This document provides an agenda and overview for a workshop on doing business in China held in March 2014 in Inverness and Edinburgh. The agenda includes sessions on China's market overview, sector opportunities, routes to market, case studies, and one-on-one consultations with advisers. The document also includes background on key Chinese economic and political trends, opportunities in sectors like food and drink, energy, life sciences, and challenges of the Chinese market. Scottish Development International's support for companies in China is outlined, including offices in Beijing, Shanghai, and planned trade
Doing business in China has advantages like low labor costs and an educated workforce, but also downsides such as corruption, complicated legal systems, and non-payment issues. Relationship building, or "guangxi," is especially important in China and involves coordinating with government bodies and establishing goodwill with partners through courtesy and respect of Chinese culture. Being sensitive to guangxi can help smooth business operations and avoid delays.
IN THIS SUMMARY
Over the past few years, China has transformed itself into a powerful, consumer-oriented culture, and many Western companies have flocked to China to take advantage of this new marketplace. However, entrepreneurs from the United States and Western countries often fail to realize that transacting business in China is a far cry from making deals at home. Ted Plafker, a Beijing correspondent for The Economist, leverages his extensive experience in Chinese culture and entrepreneurship to offer a primer for newcomers who are planning to expand their business into China. According to his book, Doing Business in China, “As many foreign companies have already proven, success in China is possible, but only for those with the patience, persistence, and resources to see it through.”
SUBSCRIBE TODAY
http://www.bizsum.com/summaries/doing-business-china
As one of the world’s largest economies, China holds the promise of huge market potential and revenue opportunities for businesses worldwide. However, detailed planning is
critical for success in China.
China has a population of over 1.3 billion people and a land area of over 9.5 million square kilometers. It has a diverse geography that ranges from tropical in the south to subarctic in the north. China has a developing market economy and is currently the world's second largest economy. Some of China's major industries include power, manufacturing, and automobiles. China's work culture varies regionally but is characterized by emphasis on relationships and respect for hierarchy and seniority. Meetings and business meals are important for building connections.
This document appears to be a presentation on doing business in China that covers:
1) An introduction and agenda for the presentation.
2) Profiles of the three speakers - Tom Racicot of Computershare, Suzanne Callister of TMF Group, and Elizabeth Miner of Thermo Fisher Scientific.
3) Overviews of foreign direct investment, investment vehicles, and compliance requirements for doing business in China.
UHY Dawgen Chartered Accountants (Incorporating Paul Goldson & Company) is a professional service firm providing audit, accounting, tax and business advisory services from 5 strategic locations in Jamaica. . UHY Dawgen Chartered Accountants (the “Firm”) is a member of Urbach Hacker Young International Limited, a UK company, and forms part of the international UHY network of legally independent accounting and consulting firms. UHY is the brand name for the UHY international network.
The document discusses foreign direct investment (FDI) among the major economic blocs called the Triad: the United States, European Union, and Japan. It notes that FDI and trade have increased dramatically among Triad nations over the last decade. The document also discusses FDI flows to other major economies like China and trends in various regions like developing Asia and North-East Asia. It provides statistics on the levels of FDI inflows and outflows among Triad and other nations.
This document provides an agenda and overview for a workshop on doing business in China held in March 2014 in Inverness and Edinburgh. The agenda includes sessions on China's market overview, sector opportunities, routes to market, case studies, and one-on-one consultations with advisers. The document also includes background on key Chinese economic and political trends, opportunities in sectors like food and drink, energy, life sciences, and challenges of the Chinese market. Scottish Development International's support for companies in China is outlined, including offices in Beijing, Shanghai, and planned trade
Doing business in China has advantages like low labor costs and an educated workforce, but also downsides such as corruption, complicated legal systems, and non-payment issues. Relationship building, or "guangxi," is especially important in China and involves coordinating with government bodies and establishing goodwill with partners through courtesy and respect of Chinese culture. Being sensitive to guangxi can help smooth business operations and avoid delays.
IN THIS SUMMARY
Over the past few years, China has transformed itself into a powerful, consumer-oriented culture, and many Western companies have flocked to China to take advantage of this new marketplace. However, entrepreneurs from the United States and Western countries often fail to realize that transacting business in China is a far cry from making deals at home. Ted Plafker, a Beijing correspondent for The Economist, leverages his extensive experience in Chinese culture and entrepreneurship to offer a primer for newcomers who are planning to expand their business into China. According to his book, Doing Business in China, “As many foreign companies have already proven, success in China is possible, but only for those with the patience, persistence, and resources to see it through.”
SUBSCRIBE TODAY
http://www.bizsum.com/summaries/doing-business-china
As one of the world’s largest economies, China holds the promise of huge market potential and revenue opportunities for businesses worldwide. However, detailed planning is
critical for success in China.
China has a population of over 1.3 billion people and a land area of over 9.5 million square kilometers. It has a diverse geography that ranges from tropical in the south to subarctic in the north. China has a developing market economy and is currently the world's second largest economy. Some of China's major industries include power, manufacturing, and automobiles. China's work culture varies regionally but is characterized by emphasis on relationships and respect for hierarchy and seniority. Meetings and business meals are important for building connections.
This document appears to be a presentation on doing business in China that covers:
1) An introduction and agenda for the presentation.
2) Profiles of the three speakers - Tom Racicot of Computershare, Suzanne Callister of TMF Group, and Elizabeth Miner of Thermo Fisher Scientific.
3) Overviews of foreign direct investment, investment vehicles, and compliance requirements for doing business in China.
UHY Dawgen Chartered Accountants (Incorporating Paul Goldson & Company) is a professional service firm providing audit, accounting, tax and business advisory services from 5 strategic locations in Jamaica. . UHY Dawgen Chartered Accountants (the “Firm”) is a member of Urbach Hacker Young International Limited, a UK company, and forms part of the international UHY network of legally independent accounting and consulting firms. UHY is the brand name for the UHY international network.
The document discusses foreign direct investment (FDI) among the major economic blocs called the Triad: the United States, European Union, and Japan. It notes that FDI and trade have increased dramatically among Triad nations over the last decade. The document also discusses FDI flows to other major economies like China and trends in various regions like developing Asia and North-East Asia. It provides statistics on the levels of FDI inflows and outflows among Triad and other nations.
Finance Economics revisited, a primer (abstract) - MaverlinnOlivier Coispeau
This is the abstract of a presentation delivered by Olivier Coispeau in September 2015. The presentation highlights conditions for renewed economic and financial analysis.
Chinese investment in the Netherlands: Patterns and DriversOna Akemu
There is an explosion of interest in Chinese foreign direct investment around Europe. Chinese investors, backed implicitly or explicitly by the Chinese state, are portrayed in simplistic terms in the media: they are in Europe to "steal" European assets, or they are here in the service of their government.
What are the facts? What are the patterns of Chinese investment across Europe and, particularly, in The Netherlands? We draw on my research--archival, interview based--at the China Business Centre Rotterdam School of Management to present a more realistic picture of Chinese FDI in the Netherlands. The evidence suggests that the scale of Chinese FDI in the Netherlands is small and, principally, driving by asset-seeking motives.
Investment and growth in China (abstract) - MaverlinnOlivier Coispeau
- China has experienced impressive economic growth over the past 30 years, with its GDP increasing at an average of 7.1% annually. However, investment as a percentage of GDP has remained very high between 47-49% in order to sustain growth.
- The Chinese stock market performance has become decoupled from GDP growth since 2009, showing the fragile structure of Chinese markets. This was exacerbated by the 2012 fraud scandal of Xintadi Bio-Tech, which halted Chinese IPO activity.
- With few exit options, mergers and acquisitions have become an increasingly important strategy for private equity in China. One example is Shuanghui's $4.7 billion acquisition of Smithfield Foods in 2013
Presentation at Seminar
Doing Business: NL vs USA
(2012 April 19, Amsterdam)
Organised by:
- Leading Edge Alliance
- Bol International
- Van Oers International
The World Business Angels Investment Forum (WBAF) annual meeting will take place from February 19-20, 2018 in Istanbul, Turkey. The theme of the meeting is "Unlocking the Potential for Innovation: Angel Investors Partnering with Family Offices and Wealth Management Institutions". The discussions will explore how these partnerships can foster innovation and provide business value. Over 100 global speakers from 54 countries will discuss developing financial and non-financial instruments to fuel early-stage investment markets.
Peru's Foreign Investment Policy towards China: Comparison with other Latin A...María Isabel Osterloh
Politica de atraccion de inversiones del Peru frente a China: Comparacion con otros paises latinoamericanos: Comparacion con los paises de la Alianza del Pacifico
Ponencia dada en la Universidad Nacional Mayor de San Marcos dada el 29 de setiembre, 2017
Conference given at San Marcos National University on September 29, 2017
The document discusses the European Confederation of Young Entrepreneurs (YES), an organization that represents 40,000 young entrepreneurs across 18 European countries. YES aims to promote entrepreneurship by improving access to capital and markets, developing an entrepreneurial culture, and influencing legislation. The document notes that entrepreneurship in Europe lags countries like the US in areas like investment and culture. It proposes short, mid, and long-term strategies to address these issues, including improving access to capital, markets, and building a more entrepreneurial culture and mindset.
VC, PE & HK's Entrepreneurial EnterprisesDenis Tse
The document analyzes successful entrepreneurial businesses in Hong Kong over the past 10 years based on companies that had an initial public offering (IPO) on the Hong Kong stock exchange between 2001-2012 and have a current market capitalization over HK$750 million. The analysis found 51 companies that meet these criteria, representing only 3% of listed stocks. Excluding companies founded before the 1980s reduces the number to 37, averaging only 3-4 new companies per year achieving an IPO and remaining viable. This suggests Hong Kong has lacked large ambitious entrepreneurial companies breaking out over the past decade.
This document discusses globalization and international business. It defines globalization as the trend toward greater economic, cultural, political and technological interdependence among national institutions and economies. It identifies two key drivers of globalization as regional trade agreements and technological innovation. The document also summarizes the debates around globalization, including its impacts on jobs, wages, labor standards, and national sovereignty. It describes different types of firms involved in international business, such as multinational corporations, small businesses, and born global firms.
The document provides an overview of 5CGroup International Corporation, a business consultancy firm that was originally formed in 2002 as OHITI in China and later incorporated in the US in 2007, detailing its location, services, and global partner network across various countries in areas like legal, financial, and management consulting.
Globalization refers to the increasing integration of economies around the world through reductions in trade barriers and increases in flow of goods, services, and capital between countries. It leads to more specialization internationally and an increased material wealth. Foreign direct investment contributes directly to international business by allowing companies to invest across borders through mechanisms like mergers and acquisitions or building new facilities in other countries. This increases productivity in the host country and can transfer skills and technology. However, political stability, legal systems, economic conditions, and currency fluctuations in different countries can significantly impact foreign businesses operating there.
The document discusses China's growing interest in moving outward through mergers and acquisitions (M&A). It provides context for why China is now looking to expand abroad given its slowing GDP growth. The objectives of a smooth external growth policy are outlined as accessing worldwide profit pools, securing strategic resources, and building global brands. The document then discusses challenges China faces in M&A and proposes designing a high return M&A strategy through careful preparation, targeting opportunities, and integrated acquisition and integration processes. Two case studies of Chinese M&A deals, one in Italy and one in the US, are presented as examples.
Entrepreneurship as a determinant of fdi in case of georgiaAzer Dilanchiev
Abstract
Attraction of Foreign Direct Investment (FDI) is the one of the main priorities for Georgia. Liberal investment environment and
equal approach to local and foreign investors makes country as an attractive destination for FDI. The paper focuses on relation
between entrepreneurship and FDI in case of Georgia, to find out the role that entrepreneurship takes as a determinant of FDI.
The paper empirically proves that in order to attract FDI, development of entrepreneship is vital.
Thomas Storring - Reaching our international trade goalsonens
This document discusses Nova Scotia's goals of increasing exports to exceed $20 billion by 2024 and analyses opportunities and challenges. It notes that NS has failed to meet this target in the past but met it previously. The document examines NS's trade patterns compared to other provinces and concludes growth will primarily come from increased output. It identifies sectors with potential for expanded exports and warns against protectionism, subsidies, and favoritism that could hinder competition and innovation needed to develop strong business cases for trade. The document advocates allowing fair competition and focuses on improving skills, infrastructure, and international trade agreements to support trade growth.
The 8 best innovation ideas from around the worldTarshant Jain
This is just a small sample of best policies from around the world. Over the long term, national wealth is determined by how quickly innovations can be imbedded into a country's economy, enhancing productivity growth. If the India can reformulate a group of strategies similar to those on this list, it could catapult itself to renewed preeminence in global innovation. Only visionary leadership among political, business and policy officials is required. That said, leadership seems to be in short supply in Washington, given the partisan discord. Innovation must become a top priority and is something that leaders in Washington and around the country must think about when they wake up in the morning.
Chinese outbound direct investment has grown significantly in recent years as the government has adapted policies and regulations to encourage it. Total Chinese outbound investment reached $41.6 billion in 2009, a substantial increase from $19.5 billion in 2007. Both private companies and state-owned enterprises are investing abroad to access new markets, lower costs, and acquire strategic assets. Chinese companies are also increasingly pursuing global mergers and acquisitions to gain experience, technology, knowledge, and natural resources. While Asia remains the primary target for Chinese investment, large companies are also looking to Europe for future opportunities.
Globalization refers to the increasing integration and interdependence of national economies through cross-border movement of goods, services, technology and capital. It involves both economic and social effects as barriers to international trade and cultural exchanges are reduced. Key aspects of globalization include the expansion of international trade, growth of multinational corporations, increased capital flows between countries, and the spread of technology and culture to new parts of the world. While globalization opens new markets and opportunities for businesses, it can also face objections related to issues like outsourcing and loss of domestic jobs. Overall, globalization affects both businesses and societies in complex ways.
The presentation group includes Alex Merket, Sena Sevencan, Kan Mihail, and Lissette Plaza. Their presentation discusses how globalization is driving changes in international business. Globalization refers to the increasing integration and interdependence of national economies through cross-border movement of goods, services, technology, and capital. It has led to the globalization of production through outsourcing and the globalization of markets as national markets merge into a single global marketplace. Emerging global institutions like the WTO and IMF also influence international business. Legal systems are globalizing to allow companies to focus on core competencies. Technological advances and declining trade barriers are key drivers of globalization that impact how firms operate globally.
துர் உபதேசங்கள் என்னும் இத்தியானம் துர் உபதேசங்கள் எப்படி உருவாகிறது என்பது பற்றியும், அது விசுவாச மக்களை எவ்வாறு பாதிக்கிறது என்பது பற்றியும் தியானிக்கிறது. மேலும் அறிய: www.jesussoldierindia.wordpress.com
The document provides information about cults, Christianity cults, and the Iglesia Ni Cristo cult group. It defines key terms like cult, heresy, sect, religion, false belief systems, and dangerous religious groups. It then summarizes the Iglesia Ni Cristo cult's founder, leadership, membership numbers, countries with presence, sources of authority, and some of their unbiblical beliefs like rejecting the Trinity and believing salvation only comes through their church.
Finance Economics revisited, a primer (abstract) - MaverlinnOlivier Coispeau
This is the abstract of a presentation delivered by Olivier Coispeau in September 2015. The presentation highlights conditions for renewed economic and financial analysis.
Chinese investment in the Netherlands: Patterns and DriversOna Akemu
There is an explosion of interest in Chinese foreign direct investment around Europe. Chinese investors, backed implicitly or explicitly by the Chinese state, are portrayed in simplistic terms in the media: they are in Europe to "steal" European assets, or they are here in the service of their government.
What are the facts? What are the patterns of Chinese investment across Europe and, particularly, in The Netherlands? We draw on my research--archival, interview based--at the China Business Centre Rotterdam School of Management to present a more realistic picture of Chinese FDI in the Netherlands. The evidence suggests that the scale of Chinese FDI in the Netherlands is small and, principally, driving by asset-seeking motives.
Investment and growth in China (abstract) - MaverlinnOlivier Coispeau
- China has experienced impressive economic growth over the past 30 years, with its GDP increasing at an average of 7.1% annually. However, investment as a percentage of GDP has remained very high between 47-49% in order to sustain growth.
- The Chinese stock market performance has become decoupled from GDP growth since 2009, showing the fragile structure of Chinese markets. This was exacerbated by the 2012 fraud scandal of Xintadi Bio-Tech, which halted Chinese IPO activity.
- With few exit options, mergers and acquisitions have become an increasingly important strategy for private equity in China. One example is Shuanghui's $4.7 billion acquisition of Smithfield Foods in 2013
Presentation at Seminar
Doing Business: NL vs USA
(2012 April 19, Amsterdam)
Organised by:
- Leading Edge Alliance
- Bol International
- Van Oers International
The World Business Angels Investment Forum (WBAF) annual meeting will take place from February 19-20, 2018 in Istanbul, Turkey. The theme of the meeting is "Unlocking the Potential for Innovation: Angel Investors Partnering with Family Offices and Wealth Management Institutions". The discussions will explore how these partnerships can foster innovation and provide business value. Over 100 global speakers from 54 countries will discuss developing financial and non-financial instruments to fuel early-stage investment markets.
Peru's Foreign Investment Policy towards China: Comparison with other Latin A...María Isabel Osterloh
Politica de atraccion de inversiones del Peru frente a China: Comparacion con otros paises latinoamericanos: Comparacion con los paises de la Alianza del Pacifico
Ponencia dada en la Universidad Nacional Mayor de San Marcos dada el 29 de setiembre, 2017
Conference given at San Marcos National University on September 29, 2017
The document discusses the European Confederation of Young Entrepreneurs (YES), an organization that represents 40,000 young entrepreneurs across 18 European countries. YES aims to promote entrepreneurship by improving access to capital and markets, developing an entrepreneurial culture, and influencing legislation. The document notes that entrepreneurship in Europe lags countries like the US in areas like investment and culture. It proposes short, mid, and long-term strategies to address these issues, including improving access to capital, markets, and building a more entrepreneurial culture and mindset.
VC, PE & HK's Entrepreneurial EnterprisesDenis Tse
The document analyzes successful entrepreneurial businesses in Hong Kong over the past 10 years based on companies that had an initial public offering (IPO) on the Hong Kong stock exchange between 2001-2012 and have a current market capitalization over HK$750 million. The analysis found 51 companies that meet these criteria, representing only 3% of listed stocks. Excluding companies founded before the 1980s reduces the number to 37, averaging only 3-4 new companies per year achieving an IPO and remaining viable. This suggests Hong Kong has lacked large ambitious entrepreneurial companies breaking out over the past decade.
This document discusses globalization and international business. It defines globalization as the trend toward greater economic, cultural, political and technological interdependence among national institutions and economies. It identifies two key drivers of globalization as regional trade agreements and technological innovation. The document also summarizes the debates around globalization, including its impacts on jobs, wages, labor standards, and national sovereignty. It describes different types of firms involved in international business, such as multinational corporations, small businesses, and born global firms.
The document provides an overview of 5CGroup International Corporation, a business consultancy firm that was originally formed in 2002 as OHITI in China and later incorporated in the US in 2007, detailing its location, services, and global partner network across various countries in areas like legal, financial, and management consulting.
Globalization refers to the increasing integration of economies around the world through reductions in trade barriers and increases in flow of goods, services, and capital between countries. It leads to more specialization internationally and an increased material wealth. Foreign direct investment contributes directly to international business by allowing companies to invest across borders through mechanisms like mergers and acquisitions or building new facilities in other countries. This increases productivity in the host country and can transfer skills and technology. However, political stability, legal systems, economic conditions, and currency fluctuations in different countries can significantly impact foreign businesses operating there.
The document discusses China's growing interest in moving outward through mergers and acquisitions (M&A). It provides context for why China is now looking to expand abroad given its slowing GDP growth. The objectives of a smooth external growth policy are outlined as accessing worldwide profit pools, securing strategic resources, and building global brands. The document then discusses challenges China faces in M&A and proposes designing a high return M&A strategy through careful preparation, targeting opportunities, and integrated acquisition and integration processes. Two case studies of Chinese M&A deals, one in Italy and one in the US, are presented as examples.
Entrepreneurship as a determinant of fdi in case of georgiaAzer Dilanchiev
Abstract
Attraction of Foreign Direct Investment (FDI) is the one of the main priorities for Georgia. Liberal investment environment and
equal approach to local and foreign investors makes country as an attractive destination for FDI. The paper focuses on relation
between entrepreneurship and FDI in case of Georgia, to find out the role that entrepreneurship takes as a determinant of FDI.
The paper empirically proves that in order to attract FDI, development of entrepreneship is vital.
Thomas Storring - Reaching our international trade goalsonens
This document discusses Nova Scotia's goals of increasing exports to exceed $20 billion by 2024 and analyses opportunities and challenges. It notes that NS has failed to meet this target in the past but met it previously. The document examines NS's trade patterns compared to other provinces and concludes growth will primarily come from increased output. It identifies sectors with potential for expanded exports and warns against protectionism, subsidies, and favoritism that could hinder competition and innovation needed to develop strong business cases for trade. The document advocates allowing fair competition and focuses on improving skills, infrastructure, and international trade agreements to support trade growth.
The 8 best innovation ideas from around the worldTarshant Jain
This is just a small sample of best policies from around the world. Over the long term, national wealth is determined by how quickly innovations can be imbedded into a country's economy, enhancing productivity growth. If the India can reformulate a group of strategies similar to those on this list, it could catapult itself to renewed preeminence in global innovation. Only visionary leadership among political, business and policy officials is required. That said, leadership seems to be in short supply in Washington, given the partisan discord. Innovation must become a top priority and is something that leaders in Washington and around the country must think about when they wake up in the morning.
Chinese outbound direct investment has grown significantly in recent years as the government has adapted policies and regulations to encourage it. Total Chinese outbound investment reached $41.6 billion in 2009, a substantial increase from $19.5 billion in 2007. Both private companies and state-owned enterprises are investing abroad to access new markets, lower costs, and acquire strategic assets. Chinese companies are also increasingly pursuing global mergers and acquisitions to gain experience, technology, knowledge, and natural resources. While Asia remains the primary target for Chinese investment, large companies are also looking to Europe for future opportunities.
Globalization refers to the increasing integration and interdependence of national economies through cross-border movement of goods, services, technology and capital. It involves both economic and social effects as barriers to international trade and cultural exchanges are reduced. Key aspects of globalization include the expansion of international trade, growth of multinational corporations, increased capital flows between countries, and the spread of technology and culture to new parts of the world. While globalization opens new markets and opportunities for businesses, it can also face objections related to issues like outsourcing and loss of domestic jobs. Overall, globalization affects both businesses and societies in complex ways.
The presentation group includes Alex Merket, Sena Sevencan, Kan Mihail, and Lissette Plaza. Their presentation discusses how globalization is driving changes in international business. Globalization refers to the increasing integration and interdependence of national economies through cross-border movement of goods, services, technology, and capital. It has led to the globalization of production through outsourcing and the globalization of markets as national markets merge into a single global marketplace. Emerging global institutions like the WTO and IMF also influence international business. Legal systems are globalizing to allow companies to focus on core competencies. Technological advances and declining trade barriers are key drivers of globalization that impact how firms operate globally.
துர் உபதேசங்கள் என்னும் இத்தியானம் துர் உபதேசங்கள் எப்படி உருவாகிறது என்பது பற்றியும், அது விசுவாச மக்களை எவ்வாறு பாதிக்கிறது என்பது பற்றியும் தியானிக்கிறது. மேலும் அறிய: www.jesussoldierindia.wordpress.com
The document provides information about cults, Christianity cults, and the Iglesia Ni Cristo cult group. It defines key terms like cult, heresy, sect, religion, false belief systems, and dangerous religious groups. It then summarizes the Iglesia Ni Cristo cult's founder, leadership, membership numbers, countries with presence, sources of authority, and some of their unbiblical beliefs like rejecting the Trinity and believing salvation only comes through their church.
This document outlines characteristics of cults, including that they are recently formed, demand total commitment from members, and use brainwashing techniques like love bombing, sleep deprivation, guilt trips, and isolation to recruit and control followers who believe the leader communicates directly with God and the end of the world is near.
Albert Park: Rising Wages, Labor Regulation, and the Future of Employment in ...HKUST IEMS
Rising wages in China's labor market have led to greater integration and protection for workers through laws like the 2008 Labor Contract Law. This law increased protections for workers, including requiring contracts, severance pay, and limits on temporary work. Studies found it increased labor costs for some firms but did not prevent continued employment and wage growth. Labor markets have become more integrated across China as wages converge, though migrants still face challenges. Sustaining economic growth while balancing employer and employee interests will be an ongoing challenge for China's labor market going forward.
The document summarizes the current state of the labor movement in China in 3 sentences:
Strikes have been increasing in China since 2010, with over 2,000 strikes from 2011-2014 involving thousands of workers primarily in the construction, garment, and IT sectors protesting issues like increasing wages and social insurance benefits. The government tries to maintain stability while passing new regulations, but trade unions are controlled by the state and avoid collective action, while labor NGOs have emerged to support workers and intervene in strikes. International solidarity has also formed around issues like factories relocating overseas and Chinese investment in foreign construction industries.
Cults are generally small, unorthodox religious groups that are not part of a larger, mainstream religion. They are defined as having beliefs that are extreme or dangerous. Cults differ from religions in that they have authoritarian leaders, encourage isolation from outside influences, use coercive persuasion and repetitive techniques to influence members, demand exclusivity and cut ties from non-members. Potential cult members are often disenchanted with society and conventional religions, emotionally and financially vulnerable. Cults use love bombing, bible scripture twisting, and gradual indoctrination techniques to recruit. Some of the most dangerous cults included the People's Temple, led by Jim Jones, which resulted in a mass suicide; Aum Shinrikyo
Employment in China is different than other countries due to China's unique culture and massive workforce. Guanxi, or personal connections, plays an important role in employment opportunities. China has a legal framework for employment including labor contracts, unions, and regulations regarding labor relations. Compensation in China is affected by factors like pay scales, taxes, retirement, health care, housing, and China's one-child policy. The future of employment in China will see a new generation of leaders and changes in the workforce as Chinese workers demand more opportunities and better treatment.
Doing Business in China | Human Resource StrategyJohn Kuo
This document provides an overview of human resources strategy considerations for doing business in China. It discusses finding the right leadership candidates, which include Western expatriates, Asian Chinese, PRC returnees, and PRC locals. Strengths and weaknesses of each candidate type are analyzed. The document also discusses developing the PRC local executive pool, with areas of strengths and development outlined. It recommends HR strategies such as local recruitment, university relations, promoting employee growth, and maintaining a clear organizational structure.
2008 Hot Topics in Labor & Employment Lawptcollins
New Jersey Paid Family Leave Act, Keith McDonald
Potpourri of Employee Privacy Issues, Karen Thompson
Electronic Discovery 2008: Coming to a HR Department Near You, Fernando Pinguelo
Emergent Tax Issues in Employment Law, Charles Bruder
Developments in Harassment Law, David Cassidy
Family and Medical Leave Act, Proposed Regulations Changes, Pat Collins
The document discusses several challenges for managing human resources in China. It notes that strict adherence to hierarchy and lack of attention to detail are sometimes issues, though creativity and work ethic are improving. Younger generations are more open to new management styles. Retaining skilled staff is difficult due to rising career expectations. Compliance with China's labor laws, which regulate work hours, contracts, benefits and taxes, is also a challenge for foreign companies. Adapting company culture to the local context is important for success in China.
PRC Contract Law Principles and Risk Management in Contract DraftingRHKLegal
An overview of contract drafting techniques with regard to the PRC Contract Law principles and recent Supreme Court Directions. An analysis of limitation of liability and liquidated damages clauses in the China market context.
The document discusses managing interest rate risk in banks, including defining interest rate risk, describing the types of interest rate risks such as repricing risk and basis risk, and strategies for measuring and controlling interest rate risk such as following Basel Committee recommendations and sound risk management practices.
Human Resource Planning, Recruitment, Selection and PlacementLawrence Bautista
The document discusses human resource planning, recruitment, selection and placement. It covers the 5 steps in human resource planning which are determining workload, studying jobs, forecasting needs, inventorying staff, and improving plans. It also discusses recruitment procedures such as job analysis, testing, interviews and checking references. The goals of selection are to find qualified candidates and create goodwill. Personality, mental ability and skills tests are used to evaluate applicants. The interview process aims to assess qualifications, inform candidates and develop relationships. Validity testing ensures tests accurately predict job performance.
Introduction to the Work of the Shangai Administrative Bureau for Industry an...Corporate Registers Forum
The document summarizes the work of the Shanghai Administrative Bureau for Industry and Commerce in registering companies. It discusses the Bureau's responsibilities, the offices that handle registration, and statistics on registered companies. It also outlines reforms made to registration procedures to improve efficiency and align with international practices, such as allowing installment payment of capital contributions and recognizing human capital contributions. Going forward, the Bureau aims to further strengthen its information infrastructure, enhance public services through searchable company information, and foster relationships with other international registration authorities.
Joint Ventures in China: Features and main issues of one of the most common and risky foreign investment vehicles in China. If the initial reasons for foreign investors to venture with a Chinese partner were basically the compulsoriness of the law, “tempting” low labor and production costs, tax incentives and friendly tax policies, and the “mirage” of a boundless market, it is important to understand, nowadays, that these reasons are disappearing and foreign enterprises have more safe alternatives, if a joint venture is still a useful and profitable vehicle to operate in China.
This document provides an overview of establishing and maintaining a Wholly Foreign-Owned Enterprise (WFOE) in China. It discusses the regulatory framework, legal status, capital requirements, feasibility study process, allowed business scopes, and procedures for setting up a WFOE. It also outlines the requirements for maintaining a WFOE, including annual audits, examinations, and tax compliance. The document serves as a guide for foreign investors on the process and ongoing obligations of operating a wholly foreign-owned subsidiary in China.
The document discusses doing business in China through Hong Kong. It summarizes that Hong Kong provides preferential treatment and a common law environment for businesses operating in China. Hong Kong serves as the gateway to China, handling a large percentage of China's trade. Using a Hong Kong entity allows businesses to take advantage of Hong Kong's tax benefits and flexibility for operations in China compared to operating directly in China.
The document discusses factors to consider for multinational companies investing in China. It outlines China's encouragement of foreign direct investment and the attributes of its market, currency, and trade environment. The essay also examines political, employment, cultural, and social implications for long-term investment projects in China. Key factors discussed include import/export restrictions, labor laws, currency value manipulation, hierarchy-based business culture, and differences between national and local regulations.
1Running head INTERNATIONAL BUSINESS PRACTICESMGM3552.docxeugeniadean34240
1
Running head: INTERNATIONAL BUSINESS PRACTICES
MGM355 2
MGM355-1403B-02
International Business Practices
Roderick D. Goodrum
Individual Project Phase 5
Colorado Technical University
Instructor: Lester Willis
09/17/2014
Introduction
Establishment of a business in a foreign land depends on strict evaluation and analysis of various factors inclusive of; the barriers to entry in the foreign nation, the legal systems, customer base, potentiality of growth, economic performance, and the cultural framework of the natives there. Failure to scrutinize such factors might impact success of the business negatively (Schill, 2014). This paper discusses the factors that a regional bank needs to consider before expanding into a foreign nation, China for this case. It uses Union Bancshares (UNB), a Californian based regional bank as an example.
Possible challenges in the new environment
This may be analyzed in three perspectives; educational discrepancies, cultural differences, and other social demographics. Culture refers to the values and norms held by members of a given society; the good and the bad defined by a society. Cultural conflict is felt a great depth in the work place, if the workers therein are from different ethnic origins. For UNB to ensure it gains a positive reputation in the public sector, the company’s management will need to employ workers from diverse cultural setups. Despite this move being positive in some way, the conflicts arising in the work place due to differing cultural expectations might hamper work progress negatively leading to poor performance. Another challenge is education level of potential employees within the locality within which the company plans to establish itself. Specific technical personnel might be inadequate in China compelling UNB’s management to outsource workers from far geographical locations, this is a costly process.
Legal and political environments
The legal systems in China are flexible rather than static. This poses a great challenge to foreign investors since laws regarding foreign investors might change negatively at the time of their investment. In People’s Republic of China, laws governing the business sector are made in the National People’s Congress (NPC) and the judicial system is vested with the power of ensuring all parties comply. When making a foreign direct investment, the first step is to describe in detail the pros and cons of the business to China’s economy, if the pros exceed the cons then the business is listed under the permitted category as long as all other factors have been fully satisfied. China is a politically stable nation despite its long term poor relation with Taiwan. This is a positive indicator for UNB since business operations are not likely to be disrupted due to political clash.
Government involvement in the private sector
A comparison to the US business practice is made to gauge the level with which the government intervenes in private businesses in Peop.
The document provides an overview of the labor market and labor laws in Uzbekistan. It notes that the government ministry oversees labor regulations and job markets. Most unions are state-run. While employees have rights established by law like minimum wage and pensions, there is no specialized labor arbitration system. The labor code establishes rights for workers but there are no independent workers organizations. Uzbekistan has ratified several ILO conventions around forced labor, working hours, holidays and other rights.
Cecca financial newsletter issue 3 march 2019Shu-Chien Chen
China has become one of the top countries developing fast in attracting foreign direct investment (FDI) in recent decade. In terms of the institutional development of FDI, Chinese authorities have made effort to move forward a step in reducing transaction and regulatory costs for foreign investors. Owing to the difference of transaction structure of greenfield investment and mergers & acquisitions (M&A), China's regulatory strategies on the two types of foreign investment is different, the political concern on corporate control over domestic firms may increase compliance risk and uncertainties for foreign investors who aims to run business by directly acquiring P.R.C enterprises.
This document provides an overview of China's investment climate and policies toward foreign direct investment (FDI) according to a 2015 report by the U.S. Department of State. It notes that while China attracted large amounts of FDI, many sectors remain closed to foreign investors. The report discusses China's laws and regulations governing FDI, industrial policies promoting certain sectors, and recent reform announcements that could improve market access if implemented. However, foreign investors continue to face restrictions, lack of transparency, inconsistent enforcement, and discriminatory policies that favor domestic firms.
The document discusses foreign direct investment (FDI) in Pakistan. It defines FDI and outlines the main types based on direction of investment and type of activity. The presentation notes the advantages of FDI include technology transfer, job creation, and access to global markets. Disadvantages include crowding out local industries and potential loss of control. The document reviews Pakistan's investment policies and statistics on FDI inflows from 2010 to 2017. It identifies key factors affecting a country's ability to attract FDI such as wages, infrastructure, economic and political stability.
DLA Piper & KPMG Present : Joint Ventures in ChinaLouis Lehot
This document provides an overview and summary of a presentation on navigating challenges related to joint ventures in China. It discusses how China's legal and regulatory system differs from Western systems in being highly regulated and approval-based rather than disclosure-based. It then examines various structures commonly used for joint ventures in China, including both offshore and onshore structures. It also discusses options for foreign technology companies to monetize their intellectual property in China, such as joint ventures, licensing agreements, and initial public offerings. Finally, it briefly introduces the law firm DLA Piper and one of its partners with expertise in advising clients on business matters in China.
The document discusses bilateral investment treaties (BITs) and their relationship to foreign direct investment (FDI) flows between countries. It provides an overview of BITs and their main roles in protecting foreign investors and investments. The document then reviews previous research that has found both positive and negative impacts of BITs on FDI. It also includes regional analyses of the relationships between the number of BITs and other international agreements, and FDI flows within the Southern African Development Community and East African Community regions. The conclusion discusses ways Tanzania could potentially update its BIT provisions and policies to better attract foreign investment.
This document provides an overview of doing business in China. It discusses China joining the WTO in 2001 and the opening up of its market, which has attracted foreign investment and technology. While bureaucracy remains, the government is making efforts to encourage foreign investment. Priority sectors for foreign investment include those using modern technology, environmental protection, and energy/water conservation. The document outlines some incentives available for foreign investors in China, including tax reductions and exemptions for certain high-tech and service enterprises.
Kegler Brown global business attorneys Luis Alcalde and David Wilson presented " Exporting from the United States: Key Legal Considerations" at the 2014 Ohio Export Internship Program.
They discussed international trade in a legal context, international trading or transfers, due diligence, FCPA and why compliance is important.
Hankun Law - Cross Border US China Fund Formation and Investment 11172016Rui Ma
Cross-border Fund Formation, VC/PE Investment & Transaction Risk Management
From the event:
https://uschina-investment.eventbrite.com
Sponsored by:
East West Bank
WI Harper Group
1. The document provides an overview of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in India. It defines FDI as long-term investment in physical assets of a company, while FII is generally short-term investment in financial assets.
2. It summarizes the liberalization of India's FDI policy over time, with caps increasing from 40% to 100% in most sectors. Recent developments include consolidation of various FDI rules and further liberalization of certain policies.
3. Sector-specific guidelines prohibit FDI in certain sectors like retail, gambling, but allow up to 74% in telecommunications depending on activities. Procedural aspects for compliance with FDI rules
1. The document provides an overview of Foreign Direct Investment (FDI) and Foreign Institutional Investment (FII) in India. It defines FDI as long-term investment in physical assets of a company, while FII is generally short-term investment in financial assets.
2. It summarizes the key differences between FDI and FII, and outlines India's FDI policy guidelines, sectors, and procedures. Recent developments including the consolidated FDI policy issued in 2010 aimed to promote FDI through a framework that is transparent, predictable, and reduces regulatory burden.
3. Sector-specific guidelines prohibit FDI in certain sectors like retail trading, gambling, and real estate construction, while it is allowed in
The document discusses the various factors that make up the business environment, including the economic, political/government, natural/technological, legal, social, and global environments. It provides details on aspects of each environment like economic policies, government bodies, technologies, laws, and social trends. Throughout, it gives examples of how changes in the environments, like economic reforms, new regulations, and technological advances have impacted businesses in India.
This document discusses the potential framework for a limited application of dual-class share structures in China. It analyzes data on US-listed Chinese companies that use dual-class structures and finds that restricting eligibility based solely on industry classification would not be effective. Instead, it suggests that China consider permitting dual-class shares but impose certain safeguards to balance takeover defenses with minority shareholder protections. The framework aims to utilize dual-class structures' function in deterring hostile takeovers while safeguarding company and public shareholder interests.
2. WELCOMEWELCOME
Opening Remarks
Introducing our Distinguished Panelists
MODERATOR: Mark Kelson – Manatt, Phelps
& Phillips, LLP
Tao Xiong – Broad & Bright
Changchun Yuan – Broad & Bright
Jun Li – Broad & Bright
Jim Pitrat – SingerLewak
3. AGENDAAGENDA
General Introduction
Overview of China’s foreign investment regime
Due diligence in China
Structuring investment in China
Strategies to protect IP and other rights in China
5. CHINA’S ECONOMIC GROWTHCHINA’S ECONOMIC GROWTH
REMAINS HIGH IN SPITE OFREMAINS HIGH IN SPITE OF
GLOBAL RECESSIONGLOBAL RECESSION
During the past 30 years, the average annual
GDP growth rate is about 10%.
Despite the global crisis, China’s economy grew
about 11.9% in the first quarter of 2010.
In the second quarter of 2010, China’s economy
surpassed Japan’s, taking its place as the world’s
number two economy.
Now China is so hot, so attractive – All roads lead
to China.
6. FOREIGN INVESTMENTFOREIGN INVESTMENT
IN CHINAIN CHINA
Since 1980, the average increase rate is 20% annually.
In 2008, actual foreign investment used was
USD92.4 billion. In 2009, due to the global economic
crisis, the investment used dropped 2.6%, but still reached
USD90 billion.
Currently, China has more than 430,000 (including
branches) FIEs, and investment made by foreign investors
reached USD350 billion.
In 2009, China was listed as the number two most
attractive country for investment after the United States.
According to the World Investment Report 2010 (United
Nations on August 12, 2010), China will be the most
attractive country for investment in 2011-2012.
Among the developing countries, China has been listed as
first among the most attractive countries for 18 years.
7. ARGUMENTS IN CHINAARGUMENTS IN CHINA
Is China a good place for investment?
Complaints from investors:
heavily regulated market
bureaucratic barriers
foreign exchange control
IP protection
Local protectionism
fewer privileges (national treatment, tax, etc.)
tougher employment law
8. RISKS IN INVESTINGRISKS IN INVESTING
IN CHINAIN CHINA
Doing business in China is an investment – like all
investments – with risks.
Are risks in China any different from those in
other countries?
Expert says: What makes overseas operations
more complex for international investors is that
many of the operational issues in China are
exacerbated by the very fact that they are so far
from the comforts of home, and from a familiar
regulatory and legal environment.
9. CHINESE POLITICALCHINESE POLITICAL
AND LEGAL SYSTEMAND LEGAL SYSTEM
Political System
Unitary state (central government vs. federal
government)
Vertical relationship
Central government (Beijing)
Provincial
Municipal
County
Township
(Village)
10. CHINESE POLITICALCHINESE POLITICAL
AND LEGAL SYSTEMAND LEGAL SYSTEM
Used to be a planned economy, in which
government makes and implements
economic plans
Many government agencies participate in market
regulation
NDRC, MOFCOM, SAFE, SAIC, SASAC, CSRC, CBRC,
SFDA
All of these agencies have their counterparts/
subordinates at various levels of government
11. CHINESE POLITICALCHINESE POLITICAL
AND LEGAL SYSTEMAND LEGAL SYSTEM
Legal System
Civil law tradition (not common law)
Codified law (not case law) – precedents’
instructive function
Administrative regulations (too many, too
complicated)
Local regulations
12. CHINESE POLITICALCHINESE POLITICAL
AND LEGAL SYSTEMAND LEGAL SYSTEM
Court and trial system
Supreme Court – Beijing
High Court – Provincial Level
Intermediate Court – Municipal Level
Primary Court – County Level
In addition to these ordinary courts, there are special
courts such as military court, maritime court and railway
court
Litigation – One first-instance trial and one appeal
13. CHINESE POLITICALCHINESE POLITICAL
AND LEGAL SYSTEMAND LEGAL SYSTEM
Legal Profession
Lawyers are licensed by the Ministry of Justice – qualified
nationally
There is a national bar
A lawyer can practice anywhere in the country
Foreign lawyers in China are not allowed to give advice on
Chinese law
Currently, China has 190,000 lawyers, one attorney for
every 6,977 people.
In California, currently the number of active attorneys is
169,016 (if inactive lawyers are counted, about the same
as China). Current population of California is 37,205,591,
one lawyer for every 220 people.
14. LAW AND REGULATIONSLAW AND REGULATIONS
CONCERNING FOREIGNCONCERNING FOREIGN
INVESTMENTINVESTMENT
Market entry (foreign investment
guidelines/catalog)
Company formation (Rep Office, JV, WOFE,
Partnership, etc.)
Operation (capital requirement, foreign exchange
control, tax, employment)
Incentives (tax holidays, preferential tax
treatment, land supply, local financial
subsidies, etc.)
15. RISKS IN CHINARISKS IN CHINA
Common risks
Regulatory and compliance risk
Socio-poli-economic risk (big picture, long-term
strategy issue)
Integrity and corruption risk
IP risk
Business partner risk
Supply chain risk
Restructuring risk
HR and labor risk
Dispute resolution risk
Natural disaster
16. RISKS IN CHINARISKS IN CHINA
Some are overlooked, while others are exaggerated, e.g.,
Guanxi vs. normal business rules.
People often say “China is different,” and “China is all
about Guanxi.”
Guanxi (government interference plays an important role in
China; Chinese traditional culture pays attention to a close
personal relationship).
People tend to strengthen personal relationships through
gifts, kickbacks, etc. But if you take it for granted, then
you may be in big trouble (anti business bribery laws in
China, Foreign Corrupt Practices Act in the United States).
17. RISK MANAGEMENTRISK MANAGEMENT
Ordinary business principles and prudence should
be followed (don’t only trust someone who has
good connections) – biggest risks
1. business plan/feasibility study
2. due diligence
3. auditing
4. risk evaluation/countermeasures/preparation for
unwanted surprises
5. partner screening
6. negotiation
7. contract draft and review
8. expert advice and opinion
18. DO YOUR HOMEWORKDO YOUR HOMEWORK
Like all other investments
Do your homework
Consult professionals
20. FOREIGN INVESTMENTFOREIGN INVESTMENT
INDUSTRY CATALOGINDUSTRY CATALOG
Encouraged
Examples: software, certain high-tech businesses, high-end
services (logistics, business process outsourcing, etc.)
Permitted
Examples: retail, wholesale distribution, services consultancy
Restricted
Examples: telecom (including Internet), insurance, bank, print
and publishing (special approval required)
Prohibited
Examples: gambling, primary schools, etc.
The Catalog is amended from time to time, latest update as
of October 2007.
21. FORMS OF ENTRYFORMS OF ENTRY
Greenfield investment
Creating a China entity from scratch
Governed by a special set of regulations and rules on the
setup of FIEs (vs. Company Law)
Mergers and acquisitions
Direct onshore equity acquisition by offshore entity
Indirect offshore equity acquisition by offshore entity
Asset acquisition
Governed primarily by the Foreign M&A Regulations (the
so-called “Circular 10”)
22. FORMS OFFORMS OF
ESTABLISHMENTESTABLISHMENT
Representative office
Generally not permitted to “do business” in China
Limited functions: primarily marketing and liaison functions
May not enter into sales contract on behalf of offshore parent
company
Joint ventures
Equity joint ventures (EJV) and Cooperative joint ventures
(CJV)
Parties to an EJV share profits based on their respective shares in
the equity investment, while parties to a CJV may split the profits
disproportionately to their equity percentages.
CJV allows a foreign investor to accelerate its withdrawal of
investment amount out of the CJV.
The highest authority of an EJV is the board of directors, while a
CJV may be managed through a joint management committee.
Required for certain businesses (e.g., restricted industries)
23. FORMS OFFORMS OF
ESTABLISHMENTESTABLISHMENT
Wholly foreign-owned enterprise (WFOE)
Increasingly popular and common form of establishment
for foreign investors
Joint stock company (FICLS)
Capital of an FICLS consists of shares of equal par value
Paid-in capital at least RMB30 million
Existing FIEs must be converted into an FICLS when
seeking a public listing in China
Foreign-invested partnership
Newly issued regulations in late 2009, allowing “foreign-
invested partnerships” effective March 1, 2010
24. Company Name
Reservation with local AIC
Industry preapproval (if
applicable)
Obtain Approval Certificate
from local MOC
Obtain Business License
from local AIC
Tax
registration
Enterprise
ID
registration
SAFE
registration
Finance
registration
Customs
registration
Statistic
registration
FOREIGN INVESTMENTFOREIGN INVESTMENT
REGULATORS ANDREGULATORS AND
ESTABLISHMENT PROCEDURESESTABLISHMENT PROCEDURES
Note: The approval level of MOC may differ under various total amount and national industry guidance.
Flow Chart
26. GENERALGENERAL
CONSIDERATIONS FORCONSIDERATIONS FOR
CHINA INVESTMENTCHINA INVESTMENT
Business objectives/scope
Industry specialties and products
Site selection issues
Overall business model
Entity selection
IP ownership and protection
Financing strategy
International structure
Foreign exchange control issues
Tax issues
Repatriation strategy
Exit strategy
27. DUE DILIGENCEDUE DILIGENCE
IN CHINAIN CHINA
Common practices
Almost no central registration system for security
interest
Court files are not public and mostly not searchable
Management interview very important (not all
transactions are documented in China)
Key issues to watch – examples
Tax incentives and government subsidies
Land use rights and zoning
Social security payments
28. DUE DILIGENCEDUE DILIGENCE
IN CHINAIN CHINA
Site selection issues
Location shopping: business model, local preferential
policies, availability of labor and talents, etc.
Investment LOI or agreement with local governments
Caveat: Local government may not have the authority to
sign the documents.
Know your business partner
Be engaging
Do homework (background check)
Be discreet – challenging or withdrawing
30. U.S. Co.
CHINA Op Co.
STRUCTURES FORSTRUCTURES FOR
CHINA INVESTMENTCHINA INVESTMENT
Direct ownership of Chinese company
31. U.S. Co.
CHINA Op Co.
HOLD Co.
STRUCTURES FORSTRUCTURES FOR
CHINA INVESTMENTCHINA INVESTMENT
Ownership through one or more intermediate
holding companies
Treaty countries/territories: Hong Kong, Singapore,
Barbados, Ireland, and Mauritius
32. INVESTMENT STRUCTURESINVESTMENT STRUCTURES
– TAX CONSIDERATIONS– TAX CONSIDERATIONS
Investment structure has to be right from the
beginning as later change may be taxable
Tax planning must be supported by economic
substance
Overall tax rate
Taxation of income flows from China to ultimate investor
Deferral
Use funds for business purposes
Where current period repatriation or recognition of income
in home country would increase tax burden
Exit
Minimize taxation on capital gain
33. DIRECT OWNERSHIP –DIRECT OWNERSHIP –
CONSIDERATIONSCONSIDERATIONS
Treaty between United States and China would
limit dividend withholding tax to 10%
Disposition of shares in China entity subject to
10% capital gains tax in China
Changes in shareholder(s) require regulatory
approval of Chinese authorities
34. OWNERSHIP THROUGH AOWNERSHIP THROUGH A
HOLDING COMPANY –HOLDING COMPANY –
CONSIDERATIONSCONSIDERATIONS
Shares in Holdco may be transferred without
Chinese government approval
Shares in Holdco may be transferred without
Chinese capital gains tax – much more difficult to
achieve after 2008
Increased focus on anti-avoidance and taxation of
nonresident enterprises
More anti-treaty shopping rules
Taxation of indirect share transfers
Access to reduced dividend withholding tax rate –
must show substantive business reasons, other
than tax avoidance objective
35. BENEFITS OF ANBENEFITS OF AN
INTERMEDIARY HOLDINGINTERMEDIARY HOLDING
COMPANYCOMPANY
Allow U.S. Co. to establish an entity with its own terms and
conditions without being limited to Chinese JV laws
Avoid future Chinese governmental approval on transfer of
ownership in China entity, which saves time and money
Provide an additional buffer from potential liability arising
from U.S. Co.’s China investment
Facilitate future financing strategies for China operations
and expansion
Allows an opportunity for expatriate tax planning where
appropriate (dual employment contracts, etc.)
CHINA Op Co.
37. HOW TO AVOID DISPUTEHOW TO AVOID DISPUTE
AND PROTECT YOURAND PROTECT YOUR
RIGHTS IN CHINARIGHTS IN CHINA
Due to legal and cultural differences, dispute
easier to arise in cross-border transactions
Chinese companies become more litigious
More uncertainty in Chinese laws and regulations
More difficulty in enforcement
38. HOW TO MITIGATE RISKSHOW TO MITIGATE RISKS
OF DOING BUSINESS INOF DOING BUSINESS IN
CHINACHINA
Understand Chinese culture and local business
practices
Plan carefully and move slowly
Form strong business relationships
Establish close relations with government officials
Localization of Management
39. MAJOR TYPES OFMAJOR TYPES OF
DISPUTEDISPUTE
Dispute with Chinese Joint Venture Partners
Dispute with Suppliers and Distributors
IP Infringement
Dispute with Employees
Dispute with Government Authorities
40. HOW TO AVOID DISPUTEHOW TO AVOID DISPUTE
WITH JV PARTNERWITH JV PARTNER
Is your partner able to deliver what you expect?
Take your time to select a right partner
Build trust with your partner
Have a detailed and practical JV Contract
Have a clear exit strategy
41. HOW TO AVOID DISPUTEHOW TO AVOID DISPUTE
WITH SUPPLIER ANDWITH SUPPLIER AND
DISTRIBUTORDISTRIBUTOR
Have clear criteria for supplier or distributor
selection
Keep certain level of control over your suppliers
and distributors
Take particular care for IP protection
42. HOW TO PROTECT IPHOW TO PROTECT IP
RIGHTSRIGHTS
China does protect IP rights and makes the
system work for your benefit
Register IP rights timely
Take both defensive and offensive measures
Educate your Chinese employees
Classify IP rights and limit their access
43. HOW TO AVOID LABOR-HOW TO AVOID LABOR-
RELATED DISPUTERELATED DISPUTE
Know both national and local rules relating to
labor and social welfare
Formulate work-related disciplinary rules and
bylaws
Have a country-tailored and detailed labor
contract
Be careful of the procedural requirements
44. HOW TO DEAL WITHHOW TO DEAL WITH
PRC GOVERNMENTPRC GOVERNMENT
Make efforts and take time to build a trustful
relationship with government
Know the scope and limits of each governmental
authority
Set clear internal guidance on dealing with
officials
Put all important things in writing
45. HOW TO RESOLVE AHOW TO RESOLVE A
DISPUTEDISPUTE
Applicable Law Issue
Litigation vs. Arbitration
Choose a Favorable Venue
47. Risks – considerations for companies doing business in China
Accounting & control challenges in dealing with foreign
subsidiaries
Tax considerations from a U.S. standpoint
48. COMMON FOREIGN OWNEDCOMMON FOREIGN OWNED
ENTITIES IN CHINAENTITIES IN CHINA
-Wholly Owned Foreign Enterprise (WOFE)
-Representative Office
-Joint Venture
49. IP IN CHINA vs. IP NOT IN CHINAIP IN CHINA vs. IP NOT IN CHINA
COST SHARING vs. COST PLUSCOST SHARING vs. COST PLUS
-Transfer pricing requirement and enforcement in China
-Transfer pricing requirement in U.S.
-U.S. CFC rules and subpar F income
-Holding company structure
50. CORPORATE TAXESCORPORATE TAXES
IN CHINAIN CHINA
-Corporate Income Tax (rate change in 2008, tax holiday
grandfather treatment, new holiday for qualified industry and
special zones)
-Business Tax
-Value Added Tax
51. PRC NEW TAX DEVELOPMENT :PRC NEW TAX DEVELOPMENT :
REPRESENTATIVE OFFICEREPRESENTATIVE OFFICE
-Circular 18 effective 1/1/2010
-Limited head count requirement
-Using actual profit method to file quarterly CIT and BT
-Other methods: “actual revenue-based method” (ETR
8.75%) or “cost plus method” (ETR 10.94%)
-Minimum deemed profit rate for cost plus is 15% increased
from previous 10% (the deemed profit rate stipulated in
Circular 19 is generally in the range of 15%-50% dependent
on the type of activities engaged by the nonresident
enterprises)
-Tax authority no long accept tax exemption applications
-Treaty treatment
52. PRC NEW TAX DEVELOPMENT :PRC NEW TAX DEVELOPMENT :
TRANSFER PRICINGTRANSFER PRICING
-Circular 2 issued in 2009 focus on transfer pricing issues
-500 transfer pricing tax officials by the end of 2010 with
intensive training
-167 cases closed in 2009 resulted in RMB 16.09B taxable
income adjustment and RMB 2.09B additional tax
-Transfer pricing report required if revenue > RMB 40M.
A Benchmark report should be in place for revenue < RMB
40M
53. U.S. COMPLIANCE REQUIREMENTSU.S. COMPLIANCE REQUIREMENTS
FOR FOREIGN ENTITIESFOR FOREIGN ENTITIES
-Form 5471 – Information Return of U.S. Persons With
Respect To Certain Foreign Corporations
-Form 8858 – Information Return of U.S. Persons With
Respect To Foreign Disregarded Entities
-Form 8865 – Return of U.S. Persons With Respect to Certain
Foreign Partnerships
-TD F 90-22.1 - Report of foreign bank and financial accounts
54. RISKS – CONSIDERATIONSRISKS – CONSIDERATIONS
FOR COMPANIES DOINGFOR COMPANIES DOING
BUSINESS IN CHINABUSINESS IN CHINA
55. ACCOUNTING & CONTROLACCOUNTING & CONTROL
CHALLENGES IN DEALINGCHALLENGES IN DEALING
WITH FOREIGNWITH FOREIGN
SUBSIDIARIESSUBSIDIARIES