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Features
- What if all Trade and Business Were managed as in China? - Editor, 24 March 2008
- All Computer Monitor Roads Lead to China - Editor, 17 March 2008
- Migrant Labor from Rural China and Implications for the World - Editor, 10 March 2008
- Little Yang during Your China Travel - Editor, 4 March 2008
- Environmental and Social Accounting for China Business (Part 1) - Editor, 11 February 2008
- Environmental and Social Accounting for China Business (Part 2) - Editor, 11 February 2008
- Management Accounting for China Business Supremacy (Part 1) - Editor, 4 February 2008
Who does not know Wen Jiabao? The Premier of the State Council is one of the best known leaders of the world. His address at the First Session of the Eleventh National People's Congress during the first week of March 2008 is a mirror to future directions of trade and business in China. There are no promises of stimulus checks in the address. There is no mention of sub prime crime either. Nevertheless, the direction for the economy is clear. What can people who do trade and business with China have to learn from this address?
You can tell how well a business fares from its office ambience. It is the same for homes of the successful. There are many pointers from drive-ways to wash rooms. Some have just snob values. Others are linked to productivity. A computer monitor strikes a balance. There is no doubt that the latest LCD monitor looks elegant. However, it also helps professionals do more. An office or home with a current LCD computer monitor has become the simultaneous hallmark of modernity and style. What does this have to do with China?
Chen Xiwen is Director of the Central Leading Group on Rural Work in China. Beijing will spend more than 500 billion Yuan in 2008 on rural development. China is not alone in dealing with issues of migrant rural labor. The difference is that no country does as much to improve village life. What does this mean for the world?
Can you write-off a vacation as a business expense. We cannot promise a ‘yes’ from the tax department! However, we do assure you that travel to China is your best bet for great business. You can spend happy minutes at our web site, exploring China. Every province is so full of novel experiences. China is more than everything you have read about Beijing and Shanghai! It is a total experience, which can start a revolution of your business and life.
Have you read our earlier piece entitled “Management Accounting for China Business Supremacy”? We find that accounting can do more than tote up the numbers. It all depends on how the figures are presented. Leaving out some aspects of an enterprise can also make a business look different. Environmental and Social Accounting can help China business work improve. The first results can be frightening! Perhaps there are groups of people who get hurt. A Kaizen approach helps us take a positive view of matters. No one is perfect. Everyone can take small steps towards doing things better. Environmental and social accounts next year can be better than they are now.
How China Business Can Protect Investors
It is always better to avoid extremes. The stakeholder concept should not make stock investors feel left out! China business can adapt management accounting systems to take care of particular investor concerns. The Trailing Twelve Months (TTM) concept of influential US business web sites is an important lead. China business should move away from quarterly comparisons alone. There could be many seasonal variations for quarterly changes. A TTM approach is more reliable. Sensitivity Analysis is uncommon even in the US. China business can stand apart by show-casing Net Present Value (NPV) under various assumptions. This applies to the Internal Rate of Return (IRR) as well. Who knows the future for sure? Even pay-back periods can change in adverse business conditions. Sensitivity profiles of pay-back, NPV, and IRR, will encourage investors. Everyone gains if investment analysis is complete!
This is a second piece in a series on the evolution of China business. This article is linked to an earlier one we have published at this web site titled, ”How Should China Business Manage Its Equity?”. 20th century Business Management is an overwhelmingly occidental way of thinking, organizing, allocating resources, and of evaluating outcomes. It has the stock market as a close ally, which has formed the vanguard of the advance of capital led influence over the affairs of people.
Recent Articles
- China and Taiwan Continue to Strengthen Trading Ties - Editor, Wednesday 18 January 2012
- China to Upgrade CNAPS for Cross-Border Trade - Editor, Wednesday 4 January 2012
- Philippines-China Trade Shows Impressive Growth - Editor, Wednesday 21 December 2011
- UAE-China Trade Ties Strengthened at 10th CCFS - Editor, Wednesday 7 December 2011
- China Reviews Climate Change Policies - Editor, Wednesday 23 November 2011

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