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American here. I own two different companies in China. “In order to do business in China, non-Chinese companies must Partner with a Chinese company.” These da
by bobjordan 8y ago
American here. I own two different companies in China.
“In order to do business in China, non-Chinese companies must Partner with a Chinese company.”
These days, what you’ve asserted here, is only true in a very limited set of circumstances.
For example, one of my companies is an engineering/supply chain consulting firm and the other is a fully licensed CM factory. With our factory, I have the China government paying me VAT tax rebates on export. I don’t have a Chinese partner, for either of these companies.
That said, it is very difficult to get setup here, without a Chinese partner. It is a difficult convoluted process. And, the locals have no incentive to see a foreigner succeed.
But if Americans want to own a private factory here, and more fully control their own IP and what they allow Chinese nationals to see. From my view as an American that owns a factory in China. They can do it!
Get on a plane, come over here, stay a couple years getting it done, and voila, you own your own factory in China, without a Chinese partner.
- arbuge 8y agoDo you speak Chinese fluently? I'm guessing this would be difficult to do if not...
- bobjordan 8y agoMy Chinese is still pretty basic. Yes, learning some conversational Chinese and a few hundred Chinese characters pretty quickly, is required, if only to keep sane. But, my Chinese communication skill wasn’t/isn’t/hasn’t been a critical key success factor for business success. More important has been, utilizing employees well and having the sense to recognize and call “bullshit” when needed. Like, if a process seems illogical from a good business practices or efficiency point of view. And someone is telling you something that seems wrong. It’s probably wrong, and they don’t know what they are talking about. And, learning quick, most of what you see here in China, is not as it appears on the surface. Underneath, it’s probably a rats nest. Being a good detective is required to survive.
- NicoJuicy 8y agoHow easy is it to get your money out of China?
- bobjordan 8y agoNot very easy. The best structure seems to be, to setup a parent company in Hong Kong. Then, setup a wholly owned subsidiary in China. Then, just send enough money every month to keep the China operations going. It is easy to get your money in and out of Hong Kong.
- xor1 8y agoI went to Hong Kong earlier this year, and I was amused by how there were luxury watch shops seemingly everywhere. My first assumption was that they were for laundering money out of the mainland.
- linkregister 8y agoThere are likely more than enough rich people living in and traveling to Hong Kong to organically keep these watch shops solvent.
- dsl 8y agoYup. Flying with hard currency or equivalents is difficult. Just don't bring the receipts or boxes for your new watch, bracelet, ear rings, and neck chain.
- theandrewbailey 8y agoI've seen that chocolate and baby powder smuggling is big in Hong Kong. https://www.youtube.com/watch?v=YQm5FZMforg https://www.youtube.com/watch?v=YQm5FZMforg
- joefranklinsrs 8y agoTo think about going to China, you're going to have to think about how to LEAVE china first "once the news goes out that you will be leaving China, alleged creditors will come out of the woodwork. The tax authorities will come up with taxes that you owe. Your landlord will explain why you owe it way more than you thought you did. Your suppliers will send you bills for items they never actually gave you. Your employees will demand all sorts of severance." https://www.chinalawblog.com/2018/09/how-to-terminate-your-china-factory-and-get-out-alive.html https://www.chinalawblog.com/2018/09/how-to-terminate-your-c...
- joefranklinsrs 8y agoI'm going to give you the benefit of the doubt that you aren't aware of the following things about the Chinese government: Estimated one million Uighur Muslims vanish into Chinese ‘re-education’ camps https://www.nbcnews.com/nightly-news/video/estimated-one-million-uighur-muslims-vanish-into-chinese-re-education-camps-1373688899675?v=railb& https://www.nbcnews.com/nightly-news/video/estimated-one-mil... China treats Uighur kids as ‘orphans’ after parents seized https://www.apnews.com/903a97b7c62a47b98553b6f422827dd7 https://www.apnews.com/903a97b7c62a47b98553b6f422827dd7 China social credit system - get your dog taken away. https://www.businessinsider.com/china-social-credit-system-punishments-and-rewards-explained-2018-4 https://www.businessinsider.com/china-social-credit-system-p... Vaccine Campaigner Detained on Tiananmen Square After Protest of 'Despair' https://www.rfa.org/english/news/china/vaccine-campaigner-detained-on-tiananmen-square-10032018115317.html https://www.rfa.org/english/news/china/vaccine-campaigner-de... If you are, or now that you have, and you are still supporting Americans killing American jobs and a malevolent Chinese government, then you sir, are a disgusting human being.
- andrewksl 8y agoYeah, he should set up in the good ol' US of A, where kids are never separated from their parents when their parents are seized for dubious reasons and ethnic groups are never targeted for placement in `extraordinary rendition` camps.
- joefranklinsrs 8y agoThe world is shades of grey. nothing and nobody is black or white. the context and magnitude of illegal immigrant separation/war criminals and muslim concentration camps are completely different.
- zzo38computer 8y agoIs more than the shades of grey; also is the other colours. And the possibility to be both or neither, too.
- LMYahooTFY 8y ago
- fipple 8y agoThat’s because China now homegrows its IP. The right time to control this would have been 1978, not 2018.