Made in China 2025: Ramifications for Foreign Companies

Made in China 2025 is one two mammoth economic efforts announced in the last decade aimed at solidifying China’s global economic prowess (the other being One Belt and One Road initiative). The Made in China 2025 program is a comprehensive strategy to upgrade China’s manufacturing base by adopting ‘intelligent manufacturing’ principles, [...]

2018-12-28T19:03:16+00:00 September 16th, 2018|

Repatriating Profits From China as a Foreign Investor

China has long since maintained strict foreign exchange controls - a common concern and headache among foreign investors. Businesses will naturally think twice about investing in the first place if they are unsure of their ability to repatriate profits. Recent economic news in China has increased these concerns. Since the massive [...]

2018-12-28T19:10:40+00:00 September 4th, 2018|

Tips for Employee Retention in China

Low employee retention in China is a major issue for companies across a variety of industries. According to a survey conducted by Hay’s recruiting, 35% of employees left their company within 2 to 4 years.[1]  Fourteen percent left their employer within 2 years.  Additionally, a gallup survey from 2012 showed that [...]

2018-12-28T19:15:17+00:00 August 20th, 2018|

China’s Rules on Outbound Investment: Where Are We Now?

China's rules on outbound investment shifted considerably following the surge in capital outflows in 2016. In December 2017, the National Development and Reform Commission (NDRC) issued a new system regulating outbound investment outlined in the Administrative Measures for Enterprise Outbound Investment. The new rules bring changes to the reporting and monitoring [...]

2018-12-28T18:59:57+00:00 August 10th, 2018|

Corporate Investigations in China

Since China’s corruption crackdown began, the authorities have caught a number of foreign companies engaging in corrupt practices. The Chinese government has sent a series of strong messages to foreign companies. For example, in 2014, GlaxoSmithKline was found to have been bribing doctors. Authorities ordered the company to pay a fine [...]

2018-12-28T18:59:31+00:00 August 5th, 2018|

Gauging China’s Economic Growth

China’s economic growth remains remarkably high even after years of GDP growth exceeding 10 percent in the recent past. The IMF’s growth forecast for China’s 2018 GDP growth is 6.6%.[1] While China’s growth remains substantial, a number of pessimists argue that growth may slow down to a grinding halt in coming [...]

2018-12-28T19:12:22+00:00 July 27th, 2018|

Chinese Companies Go Global: Recent Progress

The policy for Chinese companies going global was launched in 1999 as a call to encourage outward direction investment (ODI) in line with national strategic objectives. In particular, the policy was intended to accelerate the acquisition of foreign technology and expertise. Other goals include managing overcapacity in the Chinese market, improving [...]

2018-12-28T19:13:51+00:00 July 10th, 2018|

China’s Data Protection Rules: Navigating Compliance

China’s first comprehensive system of rules for data protection is included in the Cyber Security Law, which came into effect June 2017.  These rules govern the collection of personal data over information networks. Data protection within China is becoming a more politicized issue.  Chinese consumers, in fact, appear to have some [...]

2018-12-28T19:15:42+00:00 June 7th, 2018|

How to Revive the Chinese Manufacturing Industry?

The Chinese manufacturing industry will face challenges in the near future. How to maintain the competitiveness of the manufacturing industry in the global market, while transforming the country from a large production center into a large and advanced manufacturing power is the government's primary task. The slowdown in growth of the [...]

2018-12-28T19:16:04+00:00 June 3rd, 2018|

China’s Manufacturing Output Grew Sharply

Chinese manufacturing activity surged in December 2017, according to an independent indicator released Tuesday by the media group Caixin. This contradicts the government figure showing a slight slowdown in manufacturing growth. The Purchasing Managers' Index (PMI), calculated independently by IHS Markit and published by Caixin, stood at 51.5 last month versus [...]

2018-12-28T19:16:39+00:00 May 30th, 2018|

Recent Tax Cuts to Boost Entrepreneurship and High-Tech in China

In an attempt to stimulate innovation and entrepreneurship, China’s state council has recently announced tax cuts for small firms and high-tech companies.  The intention is that the reduction in their tax burden will spur companies to spend more cash on R&D, hiring, and business expansion. These measures come in direct response [...]

2018-12-28T19:16:50+00:00 May 30th, 2018|

Developing a Strategy for Finding Local Managers for your Organization in China

Having local managers and executives can be an invaluable asset for new entrants into the Chinese market. The use of local expertise and local networks can often mean the difference between business success and failure in China. Nonetheless, finding local executives can be a major challenge, as Western-style headhunting methods are [...]

2018-12-28T19:18:01+00:00 May 20th, 2018|

Attracting Top Technology Employees in China

Attracting first-rate technical talent is one of the most important ingredients of success for technology-oriented companies in China. Recruiting top technologists and engineers has become a formidable task as China pours enormous resources into advancing its technological capabilities. To help alleviate this problem, the Chinese government is developing incentive schemes to [...]

2018-12-28T19:18:59+00:00 May 16th, 2018|

China’s Minimum Wage Laws

Though China’s labour markets remain competitive, most know that the days of cheap, abundant labour are over and that, if seeking inexpensive labour is your primary goal, there are better alternatives to China. With rising wages, China is gradually shifting its economic growth priorities towards the growth of the consumer market. [...]

2018-12-28T19:19:13+00:00 May 4th, 2018|

China’s Economic Reforms in 2018: Will Progress Pick Up?

Looming economic reforms in China are once again creating fanfare, prompting outside observers to ask what will come of China's economic reforms in 2018. At the Davos Forum in January 2018, Xi Jinping’s top economic adviser and Politburo member, Liu He told audience members to expect big progress on China's economic [...]

2018-12-28T19:05:58+00:00 May 4th, 2018|

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