tag:blogger.com,1999:blog-5458209304128232367.post7966102948284883439..comments2023-11-02T08:44:12.524-07:00Comments on China Economics Blog: Chinese Partners, Western Firms and the "Hotel California" effect.Anonymoushttp://www.blogger.com/profile/08649345297844206449noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-5458209304128232367.post-55317446572905161052009-06-29T10:05:21.520-07:002009-06-29T10:05:21.520-07:00While people may have different views still good t...While people may have different views still good things should always be appreciated. Yours is a nice blog. Liked it!!!Messihttp://www.hotelsuncity.co.in/noreply@blogger.comtag:blogger.com,1999:blog-5458209304128232367.post-41811652700390342012007-04-25T06:55:00.000-07:002007-04-25T06:55:00.000-07:00I am pissed you came up with that song rather than...I am pissed you came up with that song rather than me, as I frequently use song lines in my post titles. <BR/><BR/>I have written frequently on how there are essentially two legal tracks in China: one for domestic companies and one for foreign companies and I usually talk about how there is absolutely no point in complaining. Take taxes (please do!) as one of the best examples. Right now, the so-called average tax rate for foreign companies is around 15% and for Chinese domestic it is supposed to be around 30%. Domestic companies complain about this as being unfair, but in reality, the numbers are that foreign companies do pay around 15% and domestic companies (due to gross underreporting) pay around 5%. <BR/><BR/>So what's a foreign company to do? "Don't worry, be happy." (There, got in a song for you). Don't go into a business in China unless you can make a go of it under Chinese law and take comfort in the fact that things are, ever so slowly, getting tougher on Chinese companies. For example, China just raised the tax rate a bit for foreign companies and lowered it for domestic companies to equal it out. This will likely prove to be a good thing for foreign companies as they will now be better positioned to argue for equality.Anonymousnoreply@blogger.com