China Cracks Down on Foreign Representative Offices

From Economic Observer Online:

The State Administration for Industry and Commerce (SAIC) is planning to strengthen supervision of the resident representative offices of foreign enterprises in China, according to a source within the department’s Bureau for Registration of Foreign-Invested Enterprises.

Under instructions from the State Council, SAIC has produced draft regulations entitled Registration and Administration of Resident Representatives Office of Foreign Enterprises. The draft regulations are currently being revised and are expected to be approved by the State Council some time in the near future.

“According to recent reports from local bureaus for industry and commerce, the current organization of representative offices of foreign enterprises is rather chaotic,” the source quoted above observed.

The EO has learned that some local bureaus have already begun inspecting local representative offices.

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