Political Cost, risk and benefits of China Political Benefits of China: 1. 2. 3. 4. 5. Sound Political system One –party political system Aware of Corruption Accountable Government Skilled Employees Political Cost of China: 1. 2. 3. 4. Higher expense Corporate Tax Transferring Wealth Reduced Profits Political Cost of China 1. 2. 3. 4. Higher expense orporate Tax Transferring Wealth Reduced Profits Legal Risk Factors: 1. 2. 3. 4. 5. 6. 7. Business scope Intellectual property protection Foreign exchange regulation Local tax and import duties Dispute resolution Labor law Form of representations Certificate, registration, and licensing