The 2015 deadline is of paramount importance to China, as it also includes Vietnam, which has gradually become an alternative target for production to China. With Vietnamese wages, which currently earn about a third of wages in southern China, the production capacity of products eventually destined for the Chinese market is increasingly finding its way to Vietnam. Details of the China-ASEAN free trade agreement can be found at our ASEAN briefing site, which also contains regular updates to Chinese tax treaties throughout the region. Knowledge of products that can now be manufactured outside China and manufactured at a lower cost, but imported into the country duty-free, is a strategic and economic issue for many manufacturers. Foreign producers are automatically eligible for the ASEAN treaty by staying in an ASEAN nation (such as Vietnam), the qualification requirement being purely geographical. Afghanistan has bilateral agreements with countries and the following blocs: In a joint statement, the heads of state and government of the countries said that the trade agreement would be an essential part of their plans to rehabilitate the pandemic that forced countries around the world to block their economies. China has 11 free trade agreements in force, three of which are under negotiation and three others are under consideration. Many of them are relatively small, although they are useful for companies in the countries that have them, Chile, Costa Rice, Iceland and Peru. The Pakistani agreement is often used in bilateral Sino-pak relations, which are obviously strong, with Pakistan being the main beneficiary of Chinese foreign investment in Southeast Asia, while China also has an interesting free trade agreement with Switzerland, signed in the middle of last year and expected to come into force later in 2014. In particular, Switzerland is not a member of the EU, although it is a member of the European Free Trade Association and has a bilateral agreement with the European Union. Switzerland is one of the few European countries to benefit from a trade surplus with China, and the agreement was China`s first with a continental nation.
Switzerland`s trade surplus with China amounted to about $23 billion in 2012, thanks in part to sales of luxury goods such as watches and chemicals. One of the big winners of the agreement was Nestlé, which, as part of the agreement on reducing consumer prices in China, will pass on the savings needed to make its products more competitive. Nevertheless, the situation can be recovered – but only by companies qualified to do so, and with an understanding of Chinese rules, both from a legal and fiscal point of view. China has always been a tax game for foreign investors in its creative phase. We must pay attention to the details so as not to miss the bilaterally negotiated free trade agreements, which can be of great use. But because the legal and tax professions are effectively divided in China, few law firms are familiar with China`s free trade agreements and, as a result, ignore them when they structure foreign investment in the country. This is problematic because the identification and ability to use existing free trade agreements should often be taken into account in the statutes – and be negotiated in advance with customs and tax officers in China. Otherwise, there may be general tax costs that are far from necessary. Some consultants are also known to have deliberately chosen to withhold such data in order to prevent an CPP investor from becoming interested in external markets and losing his client in another country, perhaps better suited to the client`s needs.