Country Information

 

 

   

General

WTO commitments

Government

Investing and doing business in China

Economic indicators

Accessing and entering China

Reforms and national development

Province; autonomous region; city snapshots

 

Accessing and Entering China
 

Why access China?

  • All roads lead to China - the economic giant has awakened.

  • World-wide focus in accessing the China market – enter NOW.

  • No company would be considered global unless they are present in China.

  • It is the world’s biggest market and center of economic growth in the new century - rapidly growing affluence and huge demand for products, services and know-how.

  • It is the world’s 2nd largest economy based on income parity and is forecast to surpass US in 2025 as the world’s largest economy.

  • Annual GDP growth of ~8% for last decade and forecast to continue for decades to come.

  • Accession to WTO will add ~4% (USD25 billion) to the annual GDP in next 2 decades.
    Commitment to WTO and global integration will improve business environment and market access and further attract investment to China

  • Continuing reform and improvement in human resources and economic fundamentals will have a multiplying effect on productivity and economic growth.

  • Government commitment to stability and provision of favorable business environment and investment climate.

  • Economic globalization, regional integration and continuing economic liberalization from a planned to a market economy presents immense opportunities for trade, investment and co-operation for all large and SMEs with much untapped and unexplored potential and opportunities.

  • Continuing low external debt, trade surplus and huge foreign exchange reserve.

  • China will be the world center for manufacturing in the new millennium.

  • Comparative advantage in production costs.
    In China inputs such as land, and wages are relatively cheaper.

  • A market of 1.3 billion consumers with high saving rates.
    Large potential market size and increasing disposable income.
    Between 1990 and 1999, the following average annual increases were recorded:
    - urban per capita disposable income: 16.25%.
    - workers salaries: 16.33%.
    - consumer spending: 15.33%.

    (China Yearbook of Statistics)

  • World’s No. 1 FDI destination surpassing US in 2002.
    Investors have top confidence in China as a destination of Foreign Direct Investment.
     

AT Kearney FDI Confidence Index 2004

Rank

Country

Score

1

China

2.03

2

USA

1.45

3

India

1.40

4

United Kingdom

1.25

5

Germany

1.17

6

France

1.03

7

Australia

1.00

8

Hong Kong

0.99

9

Italy

0.98

10

Japan

0.97

 


Key requirements for business success in China
 


China is a diverse market with different geographical characteristics (social, human, political and business practices) and levels of development – It is more like the European Union. 

 

The following are extracts from AgrifoodAsia's "HOW TO MAKE BUSINESS HAPPEN IN CHINA"
training program:

Major Keys Common to Sustainable Business Success in China

 

  • In-depth China knowledge and analytical information on business sectors

  • Good linkages and strong relationships

  • Capability to access market structures, mechanisms and channels

  • China business expertise and individual skills to make business happen

     

  • Partnerships

    • Long term partnerships based on honesty, commitment and regular maintenance

    • Business based on mutual benefit and win-win

    • Understand the relationship drivers and have a clear understanding of expectations
       

  • Political Relationship

    • Building high level relationships needs intermediates and relationship maintenance

    • Understand relationship drivers, expectations and potential grey areas
       

  • Market Channels

    • Understand where these channels lead to and who are the gate keepers

    • Constant channel maintenance

The above are costly processes that require a range of skills, resources, time and patience to construct and maintain.  Seek assistance/partnerships from China experts to identify appropriate and reliable partners and channels for structural development.



  • Acquire and analyze knowledge and information about China

  • Develop insights into China business practices, laws and regulations

  • Learn how to negotiate and do deals in China

  • Understand the business processes of China

  • Interacting with different levels of people from government, business and academia who are keys to your business success

  • Different sets of skill are required for business dealings with different levels and fields of business   

  • Business maintenance

  • Networking

To expedite the skill acquisition process, take up quality training programs on how to DO and MAKE business happen in China, visit China and talk to experts and experienced business people familiar with China.



  • IP + trade marks + patent + copyright + standards, testing and certification

  • Counterfeiting

  • Chinese contracts, agreements and payment

  • Dispute settlement and judicial system – courts or arbitration and enforcement

  • Policy interpretation, implementation and enforcement vary from place to place

  • Artificial barriers for trade, investment and co-operation

  • Transparency and regionalism

  • Unfair competition and data reliability

  • Establishing a presence - VO or RO or CJV or EJV or WFOE

  •  Marketing and distribution structures and systems

  • Investment environments and polices

  • Business scopes and registered capital requirements

  • Implications of China transition, WTO accession and Free Trade Agreements

  • Foreign exchange laws and regulations for foreign companies

  • Other artificial barriers

  • Where to seek help

Familiarize yourself with the various business issues that may arise and have contingency plans to deal with them effectively.


 


Development zones

 

National Economic & Technological Development Zones (ETDZ)

Beijing

Kunshan

Shihezi

Changchun

Lanzhou

 Suzhou

Changsha

Lhasa

Taiyuan

Chengdu

Lianyungang

Tianjin

Chongqing

Nanchang

Urumchi

Dalian

Nanjing

Weihai

Dayawan

Nanning 

Wenzhou

Dongshan

Nantong

Wuhan

Fuqing Rongqiao

Ningbo

Wuhu

Fuzhou

Ningbo Daxiedao

Xi an

Guangzhou

Qingdao

Xiamen Haicang

Guangzhou Nansha

Qinhuangdao

 Xiaoshan

Guiyang

Shanghai Caohejing

Xining

Hainan Yangpu

Shanghai Hongqiao

Yantai

Hangzhou

Shanghai Lujiazui

Yinchuan

Harbin

Shanghai Minhang

Yingkou

Hefei

Shanghai Pudong

Zhanjiang

Huhhot

Shanghai Jinqiao

Zhengzhou

Kunming

Shenyang

 


N
ational ETDZs were established, initially in coastal cities to capitalize on the success of  the Special Economic Zones. The Chinese Ministry of Commerce has described ETDZs as "Windows and bases" in the fields of opening-up, capital attraction, export enlargement, hi-tech development and regional economy promotion" which have now become "a powerful engine in developing regional economy and plays an important role in adjusting regional economy and industry structure". ETDZs have become hot places for foreign investment and main forces in export.
 

National Export Processing Zones (EPZ)

Beijing Tianzhu

Huichun EPZ

Tianjin EPZ

Chengdu EPZ

Kunshan EPZ

Weihai EPZ

Dalian EPZ

Shanghai Songjiang

Xiamen Xinglin

 Guangzhou EPZ

Shenzhen EPZ

Wuhan EPZ

Hangzhou EPZ

Suzhou EPZ

Yantai EPZ

Begun in 2000, EPZs are special enclosed areas supervised by customs. Their aims are to stimulate exports, improve the management of export trade, and more effective utilization of foreign capital. Enterprises with in EPZs qualify for preferential policies.
 

National Free Trade Zones (FTZ)

 Dalian FTZ Qingdao FTZ TianjinFTZ
 Fuzhou FTZ Shanghai Waigaoqiao FTZ Xiamen Xiangyu FTZ
Haikou FTZ Shantou FTZ Zhangjiagang FTZ
Ningbo FTZ Shenzhen FTZ Zhuhai FTZ

FTZs are specialized areas for international trade, re-export, and bonded operations, similar to free trade zones elsewhere in the world.