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Catalogue of Industries to Encourage Foreign Investment (2019 Edition)

Catalogue of industries to encourage foreign investment
Catalogue of industries to encourage foreign investment

Major additions or modifications to the 2019 edition of the catalog include:

We will encourage foreign investment in the high-quality development of the manufacturing industry

In the electronic information industry, 5G core components, etchers for integrated circuits, chip packaging equipment, cloud computing equipment and other items have been added.

In the equipment manufacturing industry, we added or modified items such as key components for industrial robots, new energy vehicles and smart cars.

In the modern pharmaceutical industry, new items such as key raw materials for cell therapy drugs and products for large-scale cell culture have been added.

In the new material industry, new or modified aerospace materials, monocrystalline silicon, large silicon chips and other items.

We will encourage foreign investment in producer services

In the field of business services, add or modify engineering consulting, accounting, taxation, inspection, testing and certification services.

In the field of trade circulation, new or modified cold chain logistics, e-commerce, special railway lines and other items.

In the field of technical services, items such as artificial intelligence, clean production, carbon capture and circular economy were added.

The catalogue of the central and western regions further increased the number of labor-intensive, advanced and applicable technology industries and supporting facilities, and increased support to the central and western regions for the transfer of foreign-funded industries:

In yunnan, Inner Mongolia, hunan and other provinces with characteristics of agricultural resources, labor advantages, the addition or modification of agricultural products processing, textile clothing, furniture manufacturing and other items.

In anhui, sichuan, shaanxi and other electronic industry clusters to speed up the development of provinces new general integrated circuits, tablets, communication terminals and other items.

In henan, hunan and other provinces with dense transportation and logistics network, logistics storage facilities and automobile filling stations were added.

In charge of the national development and reform commission, said that the catalogue of encouraged foreign investment industrial (2019 edition) “in keep encouraging foreign investment policy continuity, stability, on the basis of further expanding the scope of the encouraged foreign investment, promoting foreign investment in modern agriculture, advanced manufacturing, new and high technology, energy conservation, environmental protection, modern service industry in areas such as investment, promoting foreign investment to optimize the regional layout, better play to foreign investment in China’s industrial development, technological progress, structural optimization of the positive role.

Catalogue of industries to encourage foreign investment (2019 edition) is an important policy to promote foreign investment in China.Foreign investment projects that belong to the catalogue of industries to encourage foreign investment (2019 edition) may enjoy preferential treatment in taxation, land, etc. in accordance with laws, administrative regulations or provisions of the State Council.


Public notice on offering free official seal making service in Shanghai


From the date of publication of this notice, free official seal making service is to be offered for newly registered enterprises in Shanghai. The newly registered enterprises which choose to make free official seals via the IRS system (http://yct.sh.gov.cn/), can claim the printed paper license, official seals and invoices at the Integrated Registration Service Center (IRSC)in district Administration Service Centers through one single window. The set of 4 official seals are made of basic texture, including the official name seal of the enterprise, the seal for finance affairs, the seal for invoices and the seal of the legal representative. The set of official seals are offered by district Administration Service Centers for free.

Shanghai Administration for Market Regulation

Shanghai Public Security Bureau

April 30, 2019


What position is a supervisor?

A supervisor is a member of the permanent supervisory body of the company, also known as a “supervisor”, who is responsible for supervising the financial situation of the company, the performance of the duties of the senior management of the company, and other supervisory duties prescribed by the articles of association of the company.In order to prevent the board of directors and the manager from abusing their power and damaging the interests of the company and shareholders, supervisors need to elect such special supervision organs at the shareholders’ general meeting to exercise supervision functions on behalf of the shareholders’ general meeting.

What position is a supervisor

Usually at least one member of the board of supervisors shall be a shareholder and have a domicile in China.A supervisor shall not concurrently be a director or manager.The term of office of a supervisor is generally shorter than that of a director.If the supervisor fails to fill the vacancy for any reason, he shall call a by-election of shareholders’ meeting.The remuneration of supervisors, if the articles of association have not been decided, shall be decided by the general meeting of shareholders.

Immediate superior: chairman of supervisor.

Job nature: responsible for the supervision, inspection and assessment of the whole company.

Management authority: entrusted by the chairman of the board of supervisors, exercise the authority of supervision, inspection and assessment of the whole company, and undertake the obligation of implementing the company’s rules and regulations, management regulations and work instructions

The removal of a supervisor is usually due to the following reasons: Resolutions of the general meeting of shareholders; Transfer of shares; Resignation; Others, such as death, company dissolution, etc.

Legal basis: according to the second paragraph of article 51 of the company law, “the board of supervisors shall include representatives of shareholders and appropriately proportioned representatives of employees of the company, among which the proportion of representatives of employees shall not be less than one third. The specific proportion shall be stipulated by the articles of association of the company. The staff and workers’ representatives on the board of supervisors shall be elected by the staff and workers of the company through the staff and workers’ congress, the staff and workers’ congress or any other form of democratic election.”

Tip: a Chinese supervisor shall provide the ID card original to the registration office for authentication. A foreign supervisor just needs to provide a passport copy.


How can you save your LinkedIn?

How can you save your LinkedIn?

This article was written for those who haven’t gotten what they had expected from LinkedIn, so maybe it’s not written for you, if yes, please just ignore it to save your time.

I guess the main purposes that people register and use LinkedIn are as following.
1. Business development.
2. Marketing and advertising.
3. Information gathering.
4. Others.

To the most of the users, the first one maybe the key one. Then 3 years passed when you had more than at least 500 contacts in this website, however, not a single one business opportunity came from them, you need to face the fact, your LinkedIn is ill, there is something that must be done to change this, otherwise it’ll be a hole to lose your time.

The illness comes from the reasons below probably.
1. It didn’t match very well, such as industrials, markets and so on.
2. Lack of understanding, such as the background of each other’s company.
3. Lack of trust.

I think the last one is the key.

Trust is important than anything else between people, especially those who come from different counties and cultures, if they want to do something together. You can’t say that you are successful in China if few people here trust you.

If you come to China as a foreigner, but only want to do business with the compatriots, I have to say, your target market and profit will be very limited compared with the local market.

How to build trust among the different cultures and hobbits? I think the main points are as following.
1. Be sincere, be real.
2. Relax.
3. Appropriate ways.
4. Right contents.
5. Good media.

Of course there should be more, let’s discuss how to make it in China. As a business service provider to foreign entrepreneurs in the past 12 years, I’d like to share my points of views and the way of thinking as a normal Chinese people, that could be helpful to you to understand the local society.

1. Be sincere, be real.
You won’t be always showing one side and hiding other sides. For example, you can’t just talk about the advantages of your product or service, but ignore the disadvantages or the limits. Everybody know that you can’t make the shoes that fit everybody’s feet. Hiding makes you looks timid and tricky, of course, a little bit foolish.
If you can talk about some difficulties that you are facing, or happened to you, people will pay more attention, because this more real. Or you can just ask for help, tell clearly what solutions you have tried but failed, trust me, we’re all ready to help.

2. Relax yourself.
Sometimes you don’t need to be that solemn, you can use some skills, speak in an easy and humorous way, and then people will listen to you and spend time to understand you.

3. Appropriate ways.
You may give 10% trust at most to the contents in a letter or article, the condition is that everything in the letter is perfect and professional. I usually delete 99.9% unsolicited emails.
If you got a phone call, if it sounds good and professional, you probably will give 30% trust, no more.
If you watched a video, it may rise to 50% or even more. The reason why the confidence levels are different depends on how much information we get. More information or details help us to make judgments, that’s it. So the best way of communication to get trust is a video, besides meeting face to face.
It’s far more difficult than you think to lie and hide while showing your face.

4. Right contents. (In a video)
Firstly of all, you should know what kind of contents are now allowed, such as religion, politics and so on, that’s important.
1) Self-introduction. Such as your name, job, internationality, habit, specialty, in which city are you living and so on.
2) What you can offer? What can you do with your specialty to help others?
3) What do you need? For example, if you are running a company in China, what’s your biggest challenge? Marketing strategy? Suppliers?
4) What’s your dream or ultimate aim? The answer of this question will help people to know in deeper level.
5) About your experience in China. You can tell a story that happened in China that influenced you greatly. I think the answer of this question should be attractive to most of Chinese people.

If you prepare seriously the answers of the questions above, and express in good style, you will get enough attention and trust.
We call this kind of video a name, an I-SEE-U video.

5. Good media.
There are various media in China, the most popular one is so-called New Media. The new media actually includes microblog, mobile APP, digital TV, SNS websites and so on. The features are as following.
1) Usually there is a mobile APP.
2) The contents are short, the videos inside are less than 3 minutes.
3) Combined with social behavior.
4) Focus on the verticalization of the target market.
5) Massive amount of traffic may happen any time.

Because Chinese people don’t have complete time now, the fragmentation of time changed everything, reading, learning, watching and more. The mobile is becoming the center of life. I guess it happened in many counties. Then how to choose the right media? The traditional process is as following.
1) Describe your audiences, find where they go for contents. Get a list.
2) Annalise the rules of the media in the list, produce and publish the contents.
3) Interacts with audiences.
4) Observation and optimization.

I have to say that it’s not easy, even to a professional team in China. But there is a chance. We started a project to help foreign people who are living in China to make study. If you can make a qualified I-SEE-U video, we will help to publish it in the most popular new media in China.

ISEEUTV--save your linkedin--new media in China

ISEEUTV–save your linkedin–new media in China

It’s free.
Check out more details of the project by searching the WeChat official account name “ISEEUTV”. You may make the video and use it in your page to save your LinkedIn.


8 not-to-do things in 2017 in China

Every evening you may probably check what you have done in the whole day and think, and tell yourself don’t do something again later, for example, don’t trust people that easily or spend your money that quickly. The lessons make you lose your money and time, so it’s a good habit to build a list of not-to-do in the New Year.

As a consultant that help foreign people to start the business in China, I have a list for the new comers.


Don’t register a company rashly, that should be the last thing you need to think about, because it’s much easier than before, some agents can do it free of charge.

The key is that are you sure you are ready? I usually will spend an hour with the visitors in my office, to answer their questions or discuss about the business plan or something, and I persuaded at least 20% of them no to start to set up a company in 2016. Because I don’t think they are ready. I don’t know if they know themselves enough, but I was sure they don’t know China.

Simply put, business venture in China isn’t a game. It’s a brutal war that only for the old soldiers.


Don’t think it easy to get investment in China. Yes, there are so many investment firms and lots of hot money in China, but forget them until you can prove something, for example, succeed in some areas or rapid growth of the number of customers.

Simply put, there is no typical VC in China who can give hand when you just have a BP.


Don’t choose the suppliers that can’t provide you VAT invoices. It’s been developed quickly on China’s regulatory system, if you can’t get the right purchase VAT invoices, the tax will kill anyone.


Don’t delay all kinds of payment or hide any income in your balance sheet. If you are running short of money, you should have a plan B that can turn things around instead of hoping the business of next month will be good. The fact is, it can’t happen because your situation is a small part of the whole mistake that you shouldn’t have made. The result is that the huge payable tax and fees will knock down your business quickly.


Don’t start a business without a deep market research. Once a Moroccan found me via my WeChat, he recommended argan oil as a good business in China. I simply searched in 1688.com and send him a screen shot below. 579 CNY per kg, the price changed his mind I guess.

I’m not saying that it can’t be a good business, the key is how you can sell instead of what you can sell.

Spend 10% time on the necessary research about your product or service, and the rest on how you can sell in China.


Don’t ignore the new tools such as WeChat. But don’t outsource this part easily because the most of the service providers in this field don’t know your business but to make your pages nicer. A right one should spend time on your company, product, pricing, market and many more, and then give you a workable plan with reasonable schedule to make things happen, to build up a new growth for your sales.


Don’t start to sell when you don’t have enough license. I have African customer who has good cosmetic product. But she made some by herself and sold via WeChat platform, I persuaded her to pull them off, because the product can’t be sold without the official backup in FDA system. Her brand will get hurt if the product will be found by FDA and be forced to pull off one day.


Don’t drink too much coffee, remember you are doing business in China, you need to have more tea with local people that can help you a lot.

Best wishes in 2017!


Overview of changes of regulations on foreign travel agency investment in China

As one of the earliest areas opened to overseas investments, travel industrial has achieved remarkable results since the the reform and opening-up policy in China. Certainly, because travel agency is the most important from of the industrial, China has opened the door very cautiously. There were 81 foreign invested travel agencies founded since 1998 in China, 73 of them were founded after China jointed WTO.

With the steps of the opening-up of China’s economy, the related regulations of the foreign investments on travel industrial have been changed almost every two or three years. From example, it’s possible to set up JV travel agency only in several national tourist vacation areas from 1993, up to 2009, the foreign invested travel agency has enjoyed the national treatment, even the Outbound tourism business has been opened in 2011.

Below are the comparisons of the changes of the regulations.

foreign travel agency regulations in China

A travel agency can ben considered as a consulting WFOE, that requests the investor to make a deposit of 200k CNY for service quality. In case a travel agency no longer engages in travel business, it may withdraw the quality deposit from the bank with a voucher issued by the travel administration.

In Shanghai, it’s not necessary to set up it in free trade zone.

Was told by one of my custmoers that there is a small domestic travel consutling company in Shanghai and it has more than 200 inbound tourist customers per month, quite good, what’s more, all the customers have been served by the local people without any certificates. Not trained with knowledge in the books but really grew up where they show to the foreign people. Intersting? Can’t wait to have a travel ageny of your own? It’s time!


144 hours visa-free police offered from 30th January in China

144 hours visa-free police offered to the people who is holding the joint ticket with fixed time and seat to the third counties and valid international traveling documentation from the 51 countries from 30th January in the airports in Shanghai, Nanjing and Hangzhou. The passing foreign people can choose to enter or leave from any ports of the sea, land and air in Shanghai, and airports in Nanjing and Hangzhou, they can stay in Shanghai, Jiangsu and Zhejiang province for 144 hours without a visa.

1. Which ports are available to the 144 hours visa-free police?
In Shanghai: Shanghai Pudong International Airport, Hongqiao International Airport, Shanghai Railway Station, Shanghai Port International Passenger Transportation Center, Wusong Kou International cruise port.
In Jiangsu Province: Nanjing Lukou International Airport.
In Zhejiang Province: Hangzhou Xiaoshan International Airport.

2. From which countries can people enjoy the 144 hours visa-free police?
The Schengen Agreement countries in Europe, a total of 24 : Austria, Belgium, the Czech republic, Denmark, Estonia, Finland, France, Germany, Greece, Hungary, Iceland, Italy, Latvia, Lithuania, Luxembourg, Malta, Netherlands, Poland, Portugal, Slovakia, Slovenia, Spain, Sweden, Switzerland.
The rest of Europe, a total of 13: Russia, the United Kingdom, Ireland, Cyprus, Bulgaria, Romania, Ukraine, Serbia, Croatia, Bosnia and Herzegovina, Montenegro, Albania, Macedonia.
Americas, a total of six: the United States, Canada, Brazil, Mexico, Argentina and Chile.
The Oceania countries, a total of 2: Australia, New Zealand.
The Asian countries, a total of six: South Korea, Japan, Singapore, Brunei, the United Arab Emirates, Qatar.

3. How about the process to apply for the papers of the 144 hours visa-free?
The qualified foreign people need to show the valid travel documents and the joint tickets with fixed time and seat to the third countries in 144 hours to the operators on duty of the transport, when they are going through the formalities abroad in order to go to the ports in the second item above. Then the person in charge of the transport should declare to the immigration station before the applicants arrive. The immigration station will handle formalities after the examination.

4. Where should the applicants handle the formalities who arrive in Shanghai ports?
There are special inspection passages in the entry and exit border inspection area, the qualified foreign passengers can go to the specified channel to handle the formalities.

5. Which are the necessary papers to handle the formalities for the 144 hours visa-free process?
Valid entry-exit document, joint ticket, entry-exit information form filled in advance and the inspection given by the border police.

6. How to calculate time of 144 hours?
Not more than 144 hours from zero ’o clock of the second day after the entry.

7. Is there any fees?


Company Annual Examination Is Over?

annual exam
The answer is YES!

The annual inspection system executed in China for long will be put to an end next month. SAIC (State Administration for Industry and Commerce) announced yesterday that the annual inspection process will be ceased from March 1st for the licensed companies as limited liability companies, joint stock companies, legal bodies of private companies, partnership business, individual proprietorship and their branches, foreign enterprises operating activities in China and other operating units.

According to the newly released Reform Plan of the Registration System of Registered Capital by the State Council, the annual inspection system of enterprises will be change


What is special about non-full-time labor?

Non-full-time labor refers to a form of labor for which the remuneration is generally calculated on hourly basis, the average working hours of a worker per day shall not be more than four hours and the cumulative working hours per week for the same employer shall not be more than 24 hours.
(1)The form of non-full-time labor insists in employers, but not the individuals. The employer and the non-full-time labor establish labor relationship, which is adjusted by the labor law and the labor contract law.
(2)The pay commissions of non-full-time labor is flexible, generally calculated on hourly basis.
(3)Both parties that use non-full-time labor may sign an oral agreement.
(4)Any worker that conducts non-full-time labor may conclude a labor contract with one employer or more, but no labor contract concluded later may influence the performance of the labor contract concluded previously.
(5)No probation period may be stipulated for non-full-time labor by both parties.
(6)Either of the parties that use non-full-time labor may notify the other party to terminate the labor at any time. When terminating any non-full-time labor, the employer will pay no economic compensation to the worker.
(7)The standards for the remuneration for non-full-time labor on hourly basis shall be no less than the minimum salary rates hourly as prescribed by the people’s government of the region where the employer is situated.
(8)The labor dispaching unit shall not recruit the dispatched laborer in form of non-full-time labor.