1.24
billion
93% Han Chinese, 55 recognised minorities
Legislative Body
National
People's Congress and its standing Committe exercise legislative
power
Official Languages
Standard
Chinese & Mandarin
Major Industrial Cities
Beijing,
Shanghai, Kunming, Guangzhou
Currency
Yuan
/ Renminbi (BMB)
Bank Exchange Rate (Nov '99)
1
US$ = 8.27 RMB
Inflation
2%
(approx)
Legal System
A
complex amalgam of custom and statue; rudimentary civil code in
effect since 1 January 1987; new legal codes in effect since 1
January 1980; continuing efforts are being made to improve civil,
administrative, criminal and commercial law
GDP: Purchasing Power Parity
$4.42
trillion (approx)
GDP - real growth rate
7.8%
(approx)
GDP - per capita
$3600
(approx)
GDP - Composition by sector
Agriculture - 19%
Industry - 49%
Services - 32%
Foreign
Exchange Reserves ($Billion)
149
Economic
Overview
The
authorities switched to a system of house hold responsibility in
agriculture in place of old collectivization, increased the authority of
local officials and plant managers in industry, permitted a wide varity
of small-scale enterprise in services and light manufacturing and opened
the economy to increased foreign trade and investment. The result has
been a quadrupling of GDP since 1978. Agriculture output doubled in the
1980s, and industry also posted major gains. In late 1993 China's
leadership approved additional long-term reforms aimed at giving still
more play to market-oriented institutions and at strengthening the
centre's role over the financial system. In 1995-97 inflation dropped
sharply, reflecting tighter monetary policies
Industries
Iron & Steel coal,
machine building, armaments, textile and apperal, petroleum, cement,
chemical fertizilers, footwear, toys, food processing, autos, consumer
electronics, telecommunications.
Tax
Rates
Enterprises with FI
and Foreign Enterprises established in SEZs that engage in production or
business operations are eligible for a reduced tax rate 15%.
Financial institutions, such as foreign banks and Chinese-foreign equity
JV banks establised in SEZs, are eligible for the reduces rate of 15%
with investment exceeding US$ 10 million and the schedule term of 10
years or more.
Tax
Holidays
Production oriented
enterprise with foreign investment that are scheduled to operate in an
SEZ for a period of at least 10 years are entitled to a tax holiday of 5
years.
Eligible busine4s are exempt from the enterprise tax for the first two
years after the first profit making year and are granted a 50% reduction
in the tax in the 3rd, 4rd and 5th
years.
Enterprises with FI engaged in the service trade are entitled to a tax
holiday of 3 years, if they operate for at least 10 years or their FI
exceeds US$ 5 million.
Chinese foreign equity joint ventures with a term of 15 years or more
that are engaged in harbour and wharf construction projects are entitled
to a tax holiday of 10 years.
Tax
Reduction
An eligible FI
enterprise approved by local tax authorities, are exempt from the
enterprise tax in the first profit - making year and are granted a 50%
reduction in the preferential rate in the following two years.
Financial institutions, on the other hand, are eligible for a tax
exemption during the first profit making year, followed by a 50%
reduction in the enterprise tax for the subsequent two years.
Chinese foreign equity JVs are exempt from the enterprise tax begining
with the first profit making year to the 5th years and is
granted a 50% reduction in the preferntial rate in the 6th to
10th year.
Withholding
Tax Rate
A reduced withholding
tax at 10% applies to foreign Investors that do not have an establishment
in China but earn passive income, including rents, from sources within
the SEZs.
A withholding tax exemption also is available for certain royalties
associated with advanced technology and for interest on preferential
loans between banks.
Foreign Investors are exempt from the withholding tax on passive
dividends from SEZ business that are remitted out of China.
International
Memberships
UN, APEC, IMF, WB, WTO
Exports
Total value: $ 183.8
Billion (f.o.b., approx)
Commodities : Electrical machinery and mechanical appliances, woven
apparel, knit apparel, footwear, toys and sporting goods (approx)
Imports
Total value : $ 140.17
Billion (c.i.f., approx)
Commodities : Electrical machineary and equipment, machinery and
mechinical appliances, plastics, iron and steel, scientific and
photographic equipment, paper and paperboard.
Principal
Exports
Japan, ASEAN, ROK, UK,
USA, Hong Kong, EU, Taiwan, Russia, Australia
Origin
of Imports
Japan, Taiwan, USA, EU,
South Korea, Hong Kong, Germany, Russia
Foreign
Trade
In the first half of
the year China's exports reached US $ 83 Bn, down 4.6% over the same
period of 1998. Import surged 16.6% to US $ 75 bn, bringing the total
trade volume to US $ 158 bn, up 4.4 %.
Basic
Items of Export to India
Edible vegitables,
Coffee, Tea, Spices, Sugar, Mineral fuels, Organic Chemicals, Silk,
Cotton, Glass & Glassware, Precious stores, Iron & Steel,
Electrical Machinery, Toys etc.
Basic
Items of Import from India
Organic Chemicals,
Pharmaceuticals & Drugs, Raw Hides, Leather, Cotton, Ores, Slag &
ash, Sugar, animal & vegitable fats and oils, Iron & steel,
Machinery, Soymeal etc.
Organisations
providing business information
China Council for
Promotion of International trade (CCPIT)
Machinery & Electronics Sub Council
MMEI Building 100823 Beijing
Tel: 86 1 3294976, Fax: 86 1 8013867
All China Federation of Industry & commerce (ACFIC)
93 Bei He Yan Street, Beijing 100006
Tel: 86 1 5136677; Fax: 86 1 5131769
China Enterprise Management Association (CEMA)
17 Zizhuyan Nanlu
Haidian District 100044 Beijing, China
Tel: 00 86 1 68414280/ 68416622
Fax: 0086 1 68414280
China Chamber of International Commerce
Machinary & Electronics Chamber of Commerce (MECC)
MMEI Building, Sanlihe Road
Beijing 100823, China
Tel: 0086 1 329476
Fax : 00 86 1 8013867
China in Brief
