CB 2015 Importing and Exporting in China - Preview

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Over the past few decades, China has developed
into a manufacturing and trading powerhouse.
Now known as the Factory of the World, China’s
economic model has been built on producing
often low-end goods and exporting them in mass
volume across the world. This model was pushed
with strong government support across the board.
Many tax, zoning and administrative policies still
reflect this focus, such as the
Processing Trade Relief, a
program that waives duties
and taxes for companies
in China that manufacture
solely for export.
Howe v e r, t h e n a t u r e
of China’s economy is
changing. The country is
moving towards a more
c o n s u m p t i o n - d r i v e n
economy, which drastically
alters the type of products that are now being
imported. Luxury goods, foreign foods and art are
replacing electrical components and rawmaterials
for textiles. As demand continues to be weak in
major export markets such as the U.S., Western
Europe and Japan, Made in China is finding new
customers across emerging markets. With the
technological capabilities of Chinese companies
reaching new levels of sophistication, Western
producers of aircraft components, medical devices
or telecom equipment suddenly find themselves
competing with Chinese players for global market
share.
In this issue of China Briefing,
we discuss the latest import
and export trends in China,
and analyze the ways in
which a foreign company
i n Ch i na c an p rope r l y
prepare for the impor t/
export process. With import
taxes and duties adding a
significant cost burden, we
explain how this system
works in China, and highlight some of the tax
incentives that the Chinese government has put
in place to help stimulate trade.
This Month’s Cover Art
清漓之晨 by 徐希
Chinese Painting
Wan Fung Art Gallery
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Introduction