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By: Kevin H. McKervey, CPA

We have been publishing Global Reach for many years, and over the last few years, we have continued to devote space to sharing thoughts on doing business internationally. Although there are many places around the world that are attracting attention, it is difficult to get away from the importance of considering the opportunities China presents and becoming as educated as possible on this rising economic force. We would like to make you aware or our efforts to continue to learn more about China. Let me share with you a few of the ways.

You may not be aware of the fact that I am the Chairman of the North American Business Development Task Force for PKF, our international affiliation of accounting firms. Because of the significant impact China has throughout the U.S., our taskforce decided to fly some of our PKF associates from the Hong Kong and Beijing offices to San Francisco in January 2006. We had about 30 people from around North America who attended the meeting. It was a unique opportunity to learn from our Asian counterparts about such items as setting up a WOFE (Wholly Foreign Owned Enterprise) in China. They answered questions on capital investment requirements, the application and registration process, and, most importantly, how to get the money you make in China back home to the U.S. It was great to meet our Asian counterparts in person, share a meal with them, and better understand how they help PKF clients from around the world access this new market. These types of contacts come in very handy when we have clients seeking to do business in China. As a matter of fact, one of our clients is now in the process of setting up a WOFE in China, and it was great to be able to refer them to our PKF firm in Beijing for the assistance they will need.

Many of you are probably aware of the fact that Don Clayton, managing director of Clayton & McKervey, is a very active member of the Association of Corporate Growth (ACG). Don is a past president of the association and continues to look for opportunities for our firm to assist the association whenever possible. In late April, Don asked me to moderate a three-person panel on a discussion called "Lessons Learned Doing JV’s in China – A Panel Presentation." We had a great panel comprised of Tom Saeli, chief exectuive officer of Noble International, C. Peter Theut, shareholder at Butzel Long, and Bud Aspatore, chariman of Amherst Partners, LLC. This fine panel shared their thoughts and ideas about China with over 100 attendees. They discussed setting up a WOFE, entering into joint ventures, challenges they faced, and the results of their efforts. The group also learned that in addition to the investment opportunities that exist in China, many Chinese companies are looking to invest in the U.S. It was a unique chance to gain the perspectives of some very experienced people who have done business in China. I trust all who participated in the session came away with a greater awareness of the opportunities and challenges that can be anticipated.

Lastly, I want to let you know that I am in the process of planning my first trip to China. PKF International will hold their annual symposium in Beijing this fall. This will enable me to meet with folks from around the world to learn more about how we can help our clients compete internationally. In addition, I will be able to see first hand what I have only heard and read about. Although my primary purpose is to become more business educated, I suspect that the Great Wall will receive an extra visitor or two during our stay. I am sure this will be a unique opportunity I will treasure for many years to come.

Suffice it to say that with all of the attention China is commanding, this is probably not the last time you will read about China in Foresite. It wouldn't suprise me if the Winter 2007 issue contains a few thoughts about my fall trip.

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