Multiple banks in Shenzhen, China, have recently required customers to make reservations in advance if they wish to withdraw over 50,000 yuan (around $7,500 USD) in cash. Some banks even require reservations for withdrawals of over 20,000 yuan. Bank staff say this is to avoid scenarios where too many customers withdraw cash on the same day, leading to cash shortages at the banks.

Reporters at Southern Metropolis Daily have found that, at some Shenzhen banks, withdrawals of sums under 20,000 yuan can be made at ATMs, withdrawals of between 20,000 and 50,000 yuan can be made directly at the counter, and withdrawals of over 50,000 yuan require an advance reservation. Large withdrawals may require banking customers to document their intended use for the cash.

Specific withdrawal limits vary between banks. China Merchants Bank requires advanced reservations for withdrawals of over 20,000 yuan, whereas Shenzhen Rural Commercial Bank only requires it for sums of over 100,000 yuan. Hangzhou Bank requires proof of intended use for sums of over 200,000 yuan. China Construction Bank requires advance reservation (via an app) and approval for over withdrawals of over 200,000 yuan.

Staff at the Bank of Beijing and the Industrial Bank branches in Shenzhen said the 50,000+ yuan reservation requirement aims at preventing customers from making sudden large withdrawals. Such withdrawals could result in the branch having insufficient cash on hand. Customers are required to provide details when making their withdrawal reservation.

A branch manager at Postal Savings Bank said that reservations for next-day withdrawals must be made before 3pm.

A bank in Jilin province previously required police approval for withdrawals of over 20,000 yuan. This drew public controversy. The bank said that the requirement was for anti-fraud purposes.

The Southern Metropolis Daily report notes that bank staff will generally allow withdrawals after assessing the customer’s recent transaction activity, and that the process aims to be efficient for customers.

Source: Central News Agency (Taiwan), June 15, 2024
https://www.cna.com.tw/news/acn/202406150113.aspx

Many listed companies in China have recently received notices that they must pay back taxes from several years ago. Some back taxes date as far back as 30 years and amount to hundreds of millions or even billions of yuan. Private enterprises have gone silent after hearing this news, with some announcing that they will cease operations. Last week, seven large companies in Guangdong went bankrupt, including some that had been operating for 30 years.

A recent announcement that companies need to pay back taxes over a 30-year period has caused unease among many enterprises in China and has drawn public attention. On June 13th, VV Drink Co. announced that it had received a notice from China’s tax bureau requiring the company’s former subsidiary to pay over 85 million yuan in unpaid consumption taxes dating from 1994 to 2009. Other companies like Shanghai Shunho New Materials Technology Co., Peking University Healthcare Corp., ChinaLin Securities Co., and LianTronics followed with similar tax repayment announcements, with BoHui Chemical Technology Co. ordered to pay 500 million yuan (US$ 69 million) and consequently issuing a production halt notice.

A lawyer commented that retroactively taxing companies on the past 30 years presumes guilt and violates administrative law principles. He stated that China’s economic downturn has severely reduced government fiscal revenue, leaving tax collection as their only income source, but that pursuing more taxes will only force more private enterprises out of business and increase unemployment.

The report notes examples of companies in Guangdong being taxed retroactively for 20-25 years. A banker noted that, despite local government salary cuts, governments are still in need of more tax revenue due to strained finances. Concerns were raised that taxing private enterprises so heavily could threaten livelihoods.

Source: Radio Free Asia, June 18, 2024
https://www.rfa.org/mandarin/yataibaodao/jingmao/ql2-06182024033604.html

China has a South–North Water Transfer Project to channel fresh water from the Yangtze River in southern China to the more arid and industrialized north, with Beijing as one of the destinations for water transfer. Xinhua reported that by June 12, the project has transferred 10 billion cubic meters of water to Beijing since December 2014 when the first phase of the project started operation.

According to Xinhua, the “southern water” piped in from the Yangtze has met the water quality requirement and directly benefited over 16 million people. It has become the main water supply source for Beijing. However, despite the “southern water” supplying Beijing, the megacity continues to face a severe water shortage.

Source: Xinhua, June 12, 2024
http://www.news.cn/politics/20240612/8bbcbe099a2c44b991261c19d9d1b2fa/c.html