ChinaRealNews

China restates regulations concerning broadcasting of radio and TV programs and advertisements

2008-01-31 Beijing

The General Office of the State Administration of Radio, Film and Television of China recently issued a circular to restate its rules and regulations concerning the broadcasting of radio and TV programs and advertisements.

Under the circular, radio and TV networks across China are prohibited from airing false, illegal advertisements related to medical services, drugs and healthcare products. The circular also bans vulgar advertisements concerning sexual drugs and healthcare products.

In addition, radio and TV authorities across the country are required to put in place effective measures to enhance their supervision on the broadcasting of radio and TV programs and advertisements. The authorities must discipline non-compliant radio and TV networks and transmission agencies and withdraw their operation licenses if necessary.

Finance and insurance sector to benefit most from implementation of new Enterprise Income Tax Law of China

2008-01-31 Beijing

Cong Ming, director of the Tax Policy and Legislation Department of China’s State Administration of Taxation, said on 19 January in Shenzhen, China that the finance and insurance sector will benefit most from the implementation of the new Enterprise Income Tax Law of China.

Under the new Enterprise Income Tax Law officially took effect in 2008, the legal tax rate will be reduced from 33% to 25%, which will have a positive effect on sectors with heavy tax burdens, stated Cong at an investment strategy-themed conference.

Statistics show that the finance and insurance sector topped the 2006 tax list with a tax burden of 39.8%, followed by tobacco (32.1%) and real estate (25.1%).

As a result, the finance and insurance sector will be the largest beneficiary of the new Enterprise Income Tax Law. In addition, sectors including energy-saving and environmental preservation, software and integrated circuit, the relevant tax rates of which are maintained at a lower level according to the new law due to the strong support given by the country, will also benefit from the policy.

China’s Lenovo sells mobile phone business for US$100 million

2008-01-31 Beijing

Lenovo Group (OTC: LNVGY), a leading Chinese technology company, announced on January 31 that the company has entered into an agreement to sell its mobile phone business to Jade Ahead, LEV Ventures, Ample Growth and Super Pioneer for US$100 million.

Under the agreement, Lenovo will sell all the registered capital of Lenovo Mobile Communication Technology Ltd., a subsidiary of the company, to the buyers. In addition, Lenovo will be able to subscribe for no more than 5 per cent of the entire registered capital of Lenovo Mobile within four years after the transaction closes.

Affected by the intensifying market competition, the company recorded a year-on-year decline of 31 per cent in handset sales during its third fiscal quarter.

Founded in 2002 and headquartered in Xiamen, China, Lenovo Mobile Communication Technology Ltd., known as a provider of mobile communication products and services, is mainly engaged in product research and development, manufacturing and marketing. Lenovo’s cell phone products have won the fourth place in China’s mobile market, according to data from SINO Market Research, a leading market research and information agency in China.

Anti-graft spending card system to be expanded

2008-01-31 Beijing

The mainland will expand a pilot corruption-prevention system this year by asking central and provincial government staff to use a special bank card for daily work expenses. Under the system, civil servants must use the card to pay for business trip costs, daily purchases for their units and other expenses if they want to get reimbursed, according to the Ministry of Finance. The cards, issued by China Unionpay, were accepted by 740,000 mainland shops by the end of last year, although many prefer taking cash to avoid paying tax.

No Tobacco Advertisement Will Be Found in Shenyang after June 2008

2008-01-31 Shenyang

China will launch a nationwide tobacco control programme in 2008 to make it a smokeless country, as part of its commitment to complying with World Health Organization's Framework Convention on Tobacco Control. According to the requirements of the action programme for China’s smokeless Olympics, a tobacco control programme has been implemented throughout Shenyang, Liaoning province from June 20, 2007 and there will be no tobacco-related advertisement in the city after June 1, 2008.

Lee Kum Kee(China) headquarters moves to Shanghai

2008-01-31 Shanghai   

Lee Kum Kee (China) Trading Limited has recently moved its headquarters from Guangzhou to Shanghai. However, a spokesperson for the company said the company aims to expand its business in East and North China through the headquarters move but denied the company will shift its business focus from the South China market. Industry analysts believe the move signifies Lee Kum Kee (China) may focus on its development in Shanghai and Beijing, among others, in the future.

Maersk Factory in Dongguan, Guangdong Goes Back to Normal Operation

2008-01-31 Guangzhou

Maersk’s factory in Mayong, Dongguan, Guangdong province has now reverted to normal operation after its negotiation with the employee representatives. Maersk terminated its agreement with the security company involved in the event that Maersk employees refused to work for their disputes with security personnel of the security company. However, Maersk didn’t punish any employees who were involved and didn’t do anything illegal. Theses employees were still paid during the downtime. The employees of the factory were satisfied about the negotiation result. Maersk said it will set up a labor union to strengthen its communications with the laborers and take an unbiased attitude towards the event, as part of its commitment to creating an equal working environment. In addition, the company expressed its apology for the occurrence of the event and its thanks to the government authorities participating in mediating the event.

Cathay Pacific Airways benefits little from new air services agreement signed between Hong Kong and Japan

2008-01-31 Hong Kong

Sources said Hong Kong government recently entered into a new groundbreaking air services agreement with Japan, whereby Hong Kong’s airlines can operate flights to Japan’s all other cities expect Tokyo. Cathay Pacific Airways benefits little from the new agreement as the airline company could not increase the number of its flights to Tokyo and has no plan to open new flights to other Japanese cities.

Enterprises in Pearl River Delta region face dilemma

2008-01-31 Guangzhou

Footwear and other similar labor-intensive industries in developed Pearl River Delta region are facing great pressure in the aftermath of the footwear factory “closedown” wave from Dongguan. As a matter of fact, some enterprises which plan to withdraw are stilled trapped with a dilemma: on one hand, policy adjustment and cost increase have curbed their profits and make it increasing difficult for them to survive; but on the other hand, these enterprises are still reluctant to give up the established personnel relations and career development achievement here.

Three Chinese Cigarette Brands to March into International markets

2008-01-31 Hefei

As a large tobacco country, China has occupied one thirds of the world market. However, the domestic tobacco monopoly system has restricted the tobacco industry development to some extent. With three years of negotiation, China National Tobacco Corporation and Philip Morris International have inked partnership to promote three major domestic cigarette brands to the international market. As reported, the three brands include “Red Golden Dragon” of Wuhan Cigarette Factory, “Harmony” of Changsha Baisha Group and “Dubao” of Wuhu Cigarette Factory. The two parties have selected target markets for the three brands, but only Middle Europe, East Europe and Latin America were revealed.