Are You (Really) in Control of Your China Operations?

With the financial crisis hitting all facets of the real economy, companies everywhere are struggling and multinationals are being forced to review their global strategies as cash flow and credit terms become problematic. As a result, foreign direct investment flows have slipped to their lowest point in years. Some countries have been tempted by protectionism while main international observers and international organizations keep postponing the start of a supposedly imminent recovery. It seemed last year that China might weather the crisis fairly lightly, but that feeling has since been seen as optimistic. With investment down and pressure mounting on foreign companies to streamline costs in China, we take a look in this month's China Briefing at some common legal and financial issues that managers should be aware of when operating on the mainland. From business scope and articles of association to VAT analysis and foreign exchange policies, this issue is a must-read for anyone looking to efficiently and effectively operate in China.