Made In China. Why you should setup a manufacturing unit in China?

Setup manufacturing unit in China

Manufacture in China

When you think of China, I’m sure one of the first things that come to mind is its extraordinary work force and its ability to turn out great value products.

If you want something produced on a large scale for a good price, then a manufacturing unit in China will continue to be a good bet for a number of reasons:

  • Infrastructure: The quality of China’s infrastructure varies widely around the country depending on location with urban and trading locations providing the most modern and comprehensive systems. Its rail system is its primary mode of transport and continues to grow since the mid twentieth century. The road systems have also gone through rapid development in the past 50 years though the best highways tend to be found along the economically developed areas of the coast and in the inland cities along major rivers. China has excellent port facilities and continues to invest in this area. China has been in the news recently for its enormous investment of $46 billion into Pakistan’s infrastructure which will open up an economic corridor through Pakistan and provide an alternate route into the Middle East, Africa and Europe in the coming years. Currently China uses the Malacca Straits but this is a much longer route which is often blockaded in times of war.
  • Electronics factory in Shenzhen

  • Workforce: China boasts a gargantuan educated, skilled and low cost workforce. Literacy is above 95% according to the CIA World Factbook and the Chinese are ranked as being in the top 10 highest IQ levels in the world according to several different sources. This talented workforce provides for a very large service industry looking after all the ancillary needs of shipping agents, banks and financial institutions to support the manufacturing industry.
  • Anti-Corruption Drive: China has taken positive action in the past few years to change its reputation as a corrupt country. President Xi Jinping announced a crackdown on government corruption in November 2012 and since then officials are being held accountable for crimes against anti-graft and anti-extravagance regulations. Tim Donavan of “The China Business Review” reports on a speech given by President Xi in January this year:
  • “Corruption is a disease that calls for powerful drugs,”

    said Chinese President Xi Jinping. He promised an even stronger crackdown on graft when he addressed the Chinese Communist Party’s anti-corruption agency on January 14. The talk accompanied the release of new party rules regulating promotion and corruption and a report that found China’s discipline inspection agencies have punished about 182,000 officials in 2013, roughly 13 percent more than in 2012.

  • Industrial Development & Export Processing Zones: China has 134 Industrial Zones and 54 Export Processing zones that create a liberal business environment for foreign investors. The zones have preferential policies, support and participation of the government, autonomy, resource availability, and are hubs of technology and learning and innovation. These zones make it attractive for entry into the Chinese market without having to suffer the bureaucratic red tape and other obstacles seem outside the zones.
  • Double Taxation Treaties: China has 99 double taxation treaties, many of which have been agreed in recent years ensuring they are up to date and that they handle IT and communication regulations very well unlike older treaties. China has double taxation treaties with all the major world players including the US, the UK, Singapore, Australia and Russia.
  • Free Trade Zones: Recently China has added its first free trade zone to main land China in the form of the Shanghai Free Trade Zone (SFTZ). This Zone along with the Hong Kong Free Trade Zone and the Pearl River Delta free trade zone offer the following substantial benefits: 0% corporation tax, no customs taxes, minimal registration requirements and no exchange controls. The main advantages to the new SFTZ is significantly relaxed internet laws and there is no duty/customs clearance on commodities entering the zone. These relaxed laws have resulted in a boost for the wine industry allowing more flexibility in importing wines from around the world into China.

Contact us

For company registration services in China, please email us at email[at]healyconsultants[dot]com or contact our in-house country expert, Ms. Karen Lee at +86 1084057444 or email karen[at]healyconsultants[dot]com

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Photos Credit

  1. Made in China by Martin Abegglen under CC BY-SA 2.0.
  2. Electronics factory in Shenzhen by Steve Jurvetson from Menlo Park, USA (glue worksUploaded by Zolo) [CC BY 2.0], via Wikimedia Commons

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