Dana Ritchey is Senior Tax Counsel at General Motors and is currently located in Bangkok, Thailand. He joined General Motors in 1995 and was relocated to Beijing, China where he was responsible for international tax, structuring, treasury, negotiations and government relations in China. He was promoted to Senior Tax Counsel in 1997 and was involved in projects with General Motors' successful bid for an automotive joint venture in Shanghai. Dana's responsibilities included working with more than thirty-five banks on China's largest syndicated financing projects at that time. Dana relocated to General Motors in Singapore, in 1998, where he was responsible for managing the international tax aspects, cash flow

and repatriation and capital structures in the business development of efforts of General Motors' ASEAN and Indian investment portfolio. In 1999, Dana was promoted to an executive management role at General Motors and assumed responsibility for Japan and Korea, in addition to ASEAN and India. Dana relocated to Tokyo, Japan in 2000 where he was selected as Project Leader for General Motors' restructuring team for Isuzu, a 49% subsidiary of General Motors, involving analysis of key operations/supply credit lines that were important to General Motors' production in the US/Europe/Asia markets. Dana relocated again in 2003 to Singapore where he was responsible for regional tax matters for General Motors with the goal of achieving regional corporate objectives for the company. In addition, Dana assumed responsibility for the management and development of a team of regional tax professionals capable of M&A, transfer pricing and cross-border transactions. In 2005, Dana relocated to Bangkok, Thailand where he now resides and oversees all his responsibilities in the region. Prior to General Motors, Dana Ritchey worked as an International Tax Manager at Arthur Andersen in the firm's national office in Washington, DC. Dana also worked at PricewaterhouseCoopers in the Denver, Colorado office and was promoted to a foreign assignment in London, England. Dana Ritchey earned his Masters of Taxation from Denver University, Denver, Colorado in 1992; he earned his BS in Accounting from Bob Jones University, Greenville, South Carolina in 1984 and became a Certified Public Accountant in 1986. Dana Ritchey is a member of the International Fiscal Association and the American Institute of Public Accountants.

KJ- You have enjoyed a very unique tax career that has placed you in lead roles in the US, China, Singapore, Japan and Thailand. Where did you start your tax career?

DR- After spending most of my younger years abroad in Brazil, Japan & Mexico (since my father was also a long time expatriate), I returned to the United States to attend University. Despite a short assignment in PwC’s London office, I spent the next eleven years in the US working for PwC, then AA, while completing my graduate degree at the University of Denver, Colorado. I then joined General Motors in 1995 and moved to Beijing, China in August of that year to help GM establish an automotive footprint.

KJ- What was it like working for General Motors in China in 1995?

DR- It was very exciting but challenging. In 1995 China was just beginning to open up to foreign companies. My wife may have found it more unique, as there were not many tall, blonde women walking the streets of Beijing at that time. This was a once in a lifetime experience from both a personal & professional point of view. Only a few places existed where foreigners were permitted to live, and most of our movements, including phone calls were monitored.


KJ- When did this type of monitoring start to change in China?

DR- China has become much more open to foreign investment and has quickly become cosmopolitan in cities such as Shanghai and Beijing. However, one still needs to be careful with confidential material and information to safeguard against piracy, particularly with regard to intellectual property.

KJ- Did you feel safe in China?

DR- Yes, we did feel safe in China. Since the government was looking for dynamic growth, they were keen to ensure that foreigners felt secure.


KJ- Is it my understanding that General Motors was one of the first US companies to go to China?

DR- General Motors was the first US automotive company to establish a significant presence in China in 1995. Our objective was to develop a world-class automotive industry in China. We teamed up with Shanghai Automotive Industrial Company to form a 50 / 50 Joint Venture, known as Shanghai GM (SGM). SGM today is the largest automotive Joint Venture and is a vital part of our Asian growth strategy.


KJ- In 1995, the Chinese primarily used bicycles to get around and now they are using automobiles. What was it like to experience this cultural change?

DR- When we first arrived in 1995, there were approximately 8 million registered bicycles in the city of Beijing. Since that time, the city has been transformed into a major metropolis with traffic jams that rival any major city around the world. My first accident in Beijing involved getting run over by bicycle. Shortly before I left, I was hit by a small delivery van. That sums up the changes that occurred in three short years. Change happens quickly in China and often. The pent up demand for consumer products has flooded the economy as the markets have opened up and more products become available to the average consumer, from appliances to automobiles. The purchase of a car is more than just a large acquisition. It is a status symbol a real statement.


KJ- What is the real estate market like for foreigners in China?

DR- Previously, foreigners were prohibited from buying real estate, but now the regulations have eased and foreigners can purchase homes and condos. A number of my friends have purchased real estate in Beijing and Shanghai. With the surge in property values, real estate can make for an attractive investment.


KJ- What type of companies do you see coming into the Chinese market?
DR- The large multinationals from Europe, US and Japan view China as a market not to be missed. Korean conglomerates are also investing heavily. In addition, with the banking regulations beginning to loosen, large investment banks are now entrenched in China. It is often said that, “a company cannot afford not to be in China”. With the number of potential consumers who have money to spend, it is easy to see why this statement is commonly quoted.


KJ- What is the projection for the future and the business strategy for conducting business in China?

DR- The expectation is that the growth in China will continue for quite some time. However, with the economy humming at double-digit growth rates each quarter, the PRC government is now working very hard to cool the economy and manage inflation. However, as I mentioned before, there are many people who are able to, and willing to spend money, now that the markets have opened up and many more goods are available.


KJ- Has the influx of foreign investors and joint ventures been the reason for so many changes in China?

DR- Once the PRC government opened the door to foreign investment, there were two important changes – (1) consumers, at all levels, now have access to much more than ever before, and (2) there now is the opportunity to start a business. As the economy booms, more and more Chinese are able to get good paying jobs, which in turn drives the demand for more goods.There are still regulations in place by the government to protect certain industries and activities. For example, in many industries, you will need a local partner in order to do business. As a result, doing business is often through a joint venture arrangement. A big challenge for many multinationals is protecting their intellectual property, whether it is formulas or designs, in such an environment.


KJ- How would you describe your experience conducting business in Singapore?

DR- Singapore has a world-class business environment with transparency, the right infrastructure, and no corruption. In many ways, Singapore is like the Switzerland of Asia. It is one of the most advanced cities I have lived and worked in around the world, and certainly from a business travel perspective, it is easy to connect to anywhere in Asia, Europe or the US. For this reason, many multinationals headquarter their Asian operations in Singapore. In addition, you have a well educated labor force. From an expatriate perspective, Singapore provides a comfortable lifestyle, world-class medical care and education, as well as great access to the rest of Asia.


KJ- How would you describe your experience conducting business in Bangkok, Thailand?

DR- Bangkok is considered an emerging market and while opportunities do exist, the military coup that occured nearly eighteen months ago has changed the pro business outlook for the immediate future. The regulatory environment is bureaucratic, and given the current outlook, along with the relatively strong currency, will make investing in Thailand more challenging in the near term. While some multinationals have set up their ASEAN headquarters in Thailand, many have elected to operate out of Singapore, since it is only a 2 hour flight away.


KJ- What was your business perspective working in Tokyo?

DR- Having grown up in Japan, and being part Japanese, my personal experiences in Japan were very good. However, doing business in Japan can still be challenging. There are cultural differences that are best overcome through a strong, close working relationship with your Japanese partner. This can either be through a joint venture arrangement, or through hiring strong management talent. Absent that relationship, you will be less likely to penetrate the Japanese market. However, if you can successfully manage these challenging issues and penetrate the Japanese market, a firm can be hugely successful in a market that is often viewed as closed, due to its difficulty to penetrate.

KJ- Dana, thank you profoundly for the invaluable insight you provided our readers this month. Your knowledge of these business environments will be helpful to our readers worldwide.

If you would like an introduction to General Motors or if you would like to send a private email to Dana, please contact Kathleen Jennings at Kathleen@etsearch.com.

Kathleen Jennings (KJ)
Editor, The Tax Intelligence Report
Kathleen@etsearch.com