Five Reasons Why Foreign Entrepreneurs Start A Business In China
Entrepreneurs Start A Business
China is literally ruling the world when it comes to offering quality products at lower prices. It has literally attained a monopoly in this field. This is the reason why foreign investments are attracted to China.
If you are a foreigner and want to set up your own business in China, you come on WFOE (a wholly foreign-owned enterprise). However, there are certain advantages that you have as you are investing there. The article discusses the reasons why foreign entrepreneurs start a business in china.
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Why Foreign Entrepreneurs Start A Business In China
China is among the best investment destinations in the world, and there is no doubt about it. If you are a foreigner and want to start your business in China, you need to know more about china company registration.
The Foreign Investment Law governs foreign investments in China. But once you fill up all the requirements, you automatically come under the frame. Now let’s discuss the reason why you started your business in China.
1. Favorable Government Policies
The most important requirement for becoming an attractive business destination is favorable government policies. The Chinese government facilitates the incubation of new innovations and ideas. In addition, it provides expertise to help you explore new boundaries in business.
According to a finding, China accounted for 47% of the global venture capital funding against the USA and Canada’s combined 37%. This vindicates their commitment to take you on the growth journey.
2. Entrepreneurial Environment
The success of a business environment depends, to quite an extent, on the entrepreneurial environment. If you don’t really have a great environment for business development, you won’t be able to attract new business investment.
For example, Shanghai and some other cities like Beijing, Chongqing, and Tianjin were grouped to create a China Shanghai Pilot Free Trade Zone (SHFTZ). As a result, they get an advantage over other cities. Suppose you start your own business in this region. In the year 2018, they attracted 7 billion in foreign direct investment (FDI). That magic lies in the entrepreneurial environment.
China has all the policies it will enjoy while operating there. These industry policies carve out growth opportunities in China.
For example, if you consider the macrocosmic figures, Shanghai possessed RMB 3.3 Trillion of GDP, the highest of all the other cities. Reducing this figure to a microcosmic discussion, you get growth opportunities if you invest in electronics, bio-medicine, and financial services. But what you need is your own business development strategic plan. Only then can you optimize the business environment.
Social stability is one of the greatest assets of a successful nation. China has uplifted itself to great heights with the help of friendly business policies and stressful internal discipline.
Internal discipline comes with good governance, and governance comes with government control. China has it all to offer (to you). You can successfully plan your business and implement them to perfection. This is called stability.
China has zero tolerance towards anything that comes as an obstacle to business growth and development. Whether it comes to resources or security, you can have blind faith and belief in the government.
5. Skilled Workforce
Along with favorable policies, you also have a highly trained workforce. The supply of trained and cheap labor in China is unmatched by other countries on the planet. Now how does China create such a quality workforce in large numbers?
There are around 3012 colleges and universities in China, which produce millions of graduates. Apart from this, they also have 12 national research institutes and around 62 provincial research institutes. So a skilled workforce will never be an impediment to your path of business success.
Wrapping It Up
It can therefore be understood that the government provides many facilities to foreign entrepreneurs to run their businesses properly.
These facilities create the ambiance of growth and development for the companies operating their business there.