On 7 October 2022, the US Commerce Department’s Bureau of Industry and Security issued the much anticipated rules aimed at restricting China’s ability to obtain advanced computing chips, develop and maintain supercomputers, and manufacture advanced semiconductors. In addition to formalizing the licensing requirements included in the recent BIS “is informed” letters issued to certain US companies on related matters, the Rule imposes a wide range of new and enhanced restrictions targeting China’s advanced computing and semiconductor sectors.

In this issue of China Tax Update, we will discuss the major China tax developments in the second quarter of 2022, including the latest development in the “aligned arrangement” for customs valuation and transfer pricing

We are pleased to invite you to our Virtual Global Trade Conference on July 20 and 21. In lieu of our annual conference in Bellevue, WA, we are excited to again provide a virtual offering available to all our clients and friends worldwide! Please join our international trade compliance lawyers from around the world as they discuss and examine the major developments impacting international trade. The conference will be comprised of 75 minute sessions over the course of two days and clients will also get the opportunity to request a virtual one-to-one meeting with our International Trade attorneys to discuss relevant topics of interest. Visit our events page for more information and to register.

More than one year since China’s new Export Control Law became effective, the Ministry of Commerce has finally released the long-awaited Regulations on Dual-use Item Export Control draft, for public comments on 22 April 2022.

More than one year since China’s new Export Control Law became effective, the Ministry of Commerce has finally released the long-awaited Regulations on Dual-use Item Export Control draft, for public comments on 22 April 2022.

The Guide to Doing Business in China provides an introduction to selected aspects relating to investment and business operations in the People’s Republic of China under current Chinese laws and policy during the COVID pandemic, including a summary of important areas of concern to all investors in China: mergers and acquisitions, data privacy issues, antitrust and competition issues, taxation, employment, intellectual property protection, trade and import and export rules, financial services, as well as anti-bribery compliance and dispute resolution issues.

The Ministry of Commerce of China released its first Export Control White Paper on 29 December 2021. Simultaneously, it launched a dedicated “China Export Control Information” website, where it publishes export control related FAQs, case studies and training videos. The White Paper places great emphasis on criticizing the abuse of discriminative, unilateral export controls, and the activity of “building export control small circles in the name of multilateralism”.

On 12 April 2021, the General Administration of Customs of China issued Order No. 248, which sets out new requirements for the registration of qualified foreign food producers that are allowed to export food products to China, effective from 1 January 2022. This Order represents a significant move toward tightening up the regulation of foreign made food products imported into China.

On 2 November 2021, the Ministry of Commerce of China officially released the revised Catalogue of Technologies Subject to Import Prohibition and Restriction, effective immediately, which identifies, among others, foreign “data encryption technology employing a key length greater than 256 bits” as a technology that requires import permit when transferred to a Chinese party.

The Ministry of Commerce of China (MOFCOM) announced on 31 May 2019 that the Chinese government will introduce an “Unreliable Entity List” regime, under which foreign entities or individuals that boycott or cut off supplies to Chinese companies for non-commercial purposes and causing serious damages to Chinese companies would be listed as “Unreliable Entities”.…