Welcome to the first Hongda Business Services Roundup for July!
This week we discuss why one shouldn't rely too much on a 'China guy' when doing business here, take a look at where the UK is turning to after its exit from the EU, discover who you can call when someone infringes on your trademark in China and more.
Don't rely too much on your 'China guy' when doing business in China!
Brexit Shows UK Has Turned its Trade Face Towards China, India & the East
When someone infringes on your trademarks in China who you gonna call?
Hong Kong’s Richest Man Calls for Higher Tax Amid Wealth Gap
Let's get started...
1) Don't rely too much on your 'China guy' when doing business in China!
I've written a lot about a doing business in China (and what to watch out for) for our China Business blog, and this time around I want to take a look at some of the advantages behind hiring a foreign local, more commonly known as a 'China guy', to help act as an intermediate for your company in China, and take a closer look at why relying too much on them may not be in the best interests of your company over the long run...
How your company benefits from a 'China guy'
One of the most obvious reasons behind a decision to hire a foreign China expert is being able to leverage the vast amount of experience and skills they possess from working and living in China for an extended period of time.
These 'China guys' act as your boots on the ground. They are fluent in Chinese, they are able to navigate the cultural subtleties of Chinese business, and perhaps most importantly, they can report back to you in your own language.
Not only do they understand how some of the more suprising things of doing business in China are dealt with, but they understand your business, your company's goals, and they help you manage every aspect of your China project.
2) Brexit Shows UK Has Turned its Trade Face Towards China, India & the East
With the United Kingdom voting to leave the European Union (EU) bloc, current media is having a field day promoting either the dreadful fate that awaits the country or celebrations of its newfound ‘freedom’. Neither camp – in or out – have yet provided a detailed breakdown of what can in fact be reasonably expected to happen. Yet having dealt for nearly 25 years with British investment in Asia – about 15 percent of our total clients at Dezan Shira & Associates have been from the UK, totaling an investment of about GBP200 million over that period – we have pedigree when it comes to assessing the mood for outbound and inbound investment coming from and into Britain.
First though, let’s examine the makeup of the EU, review its bilateral trade agreements, look at where some of the EU trade frustrations are, and the potential bilateral opportunities there for taking by the UK in light of the country leaving the EU.
3) When someone infringes on your trademarks in China who you gonna call?
Counterfeiting is unfortunately one of those scary things that remains rife in China, and unlike knowing who to call when there is 'something strange in your neighbourhood', a lot of brand owners' trademarks get possessed before they even have a chance of staking their rightful claim over it.
China trademark horror stories have opened the eyes of those looking to do business here, and these days more and more brand owners are beginning to recognize the need to persist in protecting their intellectual property in this vast market with its unique trademark laws.
As brand owners and China become more serious about IP protection, trademark filings are continuing to skyrocket and local law firms/agencies are doing a better job at processing them, and handling disputes as they arise.
Incursions by foreign law firms over the past few years have gone a long way to helping incentivize local outfits to increase their responsiveness and quality, and standards are being raised across the board.
Today, brand owners can enjoy a wider range of options than ever before when it comes to protecting their trademarks. In this blog post we will introduce some of the top ranking local & foreign firms that one can call when dealing with infringement of your trademarks in China.
4) Hong Kong’s Richest Man Calls for Higher Tax Amid Wealth Gap
Hong Kong’s richest man called for higher corporate taxes to help tackle wealth inequality and urged the government to think of ways of countering rising discontent among its younger residents by providing them with more opportunities.
"Tax companies an extra one or two percent, then a lot of the poor would benefit," CK Hutchison Holding Ltd. Chairman Li Ka-shing told Bloomberg Television’s Angie Lau in his first interview with international media since 2012. "The most important thing the government needs to think about are the options made available to young people."
Li, who says the city is going through its toughest times in two decades, is weighing in on the global income-inequality debate that’s prompted the likes of Warren Buffett and Bill Gates to call for higher taxes for the rich. While low taxation has helped put Hong Kong atop the IMD business school’s list of most competitive places to do business in the world, one-in-seven residents there live in a household earning less than $2,100 a month.
Please let us know about any of your thoughts regarding some of the topics we recapped this week in the comments below, or let us know about any other topics you'd like for us to cover.
Hope you all have a very productive July and that you enjoy your weekend! See you next week for another Hongda Business Services Roundup.