China has long been an appealing locality for corporations to relocate to. In addition to a lower corporate tax rate of 25%, China offers a healthy incentive package for foreign investors along with low labor costs and a buyer’s market of over 1.3 billion.
China’s SEZs originated in 1980 in four small towns on the southeastern coast of China. These now large cities are Shenzhen, Zhuhai, and Shantou in Guangdong province and Xiamen in Fujian province.
Today, there are also SEZs in Hainan Province, Hunchun, and Shanghai. In addition to the benefits for investors, SEZs have had profound benefits to China.
They have contributed 22% of China’s GDP in the last few years and created 30 million jobs. Moreover, SEZs account for 45% of the total national foreign direct investment.
Moreover, corporations investing in integrated circuit production enjoy a 5+5 years tax holiday under certain conditions. These incentives save investors a substantial amount of money.
In summary, for those looking to invest abroad, China offers appealing rewards for those with the capital to stimulate economic growth by investing in key localities.
Edward Lehman, Managing Director of Lehman, Lee & Xu China Law Firm remarks,
“China is the greatest economic transformation in the history of the world. Companies once came to China for low cost labor to aid in manufacturing. Now they come to China to sell to the Chinese.”
Edward Lehman, Managing Director of Lehman, Lee & Xu China Law Firm
Lehman, Lee & Xu is one of the oldest private Chinese law firms, and specializes in providing company establishment, corporate transactions support, intellectual property protection and enforcement, accounting and taxation services, and visa and immigration services for foreign companies doing business in China.
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About the author: Jon Velie has practiced Immigration law since 1993. He is CEO of OnlineVisas.com., a revolutionary Immigration platform and global Immigration network. Jon is an Amazon number one best-selling author of H1B Visa: Application & Approval, is regularly covered by major media and has won a number of international awards. Jon can be contacted at firstname.lastname@example.org or 405-310-4333 office or 405-821-5959 mobile.