China has many unique qualities that make it a compelling location to do business. Here are some of the reasons it is attractive to companies around the world.
Strong manufacturing industry
As the world’s largest manufacturing hub, China continues to be an excellent location for businesses to produce goods. By the end of 2023, there were over 3,600 manufacturing companies in the country, according to the China Association for Public Companies. Given the scale of this sector, there is the potential for partnerships when you’re running a business here.
Recent government efforts are also centred around boosting China’s advanced manufacturing industry. This includes more support in emerging areas like artificial intelligence (AI) and new energy, which can give businesses the confidence to operate in these fields in the country.
As a result of its manufacturing capabilities, China is a leading global exporter. Manufactured goods make up the majority of the country's exports, with electrical machinery and equipment being the most in-demand overseas. Vehicles, plastics and furniture also play a significant role in the China’s export dominance.
Major ports, such as Shanghai, Shenzhen and Ningbo-Zhoushan, are among the busiest globally, handling an immense volume of containers each year.
China’s exports reach markets around the world, with the United States, Vietnam, South Korea and Japan among the top destinations for Chinese goods, driven by strong demand across various sectors including electronics, machinery, and textiles.
China has signed over 20 Free Trade Agreements (FTAs) with other countries and regional blocs, including Australia, Mauritius, South Korea and the Association of Southeast Asian Nations (ASEAN). It also has a number of FTAs currently under negotiation as it looks to expand its treaty network.
These FTAs allow for tax reductions when you’re importing or exporting products to and from FTA partner nations.
In the coming years, you may expect to access even more markets via the Belt and Road Initiative. This ongoing infrastructure project aims to improve trade routes and can better connect your business to other parts of Asia, Europe and Africa.
By 2030, China is projected to have over one billion consumers, a 15% increase from 2024. A significant rise in its middle-class segment is helping spur a boom in local spending. As more individuals move into this bracket, their purchasing power may make China a favourable location to grow your customer base.
E-commerce has also been a major driving force behind the growth of China’s consumer market. Online platforms, such as Taobao/Tmall, JD.com, Douyin (TikTok), Pinduoduo and Xiaohongshu, are widely used among local consumers.
These channels not only showcase products but also serve as influential spaces where consumers can watch live-streaming and videos, share reviews, learn product functions and compare pricing before making purchasing decisions. This is worth exploring when you are catering to and attracting China’s digitally savvy consumers.
Increased ease of doing business
In recent years, China has implemented reforms that make it easier to do business. Various measures have helped streamline and simplify administrative procedures and reduce the time required to start a business. Lower corporate income tax rates and other incentives are also available depending on the size and sector of your business. Collectively, this may boost your capacity to compete, grow and invest in new opportunities with greater assurance.
