High dynamic in changes for economic, legal and tax aspects of Foreign businesses in China.
At the regional meeting in Leipzig, of the German-Chinese Business Association, Prof. Dr. med. Helwig Schmidt-Glintzer (China Zentrum Tübingen), Mathias Müller(Rödl & Partner) and Dr. med. Jing Wang (Rödl & Partner) informed about recent changes and offered important updates.
The interesting, informative and varied lectures showed once more that the impressions here in Germany of China are very different to the actions and intentions the Chinese locally initiated. e.g. OBOR (One Belt One Road, international projects with massive support of capital) and 2025 (within China)
The ignorance and lack of acceptance that Westerners can learn from China, could hinder our business development for the future. It’s important to be open minded, understand the strategies and internal developments within China to participate the economic growth.
The dynamic legal framework in China was also a topic presented by the Team of Rödl & Partner.
The new central law for Foreign Invest in China was introduced on July 28th, 2017 and practiced now. The process to establish companies in China is eased, as well some company registration process could be also done online. There was also a new company form introduced, “Foreign Invested Partnership”. This is a step forward to a liberated and more transparent system compared to the past.
From June 1st., 2017, China also introduced the “Chinese Cyber Security Law”, which is a kind of counterpart to the “DSGVO-GDPR”. A major change for companies operating in China, will be the transfer of “Personal- and Important Data”, especially to servers outside of China. According to the Cybersecurity Law, all data which falls into this category must be approved by the office for cybersecurity. In which scale this law will be applied and what is exactly “important data” might be decided by the authorities and is not clearly defined yet.