It's Friday and time yet again for another Hongda Business Services Roundup. Everyone around China is now truly back into the swing of things as the end of the month draws nearer, and this week we have got a mixed bag of posts for you that includes how US companies see business in China in 2016, what VAT tax is in China, the easing of restrictions on China 'green card' rules and HK's formiddable presence in Qianhai.
- Doing business in China: How US companies see it in 2016 (infographic)
- 20% of Qianhai zone economy from HK firms
- China Accounting 101: What Is VAT Tax In China?
- China relaxes ‘green card’ rules to lure more foreign talent
Let's get right into it
1) Doing Business in China: How Us Companies See It in 2016 (Infographic)
Last year we brought you a breakdown of an infographic from the folks over at Bain & Company on how US companies view the business climate in China, and looking back things were certainly looking a lot more optimistic then.
In 2015 the Middle Kingdom posted its slowest economic growth in 25 years, with analysts projecting an even tougher year ahead in 2016.
The country is in the middle of an economic slowdown that has seen its stock market tumble and its manufacturing sector shrink at its fastest rate in three years.
Foreign companies doing business in China are feeling the squeeze themselves with noticeable challenges such as increasing labor rates, lower margins and a shortage of skilled workers.
Amongst all this turmoil, however, there is a still a shining light at the end of the tunnel, at least according to the newest a survey Bain & Company conducted in collaboration with AmCham China. The survey of more than 450 AmCham China member companies and its most telling points has been presented in another great infographic.
Join us as we breakdown the outlook of US companies doing business in China for 2016 in the infographic here...
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2) 20% Of Qianhai Zone Economy From HK Firms
More than 2,439 Hong Kong companies had registered in Qianhai Shenzhen-Hong Kong Modern Cooperation Zone by the end of January, Qianhai Authority’s Principal Liaison Officer for Hong Kong Affairs Witman Hung Wai-man told reporters on on Thursday.
Though the number accounts for only 3.6 percent of the total registered companies in the special zone, they have contributed to more than above 20 percent of its economy.
At the same time, about 2,900 companies from 53 countries and regions with a registered capital of 205.47 billion yuan have been established in the Qianhai and the Shekou Free Trade Zone.
3) China Accounting 101: What Is VAT Tax In China?
What do you know about China accounting? Probably not that much.
What do you know about VAT tax in China? Most foreign companies entering China would probably say, “Very little. It must be similar to the West, right?"
Well, the similarity is that China does have VAT, but the similarities really end there I’m afraid.
VAT in China is notoriously complex and difficult, and so in this blog post we’re going to introduce and explain this important element of China accounting for your consideration so, no matter if you’re planning on entering China, or are already operating here, you have a better knowledge of this thorny topic…
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 ..
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4) China Relaxes ‘Green Card’ Rules to Lure More Foreign Talent
China is attempting to attract more foreign talent and investment by making it easier for foreign nationals to obtain permanent residence, or ‘green card,’ in the country, according to a statement released by the State Council on Thursday.
Under the present rules, which came into effect in 2004, foreigners holding permanent residency do not need a visa to enter the country. The application of permanent residence only applied to those who worked in government departments or laboratories of ‘key national projects’.
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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