China is, without a doubt, one of the global economic giants. Taking a closer look, you will realize that almost every big company in the globe, from Barclays to Apple, has some presence in China. So, if you are looking forward to growing your business into a global multinational, one of the first and crucial steps is incorporating it in China. In this post, we will take a closer look at the key benefits of opening a business in China.
An Overview of the Chinese Economy
Since 1978 when China introduced the famous economic reforms, it has become one of the countries with the fastest economic growth rates. World Bank estimates that the Chinese GDP shot from $150 billion to $13.6 trillion between 1978 and 2018. With the growth anticipated to continue moving up in the coming years, it presents entrepreneurs with an opportunity to jump in and grow together. So, you should not be left behind in joining this high-potential jurisdiction to support your business growth.
The Main Advantages to Anticipate after Opening a Business in China
- Supportive Chinese Administration Policies
One of the most notable things about the Chinese administration is its support for both local and global entrepreneurial efforts. For example, the administration has been very active in supporting innovations and giving subsidies so that local and foreign investors can make their ventures more successful.
The Chinese administration has also been very supportive when it comes to taxes. When you decide to open a business in China, the taxes for enterprises in the inland regions are lower compared to the coastal cities. This is one of the reasons why many manufacturing companies have been moving to China in the last two decades.
- Numerous Growth Opportunities
When you decide to incorporate a business in China, there are numerous opportunities for growth. For example, the large local population offers you an opportunity to sell more and increase your profits. Also, companies in manufacturing have been taking advantage of low production costs to produce products for export.
Why is every business heading to China and not to other jurisdictions? The secret is the stability depicted by the country. After adopting the economic reforms of 1978, China’s social, economic, and political systems have been very stable. This is why major business-crippling things, such as hyperinflation, have not been heard for a long time in the country. Without worrying about economic stability, it becomes easy to plan and grow your enterprise.
- Well Developed Infrastructure
To make it easy for businesses to operate, the Chinese administration has invested heavily in infrastructure. From roads to rail networks, China has some of the best, making it a role model for other nations. So, whether your business is in manufacturing or retail, transporting raw materials, staff, or finished products will be easy, fast and affordable.
The advanced infrastructure was evident after the outbreak of the COVID-19 pandemic in March 2020. The country’s health system was very effective in identifying, testing, and addressing the pandemic, especially in the epicenter, Wuhan. Even as China’s efforts get praises all over the globe, the virus has continued to spread, reaching 12 million infections and 500,000 deaths by early July 2020.
If you are thinking of taking your business offshore, China is one of the best jurisdictions. It has good infrastructure, supportive administration, and everything that your enterprise needs to be successful. So, do not be left behind as others launch their enterprises to success. To make your roadmap to success clearer, you should also consider working with an expert agency, which can help you with business registration and drafting strategies for success.