On 11 March 2021, the EU SME Centre organised a digital event concerning the general question “What does it take to Set-up and Operate a Foreign Company in China?”.
Despite the covid-19 pandemic, China is the only major economy that experienced economic growth in 2020 with GDP rising 2.3% and with an estimated growth of 8.2% in 2021. In 2020, China also became the world’s largest recipient of FDI totalling USD 144.37 billion up 6.2%. But to attract more foreign investment, China has in recent years been pushing through many new reforms. These reforms have made it steadily easier, quicker, and cheaper to set-up and operate a foreign company by reducing capital requirements and taxes, offering incentives, cutting red tape, and speeding up processing times.
With fully dedicated local employees on the ground in China, foreign companies can also benefit from getting access to many more sales channels and connecting directly to a much larger and constantly evolving customer base in the Chinese market.