Subject: CHINA IMP/EXP NEWS (CN940221)

From: [email-masked] (wangc)
Date: Tue, 22 Feb 94 15:10:19 CST

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 #           A WEEKLY NEWSLETTER FROM THE CHINA-LINK CLUB             #
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                    February 21, 1994 (CN940221)

CONTENTS                                                           LINES
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A) FREE IBM-PC COMPUTER SOFTWARES FOR YOUR BUSINESS COMPUTING ........ 9 
B) UPCOMING INTERNATIONAL TRADE SHOWS IN CHINA:
   1) LIAONING INTERNATIONAL PRODUCTS EXPO '94........................75 
   2) SHENYANG INTERNATIONAL FOOD & PACKAGING MACHINERY EXHIBITION....96 
   3) TIANJING METRO AND LIGHT RAIL TRANSIT EXHIBITION '94............48 
C) CHINA'S NEW COMPANY LAW OPENS DOOR FOR FOREIGN BRANCHES............78 
D) EDITOR'S NOTE......................................................16
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A) FREE IBM-PC COMPUTER SOFTWARES FOR YOUR BUSINESS COMPUTING ........ 9 

TELEVENDOR has collected nearly 4000 FREE IBM-PC computer softwares, you
could get those BUSINESS COMPUTING softwares for FREE. You just pay the
shipping and disk costs. For the lists of all available softwares, please
e-mail to :              [email-masked] 
           with SUBJECT: SHAREWARES

The catalog will come to you instantly by e-mail.

B) UPCOMING INTERNATIONAL TRADE SHOWS IN CHINA:
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1) CHINA LIAONING INTERNATIONAL PRODUCTS EXPO '94...............75 lines
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Source: The American Consulate - Shenyang, China
  Date: February 16, 1994

China Liaoning international products expo '94 will be held in
Shenyang, the capital city of Liaoning province, on june 23-28, 1994.

Venue: 		Liaoning industrial exhibition hall (Shenyang, China)

Organizers: 	Liaoning Chamber of International Commerce
		Liaoning International Commercial and Trade Center
		Liaoning International Fair-Preparatory Committee

Sponsors: 	Liaoning Provincial Planning Commission
		Liaoning Provincial Industrial Production Commission
		Liaoning Exhibition and Trade Cooperation
		Commercial  Bureau of Liaoning Province
             	Commercial Bureau of Shenyang City
		Liaoning TV Station
		Liaoning Daily Press

-
Around 400 booths are available for the exhibition.

-
The exhibition scope: light industry products, home electrical
appliances, garment and textile, hand crafts, glass, plastics, paper
producqs, watches and clocks, gifts in general, stationery, kitchen
wares, baby supplies, fashion, lighting, cosmetics and jewelry,
consumer goods, modern office appliances, electro-machinery, computer,
medical apparatus and instruments, packing and color printing, plastic
molding machinery, foodstuff making, building materials, farming tools,
leather processing, paper making, wood working, car repairs,
accessories & parts, etc.

-
Arrangements will be made for business talks between visiting
exhibitors and local government authorities and a wide range of
business representatives during the exhibition.

-
Booth costs and base services:  one international standard: 9 square
meters (3 by 3) for usd 2,500.  one international standard: 12 square
meters (3 by 4) for usd 2,600.  These booths include: 3 wall partition,
1 carpet, 1 fascia board with company name, 2 spotlights, 1 desk, 2
chairs, 1 socket, 1 waste basket, and 1 ashtray.  The following
assisting services are also included: a) consulting and liaison
service;  b) advertising and pamphlet distribution;  c) customs
declaration and transportation;  d) exhibition appliances rental
services;  e) 24 hour security and booth area cleaning up;  and f)
arrangement for reception, hotel and urban transportation.

Application procedure:  a. applicants are required to fill in the
application form and mail or fax it with the list of exhibits to:
Liaoning Chamber of International Commerce / China Liaoning
International Commercial and Trade Center / 56 Beiling Dajie /
Shenyang  110032, China / attention: mr. Jiang Hongbin.  Tel:
(86)(24)686-4806 or at night 271-9420.  Fax: (86)(24)686-4791.
Application forms and notes to exhibitors may be obtained from the
Liaoning Chamber of International Commerce or US&FCS Shenyang.

b. On receipt of the application form, the organizer will provide
detailed information and materials concerning the exhibition and
exhibit transportation agencies for exhibitors. 

c. Exhibitors should  pay fifty percent of the cost for exhibition 
booth(es) to Liaoning International Commercial & Trade Center by 
telegraphic transfer by March 20, 1994.  The other half will be settled 
one week before the exhibition is open.  
Bank reference:  Huanggu District Sub-branch, Bank of China
US dollar account number: 824058 lictc.  
Address: 94 Huanghe Nan Dajie, Huanggu District 
Shenyang  110032, China.  

Tel: (86)(24)684-7935.

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2) SHENYANG INTERNATIONAL FOOD & PACKAGING MACHINERY EXHIBITION..96 lines
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Source: The American Consulate, Shenyang, China
  Date: February 7, 1994

1. The Shenyang International Food & Packaging Machinery Exhibition
will be held in Shenyang, Liaoning province, P.R. China on October
14-18, 1994.

2. The exhibition is organized by CCPIT Shenyang sub-council, Shenyang
International Exhibition Corporation, and Liaoning Provincial Food
Industry Association, cooperated by Liaoning Provincial Light Industry
Bureau, Liaoning Provincial Grain Bureau, Liaoning Provincial Packaging
Techniques Association, Shenyang Municipal Grain Bureau, Shenyang Light
Industry Engineering Industry Company, and Liaoning Provincial
Commercial Department.

3. General information:  
                  Venue: Liaoning Industrial Exhibition Hall
                Move-in: October 11-13, 1994 
Exhibition commencement: October 14-18, 1994
            Dismantling: October 19-20, 1994

4. Scope of the exhibition:
        - cake, biscuit, sweets machinery
        - beverage machinery
        - grain and oil processing machinery
        - dairy products processing machinery
        - meat and aquatic processing machinery
        - wine-brew machinery
        - sugar refining machinery
        - can equipment
        - flavor machinery
        - starch processing machinery
        - related packaging machinery

5. Participation procedures:  
     Application form available upon request to:
     Shenyang International Exhibition Corporation, 
     Room 512, Guest House of Liaoning Broadcasting & TV Bureau 
     3a Siping Street, Heping District 
     Shenyang, Liaoning  110003 
     P.R. China.  

     Tel: (08)(24)387-2604.  Fax: (83)(24)272- 5293, 271-5263.  

6. Terms of payment: Fifty percent deposit of the total rental fee must
be made by a bank telegraphic transfer or crossed postage check in
U.S.  dollar to the organizer under the stipulation in the invoice.  No
booth space will reallocated until deposit has been received.  The
remaining balance must be settled before august 30, 1994.  Deposit
should be sent via t/t to Bank of China Shenyang Branch payable to
Shenyang International Exhibition Corporation.  The account number is
14824251.

7. Freight transportation
    Official Forwarder for shenyang Food & Packaging '94
    Schenker (H.K.) Ltd.
    Room 3801-3805, 38/f
    China Resources Building
    26 Harbor Road, Hong Kong
    Tel: (585-9688, Fax: 824-0328

8. Introduction to the environment:

a. Liaoning province is situated in the southern part of northeast
China, and is the center of industry, trade, finance, culture,
circulation of commodities, transportation as well as telecommunication
in the northeastern part of China. the provincial capital city is
Shenyang.

b. Food and packaging industries are major sectors in Liaoning's
economy.  At present, the total number of food industrial enterprises
in Liaoning province is 2,683.  The complete food industrial system has
been shaped, including 24 trades (grain and oil processing, cake, soft
drink, beer, wine-brew, can, sugar, dairy products, flavor,
salt-making, cigarettes, butcher and meat, aquatic product processing,
etc.)

c. Though the province spent 35 million usd on importing advanced
equipment in the past few years, there still exists the problem of
backward technique and out-of- date equipment in some food
enterprises.  Only a few of them in some trades have reached or
approached international levels.  The innovation of equipment is much
needed in 90 percent of medium-sized and small -sized food industrial
enterprises.

d. During the fourth year of the eighth five-year plan ('91-'95), the
government of Liaoning has called on the industry to update its
technology level and replace its existing machinery.  Over ten million
usd will be spent on importing equipment.  To import excellent
technology and equipment from abroad becomes more necessary and
important.  The Shenyang Food & Packaging '94, which is fully supported
by both the municipal and provincial governments, will play a key role
in this effort. 

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3) '94 METRO AND LIGHT RAIL TRANSIT EXHIBITION 
    TO BE HELD IN TIANJING, CHINA.............................48 lines
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Source: U.S. Embassay, Beijing, China
  Date: February 9, 1994

'94 International Metro And Light Rail Transit (LRT) Exhibition
will be held on may 17-21, 1994 in tianjin, China

1.  Urban traffic congestion has long been a problem in China.  One way
China is trying to eliminate transportation bottlenecks is through the
development of subway systems, and this  emphasis has opened up the
market for the metro and light rail transit industry.  At this point, 7
cities have received governmental approval for their metro projects:
Beijing (metro), Shanghai (metro), Guangzhou (metro),  Qingdao (metro),
Tianjin (metro), Chongqing (LTR) and Shenyang (LTR).  For the following
cities, governmental approval is pending:  Nanjing (metro), Chengdu
(metro), Xi'an (metro), Shenzhen (LRT), lanzhou (LRT), Beijing (LRT),
Dalian (LRT), Changchun (LRT), Harbin (LRT), Anshan (LRT) and Wuhan
(LRT).

2.  Construction on the Tianjin metro, the second largest metro system
in China, was started in 1972 and completed two years later.  The metro
line's total distance is 7.4 km.  In 1992 the State Planning Commission
(SPC) approved plans to expand and reconstruct the existing line:
namely to renovate the present line as well as to add another 10.24
km.  This project is financed under an Australian Government loan of
USD 110 million.  Of the total loan, 15& may be allocated for the
purchase of vehicles, signalling equipment, communication equipment,
and power equipment from third party countries (total investment is RMB
2.499 billion, of which RMB 1.8 billion is from domestic sources)

3.  The '94 international Metro and Light Rail Transit Exhibition will
be held on May 17-21, 1994 in Tianjin International Exhibition Center,
Tianjin, China.  The organizers are: Metro and LRT Research Center of
China's Ministry of Construction, Tianjin Metro Administration Office,
Tianjin International Exhibition Center, and Tianjin Kenwall
International Trade and Exhibition Co.  Ltd.  The sponsors are: China
Metro Design Company, Tianjin Municipal Engineering Bureau, Tianjin
Public Utility Bureau, and Beijing Metro Company.

4.  Interested companies may contact:

    Mr. Dong Shulin or Mr. Chen Hengyuan
    Metro and LRT Research Center, Ministry of Construction
    Baiwanzhuang, Beijing 100835, China
    Tel: 86-1-839-3771 or 86-1-832-0625
    Fax: 86-1- 839-3333
    Application deadline is April 30, 1994.

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C) CHINA'S FIRST NATIONAL COMPANY LAW 
             OPENS DOOR FOR FOREIGN BRANCHES....................78 lines
------------------------------------------------------------------------
Source: The American Embassy - Beijing, China
  Date: February 15, 1994

SUMMARY:  The first nationwide Chinese company law, adopted at the
end of December 1993 and scheduled to go into effect July 1, 1994,
contains a chapter authorizing the establishment by foreign companies
of branch offices to engage in productive and operational activities.
Such offices would permit foreign companies to do business directly in
China without having to incorporate a Chinese entity.  While the law
provides the legal foundation for branch offices, we understand that
the administrative procedures and governing policies for allowing
branch offices have not yet been determined. 

CHINA'S NEW COMPANY LAW
-----------------------
1.  The law of the People's Republic of China on companies (The Company
Law) contains 230 articles divided into 11 chapters: general
principles; the establishment and organizational structure of limited
liability companies (youxian zeren gongsi), including wholly state-
owned companies (guoyou duzi gongsi); the establishment and
organizational structure of companies limited by shares (gufen youxian
gongsi), the Chinese term for which is also sometimes translated as
joint stock limited liability companies; company bonds (zhaiquan);
company finance and accounting; merger and division of companies;
company bankruptcy, dissolution (jiesan) and liquidation (qingsuan);
branch offices of foreign companies; legal liability; and supplementary
principles.

2.  The U.S law firm Baker & Mckenzie is supplying post with an English
translation of the company law, which we will forward to ita/oph.
Branch offices a new form of doing business in China
----------------------------------------------------

3.  Under current Chinese law, American companies are limited to either
(a) establishing a resident representative office that can only engage
in "liaison activities" and is prohibited inter alia from concluding
sales contracts, conducting marketing or providing after- sales
services, or (b) forming a joint venture with a Chinese partner or
setting up a wholly-owned Chinese subsidiary (collectively referred to
as foreign investment enterprises).

4.  The company law will permit foreign companies to establish branch
offices to engage in productive and operational activities ((shengchan
jingying huodong).  In order to set up a branch, foreign companies are
to apply to the relevant Chinese agency (not specified), providing a
copy of its articles of incorporation and evidence of registration in
its home country.  After approval, it must register, presumably with
the state or local administration for industry and commerce, and obtain
a business license.  The application and registration procedures will
be separately stipulated by the state council.

5.  Foreign company branch offices are not Chinese legal persons, but
must observe Chinese laws and bear civil liability for their activities
in China.  

6.  Under U.S. law and practice, the advantages of doing business
through a branch office rather than setting up a locally incorporated
company primarily have to do with ease of establishment, making changes
in ownership and termination of operations.  The branch is an extension
of the head office, or parent.  Capital is provided by the parent, the
parent is the taxpayer (with the branch taxed as a local business), and
the parent is legally responsible for the actions and liabilities of
the branch. It is not known to what extent China will adopt a similar 
view of and treatment of branches.

7.  The branch office option presents another advantage in China.  It
could be the vehicle -- or one of the vehicles -- through which China
begins to permit foreign companies to engage in direct sales of goods
other than those manufactured locally, and after-sales servicing.  At
present, representative offices and foreign investment enterprises are
restr1cted from engaging in such activities to varying extents.  Since
no legislation or policies yet govern the scope of branch office
activities, China can write the rules on a clean slate, so to speak.

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D) EDITOR'S NOTE...............................................16 line
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    Due to an editting error in the February 14 issue of the China 
Import/Export News, the sources of the news section were not included.
The news items in that issue were from China Daily Newswire. Here we
sincerely express our apology to China Daily Newswire. 

    Currently, our China Import/Export News is a free publication
form the ChinaLink Club, operated by a group of volunteers interested
in China-related business information service and experience. Our 
editors work on a totally voluntary basis. Other operating expenses 
are kindly sponsored by Televendor Company. To keep the newsletter
free and informative to our more than 1,000 subscribers, contributions 
and help from readers are much  needed. If you would like to work as 
an editor, please contact us at [email-masked] with the SUBJECT: 
HELP by e-mail.  Also, any comments and suggestions would be greatly
appreciated. 

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