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Expansion to China saves millions

July 19, 2017 Case Study 1 min read
Alex He
A large automotive manufacturer successfully expands to China with savings of nearly$2M USD via swift negotiations, tax incentives, and government subsidies.

 Image of two people shaking hands

The challenge

The manufacturer was looking to expand operations through a greenfield project to maintain a competitive player in the automotive manufacturing space. China was an unknown market for the company so they needed assistance with all aspects of international growth from site selection, office leasing, contract negotiations, to WOFE incorporation to name a few.

The solution

Our team of international experts assisted with all aspects of the greenfield project. We started with an analysis of the pros and cons of different locations for setup. We discussed the appropriate suppliers and vendors, such as banks, to help make the purchase decision. In addition, we helped the client understand the roles and responsibilities of different WOFE officers to make sure the process would be seamless. Through our constant communication and experienced advisory role, we kept the team on track with their incorporation process. Finally, we assisted the company with government communication to obtain an environment assessment and to complete Environment Impact Assessment and Energy Consumption Assessment reports.

The benefit

We leveraged our local resources in China and our U.S. team to easily communicate with local authorities and the client’s U.S. management team. These lead to a smooth, seamless process for the manufacturer. Our experts helped the client to understand the payment process and China compliance requirements, and coordinated with a local accounting firm before the client’s new controller came on board. Our experience with chop custody to ensure the safety, negotiations with the local government, and knowledge of tax incentives led to a successful expansion and saved the company nearly $2 million USD.

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