This week, the United States and China continued to take action on commitments made during the leaders’ meeting in October.
Since China’s Cybersecurity Law came into effect in June of 2017, the government has implemented a series of cybersecurity regulations with wide-ranging consequences for foreign and domestic companies operating in China.
On December 21, 2017, authorities clarified the criteria for withholding tax (WHT) deferral treatment on dividends for foreign investment in encouraged sectors in China. The Notice Regarding the Provisional Deferral Treatment for Withholding Tax on Distributed Profits used for Direct Re-investment by Foreign Investors (Caishui [2017] No.88, or Circular 88) subsequently came into effect on January 1, 2018. Released by the Ministry of Finance (MOF), State Administration of Taxation (SAT), National Development and Reform Commission (NDRC), and Ministry of Commerce (MOFCOMMOC), the WHT deferral treatment should be welcomed by foreign investors. The treatment aims to encourage long-term foreign investment in China.
Coworking and incubator spaces have expanded quickly throughout major cities as China’s entrepreneurial drive accelerates. While government had been slow to regulate coworking spaces–the use of such addresses for business registration has floundered in ambiguous territory–industry observers contend that the government is now working on a regulatory framework for the coworking industry and its tenants.
