Investment program highlights

Minimum investment amount

Investor may invest 250,000 EURO in real estate either as an individual or company purchase. The number of houses is not limited, if the total value of the properties amounts to 250,000 EURO or more. The property once purchased can be rented out.

Family Reunification

Both spouse and children under the age of 21 years old can be included in the investment program. Furthermore, residency can be extended to parents of both spouses. Both the applicant and family members can access the education, healthcare, insurance policies related to pensions and so forth.

Minimum stay per year

None

Investment Eligibility

Applicants need to meet the following requirements:

• Non-EU/EEA country citizen
• Min 18 years old
• No criminal record
• Obtain medical insurance
• Good character

Author: Maria Georgiou

This content appears as a courtesy of Georgios K Georgiou LLC, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information related to its content, please visit www.georgioullc.com

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We highlight the practical elements for enterprises to note when implementing the resumption of work.

1. Closed-loop management

Enterprise should implement a closed-loop pandemic control mechanism that is acknowledged by the authorities. Namely, a closed-loop refers to area zoning and category-based management for different areas to prevent physical contact between different groups of employees such as in production, common areas, or meeting rooms, as well as establishing no-contact with external individuals such as logistic suppliers (external individuals must hold a negative nucleic acid test certificate within 48 hours and on-site negative antigen test results). As result, employers should ensure the employees are segregated into groups, establish the work environment to permit one metre social distancing within the workplace, and restrict or limit physical contact between such groups to isolate positive cases to one group and prevent cluster outbreaks.

2. Emergency response plan

Enterprises shall formulate emergency response plans for COVID-19 outbreaks in the workplace. Any employees with abnormal antigen detection and nucleic acid detection should be reported to the official in charge and the Centre for Disease Control and Prevention. Transportation and treatment of those diagnosed with COVID-19 should be priorly established with the local government and temporary isolation measures should be implemented for close-contact staff. Large enterprise shall set up a shelter in the factory area.

3. Stock of Anti-Pandemic Materials

Enterprises should maintain a stock of anti-pandemic materials and purchase antigen self-test kits, face masks, alcohol-based disinfectants, hand sanitizers, infrared thermo-detectors, thermal imaging detectors, protective suits, goggles, disposable gloves, etc. whenever necessary. A minimum supply of anti-pandemic materials for 14 days is recommended. All used protective items shall be disposed properly and safely.

The Guideline also adds that enterprises should resume work and production under the guidance of district governments on a “one-on-one” basis. We suggest that enterprises consult with professionals to ensure the resumption of work is compliant with the local guidelines and district government.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

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Getting right personal information protection and maternity leave

Currently, companies worldwide are called by both domestic and international regulations to become corporate citizens rather than merely profitable entities. In China, 2021, domestic legislation focused on data and cyber protection and introduced measures to support the third-child policy. Namely, Personal Information Protection Law (“PIPL”), effective from November 1 2022, obligates companies to strengthen personal data handling, process, and storage, and from late November, provinces and municipalities across China extended maternity leave to support the 3-child policy (announced on May 31, 2021, following the Chinese Communist Party Politburo meeting chaired by President Xi Jinping). As a result, in 2022, human resources (“HR”) across China should diligently implement plans to comply with such changes and obligations.

At Horizons, we have been working with clients to adjust employee policies and summarise the main aspects for human resources to practically implement changes.

Personal Information Protection Law

PIPL is the first legislation to address misuse of personal data and sets forth mandatory requirements for companies processing such data. Though data handling related to human resources do not require the employee’s consent, PIPL does introduce stricter obligations for those handling sensitive personal information, such as biometrics, religious beliefs, medical and health and so forth. Namely, companies shall obtain specific consent and inform such individuals of the necessity and impact on their rights and interests. Therefore, companies should audit the existing personal information processing systems to gain a comprehensive employee data overview and, if necessary, draft specific consent forms aligned with PIPL.

Equally, companies may only transfer personal information outside mainland China by fulfilling provisioned conditions. Under PIPL, such conditions are generally outlined and require further guidelines for companies to proceed ahead. We suggest HR keep abreast of forthcoming related guidelines, especially those handling large volumes of personal information that meet a threshold set by the National Cyberspace Authority.

Maternity Leave

In late November 2021, parental leave extensions were adopted in Chinese cities and provinces to stimulate the 3-child policy. Extended leave policies aim to reduce the burden of childbirth and childcare. The extended number of days varies from province to province or city to city, for example in Shanghai, maternity leave is extended to 158 days. For companies, the amended policies shall directly impact employee leave policies and workforce planning and costs to cover extended leave.

We suggest that companies should conduct an employee consultation process before any amendments are made to employee leave policies and ensure employees are entitled to the legally allocated number of leave days. Namely, clear specification of the type of leave and number of days such as maternity leave, paternal leave for working parents and carer’s leave. In this manner, companies can reduce the risk of labour disputes since the amendments are consented by employees and legal blinding.

Both PIPL and extended maternity leave reflect Environment Social and Governance (“ESG”) principles emerging in China. As an important international topic, we anticipate ESG to be present in forthcoming legislation in China, however, governed by President Xi Jinping Thought on Socialism with Chinese Characteristics.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

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Deng Xiaoping initiated the Reform and Opening Up policy and opened the door to the world in 1978. As a result, China’s GDP rose from 367.9 billion yuan in 1978 to 15.45 trillion yuan in 2020 and lifted China from a third-world country to becoming a global economic superpower.

In the last 40 years, China’s significant economic growth has increased its role in the world both as a trade and investment partner and as an international Institution member in the United Nations (1945), World Trade Organisation (2001), and World Bank (1980). As a result, China holds a more influential and significant role in the world today than 40 years ago and more recently demonstrating a more mature and assertive stance.

Internationally, China has increased activism and assertiveness within international institutions (“Institutions”) in recent years. Specifically, China increased engagement in formulating policies and positions within the Institutions and increasingly utilised such Institutions as platforms to articulate its’ position. Equally, today’s institutions represent a broader range of countries with different priorities, needs, and interests than the founding members. Therefore, Institutions are increasingly evolving from the post-second world war era, in which the USA played a primary role in the founding principles of the Institutions.

Domestically, China has adopted a collection of legislation to strengthen the national sovereignty and interests, including:

• The Cyber Security Law of the People’s Republic of China effective from 1 June 2017
• The Export Control Law of the People’s Republic of China effective from 1 December 2020
• Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and other Measures, effective from 9 January 2021
• The Anti-Foreign Sanctions Law of the People’s Republic of China effective from 10 June 2021
• Data Security Law of the People’s Republic of China effective from 1 September 2021

For companies and individuals doing business in or with China, such legislation defines business operations – especially cross-border activities in several areas.

With a rapidly growing middle-class in China, the Chinese market for many companies is an increasingly important and growing market segment. Therefore, companies either invested or planning to invest in the Chinese market cannot disregard national sovereignty and interests’ compliance within their business operations. Below, we highlight the three key areas of national sovereignty and interests’ compliance applicable to companies doing business in or with China.

Cyber and data security

Cybersecurity for many countries is a top national priority to maintain secure networks and protect data from cyber-attacks.

In China, cyber security is centred on the security of the collected data, and companies are obliged to ensure networks collecting and processing the data are secure, monitored and shall not endanger national security or sovereignty.

The Cyber Security Law of the People’s Republic of China (“CSL”) and Data Security Law of the People’s Republic of China (“DSL”) are two primary legislation governing cyberspace and affect all companies working with data collection, processing, and management in China.

Cyber Security Law

The CSL establishes the compliance framework for network operators and is the overarching law for cybersecurity.

Under CSL, the network operator is defined as owners and administrators of the network and network service providers and obliged to ensure servers and data stored, transmitted, or created on such servers are secure and protected from cyber-attacks. Furthermore, the CSL outlines a Critical Information Infrastructure (“CII”), which subjects information crucial to national security and economy to store the collected and produced personal information and important data within the territory of mainland China. Any data required to be transmitted aboard shall be conducted under measures of the Cyberspace Administration of China.

Data Security Law

DSL sets forth an overarching framework to regulate data handling and management accordingly with national sovereignty, security, and development interests.

Under the DSL, the scope and definition of data include any record of information in electronic or other forms and imposes an extraterritorial application to China-related data handling and management.

Organisations and individuals are obliged to ensure and formulate data management policies, cooperate with public security and national security organs that require their data for national security or criminal investigation. Mismanagement of data, specifically those handling important data could face significant liabilities for both the company and individual.

Export Controls

Prior to the adoption of the Export Control Law of the People’s Republic of China (“ECL”), export controls were scattered across several laws. The ECL is the first comprehensive framework establishing export controls, a list of controlled items, and provisioning extra-territorial application to individuals and organisations outside of China who endanger national security and interests.

Under the ECL any export of the controlled items from an individual or organisation within the territory of mainland China to an overseas individual or organisation is subject to certain obligations including obtaining the relevant license from the State Export Control Authorities. Controlled items are defined under the ECL as the following:

• Dual-use items which can be for civil and military purposes or helping to improve military potentials, especially goods, technologies, and services in design, development, production, or application utilised for weapons of mass destruction;
• Military products comprising of equipment, special production facilities, and other related goods, technologies, and services utilised for military purposes;
• Nuclear materials, including nuclear equipment, non-nuclear materials used for nuclear reactors, and related technologies and services;
• Technical materials and data related to the items listed above.

For companies with an international supply chain or engaged in cross-border research and development, the ESL has a significant impact on exporting operations. For example, foreign items containing components assembled or manufactured in China could be deemed as controlled items or cross-border research or technology transfer, activities such as research, inter-company research (where the research and development centre are in China), or technology sales to foreign enterprises could be classified as related technical material and data – thus subject to export control.

Addressing sanctions

In 2021, China addressed the application of foreign legislation and sanctions to Chinese individuals and legal entities both within and outside of the territory of China. Two main legislation were enacted and established a stricter stance against foreign economic sanctions against Chinese organisations and individuals.

Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and other Measures

Early this year, the Rules on Counteracting Unjustified Extra-Territorial Application of Foreign Legislation and other Measures (“Rules”) were promogulated by the Ministry of Commerce. The Rules provision a working mechanism for Chinese companies and individuals affected by extraterritorial foreign legislation that prohibit or restrict engagement in normal economic, trade, and related activities with a third State (or region) or its citizens, legal person, or other organisations. Affected individuals or entities are required to such matters to the State Council within 30 days. The State Council shall issue a prohibition order to oppose an unjustified extra-territorial application of foreign legislation and other measures.

Foreign companies in China especially multinationals should note the Rules stipulate any Chinese entities who comply with the unjustified extra-territorial application of foreign legislation subject to a prohibition order can be pursued in court.

The Anti-Foreign Sanctions Law of the People’s Republic of China

The Anti-Foreign Sanctions Law of the People’s Republic of China (“AFSL”) establishes the regulatory framework for foreign persons, both legal entities and individuals, acting against China’s national interests. Under the AFSL, organisations, individuals, and affiliated individuals who directly or indirectly participate in formulating, deciding, and implementing discriminatory restrictive measures against China shall be included in a Sanctions List (“List”). Those included in the List shall be subject to penalties including visa restrictions, prohibitions, or restricted conduct in transactions, cooperation, or other activities with Chinese organisations or individuals. Therefore, for foreign companies and individuals doing business in or with China, AFSL significantly impacts external conduct and communications, and public relations.

Whilst some may view a more assertive China negatively, China’s international significance and role cannot be disregarded. Specifically, in the business world, companies involved in the Chinese market should evaluate their full operations and third parties’ relations and update relevant policies or establish China-specific policies, otherwise risk legal penalties and economic losses. Unless companies forgo the China market completely, the recent legislative movements in strengthening national sovereignty and interests should be reflected in company operations and policies. Companies generating business from China cannot disregard China’s principles around national sovereignty and interests.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

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The Personal Information Protection Law of the People’s Republic (“PIPL”) takes effect from 1 November 2021. Companies engaged in processing the personal information of individuals located in China are obliged to implement necessary measures.

Below, we highlight the mandatory requirements for foreign companies under the PIPL:

1. User Consent

Under PIPL, companies may only collect personal information when the individual’s consent is obtained. The consent shall be voluntary and the individual shall be explicitly informed. Individuals can request how their personal information is collected, stored, and require such information to be corrected and deleted.

Companies processing personal information (‘the processors’) are obliged to allow the individual to decline. When users withdraw their consent, the processors shall halt the collection or promptly delete the collected personal information.

Companies outside of China are not exempted from PIPL. Any company outside of China and processing the personal information data of individuals in China can be subject to PIPL. Specifically, PIPL outlines the following circumstances for companies outside of China:

• Where the purpose of the activity is to provide a product or service to an individual located within China;
• Where the purpose of the activity is to analyze or assess the behavior of an individual within China; or
• Any other circumstance as provided by law or administrative regulations.

Practically, companies outside of China should conduct a risk assessment of their personal information database.

2. Equal treatment for consumers

PIPL forbids companies from utilising automated decision-making functions to increase online sales. A company cannot implement unreasonable differential treatment of individuals – such as prices or terms. In other words, special discounts for new customers cannot be utilised, without reasonable grounds. Individuals shall also have the option to withdraw from any push marketing based on automated decision-making.

3. Stricter stance to sensitive personal information

The PIPL classifies the following as sensitive personal information and companies may only process such data for a specified purpose.

• Religious beliefs;
• Biometrics;
• Specific identities, medical and health;
• Financial accounts, whereabouts and other information of a natural person;
• Personal information of minors under the age of fourteen

Companies shall adopt strict measures to protect such data and inform the individual of the necessity and the impact on their rights and interests. For personal information of a minor under the age of fourteen, processors shall obtain the consent of a parent or guardian of the minor.

The stricter stance towards data collection of sensitive personal information significantly affects human resources and educators (minors under the age of fourteen). We advise such departments to align data management policies under the PIPL provisions, without any further delay.

4. Cross-border data transfers

Under PIPL, companies may only transfer personal information outside of mainland China by meeting one of the following conditions:

• Where a security assessment organised by the national cyberspace authority has been passed;
• Where a certification of personal information protection has been provided by a professional institution, under the regulations of the national cyberspace authority;
• Where a contract in compliance with the standard contract provided by the national cyberspace authority has been concluded with the overseas recipient, establishing the rights and obligations of both parties; or
• Where any other condition prescribed by law, administrative regulations, or the national cyberspace authority are met.

For companies, especially multinationals working with the personal information of employees and suppliers located in China, implementing the provisions to transfer personal information is essential to avoid penalties.

PIPL shall significantly affect businesses processing the personal information of individuals located in mainland China. Particularly, PIPL stipulates specific rights of individuals in activities related to the processing of personal information, including the right to access and make copies of the personal information processed.

Violators can face fines up to RMB 50 million (US$7,74 million), or up to five percent of annual turnover. Violators located outside of mainland China may be included in a blacklist and publicly announced.

Therefore, we recommend companies doing business in or with China to conduct a data mapping assessment including a thorough review to identify which data is collected, stored, process, and employee access to such data. Data management policies should be revised and relevant training provided to employees, so that PIPL is correctly implemented into the company.

This content appears as a courtesy of Horizons Corporate Advisory, a proud member of the China Collaborative Group (CCG Association). It is informational in nature and does not constitute legal advice or establish an attorney-client relationship between you and its author, publisher or any member of CCG. For more information, please visit www.horizons-advisory.com. 

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Less than 30 days till the world’s largest import-themed expo, CIIE will be held in Shanghai from 5-10 November and CCG has been invited to exhibit for the second time.

CCG is made up of business and legal advisors who work together to provide clients with smart corporate solutions that effectively facilitate cross-border activities, CCG is honoured to participate again in this prestigious event.

PRESIDENT XI JINPING first announced the CIIE annual trade fair at the Belt and Road Forum for International Cooperation in 2017, with the first expo held in November 2018. With foreign direct investment (“FDI”) in the mainland rising year on year, CIIE is pivotal in assisting foreign goods and services launching in China and reaching Chinese consumers. Equally, the high international media coverage coupled with national and local government support offers foreign companies a crucial platform to generate business opportunities, strengthen international trade and cooperation with key industry players.

As part of the exhibition, CCG will highlight and discuss the most recent trends in laws and rules for foreign companies engaged in or with China.

With the consistent changing business landscape, businesses face challenges in navigating through numerous regulations. Many cross-border investment issues remain steeped in cultural and language barriers, especially for investments in unfamiliar jurisdictions, such as China. CCG offer foreign investors engaged in China a local gateway to facilitate their investments. CCG leverages multidisciplinary professionals to allow the client to speak with a local advisor in the comfort of their home country or region and erase language and cultural difficulties. The local team continuously follows the investment, so the controlling dashboard of the investment in China is always in the investor’s hands.

Dr Roberto Gilardino, CCG President

“For CCG, our participation at CIIE enables us to be amidst the action and within the significant exchange of western and Chinese entrepreneurs. As a result, the priority is to seize the opportunities, further our understanding of decision-makers and generate business projects. Equally, we remain committed to providing practical advice to our clients, which extends beyond the mere law and tax opinions and procedures. Our expertise offers clients updated know-how, seasoned experience, and an ability to anticipate challenges. Therefore we remain steeped in reality and practicality as opposed to the traditional approach of the typical law firms.

In 2021 we achieved successful and tangible results from the third CIIE, which propelled CCG’s recognition internationally. In addition, from the connections generated in our participation, we effectively facilitated several acquisitions in 2021. As a result, we anticipate good outcomes from this year’s participation to further projects in 2022. ”

Bas Besseling, Secretary

“CIIE plays a significant role in facilitating the development of professional services. Last year, through our participation of CIIE, we generated strong leads with our global clients and wider network. For many businesses, China is the market to develop and expand in, therefore having CCG professionals structure the investment in a jurisdiction, that is unfamiliar for many investors, enables the investors to focus on the business aspects. We are honored to be invited again to exhibit in CIIE and believe the expo will generate excellent connections with foreign businesses in China.”

Martin Hütte, Treasurer

“Whilst many may be concerned with China closing the doors for foreign business, we believe there is ample opportunity for foreign businesses. Although, the foreign investment landscape in China has significantly changed in the last 40 years. Companies entering China shall be aware of not only the changing market trends but the current legal obligations for foreign investors. CIIE is a fantastic opportunity for foreign companies to present and launch goods and services to Chinese consumers, as well as gain first-hand insights in the market. For CCG this year, we are focused on recent legislation adopted, which impacts both companies aboard and in China.”

Despite the pandemic, CIIE attracted approximately 400,000 visitors, 411 new products, technologies, and services were exhibited, and a total value of 72.62 billion USD in intended deals were signed. This year’s CIIE boasts an exhibition area of 360,000 square meters for enterprises.

If you want to know more about CCG’s participation in CIIE this year, please contact Ms Miranda Dong at hb.dong@theccgway.com. We look forward to you joining our CIIE experience.

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