Local Chinese auditing firms have become more competitive in terms of talent and professionalism, even displacing two of the Big Four in a published ranking.
Paul Gillis, author of the acclaimed China Accounting Blog, comments on the evolution of the top Western CPA firms in China and trends toward localization.
Rankings Reveal Increased Competition
''My book, The Big Four and the Development of the Accounting Profession in China, was a look at how the Big Four (PwC, KPMG, Deloitte and E&Y) came into China after it began to open up in 1980 and came to dominate the accounting profession in China.''
''Then I looked at how did the local CPA firms that merged out of the State during the 1990s, how did those firms come to compete with the Big Four.''
''The story as it developed turns out pretty interesting,'' says Paul. ''The Big Four dominated the market until just recent years and now the local firms have come back.''
''Two of the local firms have passed two of the Big Four firms. So the Big Four in China, if you look at a China Big Four, has two of the classic Big Four firms, PwC on top and Deloitte in second position, and two local firms Rui Hua and the Chinese affiliate of BDO, in the third and fourth positions.''