What industrial investments can foreign companies in Shanghai get involved in?

Many foreign companies are trying to sell domestic or foreign products in the active Chinese market. Although foreign companies, in principle, are banned from pursuing pure sales or trade activities in China for some time after China’s accession to the WTO, some astute foreign investors have established sales and trading companies in various regions of China and seized market opportunities through effective and lawful approaches.

Registering logistics and warehousing companies

With the rapid development of China’s economy, the earliest domestic logistics and warehousing service systems have been unable to meet the requirements of modern enterprises for logistics and warehousing. China’s demand for efficient, advanced and modern logistics and warehousing services is increasingly prosperous, and the contradiction between supply and demand shows that the market is huge and the space is wide.

However, China still has relatively serious restrictions and uncertainties on foreign companies investing in this business. Therefore, foreign companies must formulate market entry strategies that take into account long-term growth and short-term profits.

Registering production and processing enterprises

This has always been an industry that the Chinese government encourages foreign investment. From the perspective of policies and regulations, market entry barriers are quite low. However, due to the vast geographical area in China, regional differences in culture and market development, as well as the huge operational cost, the location selection has become a key decision-making factor for these enterprises. It is a very large and arduous project for foreign investors to make location selection decisions in China. Therefore, it is advisable to hire a professional investment consulting company to analyze and make the best plan.

Registering real estate companies

Today’s real estate services are changing rapidly in China, especially in large and medium-sized cities such as Shanghai and Beijing. Foreign companies can carry out real estate agency services in China under the conditions of individual case approval. However, obtaining business licenses successfully requires more complicated approval procedures.

Registering financial and investment service companies

After China’s accession to the WTO, China has been gradually opening its banking and financial service markets to foreign companies, including asset management, fund business, securities market, venture capital, wealth management, banking and insurance services. In this field, new regulations and new policies emerge one after another. It can be said that opportunities and risks coexist. Effective market entry strategies have become the key to the success of investment decisions.

Registering technology development and technical service companies

In the field of high-tech products, China’s development and demand are higher than those of other countries and regions in the world. The growth of application software and its technical services is even more rapid. Various development zones and special zones in China have successively introduced policies to encourage foreign investors to invest in high-tech industries. The forms are various and complex, and the state has also formulated relevant management policies for foreign investment in this industry. High-tech companies must successfully comprehend and apply complex policies and regulations, making it an important guarantee for enterprises to gain competitive advantage in China.

Registering consulting service network companies

The consulting industry has a wide scope and rapid innovation. Although China’s regulations on foreign companies’ access into the consulting industry are relatively complicated, many foreign companies have established consulting firms through effective and legal channels and methods. These consulting areas include market research, investment consulting, financial and accounting consulting, technical consulting, engineering consulting, real estate consulting, and environmental consulting.

Registering service centers

In order to better support the sales of products in the Chinese market, high-quality and efficient after-sales service has become an important competitive advantage, especially for companies with long product lines or providing complex equipment. Except in certain special regions, it is difficult for foreign-owned enterprises to set up independent after-sales service centers and accessories centers in China. In addition, setting up service centers in China also faces many technical difficulties, especially the inventory management of imported spare parts.

Registering holding companies, regional headquarters, and offices in Shanghai

For those companies that have invested in the establishment of several factories and enterprises in China, setting up a holding company or regional headquarters can provide a new platform for optimizing the use of corporate resources for marketing, operations, and financial management. In addition, the holding company may be able to have special operating rights that cannot be obtained by common foreign-funded enterprises, such as sales rights of agents. Therefore, it has a special competitive advantage.

Registering other franchise companies

After special approval, foreign investors can enter other business areas in China, such as commercial retail, aviation, shipping, freight forwarding, construction, venture capital, securities market and financial engineering. However, the circumstances of each case are very different.

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