Legislation roundup: Reinsurance, enterprise costs and product tracking system

March 16, 2017 | BY

Katherine Jo &clp articles &

The CIRC has required offshore reinsurers to provide security measures, Guangdong has eased corporate operating cost burdens and a plan to make every single ingredient traceable by 2020 was launched

Insurance

China Insurance Regulatory Commission, Circular on Matters Relevant to the Provision of Security Measures by Offshore Reinsurers

A domestic insurance company may request that an offshore reinsurer provide security measures in respect of the following risk exposures:

(1) reinsurance amounts receivables; and

(2) reinsurance reserve receivables.

Further reading

Guangdong

Guangdong Province, Working Plan for Reducing the Costs of Enterprises in the Real Economy

Guangdong has proposed some measures to reduce the costs of enterprises:

  1. Comprehensively implementing the pilot project for switching from business tax to value-added tax and ensuring that the tax burden on all industries only decreases and does not increase.

  2. Exploring gradually reducing the percentage of enterprises' employee basic old-age insurance premiums payable by the entity to 14%, and maintaining the unemployment insurance premium rate at 1%.

  3. Changing the current system of at least one revision of the minimum wage rate every two years to, in principle, at least one revision every three years.

See the digest for more details.

Further reading

Retail and Wholesaling

Ministry of Commerce, Ministry of Industry and Information Technology, Ministry of Public Security, Ministry of Agriculture, General Administration of Quality Supervision, Inspection and Quarantine, State Administration of Work Safety and China Food and Drug Administration, Guiding Opinions on Promoting the Development of a Computerized Tracking System for Key Products

By 2020, development of the state's key product tracking management platform and the tracking systems for categories of products such as edible agricultural products, foods, pharmaceuticals, means of agricultural production, special equipment, hazardous products and rare earth products will essentially be completed and operation started.

See the digest for more details.

Further reading

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