[Excerpt] "As large multinational companies (“MNCs”) are continuously extending their Chinese market presence, many are considering moving their Asian-Pacific Headquarters to China. In an attempt to attract MNCs’ Regional Headquarters to Mainland China, the Chinese central government is not only faced with competition from regional hubs, such as Singapore and Hong Kong, but also from internal rivals, such as the Shanghai and Beijing municipal governments.
This article analyzes recently passed regulations on the establishment of Regional Headquarters by MNCs in China at the national and the municipal level. The focus will be on Shanghai’s set of regulations, issued in 2002 and 2003, as well as on the People’s Republic of China (“PRC”) Ministry of Commerce’s Holding Company Provisions, which introduced Regional Headquarters as a new investment vehicle at the national level in February 2004. Particular emphasis will be placed on the November 2004 revisions of the national rules, the difference in approval requirements and business scope of national and municipal Regional Headquarters and the two distinct forms of Regional Headquarters (Investment/Management Company) in Shanghai Municipality."
Benjamin Kroymann, Regional Headquarters Schemes by China’s Ministry of Commerce and the Shanghai Municipal Government: Differences, Limitations, and Possible Combinations, 4 Pierce L. Rev. 67 (2005), available at http://scholars.unh.edu/unh_lr/vol4/iss1/5