Anti-Monopoly Law and Its Implications for Foreign Companies in China

On August 30 2007, after more than a decade of legislative efforts, the Standing Committee of the National People＇s Congress （NPC）, China＇s top legislature, completed its third official reading of the draft Anti-monopoly Law （AML） and formally adopted it as thecountry＇s first comprehensive competition law. The Anti-monopoly Law will become effective on 1 August 2008, to guard against monopolistic conduct, safeguard competition, improve economic efficiency, protect public and consumer interests, and promote the healthy development of the socialist market economy. After 13 years of debate, the final adoption of the AML marks an important step toward an effective competition regime in China＇s move toward a market economy. This article introduces the history of China＇s Anti-monopoly Law, summarizes some of its key provisions, highlights some of the major improvements on the June 2007 draft, and discusses the major implications for foreign companies doing business in China.     

＂Made in China＂ at the Crossroads in 2009

In the short run, China＇s export is a usable weather vane for the health of the global economy and the strength of consumer demand. A slump in export to some extent means economic depression elsewhere. Besides, the development direction choices of manufacturer will be pivotal to China＇s upgrade from export-oriented economy to a more well-rounded economy. The immediate threat to this upgrade is from the global slowdown that Chinese exports declined in November last year heralds tough times in 2009.     

英文摘要

China＇s Top 200 Foreign Traders in 2008
The 2008 List of China＇s Top 200 Importers and Exporters has been issued by China Customs Monthly and the Department of Policy and Legal Affairs, the General Administration of Customs of the People＇s Republic of China.     

Profile of the 103rd Canton Fair

Approved by the Ministry of Commerce of the People＇s Republic of China, the 103rd Canton Fair will be held simultaneously in Pazhou Complex and Liuhua Complex during 15-20 and 25-30 April 2008 in Guangzhou, China. We estimate that nearly 200,000 buyers from over 200 countries and regions will gather in Guangzhou to exchange information and procure products. Over 150 of worlds top 250 retailers are expected to attend the Canton Fair to make procurement.     

Detailed Rules for Implementing the Interim Regulations of the People＇s Republic of China on Value-added Tax

Since January 1, 2009, China＇s taxation on value-added tax, consumption tax and business tax are adjusted by the Ministry of Finance and the State Administration of Taxation. China ＇s Foreign Trade will release the regulations in detail.     

＂I Won＇t Invest in China＇s Real Estate＂ -- Can Behavioral Economics Save the Capital Bubble？

＂I cannot see clearly when the real estate bubble in China will burst. However, there is certainty that housing prices will swiftly fall, and China can learn the lesson from the 1980s＇ real estate market in Japan＂ said Professor Robert.J.Shiller, ＂I don＇t want to put my judgment as a foreigner on the Chinese people, however, the housing price is obviously too high in some big cities. My suggestion is that since income is in an overall down- ward trend, the housing price should be much lower. Although income will grow as time goes by, the value of Chinese houses should not reach that of London and New York for another 20 to 30 years. Currently, the soaring housing price in China is like a bubble. Personally, I will definitely not buy or invest in property in China.＂     

Italy and China： Trade, Culture and History——An Interview with Antonino Laspina, Commissioner of the Italian Trade Commission＇s Beijing office

Italy is a modern, industrialized nation which has managed to preserve its traditional culture intact. It is China＇s old friend, and its long-time trade partner. In 2006, the Year of Italy in China, various measures were taken to broaden the scope of China and Italy＇s relationship, not only in terms of economic cooperation and trade, but also concerning historical and cultural awareness. What sort of new opportunities for cooperation will we be seeing in the new year？ China＇s Foreign Trade interviewed Antonino Laspina, Commissioner of the Italian Trade Commission＇s Beijing office, about this question and more.     

Encouraged Projects for Foreign Investment in China

According to official statistics, the population of foreign residents in China amounted to above 320 thousand by the end of last year. Most of them are working for institutions and enterprises in China. They are an undividable part of Chinas growing economy. To better promote business exchange between China and the world, and to better serve those foreign friends in China who contribute for China＇s international exchange, China＇s Foreign Trade opens this special ＂Foreigner＇s Guidance＂ column, supplying useful information for foreign readers mainly on investment and trade in China. Each issue of the Magazine will focus on different aspect, from where business and life could be easier to start. We offer more than guidance!     

英文概要

Special Report Spring for Urban Complex？
The development and operation of urban complex will be the main stream in the process of China＇s future urban development that lead by all levels of government. In other words ,China＇s complex competition is a sign of China＇s future urban development competition.     

Measures of the Customs of the People＇s Republic of China for the Administration of Centralized Declaration of Import and Export Goods

In addition, new measures of centralized declaration of import and export goods in China＇s Customs will be taken from this May. Therefore, China＇s Foreign Trade offers you the latest information.     

Chile：Close Tie between China and Latin America

Chile was the first country in South America to establish a diplomatic relationship with China more than 38 years ago.Since then,with the bilateral free trade agreement in place,Chile has become China＇s second-largest trading partner in Latin America,and China is currently Chile＇s largest trading partner in the world.In April of 2008,China and Chile signed the Supplementary Agreement on Trade in Services of the Free Trade Agreement between the Government of the People＇s Republic of China and the Government of the Republic of Chile in Sanya, Hainan province.This was a historical milestone marking the longstanding relationship between China and Chile.To learn more about this bilateral relationship,China＇s Foreign Trade invited Mr.Mario I.Artaza,Director Commercial Office Trade Representative at the Beijing Embassy of Chile in China,to give us his point of view on the current business and economic environment that exists between these two countries.     

Construction starts a China＇s largest yacht dock

China Life Insurance Co., Ltd, the country＇s largest life insurer, will inject RMB 8 billion in three highway construction projects in the northern city of Tianjin, in line with the insurer＇s plan to invest in domestic infrastructure projects in the second half of 2008.     

Spirit of a Centurial Aged Man

Yuan Geng, who created the Shekou Mode, is a pioneer in 30 years＇ history of China opening to the foreign, and a practicer of the policy by Deng Xiaoping of ＂Shenzhen Special Zone should break a way for China＂. The success of Shekou Mode provided a vane to the rapid development of economic zones and development zones in China, and the ＂growing up＂ of China. Referring to Yuan Geng, some say he is a capitalist, some say he is pioneer, and some say he is a star of reform, and so on. To carve a real picture let＇s go near to him and share the valuable memories.     

Weaving A Global Network

in recent years, private enterprises have increasingly become a major economic force in China. As such businesses grow, the revenue from the international business that they conduct grows accordingly. China＇s private enterprises are going global. Due to the world＇s economic globalizatlon and China＇s entry into the WTO, both domestic and international competition has come to be more intensified, which to some extent has provided a favorable environment for the international business operations of China＇s private enterprises. A document entitled Opinions of the State Council on Encouraging, Supporting and Guiding the Development of the Non-Public Ownership Economy, Including Individual Ownership and Private Investment, issued in February 2005, explicitly supports the exploration of foreign markets by private enterpris- es. It is the definitive guide for private business in China, and thus has been a driving force behind private enterprises to start international business.     

How Do China＇s Economic Policies Work？

All the indicators of China＇s economic data in the first half of 2008 have shown that the fast growth is not going to translate into overheating. But given the complicated economic .situation now, it remains a headache to maintain a steady economic growth. What challenges will there be in China＇s economic development in the second half of this year＇？ And what policy would be the key to the problems＇？     

Trade Statistics：Cotton Yarn ＆ Fabnc in Feb.

Cotton is the single most important textile fiber in the world, accounting for nearly 40 percent of total world fiber production. While some 80 countries from around the globe produce cotton, the United States, China, and India together provide over half the world＇s cotton. This monthly update provides official CNTAC （China National Textile ＆ Apparel Council ） data on China import and export of cotton yarn and cotton fabric, to show a general profile of China＇s foreign trade in current textile industry.     

When Two Taxes Are United, A Better Business Environment Is Expected

When China＇s status of great economic country has been recognized, the proposal of uniting the domestic and foreign enterprises＇ income taxes into one has been put on the agenda. Hot discussion has been triggered on this overture because the interests of different sides will be affected by the reform if it is launched. The article analyzes the setback of the current system of seperating the two taxes and puts forward the idea that the unity of Two Taxes is unavoidably to be conducted because it will be benefit for China＇s reality, and be in line with international economic regulation.     

Trilogy of China＇s Banking

Banks of China will face declining profit rate and slightly increasing non-performing loans ratio in a short term during 2009, but government policies will reduce the negative impact of financial crisis, and China＇s financial environment is still relatively safe in a global comparison.     

3G ＆ FMC,Future Hope for Telecom？

In the telecom industry of China, the growth speed will show slight downhill in 2009. That is mainly caused by the mature market penetration and tough competition amongst 3 full-service operators. After almost 6 years＇ swift growth, a＇s telecom industry growth speed is slowing down （lower China＇s telecom industry growth speed is slowing down （lower than GDP growth from 2007） due to mature market penetration. In 2009, the maintaining of customer resource will be the major goal for all the operators, and service ＆ price is their most important competition tool. Keeping assets value is also vital to the industry. The leader of China＇s telecom industry, China Mobile, makes the revenue assurance as one of their most important concern in the following days.     

Changes in China＇s Trade Policy？

＂We will steadily develop foreign trade. The main issues are to exploit new markets, adjust the trade structure and promote trade balance＂, Chinese Premier Wen Jiabao delivered a government work report at the opening meeting of the annual full session of the National People＇s Congress （NPC）, China＇s top legislature, which started in Beijing on March 5, declaring a new development path of Chinese foreign trade in 2010. As one of the biggest trading powers in the world, this will bring great influence on world trade situation and the trade relationship between China and its main trade fellows such as the USA and the EU.