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The continued pervasiveness of counterfeiting in China is not only a problem of law, but also one of enforcement. While China¡¯s laws and regulations conform to the agreement on trade-related aspects of intellectual property rights (TRIPS) and other widely accepted international principles, certain parts of China¡¯s protection mechanism have proven ineffective. Common examples are the high standards for criminal liability of counterfeiters, the high burden of evidence to prove bad faith registrations, and the difficulty to prove damages in civil proceedings¡¦
Read the rest of Protection vs. Enforcement: Where to start your China IPR Strategy?¡± or post a comment >>
March 26th, 2008 by China Business Success Stories
Tax and regulatory issues
By Nick Debnam & George Svinos, KPMG
The process of importing, distributing and selling luxury goods in China raises further challenges for companies, including a number of difficult questions regarding tax treatment, customs duty, logistics and the transfer of intellectual property.
Customs duty, import VAT and consumption tax can all be charged on luxury goods imported into China. The ability of brands to mark up their goods at dramatic premiums can also prove difficult to explain to tax authorities when the time comes to file income tax returns. Companies producing or trading luxury items need to understand how to avoid unnecessary or overlapping burden of tax and other duties. For example, VAT and business tax should in theory be mutually exclusive, since both are turnover taxes. Read the rest of ¡°Luxury Brands in China: Part V¡± or post a comment
March 25th, 2008 by China Business Success Stories
Having a meaningful footprint in China has become a strategic imperative for multinational companies from around the world. The attraction is China¡¯s seemingly insatiable demand for products, services, capital and technology. George D. Martin, partner and chair of the Faegre & Benson China Practice, sees the current acquisition boom in China as the logical culmination of foreign investment trends that he first observed when practicing in Shanghai in the mid-1990s. Martin expects this M&A trend to continue. But in the years to come, he advises, it won¡¯t be just foreign companies on the buy-side of cross-border M&A deals involving China.
China¡¯s accession to the World Trade Organization (WTO) in 2001 opened new sectors to foreign investment and eliminated many restrictions on structuring those investments. As a result, joint ventures that were in vogue among early China investors waned. Read the rest of ¡°Dealmaking in China: Getting In on the Action¡± or post a comment
March 20th, 2008 by China Business Success Stories
By Mona Chung
China has become a synonym for future business growth. It is the business nirvana of the 21st century. It is the place to be. Companies are scrambling to get a share of the action. Not a day passes without some company making an announcement of an investment in their future which involves China.
Their reason for this scramble is the expectation of gaining vast increases in shareholder value. Reported performance would suggest that these expectations are difficult to realise. Anecdotal evidence would suggest that decreases in shareholder value rather than increases in shareholder value should be the expectation. Why is this? One reason for this is poor marketing performance. Comparing companies that have been successful with those that have not suggests that better preparation directed at understanding the market context, marketing operating requirements (this includes marketing management) and their surrounding culture would have seen fewer red faces at senior management level and less red ink at shareholder level. Read the rest of ¡°Marketing-China and Getting it Right¡± or post a comment