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Note 12 - Operating Risks
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3 Months Ended |
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Mar. 31, 2012
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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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