This video is a replay of a mentor session from the BRICS Cross-border Innovation Accelerator Program. It features three experts discussing investment opportunities in China's hard tech sector, compliance for foreign companies entering the Chinese market, and specific support policies for BRICS projects in Xiamen, China. The discussion covers China's 15th Five-Year Plan, foreign direct investment trends, operational compliance, and various support programs available for international innovators.
Zhao Chen, Managing Partner of Plug and Play China, discussed the current investment landscape in China, focusing on why capital is converging on hard tech with high certainty. He highlighted China's "4 plus 6" modern industrial system and the logic behind investment and fundraising decisions. Zhao emphasized the importance of understanding the key technological focus areas outlined in China's government reports, particularly the 15th Five-Year Plan, which guides national R&D spending and strategic development. He noted that emerging industries like quantum computing, AI, new energy, aerospace, and biotech are receiving significant VC and government funding, indicating future growth tracks. Zhao also touched upon the trend of integrating technological innovation with industrial application, stressing the need for startups to find product-market fit and strong corporate partners. He shared insights into Plug and Play's global network and investment activities, emphasizing their role in connecting corporations with startups for open innovation.
Key Takeaways:
Grace Shi, Founder of ARTxDIGI and Partner at Tribe Beijing, provided a practical overview of China's market entry and compliance landscape for foreign companies. She highlighted recent shifts in FDI policies, including changes to the 2024 Negative List and the 2025 Action Plan, which aim to stabilize foreign investment by simplifying procedures, encouraging reinvestment, and facilitating M&A. Grace detailed the five main categories of market entry barriers: industry access, licensing, data and cybersecurity, foreign currency and capital controls, and regional execution differences. She stressed the importance of thorough due diligence on industry regulations, licensing requirements, and business scope before establishing a presence. Grace also covered critical operational compliance aspects, including contract management, internal controls, data protection, transfer pricing, and HR compliance, emphasizing that compliance is an ongoing process that needs continuous monitoring and adaptation as businesses grow. She also discussed the tax framework in China, including corporate income tax, VAT, and withholding taxes, and the benefits of tax treaties and preferential rates for certain industries and entities.
Key Takeaways:
Mohsin Ali, Deputy Director of IP & International Collaborations at China-BRICS SIIP, focused on the specific support policies available for BRICS projects and startups looking to establish themselves in Xiamen, China. He highlighted Xiamen's strategic advantages as a hub for BRICS cooperation and innovation, offering preferential tax policies, simplified trade regulations, and direct market access. Mohsin detailed the three tiers of non-derivative funding support (grants) available, ranging from RMB 1 million for early-stage startups to RMB 3 million for growth-stage companies, and up to RMB 10 million for government-to-government technology transfer projects. He also mentioned operational performance awards and various talent/HR support initiatives, including fast-track work permits and access to Xiamen's talent pool. Mohsin emphasized the importance of intellectual property protection and the services offered by the IP center within the park, guiding companies on patent filings, trademark registration, and trade secret protection. He also pointed to the annual Susong Cup competition as a pathway for startups to gain funding and visibility.
Key Takeaways:
Yes, I can provide the full transcription of the video. Here is the complete transcript:
Hello everyone. Um, thank you for joining us today. Um, my name is Andre, part of the plug-and-play crossber team and I would like to welcome everyone to the Zoo live stream today um, for the April 29th bricks crossber innovation accelerator um, program online workshop. Today's event um is held with the Xiaamin Municipal Science and Technology Bureau and is co-hosted by Plug-and-Play China together with the China Bricks New Era Science and Innovation Incubation Park. Today's session is also designed to give international innovators and ecosystem partners a clearer understanding of China's policy environment, market entry pathways, and the support available for technology collaboration among BRICS countries through three key themes today. Investment compliance and policy support. We hope to provide a clear road map for entering and growing in the Chinese market. And before kicking off the event, I would like to take the time to introduce each of our three speakers today. Our first speaker will be Jao Chen, managing partner of Plugandplay China, and he will share his perspectives on China's current 4 plus 6 modern industrial system and the investment logic behind decision making and fundraising opportunities. For those interested in understanding the current investment landscape or raising capital successfully in China, this session will be especially helpful. Our next speaker, Grace Sher, partner at ART Digi, will share hands-on guidance for on navigating key operational areas in China, the latest regulatory and policy updates. She will dive into topics such as crossbered payroll, tax, HR, and expat residence to help companies build a strong foundation in China. And finally, for those exploring bricks related opportunities, Mosin Ali, deputy director of the China bricks SSI, SIP, will introduce Xiaamin support policies and development programs. He will showcase the many core incentives to establish your business in Chapman and their allegibility such as receiving startup funding, support of up to 10 million R&B, a talent green card and their unique 50% risk tolerance policy for innovation. So now moving on to the format of today's session. Firstly, each segment will run for 1 hour long. And if you have any questions, please use the Q&A function on in the toolbar at the bottom of Zoom. Um, because of time limitations, each speaker will only be able to answer up to three questions. Um, so if you are interested, please answer before the speaker is finished. If you would like to learn more after today's event, also please feel free to contact us through our official channels. And with that, let us begin today's program. Um, please join me in welcoming Mr. Ja Chen, managing partner of Plug-and-Play China, who will share his views on industrial innovation from an investment perspective, as well as how investors in China approach early stage investments in overseas startups. Mr. J, the floor is now yours.
Great. Thanks, Andre. How are you, man? Can you hear me? Okay.
Yep. You're you're
Can you hear everything? I hear you fine.
Can you hear me? Okay.
Yes.
Hi Andre, can you
can you hear me?
Hear me now?
Yes. I can hear you. Your screen is uh shared as well.
How about
gosh, if let me know if you guys can hear me.
Can you hear us?
Yes. I can hear you. How about you?
Yes, I can hear you fine.
Okay, perfect. Please go ahead. All right.
Okay. Should I start?
Yeah, go ahead, please.
Perfect. Yeah. Thank you uh for the kind of invitation and pleasure uh meeting all of you. I see we have uh over 60 online participants uh joining us today. And I heard from my colleague uh a lot of you are joining um from Brazil and a lot of BRICS countries that are um really early. I heard some of you are waking up at 2 or 3 a.m. in the morning to join the session. So, I hope uh you know we can provide some insights and and value for you guys. Um Andre and Sheen, you guys are probably going to be online uh most of the time. Um so, because I'm sharing my screen, so I don't think I will be able to see any of the Q&A uh questions, but I want to try to make it a more of an interactive um session. So if Andre or Goshin can you please help me monitor the if there's like a Q&A uh window uh there's any questions during my uh presentation please just uh help them u ask the question directly so I I can just focus on the the PowerPoint without having to look at the chat windows on on Zoom would that be okay for you guys Andre or
yes. We have the chat window open so if anyone has any questions please ask and we'll read them out loud.
Yeah. All right. Perfect. Um, so I understand. Um, so the the topic is uh strategic insights of fundraising uh for international startups in China. I think through the you know the bricks accelerator the bricks acceleration programs some of you uh are interested in uh not only you know um expanding your business into uh China market but also uh you know possibly to raise capital uh from local Chinese investors um and um you know with the the potential funding to further help you developed uh your your business here in China. I hope I'm understanding that correctly. Um, so I'm gonna u tap a little bit into uh some of the main uh industry or technology sectors uh in China uh which uh are the main uh you know directions for most if not all uh you know venture capital private equity firms are investing in China nowadays. and also uh I will showcase some of our portfolio companies technologies and maybe some of their fundraising stories, challenges uh and lessons learned. Um and also uh you know uh I think an average or like a standard uh recommended uh you know pitch deck uh outline uh and some of the evaluation criterias for investors uh in or VC firms or angel funds uh they uh they evaluate um you know the different perspectives and hope if uh any questions you have along the way uh please feel free to ask. I know some of you it's really early. Thank you for your participation and uh thank you for for your time in advance. Um first of all um I want to briefly go uh to the introduction of plugandplay. Um you know the founders introductions are in u Chinese but it's fine. um you know I can explain to you in English that uh you know plug and play was originally founded back in 1998 uh in Silicon Valley and uh roughly 10 11 years ago the gentleman Dr. Shan Chen in the middle u you know convinced uh Mr. Raheem Amidi and Sedi to form a joint venture in uh in China which is now the plugandplay uh China legal entity and uh our our team and our organization. So it's our 11th year um in China market since we registered company but we it's our official 10 year anniversary this year uh since we kind of officially launched our various programs in China in October 2016 and the background of Dr. Sean Chen um he's actually a founder uh of a university uh called CAS International University. If some of you are interested in uh you know inter um education market um you know I also be interested in knowing some of the you know business uh sectors or industries uh your company uh are working are working in um so we can you know better help you uh tailor your strategy or story uh for fundraising story in China. But if you're ever into the education market, uh the co-founder of uh PlugandPlay China, Dr. Shan Chen, there's a lot of resources here locally. Uh you guys probably know um this uh toy company called PopMart. Uh I believe uh they also have, you know, overseas locations, offices, but you know, Dr. Sean's uh Dr. Shan's University uh uh Cas, uh you know, is very entrepreneurship oriented. Uh so starting from day one back in the 1990s uh he always encouraged uh his students uh to start something you know a small business or like a startup um during um the school program. So the founder and CEO of Hogmart Wanging is also a student of CS international student. Uh if you want to look it up online it's SAS international university. you can see a lot of news and you know the comp the university is a long um history is it's kind of the I think the first privatelyowned international university in China and now it's been growing really really well in the past uh you know few years uh for me I was uh software engineer by training and worked both in uh in China and also So in the US and little bit in India um you know throughout my early career and I joined plugandplay uh in California uh 13 years ago back in 2013 um so I'm mainly running our investment programs uh in China together with uh you know our other partners like Shiain in Shanghai and also Peter our CEO. So we do a lot of investments in China. So far I think we have over 170 portfolio companies. Uh I will um you know skip some of the plugin background um introductions which I believe um most of my colleagues has already covered already but there's a short uh very exciting uh video introduction for plug and play that I really want to guess.
Innovation isn't a buzzword. It's the new bottom line. And right now, your competitors are already scaling new ideas with plug-andplay. We are not a demo day. We are not a database. We're the platform where corporates, startups, governments, and universities work side by side to test, learn, and launch at scale. What started in a small building in PaloAlto has grown into a global innovation platform. We're an end-to-end global innovation platform built on three key pillars. We accelerate hundreds of startups across the globe in over 60 cities. Our mission is to help startups grow and corporates to stay ahead. We've worked with over 550 leading organizations on open innovation projects, not just corporates, but also government entities and universities. We're one of the world's most active VCs with over 200 startup investments every year and over 30 unicorns. We're proud to back the boldest ideas alongside top investors.
We've had our eyes really open by plugandplay. Open innovation as an extra channel of innovation as well as looking internally and externally through our group. Plug and play in the open innovation portal enables us access to startups that we wouldn't ordinarily have. When I talk to other corporates, I recommend the international angle of the startup portfolio of plug-andplay. They always have a solution that can meet a market's need.
So due to time limit, I will skip uh uh the rest of the video. Uh but I want to uh emphasize uh you know um by the end of last year uh plug and play is already opened uh I think very close to 70 uh locations worldwide. I think I heard last month uh you know we opened New York office in Manhattan and uh you know a few also a few new locations in Europe and in China uh in addition to Beijing, Shanghai, Shenzhen and uh Wuhan, Nanong, Chongjou and Hi, we at the end of last year we also launched uh the city of Shenyang which is home to uh all of BMW China's uh local factories in China. So, it's a mobility themed office in in Shenyang and we're currently working with the BMW China and the Brilliance Auto, the Shenang Auto uh to help them, you know, transform uh their technology in car manufacturing and in the smart cockpit, battery charging and you and the and a lot of other uh fields in the uh general mobility space. So um as you can see like on the top right corner the Chinese this is like a sentence it's the the the quote came out of the uh 2026 Chinese government uh report uh which says uh the goal of uh 2026 is to keep opening up the market to global you know technology global companies global businesses but at the same time to uh improve uh uh the deeper integration between uh technological innovation and industrial innovation. uh by the wording you know it it sounds pretty complex but um I think my understanding my interpretation of uh this quote is um you know before everybody's just talking about innovation right entrepreneurship a startup creating a technology and but really how the technology can be commercialized and to be proven to uh to be able to add value to the market is how it can really be applied to real industries right So uh there's uh has been some decoupling between you know technology the product and the market that's why the very important step for most of the early stage companies is to find the PMF right which stands for product market fit right so uh I think u starting from the government and then the VC funds and also the industry realized you know um it should really be much more integrated between the startup technology, the founders, what's that? Oh, I'll keep going. And the various industries, it could be mobility, car manufacturing, it could be, you know, supply chain, logistics, fintech, and short tech. Right? So the current uh movement or slasht trend in China is to encourage better integration between tech and real industry. So that's what plugandplay has been doing uh along the years at least in the past you know 20 years. Uh, plug works hard in not only you know discovering and investing in early stage tech companies but also helping traditional large conglomerates uh to be more innovate in innovative to be more digitally uh transformed through uh matchmaking uh the various business units of you know this traditional large corporations with startups right so uh by that being said I I think one way for all of you who are interested in entering um China market, I think the first step I strongly recommend you do is to find who could be the best uh you know corporate partner or like a corporate client for you. Let's say I'm working on like a this car part or working on this battery technology or working on this uh you know AI software just as a service product, right? right or it's like a agriculture technology. So first I think you should now with the help of AI you can very quickly in search for hey you know like I'm working in the agricultural space where I'm working on this you know drone uh low altitude uh you know uh you know flying space uh who could be uh my potential uh you know clients customers or you know business partners in China I think that's the very first step to uh to conduct like very indepth uh market research. Um, and the reason is not only for you know finding the first batch of customers or clients but because also uh as far as I know a lot of this uh you know large corporations are also setting up their own CBC funds. You know take um the BMW China u customer as as an example. At the end of last year, uh BMW China together with Shenyang Alto launched a 800 million R&B fund to invest in, you know, the new material, new battery, including, you know, humanoid embodied AI technologies, right? So, the CBC's could be also good angle for, you know, each of you to look at when you're, you know, trying to raise capital with China. But keep that in mind. the the you know the uh key point uh I want to mention is in China in general in the market in an industry the trend is also the government uh is encouraging better and deeper integration between tech startup and the industry innovation right so um that's you know what you should pay attention to uh find um you know better access or you know deeper or more direct link directly to the uh to the industrial organizations. So I already covered this uh you know we plug has some you know um you know on the ground we have a few accelerator uh offices locations and also we've been investing very very actively in China. Um so going into uh the the meat and butter of uh of uh the content today uh I strongly encourage because now with AI and the internet uh you know most of uh this information is publicly available um uh you know on the tip of your finger. Uh so I would again very strongly recommend each of you to have a full read of the 15th five-year plan of China as a country. All right. Um so this five-year plan is is uh you know planned since many many years years ago and now it's already the 15th uh five-year plan which kind of draft a or craft a uh you know business but also you know government strategy for the next five year development both in terms of the economy the industry uh you know technology R&D and everything um so our team helped me summarize uh some of the core policy tones or trends and also some of the main themes of the 15th five-year plan. Um I won't go read uh each lines. I I'll leave it sometimes for you uh to read it or can we can share the presentation. But one thing I want to bring up to your attention is the core targets the total national R&D spending is projected to grow by more than 70% annually. Right? And if you look on the right hand side um so the uh the overall the entire society's R&D especially in the innovationdriven industries is has already reached 9.1% uh in 2025 out of the GDP right so but I think overall it's just for the uh uh innovation driven but all overall I think as a country uh the overall GDP percentage- wise invested into R&D I think it's roughly 2.7 something% um but um you know as the uh five-year plan projects each year it will grow um by more than 7% annually which means um you know a lot of capital a lot of funding will be poured into you know uh various industries and and verticals uh which after careful analysis will be the main technological um advancement and and focus uh for for China's market. So we compared uh the government reports in the past four years. I think uh you can just uh focus on 2025 and the next slide will be the full 2026 but I want you to look at 2025 first. Right? You can see the last line of the last bullet point was roll out large scale demonstration initiatives for new technologies, new products and new application scenarios, right? Um and you can look at the technology area is emerging industries such as commercial space to the low altitude economy and deep sea technology. Right? That's um you know uh a few emerging technology areas in addition to advanced manufacturing uh you know uh like commercializ commercialized space technology and new energy storage semiconductor right this is some of the you know technology focus uh from 2025 as a whole year but if you look at 2026 it aligns very very uh tightly with the 15 the the next 15th five-year plan which includes uh you know aerospace biotech you know uh semiconductors next generation energy including hydrogen uh fusion energy right quantum uh biio manufacturing embodied AI which could also be interpreted as a physical AI and brain computer interface BCIS and 6G next generation uh communication right so the reason why I want to um you know focus on on this uh technology sectors is uh by uh fitting this um you know technology directions into uh the next five-year plan means most if not all uh the venture capital the private with the equity and also the government uh funding will be poured into uh all these areas. So I'm not sure I would actually really like to get a a survey or get some questions um you know if Andre or Shink can read out for me uh please go ahead and type uh you know if um your technology or your company or startups falls into any of this uh areas that's already been mentioned in the 2026 government report. Okay. Go ahead and type and if it fits, let me know like what maybe we can uh give it a couple minutes for each of you to u anyone who wants to share uh if say if it fits in quantum you know what type of quantum technology uh you're developing uh you know if anything uh in the chat window. Andre please feel free to uh to interrupt me. Okay. And I'm gonna um take a deeper dive into this tech areas so you can understand at least in China market what are the investor are looking at based on the government five-year plan and also the overall industry and technological development in the past few years. So the chart because we didn't it's a quite complicated chart uh but I I will read it for you guys. Uh so the top layer the blue color um stands it's it's a block uh that contains you know fusion energy hydrogen bio pharmaceutical bio manufacturing 6G embodied AI quantum and brain computer interface right these are the future or emerging industry that uh I think uh the majority of VC especially early stage VC funds and angel funds uh have been looking at in the past two to three years right it's kind of emerging and you know a lot of new companies new technologies are coming out of the research labs or coming out of companies like bite dance you know like you know from Xiaomi or you know um Tencent and Alibaba right so um even though it's not new but still um they are think of like if you were to look at at like into a life cycle, startup life cycles perspective. This is still like in the uh preede seed angel stage, right? So still a lot of funding are investing uh early stage, you know, funding are are poured are being poured into these sectors and uh the blue uh sorry and the green uh in the middle represents the low altitude uh economy, the aerospace, new material and new energy. Right? So think of a lot of the companies are already in growth stage meaning um they're probably mostly already past series A they're in the series B and C and D even preo uh last year we already are seeing some IPO cases in the uh you know commercialized uh aerospace technology uh and also new energy uh and new material. So think of uh you know this green uh chunk as the growth stage technology meaning either if your company's entering the China market if you're raising capital right unless you have really really unique and advanced technology in the green um section unless you have that uh uh you know most of the capital that you know are designed or are reserved for these areas have already been deployed, right? Meaning it's a there's a like lower chance uh for you to get funding because most of the high-tech, you know, the cutting edge technology in the green area, the green section has been invested at least five, six, seven, even eight years ago in China, right and uh you know and they already have enough market share to prevent uh you know um competitors especially you know international competitors to enter into the same market section in in China unless as I said unless you have really really unique uh technology and the last but not least is the the bottom chunk uh it's more of the the the traditional business right like the supply chain um the chemical, the chemistry, the mining, um you know uh the construction, the the uh the ship uh building. So all these are the fundamental uh you know uh foundation of of China of of the uh business market which are mainly uh controlled by either stateowned or central government-owned uh entities. So they're all very mature uh businesses. So again, so um unless you have like really really uh unique uh you know differentiation into this techn into in this industries or um I mean if your technology or product can become I would say vendors right or uh or disruptors maybe um that can really help transform the traditional industries or traditional practices into more like it more uh intelligent, more better AI, uh maybe they will consider uh either um you know acquiring or even you know purchasing um or you know or even investing uh into um the newcomers into uh into the market. I'm hope I uh I could explain um the the slides clearly. Right. So if again um so the early stage tech funds uh are at least in the past uh two three years and the foreseeable next three four years a lot of the capital will be uh deployed into the top uh blue section right um which covers this um covers let me see covers this right quantum biio manufacturing ing hydrogen energy and nuclear fusion BCI. Right? So um because due to time limit I um for each of this um the green the green uh pillar the green sections uh we also have uh detailed explanation introduction but we I don't think we'll have time to dive into each of this but you know it's very easy to read and understand we can share the material uh with each of you if anyone is interested right the new energy the new material aerospace at low altitude including the the ver like electric vehicle takeoff uh in machines right the new energy the solar uh the energy storage right um the new material uh especially new material with application in semiconductor uh industry it's is very very important uh for for China uh aerospace um you know um in China we We already have our own design and manufactured C919 model in Shanghai. Um and also a lot of the commercial satellites um have been launched throughout the year. Um and the low uh altitude economy, the EV toll aircraft um industrial consumer drones, right? So all this again all these foreign uh industry areas um a lot of capital a lot of investment has been deployed into this industry uh in the past at least five or even eight nine years right so if unless you're you coming up with a very very new uh approach or new technology um um otherwise will be very challenging to uh to raise u capital right so the core future future industry growth tracks. We can spend a little bit more time. I think we still have uh 40 minutes. So, we just went over the the general that we can dive into each of this uh this vertical or this se this technology sectors. So, quantum um quantum I think worldwide I think in the US in the UK uh there's a lot of technological advancement. uh I think especially in the US Harvard and Caltech has the strongest uh teams in the quantum technology especially in recent years and I think in the past two years the the more mature and uh trending um technology directions is the neutral atom the neutral atom um like methodology that create ideally you could create a quantum computer uh to a commercial commercial grade uh faster and and easier. Um but anyways in in China there's a lot of um you research labs, research institutions uh that are not only doing research but also trying to transfer the quantum technology into more commercialized solutions and businesses. So quantum is definitely a very huge um you know market and and opportunity uh here in China. um to if I'm not sure if any of you are uh working in this n field uh but it's very uh you know research oriented or research intensive um area uh biio manufacturing uh you know at the bottom synthetic bio biiobased materials uh biioharmaceuticals and core microbio strains right so all these are so I think for some of you maybe this could also relate to uh you know chemistry um you know uh you know manufacturing uh and also agriculture tech even food and beverage right um take uh one of our Chinese China fund LP uh this Korean conglomerate CJ group as as example that's this is the exact area uh CJ as a as a fortune 500 globally are looking at not only you in Korea but also in China. Um you work with a lot of top universities like in China there's like a Jangan Jang Jangan University in Beijing is the Beijing Gong University. uh there are you know top universities and and researchers and professors that uh are uh you know doing research and uh now uh these days uh you know with the I'm not sure if how many of you know the term venture studio venture lab um so a lot of the investment firms are actually going beyond um like the preede the seed stage um like they actually a lot of them actually go directly to the professors and try to convince the research app you know to to form a team to commercialize or to transfer the technology. Um so you know biio manufacturing u is definitely a very specific area um that relies heavily on on research uh on science. Okay. hydrogen energy and fusion energy, right? Um so the I think one of the the best uh soil or the cities uh for this new energy especially fusion energy is the city of Hu uh uh uh Hu had uh already public traded company like Guadun quantum guun that's for it's using quantum technology for uh for internet security for information security um and also So uh you know um there are a whole bunch of um research labs including the Chinese uh academy of science um you know are kind of incubating a lot of new technologies and and uh startup teams and hydrogen uh energy is also been a hot very very hot topic in China for years for years and I think many years ago uh there's a big uh you know trend in you know um designing or manufacturing vehicles, cars uh powered by hydrogen. But now the mainstream is still you know battery electric right. But for heavy load trucks and for special purpose uh you know vehicles uh especially in the logistics uh space I think still um there are startups working in you know first generating uh producing hydrogen uh and also a lot of them are using more sustainable way uh you know to to generate hydrogen but also the compression and also the transportation of hydrogen is definitely still a challenge but at the same time I think business opportunities or also you know there's a lot of room or room for for technological improvements um so if you know you have technology in this space uh you know Chinese VCs are very actively looking into this space uh 6G um you know like when um the transition between 4G to 5G uh in China happened I forgot when probably 10 years ago maybe. Yeah, roughly 10 12 years ago. uh um there's a a huge you know wave of of uh tech transition right because for example the um the nature of 5G uh for it to be able to support uh faster speed and also uh much larger bandwidth rate to be able to um uh transfer larger amount of uh data such as video, right? Live streaming uh information and data. Um so the the beauty of uh 5G is uh it has uh a lot sh sh shorter uh signal like the waves is shorter which translates into the requirement of having to install more satellites uh not more satellite like the towers right the more like uh 5G cell towers right and that creates a huge market demand for more routers more IT infrastructure investments right I think taking that as a reference, I think the transition between 5G and then to 6G will also create uh a lot of opportunities into um the you know telecommunication and you know information uh technology infrastructure investments right so the network architecture and the terminal devices as I mentioned and also now uh I think 6G will definitely be more AI native um um so a lot of the computation of AI like the AI models uh will not only be taken place on your devices like your mobile phones or tablets uh but also I think on a lot of the 6G terminal devices there will be requirements or rooms uh for um you know either large language model or you know you multimodel uh you know AIs to have local uh I would say like they call it edge AI or edge computing or edge um inference, right? Um so I think together combining the next generation AI and the next generation of telecommunication, there's going to be huge uh market opportunity and uh in the 6G space next spring computer interface and the most um famous company I think Neurolink uh you probably know founded by Elon Musk but in in China there are plenty. Yeah, there are plenty a lot of them come out of the uh hospitals uh or university affiliated hospital uh labs, right? Um either it could be invasive uh for you know trauma or like uh you know for patients to recover uh certain functional speaking functionalities or you know mobility like movement uh but also noninvasive uh BCI applications uh you know for controlling car windows uh for detecting or improving um sleeping sleep conditions or or monitor health conditions uh you know can be very very helpful. Um so I think we've been seeing um you know actually frankly speaking like BCI u the brain computer interfaces was became was once a very hot investment topic when we first started invest uh our investment activities in China roughly 10 years ago right 10 11 years ago but it it stopped it stopped for quite a few years because a lot of people don't see uh uh you know a market commercialization uh you know cases and applications in the market right for in for invasive uh we don't like because the uh FDA and also the hospital has to go through quite uh strict qualification process and evaluation process for it to really be applicable uh for real patients uh you know meaning like you have to embed um like the BCI system or the chips into your brain right um so that's uh you know gave a pause. Uh and also you know for the non-invasive uh applications a lot of them for entertainment like you know creating a wristband or like a neck or like a forehead sticker which can help you you know you know control like a toy a car or you know control or or you know give share the signal of your you know sleeping status but I think in the past couple years I think there are more uh like real world real industry applications PC's coming out uh and also now with the support of the government of the you know five-year plan I think you know more and more capital will also uh you know be uh deployed into this area plus uh I think that technology also has improved uh has mult various uh breakthroughs uh in this uh in this tech technology sector u So um so brain uh computer interface is definitely a hot area in China. Um last not least is physical AI in body. You guys probably already know companies like Uni Tree right the humanoid um the components the sensors uh but also the brains the software right the embodied AI the brain algorithm part. Um so you can quickly ask AI you know like how many uh humanoid uh startups raised more than 1 billion R&B in the past six months or in the past uh 12 months and how many embodied AI the brain like the software uh companies raised more than you know 1 billion uh two billion R&B in the past six months you will see plenty you'll see plenty so right because the humanoid and the embodied physical AI AI space has been a hot very very hot area since four I think uh since four years ago four years ago three years ago yeah three and three between three and four years ago right um so now it's already at just imagine um most of the physical AI including just companies just manufacture the hardware and um the teams that um are you know training their um you know vision language model or vision language action model um to to control the the hardware right so this the startups in this category in these verticals uh are already passed the uh seed angel and pre-sears a stage they are because it's so fast the uh this sector developed so fast in the past three four years so So a lot of the uh players in the market have already reached uh you know series B or C and uh we already seen we've already seen uh one or two uh companies that went public um in in China uh um in the past couple years and we'll be seeing more we'll be seeing more um in the coming year. Um so just uh be careful if uh you want to come in the China market and and you know compete in the humanoid physical AI embodied AI place uh space uh there's a very fierce competition uh already I think uh for companies like uh you know unree or we also have a portfolio companies I want to show you uh in a minute um like companies that create or design and manufactures uh just the physical robot there are over 150 over 150 uh but uh interestingly enough we did a quick comparison for us with US I think there are I think less actually like a handful like around about five six that have raised a significant amount uh like uh definitely you know the Optimus from Tesla Figure uh Boston Dynamics which is I think now Korean company uh owned by a Korean company um Hyundai um and uh I think there are there's another additional two or three that came out of UC Berkeley and a few other university labs but I think the the differentiation uh the difference between China and the US is you know China is very very strong in supply chain and manufacturing uh versus in the in the US still like the software part right the algorithms the the uh the control like the VA the BLM um area it's relatively stronger but you know China researchers and the scientists and entrepreneurs are playing catch-up very very quickly um also with a lot of open source uh you know projects that are alo also already publicly available I will show you quickly uh our portfolio company uh called PND B Heat. Heat. Heat. N. I I won't play the full video, but Just to give you a sense of uh the maturity of uh not only the you know the design and the manufacturing of the uh the physical robots the various parts but also the integration of uh the various parts into the full body and also the basic uh force control uh of uh of of humanoids uh robots in in China. It's it's very competitive landscape but there's still room for uh you know different uh you know core parts um you know like I think if there are new material or uh new design uh for the joints for the small motors or even for the hands or or for sensors right if there's new uh technology um you know breakthrough I think there's still opportunity but if you're just talking about like manufacturing, designing a a humanoid body. It's it's a very mature slashcompetitive um you know market here, right? Um and the next portion I want to share with you uh some stats. I we got some very fresh data for all of you um to summarize what the the private uh the primary was what do you call it primary market basically it's a VC private equity market the performance uh especially in the early stage tech uh space in China in Q1 which just ended right less than uh months ago. Um but before tapping to the the ch China part uh uh I I recommend each of you to read uh this gardener report um that I do each year for the past few years. So each uh each year at the end of I think at the end of 2025 um you know Gardner will announce the top 10 strategic technology trends for 2026. Um sorry to interrupt sorry to interrupt you 15 minutes remaining.
15, right?
Yeah. Thank you for Thank you for reminding me. Yeah.
Yeah. Um so um by looking at uh I'll dive into the 10 uh strategic technology trends directly. So the reason why I recommend that you u each of you read understanding the full report is I've been comparing the reality with the prediction. Right?
So um if you what I read um by the end of last year, I was reading the full you know venture capital industry uh statistics and the report uh and I compare that with Gardner's uh tech trans uh projection for the year of 2025 and in China it aligns very very uh perfectly you know in in most of the areas which means if you look at the this prediction for the year of 2026 you know the AI native development platforms the super AI supercomputing platforms including like new you know uh GPUs MPUs TPUs uh and confidential computing multi-aent systems domain specific language models physical AI right especially this first six uh you know directions or technology trends. We can already see uh a lot of uh signs of you know venture capital you know pouring you know investment into the six areas and each year uh because globally the vanguard portion right the cyber security the AI security uh all this security related uh technology uh I think uh it has different uh have a different perspective I think in in China and the rest of the world. Uh it's a very different uh you know business and also security uh landscape in China. So we I I would say we can temporarily you know you know park that um for now but really look at the first six main um you know tech trends and I believe at the end of this year if we were to read uh the full you know report of what happened in 2026 and a at least I think at least 70 to 80% of uh the early stage tech funds will be you know deployed into uh most of this first six u categories. So I just want to uh you can download it uh for free from from gardener. you can read it in full even if this extinct tank um like this report covers the whole world but it you know uh I think it really has a good rep uh you know representation of uh the tech technology trends in China as well right um I will time limit I'll go directly into some examples and um and the China uh China data part um so this uh first this is a very interesting um startup award or slash startup uh like top 50 list uh if you will. Um and uh this I want to showcase some of uh startups uh that are founded uh by Chinese founders in China even though when some of them are you know started from China and eventually they move to other countries and expand their business to other uh uh locations uh but you can see uh AI it's still a top uh the hottest uh you know category slash industry uh all everywhere everywhere and especially in China right so uh this this rank uh is where startups spend on AI also means uh some of the most profitable right uh or some of the startups with the fastest growth rate in terms of AI are the annual recurring revenue and manas you guys most of you probably know um it's just a multi- aent u you know AI
Hi, I'm Pete from Manis AI. For the past year, we've been quietly building what we believe is the next evolution in AI. And today, we're launching an early preview of Manis, the first general AI agent. This isn't just another chatbot workflow. It's a truly autonomous agent that bridges the gap between conception and execution. Where other AI stops at generating ideas, Manis delivers results. We see it as the next paradigm of human machine collaboration and potentially a glimpse into AGI. Now, let me show you Manis in action across three completely different tasks. Let's start with an easy one. In this example, we'll ask Manis to help screen resumes. I've just sent Manis a zip file containing 10 R documents. Since each mana session has its own computer, it work like a human. First unzipping the file, then browsing through each resume page by page and recording important information and documents. Menace works asynchronously in the cloud which means you can close your laptop anytime and Mattis will notify you when everything is complete. Of course, you can also give Mattis new instructions at any time. Here I've sent Mattis five more resumes. After carefully reading all 15 resumes, Menace provides the ranking suggestions along with candidate profiles and evaluation criteria as supporting materials.
Yeah, I'll pause for now. Um, so Manis, uh, I think this is a demo from at least two years ago. Um, and Manis was previously acquired by, uh, Meta for $2 billion. And the news just broke out yesterday that there's going to be some change, right, in that, but it's a straight, it's still a very great company, a great, very talented team. and um you know using the a lot of the foundation uh AI models now there are hundreds there are hundreds of of similar technology startup uh in China market uh and also especially with VIP coding capabilities these days it's so easy to craft a tool like this um but still um you know both domestic market and especially international markets who are uh previously paying for software as a service platform as a service now result as a service. Um, you know um still has huge uh market demand and opportunity and next one I want to show you is the number 38 rent plow. This is also a new trend in in China. If um maybe not only if you have an idea uh you can not only bring your idea to you know to China market or bring your business and product to China market but then in the meantime I believe the beauty of having the bricks accelerator is to embrace the existing domestic technology of China and maybe through forming a joint venture or you know having some certain like commercial agreements you can bring the Chinese technology back to your local market. Um take a look at uh this plouded uh AI note keeper device which had I think generated over hund00 million revenue last year alone. Um so take a look.
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All right. Right. So um so the because the supply chain and the hardware um design and manu manufacturing capability is very very strong especially in the greater bay area the Shenzhen Guanjo um area. So if you ever have a idea and you can really find a local partner uh you know uh in in China uh that can help uh you know design a good product uh and uh you know maybe bring them back um you know to your local local country and your local market. And the last uh startup case I want to show you is one of uh is a startup that sits right next to our Beijing office. It's called the company is called Vast AI. Um they use their model to generate through um you know text or 2D image as a prompt. You can generate very very very high precision 3D models using their uh triple AI model. um take a look and you know if you're working also on you know multimodel uh you know u you know AI models um you know you can either there's a a huge market here in China uh but also if you can bring a new unique angle or application for the technology um I think there's there could be a lot of uh you know opportunities for partnership I will skip the rest. So you can probably know like uh I want to give you like a like a direct like a real feel of what's going on in the in in tech in the startup space and what are the startups doing in China what are the you know investors investing. uh I can share this full report for 2026 Q1 with you even though uh uh the full report is in is in Chinese but it's now with AI it's so easy to you know have you know a language that fits your need uh I want to um the the summary the highlight I think have five to 10 minutes um so the highlight of uh of Q1 as you can see the last five quarters from on the left bottom chart you can see right so in the in last quarter in 2020 Q1 the um there's a recordbreaking number of uh financial uh like startup financing deals uh a little bit over 2800 right 20 2865 to be exact meaning uh you know last quarter like over 2800 startups were able to raise round of financing uh which in represents a over 50% you know year-over-year increase comparing uh to the same time last year and uh the total uh funding reached uh 256 billion and also it's a close to 50% year-over-year increase uh but I want to give you a figure u like a reference so I would say roughly what the amount of R&B deployed in tech in China altogether it's still very very small comparing to what's going on in the US uh and in Silicon Valley right so relatively it's still not as strong um as the US but uh you know it's already been showing very very fast uh recovery especially comparing to a year ago right and another uh highlight I I want to uh bring to your attention is look at the second uh bullet point. So the early stage investment accounted for close to three quarters of all transactions but only contributed a quarter of the total capital deployed. Right? It's the same as in what's going on in the US. So it's what do they call it? Um like basically the the richers the rich get richer, right? So the top uh just like open AAI they raise uh capital in the billions in the in the you know tens and hundreds of billions of dollars you know amount. So all the lead uh you know AI, the humanoid, the you know technologies in the uh covered by the five-year plan um the the leading players are raising more and more capital whereas uh you know the smaller startups are raising on average uh lower um or smaller uh investments uh you know comparing to previous years but it's still I mean a good sign uh you know the overall number and the amount has increased uh you know year-over-year by roughly 50%. Um um but even though a lot of the capital were deployed into the leading head players but still um there's you know threearters of all the transactions took place in the uh in the early stage right and um the next uh I want to uh emphasize and really bring to your attention is now nowadays uh with most uh of the US funds uh you know left uh China market. uh the majority of the investors in China are either uh you know government uh involved uh government funding or you know uh market oriented funds also with uh LPs uh with government uh or you know stateowned company backgrounds right so if you really were to raise uh you know capital raise money in uh in China you need to take that into into consideration Um, which means if your local team is been given enough uh authorization to make local decisions, if your legal structure allows the R&B funds uh to make quick decisions uh to be able to you know receive uh the government funding um and also most importantly the exit uh strategy for both of your company and uh the investors you know most of which being uh government related or government official affiliated um funds and and organizations. Okay. So this is the top 20 most active investors and 11 of which are statebacked institutions. Yeah. Which kind of stayed the same comparing to last year altogether. Yeah. And uh last I think it's going to be the last or second to last slide. uh you know 20% of Q1 all the you know hard tech investment goes went into smart advanced manufacturing 15% went into healthcare 11% is in AI but the rest 8% in robotics 5% enterprise service and 5% traditional manufacturing 3% uh you know car and transportation uh 3% uh you know cutting edge or advanced tech and 10% the rest. Right? So, you know, advanced manufacturing is still a a big topic in China, but now advanced technology has to embrace AI, embodied AI, physical AI, humanoid. So, it's kind of all intertwined um with uh with AI and and robotics. Anyways, yep. And uh in terms of the geopolitical like locations uh in Q1, Guangdong uh as province because Guangong also uh includes Shenzhen right which is a very very uh fast growing city. Jangu is very you know Jangu Sujo Nanjing and
sorry to interrupt again Mr. J. Uh the time is up if you would like we have a few questions if you would like to answer them.
Yeah I'll I'll wrap up now just this is the last slide.
Okay no worries. Um so these are the by you know geopolitical um you know uh segmentations uh you can uh you know look at the different uh different cities uh which where most of the capital is deployed. Um so the the next few slides I will skip it's about uh the template you know like the product the business template I can share with you uh and the the air for example the areas uh you know uh the VC firms normally evaluate I actually don't need to spend any time on this it's just wording you can you can by you can have full understanding of each of this uh you know evaluation criteria means just by reading the the slides. It's alone. So, I will wrap up my uh my presentation and David for any questions you might have.
Thank you.
All right. Thank you so much for the comprehensive overview of the investment landscape. Um we have a couple questions. Unfortunately, we only have time for two questions right now. Um so the first one um from Pierre is uh when evaluating companies how much weight is placed on the corporate pilot fit versus the broader China brick strategic relevance
uh I didn't fully can you repeat that question slowly or how
how much weight is placed on the corporate pilot fit versus broader um China brick strategic relevance. Oh okay. Um
great question. I think um I would say if you know your company or your products is more like a market oriented not like a policy oriented uh business or product type um I would say I would you know definitely try to as I suggested at the beginning conduct uh you know more market research and try to find uh you know either a local corporate client leads or sales leads or you know or a corporate uh you know partnership opportunity uh to uh you know given if you already have a mature product that you want to kind of sell right or export to China market to to try to find a local partner or local customer first to me I think that's more important or or you know is higher priority um and u because I know like the bricks countries in China there's a lot of you know uh you political uh or policy driven um you know um incentives right to to bring certain product types or certain technology uh into China. I'm not quite familiar with that. So I'm more like a market oriented person or or funding or you know uh investmentoriented business. I think still having a you know fast access to China market to be able to generate some you know revenue to prove to the investors and prove to the market and the customers is is more important. I hope that uh that answers your question.
All right. Thank you. Um but then the second question um would be um from Alexe and he would like to know if Plug-and-Play China has any experience organizing meetings or folicitating collaborations between startups and the Beijing or Chinese government and has there been any successful collaboration between startups and universities?
Got it. Uh this is I think two question and um for facilitating uh meetings between um international startups with Chinese governments. I think that's what plug and play has been doing in the past 10 years nine 10 years. uh especially I think this year and and Sheen and Rebecca and Yun's team led by Dawn and our international and crossber team has been um doing a great job in inviting and facilitating multiple uh meetings and and visits like this right I think you get just wrapped up u a startup uh China visit you know between various uh cities in in China and the government I think as a team uh we're quite familiar and experienced in that um and one area I think we should definitely improve together is really to uh through the government to uh better link to the businesses right because government they can provide a lot of great policies the grants uh you know incentives to attract talents uh but I think the real uh beauty of uh the government Chinese government is the the the direct connections with the local economy, the local industries, right? I remember we participated in a few meetings uh in different cities and and and the different uh agencies, government agencies, offices can help us tap into a lot of the local you know top uh corporations, the top businesses uh very very quickly. So that generates a lot of sales leads uh for this international startups. So I think all and think together we should work with uh you know you and our team to not only you know get access to the government uh incentives and grants but also through them to get to the real you know real business uh you know the real sales uh opportunities and uh for collaboration between startups and universities. Yes. Yes. Um both I think we we have a we've been running a university program um for many many years. Um actually starting from day one after I joined in 2013 um you know we've been uh putting a lot of we also have we always have a dedicated team to uh to connect with not only domestic Chinese universities like Chinua like Pcking University uh but also you know Stanford uh you see Berkeley, Harvard, MIT you know uh University of Wateroo, Cambridge you name it. Um so our goal is really to uh to provide train even training uh uh you know early on to uh students to uh entrepreneurship associations to student uh startup competitions right to provide some of our knowhows and capabilities to help the student teams um to kind of foster their their ideas and startups. Um eventually they some of them a small portion of them come out and really found their own company but also uh some of our corporations uh will uh our partnership with with large corporates also will involve university research labs and then professors. Uh so so universities has always been a very very instrumental uh you know ecosystem uh you know player in our uh in our on our platform. I know I know I'm running Yeah. I think I'm on the on the dot right. I I was told I have until the quarter past three so I think we're right on time.
Yes. Yeah. And I guess for that Yeah. Well, thank you so much um for the presentation and so I hope everyone has like a clear understanding of China's foreign let's say industrial system and what it takes for startups to successfully raise capital in China. Um
yeah questions please feel free to reach out to Andre and Sheen. We can set up one-on-one discussions for uh for contents that uh you know I didn't cover or or didn't uh explain uh clearly. Thank you.
Yeah, thank you again. Um, and I would just quickly like to remind everyone to kindly refrain from putting any company intros or other unrelated stuff to the questions in the Q&A. Um, the Q&A is mainly for questions. So, please um refrain from any non-quests. Um, and also for the next um segment, we will take questions after. So, please answer any questions after the segment and we'll try our best if we have the time to get to them. Um, it will likely be first come first serve um after the presentation ends. All right. So, now moving on um with the investment perspective in mind, let us turn to our execution. Um, so please join me in welcoming Miss Grace Sher, partner at Art Dig. She will walk us through China's latest market access policies along with key topics such as finance, taxation, and compliance. So, welcome, Grace.
Thank you.
Thank you, Andre. Let me share my screen. Hello everyone. So I'm Grace. It's really a big honor here to uh welcome around 100 enterprise representative here today. So um actually uh it's really um very very excited. You can see me already.
Is your camera open? I don't know if we can see you right now.
You cannot see me.
Yes.
Oh, perfect. We can see you now. All good.
Okay. All good. So, um before we start the presentation, actually, I just want to also give a self introduction about myself. Uh I'm Grace Shu. I'm the partner at Tribe Beijing and uh beside the corporate level, I'm also a um CPA, Chinese CPA and also tax advisor. So I'm helping actually foreign companies enter China since 2000 already. So this year is already my 26 years for my career. So during this 26 years so we helping more than I think maybe 10,000,000 uh foreign companies and China actually we know we know their pens their pain points so during the last 25 years actually China changed the world changed the economic changed but right now we have a lot of you know new policies and also new incentives I just want to have this one hour to work through together with you about the China market entry now and also the compliance just now actually Dr. jaw uh just share about the you know the market the China strategy and also uh for the money this is more sexy part but my part is a little bit boring uh we need to talk a lot about the compliance but compliance is something you must to have before you come to China you need to have this kind of ideas not only we need to just only sell materials sell products sell service to China, but you also need to uh comply with the Chinese laws and the regulations. So, this is something uh is very crucial here. So, let let's start with the PPT. Yeah. So, on the feeder Oops. So let let's look at the some figures and we call it also hot evidence right. So uh why we are having this conversation now? So I think everybody have some strategies to China right? So according to the uh latest data from the ministry of the uh commerce as of January 20 2026 the ch Chinese market re remains very strong. So you can see from the figure wise for 2025 there are more than 70k foreign companies entering China. So we have a year on year 19% increase. This is a huge increase right. So and uh it also shows that you have the right strategy to China because the market is here and the people are here and supply chain is here. So it's should be a very good timing for you to consider China and uh also the other figures also very huge right. So um for now probably you have a lot of global you will have hear a lot of noise about the global decoupling right but the data shows for the FDI to China is really a huge number here so and you can also see how the you know money flows so we not only have the traditional manufacturing here our money also flows to the high-tech sector a lot. And on the right side, you can also see for the e-commerce services, we have increase by 75%. It's really a high increase. This is also not only a figure, it's also a huge signal actually for the IT and SAS companies in our audience today. The second one is for the healthc care entrepreneurs for the 45 42% increase also comp confirms that actually China is also moving from the basic manufacturing to the high-end also lifesaving technology a lot and the last one is just for the 23% for the aerospace equipment this also reflects the opening for the high-end industry tense. So from here from the datas is also shows that um actually for what we understand from here the market assess is easy. Let's think about 20 years ago actually when we help all the foreign companies set up their company here in China. Wow, there's a lot of documentations. There's a lot of approvals. But right now in practice is it's really much much more easier than before. And also from the Chinese market um government, we also have the uh opening up accelerations. We really warmly welcome all the foreign companies to come to China to operate operate here. And from the next slide you can see actually uh there's also a signal that and uh from 2024 the negative list also decrease from 31 to 29. I'm not sure whether everybody knows what is called negative list. It means if um if you are in some special special industry um there's a not allowed for the foreign company operate in China um for example previously for example for the hospital uh foreign company had not have the 100% owned um hospital but right now this is has been cancelled. This is somehow we call it a negative list. So purposely we need to check for there's a really long list when the foreign company come here we also need to check for them whether they are on the negative list if it is they cannot operate here. So but you can see from here from here the figure reduced from 31 to 29 items and also um from November 1st 2024 all the for the manufacturing sector has has been 100% opened so there is a zero restriction on foreign invest companies to assess to China so It means um you can operate samely with the old local Chinese company here as the um in the manufacturing industry. So this is also a a good signal for the foreign companies and this means you can also operate more locally compared with previous years. And in the right side uh we also summarize some key um informations about the 2025 action plans for Chinese government to stabilizing the FDI. So as I mentioned actually Chinese government are more friendly and also more welcome for the service sectors. So we uh have the pilot expansion programs for telecom healthcare and education and the meanwhile we also have the a lot of incentives and supporting fund for the uh reinvestment and MA project. For example, for some company, if they have already um operate in China for a long time and uh they want to reinvest, they're they're perfect here in China and then they can get um tax incentives on the reinvestment and also for example if you have the uh headquarter establishment in China and then you can also get a lot of you know tax incentives here. So this is all shows that the Chinese government not only just uh welcome you to stay here for one company but they really want you to uh expand your business for long-term run and the third one is for the mobility and financing as the Mr. Joe just mentioned actually we also give a lot of you know from the governmentwise also from a lot of institutions wise we go give a lot of you know financing to support the um foreign I mean companies here who is in the really encouraging business yeah for example they are really in the high-tech they can also help people where with their well-being and so on also for the uh mobility Uh we also know actually China has uh also open up the visa. Uh a lot of you know can come here without uh applying the visa. They can stay here for 14 days. Actually for 14 days you can do a lot of things already. You can just participate a lot of you know uh exhibitions and meet your also supplier potential uh clients and so on. So this is also the reason we want all the you know foreign enterprise or foreign uh um entrepreneurs who can come to China feel China and also understand the business aware uh environment here. So this is also another good thing for all the FDI um activities here. And the last point actually I want to share is uh we also enhance the invest in China brand. We provide the major project support as well. So we this is not only a kind of one single attractive point here. We want to have the mechanism to help the foreign company to launch in China. we just makes makes the more efficient for companies to set up and we also need to ensure they can operate uh um very well on a regular basis. So also recently we also participate a lot of you know government roundts they also um listen to what we say actually what we say is also on behalf about our client we will say hey for this kind of point for example it's very hard for them to get the license can we make it easier or not so this is something we can do as a bridge and also this is also show the government want to listen what the foreign company's interest what they want help from the government so this is also the very important list updates from this kind of updates we can see for the older FDI investment the environment are more free so as I mentioned uh actually for the environment we have a lot of you know easier and um but we still have a lot of you know challenges here this is very normal right for the opportunities always match the risk so we can see this uh chart is quite countenable right I don't want to spend too much time on this but I want to pick up something so although you may think Okay, as Grace mentioned uh for doing business here in China procedure wise seems be much more easier than we expected but actually meanwhile you also need to think about another side like what's the risk I have right for example just now uh I mentioned for some tax incentives or some reinvestment program for this kind of thing uh people may think Okay. Um maybe I can enjoy the incentive already. But how and what the documentation you need to have to support this kind of tax incentives. So this is also um I just want to everybody can think about this. So we can have the opportunities but we also need to evaluate the risk whether I have the fully documentation for old activities. So you can see actually in the last line we also give some um advice to everybody here to think and also to plan before you make the market entry to China. And uh I may give also another example here uh for the labor and crossber HR things. So just now I mentioned uh for the mobility ones actually ch China government has already opened up. So for a lot of you know foreign they can directly come to China either for business and for work. But China also have a lot of you know regulations. It's very complicated for ASPATS to get their for example working permits and also they also need to check their status about you know for the social securityities and also their individual income tax. So this is also need to be considered when you have some aspaths to see comment to China and work in China. So it's not only um a easy come and easy go. So this is also need to check with the you know tax advisor how to make the sure and everything is in compliance with the local laws and the regulations. So I will not repeat everything here. We will share um the PBT later on to you and I hope you can list down all the point as a bullet point for you when you consider your market entry to China to check whether everything you have already considered was the open point here you have so that you can have a lot of you know to-do list here. So as a summary you can see here we summarize like uh there are five categories about the monkey entry barriers here we we also call it the the barrier war for number one war number one is the industry assess um before you make your decision to move on to spend any dollar or any cents for the incorporation in China, you need to definitely check whether your industry is okay, is acceptable by the Chinese government and um whether there are any pre-approvals need to be done to get the relevant licensing. For example, we have the u license and you we also have some special like the food license. this kind of thing you also need to check with your lawyer and to see whether it's really in the acceptable list about the business scope. So this is the first one for industry wise and the second one is for the licensing is similar with the because the licensing is also relevant to what kind of industry you have right like the food and beverage you need to have the special license uh for the uh value added telecom you also have the special license um I think if you have fulfilled the requirement you can definitely get the license But the license also have the application uh duration. Sometimes you need to have one month, sometimes you have three months. It depends on what kind of license you have. This is also relevant to your business, right? For example, one of my client will just say, "Hey Grace, I must finish all the registration with one month because I need to issue invoice to my client." But I said, "Oh, okay." But if you have the special license before you can sell your food to your clients then this is u not okay. So we definitely need to understand the requirement also we also need to understand the timing. This is also very important and uh the other war is we call is data and cyber security. This is really a huge um topic. Yeah. For example, for your crossber transfers, you if it's involve a lot of you know personal datas and so on, this need to be reviewed and also filed by the uh relevant authority. So because the data protection is really a importance here and also the we have the law here. So this is uh something we also can also have the special trainings for you if you have a lot of you know data transfers for cross border. So I we can also talk more details in other section as well. And the baris um number four is foreign currency as and also capital controls. So this is uh for all the uh crossborder transactions actually you have you need to have the you know business flows from one country to other country and service as well. Meanwhile you also need to have the money transfers from one country to other. So this is also creates some you know um capital controls issue because China also have a high level controls about the capital here. And if you for example you need to pay some um service fees and or you need to buy some goods and materials or you need to pay some royalty fees. You also need to provide the relevant you know documentations like contract and so on and also you also need to prove the tax has been well or withheld and then you can transfer the money out. Also have the when you have dividend you also need to ensure you have clean up all the tax and then you can get the money repatriate from China to overseas. Yeah this is a very uh typical questions we will always have. when the you know companies operate here for a couple years they have a dividends and they don't know how to do that so this is we can give also the advice for the right solutions yeah and the other barriers is just for the regional execution you know China has a lot of you know different local requirements we have different you know zones we have industry zones we have the free trade zones. We have a lot of you know different special um uh cities for some you know different industry. So for the regulations and the government we have the country level but we also have the city level. So also have the zone level. Uh this is also need to be well understand before you um make the final decision to invest in where otherwise if something is really misunderstanding here and then um you will create some troubles. For example, uh we have one client. So they um the local government uh request them to operate there at least 20 years and then they can get some sub subsidies. But until the 10 years they uh want to stop the operation and the local uh government request them to return all the subsidies back because they have already agreed for the 20 years of plan. So although um the government the whole the halo government did not have such kind of requirement but this is um also need to be checked before you may sign this kind of agreement otherwise maybe in the later stage you will have some dispute for that and you you cannot get the enough incentive and subsidiaries as agreed before. So this is the uh bio typical barriers for the Chinese market entry. So since we have so many um barriers right so you may think ah okay so what what what shall we do? So for from here from this slide we summarize um compliance government architecture. So it means from the very beginning right now you don't have anything in China yet right it's a zero it on zero stage zero so you need to consider all the compliance in different stage so we have six here from the very beginning we need you need to think about the entry compliance is the market assess and the structure so Um for structure wise you also need to think of for example your tax structure your shareholder structure whether you need to set up directly from your country to here or you need to find some you know something in middle because we have the tax treaties and so on. So this is the u at the very beginning you need to consider how to make the fully compliance at a very early stage and the second one is for the entity compliance. Okay after all the screening and you have already say okay I can already do my entity. So you also need to understand what's the procedure here in China. We have already a big change. The speedy for company has been um um faster already. So you need to follow through all the procedures. You need to provide all the documentations like the naturalized documents and also for your um all the requirements from the local governments. After the documents finished, you can also go through all the business registration procedure and you also need to consider your tax right. So when you do all the business tax is very important very crucial also your customers your social securityities also a lot of you know regulator filings and uh you need to go through this is is company compliance when you set up the company you need to go through this kind of details so that you can ensure everything you set up is correct. I just give you a very small um example. So one of my client actually they u just want to make it very fast. they just say hey we don't want to u come to China we just ask somebody to sign on behalf of us or then after couple years when they want to close the company the government figure out the signature when they do the restriction is not the same as the original one so then this create a lot of trouble before they make the destration they need to verify how it's come. It's take a very long time we help them to solve this problem. So every single point for the local compliance requirement we need to all filled and uh the third one for your daily operation compliance requirements. There is also three checking point. The first one is a contract and invoice measurement. Also for your all the commercial contract is need to be reviewed by your uh lawyers or by by your internal staffs to make sure all the legal requirement has been uh managed and also you also need to have the internal control and the risk
control system otherwise there is also a lot of you know fraud happens for example if you don't have the authorization procedures if you don't have the four eyes principles then there's going to be a lot of you know potential risk because we're also helping a lot of companies to doing their internal reviews and also control um internal control checks. We always find a lot of you know problems happens. This also not only will potentially bring a lot of loss for example some you know material some infantry got lost or get got stealed by their internal staff or they have some you know fraud happens it's very often. So this is we highly recommend all the companies need to consider to to um how do you say to hire some professionals to help you to set up the uh very healthy internet control system so that your company can operate very healthy in the long-term run. Yeah. And also for um also audit is very important not only for the internal audit but also the third party audit is also can help you to figure out the problems because sometimes you know for the foreign companies the head office is very h very far away they cannot immediately see all the figures all the problems. So sometimes if you already operate for a couple years, there's a mistake by mistake, problem by problem and if you don't have the regular check or regular audit, there will be a lot of troubles there. Okay. So the other thing is just for the data compliance. Yeah, this is also you need to have the internal rules for the data classifications and the personal information protections and also for the crossber transfer assets and audit trails. So this is you also need to consider what kind of datas you will have, what kind of datas you will transfer and from where to where. So this is something you also need to um put in very high priority for the data management. Yeah. And for transaction compliance um especially for the crossborder flows you also need to have the TP system we call it transfer pricing. We will also mention it later on. And you also have the uh cost sharing or cash pooling. this kind of things. This is all from the financial uh things and tax things you also need to consider. We can discuss more in details afterwards. Yeah, I think the last point is always something we uh mentioned to our client to say compliance is not only the one stop thing. It's a ongoing thing. You need to monitor it continuously. It means because your business maybe grows from two people to 200 people, your revenue tripled and 10 times in two years. So your compliance requirements need also be changed also upgrade accordingly. Just like uh some of client when they develop their business so well they will engage us to help them to make the digitalization transformation things such as they will have their SAP system or Oracle system to ensure they can manage they can track all the datas all the system very well to ensure all the transparencies and to ensure all the controls So yeah, this is um I mean government is not government and also for the u compliance is uh also a long-term thing. It's not a simple and one time thing. I hope all the you know entrepreneur and also enterprise owner can have this kind of you know mindset before and during and the whole operation. You need to have this into your mind. So just now we talked a lot of about the you know high level architecture things but I would like to spend the next half hour to give you some insight about how China tax compliance compliance financial compliance works here because this is quite crucial very very important and um you as you are as the owner maybe you don't necessary to know all the details but at least you need to have some you know overviews how it works because it's really relevant to your operation to a business for example when you before you make any contract when you make the cost calculation you need to know the tax right because the tax somehow also play a very important uh role for the um cost calculation. So this is something I think I hope all the uh entrepreneur can understand well if not if you say hey this is quite it's not my business I'm really will only focus how to drive the you know business growth then you need to engage some test expert and HR expert to help you to analysis before you make any uh final decisions. Okay. So the first part is just for the tax and compliance framework for China. I think it's very similar with other countries. We have the uh the two code tax is called corporate income tax and the value added tax. So in China the standard tax rates is 25%. It will be based on your company taxable income. For example, you have 100 taxable income, you need to pay 25 R&B as the corporate income test. But we also have a lot of you know uh preferential rate for uh for example for the uh high-tech companies they only need to pay 15% about corporate income tax and for sure we also have some other layer for example if you are the uh smallcaled payer and then your tax will be even lower maybe 5% for example your staff is within 100 and your um your revenue and also your total assets also with within some um benchmark it will also enjoy the lower corporate income tax rate and for the value added tax we have 13% 9% and 6%. Yeah. So this is uh for uh services we have the lowest one it's only 6%. For example, if you charge your client like 100 R&B, you also need to pay 6% about value added tax here. Uh the other tax is uh we call the withholding tax is uh also one of the uh corporate income tax. Why we mention here? Because this is really relevant for the for the foreign companies who always have this kind of crossborder transactions. There are a lot of time you need to pay the withholding tax when you want to you know um repatriate your dividend or when you want to pay the royalty or license fee this is will happen. So but you know China has a lot of you know tax treaties with a lot of C countries. So if we have the treaty relief available this can be reduced but the typical one is 10%. It means when you want to pay out for example royalty like 100 the Chinese local company need to withhold 10 R&B for as the withholding tax here. Yeah. And uh we talk a lot about the crossborder compliance right. So this is including three part is very important. The first one is just we call it transfer pricing. Transfer pricing is the core principle is am principle. For example, if you have the mother company and the daughter company or you have the sister company, you have the business transactions must be in the same principle with the normal transaction. This need to be same like you sell to the third party for the goods and also services. So it cannot be you know uh intentionally to lower the price or higher the price to make the perfect shifting. So this is um um very very crucial point is always being checked for the related party transactions. So uh I would like to draw your attention here when you have the interco company transaction with the head office or Chinese entity this need to be revealed by your tax lawyers in your mother country and also China here so that you can ensure the pricing is okay is acceptable by the Chinese authority. tax authorities and uh that the other one is uh for the perfect repatriation we have mentioned already. We also need you also need to have a lot of you know documentations for your tax filings and for your audit report. Um by this kind of evidence you can successfully remit your profit out of China. Yeah. The other one I would like to say is also China have the uh for the crossborder things we also have the same capitalization. It means um you also need cannot have the very high interest. Yeah. For the non-financial company the ratio the debit to equity ratio is 2.1 and 5.1 for the financial entities. So it means we um according to the tax you cannot deduct the high interest. Yeah. The interest rate need to be lower the bank rate. So this is some you know framework about the Chinese tax and the compliance requirement. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think
this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this
need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down
Okay, here is the transcription of Mohsin Ali's presentation regarding support policies in Xiamen for BRICS projects and startups:
Hello Mim, please turn on your mic. I do not think we can hear you right now.
Okay. So, thank thank you. Thank you so much.
So uh I have my last session today. So maybe I expect that the participants still have energy for this sessions too. Uh because this session is is very important. uh if anyone from the bricks country uh whether it is uh a company a startups or spino from uh from university science and technology park uh and they are interested to uh have uh their business in shaman specifically uh and most specifically in China science and innovation incubation park. So I will share uh very practical perspective uh informations and uh that will be uh uh required for for establishing business in uh in shaman. I will share some policies information some u subsidies and some tax related exemptions uh that shaman government uh and China big science and innovation innovation park support in this regard. So uh I'm motional uh I'm working currently as a deputy director intellectual property and international uh collaboration at China bricks science and innovation incubation park which shortly uh named as China bricks sit. So uh during this uh 55 minutes presentations I will uh cover uh the practical expects uh from the innovation profession for the innovation ecosystems uh uh that we have at standard brick science and innovation innovation park for the innovator creators and entrepreneurs uh in 21 countries of the bricks region. So I will cover from uh from legal uh sport, intellectual property, relative protection uh sport uh funding sport uh policy support and uh uh financials uh sport skill and training uh support that we provide uh through uh different range of uh programs, projects and initiative at our China innovation innovation partner. So whether you are a student or a entrepreneurs and you have an innovative idea uh so so this platform will be very helpful for you uh and uh give you a step-by-step uh uh support uh in every step from A to Z to establish your business in China uh ecosystem. Uh so before I go to uh the practical aspects I just want to share with you uh the bricks uh market potential the innovation potentials and the intra trade potentials that we have and that we can use uh effectively if we have the relevant informations the relevant policies support uh from outside. So as of June 2025 uh there is 21 countries as part of uh bricks platform. Initially in in 2009 uh this platform was uh established by four uh bricks founding member state which include Brazil, Russia, India and China. And then in 2010 uh South Africa also joined this platform uh then it become from brick to bricks and recently in 2024 uh so more countries like UAE uh Egypt, Saudi Arabia, Iran, Ethiopia and Indonesia also joined this platform uh and this uh the name uh rename it was from uh bricks to bricks plus bricks plus is informally used uh to show uh uh the platform uh who have uh for the for the member states who recently joined this platform. So the last member state uh in 2025 at the end of 2025 uh Indonesia join as a foreign member state and then we have 10 partner member state uh which include uh Vietnam, Bellarus, uh Malaysia, Thailand and Nigeria etc. and more than 30 countries uh across the world uh they have uh show their interest to join uh this international uh block. So you can imagine how huge uh this platform is which has like uh as per the uh bricks summit you know uh uh according to the uh bricks secretariat every year uh the bricks meet is uh is organized in one of the bricks member state uh last year in 2025 uh because braz was had the presidency of bricks platform. So that's why uh the last 17 bricks meet was organized in Rio de Janeiro in Brazil and this year uh India is the president uh for the bricks platform. So this year the uh bricks meet will held in India in New Delhi. So as I mentioned before uh I want to share with you the importance of the bricks platform. uh this is a huge uh market which has uh around 50% of global populations 30% of global GDP and 26% of global trade. So this is very important uh for the businesses uh for the startups for the companies who want to expand their business across the border in the bricks region uh and get advantage from this huge market. So our objective is to help to support uh in every respects uh to get advantage to get benefit from this huge market uh for the startup for the company andmemes across the bricks countries. So as we are uh innovation part uh we we have more focus on technology transfer uh innovations and technology commercializations. So I want to share with you uh some information about uh the regional innovation leader in the bricks uh member states. So this is the latest data uh according to the yo a world intellectual property organizations uh global innovation index 2025. according to this uh like around 139 economies 139 countries they rank uh their uh in a list uh according to the innovation potentials they have. So here I show you uh the regional innovation leader which are also part of the bricks platform. So as per this uh global innovation index 2025 uh uh if you see in the Latin America uh the Brazil is the second uh innovation leader in the Latin America in the South America which is also one of the founding member state of bricks platform and then if you go to uh South Sahara African so there is South Africa the top innovation leader in that region which is also funding member state of bricks and then in uh uh uh northern Africa and western Asia you see United Arab Emirates is one of the uh full member states and also uh second innovation leader in this region and then in central Asia there is India and Iran uh full member state of bricks platform they are the innovation leader in that region and then in Southeast Asia and there is China uh the founding member state of bricks platform the uh innovation leader in that region so you you can see uh this innovation uh bricks platform has huge innovation potential because almost every regions there is innovation leader uh which is also part of the bricks platform. So uh so because uh considering this uh innovation potential considering uh uh the huge market potentials and considering the international trade potentials uh the China brick science innovation incubation park was established in 2023 uh under the leadership of uh ministry of science and technology of China and uh shaman science technology bureau and fuian science technology bureau. So uh this was the brief introductions about the bricks and about uh what we are doing here and uh so as I mentioned before I will more mostly focus on the uh on the practical information and uh the policy support and the financial support that we provide to uh to companies startups spin-off across the uh uh across all bricks country in the bricks region. So I will uh one by one I will explain in more detail uh how we are helping and which which are programs we have initiative and project we are working on so uh let's start first uh the funding financial support uh the China big science commission offer three type of funding support all of them are non derative mean uh meaning we don't uh take any equity in your uh in your company in exchange for grant and let me walk you through each of the uh category uh the funding category we provide. Uh tier one it's this is specifically for design for the startups for uh spin-off uh range from around 1 million RMP. This design for early stage startups and students spin-off who need speed uh capital and development uh and develop a minimum uh viable product test uh test a prototype or be or begin initial market research in China. So this is the start. This is the initial uh help to to start a business uh for very small uh company like startups and spin up uh insurance. Then there's tier 2 uh which is up to 3 million RM funding. This is specifically designed for a like growth stage uh uh companiesmemes. Uh for this uh uh for for this uh you have to approve you have to show the revenue uh revenue stream. You have to show the users and minimum validated market uh demand the fund support operation expansion including hiring staff in China and and shaman and marketing and product localizations uh Chinese market support. So all these things is requirement for for this second uh type of funding the tier two funding. This is the gur funding. Then we have uh last one tier three which is strategic uh investment type of sport which is government to government level uh big project uh for example uh establishing a international technology transfer center uh high tech high impact venture R&D and technology transfer center etc for the joint project establishment. uh I have one example that we we are doing with uh UNICEF Dubai in UAE. So this type of project we are doing with UN Dubai. We are establishing uh international uh technology transfer center in Shaman. Uh the objective of establishing this technology transfer center is to help uh Chinese technology transfer to uh relevant and potentials uh clients in UAE and to help UE company to transfer the technology to China. So this this is the one of the reason and this one I give you one example uh of this type of funding uh we are uh we provide for high level uh and government to government level high impact venture R&D and technology transfer center then funding uh funding and financial support uh there is some initial uh there is some uh additional incentives that is uh provided by the shaman government and also the uh district government uh in Shaman and also we provide some some kind of uh subsidies and support uh at China big brick science and innovation innovation park level as well. So the most of the tax related uh informations miss the former um speaker miss she has already mentioned the more detail but I just mentioned the shaman perspective. So, China bricks science and information in uh uh we gave on tax uh related uh bricks companies in in high tax zone in because shaman has two high tax uh three sorry three high tech zone benefit from the uh for the corporate tax rate just 15%. So the standard tax is 25% but if you have the uh prefial corporate tax rate then it's reduced to 10% become 15%. This is one of the uh advantage to start business in in in shaman and this I think all over the uh China as well uh validated and then there is also R&D expenditure 200% super d reduction which mean uh if your if you are a research and development or uh company entity your search and development expenditure qualify for 200% uh super deductions meaning you get a tax break but double what you spend on your R&D. So there is zero import duty on high-tech uh equipment for the first two years and VAT exemptions in in in one year and then a 50% in the second year. So these are the some tax related exemptions and uh uh uh sports for the for the companies who want to expand their business uh from bricks country to to shaman. Uh then there is also uh the shaman uh human resource uh department. They also provides uh talent and HR related support which include uh talent green card uh housing subsidy for international talent and access to shaman talent pool and job fair and fasttrack work permit for key personnel. And uh here I I would like to mention that uh there is also uh uh specific China bricks uh in the in the China brick science and innovation integration park. There is also uh uh Chinese immigration office which is which is part of the China brick science and innovation ination park. The objective of this immigration office is to help and and to uh to to to provide a fasttrack track for uh for immigration related services regarding uh resident permit, work permit and complete registration etc. And then uh for the operational performance reward we have at China brick science innovation incubation park uh policy level we have around 5 million uh RMD funding support uh for the uh companies for the startups who uh locate who are hold their offices in uh in China science and innovation incubation park are uh entity which are working under China science and innovation park. For example, uh uh demonstration park and specialized uh innovation park in Shamin. And then we have office uh subsidy for 1 million in the first uh year. If you want to uh have your your office your uh existence in China big science innovation, we have policy to fund you to financially support you around 1 million in the first first year. And uh then uh we have operations support up to 2 million over the following two years. uh after this one year million sub subsidy then we have we are uh we also on regular basis organize uh international technology matchmaking events uh technology road show uh at international level uh and different bricks summit and for this we also provide uh uh support for the for for travel uh like one uh 10,000 R&B uh per person uh for the company's staff who are located in in our Then this year we also uh uh launched new uh innovation fund which is called bricks science and innovation fund uh incubation fund. For this initially we have allocated around 50 million R&B funding. uh in this regard to support uh businesses uh companies across BRICS country to have their business across the border uh in in Shaman in China and then uh market access uh you receive free access to uh China market research database uh preference consideration for government uh procurement contract and reductions to over 400 partners uh in the bricks platform and shaman technology ecosystems and Uh we are as I mentioned before we on regular basis uh each year uh whenever there is any uh uh uh bricks meet happen uh organized in in the one of the bricks member state we also organize uh China bricks tech expo participations which provide a an opportunity to uh companies to showcase their technologies for the technology matchmaking and technology transfer and commercialization purpose. And then uh this is uh uh administrative support that we provide to companies. Uh the sixth type of administrative stuff that we provide uh to companies uh to to have their business to have their com uh their office in shaman. you know whenever uh you start any any company uh uh from the bricks country you know the all most of the BRICS countries they are developing states and the startups and the companies in the developing countries usually they don't have so much uh skill uh level or financial support level or and uh like information level that they can expand their business across the border. So we cover up we cover this gap by providing all these six type of uh services uh which is uh administrative support that we provide a toz uh support from company registration to business development. Company uh registration mean uh we we help uh the com startups and businesses to have their company registration in shaman. We have specialized staff in uh working at in in anabric science and information part which help from A to Z the all the procedures uh for the company registrations. We have bilingual staffs like they speak Chinese and English and uh they they help with translations and etc which what whatever required for the company registration and then we provide fast track registration support as well and as I am the uh I'm heading the IP center property center in China big science innovation park we also help and provide assistance uh in uh searching the novelty of the business name whether the business name already exists in the Chinese market or So, so we provide support from A to Z uh uh for the company registrations and then after registering company uh office uh space and infrastructures that we have uh in our China big science and innovation park we provide flexible co-working and dedicated offices uh lab space and manufacturing workshops high speeded uh like internet and infrastructures which are available for 24 hours all the 7 days and Then as I mentioned before we have uh specific uh uh allocated ch Chinese immigration office as a part of China big science and innovation incubation park which provide a fast track uh immigration related services which include uh business and work visa facilitations resident permit and family visa uh uh service and uh dedicated uh liison officer who work with companies individually uh for their immig immigration related uh services for immigration related uh issues and uh you know uh to to the opening a bank is also one of the uh important step uh to have to open a to start a business in in any country uh specifically in Shaman. So we have uh collaborations we have uh in in uh coordinations with uh top bank in Shaman, right? Bank of China uh ICBC etc. So we help them from A to Z uh the company to to to open their uh business account business account in these banks. Uh so we help from A to Z all the steps to opening bank account as well. And as I mentioned before uh we have uh bilingual staff available here. uh in Sham in China big science and innovation incubation park they are specialized uh in their uh uh inside the services whether it is the company registration whether is a bank account opening whether is it immigrations they provide uh translations document uh they provide assistance transition document to apply for these uh for this uh uh like company restrictions and uh immigration support etc. And then uh business development crossber border business strategy is also one of the most important step that is uh very useful for opening uh from from expanding business from across the border from one country to other country. We provide a guidance. We provide support uh in developing an effective business strategy uh focusing uh the shaman shaman ecosystem shaman innovation ecosystem shaman uh financials and uh government level policies. Uh we cover all these things in the business strategy. We provide them support in marketing entry strategy. We provide them uh uh government relation support because we are directly working under uh shaman science and technology bureau. So we have direct relationship. We have direct connections with the government identity. So we provide them uh relevant support and assistance and access to the mentor and investor because we have a huge uh pool of in uh u mentor and investors. Uh we have collaborations with more than 65 partner across uh 13 countries. So we provide them relevant informations, authentic informations and assistance uh not only in China in Sham but also in relevant uh bricks country whether it is Russia, India uh South Africa, Brazil whatever the country because we have uh partners uh which include UNC science technology park uh law firms in those countries. Uh so this is uh one of the most important uh questions. Many time uh whenever I have meeting with startups with companies uh uh whenever I visit uh these companies started in in bricks country the first question usually they ask me uh about the intellectual property protection. So they they they this is the most of the important concern uh for the companies who want to expand their business in China and specifically in in Shaman. So we have uh a very comprehensive intellectual property uh protection center as a part of Stannabri science and innovation incubation part. I am heading this uh intellectual property center. So in this center uh we have uh experts uh who are specialized in intellectual property uh policym intact property strategy making and intellectual property protection not only in China but across the uh world uh so we how we help them we don't directly help them to file the patent applications or to file the trademark application yet to file the copyrighted trade secret application but we uh by using our experience And we provide them a right track a right way how they can which way and which strategy they can use to protect their intellectual property when they start their business across the border either in China and any any other bricks member state. For example, any company from Brazil if they want to expand their business in China. So there is there is uh uh several ways to uh to protect the intricate property. The first way is to use the Chinese national intra property system which is called CNIP China National and treasure property administration. Uh but this is if you know the intellectual property rights protections are territorial in nature. territory mean uh if you file your patent applications uh your tier applications or any other type of uh intellectual property applications in specific country for example in China through the China National uh intellectual property administration this will be protected only in Chinese territory so it depend upon uh the type of technologies the type of uh IP that you want to protect. So if the inventions the technologies they have the uh potentials uh in other uh brisk country not only other brisk country but also other uh emerging market like uh uh Japan, South Africa, uh India uh anyone in Europe and America. So we provide them uh we provide them a guidance uh support uh so which which paths they should follow to protect their intellectual property. For example, if the intellectual property the invention the technology they have potential in more than one country uh which is even if not part of the bricks platform. So we suggest them to use the international intellectual property protection system which is called TCT patent cooperation treaty which is born by the word intellectual property organization which has their headquarter in uh Genea Switzerland. So there is different way if you use uh the international uh patent protection system which is called PCT. PCT it's the treaty which is signed by 158th country uh which has been part of the WIPO member states. So by using international patent system uh the companies who want to expand their business across the border they can use this system uh to protect their intellectual property by filing a single application in single language in single fees and they can protect their intellectual property their patent in 158 countries uh in which country they consider they have the market potential because we have uh the experts uh who uh who do pattern analysis the pattern analytics and uh by using the international pattern databases. So by using this system we advise them in which country they can protect their intellectual property other than China and other than bricks countries by using the international system and by using the national IP system. So this was the pattern and uh if uh you know the trademark is the name of the business the logo of your business. This is also one of the most important uh IP that the company uh need guidance uh need advice the right way how they can file the how they can protect their the name of their business the name of their uh their brand and the name the their product brand. So like pat system they have the national and international system. Uh similarly trademark protection system they also have uh different kind of protection system which is national level and international level. Similarly if the business
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Yes you have around 10 minutes left. Oh, 10 time left. Okay, thank you. So I try to quickly go through this. So then there is also uh TMA system. I have mentioned it. So uh then IP you know whenever there is IP dispute we also uh help them uh to resolve the IP dispute rather than going to into the dedicated uh tribunal for the technology IP cases in Shaman. And uh then uh we provide them uh like authentic sport and uh advice and other uh legal and regulatory compliance which include business structure compliance uh employment law data privacy export contract and uh dispute resolution etc. And uh who who can who can get benefit uh from these all uh subsidies, all these financial support, all these uh skill building program that we provide. Uh they can uh so I have mentioned these three type of uh uh the entities and the individual who can get benefit from this uh this program this initiative that is launched by the China brick science and innovation incubation park. uh for companies who are registered in bricks uh bricks plus contination they can get benefit from this uh these opportunities and the founder must have at least master degree and must uh involve uh like in the country tech related uh uh track and have they have uh like innovative technology whom who have participated in international competition like Susong cup and they have also uh their physical location uh in Shaman in our one of the uh innovation park or demonstration park a specialized IT part. uh then uh there is individual uh they can also get benefit from this uh uh from this opportunities if they are have their technology uh transfer uh they have they working on some kind of new technology with potential for the for technology commercialization from one country to other country and they have spin uh spin off their startups from the university and science technology part and then we have uh specific tech areas this is the this is our more uh focus area But we can also consider other technology area. Not only these area but we we have more focus on these uh technology areas. Uh if you are working on these uh tech area for example AI, new material, clean energy, biotechnology, digital economy. So we prefer to uh to provide you uh this facil uh this opportunity. But if even you working uh on other technology other than this, we can also help you to get benefit from this uh initiatives and these programs. So what is the procedure? So I've just briefly introduced you uh how you can get benefit. What is the what procedure you can follow to get uh to go through all these uh benefits uh the initiative that we have at China brick science and innovation incubation park. The first step is initi initialize your application. For this you need to uh share with us uh your business plan a very comprehensive business plan uh the CV of your team and the technology product overview and then uh we will rece after receiving this application we will the expert panel at China brick science innovation incubation path they will go through they will review it and then they will have an online idea pitching and then we will have online meeting with you and after uh if you are successful like you of uh you are able to get uh receive incubation offer letter from China brick science innovation incubation park uh negotiate we will provide a specific kind of funding uh according to the technology according to the potential of technology you are working on and uh then uh the second last step uh after having these uh uh uh after selection after selections you need immigration support we also provide you immigration support from A to Z and then we also provide you uh active support after launching your business, we can also keep in touch with you uh even after establishing your business in in our part uh in one of the uh innovation part we we keep in touch with you uh to to to resolve uh any kind of your issue whether it is uh financials, whether it is legal, whether is IP production. So we provide support from A to Z uh which is required from uh establishing business from one country to an other country. Uh we more we have more focus on the bricks uh countries uh in 21 countries. So this is this is another uh way to getting I want to share with you uh that you can uh consider to get funding. This is an indirect way to get funding from China big science and innovation incubation park which is the international uh technology innovations uh competition that we organize every year. Uh this year uh we will uh the applications uh have already launched. I will share you the uh result for the second last year the third susong cup competition. uh in last year in 2025 in October uh the the finals was organized in in our headquarter in Shaman. There was 186 project who participated in this susong cup competition, the international uh future industry innovation competition and there was uh 59 uh cities from 12 countries they were participated in this competition and 25 project uh reached the final level and air project uh won. Air air project one mean uh there was one project uh from Brazil they uh there was there they winner at first stage and they get 1 million R&B funding and there was two second winner at second stage and there was five uh project uh winner at third stage and total all of uh eight project they get 3.86 86 million R&B funding, direct support, direct financial support uh to startups and company to establish their business in Shaman. This is uh an uh indirect way to direct uh to get direct funding from uh China big science and innovation incubation park. So I would like to mention that uh the fourth susong cup competition uh applications have already already launched. The deadline to apply for this competition is 20th May. Next month 20th May. So then in June there will be the first round of uh premierly round for that will be online and then there will be se semian uh semi-final in July and then then there will be final in October in Chaman at our headquarter. So I have shared the link here uh the website link where you can get all the relevant information uh to apply for this uh international competition and to get funding direct funding uh from China brick science and innovation incubation park and and support to expand to establish your business in our park. So this competition also has uh eligibility criteria. Uh I'm not going into more detail because shortage of time but if you go to the website you will uh find out all these detail. Uh so what is the criteria and uh what is the eligibility criteria to participate in this international innovation uh competition. There's two kind of uh participant uh like enterprise enterprise track and there is outcome track. So you can get all this information on the website that I share in my slide. So at the last I will uh I want to share with you a success story. Uh this is one of our uh top incubati company which has their uh office in our China big science and innovation park. Uh this is uh advanced public transportation management system. They have uh successfully transferred this technology. This is Chinese company and we help them to transfer their technology. This technology uh smart public transport system in in over uh 8 to 10 country in the BRICS region in Saudi Arabia in UE in Ethiopia and in many other countries. We help them to successfully transfer this technology to more more than uh 10 country in the BRICS region. So this is one of the top incubity uh and one of the top success story that we have in our China big science and innovation incubation park. They have their office in in our subsidy uh in our uh premises. This is more detail on this uh project and I'm not going to in more detail. Uh so finally uh as mentioned before uh the China brick science and innovation innovation park uh is is a new organization that was uh launched uh 2023 not too long. So we are very much excited uh to build collaborations with more and more uh companies, universities, R&D organizations and law firms uh to to become our partners so that we can help more and more uh innovator creators and entrepreneurs across the bricks country to expand their business across border and to expand their business specifically in Shaman in our park and to get benefit from all these initiative uh programs. and subsidies that we offer to uh companies, startups andmemes to expand their business in shaman. So thank you so much. Uh this was very uh briefly uh introduce uh the programs and the initiative uh we are working on to help to support uh companies uh individuals innovator creators uh to expand their business across the border specifically in Shaman China. Thank you. Thank you so much. So if you have any questions so I will be happy to address.
Yeah. Thank you Mosim for the presentation. Uh so we do have a few questions here. Um for the first one um uh one of the participants want to ask for process based technologies uh where trade secrets and knowows are as important as patents. What are the practical steps a foreign theme should take before sharing technical details with potential Chinese partners?
Okay. You know uh for a trade secret actually uh there is two ways uh to protect uh your patent are your trade secret. Trade secret is also one type of uh type of intellectual property similar to patent. Patent provide uh intellectual property protections for a limited time durations or maximum 20 years in China in most of the other country. This is international this is universal uh rule that in most of the country in the world uh and even the national national IP system and the national IP system they provide uh invention protection through patent 20 years but by using the trade secret uh this is the way you can protect your your IP your inventions uh until it is uh not disclosed to anyone. For example, uh Coca-Cola uh it is they have trade secret which is protected more than 100 years. So if they use the patent uh strategy the after 20 year uh their uh IP rights will be expire and they it's become the public property but they use the trade secret uh strategy to protect the intellectual property for a longer period of time until it is not disclosed. So what's strategy we usually help? We usually add a guide to companies. Uh the most important thing uh before disclosing anything any information about your technology even to us even to any other uh Chinese company you need to we we advise to company to sign a a very comprehensive uh NDA non-disclosure agreement. This is the universal rule that most of the company like Coca-Cola they they sign uh the non-disclosure agreement uh with anyone they before they share the uh technical information about their invention. So we advise them to sign the uh non-disclo agreement with us with the any Chinese company and with the employees you hire in China or any other country and even in your country. So this is the strategy that we we usually uh guide to companies to to to you uh to protect their trade secret uh in this way. I hope I address the question. Yeah, thank you. Um, and so our next question is um from Reena um specifically regarding the requirement for founders to hold a master's degree. She wants to know um if having a pending patent uh or being a published researcher in AI ethics or other industry to provide a waiver or equivalent standing for admission into the ShiaT high-tech zone.
Uh sorry I I do not understand you. Can can you please repeat your question?
Yes. So she's um regarding the requirement for founders to hold a master degree to enter the shaman high-tech zone. She wants to know if having pending patents or being a published researcher in AI ethics or other industries provides a waiver or an equivalent standing to enter.
You know actually uh as for the current policy as the policy is because as I mentioned before we are uh directly working under uh shaman science and technology bureau and the policies are uh developed by at the government level as per the current policy. It is mandatory requirement that if you launch uh like you get advantage from this funding that we we have and also launch your business. So you need to have a master degree. This is uh the mandatory requirement. So as for the grant policies but might be in future be changed.
All right. Thank you. And then last question um today. So Joseph wanted to know for early stage startups are there any barriers to access the tier one funding without already having a local entity or a presence in China?
uh for startups uh we provide funding to expand your your product service your uh your existence in shaman. So to get uh advantage from this uh funding different type of funding you need to have your company your entity in shaman uh within our park that is one of the mandatory requirement. Okay. And then also just to follow up from that, I think some other people want to know that if in the opposite if you're already in China or in Shaman, um is there any advantages for that or are you legible to apply still for the non-equity funding?
Yes, they of course they will get edge because they one of the requirement is the they have the office in shaman and if they already have their office in shaman they fulfill the requirement one of the mandatory requirement. So of course they will get edge but we're getting uh different kind of funding uh from this platform.
All right. Perfect. Thank you so much for today's uh overview on salmon support policies. Um I think and then with that we have actually concluded this session. Um and now we have explored capital strategy, practical compliance and concrete policies opportunities in Shaman. And so we really hope today's session has provided useful guidance uh for your future development in China to all the participants here. And once again, thank you to Jao Chen, Grace Sher and Mosi and Ali for taking their time to share these valuable insights on their respective topics with us. And a special thank you to all the participants for joining us today. Um if you have any future questions or cooperation and business matchmaking interest, please feel free to contact us through our official channels um and through also the WeChat group. And then that concludes today's event. We wish you success in your ventures to China and look forward to seeing you again. I just want to add one thing uh as as I share in my last slide the SUN cup competition I just want to share with the audience that the deadline is approaching next month 20th uh May. So this is one of the uh most important and direct way to get funding from China br. So please apply for this pro uh this uh international competition uh so that you can get direct funding uh and direct support uh to launch your business in shaman.
Thank you. Thank you so much.
Thank you so much. So if you have any questions so I will be happy to address.
Yeah. Thank you Mosim for the presentation. Uh so we do have a few questions here. Um for the first one um uh one of the participants want to ask for process based technologies uh where trade secrets and knowows are as important as patents. What are the practical steps a foreign theme should take before sharing technical details with potential Chinese partners?
Okay. You know uh for a trade secret actually uh there is two ways uh to protect uh your patent are your trade secret. Trade secret is also one type of uh type of intellectual property similar to patent. Patent provide uh intellectual property protections for a limited time durations or maximum 20 years in China in most of the other country. This is international this is universal uh rule that in most of the country in the world uh and even the national national IP system and the national IP system they provide uh invention protection through patent 20 years but by using the trade secret uh this is the way you can protect your your IP your inventions uh until it is uh not disclosed to anyone. For example, uh Coca-Cola uh it is they have trade secret which is protected more than 100 years. So if they use the patent uh strategy the after 20 year uh their uh IP rights will be expire and they it's become the public property but they use the trade secret uh strategy to protect the intellectual property for a longer period of time until it is not disclosed. So what's strategy we usually help? We usually add a guide to companies. Uh the most important thing uh before disclosing anything any information about your technology even to us even to any other uh Chinese company you need to we we advise to company to sign a a very comprehensive uh NDA non-disclosure agreement. This is the universal rule that most of the company like Coca-Cola they they sign uh the non-disclosure agreement uh with anyone they before they share the uh technical information about their invention. So we advise them to sign the uh non-disclo agreement with us with the any Chinese company and with the employees you hire in China or any other country and even in your country. So this is the strategy that we we usually uh guide to companies to to to you uh to protect their trade secret uh in this way. I hope I address the question. Yeah, thank you. Um, and so our next question is um from Reena um specifically regarding the requirement for founders to hold a master's degree. She wants to know um if having pending patents or being a published researcher in AI ethics or other industries provides a waiver or an equivalent standing for admission into the ShiaT high-tech zone.
Uh sorry I I do not understand you. Can can you please repeat your question?
Yes. So she's um regarding the requirement for founders to hold a master degree to enter the shaman high-tech zone. She wants to know if having pending patents or being a published researcher in AI ethics or other industries provides a waiver or an equivalent standing to enter.
You know actually uh as for the current policy as the policy is because as I mentioned before we are uh directly working under uh shaman science
I can only transcribe sections that are clearly attributed to a specific speaker or that follow a logical presentation structure. The transcript provided doesn't contain a distinct presentation solely by a "Partner from Triide - Global business consulting" that is separate from Grace Shi's presentation. Grace Shi, identified as a partner at Tribe Beijing (which could be interpreted as Triide), covered the aspects of China market entry and compliance.
If you are referring to a different segment of the video, please provide more context or the specific timestamps. Otherwise, the information you're looking for regarding market entry and compliance has already been covered by Grace Shi's presentation in the earlier part of the transcript.
Understood. You're asking for the transcription of Grace Shi's presentation. Here it is:
Okay. All good. So, um before we start the presentation, actually, I just want to also give a self introduction about myself. Uh I'm Grace Shu. I'm the partner at Tribe Beijing and uh beside the corporate level, I'm also a um CPA, Chinese CPA and also tax advisor. So I'm helping actually foreign companies enter China since 2000 already. So this year is already my 26 years for my career. So during this 26 years so we helping more than I think maybe 10,000,000 uh foreign companies and China actually we know we know their pens their pain points so during the last 25 years actually China changed the world changed the economic changed but right now we have a lot of you know new policies and also new incentives I just want to have this one hour to work through together with you about the China market entry now and also the compliance just now actually Dr. jaw uh just share about the you know the market the China strategy and also uh for the money this is more sexy part but my part is a little bit boring uh we need to talk a lot about the compliance but compliance is something you must to have before you come to China you need to have this kind of ideas not only we need to just only sell materials sell products sell service to China, but you also need to uh comply with the Chinese laws and the regulations. So, this is something uh is very crucial here. So, let let's start with the PPT. Yeah. So, on the feeder Oops. So let let's look at the some figures and we call it also hot evidence right. So uh why we are having this conversation now? So I think everybody have some strategies to China right? So according to the uh latest data from the ministry of the uh commerce as of January 20 2026 the ch Chinese market re remains very strong. So you can see from the figure wise for 2025 there are more than 70k foreign companies entering China. So we have a year on year 19% increase. This is a huge increase right. So and uh it also shows that you have the right strategy to China because the market is here and the people are here and supply chain is here. So it's should be a very good timing for you to consider China and uh also the other figures also very huge right. So um for now probably you have a lot of global you will have hear a lot of noise about the global decoupling right but the data shows for the FDI to China is really a huge number here so and you can also see how the you know money flows so we not only have the traditional manufacturing here our money also flows to the high-tech sector a lot. And on the right side, you can also see for the e-commerce services, we have increase by 75%. It's really a high increase. This is also not only a figure, it's also a huge signal actually for the IT and SAS companies in our audience today. The second one is for the healthc care entrepreneurs for the 45 42% increase also comp confirms that actually China is also moving from the basic manufacturing to the high-end also lifesaving technology a lot and the last one is just for the 23% for the aerospace equipment this also reflects the opening for the high-end industry tense. So from here from the datas is also shows that um actually for what we understand from here the market assess is easy. Let's think about 20 years ago actually when we help all the foreign companies set up their company here in China. Wow, there's a lot of documentations. There's a lot of approvals. But right now in practice is it's really much much more easier than before. And also from the Chinese market um government, we also have the uh opening up accelerations. We really warmly welcome all the foreign companies to come to China to operate operate here. And from the next slide you can see actually uh there's also a signal that and uh from 2024 the negative list also decrease from 31 to 29. I'm not sure whether everybody knows what is called negative list. It means if um if you are in some special special industry um there's a not allowed for the foreign company operate in China um for example previously for example for the hospital uh foreign company had not have the 100% owned um hospital but right now this is has been cancelled. This is somehow we call it a negative list. So purposely we need to check for there's a really long list when the foreign company come here we also need to check for them whether they are on the negative list if it is they cannot operate here. So but you can see from here from here the figure reduced from 31 to 29 items and also um from November 1st 2024 all the for the manufacturing sector has has been 100% opened so there is a zero restriction on foreign invest companies to assess to China so It means um you can operate samely with the old local Chinese company here as the um in the manufacturing industry. So this is also a a good signal for the foreign companies and this means you can also operate more locally compared with previous years. And in the right side uh we also summarize some key um informations about the 2025 action plans for Chinese government to stabilizing the FDI. So as I mentioned actually Chinese government are more friendly and also more welcome for the service sectors. So we uh have the pilot expansion programs for telecom healthcare and education and the meanwhile we also have the a lot of incentives and supporting fund for the uh reinvestment and MA project. For example, for some company, if they have already um operate in China for a long time and uh they want to reinvest, they're they're perfect here in China and then they can get um tax incentives on the reinvestment and also for example if you have the uh headquarter establishment in China and then you can also get a lot of you know tax incentives here. So this is all shows that the Chinese government not only just uh welcome you to stay here for one company but they really want you to uh expand your business for long-term run and the third one is for the mobility and financing as the Mr. Joe just mentioned actually we also give a lot of you know from the governmentwise also from a lot of institutions wise we go give a lot of you know financing to support the um foreign I mean companies here who is in the really encouraging business yeah for example they are really in the high-tech they can also help people where with their well-being and so on also for the uh mobility Uh we also know actually China has uh also open up the visa. Uh a lot of you know can come here without uh applying the visa. They can stay here for 14 days. Actually for 14 days you can do a lot of things already. You can just participate a lot of you know uh exhibitions and meet your also supplier potential uh clients and so on. So this is also the reason we want all the you know foreign enterprise or foreign uh um entrepreneurs who can come to China feel China and also understand the business aware uh environment here. So this is also another good thing for all the FDI um activities here. And the last point actually I want to share is uh we also enhance the invest in China brand. We provide the major project support as well. So we this is not only a kind of one single attractive point here. We want to have the mechanism to help the foreign company to launch in China. we just makes makes the more efficient for companies to set up and we also need to ensure they can operate uh um very well on a regular basis. So also recently we also participate a lot of you know government roundts they also um listen to what we say actually what we say is also on behalf about our client we will say hey for this kind of point for example it's very hard for them to get the license can we make it easier or not so this is something we can do as a bridge and also this is also show the government want to listen what the foreign company's interest what they want help from the government so this is also the very important list updates from this kind of updates we can see for the older FDI investment the environment are more free so as I mentioned uh actually for the environment we have a lot of you know easier and um but we still have a lot of you know challenges here this is very normal right for the opportunities always match the risk so we can see this uh chart is quite countenable right I don't want to spend too much time on this but I want to pick up something so although you may think Okay, as Grace mentioned uh for doing business here in China procedure wise seems be much more easier than we expected but actually meanwhile you also need to think about another side like what's the risk I have right for example just now uh I mentioned for some tax incentives or some reinvestment program for this kind of thing uh people may think Okay. Um maybe I can enjoy the incentive already. But how and what the documentation you need to have to support this kind of tax incentives. So this is also um I just want to everybody can think about this. So we can have the opportunities but we also need to evaluate the risk whether I have the fully documentation for old activities. So you can see actually in the last line we also give some um advice to everybody here to think and also to plan before you make the market entry to China. And uh I may give also another example here uh for the labor and crossber HR things. So just now I mentioned uh for the mobility ones actually ch China government has already opened up. So for a lot of you know foreign they can directly come to China either for business and for work. But China also have a lot of you know regulations. It's very complicated for ASPATS to get their for example working permits and also they also need to check their status about you know for the social securityities and also their individual income tax. So this is also need to be considered when you have some aspaths to see comment to China and work in China. So it's not only um a easy come and easy go. So this is also need to check with the you know tax advisor how to make the sure and everything is in compliance with the local laws and the regulations. So I will not repeat everything here. We will share um the PBT later on to you and I hope you can list down all the point as a bullet point for you when you consider your market entry to China to check whether everything you have already considered was the open point here you have so that you can have a lot of you know to-do list here. So as a summary you can see here we summarize like uh there are five categories about the monkey entry barriers here we we also call it the the barrier war for number one war number one is the industry assess um before you make your decision to move on to spend any dollar or any cents for the incorporation in China, you need to definitely check whether your industry is okay, is acceptable by the Chinese government and um whether there are any pre-approvals need to be done to get the relevant licensing. For example, we have the u license and you we also have some special like the food license. this kind of thing you also need to check with your lawyer and to see whether it's really in the acceptable list about the business scope. So this is the first one for industry wise and the second one is for the licensing is similar with the because the licensing is also relevant to what kind of industry you have right like the food and beverage you need to have the special license uh for the uh value added telecom you also have the special license um I think if you have fulfilled the requirement you can definitely get the license But the license also have the application uh duration. Sometimes you need to have one month, sometimes you have three months. It depends on what kind of license you have. This is also relevant to your business, right? For example, one of my client will just say, "Hey Grace, I must finish all the registration with one month because I need to issue invoice to my client." But I said, "Oh, okay." But if you have the special license before you can sell your food to your clients then this is u not okay. So we definitely need to understand the requirement also we also need to understand the timing. This is also very important and uh the other war is we call is data and cyber security. This is really a huge um topic. Yeah. For example, for your crossber transfers, you if it's involve a lot of you know personal datas and so on, this need to be reviewed and also filed by the uh relevant authority. So because the data protection is really a importance here and also the we have the law here. So this is uh something we also can also have the special trainings for you if you have a lot of you know data transfers for cross border. So I we can also talk more details in other section as well. And the baris um number four is foreign currency as and also capital controls. So this is uh for all the uh crossborder transactions actually you have you need to have the you know business flows from one country to other country and service as well. Meanwhile you also need to have the money transfers from one country to other. So this is also creates some you know um capital controls issue because China also have a high level controls about the capital here. And if you for example you need to pay some um service fees and or you need to buy some goods and materials or you need to pay some royalty fees. You also need to provide the relevant you know documentations like contract and so on and also you also need to prove the tax has been well or withheld and then you can transfer the money out. Also have the when you have dividend you also need to ensure you have clean up all the tax and then you can get the money repatriate from China to overseas. Yeah this is a very uh typical questions we will always have. when the you know companies operate here for a couple years they have a dividends and they don't know how to do that so this is we can give also the advice for the right solutions yeah and the other barriers is just for the regional execution you know China has a lot of you know different local requirements we have different you know zones we have industry zones we have the free trade zones. We have a lot of you know different special um uh cities for some you know different industry. So for the regulations and the government we have the country level but we also have the city level. So also have the zone level. Uh this is also need to be well understand before you um make the final decision to invest in where otherwise if something is really misunderstanding here and then um you will create some troubles. For example, uh we have one client. So they um the local government uh request them to operate there at least 20 years and then they can get some sub subsidies. But until the 10 years they uh want to stop the operation and the local uh government request them to return all the subsidies back because they have already agreed for the 20 years of plan. So although um the government the whole the halo government did not have such kind of requirement but this is um also need to be checked before you may sign this kind of agreement otherwise maybe in the later stage you will have some dispute for that and you you cannot get the enough incentive and subsidiaries as agreed before. So this is the uh bio typical barriers for the Chinese market entry. So since we have so many um barriers right so you may think ah okay so what what what shall we do? So for from here from this slide we summarize um compliance government architecture. So it means from the very beginning right now you don't have anything in China yet right it's a zero it on zero stage zero so you need to consider all the compliance in different stage so we have six here from the very beginning we need you need to think about the entry compliance is the market assess and the structure so Um for structure wise you also need to think of for example your tax structure your shareholder structure whether you need to set up directly from your country to here or you need to find some you know something in middle because we have the tax treaties and so on. So this is the u at the very beginning you need to consider how to make the fully compliance at a very early stage and the second one is for the entity compliance. Okay after all the screening and you have already say okay I can already do my entity. So you also need to understand what's the procedure here in China. We have already a big change. The speedy for company has been um um faster already. So you need to follow through all the procedures. You need to provide all the documentations like the naturalized documents and also for your um all the requirements from the local governments. After the documents finished, you can also go through all the business registration procedure and you also need to consider your tax right. So when you do all the business tax is very important very crucial also your customers your social securityities also a lot of you know regulator filings and uh you need to go through this is is company compliance when you set up the company you need to go through this kind of details so that you can ensure everything you set up is correct. I just give you a very small um example. So one of my client actually they u just want to make it very fast. they just say hey we don't want to u come to China we just ask somebody to sign on behalf of us or then after couple years when they want to close the company the government figure out the signature when they do the restriction is not the same as the original one so then this create a lot of trouble before they make the destration they need to verify how it's come. It's take a very long time we help them to solve this problem. So every single point for the local compliance requirement we need to all filled and uh the third one for your daily operation compliance requirements. There is also three checking point. The first one is a contract and invoice measurement. Also for your all the commercial contract is need to be reviewed by your uh lawyers or by by your internal staffs to make sure all the legal requirement has been uh managed and also you also need to have the internal control and the risk control system otherwise there is also a lot of you know fraud happens for example if you don't have the authorization procedures if you don't have the four eyes principles then there's going to be a lot of you know potential risk because we're also helping a lot of companies to doing their internal reviews and also control um internal control checks. We always find a lot of you know problems happens. This also not only will potentially bring a lot of loss for example some you know material some infantry got lost or get got stealed by their internal staff or they have some you know fraud happens it's very often. So this is we highly recommend all the companies need to consider to to um how do you say to hire some professionals to help you to set up the uh very healthy internet control system so that your company can operate very healthy in the long-term run. Yeah. And also for um also audit is very important not only for the internal audit but also the third party audit is also can help you to figure out the problems because sometimes you know for the foreign companies the head office is very h very far away they cannot immediately see all the figures all the problems. So sometimes if you already operate for a couple years, there's a mistake by mistake, problem by problem and if you don't have the regular check or regular audit, there will be a lot of troubles there. Okay. So the other thing is just for the data compliance. Yeah, this is also you need to have the internal rules for the data classifications and the personal information protections and also for the crossber transfer assets and audit trails. So this is you also need to consider what kind of datas you will have, what kind of datas you will transfer and from where to where. So this is something you also need to um put in very high priority for the data management. Yeah. And for transaction compliance um especially for the crossborder flows you also need to have the TP system we call it transfer pricing. We will also mention it later on. And you also have the uh cost sharing or cash pooling. this kind of things. This is all from the financial uh things and tax things you also need to consider. We can discuss more in details afterwards. Yeah, I think the last point is always something we uh mentioned to our client to say compliance is not only the one stop thing. It's a ongoing thing. You need to monitor it continuously. It means because your business maybe grows from two people to 200 people, your revenue tripled and 10 times in two years. So your compliance requirements need also be changed also upgrade accordingly. Just like uh some of client when they develop their business so well they will engage us to help them to make the digitalization transformation things such as they will have their SAP system or Oracle system to ensure they can manage they can track all the datas all the system very well to ensure all the transparencies and to ensure all the controls So yeah, this is um I mean government is not government and also for the u compliance is uh also a long-term thing. It's not a simple and one time thing. I hope all the you know entrepreneur and also enterprise owner can have this kind of you know mindset before and during and the whole operation. You need to have this into your mind. So just now we talked a lot of about the you know high level architecture things but I would like to spend the next half hour to give you some insight about how China tax compliance compliance financial compliance works here because this is quite crucial very very important and um you as you are as the owner maybe you don't necessary to know all the details but at least you need to have some you know overviews how it works because it's really relevant to your operation to a business for example when you before you make any contract when you make the cost calculation you need to know the tax right because the tax somehow also play a very important uh role for the um cost calculation. So this is something I think I hope all the uh entrepreneur can understand well if not if you say hey this is quite it's not my business I'm really will only focus how to drive the you know business growth then you need to engage some test expert and HR expert to help you to analysis before you make any uh final decisions. Okay. So the first part is just for the tax and compliance framework for China. I think it's very similar with other countries. We have the uh the two code tax is called corporate income tax and the value added tax. So in China the standard tax rates is 25%. It will be based on your company taxable income. For example, you have 100 taxable income, you need to pay 25 R&B as the corporate income test. But we also have a lot of you know uh preferential rate for uh for example for the uh high-tech companies they only need to pay 15% about corporate income tax and for sure we also have some other layer for example if you are the uh smallcaled payer and then your tax will be even lower maybe 5% for example your staff is within 100 and your um your revenue and also your total assets also with within some um benchmark it will also enjoy the lower corporate income tax rate and for the value added tax we have 13% 9% and 6%. Yeah. So this is uh for uh services we have the lowest one it's only 6%. For example, if you charge your client like 100 R&B, you also need to pay 6% about value added tax here. Uh the other tax is uh we call the withholding tax is uh also one of the uh corporate income tax. Why we mention here? Because this is really relevant for the for the foreign companies who always have this kind of crossborder transactions. There are a lot of time you need to pay the withholding tax when you want to you know um repatriate your dividend or when you want to pay the royalty or license fee this is will happen. So but you know China has a lot of you know tax treaties with a lot of C countries. So if we have the treaty relief available this can be reduced but the typical one is 10%. It means when you want to pay out for example royalty like 100 the Chinese local company need to withhold 10 R&B for as the withholding tax here. Yeah. And uh we talk a lot about the crossborder compliance right. So this is including three part is very important. The first one is just we call it transfer pricing. Transfer pricing is the core principle is am principle. For example, if you have the mother company and the daughter company or you have the sister company, you have the business transactions must be in the same principle with the normal transaction. This need to be same like you sell to the third party for the goods and also services. So it cannot be you know uh intentionally to lower the price or higher the price to make the perfect shifting. So this is um um very very crucial point is always being checked for the related party transactions. So uh I would like to draw your attention here when you have the interco company transaction with the head office or Chinese entity this need to be revealed by your tax lawyers in your mother country and also China here so that you can ensure the pricing is okay is acceptable by the Chinese authority. tax authorities and uh that the other one is uh for the perfect repatriation we have mentioned already. We also need you also need to have a lot of you know documentations for your tax filings and for your audit report. Um by this kind of evidence you can successfully remit your profit out of China. Yeah. The other one I would like to say is also China have the uh for the crossborder things we also have the same capitalization. It means um you also need cannot have the very high interest. Yeah. For the non-financial company the ratio the debit to equity ratio is 2.1 and 5.1 for the financial entities. So it means we um according to the tax you cannot deduct the high interest. Yeah. The interest rate need to be lower the bank rate. So this is some you know framework about the Chinese tax and the compliance requirement. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the
cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um make sure you can understand and you can have some takeaways to say in in China for when you have the crossborder transactions and also the fund flow. You need to have the proper documentation. You also need to calculate all the tax right and you also need to prepare all the you know evidence and supporting documents for a later check by the test bureaus. So this is very important because this is what we see the companies always get the penalties or late fees because they don't know the exact tax policy and regulation. So when they handling this kind of cross border things. So that's why we would like you you to write it down before you make the all the transactions. Yeah. And the s of third one is the cost sharing and the intangible assets. Yeah. This uh also relevant to the uh local subsidiaries with the overseas headquarters. Normally uh we see a lot of cases the um oversee head office charge the management fee or charge the um secment salaries or compensations for the uh people working in China. So this also creates some you know question marks from the tax perspective. So whether you charge the right thing to the right entity. So it cannot be decide by you know head office individually. This need to be you know arranged properly or according to the you know functions whether this function really happen in China whether this should be charged back to head office this need to be reasonable it's cannot be decide just knock the head and just do it this is not okay because this is relevant to the uh uh corporate uh corporate tax for these two countries. So we need to ensure all the revenues and the cost are record in the right entities. Yeah. I think this is uh the other point here we will not repeat too much because it's too much details. I think this we can explain maybe in in the one day for this each point. So we just want to um
