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Selling Sourcing and E-commerce in China 2016 (First Edition) -

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Introduction

Over the past fewdecades, China has developed into amanufacturing and trading powerhouse. Now

known as the Factory of the World, China’s economic model has been built on producing low-end

and, more recently, mid- to high-end goods and exporting them in mass volume across the world.

Many tax, zoning and administrative policies still reflect this focus, such as the ProcessingTrade Relief,

a program that waives duties and taxes for companies in China that manufacture solely for export.

However, the nature of China’s economy is changing. The Middle Kingdom is undergoing a major

overhaul, transitioning to have a service and consumption driven economy.While risingwages have

driven up disposable income, urbanization and the growth and expansion of the middle class in

second and third tier cities means more and more consumers are demanding a variety of quality

products, translating into opportunities for foreign retailers. This is especially true in the country’s

massive e-commerce market – a sector that has undergone significant change in the past year to

allow increased foreign participation.

This guide, produced in collaboration with the experts at Dezan Shira & Associates, provides

a comprehensive analysis of all these aspects of commerce in China. It discusses how foreign

companies can best go about sourcing products from China; how foreign retailers can set up

operations on the ground to sell directly to the country’s massive consumer class; and finally details

how foreign enterprises can access China’s lucrative yet ostensibly complex e-commerce market.

Since its establishment in 1992, Dezan Shira & Associates has grown into one of Asia’s most versatile

full-service consultancies with operational offices across China, Hong Kong, India, Singapore and

Vietnam, partnership offices in Indonesia, Malaysia, the Philippines and Thailand, as well as liaison

offices in Germany, Italy and the United States. Dezan Shira & Associates’ experienced business

professionals are committed to improving the understanding and transparency of investing in

emerging Asia.

Alberto Vettoretti Managing Partner Dezan Shira & Associates