APAC Spotlight: Doing Business in China
The most populous country in the world with the fastest-growing consumer market - here are the benefits of doing business in China
Located in East Asia, China is the most populous country in the world with a population of over 1.4 billion people. Spanning over five geographical time zones, it is the third largest country in the world by total land area.
China is also home to the longest river in Asia – the Yangtze – and the tallest mountain on Earth, Mount Everest, which sits on the border between China and Nepal.
Since its economic reform in 1978, GDP growth has averaged nearly 10% a year, and over 800 million people have been lifted out of poverty.
China is additionally the largest global manufacturer and exporter of goods in the world. With the second-biggest economy by GDP and the fastest-growing consumer market, the country is a global giant and is considered a highly attractive business prospect.
Considering expanding your business operations? Here are the three main advantages of doing business in China
1. Fast-growing economy
Currently the second largest in the world, China’s economy is growing extremely rapidly relative to its size and was expected to overtake the USA in GDP by 2030. But since covid-19’s worldwide impact on societies and economies, China is now expected to pass the USA in GDP by 2028.
The country’s prominence in the business sector continues to rise, with Chinese businesses now accounting for a substantial number of Fortune Global 500 firms.
The Chinese government has additionally taken steps to stabilise its debt levels by implementing stricter regulations and federal control over local government investment. By doing so, the country aims to mitigate risk within financial markets and maintain better management over their future profits.
2. Global leader in innovation
Over the past decade, China has become a global leader in the field of innovation, digitalisation and research and development. The country consistently remains one step ahead of the game when it comes to investing in technological advancements – e-bikes are now a common mode of public transport, payments are predominantly cashless, and e-commerce platforms are thriving on people’s thirst for on-demand consumption.
A country committed to innovation can largely benefit organisations looking to expand their global operations. Employers can relocate or hire their workers in China and open their business up to a wealth of ever-changing opportunities, boosting brand recognition and potential profits.
3. Rise of consumers
As a leader in country development, China has rapidly modernised over the last few decades. With innovation at the forefront of its investments, the country has transformed from an agrarian society with a traditional stance to a consumer-based society thriving from urban development.
China is renowned for its success in manufacturing, and with the industry market soaring, there is a huge demand for luxury goods, cars, mobile phones, and more.
Additionally, the rising demand for skilled labour has led to increased wages nationwide. With people earning higher salaries, consumers can afford to purchase dearer products, invest in their own education, and further contribute to the country’s economy. Meanwhile, international employers have access to a wider pool of skilled workers and high-purchasing consumers.
Expand into China with Mauve Group
Expanding overseas has never been easier. With full compliance and security, Mauve Group can employ and payroll your workers through our local representative.
Mauve’s Employer of Record solution allows employers to manage their business in countries where they lack their own entity. Employers can retain the management of their workers while Mauve deals with the local employment, payroll and HR responsibilities.
Our team of experts manage our solutions in-house and carry out due diligence checks on all local partners, providing peace of mind to employers that their worker is legally compliant with the local laws.
This solution can be engaged for short- or long-term assignments and is available to local nationals and expatriates.
If you would like to enquire about our global expansion solutions for China or another country, get in touch with us here.
The information provided has been checked for accuracy as of the date of publication, and is intended as a general guide and for information purposes. It is subject to unanticipated and unexpected changes and does not constitute legal advice.