Law

 Passport Law of the People’s Republic of China 

 Law of the People’s Republic of China on Anti-Money Laundering

 Law of the People’s Republic of China on the Supervision of Standing Committees of People’s Congresses at Various Levels

 Decision of the Standing Committee of the National People’s Congress on Amending the Banking Supervision Law of the People’s Republic of China

 Decision of the Standing Committee of the National People’s Congress on Amending the Organization Law of the People’s Courts of the People’s Republic of China 

 Provisions on the Reporting Activities in China Conducted by Foreign Journalists during the Beijing Olympic Games and the Preparatory Period

 Nationwide Criteria for the Rock Bottom Price of Industrial Land Grant

 Administrative Measures of Beijing for the Prevention and Control of Pollution from Environmental Noise

 Measures for the Self-Declaration of Individual Income Tax (for Trial Implementation)

 Interim Measures for Inquiries about the House Ownership Registration Information

 Behaviour Criteria for the Practice of Real Estate Agents

 Circular of the Beijing Local Taxation Bureau on Collection Management of Land Value-Added Taxes

Land Policy

Lowest-Price Guidelines Created for Use of Industrial Land

Criteria setting “floor” prices for industrial land use were issued by the Ministry of Land and Recourses of the People’s Republic of China and were implemented nationwide on January 1, 2007. The guidelines state that the right to the use industrial land shall be obtained via invitations to bid, auctions or listings. Land-use prices should be no lower than the floor price stipulated in the criteria.

Land-Use Fees Paid for New Construction Projects Increase by 100 Percent

A circular on policies concerning land-use fees paid for new construction projects was jointly issued by China’s Ministry of Finance, its Ministry of Land and Resources and the People’s Bank of China. It doubled land-use fees as of January 1, 2007, nationwide. The circular stipulated the scope, entities involved and procedures for land-use-fee management and set standards fees for each province and municipality. This circular will serve as a primary guideline for land-use fees that should be paid for new construction projects.

One Percent Land Value-Added Tax on Real Estate Developers

A Circular on the Collection Management of Land Value-Added Taxes issued by Beijing Local Taxation Bureau states that a value-added tax on land amounting to 1 percent of the revenue from a housing sale shall be collected on all commercial houses except luxury and cost-controlled houses beginning on January 1, 2007.

One Percent Land Value-Added Tax on Second-Hand House Transfers

A Circular Concerning Land Value-Added Taxes for Individual Second-Hand Housing Transactions was issued by the Beijing Local Taxation Bureau. It states that a tax amounting to 1 percent of a house’s price may be collected in cases involving a lack of an invoice and housing price assessment report in a second-hand housing exchange.

Environmental Policy

Laws Require Fines, Compensation from Noise Makers

The Administrative Measures of Beijing for the Prevention and Control of Pollution from Environmental Noise issued by the Beijing Municipal Government and implemented on January 1, 2007, added a supplementary regulation on construction, commercial and housing-decoration noise in residential housing areas. For the first time, the regulation stipulates that a maximum of 500 yuan must be paid in compensation for creating disturbances within neighbourhoods, in addition to fines of 200 yuan–30,000 yuan.

Financial Policy

Rules Improve the Finance Market

The Rules for Anti-money Laundering by Financial Institutions implemented on January 1, 2007, specify that all financial institutions, including banks, stock exchanges, mercantile exchanges, funds, insurance companies and trust companies, shall establish internal anti-money laundering mechanisms or designate relevant internal departments to specialize in anti-money laundering efforts and that they shall also establish a customer identity registration system as well as a large-value transaction reporting system. They shall also make and maintain records on customer accounts, including transaction records of customers and shall engage in anti-money laundering publicity efforts among their customers and provide training for their staff on anti-money laundering so as to familiarize them with laws, administrative rules and regulations on anti-money laundering and strengthen their competence in combating money laundering activities.

China Enacts New Financial Rule to Govern Enterprise Finance

The General Rule Governing Enterprise Financial Affairs issued by the Ministry of Finance People’s Republic of China was implemented on January 1, 2007. The rule applies to all State-owned enterprises and enterprises whose controlling stake is owned by the State (except financial companies) within the territory of and which were established under the laws and regulations of the People’s Republic of China. The rule applies to all other enterprises as well.

NPCC Issues Financing Leasing Law

A Financing Leasing Law will be issued soon by the Finance and Economy Committee of NPCC. It drops the registered capital of tenancy companies (companies that lease properties) down to 5,000 yuan if a bank has a stake in the tenancy company. Strategic cooperation between banks and tenancy companies will be a key to solving the industry’s capital problems. Prior to the new law, the registered capital of a tenacy company must have been 500 million yuan, while domestic financing leasing enterprises needed 170 million yuan to set up a trial company.

Miscellaneous

Provisions Implemented to Help Foreign Reporters during 2008 Beijing

Olympic Games

The Provisions on the Reporting Activities in China Conducted by Foreign Journalists during the Beijing Olympic Games and the Preparatory Period was implemented on January 1, 2007. Based on international convention, the provisions provide greater convenience for foreign reporters during the Olympic Games. It states that foreign reporters do not need a Chinese sponsor or host company to come and report in China; it is not necessary to submit interview applications to local foreign affairs departments and reporters may interview anyone who wants to visit with them with the persons consent. Foreign reporters are allowed to employ local people for assistance through an authorized foreign affairs service company. The law also simplifies entry procedures for use of interview facilities.