Legislation roundup: Cybersecurity, FDI Catalogue, bond market and high-tech companies
July 10, 2017 | BY
Katherine Jo &clp articles &The CAC has elaborated on the scope of "CII", 2017 Foreign Investment Catalogue has further facilitated FIE establishment, the PBOC has regulated bond connect credit ratings, and the SAT has clarified the preferential tax periods for HNTEs
Cybersecurity
Cyberspace Administration of China, Regulations for Protection of the Security of Critical Information Infrastructure (Draft for Comments)
The network facilities and information systems operated and managed by the entities set forth below may be incorporated into the scope of critical information infrastructure subject to protection:
(1) government agencies, and entities in industries and sectors such as energy, finance, transport, water resources, health and medicine, education, social insurance, environmental protection and public utilities;
(2) information networks, such as telecommunications networks, radio and television networks and the internet, as well as entities that provide cloud computing, big data and other large public information network services;
(3) scientific research and production entities in industries and sectors such as science and technology industry for national defense, large-scale equipment, chemical industry, food and pharmaceuticals; and
(4) news entities such as radio stations, television stations, news agencies;
See the digest for more details.
Further reading
FDI
National Development and Reform Commission and Ministry of Commerce, Foreign Investment Industrial Guidance Catalogue (Amended in 2017)
The amended Catalogue further shrinks the scope of the establishment of, and changes to, foreign-invested enterprises that require examination and approval. Other than “the acquisition by domestic companies, enterprises or natural persons through their lawfully established or controlled offshore companies of domestic companies with which they have an affiliated relationship”, the establishment of enterprises through acquisition by foreign investors and changes thereto, where special administrative measures for access are not involved, including the bringing in of foreign investors by listed companies as strategic investors, will be subject to administration by means of record filing.
See the digest for more details.
See the full translation.
Further reading
Capital Markets
People's Bank of China, Announcement [2017] No.7
A lawfully established foreign credit rating agency with legal personality that wishes to engage in credit rating business on the interbank bond market relating to the offering of bonds (CRB) shall undertake to submit the CRB it engages in to the oversight of the People's Bank of China, or the credit rating regulator of the country or region where it is located shall have executed a cooperative credit rating regulation agreement with the People's Bank of China.
See the digest for more details.
Further reading
Tax
State Administration of Taxation, Announcement on Issues Relevant to the Implementation of the Preferential Income Tax Policies for High and New Technology Enterprises
Once an enterprise has secured the status of a high and new technology enterprise, it shall apply for and enjoy the preferential tax policies from the year in which the date of issuance of its certificate for a high and new technology enterprise as indicated on such certificate falls and carry out record filing procedures with the competent tax authority in accordance with provisions.
See the digest for more details.
Further reading
Cybersecurity
Cyberspace Administration of China, Regulations for Protection of the Security of Critical Information Infrastructure (Draft for Comments)
The network facilities and information systems operated and managed by the entities set forth below may be incorporated into the scope of critical information infrastructure subject to protection:
(1) government agencies, and entities in industries and sectors such as energy, finance, transport, water resources, health and medicine, education, social insurance, environmental protection and public utilities;
(2) information networks, such as telecommunications networks, radio and television networks and the internet, as well as entities that provide cloud computing, big data and other large public information network services;
(3) scientific research and production entities in industries and sectors such as science and technology industry for national defense, large-scale equipment, chemical industry, food and pharmaceuticals; and
(4) news entities such as radio stations, television stations, news agencies;
See the digest for more details.
Further reading
FDI
National Development and Reform Commission and Ministry of Commerce, Foreign Investment Industrial Guidance Catalogue (Amended in 2017)
The amended Catalogue further shrinks the scope of the establishment of, and changes to, foreign-invested enterprises that require examination and approval. Other than “the acquisition by domestic companies, enterprises or natural persons through their lawfully established or controlled offshore companies of domestic companies with which they have an affiliated relationship”, the establishment of enterprises through acquisition by foreign investors and changes thereto, where special administrative measures for access are not involved, including the bringing in of foreign investors by listed companies as strategic investors, will be subject to administration by means of record filing.
See the digest for more details.
See the full translation.
Further reading
Capital Markets
People's Bank of China, Announcement [2017] No.7
A lawfully established foreign credit rating agency with legal personality that wishes to engage in credit rating business on the interbank bond market relating to the offering of bonds (CRB) shall undertake to submit the CRB it engages in to the oversight of the People's Bank of China, or the credit rating regulator of the country or region where it is located shall have executed a cooperative credit rating regulation agreement with the People's Bank of China.
See the digest for more details.
Further reading
Tax
State Administration of Taxation, Announcement on Issues Relevant to the Implementation of the Preferential Income Tax Policies for High and New Technology Enterprises
Once an enterprise has secured the status of a high and new technology enterprise, it shall apply for and enjoy the preferential tax policies from the year in which the date of issuance of its certificate for a high and new technology enterprise as indicated on such certificate falls and carry out record filing procedures with the competent tax authority in accordance with provisions.
See the digest for more details.
Further reading
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