Chongqing Key Industries, Company Registration Set Up Business In Chongqing China

Chongqing is the world’s fastest growing city and is the most economically important city in western China. Chongqing is one of four municipalities directly controlled by the central government. Surrounded by rich water reserves, mineral resources, dense forests and abundant fauna and flora, Chongqing is the main berth for sightseeing boats en route to the Three Gorges Dam, which serves as a major source of hydroelectric power in the region.

Once part of Sichuan Province, Chongqing became a municipality in 1997 and consists of 21 districts, 13 counties and four autonomous counties. Chongqing covers an area of 82,400 square kilometers and is an important manufacturing and industrial base. It is also a prominent modern port city on the upper Yangtze River.

Chongqing’s GDP grew 10.9 percent in 2014, and in just the first quarter of 2015 it grew 10.7 percent, 3.7 percent higher than the national average. Listed as one of China’s 13 emerging megacities by the Economist Intelligence Unit, the municipality boasts an impressive infrastructure to support export/import activities.

Key Industries

Industry accounted for 45.8 percent of Chongqing’s GDP in 2015, while services contributed 46.8 percent. The city emerged from industrial origins and now serves as the country’s center for automobiles, military, iron, steel and aluminum production. Heavy industry accounted for 73 percent of the municipality’s gross industrial output in 2013, and the electronics and related industries grew from 11.4 percent in 2012 to 13.5 percent in 2013. Chongqing is also a bustling retail and wholesale goods center and hosts a growing number of local and foreign retailers.

The Chongqing municipal government issued a national strategy called the ‘One Belt, One Road’ plan. This development project promotes Chongqing as the western hub of the Yangtze River Economic Belt for shipping and logistics.

Key industries in Chongqing for U.S. exporters include:

Automobiles

Motor vehicles, trailers, bicycles, motorcycles and other similar vehicles were among the top imports for Chongqing in 2014. With its rapidly growing middle class and rising disposable income (up 9.1 percent in 2014), Chongqing demand for automobiles is growing. The city serves as a gateway to the southwestern, eastern and southern China auto markets. It imports approximately 60,000 vehicles each year and ranks third in China for Chinese luxury cars sales, making it a vital market for U.S. auto industry exporters.

Chongqing is also China’s third largest automotive manufacturing city and has begun to invest in automotive research and development (i.e., importing new energy vehicles).

Overall, China is both the largest manufacturer and consumer of vehicles in the world. Automobile imports in 2013 totaled 1.17 million and rose to 1.42 million in 2014. In 2014, vehicles were also among the top ten exports to the U.S., an industry worth more than US $136 billion and 8.4 percent of total exports to the U.S.

Medical and Technical Equipment

Optical, medical, photographic, scientific and technical instruments are all important imports for Chongqing. Medical & technical equipment account for 5.2 percent of total U.S. exports worldwide (US $85 billion), and American companies are the main source of China’s imported medical devices. Until recently, the majority of China's healthcare expenditures were for basic care and equipment. Now there is growing demand for technologically advanced medical devices.

China has an aging population, and over 85 percent of its 16,000 hospitals are state-owned. These hospitals specifically seek out U.S. manufactured, high quality medical equipment. Thus, while domestic manufacturers can supply low to mid-range products, high-end, technologically advanced products are sought out. Additionally, the Chinese government is investing in a technological education center in Chongqing which could provide attractive opportunities for American exporters.

Machinery and Electronics

Machinery and electronics are top imports for Chongqing. Mirroring this, machines, engines, and pumps also top the list of U.S. exports (US $219.8 billion and 13.6 percent of total exports), followed closely by electronic equipment (US $172.4 billion and 10.6 percent of total exports). Chongqing provides a market ready for American machinery and electronics.

 Click here for Chongqing Business Setup Foreign Investment Environment 

To facilitate people who want to invest and set up business in Chongqing , here is an introduction of Types of business presence in China: 

Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise (WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.

Wholly Foreign Owned Enterprise (WFOE) is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.

Representative Office (RO) is a Liaison Office of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.

Joint Venture (JV) is a Limited liability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.

Since March 1, 2010: Measures of Establishment of Foreign Invested Partnership Enterprises (FIPE) in China istaking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Guangzhou, Shenzhen, Hangzhou and rest cities of China

Hong Kong Company usually been used as a Special Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.

After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in China becomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China. At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.

Business set-up in Chongqing is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls . Tommy China Business Consulting has direct connections in the local government

Since 2006, TCBC has been focusing on consulting services for our clients to invest in Chongqing China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business, negotiate and draft various legal documents provide legal advice, negotiate government officer for Land acquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Chongqing China, drafting privacy policies and structuring commercial transactions

TCBC will manage all aspects of incorporation to get you a business license in Chongqing  China. We offer a range of company formation services including helping you to set up:

-Wholly Foreign Owned Enterprises (WFOE )

-RepresentativeOffices

-Joint Ventures (Equity/Co-operative)

-Foreign Invested Partnership Enterprises (FIPE)

-HongKong Holding Company.

  

Contact Tom Lee for company registration in Chongqing now