Economy & Trade

Ancient Square-Wheeled Bicycle Discovered In Great Wall Archeological Dig

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Bike-with-square-wheelsEveryone know the bicycle has been ubiquitous in China for decades, with brands such as the “Flying Pigeon” almost legendary in their scope of vast numbers of users. Yet although the bicycle is commonly believed to have originated in Europe in the 19th century, recent excavations near to the Great Wall at Simatai close to Beijing may give this hallowed vehicle a much earlier date of invention – the Xin Dynasty of China of nearly 2000 years ago. Continue reading…

New Opportunities for Dutch SMEs as Netherlands PM visits China, Joins AIIB

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Flag China NetherlandsBy Steven Elsinga

The Netherlands has decided to join the Asian Infrastructure Investment Bank (AIIB), an international financial institution proposed by China to rival existing institutions like the World Bank, the IMF and the Asian Development Bank.

Prime Minister Mark Rutte announced the intention of the Dutch government during his official visit to China from March 24 to 29. The Prime Minister, accompanied by the Minister for the Environment, visited Shanghai, Shenzhen and attended the Annual Conference of the Boao Forum in Hainan. Continue reading…

China Outbound: HR and Visa Issues of Moving to Emerging Asia

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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 delve into the ongoing trend of China-based companies moving to lower-wage destinations in Southeast Asia and India. Fueling this are both the rising costs of manufacturing in China, as well as the maturing Chinese middle class. In the coming years, goods produced more cheaply in emerging Asian nations will find their way to China’s consumer markets, fueled by FDI from both China and abroad. The future will increasingly see executives moving across emerging Asia, bringing along a new set of HR and legal challenges. Continue reading…

Comparing China’s Business Costs With Asian Competitors

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CDE Op-Ed Commentary

In this final part of this China-Asia comparison series, we take a look at the differences in business costs between China and its Asian competitors. Operational costs in China can vary significantly within the country, yet savings in lower wages can be offset by increases in logistics overheads. Even within China there is plenty of scope for shopping around and comparing overheads.  When adding the entire region of Asia into the mix, there is a huge amount of research and digging around to do to get to any meaningful comparisons – let alone the actual cost of getting that data in the first place. Asia is a big area, and finding out the real costs of business is a daunting task. Its something very few, if any, China based consultants are able to manage. Continue reading…

Tax Benefits of Changing from an RO to a WFOE

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Company ChopBy Stephen O’Regan
International Business Advisory
Dezan Shira & Associates

There are many reasons why setting up a Representative Office (RO) in China is beneficial for a company, with the simplicity and low cost of the registration process being among the most attractive. If a company is beginning its venture into China or only wants a research/support post then an RO is a great way to get started.

There certainly are uses to an RO but at some point in a company’s development, either if it wishes to expand or the expenses are too high, it will mature beyond the scope of the RO and from that point on the RO no longer becomes cost efficient. One must keep in mind how tax on an RO works. ROs are taxed on their expenses which can be quite considerable if companies consider rent, salaries and other variable costs. Continue reading…

The Strategic Reasons Behind Recent China MNC Closures

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A number of high-profile foreign investors have announced office and factory closures in China, while at the same time “unfriendly” barriers to certain Western hi-tech industries, and most notably software and IT have been announced. While the media often portrays this as symptomatic of problems in China, due to a “slowing economy” and “unfriendly business practices”, my view is that these are normal occurrences in the typical life of a multinational company. I do not believe, with one or two obvious exceptions, that they represent a trend of a “bad China” or a country where foreign investors are generally and increasingly having a tough time, one or two specific sectors excluded.

In actual fact, China realized the second highest volume of Foreign Direct Investment in the world last year, according to the World Investment Report 2014, produced by the Geneva-based UN Conference on Trade and Development (UNCTAD), which stated that FDI was a rising trend that would continue. So the bigger picture doesn’t support China as being FDI unfriendly. This means that the reasons for high-profile China retractions and closures must instead be related to very specific cases or strategic decisions due to changing commercial circumstances. Let us review this by taking a look at some of these cases: Continue reading…

China & Asian Human Resources – Sharing Talent Across Borders

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CDE Op-Ed Commentary

The human resource map in Asia is changing. An aging China is consequently facing a decrease in its numbers of available workers, while countries such as India are increasing theirs – a result both of China’s One Child policy now affecting the labor pool and of India’s absence of any strategic family planning. Yet these two massively populous countries are not the only sources of labor in Asia.

As foreign investors begin to look more closely at emerging Asia as a China manufacturing alternative – yet keeping their China HR experience in hand, we can examine where future labor pools are likely to come from and examine how workforce experience and talent can be shared across Asia’s own emerging markets.  Continue reading…

Manufacturing in Asia to Sell to China’s New Growth: Legal Structures

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CDE Op-Ed Commentary

As wages increase in China, the demands of keeping a China manufacturing facility profitable are growing. Yet that is one side of the coin. China is also developing as a massive consumer market, and one that promises far more in terms of RMB product sales and profits than mere manufacturing facility profits could ever previously provide. A new, dynamic age for non-RMB averse foreign investors in China is arriving. Yet at the same time, foreign investors who have been based in China face challenges – the business environment is changing. This is not a bad thing; it is a consequence of various demographic trends moving the national economy in a particular direction. Continue reading…

Asia Briefing Bookstore Catalogue 2013
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