Category: Finance

Finance, accounting and all other money-related issues for US businesses in China.

Securing Employees’ Financial Futures

Asian economies are grappling with ageing populations, which place government finances under strain while putting pressure on individual savings as an additional source of income in retirement. The impact is felt more in developed countries, which are at a more...

/ June 14, 2017

China’s RMB Exchange Rate Issue Needs Objectivity

On February 24, hours after his new Secretary of Treasury, Steven Mnuchin, pledged a more methodical approach to analyzing China’s foreign exchange policy, US President Donald Trump publicly criticized China, labeling the Chinese as the "grand champions" of currency manipulation.

/ April 19, 2017

The Road to Globalization for Chinese Multinationals

Chinese companies looking for deals abroad face five main challenges when globalizing through M&A —including the often overlooked human capital.

/ April 14, 2017

Preventing Insolvency: How to Plan Cash Flow and Financing of a WFOE in China

Forecasting the financial performance of a proposed business and accurately assessing the investment required to launch operations is always a complex affair. In China, where foreign currency restrictions significantly complicate cross-border transactions, the strategic planning of funding foreign-invested entities (FIEs)...

/ March 29, 2017

How Can Individuals, Companies be Limited by  Bad Social Credit in China?

A new government system that evaluates and tracks “untrustworthy” individuals and companies could limit eligibility for financing, employment, and Party membership, as well restrict real estate transactions and travel. The Chinese government intends to fully implement this nationwide social credit...

/ February 3, 2017

Minimum Wage Rises in the Cities, Stalls in the Provinces

Minimum wages in China’s major cities rose in 2016, signaling the continued development of an emerging consumer class as much as increasing pressure on company labor costs. But the increases also point to an increasing divide, as wage growth stagnates...

/ January 25, 2017

Breaking Ground: Chinese Investment in US Real Estate

Chinese direct investment in US real estate,negligible until 2010, has grown dramatically and visibly. In 2015, China ranked third in US commercial real estate acquisition volume, trailing only Canada and Singapore, and tied with Norway.

/ January 11, 2017

The Complexity of Transfer Pricing for Intercompany Services

Most Multinational Corporations (MNCs) charge intercompany service fees for services provided to other entities within the same company or business. In China,tax authorities regularly encounter inconsistencies in transfer pricing for intercompany services due to lack of access to necessary information...

/ December 14, 2016

Case Study: Exploring China’s New Capital Gain Tax Calculation

Hong Kong and China entered into a Double Taxation Arrangement (DTA) in 2006. The treaty’s purpose is to avoid double taxation, reduce tax evasion, improve ties between both jurisdictions by reinforcing their respective tax laws, encourage competition, and promote investment....

/ December 12, 2016

New Regulations on Wage Payment Methods in Shanghai

According to the Shanghai Municipal Human Resource and Social Security Bureau, a new regulation on wage payment methods for Shanghai-based organizations went into effect August 1. The new regulation, issued to replace the 2003 version, expands the scope and makes...

/ November 2, 2016