China-India Business Update: Jun. 14

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Jun. 14 – Welcome to our biweekly China-India round up in which we examine the latest bilateral news and commentary affecting foreign investment in the two countries.

An Introduction to Indian Trade with Eastern China
At the end of 2010, as India-China trade crossed the US$60 billion mark, one-third of this trade was conducted with the East China region. In the region, there are more than 100 Indian companies, including major global players Larsen & Toubro, Patni, Infosys, NIIT, Tata Group, Elgi, and Mahindra Satyam. This article discusses the current investment and trade opportunities in China for the Indian investor.

Doing Business in India (Second Edition)
Asia Briefing has just release d the second edition of its popular Doing Business in India guide. The book covers all the topics essential for an enterprise or an individual to successfully establish and run a business in the country – including a demographic overview of the country as well as information on market entry structures, tax considerations, labor laws, operational costs, history, business etiquette and culture.

Doing Business in East China: A Guide for Indian Companies and Entrepreneurs
This book aims to begin to fill the void of information about the developments in terms of investment and trade of major Indian global players in China. Its content includes regional economic overviews, development and logistics information, investment opportunities, introductions to some of the region’s key development zones, and much more critical information and advice on how to successfully start and operate a business in China.

Auto Sales Slow Down in China and India
Domestic auto markets in China and India may no longer be able to repeat last year’s impressive sales records, as auto sales growth in both countries’ continued sliding in May. Experts say the market downturn is caused by a combination of long-term and short-term issues, including the impact of Japan’s earthquake and tsunami, soaring fuel prices, and inflationary pressure.

China’s Territorial Disputes with India
China and India have a number of territorial disputes along their roughly 4,000 kilometer-long border. This article discusses how the main territorial disputes have challenged Sino-Indian relations, particularly in the context of both China and India’s rise, and examines a case study of the Asian Development Bank’s loans and Arunachal Pradesh.

China Considers Diverting the Brahmaputra River
Faced with severe challenges brought by reduced water resources and a severe drought that has affected a large portion of the country, China has started to consider diverting water from the Brahmaputra River, the watercourse that originates upstream from southwestern Tibet (where it is known as the Yarlung Zangbo River) and finally enters India.

Asian Development Bank’s Clean Tech VC Funds Target China and India
The Asian Development Bank announced last week that it will inject around US$60 million into three venture capital funds in order to facilitate the development of green technologies in China and India.

India’s Infosys Expands in China, Opens Campus in Shanghai
India’s second largest global technology company Infosys is building a new campus in Shanghai. Expanding over 15 acres at the Zizhu Science and Technology Park, the campus is expected to become its largest software development center outside India.

Inter-Ministerial Group Discusses Opening Up FDI in India’s Multi-Brand Retail Sector
An inter-ministerial group on inflation has suggested permitting foreign direct investment in multi-brand retail as one of two steps to reduce rising prices and cut down the margin between farms and retail prices.

Dezan Shira & Associates provide foreign direct investment advice and services to clients in both China and India. The firm provides due diligence, incorporation, tax, accounting and other business services from ten China offices and five in India. Please contact the practice at or as appropriate, visit the firm’s web site here, or download the firm’s brochure here.

Related Reading
Doing Business in China
Our 156-page definitive guide to the fastest growing economy in the world, providing a thorough and in-depth analysis of China, its history, key demographics and overviews of the major cities, provinces and autonomous regions highlighting business opportunities and infrastructure in place in each region. A comprehensive guide to investing in China is also included with information on FDI trends, business establishment procedures, economic zone information, and labor and tax considerations. Priced at US$40 (PDF)

India Market Entry – The Establishment Legalities Explained
In this new issue of India Briefing we give the why and how for market entry into India. Specifically, we walk you through the eligibility requirements, tax liability, application and wind-up processes for liaison offices, project offices, branch offices, and private limited companies. For the latter, we also point out advantages over other types of offices and how these advantages may or may not apply to you.

The China Alternative
Our complete series on other manufacturing destinations in Asia that are now starting to compete with China in terms of labor costs, infrastructure and operational capacity. Our last report focused on India.

India Briefing News
Our magazine and regular news service about doing business in India. We cover topics relating to the Indian economy, the market in India, foreign direct investment and Indian law and tax.