Advocacy Actions
Phonecall with the Officer of DG ENV, assistant to Head of Section, EU Delegation to China on Green Deal
EU Delegation
Read moreLobby Letter to the CBIRC on the Regulation of Reinsurance Companies
On 24st February the European Chamber’s Insurance Working Group sent a lobby letter to the China Banking and Insurance Regulatory Commission on the Regulation on the Establishment of Reinsurance Companies (Baojianhuiling [2002] 4) and the Regulation of the Reinsurance Business Management (Baojianhuiling 2010:8, revised in 2015).
Read moreMeeting with Division Chief of the Policy Research Centre of the China Centre for the Promotion of SME Development (ProSME), Ministry of Industry and Information Technology (MIIT)
The European Chamber invited Ms. Xuanyi Song, division chief of the Policy Research Centre at the China Centre for the Promotion of SME Development (ProSME), to talk to our members about the latest updates in policies from China to helping Small and Medium-sized Enterprises (SMEs) survive the impacts on their business during the crisis brought by COVID-19.
Read moreSummary of Challenges for European Business due to the Outbreak of the COVID-19
Upon request of the China Committee of Promotion of International Trade (CCPIT), the European Chamber has reached out to working group members to collect feedback on the impact on business due to the novel coronavirus (COVID-19). More than 100 companies from different sectors provided feedback.
Read moreDiscussion between EUCCC Financial Services representatives and the European Central Bank on the outbreak of COVID-19
On 18th February, the EU Chamber facilitated a telephone call between representatives of A/C Member Banks and the European Central Bank (ECB) on the outbreak of the COVID-19 in China.
Read moreComments to CBIRC on Measures on Implementing Administrative Licensing Items for Non-Banking Financial Institutions
On 13th February, the European Chamber’s Consumer Finance and Non-Banking Financial Institutions Working Group submitted comments to the China Banking and Insurance Regulatory Commission (CBIRC) on Measures on Implementing Administrative Licensing Items for NBFIs (Draft for Comment).
Read moreComments to the SHDRC on Measures on Optimizing the Business Environment in Shanghai (Draft for Comment)
The Legal and Compliance WGs have submitted comments to the SHDRC on Measures on Optimizing the Business Environment in Shanghai (Draft for Comment).
Read moreComments to Shanghai DRC on Optimizing the Business Environment in Shanghai (Draft for Comment)
The European Chamber very much welcomes the Shanghai Municipal Development and Reform Commission and etc.'s decision to collect opinions on the "Guideline on Administrative Adjudication for Patent Infringement Disputes (Draft for Comments)". Upon careful study of the draft and consultation with its members, the European Union Chamber of Commerce in China, led by its Legal Working Group, has collated all member inputs and submitted suggestions to the Shanghai DRC, Shanghai Municipal General Office, SHEITC, Shanghai Municipal Administration for Market Regulation for their consideration.
Read moreComments to CBIRC on Interim Administrative Measure for Financial Leasing Companies
On 9th February, the European Chamber’s Consumer Finance and Non-Banking Financial Institutions Working Group submitted comments to the China Banking and Insurance Regulatory Commission (CBIRC) on Interim Administrative Measure for Financial Leasing Companies (Draft for Comment).
The Working Group addressed issues concerning financing costs, legal system related to financial leasing and after-sale leaseback, credit bureau system, business management, financial ratios, factoring and cross-border guarantees.
The Working Group gave detailed suggestions on how to improve operations for financial leasing companies:
• Banks are advised to provide medium-term financing, i.e. more than 5 years, to reduce pressure on customer cash flows with long-term assets (i.e., large machinery). In addition, we suggest that the concentration risk and transactions with affiliated parties to be soften in terms of the calculation method for concentration, point of time and average balances.
• The mortgage process for rental properties be improved to protect the ownership of the leasing company. In the after-sale leaseback transaction structure, the lessee is not required to issue a receipt (as a voucher to the bank) to the leasing company before making a payment to the bank. We recommend that customers who use a financial lease to complete their equipment purchase should receive a local government subsidy.
• A period to comply with rules for new start-ups in 2019-2020 would be welcomed.
• To facilitate financing for small and medium-sized enterprises, an easy-to-access and integrated credit bureau system should be open to equipment leasing companies to collect customer payment records and financial statements.
• Electronic signatures, direct debits and swipe with barcodes would be important measures to gather information and limit forgery and money laundering.
• The risk asset/equity ratio should be maintained at 1:10. Any reduction in this ratio change will have a significant impact on the ability of equipment leasing companies to finance small and medium-sized enterprises.
• Since European leasing companies are not allowed to obtain (i) cross-border corporate guarantees or (ii) cross-border bank guarantees (or even bank guarantees from their parent companies), the ability of TNCs to invest in new machinery and equipment in China is significantly limited. The Working Group recommends giving this situation a green light and a convenient process. It also recommends that the possibility of cross-border cash pooling to be explored further.
Overall, the Working Group welcome the CBIRC's efforts to strengthen the management of the financial leasing industry, and we can also feel some recent improvements in the financial leasing industry. We always believe that the financial leasing industry for China's economic development and financing of various industries can provide professional solutions, especially for small and medium-sized enterprises. Here, we are ready to spare no effort to share our international experience in all areas to help the Chinese economy further unlock its potential and momentum.