Welcome to the another edition of the Hongda Business Services Roundup! Trust that you all had a very relaxing holiday over the Spring Festival and that you are getting back into the swing of things.
This week we have got a bunch of great posts lined up for you that include:
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3 Things You Must Know About Chinese Accounting Standards
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Manufacturing in China: Do Not Be “Assimilated”
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4 dangers foreign companies trading in China need to look out for!
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How to take advantage of the RMB when buying from China
Let's get right into it!
1) 3 Things You Must Know About Chinese Accounting Standards
Anyone who has been to China will probably tell you that they do things very differently over here, and that includes Chinese accounting standards!
Foreign companies coming to China for the first time will be faced with very different attitudes towards accounting, and could potentially get caught out. While getting good local China accounting advice is almost certainly going to be necessary once you're on the ground, it can't hurt to be aware of a few home truths before getting started.
In this blog post we're going to look in more detail at 3 of the common quirks, facts, tips, and differences between accounting in China and that which we're used to in Western (and other foreign) countries...
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2) Manufacturing in China: Do Not Be “Assimilated”
My message to foreign tech companies (particularly those involved with Internet of Things devices) who do manufacturing in China is:
- Chinese factories are NOT the Borg.
- Do NOT be assimilated.
- Resistance is NOT futile.
Protect yourself. It can be done.
Despite the horror stories you read about Chinese technology theft and counterfeiting, you can prevail against Chinese manufacturers provided you understand what is going on and provided you make use of key weapons available to you.
3) 4 dangers foreign companies trading in China need to look out for!
Chinese leaders have been struggling to put a floor under the economy, even as a fresh plunge in its stock markets and yuan currency have stoked worries from Washington to Wellington that conditions may be rapidly deteriorating.
Fourth-quarter gr ..
Chinese leaders have been struggling to put a floor under the economy, even as a fresh plunge in its stock markets and yuan currency have stoked worries from Washington to Wellington that conditions may be rapidly deteriorating.
Fourth-quarter gr ..
Access to 'the world's factory' and its latest products (at the best prices) is something that is very appealing to those looking at doing business in China, but navigating business on this side is rife with dangers that many who jump in head first fail to avoid until it is too late.
In this blog we will help foreign companies trading in China stay on the side of the law and avoid huge monetary mishaps by pointing out 4 dangers they need to look out for!
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4) How to take advantage of the RMB when buying from China
When I starting doing business in China 20 years ago, the RMB (also known as Chinese Yuan or CNY) was pegged to the USD at 8.26. While some foreign governments considered it predatory exchange rate manipulation, as an international buyer, I like the stability of a pegged RMB and everybody sourcing loves a favorable exchange rate!
In 2005 the peg was removed but the exchange rate of the RMB against the USA was tightly regulated by Beijing to a band of just ½ of a percent. Meaning it could only go up or down so much in a day’s trading. Later that bandwidth was increased. Why is this important to know if you are sourcing from China? Read on to discover the answer and how you can go about making the RMB work for you!If you are placing a PO to China in USD, your supplier is factoring their exchange rate risk into the price of the goods sold. The larger the band, the larger the risk for the supplier. The longer the time between the PO and delivery, the larger the risk for the supplier.
That it for this week's edition of the Hongda Business Services Roundup! 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.
See you all again next week same time, same place for another Hongda Business Services Roundup.
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