The start of a new year tends to be a hectic time for foreign companies in China. During this period, businesses must also begin to prepare their annual statutory audit – if they have not started to do so already. In this issue of China Briefing magazine, we walk foreign businesses through the annual audit and compliance process from start to finish. We begin by exploring the significance of annual audit on FIEs and strategies on how to make the most out of the annual audit. Then, we offer a comprehensive step-by-step guide to completing the annual compliance process and highlight the changes in the past year. Finally, we provide a comprehensive introduction to the new China Accounting Standards that will affect most businesses, starting January 1, 2021.