Archive for March, 2013

Direct Sales and the illegal pyramid scheme

Today this entry is about the differences between “Direct sales” and illegal pyramid scheme in China.
Qualifications for Direct Selling

Under the Regulation on Direct Selling Administration (i.e. Order of the State Council No.443), which was adopted at the 101st executive meeting of the State Council on August 10, 2005, and which come into force as [...]

Published by admin on March 28th, 2013 tagged China News | 1 Comment »

Big Chinese Developers Looking for Chinese Investors Abroad

There is a slightly new twist to Chinese investments abroad. Now it appears more and more Chinese developers are buying projects abroad to attract Chinese investors.  The “Wall Street Journal” on-line (www.wsj.com) posted an article on March 26 which reports on this growing trend.  The article entitled, “China Developers Look Abroad-For Chinese Investors” by Esther [...]

Published by admin on March 28th, 2013 tagged China News | Comment now »

Chinese Yuan Appreciates Against the USD in Value

For the first time in 19 years the value of the Chinese yuan has strengthened in relation to the value of the USD.  An article posted by Bloomburg On-Line online (www.bloomburg.com) on March 25, 2013, author Fion Lee reports in her article entitled, “Yuan Advances Beyond 6.21 Per Dollar for the First Time in 19 [...]

Published by admin on March 27th, 2013 tagged China News | 1 Comment »

Different types of investment to enter the Chinese market

(The Foreign Invested Commercial Enterprise)
Today is the turn of the Foreign Invested Commercial Enterprise (FICE). The aim of this entry is to present the basic characteristics of this investment instrument which basically is used to carrying on the following activities:

Import, export, distribution and retailing
Retailing–i.e. selling goods and related services to individual persons from a fixed [...]

Published by admin on March 26th, 2013 tagged China News | 1 Comment »

Volvo and China.

It is no secret. Many Chinese drivers and wannabe drivers like luxurious foreign made cars.  Knowing this, many foreign car makers have jumped into the Chinese market to take advantage of the situation.  Enter Volvo, the Swedish car maker.  Volvos are very popular in China and Volvo’s sales numbers prove that….or do they?
Reuters on-line news [...]

Published by admin on March 26th, 2013 tagged China News | Comment now »

Different types of investment to enter the Chinese market

(The Wholly Foreign Owned Enterprise: Part 2 of 2)
The purpose of this entry today is to complete this brief description about the functioning of the WFOE. In particular today we are going to concentrate on the corporate governance of this investment instrument.
Corporate governance of a WFOE
With regard to the governance of an enterprise, it [...]

Published by admin on March 25th, 2013 tagged China News | Comment now »

Different types of investment to enter the Chinese market

(The Wholly Foreign Owned Enterprise: Part 1 of 2)
Having examined the obstacles in doing business in China and explained some very important aspects of this particular market, it is time to introduce the main instruments at the disposal of the foreign investor to establish a presence I China. In fact these same investment vehicles frequently [...]

Published by admin on March 22nd, 2013 tagged China News | 2 Comments »

Chinese Culture Savvy and Business

U.S. Treasury Secretary Jacob Lew became something of a Weibo (a domestic Twitter like service) “rock star” on March 19, 2013 when he went with Chinese official to the Bo Yuan Dumpling House in Beijing near the U.S. Embassy.  What he ordered for lunch had Weibo abuzz with approving comments and scorn for the wasteful [...]

Published by admin on March 22nd, 2013 tagged China News | Comment now »

How M&A can mitigate cultural differences when entering the Chinese market

The complexities of the Chinese market can be very daunting and can make the more traditional physical ways of entering China, such as Joint Ventures and WFOE (Wholly Owned Foreign Enterprise), very difficult if you are not familiar with the characteristics of this market, and as I stressed in my previous entries, with the culture [...]

Published by admin on March 21st, 2013 tagged China News | 1 Comment »

Moving Money Out Of China

Staggering amounts of money exchanges hands and gets moved around China and out of China every day.  How is it done?  The “Wall Street Journal China” posted an article on its “China Real Time Report” yesterday, March 19, entitled, The Mechanics of Moving Money out of China”. (http://blogs.wsj.com/chinarealtime/2012/10/19/how-hong-kongs-legal-system-enables-china-cash-flight/) written by Alex Frangos. Mr. Frangos gives [...]

Published by admin on March 20th, 2013 tagged China News | 1 Comment »