The Growing Cost of Investing in China: A Shift in Strategy

Beginning December 1, 2010, foreign enterprises in China were required to pay “municipal maintenance and development taxes” and “educational taxes,” eliminating the last two tax exemptions that were previously accorded to foreign-invested companies. As a result, foreign invested companies enjoy no more tax benefits and bear the same tax burdens and obligations as their Chinese…

A New Breed of Foreign Direct Investment in China: Tourism

Overseas tourist destinations are becoming increasingly popular among Chinese people who are fond of travelling in their leisure time. In line with the growing outbound tourist trend, the Chinese government has recently issued the Provisional Measures Governing Outbound Tours Operated by Sino-Foreign Joint Venture Tourist Agencies (“Measures”). The Measures came into effect on 7 September…

The Singapore Sling Meets the Mojito

Last month, Singapore welcomed the world’s only high-speed Formula One (“F1”) night race. Under the backdrop of the Grand Prix, Singapore hosted the Seventh Latin Asia Business Forum. Economists are forecasting a healthy growth rate for trade and investment between Latin America and Southeast Asia, specifically Singapore. The potential opportunities for collaboration between the regions…

Resolving Disputes in Private/Public Partnership Agreements

Generally speaking, public-private partnerships (PPPs) are mechanisms through which public sector works can be constructed, managed and/or operated by a private entity for the ultimate benefit of the public. PPPs are inherently complicated projects with numerous contractually obligated participants involved. Thus such PPP projects demand a concerted diligence to manage and avoid potential disputes. There…

Enhanced Protection of Privacy to Change the Business Environment in China

When the Chinese legislature enacted a new criminal statute in 2009 penalizing unlawful acquisition and misappropriation of citizens’ private information, no one thought that the government would be serious in enforcing it. The reason was simple: privacy rights have not been fully defined in China, and unscrupulous exploitation of personal information, including sale and purchase…

China Explores Emerging Opportunities in Mexico

China and Mexico share important priorities that have forged the basis for cooperative relations between the two nations.  For Chinese investors, Mexico has become a desirable investment destination because of its wealth of natural resources, modern infrastructure, internationally qualified workforce, and predictable legal environment. The fact that Mexico has been blessed with natural resources so…

Will PayPal Thrive in China? – China’s New Regulation of Third Party Payment Services

On June 21, 2010, the central bank of China issued long-awaited regulation for third-party payment providers. According to the regulation, non-bank payment service providers must apply for a license from the central bank and use banking institutions as agents when they transfer capital from each other. In addition, payment providers must keep customers’ funds in…