By Alexander de Neree

Besides the human tragedy, there has always been a certain irony in the fact that the communist system has never been able to achieve its main goal: to bring prosperity to the masses.

More specifically in China, there first where the farmers that did not particularly benefited from the revolution that was undertaken in their name. And now, much to Beijing’s chagrin one imagines, one scandal after another regarding the maltreatment of workers hits the international press circuit.

But, help is underway. Starting January 1, 2008, the new labour contract law will come in force in China. Surprisingly it has many characteristics of the Dutch system which will give rise to some alarm among employers familiar with the Dutch system. Read the rest of “Workers’ paradise” or post a comment

Getting prepared for your annual audit inspection

By Chris Devonshire-Ellis

All foreign invested businesses in China are required to prepare annual financial statements, including balance sheets and income statements for their annual Chinese audit. Such accounts must be in accordance with the Chinese accounting standards for business enterprises – there are now no differences between standards for domestic and foreign enterprises. Foreign companies, including their legally responsible persons, must take full responsibility for the truthfulness, legitimacy and completeness of these financial statements. These documents must be completed ahead of the submission of consolidated accounts for tax purposes by the end of April every year, for the financial calendar year ending the previous December 31.

These statements will be used for computing the taxable and distributable profit. Accordingly, an annual audit by a firm of certified public accountants registered in the PRC is required under Chinese law.

There are a number of areas where you need to take particular care and where there are some differences between Chinese and Western accounting practice. These are guidelines only as every business is Read the rest of “China’s audit regulations – Filings shortly due” or post a comment

As China’s role on the international stage grows, its trade practices have attracted increased scrutiny from the international community.

In recent years, a number of complaints have been made to the World Trade Organization (WTO) concerning the Government of China’s involvement in the marketplace and, in particular, the wide range of alleged subsidies — most of which are indirect — offered to…

Read the rest of “Spotlight on Chinese Subsidies” or post a comment >>

By Cliff Sosnow, Robert Kwauk and Elysia Van Zeyl

As China’s role on the international stage grows, its trade practices have attracted increased scrutiny from the international community.

In recent years, a number of complaints have been made to the World Trade Organization (WTO) concerning the Government of China’s involvement in the marketplace and, in particular, the wide range of alleged subsidies — most of which are indirect — offered to domestic producers and exporters by the Government of China. Recently, these complaints have crystallized into the establishment of a WTO panel at the request of the United States and Mexico to examine the existence and impact of subsidies that are alleged to have unfairly boosted Chinese exports and skewed Chinese buying decisions to favour Chinese-made products. Read the rest of “Spotlight on Chinese Subsidies” or post a comment

The recent series of high-profile labor events has thrown a spotlight on the protection of workers’ rights in China.

Several foreign multinationals, including FoxConn, McDonald’s and Yum! Brands Inc - which owns the KFC brand, had been investigated for providing poor working conditions, underpaying their part-time workers and engaging in other unfair labor practices.

Read the rest of “Protect your Employees, Protect your Business - A Practical Guide to Labor Law Compliance in China” or post a comment >>