As The Wall Street Journal jarringly reported last month, the wages for manufacturing jobs in China and the United States are starting to converge. The trend undercuts the outsourcing of manufacturing, at least to China, and we’ve seen something of a revitalization of the U.S. manufacturing sector as a result. The upshot for your business: It may be time to stop looking to China for workers and start looking there for customers.
By Nick Hart, Director, Advisory Services
If you’re a business with overseas operations, chances are you’ve had experience dealing with the intricacies of Value Added Tax (VAT). If your business has already set up shop in China, you’re probably in tune with the China VAT Reform Pilot Program and the impending August 1st nationwide rollout of VAT in certain commercial sectors.
China’s tax systems are some of the most complex in the world. Regulations change at a rapid pace, so if you’re doing business in China or planning to take the leap, make sure you have good advice and systems in place for keeping up with the regular release of important information.
The fortune of the world is increasingly governed by development in China. In 2010 China overtook the U.S. in areas such as manufacturing output, energy consumption, car sales, and patent granted to residents. For most Americans, it’s very difficult to comprehend, let alone accept, how close China is to actually overtake the U.S. as the world’s leading economy. GDP in China is estimated to overtake the U.S. by 2018.
Given the increased importance of the Chinese economy, staying on top of these trends is now of paramount importance. Let’s look closely at three key trends.
Why does setting up operations in China give finance and human resource professionals pause? China has very complex business and tax regulations that can be utterly mind boggling for foreign businesses. Complicating the issue is the fact that regulations are subject to frequent change, as well as different interpretations by both state and local authorities. It can be a challenge just to keep track of what’s permitted, where, at a given point in time.
Here are some China business practices to consider when getting your operation off the ground.
Last week's webinar China’s Great Wall: Overcoming Expansion Challenges encouraged a lot of discussion. There were several interesting questions from attendees for HSP's China experts; here are some of the highlights, and answers.
If expansion to China is on your mind, good news: The Chinese economy is expected to become the world’s largest by 2020. The not-so-good news is that, even if you’re interested in simply exploring the Chinese market prior to making a long-term commitment, you may need to set up a legal presence. What entity options are available for your business? Read on to find out.
China can be a notoriously difficult place for foreign companies to do business. With strict rules for entities and complex tax regulations, just getting on the ground can be a pain in itself. But while sales may roll in to your Chinese entity, there’s an added complication foreign companies face: How do I move that cash back home? Consider these seven best practices for making your repatriation of cash from China go smoothly.
Last week’s webinar, It's Your Money: Cash Repatriation Best Practices, encouraged a lot of discussion.There were a number of interesting questions from attendees. Here are some of the highlights and answers.
Watching China’s meteoric rise throughout the last few decades has been fascinating, but recent news about slowing growth begs the question: What’s next for this emerging economy? Is growth sustainable? What factors will come into play and what challenges will develop for those looking to do business in this opportunity rich nation?