Top news of the week
In Line with Reform and Opening of Finance Industry, Two New Joint Ventures Approved
June 7, 2021
On 4 June, China’s central bank issued an announcement stating that China CITIC Co., Ltd. and China Everbright Group Co., Ltd., have successfully had their administrative license applications approved to establish a financial holding company in two different paths. Experts stated that the approval of the two companies’ applications is significant for financial sector, and that the implementation of the new domestic control regulatory policies also signals the opening of a new era of financial control development.
NPC Standing Committee Reviews Draft Laws on Hainan Free Trade Proposal, Stamp Tax, and Measures to Oppose Foreign Sanctions
June 8, 2021
On June 7, the 29th session of the 13th National People’s Congress (NPC) Standing Committee was held in Beijing. Chairman of the NPC Standing Committee, Li Zhanshu, presided over the session’s first plenary meeting. Lawmakers reviewed draft laws on the Hainan free trade zone, military facilities protection, stamp tax, measures to oppose foreign sanctions, etc., which all new laws and amendments were later passed on June 10.
2nd Annual CEEC Expo Opens in Ningbo with Focus on “Win-Win” Cooperation
June 9, 2021
On June 8, the 2nd China-Central and Eastern European Countries (CEEC) Expo opened in Ningbo, with the theme of “Fostering a New Development Paradigm, Sharing a Win-Win Opportunity.” The “dual circulation” plan, first mentioned in May of 2020, was a hot topic as attendees look to increase connectivity of domestic and foreign markets to aid in mutual economic growth.
Xi Jinping Tours Qinghai and speaks on Environmental and Ethnic Minority Wellbeing
June 10, 2021
From June 7 to 9, President Xi Jinping took an inspection tour of China’s northwest Qinghai Province, including the provincial capital Xining and the Haibei Tibetan Autonomous Prefecture. During this trip Xi placed strong emphasis on the need to pursue environmental protection, sustainable development, and unity and wellbeing of all ethnic groups.
Central Committee Eyes Zhejiang as Demonstration Zone for Common Prosperity
June 11, 2021
On 10 June, the Central Committee of the Communist Party of China and the State Council jointly issued a guideline on building the eastern province of Zhejiang into a demonstration zone for achieving common prosperity. By 2035, Zhejiang will reach the average income level of developed countries and will have basically achieved common prosperity, with more evenly distributed income and wealth.
Insight of the week:
On June 7, the 29th session of the 13th National People’s Congress (NPC) Standing Committee was held in Beijing. Lawmakers reviewed draft laws on the Hainan free trade zone, military facilities protection, stamp tax, measures to oppose foreign sanctions, etc. According to the drafts regarding the stamp tax, the current stamp duty rate for securities transactions will remain unchanged, while tax rates for copyright and patents will be lowered to support innovative development. On the report against foreign sanctions, the draft laws on countering foreign sanctions will be considered as legal support and guarantees to help counter any discriminatory measures by a foreign country placed on China or native Chinese businesses. On June 10, it was announced that all proposed measures had been accepted and signed into promulgation by President Xi Jinping. The Hainan Free Trade Port, in immediate effect, is expected to transform the island province into a center known for convenience of trade, investment, cross-border capital flow, personnel entry and exit, and transportation, as well as the safe and orderly flow of data.
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