investing in china

Whether you are an investor with an interest in manufacturing, education, or technology, one fact about China is that it is overflowing with potential. From its population to a stable economy, you have a jurisdiction to count on for the growth of your offshore investment. So, once you have registered a company in China and adopted the right strategies, the chances for growing into a regional and global giant are very high. Well, before you expand our business to China, here are some important economic facts to know. 

A Brief History 

To understand why China is the best jurisdiction for business, it is important to cast your nets deeper and understand its history. Following Mao Zedong’s death in 1976, the next leader, Deng Xiaoping, became a crucial pillar of the current impressive growth. For example, he launched the official modernization of defense, industry, agriculture, and science and technology, which later became the force pushing the Chinese economy higher and higher. 

Unlike in the previous regimes, Deng’s focus was to reduce government control, which started by opening the country to foreign investors. Later in the early 1990s, Jiang Zemin, the next leader after Deng, continued with the modernization agenda, resulting in the privatization of state-owned firms and promotion of foreign investments. By 2020, the Chinese economy had taken a market-oriented approach, with the following numbers reflecting its position on the globe: 

  • 91% of the State-Owned Enterprises in China made it to the 2020 Fortune Global 500 companies. 
  • Since 2014, China has become one of the largest economies on the globe. 
  • The nominal GDP for China was $15.66 trillion, according to 2020 estimates. 
  • The population of China was 1,394,015,977 people, according to 2020 estimates. 

Competitiveness 

China has outpaced most of its peers in the Far East and globally in nurturing businesses. This is one of the main reasons why the country has become so attractive to foreign investors. Particularly, China’s administration has focused on developing infrastructures, such as highways, inland container depots (ICDs), roads, bridges, airports, and sea ports, to make the movement of goods and people efficient and cheap. Ultimately, the effect is low cost of operations so that investors are able to enjoy more profits. 

Impressive political and Social Stability 

Recently, you have probably heard of political riots in countries neighboring China and also in the west. However, rarely does that happen in China. The country’s political and economic stability is impressive, making it pretty easy for investors to plan and achieve their long-term goals. With this political and social instability, China has not experienced cases of hyperinflation. 

Register Your Company in China 

These facts indicate that you can count on China to grow your company into a big multinational with a presence in Asia and across the globe. However, you need to start by registering a company in China. You can opt to open a representative office (RO), a joint venture (JV), or a wholly foreign-owned enterprise (WFOE). 

No matter the business formation of choice, the truth is that opening a company in China can be challenging because it involves dealing with multiple government agencies. Therefore, the best method is working with an agency of experts. The professionals have the expertise in helping businesses register fast and start their operations in this high-potential jurisdiction. 

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By Ram Ram