Opportunities in China

Like I said in the introduction, it’s not all bad news here. Factories want orders!! Of course, everyone wants them, but factories that are still in business have employees and need to pay for them so they are aggressively looking for new orders. This means that buyers with cash are in a great position. Indeed, if your own financial house is in order, this recession…

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By Teresa Zhang

China Administration of Taxation recently promulgated a Circular (Guoshuifa 2009 No 3) (“hereinafter referred to as “The Circular”) to strengthen the control of Non-TRE Income Tax Resourcing Deduction. The below mentioned enterprises shall be regarded as Chinese Tax Resident Enterprise (TRE):

a.    An enterprise which is established and registered in China, or
b.   An enterprise which has in actual fact a management institution in China.

Correspondingly, Article 2 of the Circular indicates that so called Non-TRE which shall be set up in accordance with the law of the foreign country (region) whose actual administration institution is outside China; could have incomes originating from China without setting up institutions or establishments in China or they have already set up institutions or establishments in China but the income is not effectively connected with the institutions or establishments that were set up in China. Read the rest of “Tax Administration for Non-Tax Resident Enterprises in China” or post a comment

By Zennon Kapron

Prior to joining the WTO, the knowledge and experience of bank staff in Chinese banks was not an issue. Most domestic banks were very inwardly focused on their core domestic business and staff had the capabilities to match. However, as more and more SOEs were either listed or entered into partnerships with foreign multi-nationals, the requirements of domestic companies changed and expanded. No longer was it a case of simply domestic business - China had gone global. The issue then became staff experience and capabilities and as most Chinese banks didn’t have the experience in-house, they looked west.

Foreign talent primarily came from tie-ups between domestic and foreign banks. China’s entry into the WTO meant that foreign banks could start to take stakes in domestic Chinese banks and the lure of 1+ billion customers meant that nearly every foreign bank had some sort of China strategy. So with the domestic banks looking for experience and the foreign banks looking for a piece of the pie, it looked like a good match. Read the rest of “Foreign talent - Local Chinese banks” or post a comment

The stock market had a decent day today, with the SSE Composite rising 1.25% to close at 1895. Bad news about manufacturing was overshadowed by an announcement that the government will expand a plan to subsidize household appliance purchases by farmers. That helped appliance manufacturers, who led the market up. I suspect that we will see an…

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Over the past several weeks I have read countless articles supporting conflicting positions on the Fed’s ever increasing injections of capital into the banking system as well as the proposed 700 billion dollar bailout of the banks. Most authors have taken one side or the other, either agreeing with the massive injections as necessary or railing against the Fed and Treasury for leading us down an inflationary spiral.

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