The official trade war between the US and China seems to be entering its end game. But that does not mean the hostilities will end. Making sense out of what the world’s first and second-largest economies will do will only be slightly easier. A few speakers at our office might be able to help you out.
Category Archives: Beida
The reform of the income tax in China will drive many expats out of the country as it will kick in by 2021, as foreign and local taxpayers will fall under the same taxation rules, says financial expert Paul Gillis on his weblog. Especially the equal treatment for housing and education costs will become too costly for expats, or their companies.
Two financial regulators in the US, the SEC and the PCAOB, have joined the trade war of their country and combined it with their struggle for better accounting practices in China, writes Beida accounting professor Paul Gillis at his weblog. While the complaints are not new or surprising, he wonders about the timing, Gillis adds.
Accountants have to figure out what is happening in a company, and the difference between Western and Chinese practices makes that often hard, says Paul Gillis, accounting professor at Peking University, and author of the leading website ChinaAccountingBlog to Young China Watchers.
China’s luxury travelers are high on the agenda of the tourism industry, and Rupert Hoogewerf, publisher of the Hurun China Rich List, sees a few major trends. Family trips are emerging as a preference, and WeChat groups of alumni of key universities a forgotten way to connect to the luxury travelers, he tells in the South China Morning Post.
Registering offshore, through so-called VIE’s or variable interest entities, is more popular than ever for Chinese companies, even though the Chinese government tries to stop this circumventing trick. Tencent Music Entertainment was the last one to use it for its IPO and get away with it because investors seldom read the disclosure, says Paul Gillis, accounting professor at the Peking University, at the Nikkei Asian Review. And for good reasons.
The Hong Kong IPO of China’s success story Xiaomi disappointed greatly. Beida accounting professor Paul Gillis explains at Quartz why the investors did not buy the company’s valuation. “I think it is hard for investors to buy the valuation.”
In a Washington mall, the Chu Silk manuscript – China’s equivalent of the Dead Sea Scrolls can be found. Journalist Ian Johnson describes how those precious relicts disappeared from China and ended up in the US, a journey now meticulously describes by the Chinese scholar, Prof. Li Ling of the Peking University for the New York Times.
Five years ago Hong Kong, once a center of international finance, was demoted by the European Union as a financial regulatory area on a similar footing. Beida accounting professor Paul Gillis applauds that after five years the HK legislators start to move to reform the auditors, but feels the action is far from enough, he writes on his weblog.