Foreign Powerhouses Still Prefer To Set Up Business In China Among Other Asian Nations
China is certainly one of the largest economies in the world. It is also home to a population of approximately 1.4 billion inhabitants. The nation proves to be a promising business environment for any investor. As it grows stronger as an economic powerhouse, China has easily surpassed Japan and even the UK in the export market. Here are the reasons why it is a good idea for foreigners to set up business in China:
Thanks to China’s close proximity to other emerging economies like India, investors who set up business in China will gain access to markets not just in China, but in the neighboring countries which China has built close business relations with, exponentially expanding their business potential.
A Rising Middle Class
There’s a growing demand for sophisticated goods and services by China’s rising middle class. This makes easier for proprietors to gain access to the increasingly competitive and futuristic Chinese technology, research and science.
Despite the rise in average wages in China in recent years, labor costs are still lower compared to other Western countries. It just means labor still remains affordable for international investors.
An Excellent Destination for Manufacturing Businesses
Reduced operations costs and cheap equipment, raw materials, and supplies have made China an ideal location forming manufacturing businesses. Local Chinese companies will also enjoy a huge import duty concession from the Government. The ones who benefit the most are those who import equipment and goods from other countries.
Beneficial Perks in The Industrial Development Zones
Setting up a business in the over 50 available Export Processing Zones and more than 100 Industrial Development Zones certainly has its benefits. These include access to excellent infrastructure and better transportation. These zones also provide investors with the following:
- considerably lower corporate income taxes and tax holidays
- subsidized custom duties and various tax credits and incentives
- 24-hour customs clearance service
Because of its large population, setting up a business in China brings with it the benefit of gaining access to a considerably large pool of trained and qualified individuals who will be more than capable of filling the necessary roles within a company.
Other Perks and Benefits to Setting Up a Business in China
What other benefits could you get when you set up business in China? Because by doing so, as an investor you will gain access to various sector-specific incentives and grants which the government has provided to assist start-ups and get them off to a great start.
Investors will be able to leverage the availability of a massive service industry with a myriad of shipping agents, banks and financial institutions. They also stand to benefit from more than 100 double taxation avoidance treaties that come with setting up business in China. This can help minimize withholding taxes on dividends remitted abroad.