Since 2010, China has shot up to become the second-largest economy based on nominal GDP that totaled US$15.66 trillion by 2020. This is considered a surprise by many people because the country has been rather conservative and slow in opening the country to the global economy. Well, things are changing, and the country is now a hub for international business. For example, the country’s foreign direct investment inflow hit $163 billion in 2020, which was way higher compared to $134 billion in the US.
As you can see, China is one of the high potential jurisdictions, and no entrepreneur wants to be left behind. So, if you are yet to make up your mind on the preferred offshore jurisdiction, China is one option that will never disappoint. In this post, we will list three surprising benefits of incorporating your business in China.
Favorable Policies
Over the last about 30 years, the Chinese government has been working on installing pro-business policies for both local and international investors. The goal is to help spur growth and push the economy to the next level. For example, the government has been crafting strategies to assist people to incubate their ideas, support innovation, and provide subsidies to entrepreneurs.
Taxation is another area that China has been using to help attract and promote business growth in the country. For example, the inland regions enjoy lower tax rates for offshore businesses compared to the coastal areas. Because of this incentive, a lot of foreign companies now prefer inland areas, such as Chogging and Chengdu.
Stability
One of the reasons why China has managed to grow steadily is political, social, and economic stability. The stability helps to guarantee a healthy business environment for both foreign and local businesses to compete. Most investors indicate that they are able to predict the future, which is crucial for product development, marketing, and raising additional funds from investors. Because of the stability, business-crippling occurrences, such as hyperinflation, are very rare in the country.
Abundance of Talents
One of the things you will notice after opening a business in China is that the country has an ample supply of young professionals who are both young and talented. Every year, universities are releasing millions of skilled workforce that you can tap to work in your company. Furthermore, the country has made it easier for Chinese studying abroad to come back and help their economy to grow. So, whether your company is in the tech industry or manufacturing, you can rest assured of getting a skilled workforce to implement your policies.
Work with an Agency to Take Advantage of the Chinese Business Environment
Now that you know about the unique benefits of taking your business to China, the first step is incorporating it. However, this is never easy because the process requires you to deal with multiple departments. This is why you should consider seeking the assistance of an expert agency. Because they have been in the Chinese business environment for years, it will be easy for them to tell you the strategies that work and those that do not. Here are other benefits of working with experts to establish your business in China:
- Helping you to craft strategies for entry into the Chinese market.
- Bookkeeping and filing tax returns.
- Payroll management.
- Exploring opportunities for growth both in China and the Far East.
Expanding to China is one of the ideas that can help your business grow into a multinational. Make sure to work with an agency to identify and take advantage of all the surprising benefits we have listed above. Remember to craft and adopt strategies that can help your business to overcome competition and grow beyond the Far East
Interesting Related Article: “Asia Revisited – How to continue managing operations in Asia Post-COVID-19“
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