Got an email from an attorney/client/friend yesterday with a link to an IndustryWeek Article (Why Is China Cheaper?) and a note saying that I needed to give this "CLB's dumbest article of the month award." We do not actually have such an award (should we?) so for that reason alone, it is not in contention.
David Wofl at Silicon Hutong just did a post on ethical issues in China, Business Ethics and Culture Clashes in China and I love it for three reasons. First, it is very well written. Second, it imparts useful advice. Third, it says many of the things we repeatedly preach on this blog. In fact, replace
The big story in the China business/legal community this week is the back and forth between Muddy Waters and Sino-Forest (see here).I will reserve my comments on the specific situation until things develop further, but I will add my two-cents about something called a "Reverse Merger" or "RTO," the corporate structure at the center of
About a week ago, I did an article, The Five+ Best Books for Understanding China [link no longer exists]. The article was a public response to a request that I reveal "3-5 good books to read to understand China that are contemporary, but also something providing some historical perspective to current doings." I listed the
Muddy Waters is a hedge fund company that targets dodgy US-listed Chinese companies, shorts them, and then documents the fraud in which those Chinese companies engage. Muddy Waters has an impressive list of Chinese companies it has exposed, including China Media Express, Duoyuan Water and RINO International. These companies appear to have two things in
One of the things I love about blogging is how I get my stories. This one came to me via an international lawyer in Portugal who sent me a link on Buddha Steel (more on that later) from the China Accounting Blog. First, I am going to briefly discuss Variable Interest Entities (VIE) and how
China is virtually the sole supplier of rare earths to the world and it is heading towards that same position for polysilicon. The reasons are almost exclusively related to the peculiar way primary industry operates in China. What is occurring is an exchange with few benefits to either side. There are two areas of dispute
David Wolf at The Silicon Hutong blog just came out with a superb post riffing on the meaning of guanxi. The post A Few Notes on Guanxi [Link no longer exists] more accurately and concisely defines guanxi than anything I've seen. It is so good and so important, I feel I have no choice but
Our clients are always talking about where to invest in Asia, even more so in light of recent concerns about China no longer being a preferred destination for foreign investment. I have argued consistently that China is one of the best places for foreign investment in Asia. The World Economic Forum's most recent Global Competitiveness
Understanding Letters of Credit Avoiding Pitfalls in International Transactions Letters of credit are complex financial tools that can be risky if not properly understood. This post will explain what letters of credit are, delve into potential complications, and provide advice to avoid risks when using them for international transactions. A Cautionary Letter of Credit Tale
