Since 1979 when the Law on Chinese-Foreign Equity Joint Ventures was first introduced in China, the work of utilizing foreign investmentas an important subject of opening up to the outside world initiated as China 's fundamental principle.
Over the past 24 years, Chinese macro economic environment provided realistic guarantee and broad prospects for foreign investment. The national economy in the early period, increased by two digits, in the later period of the 1990s, the growing speed still reached at 7-8% each year. The GDP in 1997 stood at RMB 7,446.3 billion in 2000 at RMB 9,593.3 billion and in 2002 at RMB 10. 2398 trillion.
The facilities of hard environment in Chinahas been greatly improved or upgraded. The infrastructure constructions like transport, telecommunication, water, electricity and gas supply, etc. have been completely renovated.
Along with the favorable production management conditions, the soft environment for easy access to investment requirement has gradually been amended to its perfect. A one-stop service for examination and approval has been introduced in many local government organizations: offices of different functional departments are co-working to speed up the procedures. The laws and regulations have been reinforced to adapt to comfortable legal environment. Since China's access to the WTO, the commitments to the WTO entry, the opening degree of the industries are attached great importance.
Chinahas provided a number of preferential policies to stimulate overseas investment. For encouraged industries , such as infrastructure facilities, apart from the preferential terms, you can even expand your businessscope; for the purpose of promoting the economic development in middle and west China , the geographical policies are introduced to apply to different regions. Tax and Tariff preferences are the core issue that companies concern most. For foreign invested companies, the taxes may include corporate income tax, personal income tax, turnover taxes (value-added tax, consumption tax and businesstax), land tax, stamp duty, vehicle and vessel tax, urban real estate tax, etc.; for import and export, tariff and import-stage value-added tax may involved.
Along with China's opening door policy going on adopted in 1979, the opening zones with different orientations and functions have been extended down to various regions which include special economic zones ((Shenzhen, Zhuhai, Xiamen, Shantou and New Area of Pudong in Shanghai), national economic & technological development zones ( ETDZ ), national free trade zones ( FTZ ), national hi-tech industrial development zones ( HIDZ ), national Taiwanese investment zones ( TIZ ), national border & economic cooperation zones ( BECZ ), national export processing zones ( EPZ ), national tourist and holiday resort ( THR ). You or your companymay make a research and lock in a particular zone to test your choice
