From the first issue in 1974 and well into the 2010s, the China Business Review was an indispensable resource for businesses, researchers, and policymakers who needed a first-hand account of the challenges and the tremendous opportunities posed by the China market.
MNCs are now faced with a particularly stressful situation. As China’s economy is starting to slow, foreign companies are reassessing their footprint in China – and many have realized they no longer need the facilities, people, or partners they had. However, MNCs are finding that the broader regulatory climate and the psychology of laborers are shifting, making it difficult to safely restructure operations and prevent a labor or commercial disputes.
Transfer pricing—the price charged for intercompany transactions between entities in different tax jurisdictions—can be used to shift funds within a multinational corporation (MNC), and serves as an effective means to manage a firm’s finances.
Hailed as China’s most significant tax reform in more than two decades, the value-added tax (VAT) was comprehensively implemented as the country’s only indirect tax in 2016, effectively replacing the business tax (BT). The reform is part of Beijing’s efforts to restructure the Chinese economy from one driven by labor-intensive manufacturing to one that is service-oriented by easing the tax burden on service industries.
In recent years, China has increased its efforts toward combating high levels of environmental pollution, a result of the country’s accelerated economic growth. In 2012, China declared war on pollution, and put aside RMB 3.7 trillion for the battle; more than half of the funds were reserved for combating water pollution.
A total of RMB 423.3 billion was spent on tourism during this year’s Chinese New Year holiday period, a 15.9 percent increase from last year according to the National Tourism Administration. As part of a seven percent increase in outbound tourism, about 6.15 million Chinese nationals took overseas trips.
Director of the Center on U.S.-China Relations Orville Schell describes the six most urgent recommendations for the US-China relationship.
China’s labor market changed in 2016. Despite job demand cooling in the beginning of the year, China’s job market has been steadily growing since the second quarter. Average monthly salaries have also increased, particularly in tier-one cities.
Decoupling notions of upward mobility and increased consumption will be crucial to China’s future prosperity. China’s economic rise has been based on a model of rapid industrial growth, manufacturing, and export. But now, growth is slowing and China’s population is struggling to cope with polluted air, soil, and water. In response, the government has switched to a path of sustainable development and energy efficiency.
Poorly executed investigations in China fail to contain potential compliance, regulatory and business continuity problems, and can often increase the risk of scrutiny from government investigators, disrupt supply or distribution chains, and disgruntle employees.
China’s energy planners seek to increase production, distribution, and consumption of renewable energy as a means to diversify energy supply. However, as China attempts to transition from coal to other energy sources, it struggles to utilize existing renewable capacity. This inefficiency, caused by overcapacity and grid limitations, has hindered the country’s ability to achieve renewable sector development goals.
