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and any counter trade intermediary,
FREQUENCY OF LEASING
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a)
The case for leasing from the Chinese point of view is
thus far from clear, Its presentational and short term
financial advantages have to be weighed against its greater
complexity and probable greater long term costs. But while
leasing is perhaps unlikely to become a major vehicle for
financing British exports to China, it will have a part to
play. The Chinese are known to have entered into leasing
contracts with overseas lessors but none so far as is known
have been made with the UK.
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b) A recent development suggests that the Chinese may be
moving towards leasing as a method of acquiring plant. Å
joint venture between Orient Leasing Co of Japan, China
International Trust and Investment Corporation and Beijing
Machinery & Electric Equipment Corporation is proposed. The
venture, a leasing company to be called China Orient Leasing Co
will operate from Beijing and is to have an initial capital of
US$3 million of which the Japanese will provide 50%, China
International Trust 20% and Beijing Machinery 30%. Formal
approval of the Chinese Foreign Investment Central Commission
is awaited and the new company hopes to start operations in
early 1981. The company is to engage in leasing, releasing,
rental of machinery, equipment and transport facilities and
sales of leased assets from Japan and elsewhere. The agreement
is to run for 20 years and the Japanese partner is reported as
expecting leasing contracts worth several hundred million
dollars within the first 5 years.
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