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![]() About China Overview Dramatic economic progress and relative political stability have marked China’s history in the last 20 years. The economic reforms and the opening up of China to the outside world have unleashed forces that have transformed Chinese society. This has resulted in many more opportunities for the Chinese to realise their potential, and to participate in, and benefit from, the rapidly developing economy. For foreigners the transformation provides economic opportunities to be capitalised on. Beginning in the late seventies, the Chinese leadership has been moving the economy from the sluggish Soviet style, centrally planned economy to a more productive and flexible economy with market elements, but still within a framework of Communist control. Despite progress, the leadership has often experienced the worst results of socialism (bureaucracy, lassitude, corruption) and capitalism (windfall gains and stepped up inflation). Beijing, therefore, has periodically backtracked, tightening central controls at intervals. As the State moved out of the ‘cradle to grave’ social care that was provided via State owned companies, people started having to pay an increasing proportion of the costs of housing, education, medical care and pensions. In the late 1990s this lead to a slowdown in consumer spending as people started to save, resulting in two years of deflation. In the major cities housing and insurance markets are starting to develop. The economic restructuring resulted in major job loses in SOEs as these organisations sought to become profitable in the face of competition from foreign invested enterprises. In the late 1990s some 15 to 20 million workers were laid off, mostly in labour intensive industries. The same number is likely to be laid off over the next few years as the next round of restructuring proceeds. WTO entry will allow greater imports of foreign agricultural products. This will directly impact the rural sector where many of the farms are barely economic, despite some subsidies. The result will be further movement to the cities. Already some 80 million people have left their place of registration to find work in the cities, and more will follow. Social stability is, therefore, a major concern. Another issue, and one that could threaten economic growth, is the deterioration of the environment. Years of mismanagement have lead to air pollution, water pollution, water shortages and deforestation. Since it began its open door policy in 1978, foreign trade has become more important to China. China is now one of the world’s top trading nations (4th in 2003) and is the 10th country to achieve a US$1 trillion economy. Low labour rates, an educated work force and attractive investment policies have encouraged a large number of overseas companies to move their production to China, in particular Hong Kong and Taiwanese companies. The output of these foreign invested enterprises now constitutes a large portion of China’s total exports. When talking about the China market (population of 1.3 billion) it is important to break China down into regions and then within those regions further breakdown the market in terms of those consumers that can afford to buy your product or service. What we are now witnessing in China is a new generation of consumers emerging from China's hardships. This new generation can be defined as being young and well educated, familiar with western culture and a high probability they will be employees of multi-nationals. They are aware of the latest consumption trends and have high purchasing power. They are looking for a new way of life - impacts on clothes, dining and living and they are generally regarded as trend-setters and trend adopters in China. This growing middle class is typically located in the major cities on the Eastern seaboard of China and in particular the following four cities - Beijing, Shanghai, Shenzhen and Guangzhou where GDP per person is now over US$5,000. Some major changes are expected to occur in China over the next decade, with the overall bias of the population moving to the 40 and above age group. In 2003, this age group accounted for about a third of the population, but by the year 2023 this group will constitute roughly half the population. In addition to this, China's population growth will slow significantly, growing at only 0.2% per annum until 2008 and 0.1% from then until 2014, when it will peak at 1.3 billion people. Consequently, the number of people of working age and the number of employed has minimal future growth. Education standards in China are improving rapidly, and it is projected that the proportion of the adult population with tertiary level qualifications will increase from 6% in 2003 to 10% by 2013. A similar increase is also projected for those with technical and upper secondary qualifications. This improvement in education impacts on the urban population, which will increase at a rate of 1% per annum through to 2013 when it will reach 49% (note urban households will exceed the number of rural households by 2010). This leads to an increase in the proportion of the population that are in skilled white collar occupations, which in turn effectively increases the productivity of the labour force and therefore the affluence of the individual. An increase in average household incomes is also expected, with urban household incomes increasing at a rate of 5.9% per annum between 2003 and 2008, and then 3.6% per annum to 2013. The overall distribution of wealth will broaden and the middle class and above will expand. For the next five years the number of middle income households starts to decline (-2.1% p.a.) in absolute size as the households move into the income range of what is currently” upper middle” and “highest” income levels which will grow at rates of 4.1% and 17.8% per annum respectively. By 2013 it is projected that 49.2% of urban households will have an income above that used to define the top 20% in 2003. To make the point further, there are currently 68 million households earning RMB 26,016 and above per annum (equivalent to the upper middle class and above level). By 2013 there will be 158 million households in this category. This increasing affluence of the middle class and above leads to the growth of discretionary expenditure categories, with this income going to housing related and then subsequently to transport, communications, education and recreation and health. This presents an attractive market opportunity, with these categories projected to grow in value by 7% or more per annum. Food and clothing while still being the major expenditure items are projected to fall from 43.7% to 33.1% of total urban household expenditure.
Political A new era began when US President Nixon made an historic visit to China in 1972, thus ending Beijing’s isolation from the non-communist world. Diplomatic relations with the USA were established shortly after, closely followed by New Zealand in 1973. Since the late 1970s, a series of five-year-plans first aimed to modernise agriculture, industry, science, technology and national defence and expand the production of consumer goods, housing construction, energy and transport. Finally, reform commenced in finance, taxation, foreign trade and investment. A key component has been the opening of China to the outside world and allowing foreign companies to enter China. The 10th National People’s Congress in Beijing elected China’s new generation of leaders during March 2003. Hu Jintao has replaced Jiang Zemin as China’s President and Wen Jiabao has succeeded Zhu Rongji as the Premier. China’s Top Ten ExportsChina’s major exports for year ended March 2004
Source – World Trade Atlas – based on Chinese official statistics China’s Top Ten Imports
This table
shows China’s top ten imports for year ended March 2004.
Source – World Trade Atlas – China Customs Recent TrendsChina’s imports tend to be capital plant and equipment, raw materials or semi-processed products for use by domestic industry for processing and re-export. There are also specialist products that Chinese companies cannot yet produce to the required standard. As the economy has developed and a middle class starts to emerge in the cities, the demand for consumer products and food and beverages has grown. Though this demand has largely been met from domestic sources, there is a demand for imported products. The US Foreign Agricultural Service has estimated that there are may be 45 million people in China who can afford imported foodstuffs. It is this group who can also afford other imported products, overseas holidays and education abroad for their child. New Zealand’s Trade with ChinaOne of the characteristics of trade with China is the volume that goes via third countries, in particular Hong Kong but also Singapore, Korea, Japan and other countries. The results of this can be shown by comparing New Zealand exports to China with China’s imports from New Zealand. The figures are all for the year ended March 2004.
Source – World Trade Atlas
Source – World Trade Atlas Recent TrendsNew Zealand exports to China have increased substantially in recent years particularly in US dollar terms (up 18.38% in the last 12 months) however in NZ dollar terms actually fell 4.52% in the past year for the first time in a few years. Exports have traditionally been agriculturally based products such as wool, dairy, meat, seafood and forestry. This is unlikely to change in the near future, though their proportions may alter. The trend though is that more high tech products are starting to enter the Chinese market from New Zealand, often via a third market. China's mismanagement of their forestry resource has meant that the available domestic supply of logs and timber cannot meet an increasing demand. By the year 2010, it is projected China will demand 360 million cubic metres of wood with only half of this amount coming from domestic sources. Today, the demand for timber is being driven by a buoyant and growing furniture industry (esp. re-export), a building boom, and a move from traditional building/construction methods to more modern techniques. Over 1.6 million m3 / yr of NZ pine logs are now being exported to China. The key end users are plywood manufacturers, the construction sector for concrete forming, packaging and furniture producers. China's furniture exports to the US may drop by as much as 50 percent this year as a direct result of US anti-dumping action. US authorities have accused China of dumping furniture and are set to impose high tariffs. Last year China exported US$3.8 billion worth of furniture to the US of which nearly half was wooden bedroom furniture - the target of the dumping accusation. In January this year, the US International Trade Commission started an investigation of Chinese made wooden furniture. If a verdict goes against the Chinese companies the makers could face tariffs of up to 440 percent. As a result, Chinese furniture manufacturers are turning more to the top end of the domestic market for increased sales as well as looking to diversify markets e.g. Europe. The anti-dumping proceeding is very important to New Zealand, as a high percentage of NZ pine lumber exports goes into the manufacture of solid wood furniture for the US market, hence, any decrease in exports of furniture to the US could have a flow through effect on the demand for NZ pine. NZTE Shanghai continues to monitor the situation closely. Sector : EducationChina has been a growth market for education since 1999 when all quotas were removed. The China market’s characteristics mean that that its market drivers produce a narrow focus on English language, following through to tertiary studies, mostly in either management/commerce, or IT. The China education market experienced extraordinary growth, culminating in more than 30,000 Chinese students in New Zealand in 2002. However, following this peak, the number of new students entering the country have fallen by more than 60%, mostly due to increased competition from other English speaking destinations, NZ$ increase, adverse publicity in China, and reaction from the Chinese government to the collapse of private language schools. Institutions should be strategically investing time and resources into rebuilding for the long term the education relationships with China that will help to flatten out the peaks and troughs. Sector : Food & BeveragesAs with most markets the food and beverage sector continues to offer opportunities for NZ products. NZ already exports significant volumes of dairy products (mainly bulk milk powder but also cheese, butter, UHT milk and yoghurt). NZ also exports large volumes of meat, mainly low value lamb and offal, but there are niche opportunities to supply higher value added meat cuts to the retail and HRI sectors in major cities. Other finished products such as dairy products, fruits, wines, juices and beer etc also have potential at the HRI level, while opportunities exist for prepared foods targeting the retail sector. NZ exporters need to back up their products with consistent marketing and ensure the product is always available. Make sure the product has the best shelf life possible and note realistic packaging sizes are also important. As disposable incomes rise consumers can afford better quality products. There is both a growing appreciation of western food in major cities and a desire for more convenience type food solutions with increasingly couples both working. Sector : SeafoodCombining direct and indirect exports, China is New Zealand’s fourth largest export market for seafood. The market for seafood in China varies by region, the demand in the south being for high value live product while the north favours frozen product. Most high value product enters China through the south. The processing industry is primarily based in the north, where imports for processing and re-export enter China, with limited activity in other coastal centres in the east and south. There is a demand in the north-east for low value species (e.g. barracuda and jack mackerel). With the standard of living improving throughout China, the demand for high value frozen seafood and live seafood will continue to grow in line with economic growth over the next decade. There are opportunities in the market to introduce new high value live species from New Zealand such as abalone, flat fish and fin fish. There are also new opportunities for high value processed fish products. Sector : Nutraceuticals/Health ProductsThe one–child policy combined with an increasingly aging population will ensure the demand for healthcare and related products will continue to rise. Natural health products, e.g. calcium-based, marine-based and honey-based products, potentially have good prospects in China, in terms of supplying both bulk ingredients for re-branding or New Zealand-branded product into the retail sector. New Zealand companies will need to be aware of health and food regulations applying to nutraceuticals and related health products. They will also face strong retail competition from American and Australian suppliers. Sector : Food Processing TechnologyChina looses up to 40% of its food production through poor processing and mismanagement of distribution. There are a number of international companies who have established food-processing facilities in China and are either looking to expand or upgrade their existing production facilities to meet international health standards. These international companies are more able to fund these projects. There may also be opportunities to target the more profitable local companies, particularly those gearing up to meet the demands of their export markets in Japan, the EU and the USA. Sector : Building ProductsChina is now the biggest construction site in the world with Beijing overtaking Shanghai as the city with the most land area under construction. China plans to start work on 380 million square metres of new housing projects, with 5 billion more square metres to be built by 2005. There is an increasing demand for interior fit out products and niche opportunities for energy saving, energy efficient, environmentally friendly building products in China. This is driven by the need for China to adopt more modern building techniques, as well as a shortage in resources. There is also demand in the new hotel and hotel refurbishment sector for a wide range of building products. Changes are happening to China's housing regulations that should allow for timber framed housing including NZ radiata pine. China’s growing middle class has been a major driver in the increase in demand for housing, building products and furniture. These are all key sectors that consume wood, panel products, and laminated flooring etc and as incomes continue to rise, the demand for apartments, houses, furniture and kitchens etc will increase and thus the demand for wood products will increase. It is important to also mention that while incomes are rising quite quickly this is largely concentrated in the big cities on the Eastern seaboard of China and that the growing disparity between rural and urban incomes, between Eastern and Western China is a major issue for China's new generation of leadership. China's four major cities, Beijing, Shanghai, Shenzhen and Guangzhou are all experiencing rapid growth. The 2008 Olympics being held in Beijing are a major factor driving the building and construction market in that city. The 2010 World Expo to be held in Shanghai is having an equal affect and in Shanghai alone it is predicted the current building boom will continue for another 5-7 years and that each year at least 18 million square metres of new residential floor space will be built. The Shanghai Municipal Government has for a number of years had a strategic plan to develop the city into a world class modern city that operates at a high level of efficiency. As a result Shanghai has built up an extensive network of expressways and roads, airport facilities, light-rail and subways. A huge amount of investment continues to be put into the construction of these facilities in not only Shanghai but also all the major cities in China. Wood fibre is a key material used in the construction process and this should have a positive pull-through for imported raw materials and value added wood products. Sector : E-businessThe internet population in China has reached 79.5 million as at the end of 2003, with 30.9 million computers linked to the internet. China also has 596,000 web sites in operation. The number of internet uses is projected to reach 123 million by the end of 2005. Internet usage is currently concentrated in the wealthy eastern provinces. The Internet information and service industry is expected to maintain annual growth of 82% to reach US$4.2 billion by the end of 2006. On line advertising spend doubled from 2002 to 2003 to reach US$130 million. Internet revenues from the search market are projected to reach US$169 million by the end of 2005, up from US$60 million in 2003. Revenues from online games are forecast to reach US$803 million by 2005, up from US$308 million in 2003. Simultaneous users of instant messaging services are expected to grow from 7.4 million in 2003, to 12 million in 2006. The use of online auctions in China is on the increase. In 2003, US$232 million was spent in online auctions transactions, and this figure is expected to grow to US$407 million in 2004 and US$973 billion in 2006. The 3 companies that dominate this growth are eBay-Eachnet (currently has 80% of the market), the Yahoo/Sina.Com JV and Alibaba-Taobao. More than 84% of the users are students, with an average monthly income of US$201. Sector : Environmental TechnologyThe environment is the number one concern for many local governments in China. Initial focus is on treatment of waste water, sewerage and solid waste but also on growing noise and air pollution. Cities are being greened up with “instant parks” appearing. Need to find projects that match NZ capability and understand how these projects are financed. Many projects will require a local partner. China can seem daunting to New Zealand exporters and it’s paramount that companies take time to research and understand the market before making any commitments. Many New Zealand companies are successfully exporting to China or have an established presence in the market. One of the key elements of engaging in successful business with China is to understand the various distribution options available and know which option is best suited to your needs. The options are discussed below. Trading CompaniesGenerally, foreign companies are not permitted to directly engage in trading in China. There are two exceptions - direct marketing of a portion of the products manufactured in China, and the establishment of a wholly-owned foreign trading company. In the majority of cases New Zealand exporters will need to use a domestic Chinese agent for both importing into, and marketing within China. Only those trading companies authorised by the central government to handle imports and exports are permitted to sign import and export contracts. However, since 1998 some private companies have been granted this authorisation. Some import/export trading firms also extend their business scope and represent New Zealand companies as their distributors. A number of New Zealand companies have developed good relationships with trading companies in China, many of whom have a network of affiliated companies throughout China. Local AgentsThese are becoming increasingly popular in China as the economy develops and business opportunities increase. Typically a local sales agent will handle internal distribution and marketing. Many of these firms do not have the necessary import licences and, therefore, form relationships with those companies that do, e.g. large trading companies. They may be representative offices of Hong Kong companies or domestic Chinese firms. It is often these large trading companies that the local agents use in order to secure Letters of Credit to meet the payment terms of the New Zealand supplier. There is no such thing as “the China market”. China consists of many different markets broken down firstly by region, then by city, then by niche market. Each of these markets can be different in many ways and, in almost all cases, a New Zealand company will require separate agents for each region. It can be a challenge managing the different agents who often try and sell outside of their territory. Hong Kong as an OptionImporting and distributing out of Hong Kong is an option although distribution into China and payment become the key issues. Some New Zealand export companies make their sales to China from Hong Kong and leave the responsibility for getting the product across the border into China in the hands of the Chinese client. Payment in such cases would be made in Hong Kong in hard currency. Another option is to run the sales operation out of Hong Kong but with product being shipped direct to China. It’s important that the importer there has the required rights to undertake such foreign exchange transactions, raise a Letter of Credit, or that they have access to an import/export corporation (trading company) who can do so on their behalf. Representative OfficeEstablishing a Representative Office in China has traditionally been a popular move for those New Zealand companies who have started to generate good sales into the Mainland. Traditionally the establishment of a Representative Office was the fastest and most cost effective way to establishing an on the ground presence in the market. Establishing a Representative Office remains a viable option for New Zealand companies however given recent changes in Chinese regulations New Zealand companies should also weigh up the option of establishing a WFOE Consulting company, which in many cases may in fact be a more viable choice. So what can a Representative Office do:
WFOE ConsultingWholly Foreign Owned Enterprises (WFOE) are now typically the investment vehicle of choice for foreign companies wishing to establish a presence in China – whether consulting or manufacturing. As mentioned above New Zealand companies wishing to have a non-manufacturing presence in China should look at whether they would qualify for a WFOE Consulting Company. In Shanghai the required registered capital to establish a WFOE Consulting is US$140,000 and this can be used to pay off the overhead costs of establishing the office (e.g. fit out costs, rent, salaries etc) = effectively amounts to working capital. So what are some of the advantages of a WFOE Consulting:
WFOE ManufacturingWFOE manufacturing companies enjoy the same advantages and list of permitted activities that are listed above for a WOFE Consulting. The minimum registered capital requirement for a WFOE manufacturing business is normally US$200,000. Establishing a Joint Venture/Strategic AllianceA joint venture with one or more Chinese partner or a wholly owned foreign enterprise (WOFE) is possibly the final step in developing the China market for New Zealand companies.
There are
typically two main reasons for establishing joint ventures or strategic
alliances in China: LicensingTechnology transfer and manufacturing under license are other initial market entry approaches used by companies. Both options raise the issue of intellectual property protection. However, one strategy often employed is to license older technology first with the intention of giving access to higher technology at a future date should the relationship go smoothly. This approach is quite common in the telecommunications and high-tech industries. The licensing approach requires a significant commitment to research and putting systems in place to not only protect your IP but also quality and many other aspects. FranchisingChina currently has no laws that specifically address franchising, although many foreign companies are beginning to establish multiple retail outlets under a variety of creative arrangements. E-BusinessThe Chinese government has adopted an open attitude towards the advent of e-business in China. There is already a considerable amount of interest from both Chinese and international firms in establishing on-line sales channels. There are still many issues to overcome, in particular a lack of clear regulatory guidelines addressing e-commerce in China, secure and reliable on-line settlement system, efficient delivery system, etc. Market entry requires a wide range of information. You have to make decisions on all kinds of issues that will ultimately affect your approach to the market. New Zealand Trade and Enterprise can provide you with hard data that is factual, complete and comprehensive, ranging from trends and segments in the market to distribution/competition and market demographics.
Regulatory Issues Anti-DumpingThe Ministry of Commerce is responsible for investigating allegations of dumping, working together with the General Administration of Customs. Currency RestrictionsThe Chinese currency is the renminbi (RMB) or “people’s currency”. The RMB is a non-convertible currency so cannot be exchanged outside China. Foreign exchange controls are administered by the State Administration of Foreign Exchange along with the banking sector. The exchange controls relate to foreign exchange transactions by foreign invested enterprises as well as by companies with import/export licences. Exchange controls also relate to remittances by foreigners working in China and for payments for services overseas (e.g. education). EnvironmentalThough China has a range of environmental laws, enforcement is variable, especially if the social cost of not enforcing (especially in terms of local employment) is considered to outweigh the economic cost of enforcement. At central government level in particular, there is a commitment to improving the environmental conditions in China. There are a range of problems with air pollution, soil pollution and water pollution from industry, over cutting of forests, over-grazing of grasslands and over use of chemicals in the rural sector. Health RegulationsImported foods, food additives, food vessels, food-packing materials, and tools and equipment for food cannot clear Customs without an Entry-Exit Inspection and Quarantine Certificate. The Certificate is issued by the State Administration for Quality Supervision and Inspection and Quarantine (AQSIQ). It is normal practice for samples to be taken from a consignment for health and quarantine testing. Products may be cleared physically but until they pass health and quarantine inspection (usually two to three days) they may not be distributed or used. All pre-packaged imported foods should have a “Certificate of Examination and Verification of Imported and Exported Food Labels”. In general, New Zealand has a clean bill of health for all food products exported to China. China is a member of World Intellectual Property Organisation, the Paris Convention for the Protection of Intellectual Property and of the Berne Convention (covering copyrights) and the Madrid Agreement (covering trademarks). There are Chinese laws covering all these areas, though enforcement around the country is variable. This is one area where China must bring some consistency in the enforcement of its laws when it joins WTO. Patents in China are issued for 20 years for inventions, and 10 years for utility models and designs. Registered trademarks are valid for 10 years and are renewable for further 10-year periods. Foreign companies must register trademarks through one of the agencies designated by the State Administration for Industry and Commerce. Generally it is important to get the trademark registered before the products are exported to or manufactured in China. China is a “first to file” country, which means that rights in a trademark are only obtained by registering a mark at the local Trademark Office. Within 12 to 18 months of filing the application for registration, the Trademark Office of the Administrative Department of Industry and Commerce will notify the Agent as to whether the application has been rejected or accepted. Accepted applications are published in the official Journal, but are not registered until a three-month “opposition period” has expired. During this period, anyone who believes the mark should not be registered may oppose an accepted mark. The Trademark Review and Adjudication Board can, for a fee, review the rejected applications. A third party can cancel a trademark registration if it is not used in China for a continuous period of more than three years. Import Quotas and LicencesTo trade with China, overseas companies need to deal with a Chinese entity that has import/export rights. These companies have grown from a few dozen Ministry level import/export corporations 20 years ago, to many thousands today. Many of these are joint venture or foreign invested enterprises that have limited rights to export their own products and to import raw materials for their own use. Under the WTO there will be a further easing of the regulations of who can do international business. China maintains tariff quotas on a limited number of commodities, wool being the only one that really affects New Zealand. Marking and BarcodesInformation regarding marking and barcodes is available from New Zealand Trade and Enterprise on request. Packing and LabellingImported food and beverage products to be marketed in China must have Chinese language labelling or it can be refused entry. Labels can be dual-language but the Chinese lettering must not be smaller than the lettering in the other language. The regulations state that the standard label must contain:
►
The name of the food The State Administration for Quality Supervision and Inspection and Quarantine (AQSIQ) is in charge of administration of the labelling of pre-packaged imported and exported food. It is also responsible for the examination and verification, approval and issue of certificates for food labels. Inspection and quarantine organisations appointed by the SAEIQ receive applications for examination and inspection of food labels and organise preliminary inspections. Businesses importing or exporting pre-packaged food, or their agents, must submit a food label for examination by an appointed (provincial or municipal) inspection and quarantine authority before importing or exporting. State RegulationsThough China is moving more and more towards a market economy, it is still quite heavily regulated, and a number of Government organisations are involved in regulating trade. Some of the main ones are:
►
The
Ministry of Commerce, recently formed from the merger of the Ministry of
Foreign Trade and Economic Cooperation and State Economic and Trade
Commission, is now responsible for all of China’s foreign economic
relations and foreign trade and formulating industrial policy and
monitoring economic development. As China moves towards the WTO, the role of some of these bodies will need to change, and the regulations they administer will need to be bought into compliance with WTO requirements. This substantial task is already underway and means that for some time Chinese regulations will be in a state of flux. Tariffs and DutiesThe customs law of China is complex because the government has used tariff concessions to stimulate investment in certain sectors of the economy, e.g. duty and VAT exemptions are regularly granted to foreign invested enterprises. With China’s accession to the WTO in December 2001 a wide range of tariff reductions were made on 1 January 2002. A number of items will continue to be reduced further on 1 January each year for the next few years. China operates an eight-figure two-column tariff with import duties being assessed on normal CIF values. The preferential import duty rate applies to all countries with which China has diplomatic relations (including New Zealand), while the general rate applies in other cases. VAT affects all goods other than exports, and operates in a very similar way to New Zealand GST. The general VAT rate is 17%. VAT applies to both imports and local trade, and tidies up a previous raft of product and production taxes. VAT for imported products is calculated on the duty paid CIF value. On top of VAT, a consumption tax is imposed on 11 kinds of consumer goods including tobacco, alcohol, cosmetics, skin-care and hair-care products, precious jewellery, precious jade and stones, firecrackers and fireworks, gasoline, diesel oil, motor vehicle tires, motorcycles and motor cars. The purpose of the consumption tax is to guide the direction of consumption and ensure fiscal revenue New Zealand Trade and Enterprise can provide free basic information on tariffs at an indicative level to assist companies assess viability of market entry. TaxationChinese taxation is complex as there is a range of taxes.
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