China Outbound: Bilateral Trade Treaties Provide New Opportunities for Foreign Investors in China, ASEAN and India

June 30, 2015 Posted by China Briefing Reading Time: 4 minutes

Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia

In this edition of China Outbound, we delve into the bilateral trade treaties and regional economic cooperation agreements involving China, ASEAN countries and India, as well as review the impact of these initiatives on investment opportunities for foreign enterprises. Most significantly, the bilateral relationship between China and India has been strengthened as Prime Minister Narendra Modi helped secure over US$22 billion in investments from China during his trip to the country. We also include permanent residency and other programs available for foreigners who wish to reside in any of nine ASEAN nations.

Vietnam and Western Australia Trade Bolstered by High-Level Bilateral Support

On June 18, 2015 the West Australia–Vietnam Business Council (WAVBC) made its debut in Perth. The WAVBC aim to provide information, support exchanges and promote business and investment between Vietnam and Australia. Bilateral trade between Australia and Vietnam has increased by 227 percent in the past two full years, reaching US$921 million in 2014. This productive relationship is the result of deep links which have expanded since establishment of diplomatic relations between the two states in 1973.

China and Chile Sign DTA in Deal that Broadens Investment Opportunities for Chilean Companies

On May 24, Premier Li Keqiang and a delegation of Chinese senior officials arrived in Chile. During the visit, China and Chile signed a double taxation avoidance agreement (DTA), updated their Free Trade Agreement and agreed on setting up an RMB clearing center in Chile.

China and Chile have developed a strong diplomatic relationship over the years. Chile was the first South American country to establish diplomatic ties with China, in 1970. It is also the first Latin American country to have signed a Free Trade Agreement with China, the other two being Peru and Costa Rica.

Gujarat Bags Bulk of Investment from Modi’s China Trip

Prime Minister Narendra Modi helped secure over US $22 billion in investments from China during his trip to the country last month. The China trip was the most lucrative foreign trip of his first year as prime minister. Yet the deal was substantially less than the USD $46 billion China and Pakistan reached in April. Moreover, at least six of the total 26 business agreements Modi helped secure from China will go to Gujarat, Modi’s home state. Another two agreements signed as a result of Modi’s trip will also go to Gujarat.

Visa Waiver for Citizens of France, Germany, Italy, Spain, and the UK – The Real Impact

Vietnam appears to be opening up to foreign tourists by waiving visa requirements for citizens of the five EU countries France, Germany, Italy, Spain and the UK from July 1, 2015.

However, it is worth taking a closer look at what this means to the tourism industry in Vietnam, which the World Travel and Tourism Council found contributed 4.6 percent of total GDP in 2014, and forecast to reach 4.8 percent of Vietnam’s total GDP by 2025.

Residency Schemes in ASEAN – Eligibility Requirements

Regulations and procedures significantly vary between countries, and overall, obtaining a long-term residency status is a challenge for foreigners in ASEAN. We explain permanent residency and other programs available for foreigners who wish to reside in any of nine ASEAN nations.

About Us

Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email china@dezshira.com or visit www.dezshira.com.

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