China’s economy still be strong and this is the result of a progressive sustainable achievement.
Actually, the government has put in place many reforms in order to constitute a foreign investments policy and also for domestic ones. Recently, Beijing gives US firms 250 million yuan quota to invest in China. Now, China has an influence in the international markets globally. China benefits also of the high taxes in the USA or in EU simply because investors would be more susceptible to invest where the regulation is not so much implemented. In fact, low taxes and economy performance are linked. These are the different reasons why investing in China could be an opportunity.
The Chinese government tries to streamline FDI with some principals measures. Excessive regulations tend to hinder entrepreneurial and commercial activities. For this reason, the authorities try as best to build and enabling environment with for instance the Shanghai free-trade zone, also by increasing the purchasing power and building 36 millions of social housing.
Chinese government develops the foreign equity joint ventures. Those companies are shared by domestic investments and foreign ones. Actually, they are established in Chinese territory. Foreigners and Chinese investors shared also the profits and the losses. All the foreigners investments have to be less than 25% of all the investments of the entire company in order to let the foreigners investors, invest more in the Chinese territory.
The size of the Chinese population is the main aspect of the Chinese market. In fact, a lot of opportunities comes with the growth that results from the domestic market.. This is another reason why FDI keeps increasing in the local market simply because they are more and more confident. It enables to provide a sustainable growth
China is an attractive destination for investors because of its different resources that are for most of the times more competitiveness than western countries, especially because of the costs. In addition, the work skills and the productivity also enable foreigners’ investors to develop more commercial activities in the country. China’s infrastructure meaning roads, highways, bridges etc are necessary to provide an environment sufficiently enable for a sustainable growth. For few years, new markets are taking part of the Chinese market such as the house decorating designs, mobile,textile