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from my experience operating in China, its really pretty hostile to foriegn enterprises. If you want to import into China, you face incredibly high import duti
by danimal88 9y ago
from my experience operating in China, its really pretty hostile to foriegn enterprises. If you want to import into China, you face incredibly high import duties. If you want to open a WOFE (wholly owned foreign entity), you have to recursively give them your ownership information so if you are venture backed, they will require your cap table, your investors cap table etc, etc. There is a reason there are very few American products in China outside of the biggest American brands, its simply too difficult and has too much compliance. I love China, but I do think the trade rules asymmetry with the US will need to be addressed at some point. There hasn't really been a detailed and honest discussion about this.
- mathperson 9y agoIt was called the tpp...
- whatyoucantsay 9y agoDon't be naive. The TPP will no more fetter the CCP than the WTO has.
- mathperson 9y agoWell the US is no longer part of the tpp.... In the counterfactual world where tpp is signed by the American president I think it would have quite potent https://www.google.com/amp/foreignpolicy.com/2015/10/07/china-tpp-trans-pacific-partnership-obama-us-trade-xi/amp/ https://www.google.com/amp/foreignpolicy.com/2015/10/07/chin...
- whatyoucantsay 9y agoWhy? The US is part of the WTO, which has been woefully incapable of reigning in Chinese currency controls or limits on foreign companies.
- hux_ 9y agoI don't think there is any asymmetry unless you are American. Where are the Chinese branded products on American shelves? This story plays both ways.
- nitrogen 9y agoThey get relabeled, but they are everywhere.
- mc32 9y agoNot sure it ever was or is, but been told that when entering China the fine print of the foreign-local partnership pretty much grants the CCP rights to your IP, do when they take your IP and copy it, it's technically legal. Hearsay, for all I know.
- ksk 9y agoAre those laws not applicable to their own domestic companies? Or are you saying the laws themselves are hostile to any business?
- whatyoucantsay 9y agoIf you think the asymmetry with the US is bad, you should look at how European businesses get treated! Carrefour gets shut down when the Dalai Lama visits France, most all Norwegian trade got shut down over a Nobel Prize China took issue with... at least the US has a large and unified negotiating position.