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's Market Potential
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.