One of the fastest growing economies in the world, hungry for foreign products.

The People’s Republic of China is the second largest importer of goods in the world. The growing middle class no longer wants only domestically produced products, the demand for quality products from the West has grown rapidly in the past years. A population of roughly 1.3 billion creates an opportunity for Western companies which want to sell their products in China.

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Since the early 1980’s the Chinese government started trialing with special economic zones across the country, Xiamen belongs to a select group of cities to have such a zone. From 2013 the Chinese government expanded the experiment with free trade zones, Shanghai is the pilot city for testing new policies. After a successful start in Shanghai the experiment was expanded to Fujian province, including Xiamen, in 2015. The ultimate goal of the free trade zones is to make it more attractive for foreign companies to invest in mainland China, therefor companies within the zones enjoy certain benefits.

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There are different kinds of companies that can be incorporated in China, the most used ones are:

  • Wholly Foreign-Owned Enterprise (WFOE);
  • JV Joint Venture;
  • Representative Office (RO);
  • State Owned Enterpeise (SOE);
  • Individually Owned.
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Xiamen Free Trade Zone

Since 1980 Xiamen has a special economic zone in the districts Siming and Huli, which form the island of the coastal city. To further promote investments from abroad the area was expanded with 0.62 square kilometer in 1992 and the Xiangyu free trade zone was born. More recently a pilot free trade zone was opened in Xiamen, expanding the Xiangyu zone to include the Haicang harbor. Within the pilot free trade zone it became even easier to invest from abroad. Additionally importing goods has become much easier within the free trade zone and there are several administrative advantages for companies within the zone. In the future it can be expected that Xiamen will receive even more advantages after successful experiments in the Shanghai free trade zone.

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Advantages of a company in the People’s Republic of China

Direct access to one of the biggest and fastest growing markets and direct control over your brand and product.

Having a Chinese company increases trust with your Chinese business partner and makes it easier to do business.

Excellent domestic banking system, conveniently integrated with many additional services.

For Chinese law you’re business Chinese legal person, thus equal to the Chinese counterpart in case of a dispute.


Our team works closely with the Chinese government and market leading business to help your business or product thrive in China.