Por Jack Perkowski

Nas matérias econômicas, eu dou geralmente ao governo chinês marcas elevadas. Começando em 1978 com uma economia que poderia mal alimentar seus povos, o governo guiou China com 30 anos incredible da reforma e do desenvolvimento econômicos.

Eu fui aqui para a metade desse período, e testemunhei pessoalmente como China construiu para fora seu infrastructure, desregularizado uma indústria após outra, privatizado muitas de suas companhias state-owned e embraced o globalization juntando a organização de comércio de mundo. Em conseqüência destas reformas e de mais, China é agora a terceira economia a maior no mundo, e todos está esperando para ver o que os 30 anos seguintes trarão. Leia o descanso de “às vezes, o mercado quer apenas ir abaixo” ou afixar um comentário

Riscos comuns

Por Gregory Sy

Os riscos comuns, neste contexto específico, consultam a uma cooperação registada da entidade legal entre pelo menos um investor extrangeiro e o investor chinês. Previamente, esta estrutura era mais comum, embora foi firmemente diminuir devido às desvantagens ajustadas para fora abaixo.

Os riscos comuns podem ser classificados em dois tipos diferentes:
- Riscos comuns da equidade
- Riscos comuns cooperativos

A distinção principal entre os dois é que o último fornece para mais flexibilidade na distribuição dos rendimentos. Whereas Equity Joint Ventures require that the joint venture partners share in distribution of profits based on their proportionate Read the rest of “China Business Vehicles: Part III” or post a comment

By Ching Mia Kuang

Starting from 1 December 2004, a new investment vehicle has been available to foreign investor – Chinese government allow and encourage foreign investor to set up “Foreign Investment Commercial Enterprise”(FICE) in China to conduct wholesale, retail, and other permitted businesses. Such a type of business entity possess of the total right of trade and business. It can conduct import/export activities by itself, independent of the local import and export company or setting up a manufacturing company.

Furthermore, from 1 March 2006, the law permits FICE to apply and obtain approval documents from the local municipal Foreign Economic Relation and Trade Commission, instead of from Ministry of Commerce in Beijing.

The FICE is a limited liability company wholly owned by foreign investor. It is a legal person. The foreign investor has sole responsibility for its profits and losses. Limited liability is recognized by the amount of registered capital injected into the entity. The FICE is able to implement strategies that effectively conform to the interests of the parent company abroad. To carry on different trading business, it must have the required permits and certificates. Read the rest of “Registration of a FICE in Shanghai” or post a comment

Wholly Foreign Owned Enterprises

By Gregory Sy

Wholly Foreign Owned Enterprises (WFOEs) or limited liability companies whose investors are purely foreign are quickly becoming the most popular method of foreign investment in China. While foreign companies once thought (and were often compelled by laws) that a local partner was necessary to operate business in China, this is increasingly no longer the case in a wide range of industries.

Characteristics of WFOEs:
- Between one to fifty shareholders
- Restricts the right to transfer shares
- Prohibits public offering of shares
- Equity is divided based on contribution to registered capital and not allocation of shares
- Liability is limited to the amount of registered capital contributed Read the rest of “China Business Vehicles: Part II” or post a comment

By Kyle Long

J.P. Morgan’s recent decision to hire Elaine La Roche as its China vice-chairman may have not been a difficult one, given her qualifications as a former chief executive of China International Capital Corporation.

Leading the large, successful, foreign-owned investment banking business left no shadow of a doubt on her capabilities, with many public decisions and achievements made through her run.

But what about companies looking to hire candidates without such an extensive and verifiable paper trail of credentials? Read the rest of “Hiring From the Unknown” or post a comment