China says its policy on attracting foreign investment will remain unchanged and will continue to improve the climate for multinationals.
Foreign investment is not over developed. Attracting foreign investment is our basic policy in the opening up drive, and we will continue to encourage foreign investment and improve the environment for foreign sponsored companies." -China’s Assistant Minister of Commerce, Chen Jian.
Up till the end of May 2005, more than 500,000 foreign companies had set up their offices in China, with a total investment surpassing $580 billion. After two-plus decades of continual challenges, China has finally established the structure of a socialist market economy, adopting public ownership at the core. China's old planned economic structure has continually given way to a newer free enterprise system.
It’s certainly no secret about how many multi-national corporations have relocated to China to take advantage of the lower costs of property and labor. But don’t just take our word for it; look for the little label that adorns many an item on the store shelves and odds are it’ll read "Made in China."
In many Asian countries, wages are only a fraction of those in developed economies. China and other Asian exporters are increasingly commanding a greater share of the world's business. The United States and Europe, for example, continue to manufacture quality high-end goods, but China can produce virtually every low-end item for just pennies on the dollar.
Global Expansion
Global multinationals (MNCs) continue to build major manufacturing presences in China because unit production costs are simply much cheaper compared to factories in the West. This secular event will last for decades to come until China and other regional manufacturing centers eventually lose their export competitiveness.
The introduction of large amounts of foreign capital has quickened the process of industrial modernization in China. The establishment of large numbers of jointly ventured and exclusively foreign-funded enterprises has brought in an unprecedented amount of capital along with advanced equipment and management expertise to modern day measures. This greatly enhances the technological and management level of China's industrial enterprises as well.
The end result sees China's manufactured goods approaching and even surpassing many of the world’s most advanced producers.
China is now among the world’s largest trading nations and a major importer and exporter of goods and services. It has become the world’s second largest recipient of Foreign Direct Investment (FDI) with more than $60 billion recorded at the end of 2005 while its economy had previously averaged gains of 10% and reached 10.5% through 2006, according to the National Bureau of Statistics. Are there business opportunities in China? As far as the eye can see…
China will continue to seek means for importing the necessary resources, new technologies and key technical equipment to continue its forward progress in the future and as a result will continue to open the door for foreign investment and trade.
In addition, the central government has also introduced tariff-free and VAT-exemption imports of capital equipment for projects within the hi-tech and priority sectors such as energy, agriculture, transport, infrastructure, production of raw materials, and tertiary industries, as well as in the pillar industries. These moves are targeted to attract quality overseas investment, introduce new technologies and technical skill to rationalize the country's industrial structure.
Set Up Your Business
China’s markets have indeed opened up and welcomed foreign businesses, but the rules and regulations can still be daunting and can often change at a moment’s notice. Things are easing up, but even simple matters can still be difficult—getting licenses, hiring employees and paying taxes, among others. Even when you think you’ve got everything set up and ready to go, something can go wrong when agreements are put into practice.
What you need to know!
In spite of the impressive influx of foreign expansion into China, starting a business there is not easy. You need a local lawyer and consultant to work through often complex procedural matters, the least of which involve waves of paperwork and translation assistance. Depending on whether your business proposal is allowed or not, the government will start by assessing your plan and confirm that you have enough investment capital to start your business. Learn more...
*For in-depth coverage on doing business in China, understanding the market, and a variety of options and valuable resources, click the image below to view our newly published report:
Our Services
Developmental Projects: Promoting and Selling. We present information on developmental property available in strategic locations of China. Developers are encouraged to explore a range of projects that may include anything from building residential complexes to shopping centers, industrial parks to amusement parks, research and development, medical facilities, manufacturing, and more. We will provide the information you'll need and prepare both parties from introduction to completion. We bring the deals to you and bridge the gap for both sides.
Global Connections: We provide US- & China-based professional assistance for your business needs. We can serve as a sourcing consultant, drawing on local resources and locating reliable new sources to acquire the information you need to move forward. We understand the complexities for doing business in China, and can provide the necessary services for foreign companies to function successfully. In addition to our services for foreign companies, we also help local Chinese businesses extend their reach on a global level.
Travel Resources: Interested to visit or relocate to China? Here is where you'll find useful resources in areas of travel & tourism, plus relocation services and employment listings. Our local network of service providers are available to assist you with travel options or relocation solutions, whether for temporary or long-term housing. Mapping out the ideal plan for extended travel or setting up shop overseas can be a daunting task. We can help smooth your transition.
Contact Us
Have you wanted to develop a presence in China and tap into its booming economy and bright future? We can assist you. Here at Vinnie's World, China is one of our primary areas of focus and between our growing local team and network of professionals, we can assist you to establish or extend your business operations in China and guide you through the entry process.
