Lehman, Lee & Xu - China Oil and Gas in the news

The China Law News keeps you on top of business, economic and political events in the China.
Blawg | Newsletter Archive

In the News

Resource tax will not affect oil price

BEIJING -- The reformation of China's resource tax will not impact China's domestic prices for oil and natural gas, the Ministry of Finance (MOF) and the State Administration of Taxation said Monday.

China's pricing mechanism for oil products is mainly based on the international oil price trend, which would not be influenced by the adjustment of the sales-based tax rates, the two departments said in a joint statement issued on the MOF website.

The domestic oil price is more likely to be influenced by global factors, including international speculation, the exchange rate of the US dollar, and supply and demand in the global market, the statement said.

The State Council, or China's cabinet, announced earlier this month that resource taxes on domestic sales of crude oil and natural gas will be extended from a few of the country's regions to the entire nation starting from Nov 1.

After the adjustments, sales-based tax rates for oil and natural gas will also be raised between 5 and 10 percent, up from the previous 5 percent implemented in northwest China's Xinjiang Uygur autonomous region on June 1, 2010.

The sales-based resource tax for oil and gas was extended to 11 other provinces in December last year.

The adjustment in resource taxes might bring down the profits of oil producers, but it will not affect the market price of oil products or further burden oil refiners and consumers, said the statement.

Earlier this month, the Chinese government reduced retail prices for gasoline and diesel by 300 yuan ($47) per ton for the first time in 16 months amid stubbornly high inflation.

The statement said the government will also keep the market price of domestic natural gas products stable at 1,115 yuan per cubic kilometers.

Web link: http://www.chinadaily.com.cn/bizchina/2011-10/25/content_13969382.htm

China to increase natural gas supply this winter

China's top energy official said on Oct 21 that the country will increase natural gas supply by 20 percent this winter to meet rising demand.

Liu Tienan, head of the National Energy Administration, said that natural gas supply would meet demand this winter even though demand was expected to rise.

Liu said that natural gas was playing an increasingly important role in the nation's energy consumption. Already 150 million people, or 11.2 percent of the Chinese population, have access to natural gas in their homes.

Data shows the country's natural gas output last year reached 94.48 billion cubic meters, rising 12.1 percent year-on-year.

However, Liu noted despite the increasing production, the country's supporting facilities such as storage capacities needed upgrading.

Web link: http://www.chinadaily.com.cn/bizchina/2011-10/22/content_13956015.htm

Local companies selling bunker fuel may double

Bloomberg News

CHINA, with the world's busiest port at Shanghai, may double the number of local companies allowed to sell tax-exempt marine fuel as demand from ships increases.

The Ministry of Commerce is formulating the plan after it received applications this year from five companies looking to sell bonded bunker fuel, Zhou Yiqing, manager of the bunker department at Sinopec Fuel Oil Sales Co, which owns a unit licensed to sell such supplies, said in Beijing yesterday.

China's demand for bunker, or fuel used to power ships, is rising along with the nation's growing need for raw materials and rising export of finished goods. The world's fastest-growing major economy may need more than 20 million tons of bunker fuel a year by 2015, Zhou said.

The five companies that applied for licenses include state-owned China National Aviation Fuel Group Corp, the country's biggest jet-fuel distributor, China Arts Huahai Import and Export Corp and Shanghai Fuel Co, Zhou said. Officials at the three companies didn't immediately respond to telephone calls from Bloomberg News.

Five Chinese firms are now licensed to sell bonded bunker fuel, Zhou said. The companies include China Marine Bunker (PetroChina) Co, also known as Chimbusco, and a unit of China Petroleum and Chemical Corp in Zhoushan, Zhejiang Province.

Web link: http://www.shanghaidaily.com/nsp/Business/2011/10/21/Local%2Bcompanies%2Bselling%2

China Law News



China's legal system gets refined

China Daily

The country's top legislature is removing and modifying "a great number of" administrative and local regulations that run contradictory to the Constitution and national laws, a senior legislator said on Thursday.

"We're cleaning up a great deal of such regulations ... that implicate local interests in every provincial-level administrative region," said Xin Chunying, deputy director of the legislative affairs commission of the National People's Congress (NPC) Standing Committee.

She said the exact number of such regulations will be released when the job is done.

Continue reading at: http://www.chinadaily.com.cn/china/2011-10/28/content_13991844.htm

China's top legislature to read draft amendment of Civil Procedure Law


The Standing Committee of the National People's Congress (NPC), China's top legislature, opened its bimonthly session, during which lawmakers read a draft amendment of the Civil Procedure Law for the first time.

The lawmakers will also review draft laws and amendments concerning mental health, military service and clean-production promotion in the session to run from Monday to Saturday.

The draft resolution on strengthening anti-terrorism efforts, as well as government reports on affordable housing and environmental protection, will also be submitted to the legislature.

The lawmakers will also review reports from the Supreme People's Court and the Supreme People's Procuratorate on promoting justice in judicial systems during the session.

Continue reading at: http://news.xinhuanet.com/english2010/china/2011-10/24/c_131209283.htm

China to increase punishment for violations of work-related illness law

China's top legislature on Monday reviewed an amendment to a law regarding occupational illnesses that sets harsher punishment for violations.

Licensing authorities for construction projects will be given criminal sanctions if their actions violate the law, according to the draft amendment to the Law on Occupational Illness Prevention and Control that was submitted to the National People's Congress (NPC) Standing Committee for its second reading.

The authorities may be fired if they arbitrarily approve licenses for construction projects, the draft amendment states.

The draft amendment states employers who violate the law and do serious damage to an employee's life or health will be fined between 100,000 yuan (15,689 U.S. dollars) and 500,000 yuan. The fine's ceiling was previously set at 300,000 yuan.

Continue reading at: http://news.xinhuanet.com/english2010/china/2011-10/24/c_131209735.htm

China cuts tax to boost small businesses

BEIJING - China carried out major tax cuts on Tuesday designed to benefit the nation's crisis-hit small and micro-sized firms - including street vendors - and also help curb inflation.

The value-added tax (VAT) threshold for small enterprises increased to between 5,000 yuan ($791.14) and 20,000 yuan, in terms of monthly sales revenues, from the previous threshold of 2,000 to 5,000 yuan, according to a statement released by the Ministry of Finance (MOF) on its website.

Meanwhile, the threshold for levying the business tax for small enterprises was raised to 5,000-20,000 yuan from the previous 1,000-5,000 yuan.

The new threshold is designed based on the business traits of small and micro businesses and aims to relieve their tax burden, said Bai Jingming, a researcher with the MOF.

Continue reading at: http://www.chinadaily.com.cn/china/2011-11/01/content_14018198.htm

26 Nations Defy Europe on Airline Emissions

26 Nations Defy Europe on Airline Emissions

China, the United States and 24 other nations backed a declaration on Wednesday urging that their airlines be exempted from the European Union’s Emissions Trading System.

The move at the International Civil Aviation Organization, an arm of the United Nations, is another challenge to environmental leadership by the European Union, which has failed in its efforts to get some of the biggest polluters in the developed world to adopt crucial parts of its agenda for tackling climate change.

The declaration said the European directive was “inconsistent with applicable international law” and that the signatory nations would work together to oppose it.

Continue reading at: http://green.blogs.nytimes.com/2011/11/02/26-nations-defy-europe-on-airline-emissions/

Lehman, Lee & Xu is a top-tier Chinese law firm specializing in corporate, commercial, intellectual property, and labor and employment matters. For further information on any issue discussed in this edition of China Oil and Gas Lawyers Alert or for all other enquiries, please e-mail us at mail@lehmanlaw.com or visit our website at www.lehmanlaw.com.

© Lehman, Lee & Xu 2011.
This document has been created for educational purposes for clients, potential clients and referrers of services to Lehman, Lee & Xu, and to alert readers to the services provided by Lehman, Lee & Xu. It is not intended to serve as definitive professional or legal advice, and should not be relied upon as such. Lehman, Lee & Xu does not endorse any personal opinions which may be contained herein.
We hope that you enjoy China Oil and Gas Lawyers Alert. If you would like us to send you new issues by e-mail each month, please click here to subscribe. There is no charge for this service. If not, please click here to unsubscribe.