China’s economy is undergoing a structural shift. A massive labor pool, combined with integration into the global trade system, propelled China towards decades of unprecedented economic expansion. Now, China is an increasingly mature economy, and has priorities that go beyond growth at any cost.
At the same time, trade frictions with the US and a slowing domestic economy are giving foreign businesses challenges unseen in their years of doing business in China. Faced with heightened geopolitical risks, and rising land and labor costs, many foreign investors are looking to restructure their China-based businesses. Restructuring and relocation plans, however, are being expressed in different ways, depending on the nature and needs of the business.
Many manufacturers producing labor-intensive goods for export to Western markets are looking to relocate to low-cost Southeast Asian economies like Vietnam and Indonesia. Meanwhile, manufacturers of similar types of products, but for whom the Chinese market is the final destination, might prefer relocation to a lower-cost jurisdiction within China, such as in the country’s emerging inland regions. On the other hand, businesses that see potential in China’s new economy might upgrade their investments by moving to one of the country’s dynamic coastal cities for more advanced functions that may previously have been executed primarily within their home markets.
In this issue of China Briefing magazine, we walk foreign investors through the process of relocating their China businesses. First, we look at why businesses might relocate, before identifying where they are ultimately moving to. Then, we guide investors on how to manage the legal, tax, and HR issues that arise during relocation. We hope this magazine serves your business well in achieving its relocation goals.
In this Issue:
- The Most Common Reasons for Moving a Business
- Where to Relocate your Business
- How to Manage Legal, Tax and HR Concerns