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Danish Business Outlook on China Index May 2022

The DBOC Index established in January 2021 tracks changes in the outlook of Danish companies with activities in China.

Complementary to the DBOC Index, the Danish Embassy and missions in China, The Danish Chamber of Commerce (DCCC), Danish-Chinese Business Forum (DCBF) and the Sino-Danish Center for Education and Research (SDC) jointly implements a comprehensive survey of Danish companies in China. The first edition was published in June 2020 while the data of the second survey was concluded in December 2021.

In light of the Russian invasion of Ukraine and the disrupting effects of the latest COVID-19 outbreak in Shanghai and China and the expected impact it will have on trade, supply chains, and companies in China and all over the world, an additional flash survey was conducted in order to supplement the initial findings. The survey was conducted between 18 April and 6 May.

This special edition, therefore, presents the findings of the add-on survey and a reflection on the results related to companies’ plans and expectations for the Chinese market post the Russian invasion of Ukraine and the latest COVID-19 outbreaks in China.

 

LATEST DANISH BUSINESS OUTLOOK ON CHINA (DBOC) INDEX – CONCLUDED MARCH 2022

 

THE SIGNIFICANCE OF CHINA HAD BEEN GROWING UP UNTIL 2021

Using 2020 as a reference year, on average, more than a fifth of the turnover of the original respondents’ was created by their entities in China. In terms of progress, compared to two years prior, 62 pct. of the respondents believed that a higher share of their companies’ turnover was generated in China by the end of 2021. Correspondingly, at the time, only 13 pct. estimated that the percentage of their company’s global turnover generated in China was lower or significantly lower than 2 years ago.

 

7 OUT OF 10 COMPANIES EXPECT GROWTH TO DETERIORATE DUE TO COVID-19

Just below two-thirds of Danish companies in China indicated in December 2021 that the proportion of turnover generated in China would increase in the coming two years. On the other hand, less than one in ten expected the Chinese market to play a smaller role in the same time span.

When asked to reflect on the same question in April/May 2022 the number of respondents who expected that the proportion of turnover generated in China would decrease had grown from 10 pct. to 26 pct.

Thus, confidence in the Chinese market has clearly diminished following the Russian invasion of Ukraine and the latest COVID-19 outbreak in Shanghai and China. When asking the respondents to reflect on to what extent each of the two occurrences affected the companies’ expectations toward turnover generated in China in the next two years below figures clearly shows that both incidents have had a significant influence on the respondents’ expectations.

Almost seven out of ten of the surveyed companies indicate that the COVID-19 outbreak in March 2022 in Shanghai and China has deteriorated or significantly deteriorated their expectations towards future turnover in China in the next two years.

 

INVESTMENT PLANS PUT ON HOLD OR SCALED BACK

When the second survey in 2021 was conducted, the vast majority – two-thirds (down from three quarters in 2019) – of Danish companies planned to increase capacity investments in China significantly. Most companies expected the capacity increase to include more investment in both personnel and assets. Conversely, less than 6 pct. expected to decrease capacity in China. This indicated that Danish companies, at the time, still showed a strong commitment to the Chinese market, although the numbers had dropped slightly since the first survey was published in 2020.

Once again, the surveyed companies indicate that their confidence in the Chinese market has clearly declined following the Russian invasion of Ukraine and the COVID-19 outbreak in Shanghai and China. The proportion of companies that no longer plan to significantly increase capacity in China in the next two years has risen by 23 pct. points over the time span of only four months.

When assessing the root cause of the decline in investment plans then, similarly to the respondents’ expectation for future turnover, it is the COVID-19 outbreak in March in Shanghai and China, which has the largest effect, albeit both events still have a significant impact based on company feedback. That 48 pct. of companies indicate that the COVID-19 outbreak has a deteriorating or significant deteriorating effect on their plans to increase capacity in China is in stark contrast to the fact that in December 2021 only 5 pct. of all surveyed companies indicated plans to decrease capacity in the coming two years.

SUPPLY CHAINS HIT HARD

Respondents clearly indicate that they face increased supply chain challenges between the conclusion of the second comprehensive survey and the time of the add-on survey. More than eight out of ten surveyed companies now indicate that they agree or strongly agree that they face supply chain challenges in China, which is an increase of 34 pct. point in the time span of only four months.

In December 2021 respondents of the second comprehensive survey indicated that 29 pct. of the companies were divesting in China in order to build resilience in supply chains outside of the country. Although this question was not repeated in the add-on survey, it is probably fair to assume that the proportion of companies considering divesting in China in order to build resilience in their supply chains has increased since then and most likely also affected the previous plans to increase capacity.

Especially since most Danish companies indicate that they are in China for both the Chinese and other global markets. At the time of the survey in December 2021, 92 pct. of all companies surveyed indicated that their manufacturing activity in China is intended for other markets than China or a combination of the Chinese market and abroad. Furthermore, 80 pct. of the surveyed companies replied that their sourcing activity in China was mainly intended for other markets or a combination of the Chinese market and abroad.

It is the latest COVID-19 outbreak and its spillover effects in Shanghai, which has the largest effect on companies’ increased supply chain challenges. This is not surprising given how decreased logistical capacity, has affected companies’ operations and their ability to receive components as well as to ship finished goods to customers in China and overseas.

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European Companies In China Navigate Covid-19, More Perilous Waters Lie Ahead

在华欧盟企业渡过疫情困境，未来或将迎更大风浪

Beijing, 8th June 2021 – The European Union Chamber of Commerce in China, in cooperation with Roland Berger, today released its European Business in China Business Confidence Survey 2021 (BCS). The annual survey was completed by 585 European Chamber member companies, answering questions about 2020 performance, as well as future outlooks.

2021年6月8日，北京 – 中国欧盟商会携手罗兰贝格管理咨询公司于今日发布《商业信心调查2021》。该项年度调查由585家欧盟商会会员公司完成，就在华欧盟企业2020年业绩以及未来前景等相关问题作答。

European Companies In China Navigate Covid-19, More Perilous Waters Lie Ahead

Key findings

Prospects, last year, seemed quite gloomy: an early 2020 survey, conducted jointly by the European Chamber and the German Chamber of Commerce in China, found that half of the respondents expected 2020 revenue to drop year-on-year (y-o-y), and a mere 0.5% anticipated revenue growth. In fact, only a quarter of respondents to the BCS 2021 reported revenue declines and 42% experienced growth. The strong performance was indicated in other areas as well:

主要结论

去年年初的商业前景看似相当黯淡：2020年年初，中国欧盟商会和德国商会对会员公司开展了一项联合调查，其中50%的受访者预计收入将同比下降，仅有0.5%的受访者预计收入将不降反升。但实际上，《商业信心调查2021》显示只有四分之一的受访者表示收入下降，42%的受访者仍然实现了一定程度的收入增长。良好的表现也同样体现在其他方面：

  • Three out of four respondents turned a profit in 2020, the same proportion as the last five years, demonstrating that even in challenging times, European companies adapted and found success.
  • 四分之三的受访者在2020年实现盈利，这一比例与近五年内持平，这表明面对困难，欧盟企业适应了当下这个充满挑战的时代并获得成功。
  • 68% are optimistic about future growth, a significant 20 percentage point increase y-o-y.
  • 68%的在华欧盟企业对业务增长持乐观态度，这一数据年同比增长了20个百分点。
  • Commitment to the China market remains strong – a mere 9% of respondents are considering shifting any current or planned investment out of China, the lowest share on record.
  • 坚定扎根中国市场——仅有9%的欧洲企业考虑将现有或计划内在华投资转移到其他国家和地区，这一比例再创新低。

Yet, as geopolitical tensions grow, companies are looking for ways to decrease their exposure, particularly to possible cross-border disruptions resulting from either the trade war or the ongoing technological divergence between China and the west.

然而，由于地缘政治局势不稳定，企业正在为应对未来的风险做好准备，特别是因贸易战或中西方之间持续存在的技术分歧所可能导致的跨境交易中断产生的风险。

  • Only 21% of manufacturers reported that they do not import critical components. Meanwhile, a third import components or equipment for which there are no viable alternatives. The rest can find other solutions, but at higher costs, lower quality and/or with compatibility issues.
  • 21%的制造企业报告表示他们不进口关键零部件。同时，三分之一的企业所需的进口零部件没有可用的替代品。剩余的企业可以找到解决方案，但都存在成本较高、质量较低和/或兼容性问题。
  • In response, over a quarter of manufacturers are onshoring at least some of their supply chains, five times as many as are offshoring.
  • 对此，超过四分之一的制造企业正在对至少部分本地供应链加强建设，这一数量是转移供应链的企业的五倍。
  • European companies in joint ventures with local partners are strengthening their positions, with 27% increasing their shares, and two thirds are taking full ownership or a controlling share.
  • 与当地合作伙伴建立合资企业的欧盟企业正在对合资公司增资，有27%的外资方提高了在合资公司中的持股比例，三分之二的企业拥有全部所有权或控股权。

Meanwhile, as China’s reform agenda continues to lag, and external risks surge, it is imperative that reform efforts accelerate and long-standing regulatory challenges are resolved to offset emerging ones.

与此同时，随着中国改革进程持续减缓，外部风险增大，通过加速改革来解决长期监管困境以抵消正在涌现的新挑战，此举势在必行。

  • Market access barriers are reported by 45% of members, a marginal increase from the 44% that felt the same in 2020.
  • 45%的会员企业表示遭遇了市场准入壁垒，与2020年的44%相比略有增加。
  • Unequal treatment persists for 47% of respondents.
  • 47%的受访企业依然受到区别待遇。
  • SOE reform appears to have stalled, with only 15% of respondents expecting the private sector to gain opportunities at the expense of the state-owned sector, and 48% expecting the opposite.
  • 国有企业改革似乎停滞不前，仅有15%的受访者预计“民进国退”，48%的受访者持相反意见。
  • Compelled technology transfers persisted for 16% of respondents, the same as 2020 despite the Foreign Investment Law coming into force.
  • 尽管《外商投资法》已经生效，但被迫进行技术转让的情况仍然出现在16%的受访者中间，这一比例与去年持平。
European Companies In China Navigate Covid-19, More Perilous Waters Lie Ahead
  • A third of respondents have been negatively impacted by the new regulatory requirements related to “critical information infrastructure” and “autonomous and controllable technology”.
  • 包含“关键信息基础设施”和“自主可控技术”等概念的监管要求定义模糊且宽泛，导致三分之一的受访者受到负面影响。

“Our members’ long-term commitment to the China market paid dividends in 2020, but geopolitical tensions are forcing us to reconsider our strategies here,” said Charlotte Roule, Board Member of the European Chamber. “European companies are not decoupling by leaving China, but instead are considering which cross-border ties between China operations and global ones can and must be cut.”

“我们的会员企业对中国市场的长期承诺在2020年实现了回报，但地缘政治的紧张局势迫使我们重新考虑在中国的战略。”中国欧盟商会董事会成员夏澜（Charlotte Roule）女士表示：“欧洲企业并不计划离开中国市场并与其脱钩，而是在权衡如何调整中国业务与全球业务之间的联系。”

“European companies both contributed to and benefitted from China’s strong and speedy economic recovery,” said Denis Depoux, Global Managing Director of Roland Berger. “If given the right opportunities, they are ready to deepen their positions here, and have a wealth of technology and expertise to drive not only growth but also help with China’s decarbonization goals and its industrial upgrade.”

“欧洲企业对中国强劲而迅速的经济复苏做出贡献，并从中受益。”罗兰贝格管理咨询公司国际董事总经理戴璞（Denis Depoux）先生表示：“如果有适当的机会，相信欧盟企业将逐渐深化在中国的地位，并拥有丰富的技术和专业知识，它们不仅可以推动增长，还有助于实现中国的脱碳目标和产业升级。”

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China Likely Reopens to World in First Half of 2022: Top Experts

After more than a year, the world is still battling against COVID-19, prompting many to wonder when people-to-people exchanges will return to normal, when China will open its doors to the world, and to what extent vaccines and mutated variants will impact the resumption of international travels.

Zhang Wenhong, a leading infectious disease expert, believes that China will be able to reopen to countries with good inoculation and low infection rates in the first half of 2022, but that will still depend on how many people in the country have been inoculated.

Countries with a higher inoculation rate such as Israel, the US and the UK will make deals to resume people-to-people exchanges in the second half of this year. But the date for a resumption of global travel remains unknown, as that would be determined by the overall vaccination rate and speed of mutated variants, said Zhang at the Boao Forum for Asia in Qingdao, East China’s Shandong Province on Wednesday. 

Asked whether it would be necessary to receive COVID-19 vaccines every year just like influenza vaccines, Zhang said it depends on what percentage of people who have received a vaccine become re-infected, though most assume that it would be necessary because, with the passing of time, the protection generated by any vaccine will fade.

Also, there is no evidence so far to indicate that mutated variants have escaped from vaccines, and the virus has not generated new serotypes, which means “we have to wait for more data to decide if human beings have to get inoculated repeatedly,” Zhang noted. 

Gao Fu, an academician from the Chinese Academy of Sciences and head of the Chinese Center for Disease Control, recently said that it seemed that the virus evolves like an influenza virus.

“We probably need to receive jabs against COVID-19 every year, just like how we coexist with influenza,” said Gao, adding that when there is an immunity barrier against COVID-19, the regular jabs will be used to prevent critical cases rather than simply avert infections.

To reach herd immunity against COVID-19, China will have to vaccinate 80 percent of its population, and this target is likely to be reached by the end of this year, following stronger public willingness to receive jabs propelled by recent waves of epidemic resurgence in some places, said Chinese top epidemiologist Zhong Nanshan.

Photo: China Daily

China’s speed in administering vaccines has been accelerating recently with more than 700 million doses administered across the country by Wednesday, data from the National Health Commission showed. 

The intervals per 100 million doses have gradually become shorter, from the previous 25 days, 16 days, nine days, seven days and now only five days, statistics indicated.

Source: Global Times 

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How To Check Your Tax Record in China

China has made many tax abatement reforms since 2017, most particularly, a significant individual income tax reduction policy in Oct 2018. People who work in China benefit a lot from this new regulation.

In the meantime, the Chinese government’s rules on tax declaration has become more strict in an effort to counteract tax avoidance. The tax record become more and more important and will soon be linked to the paperwork required for almost any formal procedure, for example, your work permit renewal. You must provide your tax report before getting approved to continue with any kind of legal procedure in most major Chinese cities (in Shanghai, Beijing and Shenzhen only part of applications(apply by point system) require this tax report, however it will soon become mandatory for all.)

How to know whether your tax report is qualified?
The salary stated by your company or agent in your work permit application form will be the standard againt which the bureau will check your tax payments.

How do you check your tax records?

Here’s the 4 ways:

1.Print by your accountant if you work in a company
However, this is not a full version and only show your salary income tax records under this company and can not for the work permit renewal procedure.

2. Apply in the Tax Bureau Hall
You can also go to any tax bureau hall to print your tax report or hire an agent to print for you, this is a full version with tax bureau stamp and your tax number.

Or if you have the “Registration Code” or your passport activated in the tax system, you can also print the tax report on any of the ARM machine on the Self-Help Tax Service Hall.

Here is the most formal tax report from the tax bureau:

3. Apply online or by app
To visit https://gr.tax.sh.gov.cn/webchart as an example

1) You’ll see the login screenshot as below:

2) As we tested, the Alipay verification only avaiable for Chinese but not foreigners, we suggest foreigner to apply a “Registration Code” in the local tax bureau.

3) This “Registration Code” can be easily applied from any of the tax bureau hall for foreigners or you can ask an agent to apply for you.

4) When you register and log in, you’ll see the below screenshot, click on “Individual Income Tax Report Application” (“个人所得税纳税清单查询和申请”)

5) You’ll see all your 2018 tax records here, click the arrow on the right side to see all the details, including which company paid the tax on your behalf, the amount of salary declared anda amount of taxes paid for every month.

6) Click the “Tax list and report application”(“申请纳税清单”) and the system will organize the report and send it to your pointed email.

This is the final version of the tax report that you will get, this one can be for work permit renewal or any other procedure:

4. Apply via Alipay on your phone
This is the easiest and fastest way to apply tax report, follow our steps here:

1) Open your Alipay app and click on “CityService”

2) Click “Government Affairs”(“政务”)

3) Slide down a little bit and click “Tax Hall”(“税务大厅”)

4) Then we’ll see the homepage of the tax system

The left steps will be the same as the one in the website or app.

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!

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How to Apply Chinese Permanent Residence?

Since 2017, there are many expats who got the Chinese permanent residence, it has beccome quite popular to apply for Chinese PR( Green Card). Below is a list to check if your qualify for the Chinese PR.This is the most popular PR application type.

First, The PR is only valid for 5-10 years. And it is only for the following type of expats:

1. Have a Chinese spouse; For most of the expats who are married with Chinese citzens, Here is the list of documents required for the PR application.

    • 中国公民或者在中国获得永久居留资格的外国人的配偶，申请时及申请之日前，婚姻关系存续满五年、在中国连续居留满五年、每年在中国居留不少于九个月、有稳定生活保障和住所、遵守中国法律、身体健康、无犯罪记录的外国人，可以申请永久居留。

For expats who are married to a chinese  if you are married for more than five years, and stay in China continuously for five years, and each year acutally  lived in China for more than nine months, With stable accomondation, you can apply for the PR.

2. Working in China for more than four years, and with work permit and tax payment records.

    • 外国人在北京已连续工作满4年，且4年内每年在中国境内实际居住累计不少于6个月；申请时及申请之日前连续4年工资性年收入（税前）50万元人民币以上；每年缴纳个人所得税10万元人民币以上；经现工作单位推荐，可以申请办理外国人永久居留证。

if you have been working in Beijing for more than 4 years, and stay each year more than 6 months, In the 4 years working, your gross income is more than half million RMB, and tax paid is more than 100,000RMB, you can apply for the PR.

If you would like to have more information, please email to [email protected] .

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!

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Documents Required for China Work Permit and Visa Renewal

After the Chinese new year, we’d better plan for the China work permit and visa renewal process right now to avoid the affection of your holiday trip. Based on the new system and policy it may cost 4-6 weeks to finish all the process.
There’s two steps for the renewal process:
1. Work Permit Renewal, cost 2-4 weeks, documents required:
For applicant,
a. Passport copy, current resident permit page copy, last entry stamp page copy
b. Work permit card copy(front and back page)
c. Applicant’s latest labor contract
(need to show the exact position, contract period, work content, how long work in China every year, must in Chinese version, please download via VisaOfChina official WeChat)
d. * Individual Income Tax (IIT) report

For employer,
Employer company need to register on the Foreigner Work Permit system (http://fwp.safea.gov.cn) and status shows normal.
[IMPORTANT NOTE] For work permit renewal, the labor bureau requires to make application 30 days before expired date.
This step need the original passport to show to the labor bureau counter (not keep).
2. Work Visa Renewal, 7 working days, documents required

a. Original passport
(need to keep in immigration bureau for 7 working days (Shanghai), for Beijing and other cities need to keep for 10-15 working days)
b. Temporary police registration resident paper(see samples via VisaOfChina official WeChat)
c. Work permit card
d. Original company business license
e. Application letter (download sample via VisaOfChina official WeChat)
f. For 2/3/5 years work visa application requires extral documents (Please talk to VisaOfChina)

For further information, please check VisaOfChina official WeChat or just leave your message here.

You may interested in the below topics:
IIT(Individual Income Tax) Caculator
How IIT(Individual Income Tax) Affect Your Visa Application
How to apply 2/3/4/5 years work visa
What is the difference of Z Visa and Work Visa?
How to transfer work permit if you want to change job

对于刚刚度过的春节假期，我们建议您提前计划申请您的中国工作许可及工作签证以避免影响您的假期行程，基于当前的政策和系统，整个更新流程需要4-6周时间，所需材料请见以上英文版列表。

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!

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New E-commerce Law: how will it impact Daigou and WeChat stores?

We received many questions from clients and readers asking about the effects of the new e-commerce regulation in China that became effective from January 1st, 2019. Many worry that individuals will no longer be able to run WeChat stores anymore and that daigous will no longer operate their Taobao stores.

We look into the regulation and here is the summary:

  • You will need to provide a business license in order to operate an online store (including Taobao, WeChat store, and Weidian), with few exceptions including “low-value transaction” as stated in Article 10
  • The lawmaker has not determined the exact amount of “low-value” thus until the threshold is announced, all individual stores can operate normally as before
  • Individuals can still register a personal WeChat store/Taobao store

An (unofficial) English translation of the original E-Commerce Law of the People’s Republic of China can be downloaded here: https://www.izvoznookno.si/Dokumenti/E-commerce%20Law%20of%20the%20People%E2%80%99s%20Republic%20of%20China.pdf

Official Chinese version: http://www.npc.gov.cn/npc/xinwen/2018-08/31/content_2060172.htm

Major e-commerce platforms have made announcements and policy updates after the regulation.

Taobao

Taobao summarized a list of Q&A on the e-commerce regulation for its merchants.

Q: The new regulation requires stores to have “entity registration”. What does “entity registration” mean?

A: Entity registration means a business license issued by the State Administration for Industry and Commerce. The following individuals will not need to provide a business license:

  1. Sell agricultural sideline products produced by themselves
  2. Sell household handicraft products produced by themselves
  3. Use their own skills to engage in public convenience services
  4. Occasional and low-value transactions “零星小额交易” for which no license is required by the law
  5. Store for which no registration is required by laws or administrative regulations

Law registration has not define the amount for “low-value transaction”. Thus until further notice, all the individual Taobao stores will continue to operate as before.

Q: Can individual still open Taobao stores?

A: Yes, you can create a Taobao store as longe as you meet the above requirements. If you wish to upgrade individual store to business store, you can apply via this site: https://transfer.taobao.com/unitrans/index.htm#/subjectchange

Q: Will Taobao close any individual stores?

A: No, as long as the store meets the regulation (and thus as long as “low-value transactions” are not made more explicit), Taobao will not close the stores

The original Chinese version of the Q&A is here: https://rule.taobao.com/detail-9302.htm?spm=a21pp.8204670.0.0.65565b71P9TebA&tag=self

Pinduoduo

Pinduoduo will be able to provide all of its merchants with an Internet Operation Location Certificate (网络经营场所证明). Individuals could use this certificate at the registration office to acquire a business license.

Tmall

The new e-commerce regulation does not impact the current tax rate. The operators of Tmall stores shall display their business license on Tmall page.

JD.COM

JD made an adjustment of the merchant exit announcement in compliance to Article 16. According to the new regulation, if merchants wish to terminate their e-commerce operation, they need to announce it 30 days in advance on a conspicuous place of their homepage.

Kuaishou

Kuaishou on the other hand is testing e-commerce features to enable content creators to sell their products. The Kuaishou e-commerce plan is called “燎原计划”, a plan to test driving traffic to Taobao stores, WeChat Mini Program stores and native Kuaishou stores.

The first categories will be F&B, cosmetics, daily merchandise, pet products, and clothes. Kuaishou also prohibits certain categories to sell, including health supplements, mother & baby products, children’s clothing, alcohol, etc.

A leaked internal document from Kuaishou indicates one campaign sold 1.5k of “quantum socks” worth 94k RMB in a video with 14k visitors. It’s a 10% view-to-purchase conversion rate. Quantum socks are a type of socks that claim to bring benefits such as killing bacteria, erase static electricity, massage feet and keep them warm.

Douyin

Douyin took away its requirement of having 8,000 followers in order to open a store. Now Douyin account could create a store to sell on Douyin. We wrote an article on how to create a Douyin store here.

Other regulatory explanations

CEO of China E-Law, Alamusi, also announced his understanding of the new e-commerce:

  1. The purpose of the new e-commerce regulation is to incentivize the development of e-commerce. Its purpose is not to clean up individual WeChat stores, Daigous and Taobao store.
  2. The new regulation does not require all the individuals to apply for a business license, and neither does it require the existing stores to stop operation.
  3. The “low-value” requirement is still up to the lawmaker to define.
  4. The new regulation does not require all transactions to provide Fapiao.
  5. The e-commerce regulation does not stop or limit all Daigou sales. Many Daigous operate through a cross-border version of Taobao called Taobao Worldwide (淘宝全球购). The regulation only concerns individuals who operates the business within China, it does not apply to individuals who operates outside of China. The document 《关于完善跨境电子商务零售进口监管有关工作的通知》released November 28th, 2018 does have a clause indicating that one “cannot resell the products that are purchased via a cross-border e-commerce channel”, but this does not prevent most Daigou’s who are bringing products through customs in their luggage.
  6. This new regulation applies to all channels, including WeChat store, live-streaming, and short video platforms. It excludes financial products, news information, audio and video content, and other types of culture related digital content as stated in the 2nd point of the regulation.

Conclusion

The new e-commerce law of China is a step forward toward a more regulated and stable environment for China’s e-commerce development.

The new regulation however contains a lot of ambiguous points such as the “low-value transactions” threshold. The real impact of this regulation will depend on how and to which extent it will be enforced in the coming years.

This post is excerpted from the Public Wechat WalktheChat, the original title has not been changed.

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!

Posted on by Delta Wish

China Work Permit – How to apply Non-criminal Record Report

As the new China Work Permit policy started on 1st April 2017, it’s become more troublesome and strict to apply for Work Permit. Some documents cost much more time than it did before, notarized diploma and Non-criminal record for instance. Both need to be notarized by either China embassy or your own country embassy based in China.

Here is a guidance for you on how to prepare these documents.

(Some of the cases no need Non-crinimal record or diploma, please contract us to confirm)

Non-crimina lrecord report:

1. If you are in China, contact your own country embassy based in China to see whether they offer the service. As of now, only a few embassies offer notary service. The Non-criminal record from your own country embassy can be used directly.

2. For those who are applying outside of China then:

Step 1. You need to go back to your own country(or ask yourfriend or relatives) to apply from local police station or citizen administration bureau.

Step 2. Go to China Embassy and get it notarized. Usually it’s easier to get the official notarized record when you have a translated Chinese version.

Some China Embassy only accept the documents from the local notary bureau, if so, you have to have the documents from police station or citizen administration bureau to be notarized at local notary bureau first, then go to the China Embassy to be notarized again.

3. In some countries, local notary bureau offers Non-criminal record service and China Embassy notary together, then you only need to apply there without going any other place.

4. Non-criminal record is only acceptable when it is issued or notarized from China Embassy or your own country Embassy based in China.

(Click the bottom QR code and follow us to check more latest policy and guidance)

由于2017年4月1日的新的工作许可政策实施，新的申请比以前更加复杂和严格，很所申请者需要提供无犯罪记录证明和文凭公证，请见以下申请无犯罪记录的一些步骤和建议：

（某些情况下申请者无须提供无犯罪记录证明，请联系我们确认）

1. 如果你在中国，请联系你们国家的领事馆看他们是否提供此类服务，目前只有部分国家的领事馆提供相关服务，如果可以，那么你们国家的领事馆出具的文件可以在这里直接使用

2. 如果你在中国以外地区，那么你需要

步骤.1 你需要回到你自己的国家（或者让你的亲朋好友）向你们国家当地的公安局或者市民行政局申请无犯罪记录证明。

步骤. 2 拿到当地公安局或者市民新证据的文件后去当地的中国大使馆公证，通常情况下，准备一份中文翻译件将会更容易拿到公证。有些国家的中国领事馆仅接受当地公证处的文件，在此情况下，在拿到当地公安局或者市民行政局的文件需要去当地的公证处公证然后再去中国领事馆公证。

3. 有些国家的当地公证处会提供一整套的无犯罪记录证明和使馆公证服务，在此情况下你就只需要在一个部门申请办理就可以。

4. 无犯罪记录证明只有经过中国领事馆或者你们国家驻中国的领事馆公证之后才可用。

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!

Posted on by Delta Wish

Diploma of University List Can Be Authenticated in China

As the new work permit policy start from 2017, it requires applicant to submit the original diploma and its notarization or authentication report. The notarization must be legalized by the Embassy(either China Embassy or your country Embassy in China). Apart from this, you can also provide the diploma authentication report which need to be applied from special authentication bureau.

As there’s many schools and Universities on the world, only the countries who made the diploma mutual recognition ageement with China and authentication system open for check are available.

The diploma of the below country University list(Click the country name to check the detailed list) can be authenticated here:

Algeria
Australia
Austria
Belarus
Belgium
Bulgaria
Cameroon
Canada
Costa Rica
Croatia
Cuba
Cyprus
Czech
Republic
Denmark
Egypt
Finland
France
Germany
Greece
Grenada
Hungry
Ireland
Israel
Italy
Jamaica
Japan
Kyrgyzstan
Latvia
Liechtenstein
Luxembourg
Malaysia
Malta
Mauritius
Monaco
Netherland
New Zealand
Norway
Philippines
Poland
Portugal
Romania
Russia
Singapore
Slovenia
South Africa
South
Korea
Spain
Sri Lanka
Sweden
Swiss
Thailand
UK
Ukraine
US

If your school is not on the list, you have to do it on the local notary bureau and legalized by the China Embassy or your country Embassy in China.

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!

Posted on by Delta Wish

China Improve Visa Exemption Policy for Hainan Free Trade Port

To promote Hainan Island reform to build Free Trade Port, the China National Immigration Bureau(this bureau was set up on 2nd April 2018) announced a new visa exemption policy this morning for 59 country passport holders:

Europe
UK France Germany
Italy Austria Finland
Sweden Spain Belgium
Greece Hungary Iceland
Malta Poland Luxemburg
Slovakia Slovenia Macedonia
Romania Serbia Montenegro
Croatia Ireland Albania
Belarus Monaco Portugal
Norway Ukraine Netherland
Russia Darmark Bulgaria
Czech Estonia Cyprus
Latvia Lithuania
Bosnia and Herzegovina
America
US Canada Chile
Brazil Mexico Argentina
Asia
Australia Malaysia Singapore
Japan Brunei New Zealand
Thailand Philippines Kazakhstan
Qatar UAE South Korea
Indonesia Sri Lanka
The new visa Exemption Policy start from 1st May, the above country passport holder would be able to enter Hainan without visa for 30 days.
As a famous vacation island, Hainan issued some visa exemption for some of the country with tour group before, the big change this time is:
1. All the above mentioned country passport holders would enter Hainan for free visa individually, no need tour group.
2. The stay duration will be for 30 days instead of 14 days

China government promise to be opening up to drive forward the reform for economy, more and more countries would be free visa to enter China in future. Up to now, most of the above countries can enter all China with free visa for 7 days if they show the 3rd country flight ticket.

These country passport holders can enter all China with visa exemption without any terms:

Country Stay Duration
Singapore 14 days
Japan 14 days
Mongolia 30 days
Serbia 30 days
Montenegro 30 days
Ecuador 30 days
Mauritius 30 days
Tonga 30 days
Barbados 30 days
U.A.E. 30 days
Seychelles 30 days
San Marino 30 days

China government is going to build Hainan be a global Free Trade Port, with the new visa exemption policy, more people would enter Hainan easily for tour or investment.

Contact NBSOLVE by scanning the QR Code below if you have any questions, we will give you some advice.

如您有任何疑问请随时联系我们，谢谢!