Assets in China

Areas of the world are subject to different levels of loss from natural disasters such as windstorm, hail, earthquake, flood, etc. There is neither necessarily the rating information nor the insurance availability that exists in the US, and insurance terms and conditions are different. Theft and vandalism exposures can be higher than what we are accustomed to as well. Attention must be given to the question of what currency losses will be paid in, and insurance limits will need to be carefully monitored in a high inflation environment. Personal property being shipped to and from the US needs to be insured in transit, and control over the insurance should be maintained if possible. If the transit insurance will be handled by the foreign party, the sale should be on terms whereby risk of non-insurance or poor insurance falls to the party arranging the coverage, not to the innocent party.

China has severe exposure to earthquake, flood and hail. The country has had 15 earthquakes 7.0 or greater in magnitude, and four 8.0 or greater, since 1900. Anyone placing assets in China must understand the awesome relevance of these statistics. In addition, China’s great rivers periodically inundate surrounding areas, creating loss of life and property. Location of assets, avoiding concentration of assets in single locations, and placing of the proper insurance will be critical measures for investors.

Assets are also subject to political risk, a separate section of this site.

We will work with you as a member of your team, identifying risks to assets and designing control and finance techniques (including insurance) so that your assets can be protected as they should be.

are not fit to lead an army on the march unless we are familiar with the face of the country – its mountains and forests, its pitfalls and precipices, its marshes and swamps.”

Sun Tzu, ancient Chinese warrior and philosopher