China's online shopping boom heard around the world

Saturday's 24-hour online shopping binge is the day-to-day online shopping market in microcosm, and benefits manufacturers, traders and consumers far beyond China's borders. November 11, China's Singles' Day, became an online shopping spree in 2009 when Alibaba's Tmall began to make it so through extensive promotions. The world's biggest online shopping spree is a barometer of consumer behavior. Set in both "the world's factory" and second largest economy, the event draws shoppers from around the world looking for bargains and multinational corporations seeking sales. "It is a worldwide social synergy event," said Zhang Yong, chief executive officer of Alibaba. "The synergy means joint efforts by global businesses and driven by technology and big data. It is a Chinese phenomenon with world influence." This year, sales hit 100 billion yuan (15 billion U.S. dollars) by 9:04 a.m. Sales on Tmall broke the 10 billion yuan mark just three minutes after midnight. Last year, it took almost seven minutes. "Singles' Day brings us many nice surprises each year, with the new commercial phenomenon and business forces. I think this year will be no exception," said Zhang. Alibaba has created Haitao to help people in China buy foreign products, and TMall Global as a marketplace for foreign businesses to sell directly to Chinese consumers. Japanese brands Onward Crosset and Laox, for example, have Singles' Day promotions at their shops on Tmall Global. Stadium Goods, a New York City-based marketplace that sells footwear and other apparel, said it began preparations for the promotion one month in advance. Its Singles' Day sales target is 2 million U.S. dollars, said John McPheters, founder of the company. But it's not just sellers, many foreigners are also buying, according to Cyol.com. According to data by AliExpress, Russia, Brazil, the United States, Spain, France, Ukraine, Israel, Belarus, Canada and the Netherlands have become the top 10 buyers in terms of purchasing power. Females and people from 25 to 34 years old are the main source of the 100 million foreign online shoppers, the data showed. "It is a Chinese phenomenon, but resonates across the world," Zhang said. Alibaba's net income rose 146 percent to more than 17.4 billion yuan year-on-year for the fiscal quarter ending September. Revenue from international businesses reached 2.9 billion yuan, 115-percent growth year on year, thanks to strong growth in its Southeast Asian platform Lazada and China outbound platform AliExpress. "Singles' Day is adding more and more overseas businesses, and it has become a huge opportunity for goods, capital and culture to be exchanged around the world," said Jin Xuejun, professor of economics at Zhejiang University. In 2016, Alibaba's Singles' Day sales totalled 120 billion yuan thanks to its internationalization tendency, but the record was surpassed in just 13 hours this year. The Singles' Day shopping is becoming bigger in scale given JD.com Inc., Kaola.com and other cross-border e-commerce platforms have came to share the big on-line shopping cake. It takes JD.com as long as 11 days to top 100 billion yuan of sales by Nov. 11, in contrast with Alibaba's nine hours. These cross-border e-commerce platforms have made increased efforts to expand businesses abroad. Taking Alibaba as an example, its online payment app Alipay can now support 27 clearing currencies and serve users in over 200 countries. Cainiao Network, the logistics arm of Alibaba, has established 266 cross-border warehouses in 224 countries and regions. Despite convenience and jobs brought by booming e-commerce business worldwide, experts warned of nuisances and risks looming over the whole sector, such as junk information, credit default and internet fraud.

China’s flourishing entrepreneurship boost co-working space industry

With the world’s largest population, China has always struggled when it comes to space, from space for rice growing to space for building rockets. This has made the co-working space industry popular across China, a nation that sees about 15,000 new companies sprout every day. In response, the industry is growing at an annual rate of 30 percent and by 2030 some 30 percent of the working spaces in China will be shared. In two years, co-working space is estimated to reach 51 million square meters in China, Qu Xianyang, a vice-chairman at the China Real Estate Chamber of Commerce who oversees the industry, predicted at a forum on November 3 in Shenzhen, Guangdong. Qu added China’s co-working space industry will embrace its peak in five years, China Business Journal reported. Data from the Ministry of Science and Technology shows that China recorded a total of 7,953 co-working space companies and incubators between 1987 and 2016, topping the world in terms of numbers, amid consistent government encouragement for innovative entrepreneurship. The trend is popular not only in major cities like Beijing, Shanghai, and Shenzhen, but equally popular in smaller cities. The city government of Huizhou – which neighbors Shenzhen – vows to set up 36 city-level co-working space companies by 2020, together with 36 incubators to support high-tech startups in the city. The authorities even pledged up to 1 million yuan as compensation to reboot failed investment in such projects, according to Nandu Daily. The heating Chinese market naturally attracts international players as well. For example, WeWork, the US-based pioneer in co-working space industry, has marveled at the growth of the industry in China. Merely 16 months after it entered the Chinese market, a total of 13 locations have been set up or planned. Eleven months since opening its first location, it welcomed the first company with more than 1,000 employees, while WeWork locations in the US had to wait five years for its first “big client.” Many WeWork locations in China are also reported to fill up in less than a month after opening. The Wangjing location in Beijing saw 1,500 company registrations on the first day of its opening, setting a record in the WeWork global community in 18 countries and regions. The high occupancy and expansion speed comes under the powerful development momentum of companies, including foreign ones seeking their way into China. The world’s most awarded and biggest digital production company, MediaMonks, opened its first branch in China last year with a team of six people at a WeWork location Shanghai as the first step of the company’s exploration in China, according to a spokesperson from the Shanghai branch. Internet electric car company XPeng Motors, with 150 employees, is readying itself for a bigger team of up to 500 employees and a bigger working space of about 2,500 square meters to further work on its self-driving technology that has already accomplished autonomous parallel parking, revealed Zhang Jinjin, a vice president of the company. “We have already established an R&D center in Silicon Valley. We naturally want to enter the global market. We have strong willingness and a clear blueprint to achieve our goal,” Zhang told People’s Daily Online. Alan Ai, WeWork Greater China General Manager, told People’s Daily Online that more locations will soon be open in China, such as in Shenzhen, Guangzhou and Chengdu where economy and urbanization develop rapidly with flourishing company activities. “This is an opportune time to launch the next phase of WeWork China. We will continue to provide a global platform for more China creators to grow, innovate and go global via our new products, services, experiences and the power of our community worldwide,” said Christian Lee, WeWork Asia Managing Director, adding that more efforts would be made to further humanize the way people live and work and connect more people in real life.

China widens access to financial markets for foreign investors

China Friday announced specific measures to ease or lift investment restrictions on foreign companies in its financial markets. Foreign businesses will be allowed to own as much as 51 percent of shares in a joint venture in securities, funds and futures industries, Vice Finance Minister Zhu Guangyao said at a press conference. The cap will eventually be phased out in three years. Current foreign ownership restrictions in Chinese banks and financial asset management companies will also be removed, Zhu said while elaborating on consensus reached by state leaders of China and the United Statesduring a meeting Thursday.

Suggestions of Shanghai Court on Serving and Guaranteeing the Construction of China (Shanghai) Pilot Free Trade Zone

In accordance with the decision-making deployment of the third plenary session of the 18th Central Committee of CPC on deepening reform in all-round way and the overall objective and requirement of China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the PFTZ, for the purpose of giving full play to the role of  trial functions, better serving and guaranteeing the general situation of the construction and in line with the working actuality of Shanghai Court, the following suggestions are put forward:I. Comprehend profoundly the strategic meaning of the PFTZ construction and strengthen the general sense and obligation consciousness of providing strong judicial guarantee therefore1. Realize the full strategic meaning of the PFTZ construction. Carry out in depth the essence of the third plenary session of the 18th Central Committee of CPC o, tightly focus on the state strategy, comprehensively grasp new requirement and new task brought by the PFTZ construction to work of the people’s court, endeavor to provide strong judicial guarantee and quality, efficient law service for building the PFTZ up to the international level.2. Earnestly enhance progressive consciousness, and sense of opportunity and responsibility. As required for taking the lead in establishing the cross-border investment and trade regulation system in line with international practice and rule of law and for vigorously cultivating international and legalized business environment, give full play to the role of judicial functions. Strengthen prospective thinking, actively make initiative study of new situation and new problem arising from adjusting laws, regulations and policies relating to the PFTZ, amplify and perfect every item of working mechanism to meet demands for serving and guaranteeing the PFTZ construction, so as to let every party at home and abroad feel fairness and justice in every judiciary case.II. Update judiciary philosophy, actively and accurately meet the judiciary demand of the legalized and internationalized business environment of the PFTZ.3. Further enhance the legal concept. Based on the law-governing idea of administration by law, independent judgment, openness and transparency, proper procedure, equal protection and just judgment, make clear the market trading rule, maintain according to law the trading act effectiveness, normalize the market trading order, guide the market anticipation, promote honesty and credibility and give play to the appraisal, demonstration and guiding role of judicature to investment, trade and such other activities.4. Further expand the international vision. Draw lessons from international useful experience, intensify the guarantee of investment and trade rights and interests, and promote fair competition among various market subjects. Exercise according to law the judicial jurisdiction of foreign-related cases, accurately apply laws, international treaties concluded or participated in by our country, and international commercial trading conventions, and make efforts to provide quality law guarantee for the internationalized business environment.5. Further respect market law. Deepen the understanding of market economic law, resolutely maintain the decisive role of market in the resources’ allocation, fully respect the autonomy of market subject idea, commercial trade conventions and rules, guarantee trade freedom and safety, and support market innovation. Supervise according to law and support administrative organs in strengthening market supervision by means of legal thinking and rule of law, and advance innovation in society governing.III. Deepen judiciary reform, explore and accumulate reproducible and propagable judiciary guarantee experience6. Advance the reform of judiciary system in an active and stable manner. Strengthen the building of judicial organs in the PFTZ, study and practice the concentrated jurisdiction mechanism for cases of investment, trade, finance and intellectual property right relating to the PFTZ, raise the level of litigation facilitation and constantly perfect the rapid response of execution and link-up mechanism so as to ensure the settlement of relevant disputes in a fair, professional and efficient manner.7. Explore the reform of executive mechanism of adjudicative power. Scientifically set up trial organizations, further optimize the allocation of judicial authority, rationally determine the terms of reference of various trial organizations; perfect the case handling responsibility system of presiding judges and collegial panels to let inquisitors make judgment and judges take responsibility; improve the professional trial mechanism, exercise special control over cases relating to the PFTZ, and establish systems of case information report analysis and multi-level guide and supervision so as to vigorously improve the professional level of judgment.8. Push forward judicial openness in an all-round way. Strengthen in an all-round way the building of informatization platform for trial work in the PFTZ, make open in a timely manner the full trial procedure, judicial documents and execution information, so as to improve the public’s understanding of, trust in and supervision over trial work in the PFTZ through live broadcast of Internet court hearing, release of typical case information and other modes.9. Constantly expand judicial functions. Strengthen judicial statistics analysis of PFTZ-related cases, establish a mechanism of relevant dispute trends and early risk warning, and actively offer advice and suggestions for industrial development, institutional innovation, government decision-making and perfect legislation in the PFTZ by use of white paper of trial, judicial proposals and other modes.10. Vigorously drive the mechanism for settling disputes in the PFTZ getting strengthened and perfected. Strengthen and improve the judicial review of commercial arbitration award, safeguard according to law and encourage innovation in the PFTZ commercial arbitration system, and advance the institution of commercial arbitration system with international standard and public confidence; strengthen link-up in mediation with trade associations, commerce chambers, and other legal commercial mediation organizations, and strive to make PFTZ-related disputes settled in an efficient, convenient and economical manner.11. Consciously and actively accept supervision. Consciously accept supervision by the people’s congress and its standing committee, earnestly accept the democratic supervision by the people’s political consultative conference, solicit the opinions of a wide cross-section of society, and constantly improve relevant trial work.IV. Give full play to the role of trial functions, and provide judicial guarantee and service in order to accelerate the transformation of governmental functions and promote the development of trade and investment in the PFTZ12. Guarantee according to law and promote the enlarged open-up of investment field. As required by the negative list administration mode, commercial registration system and reform of overseas investment management mode, make intensive study of law applicability relating to civil commercial disputes in the enlarged opening-up of fields such as financial service, shipping service, commercial and trade service, professional service, cultural service and social service, accurately apply laws, regulations and decisions on adjusted implementation of relevant laws and regulations, so as to safeguard the legitimate rights and interests of domestic and foreign investors.13. Ensure according to law and promote a change in the trade development mode. Attach great importance to hearing cases relating to service trade, international bulk goods, resources trading, foreign cultural trade, cross-border e-commerce, outsourcing business, off-shore business and international trade settlement, strengthen study of legal issues relating to new business modes, support innovation development, promote fair competition, work hard to create a good legal environment in order to push forward trade transformation and upgrading, and elevate our country’s position in the global trade value chain.14. Ensure according to law and promote the opening-up and innovation in the financial field. Make every effort to support innovation in the financial system, enhance the financial service function. Strengthen judicial protection for regulation-abiding business activities of various financial institutions at home and abroad, safeguard according to law the regulation-abiding cross-border financial trade activity. Hear in a proper manner various financial dispute cases relating to financial innovation, support and encourage the prior try and make effective precaution against any financial risk.15. Ensure and promote according to law the elevation of international shipping capacity. Give full play to the advantages of maritime professional trial system, and earnestly enhance the sense of service and the perspective of work in maritime trial. Strengthen survey of law applicability in the course of innovation development of shipping services such as shipping finance, international marine transportation, international ship administration, international shipping brokerage, shipping freight index derivative exchange, shipping register and international air transportation, support and ensure the functional building of shipping hub in the PFTZ by making fair and efficient adjudication and normalizing shipping market activities.16. Give play to the dominant role of judicial protection for intellectual property right (IP). Utilize according to law the civil, administrative and criminal judicial protection measures, make more efforts to protect IP, lower the cost in safeguarding rights and raise the cost in tort. Give full protection to the legitimate rights and interests of IP owners, give play to the important role of incentive innovation in IP, arouse the innovative vitality, form a good market environment of respect for knowledge, innovation advocacy, credibility and law observance, and fair competition, and promote the innovation driving development, economic transformation and upgrading.17. Give legal support to quicken the shift of governmental functions. By discharging administrative trial duties according to law, support the PFTZ in deepening the reform of administrative management system so as to accelerate the shift of governmental functions, reform and innovate in the government administration mode, advance the institution of an administration system compatible with international high-standard investment and trade rule system. By the fair hearing of various administrative cases relating to administrative examination mode change, information opening, and market supervision and law enforcement, supervise and support law-based administration by administrative organs, give play to the overall link-up role of administrative judgment with civil and commercial trial, make efforts to provide judicial guarantee for the building of a law-based administration environment in line with the requirements of the PFTZ construction.18. Attach importance to the functional role of criminal justice maintaining market economy order. Strictly punish according to law the criminal activities of producing and selling counterfeit or inferior quality goods, commercial bribes, and infringement upon IP or property. According to legal provisions regarding the PFTZ deepening reforms and opening up wider, cautiously handle criminal cases relating to money laundry, smuggling, destroying financial administration order, jeopardizing company and enterprise management order and disturbing market order. Enhance communication and cooperation with relevant function departments, and pay attention to maintenance of economic order and social stability in the PFTZ.V. Strengthen the building of contingents, make efforts to build a contingent of judges that meets the requirements of the construction of the internationalized and law-based PFTZ19. Strengthen talent cultivation and optimize talent structure. Push forward the construction of a standardized, vocational and professional contingent, select and cultivate a batch of specialist and composite-type judges proficient in domestic and foreign laws and familiar with economy and prevailing investment and trade rules and conventions, and possessed of international vision, rich trial experience and strong trail ability to let them assume effectively the judicial responsibility of the PFTZ.20. Enhance study and training to improve judicial ability. Optimize the structure of knowledge, explore the mechanism of judges taking exercise on multi-post and cross-department study, strengthen training on economic and financial knowledge including the State’s macro-economic policy and international investment and trade, and improve study of knowledge regarding international commercial trade conventions and new trading modes so as to cultivate trial talent meeting the judicial demands of the PFTZ.

Procedures for Administration of Pilot Value-added Telecom Business with Foreign investment in the China (Shanghai) Pilot Free Trade Zone

Article 1These Procedures are formulated in accordance with relevant provisions of the Regulations of the People's Republic of China on Telecommunications, the Provisions on the Administration of Foreign-funded Telecommunication Enterprises, the Decision of the State Council on Temporary Adjustments to the Administrative Approval Items or Special Administrative Measures on Access Prescribed in Relevant Administrative Regulations or State Council's Documents in China (Shanghai) Pilot Free Trade Zone, and the Suggestions of Ministry of Industry and Information Technology and Shanghai Municipal People's Government on Further Opening up Value-added Telecommunication Business to Foreign Investors in China (Shanghai) Pilot Free Trade Zone for the purpose of adapting to the need of value-added telecommunications business with foreign investment in the China (Shanghai) Pilot Free Trade Zone (hereinafter referred to as the “Pilot Zone”).Article 2The value-added telecom business that can be operated by foreign-funded enterprises in the Pilot Zone and the proportion of funds contributed by the foreign investors shall be determined by the Ministry of Industry and Information Technology in accordance with relevant regulations.Article 3A foreign-funded enterprise in the Pilot Zone that applies for value-added telecom business shall comply with the following requirements: 1. The operator is a company established in the Pilot Zone according to law; 2. Having appropriate funds and professionals to carry out business activities; 3. Having the reputation or capability to provide long-term services for users; 4. The minimum amount of registered capital is RMB 1 million; 5. Having the necessary premises, facilities, technical solutions and network and information security systems and measures, and the service facilities shall be located in the Pilot Zone; 6. The company as well as its major investors and major managerial executives have not violated the telecom supervision and management system within three years; and 7. Other requirements prescribed by the State.Article 4A foreign-invested enterprise in the Pilot Zone that applies for value-added telecom business shall apply to the Shanghai Communications Administration and submit the following documents thereto: 1. A written application for value-added telecom business signed by the legal representative of the company, including the category of telecom business under the application, business coverage, company name, company correspondence address, zip code, contact person, telephone, e-mail address, etc.; 2. Relevant materials on the major foreign investors of the company, including the company registration certificate, brief introduction, recent financial reports audited by an accounting firm, certificate of credit status; and relevant materials on other investors of the company, including the company registration certificate or business license and brief introduction; 3. Copies and photocopies of the company's Certificate of Approval for Enterprises with Foreign Investment or Certificate of Filing of Enterprises with Foreign Investment /with Investment from Hong Kong, Macao, and Taiwan in the China (Shanghai) Free Trade Zone and the Business License for an Enterprise Legal Person; 4. Company profile, including basic information of the company, staff to be engaged in value-added telecom business, premises and facilities; 5. The articles of association and matters about the equity structure of the company; 6. The business development and implementation plans and technical solutions of the telecom business to be applied for; 7. Measures to provide users with long-term service, quality assurance, and users' personal information protection; 8. Network and information security systems and measures; 9. Relevant materials to prove the credibility of the company; and 10. Letter of commitment signed by the legal representative of the company on conducting telecom business in accordance with the law.Article 5Shanghai Communications Administration shall review the application materials, issue a notice of acceptance to the applicant with the complete application materials in compliance with the legal form, and shall inform at a time the applicant with incomplete application materials or out of compliance with the legal, either on spot or within five working days of all the contents that need to be complemented.Article 6Shanghai Communications Administration shall complete the review within 60 days from the date of acceptance and make a decision of approval or disapproval. For the applications that are approved, the administration shall issue an Official Reply of Approval for the Pilot Value-added Telecommunications Business with Foreign Investment in the China (Shanghai) Pilot Free Trade Zone (temporarily valid for 3 years). For the applications that are not approved, the Administration shall notify the applicant concerned in writing and explain the reasons.Article 7The Shanghai Communications Administration shall, after issuing an official reply of approval for pilot business to the applicant concerned, report to the Ministry of Industry and Information Technology for filing within 10 days.Article 8The foreign-funded telecom enterprises in the Pilot Zone shall conduct operation of value-added telecom business in accordance with the law, protect the legitimate interests of users, report business developments on time, exercise no unfair competition of any kind, properly protect users' information and maintain network and information security.Article 9Shanghai Communications Administration shall implement annual inspection system for foreign-funded telecom companies in the Pilot Zone. The foreign-funded telecom enterprises shall submit the following materials for annual inspection to the Shanghai Communications Administration in the first quarter of the next report year: 1.The operation of telecom business within the year; business developments, changes of personnel and set-up; quality of service and protection of users’ personal information; implementation of the requirements of network and information security management; implementation of relevant regulations of the State and the telecommunications regulatory administrations; 2. Photocopies of company's business license of enterprise legal person; and 3. Other submissions required by Shanghai Communications Administration.Article 10Shanghai Communications Administration shall, when carrying out annual inspection of foreign-funded telecom enterprises, conduct a comprehensive examination of the submissions of the enterprises, and examine such aspects as their business subjects, business practices, telecom charges, service quality and users' personal information protection, implementation of requirements for network and information safety management, and implementation of relevant regulations of the State and the telecommunications regulatory administrations. Participation in annual inspection on schedule and with all items complying with the requirements is deemed the annual inspection passed. For failure to participate in annual inspection as required or annual inspection items failing to comply with the requirements, the Shanghai Communications Administration shall make an order for correction and appropriately give administrative punishment in accordance with the law; correction made on time is deemed the annual inspection passes after correction; refusal to correct is deemed failure to pass the annual inspection. The annual inspection results and the punishment shall be recorded in the Record of Annual Inspection and Violations, attached to Official Rely for the Pilot Business, and shall be released to the public and reported to the administration for industry and commerce.Article 11If a foreign-funded telecom enterprise in the Pilot Zone has a situation provided for in Articles 18 to 20 of the Provisions on the Administration of Foreign-funded Telecommunications Enterprises, the Shanghai Communications Administration shall impose punishment in accordance with the law.Article 12The Ministry of Industry and Information Technology is responsible for organizing the evaluation on the work of pilot value-added telecom business with foreign investment in the Pilot Zone. Shanghai Communications Administration shall issue an evaluation report on value-added telecommunications business with foreign investment on a quarterly basis based on the annual inspection as well as daily supervision, and submit the report to the Ministry of Industry and Information Technology.Article 13These Procedures come into effect on the date of promulgation, and relevant contents are to be adjusted at appropriate time in accordance with relevant decisions of the State Council.

Shanghai drafts 28 taxation measures to optimize business climate

Shanghai has drafted 28 innovative measures that will help foster a better environment for doing business in the city and make paying taxes efficient for corporations and individuals.To better help newly-established companies, Shanghai Municipal Office of the State Administration of Taxation has introduced a “set menu” service for registration, which covers the most common issues facing start-ups, in orrder to save them time.Another policy reduces the number of times that a company has to pay taxes, and an annual tax declaration will be applied to some eligible small-scale taxpayers.The authority is also enhancing the mutual recognition of tax related information by joining with other government departments in the city like the municipal human resources and social security bureau and the local accumulation fund management center.“Business climate is an important part of a country’s soft power resources. By carrying out those measures, we aim to provide a more competitive and convenient environment for companies and individuals in Shanghai,” Jiang Xutao, chief economist of the local taxation authority, said during a media briefing today.“Our next move is to implement the policies in the China (Shanghai) Pilot Free Trade Zone first and then promote them to other districts of the city before the middle of 2018,” Zhang added.