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|

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. [...]

2018-05-04T13:06:52+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 [...]

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

Streamlining Business Registration in China: The Five-In-One-Business License

The Chinese government has simplified the process of setting up a foreign company by rolling out the five-in-one business license. This cuts a great deal of the red tape associated with the previous business registration process. In recent years, the Chinese government has publicly reiterated its stated goal to promote entrepreneurship [...]

2018-05-04T13:01:06+00:00 May 4th, 2018|

China’s VAT Reforms

In 2016, the VAT, or value-added tax, became the primary indirect tax in China, phasing out the Business Tax of past few decades. China’s VAT regime is now unique in its broad coverage of industries including financial services and real estate. From the very beginning of China’s reform period until recently, [...]

2018-05-04T13:22:24+00:00 April 4th, 2018|

China’s Cybersecurity Law and Compliance for Foreign Businesses

China’s Cybersecurity Law came into effect on June 1st, 2017. The law has two main purposes, known to the public. One is to facilitate a larger effort of the Chinese government to establish supervisory control over Internet content. The other major purpose is to bring China closer to international cybersecurity standards. [...]

2018-05-04T13:26:30+00:00 April 4th, 2018|

The Business Implications of China’s Social Credit System

China is in the process of rolling out its so-called social credit system, which will mobilize a vast system of omnipresent data collection to form rating system of businesses and individuals covering a wide variety of areas of interest to the Chinese authorities. While China will soon require companies to hand [...]

2018-05-04T13:29:38+00:00 April 4th, 2018|

Environmental Compliance for Foreign Companies in China

Compliance with environmental regulations should now be a major concern of virtually any company involved in manufacturing in China. The government is now putting teeth behind its enforcement efforts. For years, authorities did not enforce environmental laws in the interest of maintaining economic momentum. In 2017 alone, tens of thousands of [...]

2018-05-04T13:32:20+00:00 April 4th, 2018|

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, [...]

2018-05-04T13:39:08+00:00 March 6th, 2018|

Beijing Further Liberalises Investment in China’s Free Trade Zones

On January 9th, the State Council announced its decision to relax foreign investment restrictions in the countries free trade zones. The nation’s 11 free trade zone form a project to deepen economic reforms and encourage foreign investment. The recent announcement signals China’s commitment to maintaining foreign investor interest in China's free [...]

2018-04-08T15:07:14+00:00 March 6th, 2018|

Understanding the Commercial Courts of the China One Belt One Road Initiative

China is proactively carrying out plans to establish a set of commercial courts for the One Belt One Road Initiative (OBOR), the ambitious investment project to integrate 68 countries, covering 2/3 of the global population. In the past decade, international commercial courts have played an important role in globalization. Most notably, [...]

2018-02-15T15:34:40+00:00 February 15th, 2018|

A Chinese Employee’s Real Cost

For foreign companies, hiring Chinese nationals can be a good decision business-wise as these employees bring the potential for strong added value in several job functions, for instance in business development, branding, and project management. In addition, many people believe that local employees tend to require less in terms of labor [...]

2017-09-11T17:32:02+00:00 September 11th, 2017|

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