Award to CPO for Italy-China Cooperation

CPO & Partners has been honored with another prestigious award, following the recent recognition received from Jiaxing Nanhu District. During the ‘Invest in Shanghai – Share the Future’ event held on 10 April in Milan, organized by the Lingang New Area Industrial Park located in Shanghai to promote foreign investments in the Park, CPO was awarded along with other entities as a ‘Bridge for Italy-China Cooperation’.

The recognition acknowledges CPO’s networking activities aimed at introducing Chinese industrial parks to potential foreign investors, serving as a connection bridge and support channel between Italian businesses and Chinese development zones.

CPO & Partners was honored to participate as a guest at the 2025 Jiangsu Nantong Su-Xi-Tong Science & Technology Park Investment Promoting Conference in Shanghai.

An insightful event focused on international cooperation, investment opportunities, and innovation. Grateful for the opportunity to exchange ideas and strengthen business relations between Europe and China.

#CPOPartners #InternationalBusiness #Investment #China #GlobalExpansion

CPO & Partners was awarded the Nanhu District of Jiaxing, Excellent Partner

Last 10 January 2025, a delegation of CPO Shanghai was invited to visit the complex of the People’s Government of Jiaxing City’s Nanhu District, to attend the 2025 Nanhu District Investment Promotion Conference and receive the award of Excellent Partner. On the occasion, at the presence of the authorities representing the District, Mr. Chen Fangtian, Legal Associate, representing CPO, retrieved the award of Excellent Partner, in recognition of the networking activities organized as an investment promotion ambassador of Nanhu District in China and abroad. Last year, CPO and its Joint Venture Dragon Bridge Investment cooperated with representatives from Nanhu to facilitate the introduction of the District as an ideal hub for foreign investors in China.

In particular, CPO was among the sponsors of the event “Destination Yangtze River Delta: Meeting with Jiaxing, Nanhu District”, held in Milan, Palazzo Clerici, on 5 September 2024 with more than 80 participants whose most part were renowned and excellent Italian SMEs, while both CPO and Dragon Bridge Investment sponsored the event “Shanghai and Jiaxing: A New Opportunity”, activity organized in the context of the November 2024 CIIE (China International Import Expo).

This award brings forth a new year sets to build on past achievements and make further progress in the bilateral investment promotion between Italy and China.

Last 15 November 2024, China’s Ministry of Finance and the State Taxation Administration released the Announcement No. 15 on the Adjustment of Export Tax Rebate Policies, effective from 1 December. It is set to impact the future business planning of local and foreign companies involved in export operations from China to foreign countries, especially in terms of higher costs and lower export volumes.

Two different sets of adjustments were introduced on China’s export tax rebate, incentive system started in 1985 through which refunds are given to exporters on VAT and consumption tax (CT) paid before the export of their products abroad. The first set provides for the cancellation of the tax rebate on 59 items, including copper and aluminium products (plates, sheets, bars etc.), chemically modified oils and fats, and other kinds of metals.

The second set includes a reduction of the VAT rebate rate from 13% (which entailed a full refund of VAT on purchases, being 13% in China) to 9% for 209 items. Refined oils, batteries, photovoltaic products are among the affected categories.

Seen since its inception as a strategic policy to improve the competitiveness of exported goods in the international market, the VAT Tax Rebate (出口退税) system allows exporters to recover VAT on goods intended for export, receiving the VAT paid on purchases (in full or in part, based on the specific VAT refund percentage defined for each customs code) directly into the company bank account, in a relatively short time (1-2 months) from the submission of the necessary documentation relating to export. The Tax Rebate system is applicable both to companies that carry out trading activities and to the manufacturing companies, with different application rules.

Yesterday, 6 November, the meeting “Shanghai and Jiaxing: a New Opportunity” was held as part of the CIIE currently underway in Shanghai at the National Exhibition and Convention Center, a new opportunity for exchange and dialogue between entities linked by common views.

Sponsored by Nanhu District, located in the Chinese city of Jiaxing, China-Italy Chamber of Commerce, Intesa Sanpaolo Bank, Dragon Bridge Investment, and CPO, the event saw the participation, in addition to representatives of the sponsors, of some representatives of Italian companies present in China. The theme of the meeting, a follow-up to the event held last 5 September in Milan with the participation of a delegation from Jiaxing, was the presentation of Nanhu District as an ideal investment hub for foreign players seeking a strategic positioning within the Chinese market.

Despite the ongoing conflicts over state subsidies and other trade-related issues between the European Union and the People’s Republic of China, in 2024 Beijing proved his willingness to foster and improve its trade relations with many European countries. Among them, Spain has been active in recent years towards strengthening the bilateral exchanges with China, as proved last month when Spanish Prime Minister Pedro Sánchez hold an official visit in the Asian country on 8-11 September.

As China’s fifth-largest trading partner within the EU, Spain has all the interest in promoting mutual openness in the trade environment between the two countries, with a total trade volume that in 2023 reached USD 48.58 billion. The economic ties were strengthened during recent years with a series of agreements, among which a Bilateral Investment Treaty (BIT) in force since 2008, a Double Tax Avoidance Agreement (DTA) in force since 2021, and a Social Insurance Agreement, effective since 2018 , this latter is an agreement that for example other European Nations, as Italy, do not have with China. One of the purposes of Sánchez’s visit was to reinforce mutual investments in a different variety of sectors: in this direction goes the deal, announced by the Spanish delegation and worth one billion dollars, signed with the Chinese Envision Group to build a new hydrogen equipment factory in Spain.

On 8 September, the Ministry of Commerce (MOFCOM) of the People’s Republic of China published the Circular No. 568, concerning the establishment of Wholly Foreign-Owned hospitals in selected pilot cities, namely Beijing, Tianjin, Shanghai, Nanjing, Suzhou, Fuzhou, Guangzhou, Shenzhen, and the island of Hainan. This move represents a further development in the process of opening up the country’s health sector to foreign investments, following a similar pilot project that in 2014 introduced the possibility of establishing Wholly Foreign-Owned hospitals. However, due to the stringent requirements imposed on them, the 2014 project mainly prompted foreign investors to channel their resources towards setting up hospitals through Joint Ventures and cooperation agreements with Chinese companies. The new Circular, which do not cover the Chinese traditional medicine field and the mergers and acquisitions of public hospitals, could become a great source of attractiveness for investments in a market of increasing importance, considering the healthcare needs of the rapidly aging Chinese population. To evaluate the effective potential of the new Circular it will be necessary to wait for the specific conditions and requirements, which will be announced separately.

The business regulatory environment in China is in constant evolution, prompting local administrations to understand, manage, and carry out the new regulations issued at the national and provincial level, a task that can be burdensome due to the complexity of the matters involved. Recently, the Shanghai Municipality issued the «Shanghai Action Plan to Adhere to Benchmark Reform and Continuously Create a World-Class Business Environment», whose main intent is to reach a greater optimization of the business environment in China, so as to attract top-quality domestic and international companies.

As a legal and tax consultancy firm with a solid footprint in Shanghai, CPO & Partners went to visit the Jing’an Administrative Service Center to have a meeting with the district administration on the new policies for investment projects found in the «Shanghai Action Plan».

This represents a precious opportunity for CPO & Partners to make inroads into the local regulatory environment, a task that can sometimes be challenging due to language and cultural differences that can create communication hindrances and reduce the exchange benefits. Moreover, dealing with the district authorities is a good way to network with local offices and understand their functioning, in the belief that only by properly knowing the administrative system one can accurately provide consultation, in order to reach a win-win outcome that is advantageous for both parties.

On January 26th, CPO & Partners had the privilege of engaging in a series of productive meetings with government officials in Jiaxing, China. The discussions centered on the diverse investment opportunities available in the region, highlighting Jiaxing’s commitment to fostering a conducive environment in Jiaxing for international business collaborations.

The visit was further enriched by an immersive experience in Science City, a hub of innovation and technology that exemplifies the forward-thinking ethos of Jiaxing. Additionally, we had the opportunity to visit CEBI, a renowned company in the automotive sector, which stands as a testament to the robust industrial capabilities and business-friendly policies in place.

These encounters underline the potential for fruitful partnerships and investments in Jiaxing, reinforcing CPO & Partners’ commitment to facilitating cross-border connections with industrial parks, with the project for year 2024 to create an investment platform for foreign companies that could be guided in the difficult interpretation of rules and choice of the most proper location for their investments. We remain dedicated to exploring avenues that benefit our clients and contribute to the economic development of the regions in which we operate.