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Intercompany payments between multinational …
Intercompany payments between multinational corporations and their affiliated companies in China By Peter Guang Chen The cash trap problem For multinational corporations operating in China, the repatriation of cash from their subsidiary operations in that country has always been an important and challenging issue. A phenomenon known as the cash trap is perceived by multinational corporations to exist regarding their operations in China. The cash trap means that, while the multinational corporation s affiliate or subsidiary operations in China may be profitable, there are no legal and effective means of getting out some of the cash representing those profits, so that in a sense a portion of the profits (the cash) is effectively trapped in the country.
Intercompany payments between multinational corporations and their affiliated companies in China By Peter Guang Chen The “cash trap” problem For multinational corporations operating in China, the repatriation of cash
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