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Trading in China

Trading in China

Trading in China has always been very important for the economy of the country and its international relations. The country is an increasingly important political and economic power and the country has been liberalizing important sectors of its economy. Import and export activities have been greatly influenced by the country’s accession to the World Trade Organization (WTO). China’s rapid economic growth and development, as well as its significant internal market, are two of the reasons why foreign investors turn their attention to this Asian country. China has made great efforts for transforming its foreign policies and encouraging development and investments. Our Chinese law firm is accustomed to working with foreign entrepreneurs in China and can help you if you want to start a trade business.

The trade business in China

A foreign invested enterprise in China that engages in trading activities is typically regarded as a foreign invested commercial enterprise (FICE) and its functioning is in line with the WTO commitments made by China. This type of company is easy to set up and, from a tax point of view, it must comply with the legal requirements for corporate taxation in China.

A foreign invested commercial enterprise is typically involved in one or more of the following activities:

– retailing;

– wholesaling;

– franchising;

– import and export activities.

Foreign traders in China can consider opening a legal entity in the country if they are interested in expanding their activities and dealing with logistics and quality control themselves. They can also use their own company to import goods to China and sell them directly. The trading company can also act as a liaison office for a foreign company which can thus employ staff in China. Our Chinese lawyers can help you with more information about company incorporation in China, especially the legal structures that allow full foreign ownership. In China, divorce procedures include litigation and registration. Divorce through litigation refers to a situation in which one party demands a divorce and the other party refuses, and the person requesting the divorce may file a lawsuit in court. If the court determines that the marriage has irreparably broken down, the divorce will be granted. If you need information about the registration procedure of a divorce in China, get help from our lawyers. 

If you want to know more about the trading in China, we invite you to watch the video below: 

China’s trading partners

The United States and the European Union are two of the most important trading partners with China. Hong Kong, Japan and South Korea are some of the other countries that are on the top trade list. China is an important trading partner for many other countries and it has been constantly recording trade surpluses.

If you are interested in knowing more about the trade policies and laws in China or want to open a company, you can contact our Chinese law firm