Do This One Thing Before Doing Business In China

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Many years ago, an American credit reporting company called me seeking help with forming a subsidiary in China (a Wholly Foreign-Owed Entity). This company told me of their extensive and expensive market research demonstrating that China had a tremendous pent-up demand for their credit reporting services. As I listened, I kept thinking that unless the law had very recently changed, foreign companies were prohibited from engaging in such business without a Chinese joint venture partner.

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