According to the Economic Complexity Index (ECI), China is the largest export economy in the world and the 38th most complex economy. Registering a company in China's trade sector can be a profitable decision since the country had a positive trade balance of 1.1 trillion dollars in 2015. Imports and exports in China are regulated by the provisions of the Commercial Code. Further details about the legislation addressing imports and exports in this country can be provided to you by our lawyers in China.
In terms of imports, China accounted in 2015 for 9.6% of the total global imports with an overall value of 16,473 trillion dollars. Imports in China rely heavily on electronic equipment and electrical machinery, these industries having the fastest growing increase in value among the top ten import categories. The trading activity of Chinese companies operating in the mineral fuels sector lead to an improvement of the import purchases.
Other Chinese imports which registered a fast growth in 2016, compared to the previous year, include: computers (9.3%), optical, technical and medical equipment (5.8%), vehicles (4.5%), organic chemicals (2.8%) and copper (2.1%). According to the statistics of the International Monetary Fund, in 2016, China`s exports accounted for 10% of the total Chinese economic output. Exports in China are delivered to other Asian countries (49.8%) and to North American importers.
The IT companies in China exported electrical machinery and equipment (26.3%) and ranked first in China's top ten export products. Other products exported by China include: furniture, bedding and prefab buildings (4.2%), clothing and accessories (3.4%), plastics and plastic articles (3%) and articles of iron or steel (2.5%). Setting up a company in the trade sector can be done with the professional help of our law firm in China.
The local government has gradually liberalized the foreign trading system and reduced administrative barriers to trading in China. According to the Foreign Trade Law, implemented in 2004, all Chinese companies, including foreign owned businesses, can register for trading right.
The main trading requirements for Chinese companies include the following:
- import duties and taxes,
- quota and licensing control,
- customs and quarantine system and product standards.
Imported goods are withheld a basic VAT rate of 17% and a lower rate of 13% is applied to foodstuffs, grains and edible vegetable oils. Starting from 2017, only companies exporting and importing ozone depleting substances and key used mechanical and electronic products are subject to licensing control. A quarantine inspection before customs declaration practice is valid in China's trade industry. The Chinese Customs is the authority in charge with applying import and export tariffs and to examine and inspect goods entering or leaving the country. Please contact our attorneys in China if you need complete information about the trading regulations or the import/export declarations.