Written by Kemelly Morais Vera, Brazil Desk, CW CPA
China is the second largest economy in the world, with an estimated GDP of around US$ 14.2 trillion this year, according to the International Monetary Fund. It is an attractive economy for multinational companies, being ranked as one of the most significant Foreign Direct Investment (FDI) recipients.
In 2013, it surpassed the United States as the world’s largest trading nation. The opening of the country and government incentive programs turn China into a massive manufacturing hub, which is recognized worldwide.
Recently, China’s development plans focused on attracting high-tech corporations, with new incentives, such as tax exemptions and government funding schemes. The country is trying to shift the spotlight from manufacturing to an economy that is driven by innovation.
China is undoubtedly a great option you are thinking to expand or start a new business. We listed a few points of why China is considered a recognized hub for foreign investments:
• One of the largest trading nation in the world
• Favorable geographic location
• Growing economy
• Reasonable labor cost
• One of the largest domestic market in the world
• Qualified workforce
• Changing and adapting foreign investment laws
• Tax incentives for some specific business sectors
• Free trade zones and etc.
Nonetheless, it is essential to understand the regulations and the dynamic policy changes. The language and cultural differences may also be considered as a barrier for foreign investors. That’s why it is essential to have an experienced and reputable firm to help you with this transition.
CW CPA is a renowned advisory and accounting firm, known as a gateway for international companies that wants to set up their business in China, with offices strategically located in Hong Kong, Mainland China, Spain, the UK and Colombia, and an expert team of multilingual advisors, who can be a valuable asset for those who want to explore this growing and promising market.