Paul Gillis: China’s Expat Social Insurance Tax Lacks Clarity; Conundrum Between U.S. and Chinese Regulators Needs To Be Solved By Diplomacy

In this episode of China Money Podcast, guest Paul Gillis, professor of accounting at the Guanghua School of Management, Peking University, discusses:

– What is the impact of the new expat social insurance tax to companies and expatriate workers in China?

– What can the U.S. and Chinese securities regulators do to improve the auditing process of U.S.-listed Chinese companies?

– Will the PCAOB (Public Company Accounting Oversight Board) really withdraw registration of all auditing firms in China?

About Paul Gillis:
Paul Gillis is a professor of accounting at the Guanghua School of Management, Peking University in Beijing, China. Prof. Gillis is also an independent director and chairman of the audit committee of Pansoft, a NASDAQ listed Chinese software company.



  1. A correction in what you said:

    You said Sina and Sohu were the first Chinese tech firms to list. Actually did it first well before the others and now they are bankrupt as of last month.

  2. Frank, you are right. I consider to be a Hong Kong firm. But of course none of them were actually Chinese companies – all are incorporated overseas.

  3. "What is Chinese" anyway…… But seriously who would you consider to be the first "Chinese" firm to list? Would it be China Tire? I also perked up in the podcast when you said LFT was a fraud without qualifying it with "alleged" or "supposed" or "apparently". Do you think there is no way they can dig themselves out of that hole? Are there any China-side ramifications if the US decides there was a fraud? What you said about General Motors too struck home because that will ultimately be WHY nothing will happen, if those consolidated financials can’t consolidate then US GAAP firms can not do business in China.

  4. Due to the differing interests between both countries, they seem to have problems with the tax laws they would like to implement. This is very difficult since different countries have different tax systems which might conflict one another.