September 2009

The Chinese PIT Application System is Updating By Ella Xu

Like we always tell our clients, China is changing fast everywhere.  Now, it is time for the government to throw a loop around the Personal Income Tax ( “PIT” in short) application more strictly.  Starting in 2002, the government started to develop the new systems for collecting PIT and implemented them in some pilot cities in the past years.  It came to Shenzhen in 2008 and started be used to for officials and employees in big companies. The definition of big companies is the company whose amount of PIT submitted on behalf of employees is over RMB100, 000 per year. It will spread to smaller companies and then finally cover all the companies in Shenzhen.
 

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Obama to add tariffs to some Chinese tire imports -- Umm, has everyone in the United States forgotten their history?

car tires.jpgCNN is reporting that  "the president decided to remedy the clear disruption to the U.S. tire industry based on the facts and the law in this case.  The tariffs will start at 35 percent in the first year, then would decline to 30 percent in the second year and 25 percent in the third."

And of course, the Chinese have already started to retaliate.  China's commerce ministry said on Sunday it had launched an anti-dumping investigation into imports of U.S. chicken products and vehicles.

The last time somebody tried something like this, we ended up adding a word to our collective vobabulary to represent the fall out from that kind of short sighted thinking -- "Hooverville."

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car tires.jpg

Mergers & Acquisitions are different in China, so lots of the questions you may want to ask are not going to apply here

Our office is in the middle of a handful of existing entity restructuring or merger.jpgcorporate acquisition matters and it is rather odd how many times we find ourselves saying, "Yes, we understand the question but no that concept does not apply here..."  In fact, sometimes the Chinese system will have no equivalent.  And when you do try to impose a Western style legal idea here, they may smile at you politely, but privatley they are likely to think you are being a bit silly.

Sometimes that is because the legal system here is at a certain state of development and those concepts have not yet become commonplace.  But that is not what I am talking about here.  They know that part.  It is their system and they know those faults much better than we do and steps are being taken to resolve things like food safety testing, financial transparency and the like.

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merger.jpg

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South African pigeon is 'faster than broadband', where in China, we can use our cell phones in elevators, tunnels, etc...

winston.jpgA Durban IT company pitted an 11-month-old bird armed with a 4GB memory stick against the ADSL service from the country's biggest web firm, Telkom.

Winston the pigeon took two hours to carry the data 60 miles - in the same time the ADSL had sent 4% of the data.

Telkom said it was not responsible for the firm's slow internet speeds.

The idea for the race came when a member of staff at Unlimited IT complained about the speed of data transmission on ADSL.  He said it would be faster by carrier pigeon.

"We renown ourselves on being innovative, so we decided to test that statement," Unlimited's Kevin Rolfe told the Beeld newspaper.  The full story is carried on the BBC if you want to read more about Winston the data transfer pigeon.

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