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Foreign Investments in China

Foreign Investments in China

Updated on Tuesday 19th April 2016

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Foreign_Investments_in_China.jpgChina is becoming the world’s leading destination for foreign investments. The rapid development means that the country will continue to attract foreign capital and will maintain its position as one of the world’s largest economies. Foreign investments in China are slowly moving from manufacturing toward services and from labor-oriented jobs to tech-intensive ones.
 
Our Chinese law firm can help you develop the best investment strategy and an efficient business plan.
 

The number one destination for foreign investments

 
According to a report issued by the United Nations Conference on Trade and Development (UNCTAD), China has surpassed the United States and has become the number one destination for foreign investments in 2014. The country is also at the top in the list of economies that are attractive to multinational companies. Many of them have opened branches or subsidiaries in China in recent years. 
 
China’s potential is focused on a few key elements, among which:
 
- an impressive internal market;
- a fast growing market;
- affordable labor costs for investors;
- the development of new provinces and thus new opportunities for investments.
 
All of these factors are important contributors to the amount of foreign capital entering the country. However, investing in China can be a little bit complicated for foreign investors who fear the lack of transparency or the language barrier. These can all be put aside with the help of a team of lawyers in China who can help you navigate through any legal or business issue you may encounter.
 

Investment opportunities in China

 
The main investment sectors in China are:
 
- manufacturing;
- real estate;
- business services;
- transport;
- telecommunications;
- wholesale and retail trade.
 
Some of the most important foreign investments in China come from countries like: Hong Kong, Singapore, Taiwan, Japan, South Korea, USA, Germany and the UK.
 
The preferred business form is the wholly foreign owner enterprise, as it allows for complete foreign ownership. China has also signed double tax treaties with other countries and bilateral agreements for investments.
 
Investments in areas like technology, equipment production and the services sectors are among the most encouraged by the Chinese Government. If you are interested in more details about opportunities for foreign investments in China, please contact our Chinese law firm.
 
 

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