Kate Phylis PhD

Outline

Doing Business Analysis

· Macro issues in China business environment

· Legal framework

-China's legislation includes laws promulgated by the National People's Congress (NPC) and its Standing Committee, regulations issued by the State Council and its relevant departments, as well as the local regulation of local People's Congress, minority autonomous regions, special economic zones and special administrative regions.

-Policymaking and administration can at times be highly centralized and uniform in nature, and at others highly decentralized and diverse.

· Ease of entry into the market

-Consultations

                       -Government

-Client Connection

-Parliamentarians

-Access to Information

· Rules and regulations applying to foreign-owned firms

- ownership rules, repatriation of profits

· Micro-level in China business environment

· Ease of starting a business

-China made starting a business easier by introducing a single form to obtain a business license, organization code and tax registration. This reform applies to both Shanghai and Beijing.(2017)

· Registering property

· Dealing with construction permits

-China simplified the process of obtaining a construction permit by streamlining and centralizing preconstruction approvals.(2013)

· Getting electricity

-Regulations given by government

· Employing workers

-Labor Market Regulation: China established paid annual leave and introduced priority rules for redundancy dismissals or layoffs.(2009)

· Paying taxes

-China made paying taxes easier for companies by enhancing the electronic system for filing and paying taxes and adopting new communication channels within its taxpayer service, changes applying to both Beijing and Shanghai.

-China made paying taxes less costly for companies in Shanghai by reducing the social security contribution rate(2015)

· Legal and practical issues are related to the business environment

· Getting Credit

-China improved access to credit information by starting to report payment histories from utility companies and providing credit scores to banks and financial institutions. This reform applies to both Shanghai and Beijing.

· Protecting investors

-China was ranked the world's third largest FDI recipient after United States and the UK. The country's economy was ranked the second most attractive to multinational companies for 2017-2019, after the United States.

· Enforcing contracts

-China made enforcing contracts easier by amending its civil procedure code to streamline and speed up all court proceedings.(2014)

· Resolving insolvency

-China enhanced its insolvency process through a new enterprise bankruptcy law introducing reorganization procedures, allowing for the formation of creditors’ committees, granting rights to secured creditors and establishing a role for professional bankruptcy administrators.(2008)

Source: http://www.doingbusiness.org/Reforms/Overview/Economy/china

Source: http://projects.worldbank.org/P132748/establish-mv-system-energy-efficiency-china?lang=en

Source: http://reports.weforum.org/global-competitiveness-index-2017-2018/countryeconomy-profiles/#economy=CHN

Source: http://unctad.org/en/PublicationsLibrary/wir2017_en.pdf?lien_externe_oui=Continue

Source: https://www.out-law.com/en/topics/projects--construction/community-infrastructure1/doing-business-in-china-part-1---overview/

Source: https://www.loc.gov/law/help/real-property-law/china.php