China Briefing Releases Due Diligence Report

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May 4 – China Briefing has today released a 19-page report on conducting due diligence in China. Focusing on the on-the-ground issues upwards, the brief contains a wealth of practical knowledge and experience gained from the firm Dezan Shira & Associates and based upon numerous live case studies gained from the past 20 years.

Featuring basic due diligence that business entrepreneurs can conduct themselves for free, and reaching as far as corporate due diligence for taking companies to listing, it takes the overseas executive through varying stages of legal, financial and operational due diligence and highlights common areas of concern. Importantly, the report discusses areas of manipulation that can exist in the examination of Chinese companies, including legal documentation, techniques of assessing financial statements, asset checks such as land use rights, fraud within human resources claims and how to evaluate government involvement and liabilities.

This report will be of practical use to all foreign executives involved in China purchasing, OEM manufacturing, business evaluations, joint venture partnering or conducting checks on a China subsidiary.

This report features the following topics:

  • The contradictory nature of China’s commercial laws and where these lie
  • Registration pointers concerning legitimacy
  • Chinese business licenses and permits translated and explained
  • Assessing Chinese management structures and talents
  • Misrepresentation of true limited liability status
  • Checking land use rights
  • Inheriting staff from a Chinese partner
  • Inflation of profit margins
  • Anti-monopoly laws and considerations
  • Identifying government liability when assessing assets
  • Assessing environmental issues and conducting checks
  • Analyzing Chinese financial reporting
  • Common manipulations on balance sheets
  • Evaluating contractual obligations and assets
  • Evaluating external, inter-company and competitor relationships
  • HR due diligence and outstanding mandatory welfare obligations
  • China due diligence checklist

The report is priced at US$40 and is available on the Asia Briefing Bookstore.

Dezan Shira & Associates is a boutique professional services firm providing foreign direct investment business advisory, tax, accounting, payroll and due diligence services for multinational clients in China. For more information, you can email, visit, or download the firm’s brochure here.