China 2012 Preparations and Predictions

Posted by Reading Time: 2 minutes

Dec. 27 – As many readers will know, China Briefing is written by Dezan Shira & Associates, a professional services firm that in 2012 celebrates 20 years of providing business advisory services to foreign investors entering the China market. Over that period, the practice has grown from a single office, SME-level business to possessing twelve China offices and a staff of several hundred. In doing so, it has been able to provide not just regulatory, legal and tax intelligence, but also combine this with the business acumen gleaned from two decades of successful China business practice in its own right.

Over the past two months, we have run several articles concerning the preparation for the coming year, as well as analysis and reporting on trends. In this piece, we gather these together as a convenient one stop shop for examining the potential for China’s economic and business environment during 2012.

Economist Annual China Summit Summary – a four-part report:
This series of reports summarizes discussions and findings of the “Economist” annual China summit which took place in Beijing on December 16. The reports present a complete China picture for the readers, including discussing the economic and political challenges which can bring China to a tipping point, as well as promises and presumptions in the Chinese new economic age.
Part I – The Economist Annual China Summit Summarized
Part II – Has China’s Demographic Dividend Payout Ended?
Part III – China Looking Forward – Road Bumps Ahead
Part IV – Lust? Caution? Becoming a Global Challenger with Chinese DNA

China 2012: Changes and Trends – a two-part report
This series of articles looks at budgetary issues for businesses in China next year, and examines some of the trends that are starting to occur in China that could affect foreign investors in the country. It also addresses some of the general perceptions of what could happen over the year – such as leadership change and social welfare for foreigners.
Part I – China 2012: Strong Growth Forecast, No Inherent Problems
Part II – China 2012: The Trends Ahead

China 2012 Budgets – The Uncertainty Factor Creeps Back
Planning for 2012 budgets is going to be difficult. While various ministries within the Chinese government are all involved in providing clarity of laws and implementing rules that should make it easier for companies to determine their future cost structures, they are failing in this duty. In particular, China’s pension scheme – which now includes expatriate employees – remains uncertain.

2012 China Investment, Operational and Budget Tips
During these uncertain times, budgets for 2012 are best prepared in a conservative manner with additional allowances made for the increased costs of hiring expatriates. Additional sums should also be set aside in the budget for catering for any further uncapping of China’s social welfare contributions.

2012 China, India and ASEAN Growth to Stimulate Foreign Investment
Foreign direct investment trends are still on course to invest in the China and Asian markets in 2012, despite an upsurge in manufacturing costs in China. Although India is set to supplant China next year as the nation with the highest rates of growth, China is only marginally behind.

China’s Ex-Expats: Emerging Asia Beckons
As China is looking to undergo a transition into a period of relatively lower growth with higher labor costs, expats leaving China are considering other options. Luckily for them, the alternative destinations right across Asia are booming. The article examines 20 alternative Asian cities for expats leaving China.