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Blog - Israelies doing business in China

Strengthening of Supervision for Financial Transactions out of China

Strengthening of Supervision for Financial Transactions out of China

The PBOC (People's Bank of China) published new requirements for banks and financial institutions that will come into effect in July 2017. The new rules tighten the supervision over outbound investments, large-scale transactions and foreign exchange, while trying to bring back China's capital control. (In Hebrew)

 

 

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Happy Chinese New Year 2017 - Year of the Rooster

Happy Chinese New Year 2017 - Year of the Rooster

2017 is the year of the rooster, as are the years of 1921, 1933, 1945, 1957, 1969, 1981, 1993, and 2005.

According to the customs of the far east, the rooster is characterized by its decisiveness, toughness, hard work, loyalty and accuracy, while taking care to give a large awakening call at the dawn of a new day.

Inspired by the characteristics of the rooster, we wish you a happy and successful Chinese New Year ! (in Hebrew)

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China is stepping up restrictions on outbound investments

China is stepping up restrictions on outbound investments

China’s non-financial outbound investments reached more than $ 146 billion in 2016. In order to ensure RMB outflow remain controlled, Chinese authorities announced on stricter supervisory measures towards outbound investment. (in Hebrew)

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Major reform in the foreign investment administration in China

Major reform in the foreign investment administration in China

After a 3 years trial run in the free trade zones only, foreign investments in China have been greatly simplified nationwide by adopting a record-filing administration mechanism.  (in Hebrew).

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Big data, privacy protection and a draft of the new cyber law in China

Big data, privacy protection and a draft of the new cyber law in China

 

Why are foreign internet companies uneasy about recent legislative updates in China? Fast technological advances in China and increased use of websites and apps by consumers pose new challenges for the government in the realms of big data, privacy and data protection. (in hebrew)

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VAT reform in China

VAT reform in China

Companies, venture capital funds, executives, financial managers, businessmen and investors interested in penetrating the Chinese market or already active in it, must be knowledgeable and keep up-to-date with the biggest tax reform in the last twenty years, which was expanded on May 1, 2016. (in hebrew)
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China – the world’s most prosperous mobile market

China – the world’s most prosperous mobile market

 

With China’s recent years of fast growth in the background, it is not surprising that the state continues to break records, preserving its position as the country with the greatest number of online visitors. (in hebrew)

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China’s secret: opportunity for Israeli companies to raise financing in China

China’s secret: opportunity for Israeli companies to raise financing in China

 

NEEQ is an over-the-counter (OTC) market launched throughout China at the end of 2012 and currently includes more than 3,000 registered companies (mostly in Shenzhen and Shanghai), which raised more than 18 billion Yuan in 2015. (in hebrew)

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In September 2013, China established its first free trade zone (Pilot) in Shanghai. Since its establishment, China has launched three additional free trade zones in Tianjin, Guangdong and Fujian. The free trade zones are intended to drive regional growth by encouraging selected industries to cluster in that area.

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How to avoid being “stung” in China

How to avoid being “stung” in China

 

Alongside advanced legislative protection in Chinese corporate law, many companies around the world remain hesitant about importing into China. Concern derives mostly from fraud, unfair competition and breach of various rights by the Chinese counterpart. (in hebrew)

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Precedent at the District Court: judgment granted in China to be enforced in Israel

Precedent at the District Court: judgment granted in China to be enforced in Israel

 

A company owned by the Chinese government petitioned for enforcement of pecuniary judgment against an Israeli citizen for breach of contract. The District Court ruled that in light of the current legal condition in China there is reasonable potential of enforcing Israeli judgments in China, satisfying the mutuality requirements of the Enforcement of Foreign Judgments Law. (in hebrew)

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Crowdfunding in China

Crowdfunding in China

 

For the first time the issue of crowdfunding platforms was brought before the court in China. However, in the absence of clear regulation the court avoid discussing the legality of such type of crowdfunding transactions, and related to the contract executed between the parties as a legally binding intermediate agreement. (in hebrew)

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Shanghai continues to support and promote establishment of R&D centers

Shanghai continues to support and promote establishment of R&D centers

 

Until August of this year approximately 400 foreign research and development centers have been established in Shanghai, two-thirds of which in Pudong District. The centers established in Shanghai represent approximately 25% of all foreign R&D centers in China. (in hebrew)

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China’s homeland security law

China’s homeland security law

 

On July 1st the National Security Law of China was published. According to the government the purpose of the law is dealing with complex threats to national interests, from cyber to terror. (in hebrew)

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The market for medical devices and healthcare reform

The market for medical devices and healthcare reform

 

Currently the market for advanced medical devices in China relies mostly on import. Approximately 70% of advanced medical devices are imported, mostly from the U.S. (41%), Japan (10%) and Germany (8%), where the brands are held in high esteem and are especially coveted in private hospitals and among the upper class in China. (in hebrew)

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Grants to Israeli companies for establishing marketing activity in China, India and Japan

Grants to Israeli companies for establishing marketing activity in China, India and Japan

 

The Foreign Trade Administration at the Ministry of Economy recently announced plans to assist in the establishment of marketing activity in China, India and Japan (the “Directive”). (in hebrew)

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MWC Mobile World Congress – Shanghai 2015

MWC Mobile World Congress – Shanghai 2015

 

Last week GSMA announced a new landmark when it reported that approximately 40,000 participants from 100 countries took part in the Mobile World Congress held in Shanghai. (in hebrew)

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New Free-Trade Zones in China

New Free-Trade Zones in China

 

In the past establishing a company in China was a cumbersome and complex bureaucratic process that lingered on for months. Similarly, there were many areas in which foreign companies were not permitted to conduct business in China. (in hebrew)

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Entering China’s e-commerce market: nationwide access declared for foreign investors

Entering China’s e-commerce market: nationwide access declared for foreign investors

 

China’s Ministry of Industry and Information Technology (MIIT) has carried out another reform in favor of foreign investment in China’s profitable e-commerce market. (in hebrew)

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Changes in the food industry in China

Changes in the food industry in China

 

Providing food for China’s huge population (approximately 1.3 billion citizens) is no small task, however securing sufficient quantities and maintaining the quality of food is the real issue facing the Chinese government. (in hebrew)

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Launching a Chinese internet website is no simple task

Launching a Chinese internet website is no simple task

 

China’s e-commerce market reached $12.3 trillion (!) in 2014, compared to $2 trillion in the previous year, a substantial increase bearing witness to the increased use of the internet for commerce in China. (in hebrew)

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Celebrating the 1st anniversary of the Shanghai Free-Trade Zone

Celebrating the 1st anniversary of the Shanghai Free-Trade Zone

 

A year has lapsed since declaring the pilot program for the Shanghai Free-Trade Zone. In spite of disagreements regarding various reforms, the Free-Trade Zone has proven itself as a source for significant change and as a true step towards an international trade standard.

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Ties between the Shanghai and Hong Kong stock exchanges – a boost for the Chinese economy?

Ties between the Shanghai and Hong Kong stock exchanges – a boost for the Chinese economy?

 

Last April the securities authorities in China announced plans for enabling trade of securities between the Shanghai and Hong Kong stock exchanges. This is a significant and groundbreaking move on the part of the two leading stock markets in the east, which decided to join forces. (in hebrew)

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New guidelines and limitations on employment through hiring agencies in China

New guidelines and limitations on employment through hiring agencies in China

 

Interim provisions regarding employment through hiring agencies have been considered and adopted on December 20, 2013, and became effective on March 1, 2014. (in hebrew)

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Significant changes to Chinese trademark law

Significant changes to Chinese trademark law

 

The 3rd amendment of the trademarks law shall come into effect on May 1, 2014, which significantly amends the law and includes many positive changes. (in hebrew)

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Amendment to the Chinese companies law

Amendment to the Chinese companies law

 

The amendment to the Chinese companies law, approved on December 28, 2013, and effective as of March 1, 2014, materially changes the issue of registered capital in China. (in hebrew)

 

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Shanghai Free-Trade Zone pilot

Shanghai Free-Trade Zone pilot

 

Encouraging foreign investment is the main objective of the Shanghai Free-Trade Zone. Although the new rules apply only in the Free-Trade Zone, they give us an important view to a possible direction of future legislation regarding investment across China. (in hebrew)

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Chinese legislation update

Chinese legislation update

 

"At the meeting of the State Council held in the presence of the Prime Minister of China on October 25, a reform to the process for registering companies (and specifically to the registered capital requirement) was agreed upon." (in Hebrew)

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Innovation and updates to Chinese intellectual property laws: current and anticipated

Innovation and updates to Chinese intellectual property laws: current and anticipated

 

As part of the government’s attempt to encourage foreign investment in China, emphasis has been placed on enforcement of intellectual property rights with the objective of changing the reputation of the Chinese market as being dangerous to patents and copyright. (in hebrew)

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Practical guide to labor law in China

Practical guide to labor law in China

 

The new Chinese Employment Contract Law came into effect in January 2008, imposing many broad limitations on employers and expanding employee rights. (in hebrew)

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The new guide to foreign investments in China

The new guide to foreign investments in China

 

At the end of December 2011 the Chinese Ministry of Commerce and the National Development and Reform Commission published: “Foreign Investment Guidance Catalogue 2011”, which came into effect at the end of January 2012 (the “New Catalogue”). (in hebrew)

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Israeli water industry in China – challenges and opportunities

Israeli water industry in China – challenges and opportunities

 

China is one of the largest and fastest growing markets for the water industry (20% growth per year). China has a water problem and certain areas have no access to sources of clean water, which is a major problem. (in hebrew)

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The Chinese real-estate market – bubble of opportunity?

The Chinese real-estate market – bubble of opportunity?

 

Is China’s real-estate market a bubble or will optimistic forecasts of permanent rise in China’s growth rate come true to bring demand for new apartments in the city to a record high? (in hebrew)

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The journey into mainland China

The journey into mainland China

 

In recent years China has been one of the most attractive destinations for foreign investments, while most focused on eastern China. A new trend is now driving more international and Israeli hi-tech companies to invest in central and western China. (in hebrew)

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Chinese legislation update

Chinese legislation update

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Hi Tech in China – opportunity or risk?!

Hi Tech in China – opportunity or risk?!

 

“If you can’t beat them, join them.” Many Israeli technology companies are asking themselves, in light of the technological flourish in China, whether it may be beneficial to join the trend and impressive growth or are the risks of business and financial operations in China too great!? (in hebrew)

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Toughening credit terms in China will cause Chinese companies to renounce obligations

Toughening credit terms in China will cause Chinese companies to renounce obligations

 

Experts estimate that many small Chinese companies can be expected to cease operations during 2011, in response to the requirements of the Chinese government to increase central bank reserve levels. (in hebrew)

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Chinese legislation update

Chinese legislation update

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Incorporation in China – Choosing the suitable form of incorporation

Incorporation in China – Choosing the suitable form of incorporation

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Year of the Rabbit and the 12th Five-Year Plan

Year of the Rabbit and the 12th Five-Year Plan

 

Chinese New Year was celebrated in the beginning of February 2011, with the Zodiac transition from Tiger to Rabbit. The Rabbit symbolizes calm and optimism, in contrast to the Tiger which symbolized dramatic changes. (in hebrew)

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Chinese global acquisitions

Chinese global acquisitions

 

In recent years, and particularly since China’s foreign currency deposits grew to immense proportions, China has begun looking abroad for direct or indirect investment opportunities (by government companies and/or loans to Chinese companies), by acquiring shares, companies and assets around the world. (in hebrew)

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On the significance of contracts in China

On the significance of contracts in China

 

In spite of many changes China has experienced in recent years, many differences still remain between Chinese and western cultural and business thinking. In this post I will focus on one of the best known and most important of such differences, which is the different significance of executing contracts in China. (in hebrew)

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Penetrating the Great Wall or an Introduction to Doing Business in China

Penetrating the Great Wall or an Introduction to Doing Business in China

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