China Focus
- Market Focus
- Hong Kong Focus
Why China?
A Railway of Opportunities
Located in eastern Asia on the western shores of the Pacific Ocean, China holds a vast territory endowed with rich resources and diverse products. With a land area of approximately 9.6 million square kilometers, China is the world’s third-largest country territorially. China’s land frontier stretches for 22,800 kilometers, bordering 14 countries; China’s territorial waters border eight countries by sea. The eastern and southern continental coastlines span over 18,000 kilometers, with enclosed sea and near-shore seas exceeding 4.7 million square kilometers in area. More than 7,600 islands of different sizes are scattered across this area, among which Taiwan is the largest, with an area of 35,798 square kilometers.
China is designated one of the world’s largest economies. With an annual GDP growth of more than 9% on average for the previous three decades, the sheer pace and scale of its development had been unprecedented. Despite its slackening growth since 2015, it still manages to boast a healthy growth of 6.5% when pitted against other major global economies. In addition, a cheaper yuan as a result of the recent devaluation helps to lower operating costs in China and enhance the competitiveness of export sales.
Investors and the likes also wait with eager anticipation to jump on board the Shenzhen-Hong Kong Stock Connect train launched in December 2016, which grants overseas investors access to the Shenzhen Stock Exchange whilst allowing mainland brokers to trade stocks in Hong Kong. This adds to the fleet of “through trains” with the first one between Shanghai and Hong Kong introduced in 2014. Further developments that are also being hailed as positive milestones in the liberalisation of China’s capital accounts include the setting up of offshore RMB centres in major financial hubs, such as Hong Kong, Singapore and London, in order to promote the use of the yuan in international trade; and the admittance of the yuan into IMF’s select basket of Special Drawing Rights (SDR) reserve currencies alongside the euro, dollar, pound and yen, which will pave the way for the enshrining of the yuan as an international currency.
China encourages foreign investors to invest in China in accordance with the law. China also protects the legitimate rights and interests of foreign investors and foreign-invested enterprises in accordance with the law. China has always followed the rule of law in utilizing foreign investment.
Massive market size
Efficient transportation network
Sophisticated supply chain infrastructure
Rising innovation capabilities
Sufficient number of high-quality talents
Continuously relaxed market access
Full-fledged foreign investment promotion service system
Abundant special economic areas
China's Market Potential
Consumer Market
China has grown into the world's second-largest consumer market, the largest trader in goods, the second-largest trader in services, the holder of the largest foreign exchange reserves, and the second-largest economy in use of foreign capital.
Contribution to the World Economy
From 2013 to 2018, China contributed an average of 28.1% to global economic growth every year, ranking first in the world. In 2018, China contributed 27.5% of the global economic growth, up 24.4 percentage points from 1978, becoming the world economy’s largest engine for growth.
Middle-Income Population
In 2019, the total population on the Chinese Mainland was 1.4 billion. With the largest middle-income population in the world, China is the world’s most promising consumer market. In the same year, final consumption expenditures contributed to 57.8% of economic growth, 26.6 percentage points higher than gross capital formation.
Role of the Services Sector
Since the 2008 global economic crisis, big changes have taken place in China’s economic structure. In 2015, for the first time, the services sector contributed over 50% to China's GDP. China’s services sector accounted for 54 per cent of gross domestic product (GDP) in 2019. It includes various service industries such as transport services, information services, investment services and health care, as well as arts, entertainment and recreation.
Transformation and Upgrade in Manufacturing Industry
China has established an independent modern industrial system with complete categories of industries, including 41 large categories, 207 medium sectors, and 666 small subsectors, making it the only country covering all industrial categories indexed in the United Nations (UN) International Standard Industrial Classification of All Economic Activities (ISIC).
New Business Types Restructuring Economic Development Model
In recent years, the Internet, big data, and artificial intelligence have been deeply integrated into the real economy. New hotspots like intelligent retail and production capacity sharing are continuously emerging. Technological innovations are nearly non-stop in such fields as mobile communication, the Internet of Things, blockchain, smart wearables, and artificial intelligence, while their application scenarios in traffic, medical services, tourism, and smart city construction are increasingly sophisticated.
CW's China Focus
By keeping abreast of changes and developments in the macro environment and carefully assessing the impact they have on our clients, we are ideally placed to help and guide overseas enterprises in sailing through the mainland Chinese market.
With our presence in Hong Kong, Guangzhou, Shenzhen and Shanghai, we can help you:
- to determine the feasibility of the legal entity structure and establish operations in mainland China;
- to ensure compliance with audit and other assurance requirements;
- to manage tax-related obligations in accordance with local taxation laws, regulations and practices;
- to ensure compliance with local customs and excise laws and regulations;
- to take care of time-consuming business processes, e.g. accounting, payroll and other HR operations.
Our China Consultancy Team, a team of multinational, multilingual and experienced professionals with accounting advisory and consulting capability, offers practical insights to help our clients make better judgement with their investment and expansion plan.
CW's Insights on China
A Concise Guide to Working with Distributors in China
We delve into the dos and don’ts of choosing a distributor in China and the key things you should consider, from contracts to IP protection. You are ready to venture out for your company’s overseas expansion. Green and inexperienced when it comes to the Chinese market, you are however reluctant to jump in at the deep end. Ease, efficiency and cost-effectiveness are your top-of-mind priority. Partnering up with a local distributor is often designated a safe way to test the waters,
Going Green: Environmental Compliance For Companies Operating in China
Although considered a latecomer to global environmental governance by many, China has been catching up by leaps and bounds, whose staunch commitment to the cause is in full evidence. In his video address to the UN General Assembly in 2021, President Xi Jinping reaffirmed China’s determination in striving to peak carbon dioxide emissions before 2030 and achieve carbon neutrality by 2060. Two key documents were subsequently published as part of the “1+N” policy framework, giving concrete shape to the ambitious
Top Digital Marketing Trends You Can’t Miss to Increase Your Presence in China
What are some of the top digital marketing trends that foreign businesses can capture to help them sell to the Chinese market of more than 200 million digital natives? Find out how livestreaming, KOLs, WeChat mini programs, Xiaohongshu and Zhihu can help you increase presence in China.
China Economic Outlook 2023
China’s economy is expected to fare better than in the previous year and achieve a relatively quick and sharp rebound in activity, despite a somewhat sluggish start in the first quarter. The IMF as well as many international investment banks and financial institutions have revised upwards their forecasts for China’s economic growth in 2023.
Guide to Closing a Company in China
While many foreign investors continue to be lured in by China’s wealth of attractive business opportunities, for other investors, however, the time has come to call it quits. Learn how to properly deregister your company in China with this guide. Closing a business in China can be a complex and time-consuming process, but abandoning it is not the solution. Ensure compliance and avoid penalties by following the necessary procedures.
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