Substantially Ease Market Access:
China is encouraging global enterprises, investors, SMEs, and entrepreneurs doing businesses in Chinese market with the opening up of multiple policy initiatives in areas of finance, banking, securities, insurance, assets management, and manufacturing industry. China government has completed the revision of the negative list for foreign investment and fully implement the management system of pre- establishment national treatment negative list so as to create a more attractive investment and business environment.
Relaxing access to foreign investment in the domestic market will also improve the competitiveness and total factor productivity of domestic enterprises, and increase the confidence and success rate of foreign investment enterprises.
The scale of foreign investment in China plays an important role in the global transnational investment scale, and despite the current complex and challenging economic conditions, the Chinese market is still a strong attraction. In recent years, the Chinese government attaches great importance to the use of foreign capital. With the introduction and further implementation of relevant policies, it is believed that foreign investors will enjoy a more equal business environment and better policy treatment in China.
As the world’s second largest economy, China has contributed more than 30 percent to world economic growth for many years in a row. In the coming five years, China is expected to import US $8 trillion worth of goods and make 700 million outbound visits.
For foreign companies and brands, the Chinese market has a strong appeal, not only because of the growing of Chinese people’s purchasing power, but also because the Chinese government has been displayed in promoting foreign trade and economic cooperation in the long-term perspective, including political, social security provides a long-term, stable, and at the policy level ongoing reform process itself. For global producers, China has a consumption and investment market of nearly 1.4 billion people. The government is translating its determination and determination to support trade liberalization and investment facilitation into actions and striving to open wider to the outside world.
China is now the world’s largest middle-income group with about 400 million people. China has become the world’s largest importer of agricultural products, accounting for 10% of the global trade in agricultural products, and the annual trade deficit of agricultural products is between 40 billion and 50 billion us dollars. China is also the largest automobile market in the world. In 2017, the production and sales volume of automobiles reached 29,015,400 and 28.878,900, respectively, with year-on-year growth of 3.19% and 3.04%, ranking first in the world for 9 consecutive years.
In addition to traditional industries, facing the new round of technological revolution and industrial transformation in the world, the number of innovative enterprises in China has now ranked second in the world and entered the top 20 of the world intellectual property organization’s global innovation index for the first time. As China continues to make efforts in clean energy, electric vehicles, batteries, artificial intelligence and other fields in the future, it is expected that foreign capital and foreign enterprises will find the best development space in China.
In the five years from 2017 to 2021, China will import us $8 trillion of goods, attract US $600 billion of foreign investment, and invest us $750 billion overseas, and the number of outbound tourists will exceed 700 million, according to the plan announced by President xi jinping at the world economy BBS in davos last year. If the first China international import expo will set up a platform for foreign investors to directly enter the Chinese consumer market, then China will also be an indispensable wealth market for foreign investors.
Reforming of Fiscal Policies:
The hard and practical measures to promote high-quality economic development and cope with downward economic pressure can reduce the burden on enterprises, stimulate the vitality of micro-entities, and play a major role in optimizing the tax system and improving the income distribution pattern. China tax administrative office introduced targeted tax cuts to promote employment, accelerate innovation, ensure people’s well-being, and open up to the outside world, in line with the objectives of macroeconomic regulation.
In recent years, China has introduced the most aggressive policy to cut taxes and fees. In the first half of this year alone, a total of 1170.9 billion yuan of tax cuts and fees were added. At the same time, China will implement tax breaks and exemptions for small and micro businesses. And will significantly relax the standards for small and low-margin enterprises that can enjoy preferential corporate income tax treatment, and increase preferential income tax treatment to cover more than 95 percent of enterprises that pay taxes, among them, the private economic market subject tax cuts accounted for 88%.
In addition, we implemented the policy of special additional deductions for individual income tax, reduced the burden of social security contributions on enterprises, reduced or exempted certain administrative fees, and other concrete measures to ensure the implementation of tax cuts and fee reductions.
From the implementation of the special additional deduction policy for individual income tax to the launch of the reform of value-added tax, tax cuts for small and micro businesses to reductions in social security costs. The implementation of a series of tax and fee reduction policies has significantly reduced the tax burden on more taxpayers, stabilized and boosted the confidence of tens of millions of market players, and further stimulated and unleashed market vitality. In the process of implementing larger tax cuts and fee reductions, local governments took active measures in light of their actual conditions, implemented the central government’s decisions and plans, and deepened tax cuts and fee reductions.
Innovative Country, China:
There is still a huge technological gap between China and countries at the forefront of global science and technology. Given the goal set in the report of the 19th national congress of the communist party of China ( CPC ) to become a leading innovation-oriented country by 2035, it is expected that further concrete policy measures will be taken to accelerate industrial upgrading.
Creating a level playing field, improving the quality of education and making it easier for start-ups to get financing. Encourage the enterprising spirit that is deeply rooted in Chinese society, and implement policy measures to help foster innovation and increase productivity to move China up the value chain. Above all, the government can create a level playing field for all businesses in terms of regulation and ease of doing business, with a short-term focus on environmental policies, industrial policies related to subsidies and capacity cooperation, and financial inclusion for private enterprises.
The state council’s recent decision to use financial measures to support small and medium-sized enterprises is a welcome step in this direction. Further measures are expected to cut taxes and fees to encourage investment and promote industrial upgrading.
High-quality human capital is a core element of innovation and future productivity growth. Special efforts should be made to continue to improve the quality of the workforce and increase the number of graduates in basic sciences and mathematics. Creating a talent pool with high cognitive ability and the ability to operate, absorb and innovate new technologies is the foundation of technology upgrading.
International Expansion in China:
Our business service teams are familiar with the policies and regulations, understand the government for examination and approval of the concrete operation process, since 2003 committed to establish a professional and efficient investment promotion service system and the enterprise registration, inspection, change, tax consultancy, immigration policy, HR services, such as the enterprise outsourcing service system, integration of superior resources, from all walks of life to cooperate with government departments and provide high quality services to foreign investors and all kinds of enterprises.
SMEsChina Services for Market Access Strategy:
- To provide consulting services on investment plan design for customers who are interested in investing in China.
- Determination of investment forms, wholly foreign-owned, sino-foreign joint venture, sino-foreign cooperation, stock transfer and merger and acquisition.
Business model comparison, such as permanent representative office, trading companies, logistics companies, consulting companies, production companies, service companies.
- Policy and regulation consultation, investment regulation, policy consultation, preferential policy interpretation and comparison, tax consultation, customs policy consultation and import equipment exemption regulations.
- Project site selection: according to the specific situation of the project, provide appropriate site selection Suggestions, arrange site visits, and promote the settlement.
- Organizational design of new company, recommended corporate management structure and composition of board members.
- Investment cost plan, includes local land, office space, plant, utilities, gas, communications, and payroll budget.
- Industry market research, our research team has been focusing on the research of fast moving consumer goods, mobile communication products, medical and healthcare products, household appliances durable products, automobiles and related products for many years.
- Market strategy decision-making consultant — we have many senior domestic first-generation enterprise consultant experts, as well as professional researchers who are familiar with local operation and different industry backgrounds to give you advice and suggestions.
- Credit analysis, analyze the partners, competitors and litigation records of enterprises to be investigated, and digest the data in a professional mode to make scientific decisions.