From: cshi@cs.ulowell.edu (Chunde Shi)
Subject: Re: Info on small private business in China
Organization: University of Massachusetts at Lowell Computer Science
Date: Tue, 14 Apr 1992 01:44:01 GMT

In article <1992Apr13.170956@IASTATE.EDU> kai@IASTATE.EDU (Kai Sun) writes:
I am interested in this issue too. I like to give my opinions not advices!
>Hi folks:
>  I am tentitively forming a idea of running a small(very small) 
>business in China. Specially, my idea is that I invest the money, and my
>brothers in my hometown area act as business managers. And then we hire
>one or two people as workers.
>  I will appriciate your remarks on the following matters. This could help me 
>make up or reshape my final decision.  I hope this is not a misuse of the net. 
>It is a topic well worth discussion.
The three most important things:
   Market in U.S.A.: You have to find a buyer in U.S.A. which determine your 
                      what kind of product you should produce, what QUALITY;
   How to send to U.S.A.:
                      by ship?
   How to use the local resources back in China that your brother can obtain
                      that procude the goods the buyers want; 
   Profits:
            Profits vs risks(uexpected short of capital, buyers cut lose, 
            shipping delay etc).
>	Issues:
>	  Is this just fissible?
                         too generalized question?
>	  government rules on renting a house or site;
                            Start from you brother's living room, or any room
                            he can obtain, do not spend prcious start-up money
                            on "luxary items"
>	  government rules on tax;
                            start up compary tax free for 3(5?) years;
>	  government attitude toward me (J-1 to F1, no political backdoor
                            Government officals will worship you for you to 
                              bring "foreign currency" to local economy.
>	    relations)
>	  U.S. government rules on F-1 students investing in my homeland;
                            Annual money transfer limit for a single person
                            to outside of U.S. is $10,000 without reporting
                            to custum.
>	  U.S. government rules on teh investment tax;
                            Simple not to report any money you earn in China,
                            You do have to report the money you earn in states
                            though; samll business, you can find lot of "expense                             " , end up not paying taxes;
>	  where do I go to get permission, what is the processure;
                            this is a lest you have worry about. go to any state
                        government, you can resgister a company as easy as
                        renew your driver license with around $100 fee;
>	  Issues you think important but not mentioned above.
To be honest! you did not see those most critical things for start a business.
Give you info. 90% of new business in U.S. will bankrupt within one year
after start. Be carful if you want success, not just thrill and excitement.
> 
>  By the way, I understand that government rules vary from place to
>place, for good or bad.  To help your analysis, I am from RongCheng, ShanDong.
>The town I am interested to invest has population about 10,000 people.
>
>Thanks though I will share money to you directly.
>
>Kai Sun
>--
>*******************************************************************
>* Close your eye(s) for 5 minutes,  |   kai@iastate.edu           *
>* you will see magic.               |   N1.Kai@isumvs.iastate.edu *
>*******************************************************************