You show me one company in America that has to ask permission to loan money to a subsidiary. In China, they may try it and they'll say, Yes, we'll take care of that later. They may be lucky enough to have the bank allow them to do it, but then the tax man's going to come in and say, You can't deduct any of the interest on your tax return because you never asked permission from the foreign exchange bureau to bring in the money in the first place. It's very easy to bring money into China. It's very difficult to get it out unless you follow the rule-capital approval, business plan approval, current account, capital account.
Companies have to be able to adapt and consider all the factors.
There is a law on accounting for foreign investment enterprises. Your system has to be able to do that. You have to be able to meet that requirement. In the United States, if you're an entrepreneur, you can keep your books any way you want as long as you comply when it goes on the tax return. Then you can reconcile it to the tax return.