Big Four auditing firm PricewaterhouseCoopers (PwC) is facing challenges in China due to its work for now-defunct Evergrande. PwC’s senior partners in China are making over 5 million yuan annually, while junior partners start at 1.5 million yuan. The firm is reportedly considering significant staff cuts in response to financial pressures.
In recent months, Chinese financial institutions have been cutting senior staff pay as part of a government initiative promoting “common prosperity.” PwC, however, is one of the few international firms facing such steep cuts. Despite the challenges, PwC remains a prominent player in China’s auditing, consulting, and tax services sector.
Over the years, PwC has established a strong presence in China, with its onshore arm generating revenues of over $1 billion in 2022. The firm’s long-standing relationship with Evergrande came to an end in early 2023 as the company faced liquidation. Several Chinese firms have also dropped PwC as their auditor in recent months.
As China’s economy continues to evolve, PwC will need to navigate new challenges and opportunities to maintain its position as a leading player in the country’s financial services industry.
($1 = 7.2578 Chinese yuan renminbi)