Happy New Year to you, your family and loved ones. Have a wonderful spring fest!

In this second part of our China inbound webinar series, we offer you the necessary knowledge for the financial due diligence of Chinese buyers in Germany.

To incentivize business innovation and advance industrial upgrading, the Premier Li Keqiang mentioned a series of content closely related to the interests of taxpayers in the government work report on 5^th of March, 2021, including extending the implementation period for some tax preferential policies, raising extra tax deduction ratio on manufacturing enterprises’ R&D costs, optimizing advanced manufacturing enterprises VAT tax refunds and optimizing preferential tax policies. Afterwards, Ministry of Finance and the State Administration of Taxation of the People's Republic of China has issued some of the policies mentioned in the meeting. In this newsletter, we will sort out the policies and proposals that are closely related to your daily business.

China's "broken chain" effects on global supply chains from China to Europe and Germany

Covid-19 blows up international supply chains. Companies are now learning how fragile the global production system really is. The lockdown and quarantine actions initiated by China led to the closure of the factory in the world's second-largest economy, disrupting supply chains globally. In the next few years, as a production base and sales market, China's importance will continue. After the pandemic, most companies may reorganize their supply chain. Will the global industrial chain really underly a "Decoupling" from China in the short term?

By the end of the annual conference on March 15th 2019 China has voted for a new law that is supposed to bring an end to the disadvantages of foreign firms in China and aims for fair competition. The legislative regulations shall come into force on January 1st 2020. This Foreign Investment LAW (FIL) thus poses a legal foundation for investment- and business activities in China.