China’s Trading Powers
The trading might of China is second only to the United States. Since national economy fluctuated in the past years, China’s import/export power plays a crucial role in the stabilization of the global economic landscape. This also ensures the sustained development of China’s domestic economy. On one side, as one of the troika of the economic growth and sustainability of China, the country’s import and export trade is also related to this incredible transformation and the upgrading of its domestic financial and economic structure. Another crucial factor to keep in mind is the deepening of global economic integration. What this means is China’s import and export trade is going to bring about unprecedented opportunities which will allow the deepening of international industrial divisions of labor cooperation along with promoting the stability of the international financial order. So, it makes sense for international enterprises to start a China Import Export Trading Company at this time.
It’s easy to see the benefits of a China Import Export Trading Company. The most common and acceptable business model for setting a trading business is trading WFOE (Wholly Foreign Owned Enterprise). This is a limited liability company with 100% shares owned by its foreign investors. It is crucial for a trading WFOE to be equipped with both an import and export license in order for it to be able to import or export commodities to and from China. The main reason for establishing a China Import Export Trading Company not is to return VAT, which is the most common way for foreign investors to invest in a business in mainland China.
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