international business china

1. International Business - China

2. The currency of China is called Yuan. For the last ten years and later, the China government has
kept the value of its currency to be low artificially. This has been charged by officials and
economies in other countries that have done enough research. The essence of keeping the
value of the artificial currency for that long is to maintain the high level of export that the
country has been enjoying.China’s currency has a strong value, and controls the cash flow for
other overseas enterprises. Other countries, which trade with China, must seek permissions on
the utilization of their currencies. United states are not frustrated in transferring money at any
given situation they want. There is a regulation body in China that regulates its currencies
transaction known as Foreign Exchange administration. The process of currency regulations
includes the following; repatriations or dividends regulations, transactions on the cross border
in relation to customers and vendors, and preliminary capitalization. During the start of
businesses or big companies, once it is established, the business must apply for a certificate of
registration. These will enable the business to transact freely in the country. It will enable it to
receive the currency or send the foreign currency, without any complication.The regulations
provided by China government are that, businesses should maintain a current account, to

3. enable daily transaction including dividends and interests. Non current accounts are strictly
maintained by long term investments, or loans from overseas investors. In the application of
business license in China, one must be in a position to declare the primary wealth of the
business, plus the registered shares and the loans from share holders. This may look easy task
to the business until it runs short of various operating expenses, including the payroll. This
process may take over one month.At around the year 2009, there was a new rule in China that
was enacted by the government, which increased the pooling structures, for the two-sided
foreign currency entrustments for cash loans. Initially, there was a legislation, which states that
the mutual foreign currency allocation, could only offer loans for Chinese and subsidiaries of
overseas companies, then joint cash pooling structure, could only be recognized with the
Investment Company or capable regional control center in China. In China, banks act as a
middle agent or intermediary between the borrower and the lending company. This will enable
both parties to meet regulatory requirements, for lending of intercompany. An entity that have
more than enough funds, deposits cash with the bank and states the company that they want
to lend such money. The use of this style will enable cash concentration of the foreign currency,

4. to achieve far-reaching standards. Another currency achievement in China is the setting up of
centers for treasure in the mainland of China. Many more Chinese companies or organizations
are leveraging physically powerful liquidity and the inferior cost foot, for expansion in the
foreign countries. The China currency has brought the opportunity of inviting other foreign
potential investors into the …
View and Download Full Essay on assignmentlab.com