China Investment Portfolio/China Investment Guide
Hotline: 86-755-82143512, Email:email@example.com
China Investment Guide is a useful tool in planning new and managing existing investments in China. China is the world's most populous country, with 1.3bn people living on 9.6m sq km of land. The nation comprises 5 autonomous regions, 23 provinces, 4 municipalities and 2 special administrative regions.
The huge land is rich in natural resources and cultural deposits. Due to its size, the climate, culture, as well as economic diverse. However, it’s the great diversity makes China a most attractive place for both visitor and investor. Also since the implementation of the reform and open-up policy, China has been seen a booming economic, which brought not only numerous business opportunities, but also investors all over the world.
Foreign Direct Investment (FDI) in China
China's absorption of foreign investment is an important content of China's fundamental principle of opening up to the outside world, and is one of the great practices of building up socialist economy with Chinese characteristics. The Law of the People's Republic of China on Chinese-Foreign Equity Joint Venture, was promulgated by the National People's Congress in 1979, then the work of utilizing foreign capital as an important content of opening up to the outside world initiated as China's fundamental principle.
Forms of Foreign Investment
The foreign investments are basically divided into direct investment and other means of investment. The direct investment, which is widely adopted, includes Sino-foreign joint ventures, joint exploitation and exclusively foreign-owned enterprises, foreign-funded share-holding companies and joint development. The other means of investment includes compensation trade and processing and assembling.
1. Sino-foreign Joint Ventures
Sino-foreign joint ventures are also known as share-holding corporations. They are formed in China with joint capitals by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The Sino-foreign joint ventures are among the first forms of China's absorption of foreign direct investment and they account for the biggest part. At present they are still a great part in the absorption of foreign investments.
2. Cooperative Businesses
Cooperative business is also called contractual cooperation businesses. They are formed in China with joint capitals or terms of cooperation by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The rights and obligations of different parties are embedded in the contract. To establish a cooperative business, the foreign party, generally speaking, supplies all or most of the capital while Chinese party supplies land, factory buildings, and useful facilities, and also some supply a certain amount of capital, too.
3. Wholly Foreign-owned Enterprises (WFOE )
Exclusively foreign-owned enterprises, which are totally invested by foreign party in China by foreign companies, enterprises, other economic organizations and individuals in accordance with laws of China.
4. Joint exploitation
Joint exploitation is the abbreviation of maritime and overland oil joint exploitation. It is a widely adopted measure of economic cooperation in the international natural resources field. The striking features are high risk, high investment and high reward. The joint development is often divided into three steps: exploitation, development and production. Compared with the other three means mentioned above, joint cooperation accounts for a small ratio.
5. Foreign-funded share-holding companies
Foreign companies, enterprises, other economic organizations and individuals can form foreign funded share-holding companies in China with Chinese companies, enterprises, and other economic organizations. The total capital of the share-holding company is formed by equal shares, shareholders will take due responsibilities for the company according to shares purchased; company will take responsibilities for all its debts through all its assets and the Chinese and foreign shareholders will hold the shares of the company.
When you decide to invest China, you might need a guidance who can tell you how to find a business, how to do business in China, etc. A guidance book can help, while a professional local service provider can bring you to success. Tannet is one of the business service providers who can offer invest opportunity service to help investors what to invest, consulting service to instruct you how to do, and outsourcing service to help you do your business better. We can take care of your business from start to the end.
If you have further inquires, please do not hesitate to contact Tannet at anytime, anywhere by simply visiting Tannet’s website www.tannet-group.net, or calling Hong Kong hotline at 852-27826888 or China hotline at 86-755-82143422, or emailing to firstname.lastname@example.org. You are also welcome to visit our office situated in 16/F, Taiyangdao Bldg 2020, Dongmen Rd South, Luohu, Shenzhen, China.
Previous：Is already the first one！
Next：Business Acquisition: Steps for Preparing an Acquisition