By Thomas E Wagner CFP 

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.

I agree with those author’s that have pointed out that the TAF and other liquidity injections to date have not increased the money supply. Unfortunately, this was not and is not the intent of the fed but a byproduct of a frozen banking system. The Fed’s end goal is to increase bank lending which is by its very nature inflationary, as it increases the availability of money in the domestic and global economy. Read the rest of “Inflation, Deflation and the U.S.-China Relationship” or post a comment

By Salina Leong 

The Industrial and Commercial Bureau recently announced new registration guidelines. Companies in the process of registering their business in China are asked to conform to the following new administrative changes:

1) Foreign companies are now asked to provide all application documents, certificates or copies printed on A4 paper. Prior to the new regulations, it was quite common for foreign companies to provide certificates and documents of different formats. The Industrial and Commercial Bureau no longer accepts documents falling outside the specified paper format. Read the rest of “China Business License - Stricter Guidelines” or post a comment

Guangdong Province is at the forefront when it comes to attracting foreign investment into China.

Companies are increasingly looking to emerging markets like China as a vital source of growth. The problem is these companies often lack an effective strategy for identifying which provinces within China to do business with. For any senior executive sitting in the ivory towers of their offices in London or…

Read the rest of “Doing Business in Guangdong Province” or post a comment >>

By Ron Cune 

When the complexity of a product increases, the complexity of the selling process increases proportionally. Especially in the business-to-business sector, the selling of products to Chinese buyers is a complicated and time-consuming business.

Once negotiations start, we in the West want to know what kind of product we can get for what investment. Having a specified price index helps to motivate us and indicates why we need to pay a certain amount for some things. This is how we create an apparent world for the buyer, who via a number of necessary add-ons will almost always end up higher than the low basic price. Read the rest of “Fixing the Best Price” or post a comment

Following on the global credit crisis, many have come to me to ask how these changes will affect China. As I have said earlier, China and the US are two sides to the same coin, and it pays to look at them as one economy, as this Newsweek article does. It goes without saying that this crisis will have a profound effect on China, and I’m not optimistic about the capability of the Chinese central government in Beijing to deal with it as quickly as it should.

Read the rest of “The New Investment Rules For China” or post a comment >>