Showing 133 posts by Joseph J. Dehner.
On July 1, 2015, China issued Interim Measures for Internet Advertising Supervision and Management, with a deadline of July 30 for public comment. Read More ›
In February 2015, China’s State Administration of Foreign Exchange (SAFE) simplified procedures for foreign investors in certain respects. This is another step forward in making foreign direct investment into China less time consuming and bureaucratic. The two most important measures were these:
- Revocation of foreign exchange registration with SAFE – this can now be accomplished directly with qualified banks. SAFE will take on an indirect supervisory role through its supervision of FDI-related foreign exchange of the banking sector. How this will unfold in practice remains to be seen, so watch for the implementation of CXircular 13 to commence on June 1.
- Revocation of the registration requirement to confirm a foreign investor’s investment when it acquires an equity interest owned by a Chinese party - this relates to both cash and non-monetary forms of acquisition. The practical effect should be to provide more flexibility to contracting parties in the timing and price adjustments possible for acquisitions of interests of Chinese equity holders by foreign purchasers.
China’s Ministry of Commerce has taken another step to deregulate over time the approval process for Chinese citizens and companies to invest overseas. This remains a controlled process, but the new rules described in the link below should assist in increasing China’s going abroad. Frost Brown Todd often works with Jun He on mutual client matters. Click here for a summary of the new measures in English and in Chinese.
US health care businesses see China as a waiting market, ready for the introduction of world-class hospitals and care centers. China understandably regards medical care as intensely domestic, and has limited foreign involvement to joint ventures or minority ownership. Read More ›
Frost Brown Todd teamed with Gonzalez Calvillo (one of Mexico’s largest law firms), RSM McGladrey (a multinational accountancy group) and Battelle & Battelle (a leading Dayton-based accounting firm, and member of the McGladrey network) to present an update on Mexican/US supply chain issues for the Automotive Sector. About 50 automotive supply chain companies attended, to learn: Read More ›
Compliance with Transfer Pricing Rules - A new way to bridge differences between the IRS and Customs –
Multinational companies face compliance challenges and spend substantial time and money on transfer pricing issues. Transfer pricing arises as an issue when affiliated entities within a business enterprise buy or sell goods or services between them. Major car makers, for example, have many subsidiaries and affiliates throughout the world. They ship parts from one affiliate to another through a supply chain that produces an assembled vehicle. To use a hypothetical, when a Chinese subsidiary ships a gear box to its parent company’s US assembly plant, this is a purchase/sale transaction between affiliates. Two major governmental issues arise when this happens – taxes and Customs duties. Read More ›
US manufacturers have home-turf protection through Section 337 of the 1930 Tariff Act. Enacted during the depts. Of the Great Depression, §337 has survived, while punitive tariff rates and many other protectionist provisions have been repealed. As the United States changed from a fenced-in economy to a leader in freer-trade thinking, it kept §337. Read More ›
China’s securities markets have blossomed like cherry trees in a Washington springtime, or like kudzu along interstates – depending on your viewpoint. The growth in publicly traded securities in China since the early 1980’s has been an enormous achievement of the great transition since the times of Mao. With success come fraudsters, tipsters and the other miscreants that Wall Street has encountered since its creation.
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Some veterans of trying to make Chinese operations profitable call it death by a thousand cuts. No one stab kills profitability. But the sum of mini-wounds can be financially fatal or coma inducing. Read More ›
Increasingly bipartisan pressure in the US is building to force China to increase the value of its currency. Senators Chuck Schumer, Sherrod Brown and others say that the RMB is undervalued by 25-40% or more, and that if it were allowed to float freely, US exporters would benefit. An implication of this thinking is that our trade deficit with China would be brought into balance. Read More ›
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Joseph J. Dehner Joe Dehner concentrates his practice on multinational business and securities disputes. He counsels a wide variety of companies, domestic and foreign, on issues confronting global business, including transnational investment, mergers and acquisitions, joint ventures, customs and trade issues, international business structures, distribution and agency agreements and the resolution of international disputes.