Company News

As part of China’s efforts to curb energy consumption and foster greener growth, the State Council released the “12th Five-Year Plan for Energy Development (guofa [2013] No. 2, hereinafter referred to as the ‘Plan’)” on January 1, 2013. The Plan summarizes China’s major achievements in energy development during the 11th Five-Year Plan (2006 to 2010) and sets out key development objectives for the industry during the 12th Five-Year Plan. Detailed information can be found below.

The Supreme People’s Court of China released its “Interpretation on Several Issues Regarding the Application of Law in the Trial of Cases Involving Labor Disputes (IV) (fashi [2013] No. 4, hereinafter referred to as the ‘Interpretation’)” on January 18, 2013, clarifying several issues concerning the application of laws when labor disputes are brought to trial. Detailed information can be found below.

China’s first national standard on personal information protection, namely the “Guideline on Information Security Technologies for the Protection of Personal Information in Public and Commercial Service Information Systems (hereinafter referred to as the ‘Guideline’),” came into effect on February 1, 2013. The Guideline, which was officially released last November, is the first of its kind in China.

To clarify issues regarding the determination of value-added tax (VAT) in direct selling, China’s State Administration of Taxation released the “Announcement on Issues Concerning the Determination of Value-Added Tax for Direct Selling Enterprises (Announcement [2013] No. 5, hereinafter referred to as ‘Announcement’)” on January 17, 2013. Detailed information can be found below.

The Shenzhen Qianhai Administration Bureau released the “Interim Measures on Individual Income Tax Subsidies for Overseas High-End Talent” on December 24, 2012, which provides that high caliber foreign professionals working in major industries in Qianhai will receive subsidies from the Shenzhen government.

Jan. 29 – With the aim to modernize Hong Kong’s Company Law and further enhance the region’s status as a major international business and financial center, a comprehensive rewrite to the existing Companies Ordinance was initiated in mid-2006. This long and arduous process began to bear fruit on July 12, 2012 as the Companies Bill was eventually passed by the Hong Kong Legislative Council.

Jan. 23 – Shenzhen’s Social Insurance Bureau recently released a circular concerning social insurance payments in the city, which came into effect from January 1, 2013. The circular provides new policies regarding the payment of pension insurance and unemployment insurance in Shenzhen, and cancels over-age pension insurance contributions for individuals with Shenzhen hukou.

Jan. 16 – From January 1, 2013, foreign visitors in China from 45 countries can enjoy a 72 hour visa-free stay in Beijing and Shanghai.

Jan. 15 – The Supreme People’s Court of China released the “Interpretations on Several Issues Concerning the ‘Law of the People’s Republic of China on the Application of Laws to Foreign-Related Civil Relations’ (I) (fashi [2012] No. 24)” on December 28, 2012, which came into effect on January 7, 2013. Detailed information can be found below.

The Standing Committee of the Fifth People’s Congress of Shenzhen Municipality passed the “Shenzhen Special Economic Zone Population and Family Planning Regulations (hereinafter referred to as ‘Regulation’)” on October 30, 2012, which came into effect on January 1, 2013. The Regulation is the first local law in China that clarifies the issue of violating the State one-child policy by giving birth outside of Mainland China.