Shortcut Options: Third Jurisdictions as a Gateway to China
Foreign businesses seeking to enter the Chinese market often wonder whether including a third jurisdiction (e.g., Hong Kong or Singapore) in between their home country and China would bring any advantages to their business model. In fact, advantages associated with this type of structure generally include beneficial tax treatment, lower costs, a stable business environment, smooth payment procedures, as well as “verifiable” business partners. Whether these benefits will be materialized depends on multiple factors. In this section I will be focusing on the advantages and disadvantages of using this approach as another way to access the Chinese market. Third jurisdictions, as a gateway ...
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