FAQ
For invest in China
1.Why invest in and start a company in China?
China's political stability, social security, and policy continuity provide foreign enterprises with a stable and predictable operating environment. In the face of external geopolitical tensions and trade frictions, China is expanding its autonomous and unilateral openness in an orderly manner, creating greater flexibility for multinational corporations. For example, in 2024, China fully lifted restrictions on foreign investment in manufacturing and continues to shorten the negative list for foreign investment access—clearly signaling its unwavering commitment to openness.
2.What is the core advantage of investing in China compared to other emerging markets?
1.China's advantage is comprehensive and multidimensional, not merely a single cost advantage. Its core lies in the synergistic effect of "scale advantage + innovation ecosystem."
2.The world's largest consumer market: not only vast in scale but also multi-layered and rapidly evolving. For example, Airbus forecasts that China will need 9,570 new aircraft over the next 20 years, accounting for nearly one-quarter of global demand. This offers immense commercial potential for any new product or technology.
3.Comprehensive industrial system: China has all industrial categories listed in the United Nations' industrial classification, with a robust supply chain network that significantly reduces production costs and coordination challenges. This means you can find suppliers more quickly, cut costs, and accelerate time-to-market for your products.
3.Can foreign capital in China truly enjoy national treatment? How do policies ensure fair competition?
Yes. The Foreign Investment Law establishes the pre-establishment national treatment plus a negative list management system in the form of law. This means that outside the scope of the negative list, foreign-invested enterprises enjoy the same treatment as domestic enterprises. The law also ensures that foreign-invested enterprises can participate equally in government procurement and standard-setting, and safeguards their legitimate rights and interests through intellectual property protection and complaint resolution mechanisms.
4.China's labor costs are rising—does investing in manufacturing still make sense?
There definitely are, but the appeal has shifted from "cost-driven" to "innovation-driven" and "industrial chain collaboration."
China has the largest pool of engineers globally, providing a strong talent foundation for research, development, and innovation.
Meanwhile, local governments offer various support policies—such as land allocation and tax incentives—for foreign high-end manufacturing projects.
For example, China recently eliminated restrictions on foreign investment in manufacturing, attracting Fortune 500 companies like Henkel and AstraZeneca, and fostering industrial cluster effects.
5.What support is available for research and innovation in China? What is the environment like?
China is transforming from the "world's factory" into a "global innovation hub." The government encourages foreign investment in research and development centers and provides supporting measures. More importantly, China offers vast application scenarios—from intelligent driving to green energy—that provide a complete chain from concept validation to commercialization for new technologies. For example, Germany's Bosch plans to invest approximately 10 billion yuan in R&D for intelligent driving systems in Suzhou over the next five years, precisely because of China's rich application environments and rapid technological iteration capabilities.
6.What specific favorable policies toward foreign investment has China recently introduced?
Recent policy measures have been unprecedented in scale, focusing primarily on the following areas:
1.Full liberalization of the manufacturing sector: Eliminating foreign investment entry restrictions in the manufacturing sector.
2.Encouragement of reinvestment of profits: Introducing measures to encourage foreign enterprises to directly reinvest their domestic earnings, providing facilitation in land use, taxation, and foreign exchange.
3.Facilitation of cross-border mergers and acquisitions and strategic investments: Optimizing rules for foreign investment mergers and acquisitions, and introducing new regulations to encourage foreign investors to make strategic investments in A-share listed companies.
4.Enhancement of trade facilitation: Providing customs clearance and AEO certification convenience for foreign-invested enterprises.
7.Which industries in China are most encouraged for foreign investment?
Policies clearly guide foreign investment toward high-tech industries and modern services. For specific guidance, refer to the Catalogue for Encouraging Foreign Investment, which continuously expands its encouraged sectors. Current investment hotspots include:
1.Advanced manufacturing: new energy vehicles, smart manufacturing, and new materials.
2.Green and low-carbon industries: photovoltaics, wind power, and environmental protection technologies.
3.Modern services: digital economy, health care and elderly care, and vocational education.
4.Biopharmaceuticals: foreign investment is encouraged in pilot projects involving segmented production of biologics.
8.After establishing a company in China, are foreign exchange funds freely transferable in and out?
Yes, there are clear legal safeguards. The Foreign Investment Law stipulates that foreign investors' capital contributions, profits, and capital gains within China may be freely remitted into or out of China in Renminbi or foreign exchange in accordance with the law. The recently introduced Measures on Encouraging Foreign-Invested Enterprises to Reinvest Within China further streamline the procedures for using foreign exchange funds for domestic reinvestment.
For comparing factory and office rental
1.Is my business more suitable for a factory or an office? What determines this?
This entirely depends on your core business activities.
1.Prioritize factory space: Choose a factory if your business involves the production, processing, assembly, warehousing, or pilot testing of physical products, especially if you require large equipment, production lines, or have special requirements for ceiling height, load-bearing capacity, waste disposal, or exhaust ventilation.
2.Prioritize office space: Choose office space if your core business focuses on research and development, design, consulting, IT, finance, trade, or professional services—activities primarily driven by employees' knowledge output and client meetings. In such cases, office space is the standard choice.
2.Between the factory and the office, which has a higher initial cost?
1. Rental Rates: According to our research, Guangzhou's research and development properties and factories offer the most competitive rental rates among China's first-tier cities. However, office rental prices in the core areas of first-tier cities are significantly higher than those for factories located in suburban areas or industrial parks, depending on your company's specific positioning needs.
2. Additional Fees: Factories may require one-time renovation costs for environmental protection, fire safety, and power capacity upgrades. Offices—especially shared offices—typically include fees for internet, printing, and common facilities, making budgeting easier.
3. Deposit: Both typically require a "three months' rent as deposit" payment (equivalent to three months' rent), but factories may offer more room for negotiation.
3.What other often-overlooked operating costs are there besides rent?
1. Factory: Utility costs are a major expense, especially industrial electricity rates and energy consumption by large equipment. Additionally, logistics transportation costs (depending on proximity to ports or highway exits), environmental protection fees, and potential special property management fees (such as 24-hour security and garbage removal) must all be factored in.
2. Office: Costs are relatively transparent. Main expenses include commercial utility bills, central air conditioning fees, internet charges, and standard property management fees. In shared office spaces, these are often bundled into a single price, simplifying management.
4.Which option is more advantageous from the perspective of policies and tax incentives?
Currently, leasing factory space—especially entering government-led industrial parks—often allows businesses to directly access more substantial policy benefits.
1. Factory (Industrial Park): Local governments frequently offer incentives to attract manufacturing industries, promote the real economy, and support high-tech development. These include tax rebates (e.g., 100% refund for the first three years), subsidies for equipment investment, talent recruitment incentives, and even direct rent reductions. Such policies are typically tied to specific industrial parks and are usually applied for collectively with assistance from the park operators.
2. Office Space: Policy benefits are relatively limited but may be concentrated in designated technology incubators or co-working spaces. Leasing office space within these recognized venues may also qualify businesses for startup subsidies, address registration services, and other forms of support.
5.Which option offers greater flexibility in scale adjustment?
Offices, especially under shared office models, have a decisive advantage in flexibility.
1. Office: Shared offices allow companies to add or reduce workstations or private rooms on a monthly basis—or even on demand—enabling rapid response to business changes. Although traditional office leases are long-term, adjustments remain relatively easier compared to factory spaces.
2. Factory: Leases are typically long-term (3–5 years), and space adjustments are inflexible. If business expansion requires additional space, companies may face the dilemma of no available factories in the same industrial park, potentially forcing relocation at high cost. However, this also depends on the factory’s location and whether there are favorable or supportive government policies available—factors that are equally important.
6.Which type of leased space is more conducive to corporate financing?
Although the act of leasing itself does not constitute an asset, leasing factory space—especially in high-quality industrial parks—conveys more positive signals to banks and investors.
Stability signal: Having a stable and compliant production base indicates the company's commitment to long-term operations, thereby reducing investment risk.
Policy endorsement: Being located in an industrial park supported by government policies is equivalent to receiving a certain level of official endorsement, which can enhance the company's credit rating. In contrast, leasing a regular office building sends a weaker signal.
7.What different impacts do they have on a company's stability and brand image?
1. Stability: The cost of relocating a factory is extremely high (involving equipment dismantling and reinstallation, production line downtime, and logistics disruptions). A forced relocation could result in losses ranging from tens to hundreds of thousands of dollars, causing delays in customer orders. Therefore, factory stability is critical. Office relocations have relatively smaller impacts.
2. Brand Image: Both can enhance brand image, but with different focuses. A modern industrial park factory demonstrates a company's production capacity, scale, and professionalism to clients and partners. In contrast, a luxurious office located in the city's core better reflects the company's financial strength, business credibility, and high-end service capabilities.
8.What are the differences in acquiring industrial cluster effects?
The clustering effect brought by factories moving into industrial parks is usually much stronger than that of office buildings. Within these parks, enterprises can easily connect with upstream and downstream suppliers and customers, enabling technology exchange, resource sharing, and even collaborative production, greatly reducing transaction costs. While office buildings also benefit from agglomeration effects in business districts (such as financial districts or science parks), the depth of industrial chain collaboration is generally not as strong as in manufacturing parks.
For Introduction to Services Provided by FactoryLink
1.Can your company provide business license registration services?
Yes, our company assists with and provides business license registration services, typically taking 1-2 months to complete the entire process.
2.When registering a company's business license, do I need to provide any documents?
1. Entity Qualification Certification: The business license or legal establishment certificate of the overseas investment entity must be notarized locally and authenticated by Chinese embassies or consulates abroad.
2. Determining Key Elements: Assist in determining the company's registered capital (China generally adopts a subscribed capital system, though certain industries such as finance and education still require actual payment), business scope (must comply with the "Negative List for Foreign Investment Access"), registered address (must be for commercial use), and management structure (at least one director and one supervisor, who cannot be the same person).
3. Submission for Approval and Obtaining the License: Depending on whether the industry is listed in the negative list, submit online registration or apply for approval to the commerce department. After obtaining either the "Acknowledgement of Establishment Filing for Foreign-Invested Enterprises" or the "Approval Certificate," submit documents to the Market Supervision and Administration Bureau to ultimately receive the "Business License for Corporate Legal Person." Upon approval, the business license is typically issued within 5–7 working days.
3.How do I apply for tax registration after my company's business license is issued?
Within thirty days of obtaining the business license, you must apply for tax registration with the tax authority.
1. Required documents: including a copy of the business license, company articles of association, bank account proof, and identification documents of the legal representative.
2. Key procedures: The tax authority will determine your enterprise's applicable tax types (such as value-added tax and corporate income tax), and issue a tax registration certificate. We will assist you in applying for invoices, handling general taxpayer qualification recognition for value-added tax (if required), and setting up your initial accounting system.
4.How to apply for licenses in special industries?
If your business falls within specific sectors, we will assist you in applying for the necessary administrative permits.
1. Special Industry Permit: Businesses engaged in industries such as hotels, pawnbroking, and seal engraving must apply to the public security authorities for a "Special Industry Permit." Requirements include a fixed business location, safety facilities meeting specified standards, and comprehensive public security measures.
2. Health Permit: Enterprises involved in food, catering, and public health sectors must apply to health and wellness authorities.
5.Can your company provide fire safety inspection or filing services?
We will provide coordination services regarding fire safety inspection or record-filing: all operating premises must pass inspections by the fire department before opening to ensure compliance with fire safety standards.
For Value-added and supporting services
1.What value-added and supporting services does your company offer?
We offer relevant government relations and public affairs (PR & GR) services.
We are not just process facilitators—we serve as your communication bridge with local government departments.
1. Policy Interpretation and Compliance Consulting: We promptly inform you of the latest economic and trade policies and legal updates, providing compliance recommendations.
2. Communication and Coordination: We assist you in effectively engaging with government agencies such as commerce, market regulation, taxation, foreign exchange management, and customs, helping resolve practical challenges during market entry and operations. We provide coordination mechanisms and contact channels, delivering "shop assistant"-style service.
3. Crisis Management Support: In the face of policy changes or public sentiment issues, we offer emergency strategies and communication support.
2.Do you offer related human resources and recruitment services?
Yes, we provide related human resources and recruitment services.
1. Talent Recruitment: Leveraging our local human resources service network, we precisely match the talent you need.
2. Compliance Onboarding: Ensuring full compliance with Chinese labor regulations, including contract signing and social insurance (five insurances and one housing fund) contributions.
3. Support for Foreign Employees: Offering consultation and assistance in obtaining work and residence permits for foreign employees who need to work in China.
3.Will you provide services related to company bank account opening and capital inflow?
Yes. We will provide you with the following support services:
1.Company Account Opening: We will assist you in opening a basic deposit account and a foreign exchange capital account at a Chinese bank, enabling you to receive overseas investment funds and manage daily operations.
2.FDI Foreign Exchange Registration: We will assist you in completing the foreign exchange registration for your foreign-invested enterprise (FDI) through your bank with the State Administration of Foreign Exchange, ensuring that capital funds are legally and smoothly remitted.
4.If I invest in China and establish a company or factory locally, what relevant services does your company offer to continuously support the operation and development of my business?
Once your company is established in China, if you purchase our services, we will provide long-term corporate support services as follows:
1. Accounting and Tax Filing: Our professional finance and tax team will handle your monthly/quarterly bookkeeping and tax reporting to ensure compliance with tax regulations.
2. Annual Reports and License Maintenance: We will assist with filing business annual reports and managing the annual inspection and renewal of relevant licenses.
3. Change and Cancellation Services: When your company undergoes changes such as equity, address, or legal representative updates, or when you need to cease operations, we offer full-service handling for the entire process.
5.I will invest in China and register a company there. Why should I choose your company?
Everyone knows that the Chinese market is the most promising and dynamic market in the world, vast and full of energy, presenting both opportunities and challenges.
Choosing us as your professional consultant means you gain a trusted local partner deeply familiar with Chinese business practices. We look forward to partnering with you to write a successful chapter in the Chinese market.
If you have specific investment plans or any questions, please feel free to contact us anytime for customized solutions.
Discover leading properties and secure your dream home with us. Expert guidance and support at every step.
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