Structural Options for your China Sourcing Activities
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Welcome to ChinaInvest.biz Magazine - January 2012 Issue

ChinaInvest.biz is the editorial division of Klako Group and will be providing insight into investment, tax and operational issues for foreign companies entering and expanding throughout China.

Our January issue is focusing on how investors can source cost effectively and efficiently in China. “Made in China” is a compelling sourcing option. Today, in the consumer industry it has become an imperative. The story starts with cost savings on components and finished goods, but that is not where it ends. The main objective is cost advantage.  Of course, doing business in China just as in other developing markets around the world, involves significant risks and challenges, which are being considered in the following article.

Should you require further information, please contact our Directors at our Group Headquarters and/or China Headquarters.

 

Labor Law is a relatively new phenomenon in China, with the first comprehensive law passed
in 1994. The new law, adopted by the National People’s Congress (NPC) on 29th June 2007,
looked to redress some of the poor working conditions found in China, particularly for the
average worker. Prior to the passage of this law, most Chinese employee’s in small-medium sized
firms lacked employment contracts. Morever, they were short-term, giving employers the flexibility to
frequently bring in a new, often cheaper hires whenever they saw fit.


Structural Options for your China Sourcing Activities


There are various structures available to companies looking to source effectively in China. The individual options vary in terms of investment, risk, commitment, control and time frames. For the export out of China customers generally have two options:

1.    Exporting from China without any local representation or
2.    By establishing a sourcing presence in China

It is important for companies to understand what strategies are available and how these structures could fit into their existing business models.

To read the full article, please click here (PDF file)

If you require assistance with the above subject, please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

All information in this report is verified to the best of our ability and is assumed to be correct at time of release; however, Klako Group does not accept responsibility for any losses arising from reliance on the information provided within.

 


Free Consultation with China and Hong Kong Legal & Tax Advisors

The directors of Klako Group will be travelling throughout 2012 to meet with partners and clients and to participate in trade and tax-related events. Should readers or clients of the firm wish to meet our directors face to face during their trips to discuss matters concerning China, Hong Kong and/or Singapore business investments, please contact us at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Appointments will be made on a first come, first serve basis. The visits of our directors provides an excellent opportunity to all our readers to discuss first hand their own investment potential, opportunities and legal/tax updated for China, Hong Kong and Singapore in detail.

Please find here the tentative schedule for 2012:


February

Germany
1st: Hannover
3rd: Cologne
1-6th: ToyTrade Fair, Nuernberg
8-10th: Fruit Logistika Trade Fair, Berlin
10-14th: Ambiente Trade Fair, Frankfurt
15-18th: Biofach Trade Fair, Nuernberg
20-22nd: Hamburg

Shanghai
23rd: Presentation by Kristina Koehler with the Bencham Shanghai
Member on Stage: Introduction of Klako Group & Services

Hong Kong
28th: Presentation by Kristina Koehler with the Italian Chamber Hong Kong
Topic: Individual Income Tax in Hong Kong & China

March

Germany
4-6th: Prowein Trade Fair, Duesseldorf
4-7th: Hardware Trade Fair, Cologne
6-10th: CeBit Trade Fair, Hannover
20th: Stuttgart – HKTDC Event
22nd: Cologne – HKTDC Event

France
13th: Paris – HKTDC Event
15th: Lyons – HKTDC Event

United States
10-13th: Housewares Trade Fair, Chicago

April

Germany
15-20th: Lighting & Building Trade Fair, Frankfurt
23-27th: Hannover Hardware Trade Fair, Hannover