest in China business investment news as it happens,

    with additional commentary from some of Chinas best business minds.

    Our weekly Subscription service also available bringingyou the best of the blog every Thursday.

    Sabrina Zhang,Tax Partner,

    China

    W elcome to the December issue of China Brieng and a timely examination of exactly what needs to be done to prepareyour China invested business for the new labor law regulations that kick in January 1, 2008. Foreign investors must get

    themselves into compliance and be prepared so they dont inherit potentially huge increases in overheads and liabilities.

    We provide a background to the new law, in addition to the implications, and importantly, what you need to do beforehand

    to prepare for it. The subject is a huge topic that affects every business in China. If you need assistance with preparing for

    these changes then please contact the rm Dezan Shira & Associates urgently at [email protected] . For ongoing up-to-

    the-minute comment of matters affecting your China business, please also visit our award winning China Brieng blog at

    www.china-brieng.com/blog

    Meanwhile, in what has been a watershed year for many businesses in China, may

    we wish all clients of Dezan Shira & Associates and readers of China Brieng a

    Very Merry Christmas and a Happy New Year. Well see you in 2008!

    With best regards;

    Chris Devonshire-Ellis Alberto Vettoretti Sabrina Zhang

    Equity Partners, Dezan Shira & Associates, Publishers, China Brieng

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    3China Brieng | December 2007

    The Labor Contract Law of the Peoples Republic of China

    C hinas economy is booming anda more active participation in theglobal marketplace requires stricter lawsand regulations in compliance with worldstandards for working and employmentconditions. Chinas labor law of 1994

    provided a basic framework for employer and employee relationships. It was meantto be a guideline for companies in order to

    protect workers from poor treatment andhazardous working conditions.

    However, our experience has shownthat these rules are poorly enforced,

    par ticularly in rural areas. In spi te of existing labor laws, companies stillunderpay their staff, require them to work for extreme periods of time without restand ignore health and safety measures.Many cases in which we have conducteddue diligence with companies in China, wehave come across non- or under-paymentof wages or social welfare. This can beespecially dangerous when acquiringcompanies or parts of companies as onemay acquire all the liabilities as well.

    Foreign investors have to be in compliancewith all the laws and regulation of thePRC even if local Chinese companiesare not. Foreign investors are the number one target of legal and nancial controlmechanisms in China. Before the Chineseauthorities check local companies'compliance issues, they will check theforeign investor. Therefore, a foreign

    investor has to make sure they are incompliance with Chinas often changinglaws and regulations.

    If you are not sure that you are incompliance, you are well advised towork with someone who can help. Makesure that your Chinese documents are incompliance with all laws and regulations.You are in China, only the Chineseversion is the binding one.

    A new labor lawOn June 29, 2007, the Standing Committeeof the National Peoples Congress adopted

    the Labor Contract Law of the PeoplesRepublic of China, set to come into effectJanuary 1, 2008.

    The law applies to all employers withinthe People's Republic of China. In additionto commercial enterprises, it must befollowed by government agencies, publicinstitutions and social organizations. Itgoverns the establishment of employmentrelationships as well as the performanceand termination of employment contracts.The provisions prescribed by the laware meant to discourage employers fromsigning short-term labor contracts andwill have a direct impact on employmentcosts. The aim of the new law is to improvethe employment relationship, clarifyrights and obligations of employees andemployers and provide more stability andsecurity for the employees in the PRC.

    In this article we will mainly focus onthe implications for foreign investeden t e rp r i se s (FIEs ) . Th e l aw wi l lconsiderably change the requirementsfor both employer and employee andrequires many companies, both foreign

    and domestic, to review their labor contracts. The new labor law is part of the general trend to unify legislationrelating to domestic Chinese and foreigninvested enterprises, although some

    people fear that the fast, and to a highdegree compliant, implementation of thelaw by FIEs might lead to disadvantagesversus local competitors.

    Employers liabilitiesEmployers are liable for damages caused

    by invalid contracts, lack of mandatoryminimum content in labor contracts,violating laws by company rules or failure

    The Labor Contract Law of thePeoples Republic of China

    [ By Richard Hoffmann, Senior Associate, and Stefanie Knirsch, Dezan Shira & Associates Beijing Ofce ]

    T AX

    Ho u s e

    1 2 9

    3 6

    P e

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    Medical

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    4 China Brieng | December 2007

    to issue termination certicates. Penaltiescan be imposed by the authorities in caseswhere the employer keeps the employeesID card or collects security deposits fromtheir employees, and when salaries arenot paid in time or below the locallystipulated minimum levels. The same istrue of nonpayment or no additional rest

    time for overtime work and nonpaymentof severance pay after termination or expiration of labor contracts.

    Items that must be included in the labor contract

    company name, address and legalrepresentation

    employees name, address and personalID number

    term job description and location working hours, rest and leave compensation working conditions workplace safety/protection protection for job-related hazards social insurance

    Written formsMake sure that you have written contracts.A written contract must be signed by

    both part ies to establish the employmentrelationship. If the employer fails to enter into a written contract with an employeefor more than one month but less than12 months, the employer shall pay theemployee twice the salary for everymonth without a written contract.

    As stated in Article 14 of the contractlaw, if there is no written contract

    concluded for 12 months or more after commencement of work, the contract isdeemed to be open-ended. Oral contractsare only permissible for part-time labor.

    Implications for investorsWell drafted labor contracts will becomeincreasingly important. If a contract

    violates applicable laws, excludes theemployees rights or relieves the employer from his responsibilities, the labor contract

    becomes invalid. The same rule applieswhen the employer exerts deception or coercion on the employee through thecontract. Look for good advice if you arenot familiar with these issues.

    Probation periodThe parties can agree on only one

    probation period that cannot be extended.

    The law requires employers to pay their employees at least 80 percent of their contractual salaries and not less than thelocally stipulated minimum salary. Themaximum probation period is based onthe term of the contract, thus:

    no probation period applicable if the contract term is less than threemonths

    one month, if contract term is betweenthree months and less than one year

    two months, if contract term is between12 months and less than three years

    six months, if contract term is morethan three years

    Currently a lot of one-year xed-termcontracts have a probationary periodwhich amounts to three months. Thiswill not be possible under the new law.The probationary period cannot be longer than one month for a one-year xed termcontract; that is the maximum. But thesituation chances completely with one

    additional day. If the term of the xedterm contract is one year and one day

    the probationary period can than betwo months.

    In case the employer fails to complywith the statutory probation periods,compensation following the salarystandard applicable to the employee after the probation period has to be paid. Under certain conditions the employee mayterminate the employment contract withimmediate effect (e.g. if the employer failed to provide the working conditionsas stipulated in the employment contract

    or failed to pay remuneration on time andin full). The employee may also still beable to ask for severance.

    An employer is not required to give awritten notice prior to the termination of the contract during the probation period.Termination of contract is only possiblehowever, if the employee does notmeet the recruitment requirements. Theemployer will have to explain the reasonsfor dismissal to the employee. In that caseno severance pay is required.

    However, the situation is different if the employee wants to terminate thecontract during the probationary period:The employee is obliged to give a three-day prior notice to the employer, beforeterminating the contract.

    If the labor contract is project based or has a xed-term of less than three months,there can be no probation period.

    Implications for investorsEmployers have to be more careful whenhiring new staff; to even terminate anemployee during the probation periodrequires sufcient evidence. The probation

    period is not allowed to be extended, if theemployer asks an employee to performa longer probationary period, the matter can be brought to the attention of the locallabor department and rectication can beordered. Compensation payable is basedon the amount of the employees monthlysalary at the time the probation period wascompleted multiplied by the extra periodserved as probation period.

    Condentiality clausesProvisions on condentiality with regardto maintaining the condentiality of thetrade secrets of the employer and tointellectual property may be included inthe contract. If the obligations agreed inthe contract are breached and cause theemployer to suffer losses, the employeewill be liable for damages.

    Non-competitionThe employer and employee may enter into a non-competition agreement;however, such an agreement should belimited to senior management personnel,senior engineers and any other employeeshaving condentiality obligations. Thereare no restrictions regarding the scope,the geographic area and the terms.

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    5China Brieng | December 2007

    The Labor Contract Law of the Peoples Republic of China

    The maximum duration of the non-competition period is two years. Non-competition is particularly critical for FIEs, as their projects often involvesignificant know-how and technologytransfers. The non-competition obligationis tough: the employee is not allowedto work for a competing employer that

    produces the same type of products or isengaged in the same type of business. Anemployee is restricted from establishingtheir own business in order to producethe same type of products or engage inthe same type of business. The employeeis liable to pay penalties as agreed andfor damages caused.

    An employer has to pay for a non-competition agreement: the law requirescompensation on a monthly basisfor the employee during the term of the competition restriction after thetermination or end of the employmentcontract.

    Implications for investorsConsider the use of non-competitionclauses carefully it could be an expensive

    but necessary burden. If an employer doesnot pay compensation, the employee will

    be released from any non-competit ionobligation.

    Fixed and open-ended contractsDifferen t f rom ear l ie r d raf t s , thetermination rights between the xed andopen-ended contracts are the same.

    Open-ended contracts are concluded if: the employer and employee havemutually agreed to do so

    the employee has been working for the same employer for ten consecutiveyears

    the second xed-term contract expiresand the employee requests or agreesto renew the contract (please note thatthis only applies to xed-term contractsentered into on or after January 1,2008)

    the labor contract has not been signedfor one year or more

    Part-time employmentPart-time employees should work nomore than four hours per day and no morethan 24 hours per week for an employer.The maximum payment schedule is 15

    days. No written contract is necessary anda part-time employment can be terminatedat any time monetary compensation isnot payable.

    Payment of wagesAn employer is obliged to pay thesalary, in accordance with the nationalregulations and the provisions of theemployment contract, on time and in full.Under the current law, employees musthand in their complaints against unpaidwages at a labor arbitration tribunal; from2008 onwards, they will be able to ask thecourt directly for an order to pay.

    Expiration andtermination of labor contracts

    By employeeAs stated earlier, the employee mayterminate the labor contract during the

    probation period by giving three days prior notice. After the probation periodthe employee may terminate withoutnotice, if the employer uses violence,threats and other illegal means to forceemployees to work, or gives ordersviolating applicable rules and thereby putstheir safety at risk. If workplace safety or condition is not provided, compensationor social insurance is not paid in full,the company rules violate laws or thecontract becomes void, the employee may

    terminate the labor contract at any timeupon serving notice. The employee mayalso terminate the labor contract uponserving 30 day notice in writing.

    By employer Coming into immediate effect, thelabor contract may be terminated if:the employee is found not capable of

    performing during the probation period;violates rules in a significant way;commits serious dereliction of dutyor practices graft; becomes criminallyconvicted; establishes employmentwith another company which materially

    affects the completion of tasks with theemployer, or when asked, refuses torectify the matter.

    The employer may also terminate acontract by giving the employee a 30-day written prior written notice; or onemonths in lieu of notice if:

    after the set period of medical carefor an illness or work-related injury,the employee can engage neither inhis original work nor in other work arranged for him by his employer

    the employee is incompetent andremains incompetent after training or adjustment of position

    a major change in the object ivecircumstances relied upon at the timethe contract was written renders itunfeasible and, after consultation, the

    employer and employee are unable toreach agreement on amending the labor contract

    Termination prohibited If an employee suffers from work-relatedinjuries and is under medical observation,or it can be proven that the employee haslost ability to work due to occupationalhazards or diseases, termination is

    prohibi ted. To ensure the diagnosis of such injuries, an exit health check-up for

    those exposed to occupational hazardsis mandatory. Employers should notterminate contracts during medicaltreatment periods, pregnancy, connementor nursing periods. A special non-termination rule applies for employeesthat have worked for over 15 consecutiveyears for one employer and are less thanve years away from retirement.

    Severance andcompensation aftertermination by xed-term contractsSeverance is payable if a fixed termcontract expires and is not renewed. Thecompensation amount is dependent fromthe length of employment and the averagesalary for the twelve months prior to thetermination or expiry of the contract.For every full year of employment withthe employer, one month salary has to be

    paid. For a period of more than six monthsto one year, compensation is one monthsalary. For an employment period of lessthan six months, only half a monthly

    NEW LABOR LAW

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    6 China Brieng | December 2007

    salary is required as compensation. Thecompensation may not exceed one yearssalary and the average monthly salary iscapped to three times the average salaryof the employers location as ofcially

    published. The new law explicitly allows payment in l ieu of notice. If the salary isthree times more than the local average

    monthly salary, the compensation shall be calculated according to three times thelocal average monthly salary.

    Implications for investorsMany FIEs use fixed term contracts.They should check in time whether their

    budgeting has to take the payment of severances into account and to whatextent. As termination against the lawtriggers a right of the employee to be re-employed, or additionally compensation

    obligations of the employer, namely payment of twice the stipulated severanceamount, the employer has to be very careful.

    No severance pay is app licable if theemployee:

    proposes the termination violates company rules in a materialmatter is derelict in duty or is terminatedwithin the probation period due toincompetence

    is employed by another company whichmaterially effects the completion of tasks, or the employee refuses to rectifythe matter after it is brought to theattention of the employer

    the contract is invalid due to speciccircumstances mentioned in Article 26has criminal liability in accordancewith the law

    dies refuses to renew when offered a contractwith similar or better terms

    Important note: The employer is onlyallowed to terminate the contract basedon the reasons mentioned in the newlabor law (listing is exhaustive). In order to create more flexibility we stronglyrecommend draf t ing an employeehandbook which could create additionalreasons to terminate employment andattach it to the appendix of the labor contract.

    The employment handbook must: stipulate certain behavior as a breach stipulate the consequences (e.g. rsttime: verbal warning; second time:

    written warning; third time: contracttermination)

    Unions and employeerepresentativesUnions and employee representatives

    protect the interests of workers. They mayorganize collective bargaining and have to

    be consulted on many instances, eventhough their agreement is not mandatory.They must be involved in mass lay-off and company policy making. Unionshave to be informed if the employer unilaterally terminates labor contracts or establishes changes in regulations and

    policies concerning immediate interest of the workers, such as labor compensation,work hours, rest, work safety, insurance,and training. The trade union may render support and assistance for employeesthat apply for labor arbitration or le for litigation. Unions will enter into collectivecontracts. Industry-wide or regionalcollective bargaining is encouraged bythe new law. A collective contract is

    binding on all companies or employeesin the industry and/or region concerned.The stipulated terms must be aboveminimum standards specied by localregulations. Employees hired throughstaffing agencies are also entitled to

    participate in or organize trade unions.

    Collective dismissalsMass layoffs (20 or more employees or 10

    percent of the total workforce) are only permitted if the employer has consultedthe union or employee representatives,and proposed the action to the labor departments in accordance with the law.Collective dismissals are only allowed if one of the following reasons applies:

    the company is undergoing restructuringaccording to the Enterprise BankruptcyLaw

    the manufacturing or operating capacityof the enterprise is severely limited

    the enterprise switches its mode of pr od uc ti on , in trod uces ma jo r ne wtechnology or adjusting its operationsan d , fo l l o wi n g mo d i f i ca t i o n o f employment contracts, still needs toretrench employees

    major changes have occurred in theobjective circumstances under whichthe labor contracts were concluded,such that the contracts could no longer

    be performed

    Priority must be given to employees whohave a long xed-term contract, open-term contract, or are the sole breadwinner in the family. If the employer decidesto recruit within six months of a masslayoff, the dismissed employees should

    be notied, and if they accept the sameconditions as new applicants, must be

    given the position.

    Company rules

    A specic procedure must be followedin order to validly adopt company

    rules. The terms and conditions must bediscussed by the employee representativecongress (ERC) or employees at large.The ERC/employees at large will putforward proposals or comments. Themanagement then negotiates with theERC/union and publicly communicatesthe new regulations and policies to theemployees. Any charges or revisions tothe company rules must follow the same

    procedure.

    Stafng agenciesThe new law affects representative ofceswhich use the service of FESCO or other stafng agencies. The requirements for the agent are the following: RMB500,000minimum registered capital, two year contract with employee with monthly pay,even without actual employment.

    A company using staffing agenciesservices will have to pay overtime and

    performance based bonus and benets,and apply the same pay standard and payincrease mechanism for all employees.The company may not send the employee

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    7China Brieng | December 2007

    The Labor Contract Law of the Peoples Republic of China

    to another entity than agreed in thecontract. Please note that the agent and thecompany are both jointly and severallyliable for a breach of contract.

    Unresolved issuesOne of the main problems with labor lawsin China is their enforcement. The central

    government drafts, passes, executes andenforces the law there is no divisionof power on the mainland. That means asystem of checks and balances found inmost developed countries does not existin China. Many companies from Europeand the U.S. complain that labor lawsin China are weakly enforced againstChinese entities, which frequently evadeor ignore the law, whereas U.S. andEuropean companies are monitored veryclosely. This is not only a burden, but

    also a chance to create a fair and humaneworking environment for millions of workers employed directly by FIEs, or as part of the supply chain the companyoverlooks. It remains questionable howlocal companies will respond and how

    provincial jurisdict ions will interpret thelaw. Like any new law in China, there is

    plenty of room for broad interpretationsand the main problem with this remainsthe inherent vagueness and lack of clarityand consistency within them.

    Implications of theLabor Contract Law forforeign invested entitiesThe ultimate consequence of the newlabor law will be the effective abolitionof fixed-term contracts. Every fixed-term contract that expires creates aseverance obligation. Without payingcompensation, a problem employee

    cannot be dismissed. Business costswill rise due to the higher expenses for hiring and terminating staff. Increasingobligations and legal requirements leadto declining employment exibility andrising employment risk. However, thosewho have intently followed the previousdrafts will notice that the cost increases

    could have been even higher. Companieswill need to reassess their China HR capability and decide if someone should bedesignated to handle labor issues, if theydo not have an established department.Possible solutions could be outsourcingor part-time employment. In all casesyou should act with caution, especiallywhen drafting contracts and company

    policies. Consider hiring a professionaladvisor to make sure contracts are incompliance with the new law and to

    avoid unnecessary administration andlegal costs due to incomplete or worse,invalid contracts.

    Besides drafting the contracts and revisingthe pay structures, companies can also be

    proactively involved in the process of establishing an employee representationcommittee (ERC) or unions in order to

    build a strong and trusting communication basis. As collective bargaining will bereinforced, a good relationship with theERC/union advances cooperation andmay help influencing their decisions.The Labor Contract Law improves the

    power of unions and serves to informemployees better of their rights, whichmight encourage workers to do more toenforce better working conditions. Thelaw is aimed at changing unfair labor

    practices that are not employed by mostforeign companies (e.g. confiscatingemployee ID cards or collecting a security

    pa ym en t to de ta in th em is co mmon practice in Chinese entities).

    Employers should...

    make themselves familiar with thenew Labor Contract Law

    prepare basic contracts fo r newemployees that meet the new legalrequirements (in Chinese)

    p r ep a r e o r r e v i s e e mp l o y eehandbooks

    review existing contracts and paystructures (open or xed-tem, non-compete/confidentiality clauses,

    probation period arrangements)

    update or draft company rules

    establish an employee register anddraft a termination certicate

    review cost impact and createannual provisions (severance,compensation)

    have HR connect with the union/worker representat ion (expectcollective bargaining, involvementin policy decisions)

    plan for increased labor costs in thenear future

    extend existing contracts

    communicate and sign new contractswill all employee before 2008

    review stafng agency arrangements(check for outsourcing options)

    Seek professional advise from Dezan Shira& Associates if you need assistance withthe new labor law compliance. Contact:

    [email protected]

    W AS T HIS I SSUE U SEFUL?China Brieng subscribers can access our archives, free of charge. If you foundthis issue of use to your business then we also recommend the March 2005 issueChina Human Resources which details aspects concerning inheriting staff via JVs, common fraudulent employment scams, and other HR due diligencematters.

    www.china-brieng.com/en/archiveChinese direct investment legal & tax expertise directly from Dezan Shira & Associates

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    8 China Brieng | December 2007

    Best of the China Brieng BlogChina Brieng s award winning daily

    blog is an immensely useful resource , bringing you comments and updates onmatters of China business as they occur.

    Fed by Dezan Shira & Associates regionalofce staff, the blog provides the onlytruly national China snapshot of what isgoing on and where as it happens withadditional commentary from businessleaders across the country. This sectionhighlights some of the best articles fromthe China Brieng blog this past month.If its worth commenting on, the China

    Brieng blog covers it.

    Dezan Shira &Associates celebrates15 years in China

    In late November, 1992, Dezan Shira & Associates began life as a Hong Konglimited liability company and openedits doors in Hong Kong and Shenzhento begin providing consulting servicesto foreign investors wanting to get intoChina. To celebrate this 15 years is along time in China we ran a series of articles looking back at those years. Whatit was like back then? What have welearned? The entire series can be found inour special reports section of the blog.w w w. c h i n a - b r i e f i n g . c o m / b l o g /

    specialreport

    New guidelines on FDIcreating confusion inthe real estate sectorThe new catalogue for foreign investment,released on November 7, aims to addresssome of what Beijing perceives asstructural problems in Chinas economicdevelopment. Chief among these islimiting the inflow of foreign directinvestment into industries that dolittle to tackle some of Beijings major

    problem areas real estate, mining andnon-renewable mineral resources, andconventional manufacturing.www.china-brieng.com/blog/category/

    feature

    Tax breaks disappear indraft of corporate incometax implementation rulesChina has drafted executive regulationsfor a new corporate income tax lawthat will harmonize the domestic and

    foreign rates, and the final draft has been submitted to the State Council for approval. The income tax rate for foreigncompanies in special bonded zones,which previously enjoyed a preferentialrate of 15 percent, will rise in stagesto 18 percent, 20 percent, 22 percent,24 percent and nally 25 percent, thesame as domestic companies, over veyears, according to the final draft of the executive regulations for the newcorporate income tax law.

    www.china-brieng.com/blog/category/feature

    Consumer prices inChina pushed to ten-year high, low-incomehouseholds feel pressureChinas consumer prices this fall reachedthe highest rates in more than a decade,driven mostly by skyrocketing food costs.While the government says that these

    price increases remain in line with thecountrys economic growth, the impact onthe lower-income families and individuals

    is going to become increasingly heavy. Asthe price of staple commodities continueto rise in China, so to will the anger andfrustration of everyone who has been left

    behind by the countrys economy.

    www.china-brieng.com/blog/category/

    feature

    China to shortenMay break and addtraditional holidaysThe Chinese government released isconsidering shortening the May 1-7Golden Week holiday and establishthree new legal holidays and has releaseda plan that will allocate holidays for Tomb-

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    9China Brieng | December 2007

    Best of the China Brieng Blog

    Sweeping Day, the Dragon-Boat Festivaland the Mid-Autumn Festival. The plan,released on the Internet in order to solicit

    public opinion, could come into operationin time for the 2008 Spring Festival if allgoes well and there is a broad supportamong the public. According to the new

    plan the total number of legal holidays

    will increase from 10 days to 11 days. New Year s Da y rema in s a on e-dayholiday. The Spring Festival will still bethree days, but will begin on the lunar

    New Years Eve, rather than lunar NewYears Day. The National Day will alsoremain a three-day holiday with the bigchange coming from the shortening of the original three-day May Day holidayto one day so that new one-day holidayscould be created for Tomb-SweepingDay, the Dragon-Boat Festival and the

    Mid-Autumn Festival.www.china-brieng.com/blog/category/

    feature

    Delhi Beijing, Mumbai Shanghai: Anything Chinacan do, India can do too

    Consider Delh i and Mumbai , andcompare them with Beijing and Shanghai.Investing in China means having an Asian

    pol icy, and the gian ts of India shouldnot be ignored. Different yes, but oftenrefreshingly so; they are democracy inaction, and it is a comparable, and somewould suggest better, environment than

    Chinas oft shackled cities can offer.www.china-brieng.com/blog/category/

    feature

    China, top producer of greenhouse gases, looksto tap potential resource

    China, plagued with both a growing pollut ion disast er and ser ious ene rgycrutch, is looking for al ternat ivesto its dependency on coal and other fossil fuels to power its economy. Therecently concluded Methane to MarketsPartnership Expo, co-hosted by the U.S.Environmental Protection Agency (EPA)and Chinas National Development andReform Commission (NDRC), attractedmore than 700 participants from 34countries to discuss alternative ways todecrease methane output while harnessingthe gas as an alternative energy source.www.china-briefing.com/category/

    feaure

    Need more info?

    Read the entire China Brieng blogarchives at www.china-brieng.com/blog , Search for news and commentary

    by region or industrial sector and gainaccess to our special reports sectionwith in-depth coverage of importantissues as they occur.

    For additional information on livingand working in China, please visitChina Expat www.chinaexpat.com ,featuring a monthly magazine, blog,Q&A forums and over 60 detailedChina city guides.

    For unique commentary on China-India bilateral trade, investment and relations, please visi t www.2point6billion.com .

    New Technical Guide Available NowChina Briengs Guide To Mergers & Acquisitions in China

    China Briengs much anticipated Guide To M&A in China is now available priced atUSD20 (RMB160) plus p&p, and details:

    Chinas M&A Environment M&A regulations concerning China Listed, State-Owned, Foreign Invested & Privately Held companies M&A transaction and acquisition structures Due Diligence legal, nancial and operational Valuing a target company Negotiation strategies

    Purchasing of bankrupt assets Converting Chinese companies to Foreign Owned Entities Inheriting Labor Law & Tax issues Common Mistakes in M&A.

    Orders from [email protected] China Foreign Investment Legal & Tax Advice From Dezan Shira & Associates

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    Resources FromDezan Shira & Associates

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