Finance paper - Essay Example

Export licenses are exempted on businesses trading with spares, assembling and processing of materials for products meant for re-exportation. 54 commodity categories were subjected to export licensing as per 2003. Another way of export restriction is the embargo upon commodities manufactured in prisons. All import and export licenses, approvals and permits are seen to by MOFTEC. On 20th of December 2001 MOFTEC issued an administrative measure on license of import goods to give the procedures of getting a license of export and the documentation accompanying the same.

While making an application for export license, accurate and clear information must be provided. Export quotas that are approved shouldn’t be surpassed and also the assignment of a license for export to other businesses is not allowed. Penalties are imposed in case of a breach. (Cch Asia and Kluwer Law International, 2005) There is a new law of labor in China that calls for enterprises to make a decision by themselves on the means and timing of staff recruitment and the essential requirements.

As per the nations employment procedures a contract of labor has to be signed by both the employer and the employee. To this the employing unit has to approve a written contract of labor with its worker within a month after the worker’s commencement of service- Failure to which where the employee has worked for a period shorter than a year and longer that a month, double the stipulated wage should be paid to him /her per month. Also any unit of employment signing a non-fixed term contract of labor is in violation of the contract of labor and should pay a double wage to employees involved per month since the non-fixed term contract of labor signing.

(HKTDC, 2001) For the purposes of financing projects, government guarantees may be of high necessity. These may be termed as a mother’s milk towards international program’s supplier financing. The form of political and economic risks