Generally, the 2015 version of Catalogue of Industries for Foreign Direct Investment highlights a trend according to which, Chinese market is continuously opening up to foreign companies. In comparison to the 2011 catalogue, the 2015 version emphasizes the fact that the scope of permitted industries has been enlarged. Additionally, the 2015 catalogue also removes 41 industries from the restricted category (such as some mining industries - diamonds, high-aluminum fireclay, barites, phosphorus mines, celestite and szaibelyite, real estate, cross-border transportations) and it is updated for 2021.
Other alterations are related to the encouraged industries by Chinese government - more and more foreign entrepreneurs are emboldened to invest in modern agriculture, environment friendly industries, high technology, new cleaning energy industries, modern service industry. Our Chinese company formation agents can offer details if you wish, as a foreign investor, to benefit of proper legal assistance when making an investment in China.
The category of prohibited industries usually covers the ones that may affect national policy or public security, such as manufacture of tobacco products, gambling, domestic courier service, on-line publishing and Chinese law consultation service (except for those in relation to the impact of Chinese legal environment).
Top 10 business benefits in China
China is a representative business destination and on top of the list of many foreign entrepreneurs who want to expand their portfolios and to enjoy the profits. We present you 10 business benefits to consider when deciding on investments in China
1. Access to a wide range of markets
China has worldwide connections that facilitate the business for local and international entrepreneurs. The country signed an important number of agreements to ease the trading operations in a fast and reliable manner. The authorities continue to develop the business climate and to improve the existing relations.
2. Simple company formation procedures
Those who want to invest in China should know that the company registration has been simplified in recent years. The incorporation of a business is straightforward and beneficial to overseas entrepreneurs who want to speed up the process and start the activities fast. WFOE in China is the most popular business structure available that comes with many benefits, so if you would like to invest in China, you can consider this structure.
3. China is quite competitive
China surpassed many emerging countries in terms of development and business growth. It is a known fact that entrepreneurs pay attention to the entire climate, where the infrastructure is important. This is a solid benefit offered by China to international investors, alongside workforce, business incentives and more.
4. Appealing start-up costs in China
Compared to other large business destinations in the world, China provides attractive start-up costs to encourage foreign investors commence their operations in this part of China. It is important to make a correct business plan and to control the expenses right from the start.
5. China is stable from an economic and political point of view
Another important aspect considered by an investor refers to the stability of a country. In this direction, the steadiness and strength of the economy and political environment of China will be quite representative when it comes to the country’s advantages. China
provides such stability and encourages the attraction of FDIs.
6. The key sectors of China
Manufacturing, IT, tourism, healthcare, engineering, real estate, wholesale and retail are representative sectors in China that host a large number of local and international companies. The reinvested profits lead to other business encouragements that provide stability and confidence in the business field. International entrepreneurs do appreciate the support in China’s main sectors of interest.
7. Representative numbers of China
China is a powerful country from an economic point of view and the following figures sustain the fact that the business direction of China is beneficial:
• The gross domestic product in 2019 - Nearly USD 23.4 trillion.
• GDP per capita – around USD 8,041.
• The unemployment rate in China – around 3.64%.
• The 2020 Doing Business report – China ranks 31st out of 190 worldwide economies.
8. A solid support offered by the experienced workforce
The workforce is important to international entrepreneurs in China. According to latest statistics, China has a young and skilled workforce who activate in the main sectors of the country. Being cost-effective is another big plus for entrepreneurs. You can consider this advantage if you want to invest in China.
9. China’s special economic zones
China has numerous special economic zones that offer a wide range of business benefits. Among these, the ones related to taxation are highly important for both local and foreign investors in China
10. China is leading the science and technology sector
The developments registered in the science and technology sector are well-known on an international scale. The country is quite representative from this point of view and provides lots of chances to startups and small businesses that can grow quite fast.
Choosing our agents in China
Doing business in China
is not complicated if you know your market and understand the direction and targets. In this matter, you can benefit from the support of an experienced team of company formation agents in China
. Our specialists focus on professionalism, transparency, confidence, and proficiency when working with clients. We can help in company formation, tax registration, tax planning, licenses and permits, accounting, business consulting, and many more. If you would like to invest in China
, you should discuss all the aspects with one of our agents and benefit from complete support and guidance.