Employer Of Record in China

China Country Facts

China has the largest population in the world and the second largest economy worldwide. It is one of the oldest civilizations on earth with its unique and attractive culture and has developed at record speed.

China is the biggest economy in the world for e-commerce adoption and mobile payment. They have also developed a lot of innovative products and business models.

The Economy

China has remained the largest single contributor to world growth since the global financial crisis of 2008. Somehow, China remains as a developing country, because its per capita income is a fraction of advanced countries in the world, its market reforms are also yet to be complete.

China uses a market-based system, which they changed from a centrally planned system some time in the 70s. But China’s economy is starting to focus more heavily on consumption- and services rather than investment and manufacturing

The Importance of Small and Medium-sized Companies

Small and medium-sized enterprises actually contribute a lot to China’s growing economy, including about 80% of non-government employment. The small and medium enterprises (SMEs) in China have grown quickly over the past two decades, and this has contributed to amazing economic development in the country. However, limited SME financing and technology that is weak plus the external market which could also use improvements is causing issues in China.

Any firm that will support China has their full support in helping to grow their economy. Their latest measures are to boost refinancing, which Premier Li Keqiang says will become important in the future.

Population Characteristics

1.6 billion people populate China. It’s an older population compared to many other countries around the world, with the average age being 37 years old. The literacy rate is 96.4%. One of the biggest languages in China, however, is English and there are about 10 million speakers all over the country.

Economic Opportunities

China has an economy which is emerging to offer a lot of opportunities, especially for foreign investment. This is a country that has a lot of potential for growth because it has access to a large market and a lot of labor costs. However, because of the differences in political and cultural differences, those unfamiliar with China’s laws should take caution to speak with experts who can help you avoid risks

Key Sectors of the National Economy

There is a new multi-year plan China has recently put out which proposes to help develop the country’s economy. It hopes to increase resources by helping with their efficiency, and hopefully encouraging innovation whilst meeting climate change commitments. Major industries are in:

• Manufacturing Mining Energy Agriculture

Human Talent
China has taken steps to encourage investment within the education sector, whilst tightening its regulations on academic tutoring for children who are of school age. This country believes that if it provides skills for its workforce, then its economy should continue to grow. They warmly welcomed foreign investment for this part of their economy. China believes upskilling its workforce is key to the country’s continued economic

Prominent Cities for Business

Shanghai
Is the biggest city in China and is the center for much of the economy, especially in transport, science, finance, trade, exhibition and shipping. This is a port in China, and Shanghai has trading partners who have expanded this to over 200 countries. Hong Kong is China’s international trade center.

Beijing
Is the capital of China, municipality directly under the central government, national central city, and megacity of the People’s Republic of China. It deals with politics, culture, international exchange, and technological innovations which are approved by the State Council.

Guangzhou
Is a central city in China, a famous port city in the world, and it is also an important finance, commerce, trade, transportation, exhibition, and shipping center. And for 2000 years, it has been a political, military, financial, cultural and scientific center. Shenzhen is another one of the big economic locations in China, and it is one of the four first-tier cities in China. Shenzhen hosts marine and air hubs plus foreign trade ports, and is among the best in the world. It is also an important place for finance and economy.

Technological Ecosystem

In 2030, China is hoping to become a techno-utopia with Chinese characteristics. President Xi Jinping wants to make this vision a reality by taking up deep tech within China as a whole. It wants to be involved in “deep tech” such as AI, cloud-computing, cars that drive themselves and innovative computer chips.

Facilities for Foreign Investment

Most industries in companies around the world have a range of options for how to build their companies within China, this includes wholly foreign-owned enterprises (WFOEs), companies limited by shares, foreign- invested partnerships (FIPs), and other investment vehicles.

China has proposed new “negatives” in a list for foreign investments. Items on the negative lists: nationwide and for pilot free trade zones (FTZs) which were cut to 31 and 27, down 6.1 percent and 10 percent, respectively. From 2017 to 2020, China cut some more items from 93 to 122, to 33 and 30, which introduced major opening-up measures in industries such as financing and automobiles.

Business Culture in China

Presenting Business Cards When you are handing over your business card in China, use both hands or only the right hand to make sure that the writing is facing the other person.

Enthusiastic Welcomes Your Chinese colleagues may applaud you when they introduce you, this is how they green and show approval. It is appropriate for you to then applaud them back.

Highlight Your Assets Be sure to emphasize the status, size, reputation and wealth of your company.

China Gastronomy: regional and traditional cuisines

Peking duck (北京烤鸭 Běijīng kǎoyā) is a well-known dish that originated from Beijing. This is a savory dish that has think and crispy skin on the duck, which is then sliced and enjoyed in pancakes with a sweet bean sauce or soy and mashed garlic.

Kung Pao Chicken (宫保鸡丁 gōngbào jīdīng) is a Sichuan-style specialty that is popular amongst the citizens and visitors to China. The key ingredients are diced chicken, cucumber, dried chili, and fried peanuts (or sometimes cashews). Hot pot, or hotpot or 火锅 huǒguō, is an especially popular in Sichuan Province or Chongqing. They place this dish in the middle of the dining table on a hot hob, as this is a pot of soup stock or broth. They place condiments and foods around the hob. People can then place whatever they like into their broth.

Eight Treasures Rice Pudding is a traditional Chinese dessert that has glutinous rice and candied fruits, which can sometimes include red jujubes, lotus seeds, raisins and walnut kernels.

General Highlights

What you need to know about employing personnel in China:

Laws That Regulate Labor Relationships

Key Tax and Labor Authorities

Labor Contracts

Payroll

Legal Benefits in China

Employers Contribution or Labor Cost

Annual Taxable Income

Corporate Tax Rates