An Introduction to Doing Business in China 2023
Published: December 2022Doing Business in China 2023 is designed to introduce the fundamentals of investing in China. Compiled by the professionals at Dezan Shira & Associates in December 2022, this comprehensive guide is ideal not only for businesses looking to enter the Chinese market, but also for companies who already have a presence here and want to keep up-to-date with the most recent and relevant policy changes.
2022 turned out to be a difficult year for businesses operating in China. Unexpected lockdowns caused by COVID-19 outbreaks, weak consumption trends, a struggling real estate sector, and newfound geopolitical tensions caused serious disruptions to supply chains and damped global business confidence in the country.
Still, the actual use of foreign direct investment (FDI) in mainland China expanded in the first 10 months of 2022 – growing 14.4 percent year-on-year to over US$152 billion from January to October. The whole year’s FDI is expected to create double-digit growth.
Another silver lining has emerged out of the tough challenges overcome in 2022 – an easing of the zero-COVID policy may now be in sight, with Beijing proposing an easing of measures. Economists expect China will fully reopen in the second half of 2023, pushing GDP growth to around five percent from three percent in 2022. Industries in line with Beijing’s policy priorities, such as healthcare sector, green sectors, consumer market, and sectors related to industrial automation, are expected to be the biggest beneficiaries.
Under these circumstances, it is vital that foreign investors are familiar with the changes happening in China’s business landscape – to identify areas of risk in advance and take steps to prepare for new market opportunities. This is the only way investors can stay nimble in an otherwise difficult time.
Designed to introduce the fundamentals of investing in China, this publication is compiled by experts at Dezan Shira & Associates, a specialist foreign direct investment firm providing corporate establishment services, business advisory, tax advisory and compliance, accounting, payroll, due diligence, and financial review services to multinationals investing in emerging Asia.
Since its establishment in 1992, the firm has grown into one of Asia’s most versatile full-service consultancies with operational offices across China, Hong Kong, India, Singapore, Vietnam, and Indonesia. The firm also maintains partner firms across the ASEAN region and in Bangladesh and client liaison offices in the United States, Europe, and Russia.
Doing Business in China 2023 covers the following:
- Establishing and Running a Business
- Tax, Audit, and Accounting
- Human Resources and Payroll
- Cybersecurity and Data Protection
Within these chapters, we discuss a range of different topics that affect doing business in China, including investment models, intellectual property considerations, key taxes applicable for foreign companies, various types of employment contracts, and a chapter explaining the evolving data and cybersecurity compliance requirements in China.