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Note 12 - Operating Risks
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6 Months Ended |
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Jun. 30, 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
considerations and 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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