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Investing In Low Earth Orbit Micro-Satellite Telemetry in China

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800px-AEHF_1By Roy K. McCall

China’s LEO (low earth orbit) micro-satellite telemetry market (remote sensing and monitoring with satellites less than 500 kg) could be entering a new phase. With around 100 micro-satellites launched in 2014 with prospects of 150 more in 2015, the micro-satellite market is booming. The telemetry market it serves is growing from around US$ 100 billion in 2014 to over US$ 240 billion by 2020. Over 90 percent is commercial; or in other words, less than 10 percent is aerospace defense dependent. Continue reading…

China Outbound: New Investment Trends in Asia, Moving Your Business from China to Vietnam

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Our Latest Round-Up of Business News Affecting China-Based Businesses Investing in Asia

In this edition of China Outbound, we highlight Vietnam’s increasing attractiveness as an alternative to China, not only as a major manufacturing  destination in Asia, but also a lucrative market for selling high-end products. We start with an overview of China’s GDP growth, FDI trends, as well as the country’s disappearing tax incentives, which have inevitably increased the costs for doing business in China. From here, we move into practical business intelligence, with guides for setting up a representative office in Vietnam. Lastly, we provide a comparison of Visa requirements for foreign employees in China, Vietnam and India. Continue reading…

The New Free Trade Zones Explained, Part II: The Negative List

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CB 2014 09_Revisiting the Shanghai Free Trade ZoneBy Dezan Shira & Associates
Legal Editor: Steven Elsinga

Along with the release of the policy framework for the three new Free Trade Zones (FTZ), the State Council released the Negative List for Foreign Investment on April 20. Effective May 8, 2015, the Negative List provides an outline of the sectors in which foreign investment is restrained and is applicable only to the four current FTZs. For all industries not listed in this document, foreign investors will receive equal treatment to domestic companies. However, foreign investments that have bearing on China’s national security are subject to a Foreign Investment National Security Review. Continue reading…

China Announces Duty-Free Trade Status To All Least Developed Countries

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CDE Op-Ed Commentary

Chinese President Xi Jinping, speaking at the Asia-Africa Summit in Jakarta this weekend, has announced a trade initiative to all Least Developed Countries that China enjoys diplomatic relations with. Stating that all such nations would be entitled to duty-free tariff reductions of 97 percent of previous customs rates, he used the summit to promote China as a trade partner to Africa and to push forward the “New Silk Road” and the establishment of the Asian Infrastructure Investment BankContinue reading…

China Eases Currency Controls, Allowing Free Exchange of Foreign Currency Capital

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Foreign Direct Investment

By Rainy Yao

Recent months have seen a number of regulations by the Chinese government aimed to ease some of the restrictions that are part of China’s currency control system. The latest of these changes is the announcement by the State Administration of Foreign Exchange (SAFE) on March 30, 2015, stating that foreign-invested companies may now convert RMB to and from foreign currency in the capital account. Continue reading…

VIE Problems? Shanghai’s Free Trade Zone is the Answer

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CDE Op-Ed Commentary

Recent media coverage over the Chinese Government’s clampdown on Variable Interest Entities (VIE) has indicated foreign companies, and especially those from Silicon Valley in the e-commerce area, will suffer due to this positioning. China being horrible to foreign investors is becoming a recurring theme, yet long-term China observers will recognize that it simply does not work like that in the PRC. The country continues to relax regulations concerning FDI and has long indicated its discomfort with VIE investments. These investments have proven popular as a legal ‘solution’ in the past to enable foreign companies to gain effective control of a Chinese limited company. This is done in order to get around restrictions on foreign ownership laws, especially in the e-commerce field. Continue reading…

What the China GDP Figure Isn’t Telling You

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China’s economic growth slowed to 7.4 percent last year, causing the country to miss its full-year economic target for the first time since 1998. However, China also became the world’s top destination for foreign direct investment (FDI) in 2014, surpassing the United States. China maintained an average growth rate of more than 10 percent until 2010; its GDP growth rate reached a peak in 2007 at 14.2 percent. By comparison, the last time the U.S. economy (the only one bigger than China’s) grew by more than 10 percent was in 1950.

China’s lower growth has recently become a top concern for foreign investors. However, the national growth figure in a way distorts the true picture of the Middle Kingdom’s economic conditions. China is a vast and diverse country, with the economy in transition to wean off its decade-long reliance on heavy industry.

Continue reading…

China Costs Compared With Cambodia, Laos and Indonesia

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CDE Op-Ed Commentary

Asean-map_550x400pixOur sister website, ASEAN Briefing is running a ten-part, detailed series of articles about the costs of business in ASEAN and comparing these with China. First up are two of the smaller members of ASEAN, the China friendly, yet little explored nations of Cambodia and Laos, as well as the economic giant of Indonesia. 

The articles examine bilateral trade volumes, as well as other major trading partners and the most commonly traded products. In addition wage comparisons, infrastructure and other demographic data and intelligence concerning bilateral trade and opportunities are also discussed. These articles can be as follows for Cambodia here, Laos here and Indonesia here, and are of use to anyone interested in exploring alternative production facilities to China. The series continues during this week with Malaysia, Myanmar and the Philippines to follow. Continue reading…

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