Bilingual English & Chinese Tax consultants & advisory services

The starts and stops throughout 2022 suggest investment could strengthen a great deal when COVID recedes. Our people are credit experts, experienced professionals, and global citizens who collaborate in offices in over 30 countries, to help our clients and communities. Geopolitics will be an ongoing risk, and differences with the US are hard to reconcile. Concern about the rise of China is a bipartisan issue in US politics, but with the Republican party gaining control of the House of Representatives more hawkish legislation towards China may be prioritised. Meanwhile, in the technology sphere, export controls and other sanctions seem likely to remain in place and could widen. Trade tariffs, implemented under the Trump administration also remain in place, but could be one area of discussion if recent diplomatic efforts progress.
The PCAOB also oversees the audits of brokers and dealers, including compliance reports filed pursuant to federal securities laws. Effective auditing of companies’ financial statements is important for investor confidence, but Chinese companies traded in the U.S. don’t get U.S. oversight of their audits as other companies do. Our integrated service delivery model that combines professionals in China with extensive knowledge of SEC and PCAOB accounting standards 美国华人会计师事务所 with U.S.-based industry leading experts in technical accounting, international tax, and compliance issues. We provide financial due diligence and forensic accounting services for overseas investors and companies seeking to invest in China. And we offer comprehensive services to Chinese companies and individuals for overseas expansion, including M&A, global tax, capital verification, financial due diligence, real estate, and EB-5 investment services.

The institute coordinates training and development activities to support and enhance its members’ professional services, manages internal and external relationships with industry stakeholders, and safeguards the public interest. We support the development, adoption, and implementation of high-quality international standards. Short sellers have argued that rather than open up their books to U.S. auditors, Chinese companies would simply move their listings to Hong Kong. “It’s really just Xi Jinping wanting to make it look like the Chinese companies are exiting the U.S. out of China’s strength and the robustness of the capital markets alternatives available in Hong Kong and in mainland China, as opposed to the U.S. saying, ‘We’ve had enough... As of Tuesday, Gaotu’s stock had sunk from a high of $149 at its January peak to under $3 per share, after China’s Ministry of Education announced on Saturday it would ban education firms from making profits, raising capital, or going public. Beijing expects China’s economy to grow 5.5% this year—much lower than 2021’s 8.1% growth—but analysts estimate that the country’s actual growth will hover around 5%.
However, those financial reports are in addition to the ASBE financial reports that the Chinese companies issue within mainland China. Each Chinese student must apply, be admitted and select a doctoral program in a US university. In business research disciplines, particularly accounting, his/her choice of academic institution predetermines the extent of the student's exposure to diverse social theories, paradigms, and research methodologies.
In contrast, the two best-known home-grown Chinese firms – Ruihua and ShineWing – have both shrunk significantly in the past two years. Nevertheless, by the mid-2010s the new multi-firm vision seemed to be forming into reality. Yang Jiantao founded Ruihua in the 1990s and built it to the point where by 2013 it was the Chinese firm for not one but two second-tier accounting networks, RSM and Crowe Horwath. CICPA estimated in 2016 that the indigenous Ruihua had reached the number three spot in China by revenue. But in the past few months, the timing of their ascendancy has become far less clear.

Chinese companies listed on U.S. securities exchanges should closely monitor subsequent developments and, at the same time, may want to explore listing alternatives in other international markets. As part of the PCAOB’s work to ensure that investors in public companies can rely on quality audits, it will investigate the competency and conduct of accounting firms and professionals in the PRC and Hong Kong. The PCAOB has settled disciplinary orders with accountants and accounting firms around the world based on information learned during inspections. In Western countries, although amendments and revisions to accounting practices or standards do not have legal binding power, they are formulated according to an existing national legal framework which is provided in most cases by Companies Ordinance or Acts.
Public Company Accounting Oversight Board to examine the audits of firms whose shares trade in America, citing national security concerns. Several prominent Chinese technology companies like Alibaba and JD.com have established secondary listings in Hong Kong, and some institutional investors have begun to convert their U.S. holdings into HK shares. But retail investors could end up as collateral damage in a wholesale delisting, particularly if companies are taken private at disadvantageous terms. It remains certain that Chinese firms like Alibaba will still face delisting risks in the future, even though they may conform to the US's listing standards now. But they have grown rapidly, by hiring young new accountants and acquiring local firms. Beyond the big cities like Beijing and Shanghai, quality can be “patchy”, says Mark Webster of Business Development Asia, an advisory firm.

101 This is especially true in terms of the delisting and relisting strategy exploited by many Cayman-incorporated companies. 90 A plausible challenge would be how to apply HFCAA if most ULCCs would be unable to file audited financial statements with the SEC. A regulatory gap arises when foreign issuers move from a weak governance regime to a stronger one as result of a cross-border listing. China  has routinely denied access to overseas regulators, arguing that allowing the USA to enforce US laws in China would violate its national sovereignty and risks disclosure of state secrets.
Registration/de-registration is a core activity of the PCAOB since its establishment in 2002 via the Sarbanes-Oxley law. The SEC and PCAOB have repeatedly deferred to a perceived necessity to list Chinese companies, no matter how sketchy, and allowed the largest global audit firms to hide under China’s skirts to avoid U.S. enforcement for negligent audits. That auditor may in turn farm out some regional work to local firms, which would report their results back to the principal firm without having to transfer audit working papers out of China. Multinational companies often have a principal auditor that does the majority of the work and signs off on the financial statements. Accordingly, we direct this statement to those newly engaged lead audit firms located outside of China and Hong Kong for issuer audits of companies based in China or Hong Kong and others who may be considering similar arrangements.

And Apple, which turned to Baker McKenzie to help it find a tax haven, has become the international poster child for corporate offshore tax avoidance. A Russian maker of Kalashnikov rifles, under international sanctions for bad behavior, wanted to sell its shares in a large copper mine to a shadowy business in Mongolia. Our NFT Playbook is a roadmap to addressing IP rights, business infrastructure and risk for media & entertainment companies and others. Scientific American is part of Springer Nature, which owns or has commercial relations with thousands of scientific publications (many of them can be found at /us).
Australian accounting firms, due to a revealed preference to hire white Australian graduates, appear to be missing out on a vast reservoir of Chinese talent. Chinese accounting graduates speak two or three languages and have established business networks in China or at the very least insider knowledge of how that country's business culture operates. Whilst their sub-cultural capital may be lower on average than white graduates on some conventional measures, it is higher in those areas of bilingual capability and cross-cultural knowledge which are becoming of increasing importance to Australian business. In a May 24 speech, YJ Fischer, director at the SEC’s office of international affairs, said that the “PCAOB would need to be able to complete inspections and investigations by early November 2022”. Even if US and Chinese authorities reach an agreement in the near future to commence PCAOB audit inspections and investigations in China and Hong Kong SAR, “such an agreement will only be the start towards satisfying the PCAOB’s statutory mandate”. This revised law marked a large step forward for the continuing integration of world trade and capital markets, with China adopting a significant number of the accounting standards laid out by the International Accounting Standards Board.
The Public Company Accounting Oversight Board, the U.S. audit regulator created to restore confidence in financial reporting after accounting scandals of the early 2000s, isn’t allowed to inspect the work of China-based accountants. “While this agreement is an important step, it remains to be seen whether the PCAOB will, in fact, be permitted, pursuant to the terms of the Statement of Protocol, to inspect and investigate completely audit firms in China and Hong Kong.” Munter said in his statement. However, PCAOB Chair Erica Williams said that the “announcement should not be misconstrued in any way as a clean bill of health for firms in mainland China and Hong Kong”. More than two years ago, former president Donald Trump signed the Holding Foreign Companies Accountable Act , which demanded foreign companies withdraw from the US stock exchange if they failed to file audit reports with the PCAOB for three years. Darren LiangThe PCAOB’s final statement last month on completing inspections strongly indicated that the alarm over some 200 Chinese companies being kicked off the US stock exchange has been allayed. MarcumAsia is dedicated to bridging the gap between China and America by providing high quality, professional independent audit services, financial due diligence, and advisory services to our clients.

DTTL and each of its member firms are legally separate and independent entities. DTTL (also referred to as "Deloitte Global") does not provide services to clients. In the United States, Deloitte refers to one or more of the US member firms of DTTL, their related entities that operate using the "Deloitte" name in the United States and their respective affiliates.
While getting good local China accounting advice is almost certainly going to be necessary once you're on the ground, it can't hurt to be aware of a few home truths before getting started. The “complex web of regulatory coordination…and questionable levels of political will still very much cloud the future of U.S.-listed Chinese stocks,” Trivium analysts wrote. Senators Chris Van Hollen (D–Md.) and Marco Rubio (R–Fla.) have both cautioned that Chinese companies must fully comply with U.S. rules if they want to remain on U.S. exchanges. Beijing is now seeking a compromise from stubborn China hawks in the U.S. who have little political incentive to give in—despite the damage delistings could inflict on American investors and institutions. China still has restrictions on transferring audit paperwork overseas, and it’s unclear how bilateral access will actually work, Montanaro says.