China’s Special Administrative Regions are Hong Kong and Macau. While Macau’s role is limited to gambling, doing business in Hong Kong plays an important role in trade and as business hub. Learn about the strategical advantages of the cities caused by their geographical location for trade in Hong Kong and Macau.
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Despite that the China Monetary Policy has been liberalized partially, the government continues to control the capital account. Exchanging the Yuan or Renminbi to other currencies is still restricted. The Yuan increasingly gains international significance mainly due to the size of economy and China Currency Policy.
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Customs in China are well-known to be meticulous about goods entering and leaving the country. Corresponding paperwork with respect to taxes, tariffs and certifications should be prepared neatly to avoid any troubles. Furthermore, also the China Customs Restrictions for banned items should be adhered.
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China visa requirements for citizens of Western countries are quite strict. The visa application process should be done in your home country, but Westerners can usually go without a visa to Hong Kong or Macau and also apply from there. Tourist, business and work visas are the most common types.
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Protectionist measures are increased reciprocally in a Trade War between countries. China Currency War & China Custom War tendencies are often seen. Initially limited to certain products, revenge intentions can escalate and hurt the economies of all countries. Regulations by the WTO are important to prevent conflicts.
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In contrast to most developing countries, China already has advanced infrastructure development in place at least for urban areas. China Infrastructure Spending on improvements accounts for 9% of its GDP annually. The country is eager to bring its infrastructure up to the level of a developed nation.
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China’s Main Trading Partners Relations have become much more important for both sides. Due to the focus on manufacturing and export, the most important Trade Partners of China are Western countries and industrialized countries in Asia. It is expected that other Asian countries become more important in the future.
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China Import and Export Fairs have lost significance due to the rise of online platforms, but a China Trade Fair is still useful if you want to get in touch with many suppliers in a short time. Furthermore, particularly Trade Exhibitions about niche product categories allow you to find related companies.
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The overall Business Cycle China trend is still towards GDP Growth. A Trade Cycle describes the normal economic development of alternating booms and recessions. However, it is difficult to see the Economic Cycle China in this context since it has seen growth for decades. Learn more about China's growth history.
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Tariff and Non-Tariff barriers to trade are the most common measures to control their exports and imports. Also for China trade barriers, the former is about raising taxes and the latter about introducing limits to the amount of goods traded. Less common China trade barriers are anti-dumping duties & export restraints.
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