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Note 12 - Operating Risks
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12 Months Ended |
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Dec. 31, 2011
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| Unusual Risks and Uncertainties [Table Text Block] |
Note
12 – Operating Risks
The
Company’s operations in the PRC are subject to
specific considerations and significant risks not
typically associated with companies in North America
and Western Europe. These include risks associated
with, among others, the political, economic and legal
environments of the PRC and PRC rules and regulations
regarding foreign currency exchange. The
Company’s results may be adversely affected by
changes in governmental policies with respect to laws
and regulations, anti-inflationary measures, currency
conversion and remittance abroad, and rates and methods
of taxation, among other things.
The
Company’s sale, purchase and expense transactions
are denominated in RMB and all of the Company’s
assets and liabilities are also denominated in RMB. The
RMB is not freely convertible into foreign currencies
under current PRC law. Foreign exchange transactions
are required by law to be carried out only by
authorized financial institutions. Remittances in
currencies other than RMB may require certain
supporting documentation in order to effect the
remittance.
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