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International Business

Why organizations are attacking at China

Submitted To: Submitted By:

Ma’am Khansa Asad Raza MB-10-9059

................................................................................................................................................................Institute Of Management Science Contents Contents.........5 7 Weihai Economic and Technical Development Zone ..................5 5 Guangzhou Nansha Economic and Technological Development Zone.............4 2 Suzhou Industrial Park ............................................5 2| Page .........................5 6 Chongqing Economic and Technical Development Zone ....4 3 Tianjin Economic and Technical Development Zone ................................................................................5 8 Xi’an Economic and Technical Development Zone ........................................................5 9 Qingdao Economic and Technical Development Zone ........................ 2 1 Dalian Economic and Technical Development Zone ........................................................4 4 Shanghai Minhang Economic and Technological Development Zone .........5 10 Changchun Economic and Technical Development Zone ................

It requires no registered capital. Any limited liability enterprise in China which is 100% owned by a foreign company. expenses. market research of parent company's business.Types of China: business presence in Foreign Investors establish a business presence in China in one of five ways: 1) WHOLLY FOREIGN OWNED ENTERPRISE (WFOE) 2) Representative Office 3) Joint Venture 4) Partnership Enterprise 5) Hong Kong Company WHOLLY FOREIGN OWNED ENTERPRISE It is a limited liability company wholly owned by the foreign investor. REPRESENTATIVE OFFICE It is a liaison office of its parent company. The parties agree to create a entity by both contributing equity. A JV has usually been used by foreign investors to enter the restricted in industries such as: Education. 3| Page . Hospital etc. JOINT VENTURE It is a limited liability company formed between a Chinese company investor and a Foreign investor. A RO is generally prohibited from neither generating any revenue nor entering into contracts with local businesses in China. Entertainment. pays tax in China and its profit can be repatriate back to the investor's home country. it can generate income. A WFOE requires registered capital and its liability is limited to its equity. quality control or contact liaison in China. individual(s) or companies can be called as WFOE. Mining. and they then share in the revenues. and control of the enterprise. Its activities are limited to product or service promotion.

2 Suzhou Industrial Park Through over 10 years’ development. Until the first half year of 2009. In 2008. The actual use of foreign capital is 550 million dollars. Through 24 years’ development.02 billion U. The following 10 main economic and technical development zones are the most famous zones which attract the most foreign investment 1 Dalian Economic and Technical Development Zone As the first economic and technical development zone. 3 Tianjin Economic and Technical Development Zone Tianjin development zone is the product of China’s opening up to the outside world.1 billion U.S. It refers to: a) 2 or more foreign enterprises or individuals establish a Partnership Enterprise (PE) in China and b) Foreign enterprise or individuals with Chinese individual or company establish a Partnership Enterprise in China. it has accomplished the investment in fixed assets of 11. dollars of foreign capital to arrive. PARTNERSHIP ENTERPRISE Foreign investor is a new type of business presence in China.5 billion U. dollars of foreign capital.S.8 billion U. a new registered 3.3%. numerous economic and technical development zones become one of the numerous options. Hong Kong is one of the quickest locations to incorporate a business. which increased by 15.14 billion Yuan. Tianjin development zone has established 4| Page . Although a HK company is not a legal entity in mainland China many foreign investors. the park has realized the GDP of 100.15 billion. and 1. dollars. It's a new type of business entity in China.S. of which 31. The total import and export volume reached 62. dollars of export. Dalian Economic and Technical Development Zone has always been the leader in the development zones.HONG KONG COMPANY It is often be used as a Special Purpose vehicle (SPV) to invest in Mainland China.S. especially investors from Europe and North America choose to form a Hong Kong company as a SPV to invest in China. Sector on which Foreign companies are attacking : For the foreign enterprise or personal who plan to invest in China. the major economic indicators of the park have increased by 30%. and this might take some time for local authorities to determine how these structures fit in with other types of business entity establishment.

With the optimization of the industrial structure.48%. 2004. in which.341 billion dollars. it has introduced over 2. Qingdao development zone has approved 18 foreign investment items. 6 in over 60 export processing zones. And the actual paid-in capital is 877 million dollars. Until April. Tianjin development zone realized the industrial output of 3350. the fastest developing speed and the best comprehensive benefits. it has introduced 427 foreign-funded enterprises from 22 countries. 2006. 4 Shanghai Minhang Development Zone Economic and Technological Till the end of 2007. 24 are entering enterprises. 7 Weihai Economic and Technical Development Zone Since the establishment of the development zone. In 2007.568 billion Yuan. The total investment value amounts to 3. Minghang development zone has introduced 171 projects.one of the best development zones which have the biggest scale. 2009. Nansha development zone realized the total output value of 30.7 billion dollars. It has totally 5| Page . In 2008. in which.077 billion dollars.95 billion yuan.67 billion yuan. The industrial output value is 85. The taxation volume is 7. The contracted foreign capital is 1. Over 700 of the items are foreignfunded enterprises. The total investment amounts to 2. 8 Xi’an Economic and Technical Development Zone Since the opening on April. It has introduced 9 items. The total investment is 2. it realizes the foreign export of 249 million dollars. 9 Qingdao Economic and Technical Development Zone Until June. 10 Changchun Economic and Technical Development Zone Since the establishment of the Changchun development zone. with a growth of 45. the total investment is 5. 6 Chongqing Economic and Technical Development Zone Chongqing Economic and Technical Development Zone was built with the approval of State Council in 1993. 12 items have capital increase.1419 billion dollars.673 billion Yuan.328 billion yuan. it has invested 10 billion dollars in the complement of the fundamental facilities. In 2007. 7 items have an investment of over ten million dollars. it has over 10 enterprises and core companies which have an average annual production value of 2 billion yuan. Xi'an development zone has attracted 32 items. 5 Guangzhou Nansha Development Zone Economic and Technological Until 2008.000 items with a total investment of 20 billion Yuan. it ranked No.

in which. 6| Page . 572 are foreign enterprises.approved 4819 enterprises. 29 enterprises are in the world top 500 companies.