Setting up an R&D Center in China

<span style="font-weight: 400;">The Chinese government is putting great emphasis on indigenous innovation as a driver of future economic growth and national prestige (as demonstrated by the 13</span><span style="font-weight: 400;">th</span><span style="font-weight: 400;"> five-year plan covering 2016-2020). It is, therefore, encouraging the establishment of R&amp;D centers within the country by offering a variety [...]

2018-07-11T15:26:12+00:00 July 11th, 2018|

Digitizing the Chinese Economy

In the digital sphere, China is both world-leading (primarily as a result of its enormous market) and catching up with others. Businesses and chinese government bodies are eager to ramp up digitization in china due to the ongoing prevalence of inefficiencies across industries. China accounts for more than 40% of global [...]

2018-07-11T15:25:16+00:00 July 11th, 2018|

Handling China’s Territorial Sensitivities as a Foreign Company

<span style="font-weight: 400;">China has begun showing considerably less leniency towards foreign companies over violations of Chinese “political correctness” than it has in the past. When companies refer to territories, over which China claims sovereignty, as separate countries, they risk jeopardizing their business survival in China.  Their business can be affected either [...]

2018-07-11T15:24:29+00:00 July 11th, 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 [...]

2018-07-11T15:22:39+00:00 July 11th, 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 [...]

2018-06-07T16:11:18+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 [...]

2018-06-03T10:46:26+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 [...]

2018-06-03T10:49:05+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 [...]

2018-05-30T18:25:48+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 [...]

2018-05-20T18:36:16+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 [...]

2018-05-16T17:08:37+00:00 May 16th, 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 [...]

2018-05-10T16:54:49+00:00 May 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 [...]

2018-05-09T12:52:35+00:00 May 9th, 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 [...]

2018-05-04T15:58:04+00:00 May 4th, 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 [...]

2018-05-04T13:21:06+00:00 May 4th, 2018|

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