Doing business in China

What are the current trends in general investments and what are the opportunities in China? 

Foreign investment in China faces a tough challenge post-Covid 19. The economic impact of the pandemic is enormous but China still managed to become the first major economy to see growth. China's economy has bounced, first and fast, from the influence of Covid-19. Also, for 3 months in a roll, China has had year-on-year growth in terms of incoming foreign investment. Surprisingly, the investment from U.S. to China grew 6% year-on-year in the first half of 2020, against both the political factors in U.S. and the pandemic. This shows that international investors still have great confidence in China.

What are the preferred vehicles to invest in the country ? Any local incentives ? 

China’s new Foreign Investment Law came into effect on January 1, 2020 marking a milestone for China’s Opening-up policy. China keeps expanding the "list of encouraged investment projects", while rolling out regulation to enable foreign investors better market access and ensure a "sound and fair environment". There are investment opportunities in various sectors including agriculture, manufacturing, automobile , pharmaceutical and hospitality. China is also promoting small business opportunities such as accessories (bags and shoes), jewelry, electronics and gadgets etc. According to the nature and value of the investment, different levels of governments, even some organizations, can possibly provide incentives, from angles of land, tax, finance, infrastructure, residence, etc.

How do you see the developments of foreign investments? In which sector particularly ? What is the support offered by local authorities ?

China has ample opportunities in various sectors but it is now more than ever important to enter the market in an efficient and compliant manner. A great occasion for clients of ISFIN members is the opening of the 3rd CIIE (China International Import Expo), which is very high level, and provides a unique opportunity to foreign companies to show their products to the Chinese market. DaWo is well positioned and of course most happy to explore the possibilities together with the interested member firm, see https://www.ciie.org/zbh/en/.