China is one of the leading world’s economies that attract foreign investment from various countries. For the period January to September 2018,
China’s FDI amounted to USD 91.77 billion. Compared to last year’s FDI, China’s FDI increased by 8 percent. This makes the Chinese market highly attractive to foreign investment.
There are multiple factors that attract investors to this lucrative market.
Capital Availability
Back in 2000, China overtook the USA as the leading recipient of foreign capital. Economic conditions are getting better around the world. This has contributed to large amount of investable capital. Part of this capital is used as FDI. Investors are looking for emerging economies that are testing out new products and services.
Mature Resources
India and China often contest for the same FDI, but China takes lead due to its mature infrastructure, technological development and skilled human resources. Better roads, ports and airports have made China accessible to the world.
The country is continuously testing new technologies to reduce operational cost and its human resource is specializing in various business aspects. Maturity of these elements has considerably reduced the transaction cost of a Chinese company. Foreign companies can easily set up and reap benefits from these readily-available Chinese resources.
Regulatory Environment
Chinese recently signed a WTO agreement to open their economy to foreign investment in 2001. This means that foreign companies can operate in China without government intervention. The government has eased many of its policies and registration requirement to encourage FDIs.
Free-Trade Zones
Trade zones are specifically created to attract foreign investment. China has multiple trade zones in various states and sectors. Trade zone offers easy access to Chinese market, lower tax rate and capital requirements, favourable treatments, ease of entry and exit and subsidies. Here is a list of some major Chinese trade zones:
1.Chongqing Free Trade Zone
2.Fujian Free Trade Zone
3.Guangdong Free Trade Zone
4.Henan Free Trade Zone
5.Hubei Free Trade Zone
6.Liaoning Free Trade Zone
7.Shaanxi Free Trade Zone
8.Shanghai Free Trade Zone
9.Sichuan Free Trade Zone
10.Tianjin Free Trade Zone
Business China can help you make the right investment decision. Our experts know all the factors to make the registration process simple and convenient. So, whether you want to set up a WFOE or a Representative Office, we can help you out with all your business endeavors.
Our experts are fluent in English; there is no need to worry about the language barrier. We facilitate you every step of the registration process. Just email us your business plan and let the process begin.
Along with providing assistance in the registration and incorporation process, we also offer premium accounting and company management services to all our clients.
Call +86-020-2917 9715 to make your Chinese company a huge success.
