This publication presents an overview of matters to be considered by those thinking of investing in the People's Republic of China (PRC).

Introduction:

Bamboo is a traditional material which has adapted to modern uses. It’s strong; it’s versatile; and it grows incredibly fast.

Much the same can be said of China. Its people are adapting fast to the challenges of globalisation. Its economy is now established, both as a manufacturing centre and a consumer market.

Business opportunities abound in China, but achieving success requires patience, as well as understanding. It requires an appreciation of China’s unique history and society. It also requires a willingness to explore markets and identify risks as they exist in each locale.

This guide offers an introductory overview of things to consider when investing in China, drawing from KPMG’s
60 years in the region.

For more in-depth analysis of individual industry sectors in China, please browse our latest publications, many of which are available on our Web sites.
www.kpmg.com.cn
www.kpmg.com.hk

Download Investment in the People’s Republic of China

PDF format, 1.75MB, 44Pages.

Chapter 1 Country outline 5
Geography 6
Climate 6
History 7
Government 9
Population and demographics 9
Language 9
Currency and banks 10
Infrastructure and transport 10

Chapter 2 Macroeconomic overview 11
Size of the economy 12
Opening up 12
Key sectors for investment 14
• Consumer markets and manufacturing
• Extractive industries
• Power and utilities
• Automotive
• Financial services
• Infrastructure and the service industries
Capital market development 16
China outbound investment 17

Chapter 3 Key investment considerations 19
Overall philosophy and approach 20
Laws and regulations 20
Contracts and negotiations 20
Forms of foreign investment 21
• Processing and assembly agreements
• Equity joint ventures
• Cooperative joint ventures
• Wholly foreign-owned enterprises
• PRC holding companies
• Representative offices
• Branches
• Construction and installation projects
• Subcontracted business

Intellectual property and copyright 22
Environmental regulations 22
Business taxation for foreign enterprises 23
• Income tax
• Incentives available to investors
• Double taxation treaties
• Value added tax
• Other taxes
Customs 24
Accounting regulations 25
Insolvency 26
Land and buildings 26
• Land
• Buildings
• Renting industrial, commercial and office space
Development zones 27
• Special Economic Zones
• New and High Technology Development Zones
• Bonded Zones and Export Processing Zones
Hong Kong and the Closer Economic Partnership Agreement 28

Chapter 4 Working and living in China 29
Visa requirements 30
Medical care and emergencies 30
Housing 30
Education 31
Recreation 31
Taxation of foreign individuals 31
• Residence
• Taxable income

Chapter 5 KPMG in China and Hong Kong SAR 33
About us 34
Thought leadership 35

Chapter 6 Appendices 37
Appendix I Representative bodies in the PRC 38
Appendix II Useful Web sites 39
Appendix III Day to day tips for visitors 40

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