In the 30 years since Deng Xiaoping’s “reform and opening-up” policy of 1978, China’s GDP has developed at an unprecedented rate, averaging 10 percent growth per annum. However, the relentless momentum of investors turning their sights towards China has softened of late. A slowed projected GDP growth of 6.7 percent in 2016 – the lowest in 25 years – combined with stock market volatility has caused alarm among observers.
While some of these fears are grounded in reality, others are overblown. After decades of rapid growth and development, the Chinese economy is inevitably changing. The Middle Kingdom is undergoing a major overhaul, transitioning to have a service and consumption driven economy rather than one based purely on manufacturing and export. This transition is not unconditionally negative for the country’s competitiveness, and is understandably changing the way in which investors approach and operate in the country. In fact, between January and November 2016, foreign investment in China exceeded US$110 billion, a growth of nearly 34 percent year-on-year.
Doing Business in China, updated in January 2017, is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
Doing Business in China 2017 covers the following:
- Establishing and Running a Business
- Tax, Audit and Accounting
- Human Resources and Payroll
Within these chapters, we discuss a range of different topics that affect doing business in China, including investment models, intellectual property considerations, key taxes applicable for foreign companies, and various types of employment contracts. In addition, we examine how a foreign entity can convert its representative office (RO) into a wholly foreign-owned enterprise (WFOE), and discuss how to legally terminate an employee in China.