Full Text Translation

(Promulgated by the Ministry of Foreign Trade Economic Cooperation on March 7 2003 and effective 30 days after the date of promulgation.)The following…

A circular issued by the State Administration of Foreign Exchange on improving the control of foreign exchange in foreign direct investment.

Following the 16th National Congress of the Communist Party in November 2002, the NPC issued the reform plan which reflects China's interest in developing a "market economy with socialist characteristics." Particularly, a number of government bodies are merged into a new Ministry of Commerce (MOFCOM).

A set of provisions which governs the urban planning services operated by foreign-invested enterprises.

New rules for the acquisition of domestic firms by foreign investors have recently been issued, and constitute one of the most important legislative developments affecting foreign parties in China this year.

Joint venture trading companies are now allowed on a wider scale. Trading companies can now be set up anywhere in China, the start up requirements are less restrictive, and the scope of business is wider.

The PRC tax authorities move in to prevent the loss of tax revenue arising from debt restructuring activities.

Foreign enterprises in the PRC are required to pay value-added tax, business tax and enterprise income tax on the revenue from disposing Chinese financial assets.

The PRC's new Foreign Debt Administration Tentative Procedures set out tighter foreign debt registration requirements, while collecting and putting a high-level government imprimatur on various policies and practices.