China Investment Guide
China Investment Guide Service Hotline: 86-075582143512, Email:firstname.lastname@example.org
There is no denying the fact the China has risen metaphorically like no other nation has in the recent past. The Chinese growth model has not only attained enormous success for the citizens and investors worldwide but has also been an envious state for many other developing countries that have literally failed to do anything with their moribund economies, whereas the Asian giant successfully managed to bring about a change in common man's life.
China’s GDP has multiplied while exports have risen exponentially, so much so that the country has been labeled the factory of the world. But change is the only thing that is constant in this world, and same is true for the Chinese growth cycle. Whatever comes up goes down just as night gives way to day and life gives way to death.
The problem is that just about everyone wants to go to heaven but no one quite wants to die, just as everyone is talking about the China growth story but not many are actually able to understand the haze of uncertainty surrounding the Chinese economy and its growth story.
Even though China has attained enormous highs, the growth of 200 to 300% of past 2 decades has reached a critical point where the growth has attained a peak and the only way forward is an imminent decline. China's harsh reality is that after decades of double digit GDP growth, average household incomes still trail miles behind many emerging economies
Not only is China marching towards the greatest bubble in history of mankind, the massive misallocation of wealth is also accelerating at an alarming speed. One doesn’t need to be an economic genius to understand the fact that the wealth gap epitomized by the Chinese economy and Real estate segment is dividing the Chinese society’s social fabric.
Establishing Foreign Investment
Principal Forms of Foreign Investment
Sino-Overseas Equity Joint Ventures (EJV).
Sino-Overseas Cooperative Joint Venture (CJV)
The major difference between an EJV and a CJV is that the investment of foreign investors in the latter does not need to be converted into shares or even if the investment is converted into shares, the distribution of profit, the bearing of risk, the sharing of liability and the assignment of property do not need to be decided on the basis of the shares of investors. Moreover, investment payback ways and administration in a CJV is more flexible.
Wholly Overseas Owned Enterprises
Sino-Overseas Share Holding Companies Sino-overseas share holding companies are those in which all investment is composed of equal valued shares. They are limited companies and overseas shareholders are required to take at least 25 percent of the company's total registered capital. These companies can be set up by public offering or private offering.
Overseas Invested Financial Institutions Foreign financial organizations applying to establish financial institutions in China should have total assets over some required standards. The home country of the head office must have a strict financial supervisory system. In addition, the head office should have established a representative office in China for more than 2 years. The application of a financial institution should strictly observe relative laws and regulations and should be approved by the People's Bank of China.
A foreign company may establish a presence in China by setting up a representative office. The representative office must confine its activities to promotion or acting as a liaison office on behalf of the parent company. And it must not engage in any trading or business activities directly or on behalf of the parent company.
Other Foreign Investment Forms
Processing and Assembling Enterprises
New Types of Foreign Investment
While expanding areas and opening-up domestic market, China is also exploring and expanding actively its new types of utilizing foreign investment such as BOT (Build-Operate-Transfer), investment companies and so on. Since multinational merger and acquisition has become the major type of international direct invest.
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.
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