US Dollar Exchange Rates of
China Yuan 6.9197
Report from China
Real estate development in the first eleven months of
Total investment in real estate development in the first
eleven months of 2019 showed a rise of 10% year-on-year
but there was an overall decline in investment for most of
this year. Investment in residential buildings was up by
14.4% but this was at a slower rate than a year earlier.
In the first eleven months of 2019 the land
by the real estate development enterprises was down by
New foreign investment law takes effect
The most recently updated Foreign Investment Law took
effect 1Janauary 2020. This is a comprehensive and
fundamental set of legal standards for foreign investment
activities with unified provisions for the entry, promotion
and protection and management of foreign investment.
The new law has replaced the Law of the People's
Republic of China on Sino-Foreign Equity Joint Ventures,
the Law of the People's Republic of China on Wholly
Foreign-owned Enterprises and the Law of the People's
Republic of China on Sino-Foreign Contractual Joint
Ventures passed between 1979 and 1990. The changes
were made as the previous laws could not address the
emerging challenges in foreign investment, including
intellectual property rights.
The new law provides foreign investors with more rights
and more convenient registration procedures. Most
Chinese cities have rolled out favorable policies to attract
foreign investment such as offering low cost or even free
space for manufacturing, low taxes for the first year,
and/or incentives to attract foreign technology transfer.
Analysts expect foreign investment in wood product
manufacturing and trade will increase as a result of these
changes to the law.
Import tariffs adjusted
According to the Customs Tariff Commission of the State
Council, China has adjusted import tariffs for a range of
products effective 1 January 2020 to promote high-quality
development of trade.
The adjustments will be made to expand imports, to
promote the coordinated development of trade and
environment and to advance the development of the ¡°Belt
and Road¡± initiative.
To stimulate imports China will implement provisional
import tax rates that are lower than the most-favourednation
(MFN) tariff rates for over 850 commodities.
The country will introduce or reduce the provisional
import tax rates on products including frozen pork, frozen
avocados and non-frozen orange juice amid efforts to
moderately increase the import of daily consumer goods
that are relatively scarce in the country or have foreign
characteristics to better meet people's needs.
China will apply zero import taxes on pharmaceutical
products containing alkaloids for asthma treatment as well
as raw materials for the production of new diabetes
medicines to reduce medication costs and promote the
production of new medicines.
China will also lower the provisional import tax rates for
some wood and paper products.
In 2020, China will continue to apply conventional tariff
rates on some products originated from 23 countries and
regions under the relevant free trade agreements or
preferential trade arrangements.
Further tariff reduction will be made according to the free
trade agreements China has separately signed with New
Zealand, Peru, Costa Rica, Switzerland, Iceland,
Singapore, Australia, the Republic of Korea, Georgia,
Chile and Pakistan, as well as the Asia-Pacific Trade
In 2020, China will continue to apply preferential tariff
rates to the goods from the least developed countries that
have established diplomatic ties and completed the
exchange of Notes on the establishment of diplomatic
relations with China.
China will also make adjustments to the applicable
countries in line with the United Nation's list of the least
developed countries and China's transition period
Starting from 1 July, 2020, China will implement the fifth
MFN tariff concession on 176 information technology
products and accordingly adjust the provisional import
tariff rates of some information technology products.
The tariff adjustments will help reduce import costs,
advance opening up to a higher level and allow other
countries and regions to share in China's development.
Forest Law adopted
A revised Forest Law had been adopted by 13th National
session of the Standing Committee of the National
People's Congress with aim to better protect forest
resources and spur ¡®green development¡¯. The new law will
take effect on 1 July, 2020.
A new chapter "Forest Ownership" has been added to the
new Forest Law which stipulates that the ownership and
use rights of forest lands, forest and trees shall be
registered and certificates shall be issued by the
registration authorities. Legitimate rights and interests
shall be protected by law and shall not be infringed upon
by any organisation or individual.
For the purpose of environmental protection, infrastructure
construction and other public interests the law provides for
requisition forest land and trees and says the examination
and approval procedures shall be handled according to law
and fair and reasonable compensation shall be given.
Under the new Forest Law, the management system for
forests is defined and the forests are divided into public
and commercial forests. Public forests shall be strictly
protected and commercial forests shall be operated
independently by forest operators according to the law.
With regard to commercial forests it is clearly stipulated
that the country encourages the development of
commercial forests and that forest owners shall operate
such forest of their own according to law and may take
necessary measures to improve economic efficiency
without damaging the environment.
The new Forestry Law has abolished the timber transport
licensing system, improved tree cutting licensing system
and optimised the procedures and conditions for the
issuance of timber cutting licenses. The law explicitly
requires competent forestry authorities to take measures to
facilitate the application for cutting licenses.
Tax reduction for wood-based panel
The State Tax Administration has issued a new edition of
the guidelines on preferential tax policies to support
poverty alleviation. The guidelines point out that taxpayers
can enjoy tax preferences if they produce wood-based
panels and products made from raw materials such as
sawdust, bark and other wood residues.
The amount of tax payable by an enterprise manufacturing
wood-based panels and products from sawdust, bark and
residues shall be calculated at 90% of enterprise incomes.