China-India Business Update: Mar. 29

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Mar. 29 – Welcome to our biweekly China-India round up in which we examine the latest bilateral news and commentary affecting foreign investment in both countries.

Global Economy’s Center of Gravity to Shift East, Settle between India and China
An article written and released earlier this year by London School of Economics Professor Danny Quah is getting a lot of attention recently by quantitatively illustrating how the global economy’s center of gravity is gradually shifting eastwards towards India and China.

Indian, Chinese Chambers of Commerce Sign 400 MoUs in Singapore
The Indian and Chinese Chambers of Commerce signed 400 memorandums of understanding (MoUs) on Monday in Singapore, signaling a strengthening of ties between Chinese and Indian industries as well as government.

China and India Rethink Nuclear Power Use after Japan Earthquake
Debates on the use of nuclear power as a form of alternative energy rose in emerging Asian countries last week as the nuclear crisis after Japan’s catastrophic earthquake and tsunami stood out as a prominent threat to the public health.

India Puts Accounting Practices in Line with International Standards
The Indian Ministry of Corporate Affairs recently said that it had aligned 35 Indian accounting practices with international standards, marking an important step to bringing International Financial Reporting Standards (IFRS) to India and making financial statements of Indian firms read similarly to those of their international peers.

Emerging Asia Pledges Carbon Emission Reduction Goals
China and India have recently submitted their greenhouse emissions mitigation goals to the United Nations Framework Convention on Climate Change. Although the commitments are not legally enforceable, the pledges mark a significant step forward in formalizing commitments made in Copenhagen back in December 2009.

Russia’s Rosneft Seeks Chinese and Indian Partnership for Arctic Exploration
Russia’s leading petroleum company Rosneft is considering Chinese and Indian firms as potential partners during its exploration of the eastern Arctic.

India’s 2011 Budget Proposal May Lead to Price Hike in Luxury Cars
India’s auto companies that import parts for their assembled car manufacturing may face a cost increase due to the country’s growing customs duty on pre-assembled parts and the expanded definition of semi-knocked down kits.

Dezan Shira & Associates provide foreign direct investment advice and services to clients in both China and India. The firm provides due diligence, incorporation, tax, accounting and other business services from ten China offices and five in India. Please contact the practice at china@dezshira.com or india@dezshira.com as appropriate, visit the firm’s web site here or download the firm’s brochure here.

With a focus on the business opportunities in two of the fastest growing economies in the world, Dezan Shira & Associates is holding a seminar at the Royal Overseas League in London on April 14th discussing the differences and similarities for foreign investors in the China and India markets. Chris Devonshire-Ellis, founder of Dezan Shira & Associates and China Briefing, will be the event’s key speaker, addressing the following topics:

  • China-India market demographics
  • Investment environments and infrastructure
  • Operational and logistics
  • Comparisons of legal establishment structures
  • Tax regimes and investment incentives

To RSVP and to find out more information on the event, please click here.

Related Reading
Doing Business in China
Our 156-page definitive guide to the fastest growing economy in the world, providing a thorough and in-depth analysis of China, its history, key demographics and overviews of the major cities, provinces and autonomous regions highlighting business opportunities and infrastructure in place in each region. A comprehensive guide to investing in China is also included with information on FDI trends, business establishment procedures, economic zone information, and labor and tax considerations. Priced at US$40 (PDF)

Doing Business in India
Our recently published, 156-page business introduction to India, the second fastest growing economy in the world, providing a thorough and in-depth analysis of India, its history, key demographics and overviews of the states and union territories highlighting business opportunities and infrastructure in place in each region. A comprehensive guide to investing in India is also included with information on FDI trends, business establishment procedures, economic zone information, labor and tax considerations, as well as an analysis of Indian business etiquette and culture. Priced at US$40 (PDF).