Economy & Trade
New York State is increasingly reliant on China as a consumer of services and manufactured goods. In 2014, New York exported approximately US$4 billion to China, making it the state’s sixth largest export market. The top five exports to China are transportation equipment, waste & scrap, machinery (except electrical), primary metal manufacturing and chemicals. Meanwhile, the imports from China, New York’s largest trading partner, reached US$23 billion last year.
Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia
In this edition of China Outbound, we delve into the bilateral trade treaties and regional economic cooperation agreements involving China, ASEAN countries and India, as well as review the impact of these initiatives on investment opportunities for foreign enterprises. Most significantly, the bilateral relationship between China and India has been strengthened as Prime Minister Narendra Modi helped secure over US$22 billion in investments from China during his trip to the country. We also include permanent residency and other programs available for foreigners who wish to reside in any of nine ASEAN nations.
China is set to lose out as the United States Senate voted on June 23rd to allow the much-vaunted Trans-Pacific Partnership free trade deal to go ahead. That senate deal effectively paved the way for the TPP to progress unimpeded and prevents Congress from interfering with negotiated trade agreements.
It’s been a long time coming. It is now ten years since the TPP was first mooted as a Free Trade area, and it is a significant one at that. The United States, in conjunction with Canada, Chile, Mexico and Peru on the Eastern Pacific, and with Australia, Brunei, Japan, Malaysia, New Zealand, Singapore and Vietnam on the Asian side, represents 40 percent of global GDP and a combined economic strength of US$28 trillion. China, however, is not part of the TPP negotiations and has understandably been somewhat critical about them.
Dezan Shira & Associates has published a free, 112 page Guide to the entire ASEAN region, covering the demographics of each of the ASEAN member states in addition to comprehensive details of the China-ASEAN free trade agreement. It also includes case studies that compare manufacturing costs in China with ASEAN.
The India-ASEAN Free Trade Agreement and The Australia-New Zealand Free Trade Agreements are also covered in some detail. This is one of the most in depth guides to Doing Business in ASEAN yet published.
Dezan Shira & Associates took 9 months to research and gather this data. The firm maintains 12 China offices, as well as ASEAN offices in Vietnam and Singapore, and Dezan Shira Asian Alliance offices in Indonesia, Philippines, Malaysia and Thailand and has additional offices in India, the United States and Europe.
The Dezan Shira & Associates “Doing Business in ASEAN” guide may be downloaded on a complimentary basis from the Asia Briefing bookstore here.
Our recent series on China-ASEAN cost comparisons may be accessed here.
Asia Briefing Ltd. is a subsidiary of Dezan Shira & Associates. Dezan Shira is a specialist foreign direct investment practice, providing corporate establishment, business advisory, tax advisory and compliance, accounting, payroll, due diligence and financial review services to multinationals investing in China, Hong Kong, India, Vietnam, Singapore and the rest of ASEAN. For further information, please email email@example.com or visit www.dezshira.com.
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An Introduction to Doing Business in India 2015 (Second Edition)
Doing Business in India 2015 is designed to introduce the fundamentals of investing in India. As such, this comprehensive guide is ideal not only for businesses looking to enter the Indian market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes. We discuss a range of pertinent issues for foreign businesses, including India’s most recent FDI caps and restrictions, the key taxes applicable to foreign companies, how to conduct a successful audit, and the procedures for obtaining an employment visa.
An Introduction to Doing Business in Vietnam 2014 (Second Edition)
An Introduction to Doing Business in Vietnam 2014 (Second Edition) provides readers with an overview of the fundamentals of investing and conducting business in Vietnam. Compiled by Dezan Shira & Associates, a specialist foreign direct investment practice, this guide explains the basics of company establishment, annual compliance, taxation, human resources, payroll, and social insurance in the country.
An Introduction to Doing Business in China 2015
Doing Business in China 2015 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies that already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
California is the most populous U.S. state and the third largest state by area. The Golden State owns three of the largest seaports in the world, making it the Pacific Rim’s global gateway and the number one state in the U.S. for attracting foreign direct investment.
California has the world’s eighth-largest economy, overtaking Italy with a GDP of US$ 2.31 trillion in 2014. The state is considered the nation’s leader in industries such as agriculture, computer technology, aerospace technology, film/entertainment industry and tourism.
China’s planned Silk Road Economic Belt has generated a great deal of interest since announced several months ago. Yet how realistic are plans to open up Central Asia and create direct links between China and Europe, in addition to the creation of a maritime route taking in South-East Asia? A lot of media commentary has concentrated on infrastructure issues such as high speed trains, and upon the potential financing aspect behind the Asian Infrastructure Investment Bank. Yet in order to truly succeed, pan-Eurasian, formal institutions need to be created to permit formal dialogue, targeted at specific dialogue and development issues. How far has China moved forward with this? Who is involved? In this editorial I examine the institutions behind the Silk Road Economic Belt and the roles they could play in order to allow China’s dreams to reach their goals. Continue reading…
Our ASEAN Briefing site has recently completed a detailed nine-part series on the cost of doing business in ASEAN compared with China. Written by Chris Devonshire-Ellis, the nine country comparisons detail cost of labor and taxes, together with bilateral trade profiles between China and Cambodia, Laos, Indonesia, Malaysia, Philippines, Thailand and Vietnam. Brunei was omitted from the series as it is of limited interest to foreign investors except in the oil and gas fields, while Singapore was compared directly to operational costs in Hong Kong.
Chris explains, “As the operational cost of doing business in China continues to rise, some of the ASEAN nations start to become attractive. But which ones? The ASEAN-China Free Trade Agreement impacts on some countries in different ways, and not all ASEAN members are in AEC compliance as yet. Plus there are labor issues such as education and workplace capabilities to consider. Also, some ASEAN countries wage levels are not so far behind China. So where to go as a China alternative is a complex issue.”
Having run a successful business in China for close to quarter of a century, one gets used to the subtleties of the China market. As media rushes to inform us, breathless, that “China is experiencing a slowdown”, this is actually an entirely predictable scenario. Economies just do not continue to grow at 10 percent per annum indefinitely, and it is prudent to note that the last time the United States had such growth rates was 30 years ago.
In fact, I raised red flags concerning China five years ago, and began planning for our own budgets accordingly back in 2010. I also raised concerns over increasing China manufacturing overheads at that same time in “The Communist China Price.” Current media attention on China’s slowdown is therefore somewhat old hat news.