OPPORTUNITIES FOR AUSTRALIAN OPPORTUNITIES FOR AUSTRALIAN COMPANIES DOING BUSINESSCOMPANIES DOING BUSINESS

IN CHINAIN CHINA

CHINA LUNCH ROOMCHINA LUNCH ROOMBEC- St George & Sutherland ShireBEC- St George & Sutherland Shire

09 May, 2008.09 May, 2008.

Sarah ChiSarah ChiSEPA WATER AUSTRALIASEPA WATER AUSTRALIA

schi@sepawater.comschi@sepawater.com

INTRODUCTION TO INTRODUCTION TO SEPA WATER AUSTRALIASEPA WATER AUSTRALIA

Sydney based environmental Sydney based environmental engineering companyengineering company

Specialising in the design & Specialising in the design & construction of Industrial construction of Industrial WWTPsWWTPs

First set up in China was 2004First set up in China was 2004 Companies in Australia, NZ, Thailand, Companies in Australia, NZ, Thailand,

China & USAChina & USA

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INTRODUCTION TO INTRODUCTION TO SEPA WATER AUSTRALIASEPA WATER AUSTRALIA

SEPA China Business set up has achieved the SEPA China Business set up has achieved the following:following:– SEPA has successfully set up company in China within SEPA has successfully set up company in China within

4 years, 4 years, – has completed more than 30 waste water treatment has completed more than 30 waste water treatment

project in China, project in China, – Industrial experience including aviation industry, steel Industrial experience including aviation industry, steel

works, power station, textile industry, shipping works, power station, textile industry, shipping deballast, cosmetic & food industry. deballast, cosmetic & food industry.

– The Panyu centralized industrial treatment plant The Panyu centralized industrial treatment plant project (capacity of 30,000cu.m/d) for textile industry is project (capacity of 30,000cu.m/d) for textile industry is the biggest business success in trading with China.the biggest business success in trading with China.

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SEPA PROJECTSEPA PROJECT

AUSTRALIA GOVERNMENT AUSTRALIA GOVERNMENT SUPPORTSUPPORT

SEPA had received tremendous support from Australian SEPA had received tremendous support from Australian Government both Federal and provincial level.Government both Federal and provincial level.

– SEPA had initially joined a number of NSW Business Missions to SEPA had initially joined a number of NSW Business Missions to

China,China,– Through Austrade assistance we have establish business in Through Austrade assistance we have establish business in

China, China, – NSW Minister, Mr David Campbell had inspected our first Turn-NSW Minister, Mr David Campbell had inspected our first Turn-

key project in Panyu during the plant commissioning in 2004, key project in Panyu during the plant commissioning in 2004, – the Australian Consul General, Mr Kevin Magee officially opened the Australian Consul General, Mr Kevin Magee officially opened

our China office in Guangzhou in 2005.our China office in Guangzhou in 2005.

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SEPA in CHINA – 30,000 SEPA in CHINA – 30,000 m3/d Textile WWTP.m3/d Textile WWTP.

FEDERAL GOVT FEDERAL GOVT SUPPORTSUPPORT

MAIN DEVELOPMENT AREASMAIN DEVELOPMENT AREAS

Shanghai – Yangtze River DeltaShanghai – Yangtze River Delta Guangzhou – Shenzhen – Pearl River DeltaGuangzhou – Shenzhen – Pearl River Delta Shandong ProvinceShandong Province TianjinTianjin Northern Provinces – Liaoning, Jilin, Northern Provinces – Liaoning, Jilin,

Heilong JiangHeilong Jiang

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CHINA NEW TAX REFORM CHINA NEW TAX REFORM effect on foreign investmenteffect on foreign investment

The new tax reform had removed tax holiday from The new tax reform had removed tax holiday from Foreign Investment company, new company Foreign Investment company, new company registered from this year, will no longer have the registered from this year, will no longer have the privilege treatment (2 year tax free, 3 year 50% privilege treatment (2 year tax free, 3 year 50% reduction).reduction).

For those company which had been approved to For those company which had been approved to have the tax holiday, will remained as same, but if have the tax holiday, will remained as same, but if the company operation life period is sort then 10 the company operation life period is sort then 10 years, all exempted tax must to be repaid back. years, all exempted tax must to be repaid back.

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CHINA NEW EMPLOYMENT LAWCHINA NEW EMPLOYMENT LAWStarted from 1Started from 1stst January 2008 January 2008

The new employment law has very heavy penalty on company The new employment law has very heavy penalty on company who did not sign employment contract with its employees who did not sign employment contract with its employees (double pay salary rule composed for whole period without (double pay salary rule composed for whole period without contract). contract).

Allow employees have life period employment with a company Allow employees have life period employment with a company who had signed two fixed terms employment contracts. who had signed two fixed terms employment contracts.

Company must give one month notice to employee before Company must give one month notice to employee before terminate a contract, but employee has no need.terminate a contract, but employee has no need.

Compensation payment must be made to employee if a Compensation payment must be made to employee if a resignation was accepted by company, or termination is made resignation was accepted by company, or termination is made by company, or on contract completion (one month wage, plus by company, or on contract completion (one month wage, plus one month per year).one month per year).

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CHINA NEW VISA RULECHINA NEW VISA RULEStarted from 28 March 2008 Started from 28 March 2008

Signal entry visa rule from 28 March 2008. Signal entry visa rule from 28 March 2008.

Visa Notification Form required by New Visa Notification Form required by New employment visa application. employment visa application.

New visa applicationNew visa application

– From 15 April 2008, need return ticketsFrom 15 April 2008, need return tickets– Duration will depend on air tickets bookingDuration will depend on air tickets booking– Hotel reservation in China is required Hotel reservation in China is required – period longer than before.period longer than before.

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ENVIRONMENTAL ENVIRONMENTAL OPPOURTUNITIES IN OPPOURTUNITIES IN

CHINACHINA In developing an Export business:In developing an Export business:

– Do not take on more than you can cope withDo not take on more than you can cope with– Be focused – work to a planBe focused – work to a plan– Lead from the topLead from the top– Be committedBe committed– Do not set unrealistic objectivesDo not set unrealistic objectives– Appreciate that business is conducted in different Appreciate that business is conducted in different

ways in other countriesways in other countries– Be flexible, prepared to learn, be patientBe flexible, prepared to learn, be patient– PerseverePersevere

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GOOD LUCK WITH YOUR GOOD LUCK WITH YOUR EXPORT BUSINESS!EXPORT BUSINESS!

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