In August, CW CPA took a trip to Beijing to interview some Chinese enterprises in the sectors of renewable energy, innovation and technology, automobile, finance leasing, creative media and chemical industry.We also had the privilege to exchange ideas with InvestHK’s Beijing office and update each other on policy changes as well as recent developments in Hong Kong and Northern China. A few of the noticeable industry leaders have achieved great success in the Eurasian continent as a result of the Belt and Road Initiative (BRI). Some of them have gone beyond to reach Africa and Latin America. One of China’s top 5 vehicle manufacturers has recently opened its vehicle assembly plant in the Industrial Development Zone of South Africa.

Chinese firms continue to seek business opportunities abroad

Although Latin America is not part of the original “One Belt, One Road” strategy, China has always been an active investor and builder of infrastructure projects in Latin America. Earlier this year, China invited Latin American and Caribbean countries to join the BRI, a proposal which many called a “natural extension”. While big players are busy building hydropower dams and railroads, many well-established private firms are establishing a stronger presence in Latin America to improve sales. Interestingly, Chinese tech start-ups are also fueled with passion wanting to be the first mover to conquer the Latin American market.

During our Beijing trip, we’ve also visited a financial leasing service provider as well as a social mobile network and big data-based cultural recreation marketing and distribution firm. Both have expressed that language and cultural differences are critical obstacles to run a business overseas. Professional firms such as CW CPA, with multiple linguistic capabilities and an extensive network of affiliates, could act as a bridge of communication for Chinese headquarters that wish to have someone to keep an eye on the local compliance for their overseas subsidiaries.

Riding on Hong Kong

In recent years, Hong Kong has played the role of “super-connector” linking the international community with Mainland China. Besides the well-known fact that Hong Kong offers an open business environment with a competitive tax system, the city is drawing up new schemes to attract more international high-level talents in sectors such as FinTech, Innovation & Technology and Informational & Communications Technology. To name a few, companies at the two major technology parks (Science and Technology Parks and Cyberport) in Hong Kong will be able to hire foreign IT workers under a new fast-track visa application process; Selected companies either funded by the Hong Kong government or operating from the city’s two technology parks can hire up to two people with a doctoral degree in a science, technology, engineering or math discipline. Each will receive a monthly allowance of HK$32,000 (US$4,000) for up to 24 months.

CW CPA currently has four offices in Greater China including Hong Kong, Shenzhen, Guangzhou, and Shanghai, as well as three overseas representative offices in London, Barcelona, and Bogota. We are a member of Allinial GLOBAL (https://www.allinialglobal.com/), a worldwide accounting association with over 130 member firms in over 380 overseas locations. We are also a member of UC&CS Global (https://www.uccsglobal.org/), a worldwide accounting association with over 190 offices in over 40 countries and No. 1 in Latin America. To know more about our China outbound direct investment services, please contact Shelley Lin (shelley.lin@cwhkcpa.com).

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