Without a doubt, China is one of the world’s leading economic leaders. The country has now opened its market to international trade, and its economy has shifted dramatically from agriculture to technology. Given its massive population of 1.4 billion people, vast land area, rapidly growing middle class, and loosening economic restrictions, China is now one of the most lucrative choices for anyone looking to expand their business internationally.
Why choose China to set up a business
There are lots of benefits of having a company in China. The most important advantages one can enjoy as a business owner in China includes:
Fast-growing major economy
China’s five-year plans have been a huge success over the last few decades.Since China’s opening to the rest of the world, many international corporations have taken advantage of the benefits of doing business there.China’s economy has now overtaken the world’s second largest and is on track to overtake the world’s largest by 2030. In 2018, China accounted for more than a quarter of global GDP. Not many countries in history have modernized at the pace and scale of China.
China is in the midst of a significant transition. From an agricultural-based economy to one of the world’s top tech-driven countries, China has earned its place in international trade. As China’s middle class expanded, the country shifted toward technology-intensive, high-value-added manufacturing. Chinese consumer spending is also expected to triple in the coming years as the country transitions from an investment-heavy to a consumer-dominated market.
Access to the chinese market
If you want to sell in the Chinese market from abroad, you have to go through a number of complicated processes and paperwork. Having your own company is the most direct and legal way to enter the local market.
As China’s manufacturing industry expands, hundreds of millions of people are migrating to cities in search of work. In just a few decades, the country has evolved from an agrarian society with a traditional outlook to a consumer-based society driven by urban development. The population is becoming more urbanized. Most economists predict that by 2022, three-fourths of China’s vast urban population will be middle-class by Chinese standards. This can result in a variety of advantages, including previously untapped markets and a larger customer base.
Low manufacturing cost
One of the primary reasons that many Western companies relocate to China is the low cost of manufacturing. After all, profit margins are indeed a high priority in every business. While the minimum wage and working conditions have improved over time, China remains less expensive than most developed countries when it comes to manufacturing. China is undeniably a manufacturing powerhouse, having earned the title of the world’s factory. Depending on the product, costs can be reduced by up to 80% in China.
Abundance of skilled talents
Hard work and diligence are highly valued in Chinese culture, and this has a direct impact on employee job performance. When you run a business in China, you are guaranteed to hire some of the most talented and competent Chinese locals who will go above and beyond to help you succeed. The Chinese have a strict work ethic, which allows for a well-organized and pleasant working environment. Furthermore, many locals enjoy working for foreigners, which means you may be able to attract top talent to help you achieve your business objectives.
Favourable government policies
The Chinese government has been very proactive in enforcing entrepreneurially supportive policies for both domestic and foreign firms. These policies encourage creativity and innovation while also providing citizens with business subsidies. As its manufacturing and transportation industries, for example, are thriving as a result of government intervention, foreign firms can easily and affordably acquire enough supplies for their shops.
Tariffs on imported goods have been reduced, and a new foreign investment has been enacted. It is very easy to find local business partners and investors in China as a result of favorable government policies.
Innovative landscape
China is the global leader in product innovation, digitalization, and R&D. Mobile payments have aided in the transformation of urban China into a mostly cashless society, e-bikes have transformed public transportation, and e-commerce platforms have enabled on-demand consumption. Scientific and technological innovation has been critical to China’s economic development. Many cutting-edge fields are led by Chinese scientists and technologists. Baidu, Tencent, and Alibaba have grown into global behemoths known for their innovative offerings. Companies can benefit from this rapidly developing technological market, as Chinese consumers are eager to learn about and use new technological products and services. China, more than any other country, has the potential to foster business innovation.