Impact of New Industry Regulations in China on Foreign Investment in the ICT Sector in 2008

In the past, China made investments and exports its key engines of economic growth. Though this model successfully transformed China into a major economic power, it has also led to new problems in future economic development. Therefore, China issued several pieces of legislation in 2007 that impose a severe impact on foreign investment, particularly for Taiwanese companies operating in China. China changing investment environment is changing.

This report analyzes the economic problems that China is faced with, the policies made by the Chinese government to solve the problems, and impact of these changes on foreign companies operating in China.

Table of Contents

• Motives for New Industry Legislation in China
• Development of China' s New Industry Legislation
  • Catalogue for Guidance of Foreign Investment Industries
  • Rule on Pollutoin Control of Electronic Information Products
  • New Enterprise Income Tax Law
  • Procedure on Self Reporting and Payment of Personal Income Tax
  • New Labor Contract Law
• MIC Perspective

• Table 1. China' s New Industry Legislation Announced in 2007