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China Report

Entrepreneurial Missions Index

56.27

General Information

Population

1,338,299,512 (1st most populous country in the world)

Religions

Languages

Taoist
Mandarin
Buddhist Yue
Christian 4% Wu
Muslim 2% Minbei
Athiest Officially 100% Minnan
Xiang
Gan
Hakka Dialects
Other

Industries

Mining and ore processing, iron, steel, aluminum, and other metals, coal, machine building, armaments, textiles and apparel, petroleum, cement, chemicals, fertilizers, consumer products, including footwear, toys, and electronics, food processing, transportation equipment, including automobiles, rail cars, and locomotives, ships, and aircraft, telecommunications equipment, commercial space launch vehicles, satellites

Unless otherwise noted, all information included here was obtained from the World Factbook project 4, conducted by the Central Intelligence Agency (CIA). For more detailed information about China, visit https://www.cia.gov/library/publications/the-world-factbook/geos/cn.html.

Business Information

The World Bank ranks China as 0 out of 183 economies in terms of ease of doing business. The country ranks as 0 (of 183) in terms of ease of starting a business.

It requires 0 procedures, takes 0 days, and costs N/A% of income per capita to start a business in China.

The World Bank ranks China as 89th out of 183 economies in terms of ease of doing business.  The country ranks as 151st (of 183) in terms of ease of starting a business.

It requires 14 procedures, takes 37 days, and costs 5.9% of income per capita to start a business in China.

In order to start a business in China, one must follow these procedures:

  1. Obtain a notice of pre-approval of the company name
  2. Open a preliminary bank account; deposit fund in the account and obtain the certificate of deposit
  3. Obtain capital verification report from an auditing firm
  4. Obtain registration certification “business license of enterprise legal person” with SAIC or local equivalent
  5. Obtain the approval to make a company seal from the police department
  6. Make a company seal
  7. Obtain the organization code certificate issued by the Quality and Technology Supervision Bureau
  8. Register with the local statistics bureau
  9. Register for both state and local tax with the tax bureau
  10. Open a form bank account of the company and transfer the registered capital to the account
  11.  Apply for the authorization to print or purchase financial invoices / receipts
  12. Purchase uniform invoices
  13.  File for recruitment registration with local career service center
  14. Register with Social Welfare Insurance Center

Unless otherwise noted, all information included here was obtained from the Doing Business project 3, conducted by the World Bank. For more detailed information about starting a business in China, visit http://www.doingbusiness.org/.

 

The World Economic Forum (WEF) was founded in 1971 by Klaus Martin Schwab at the University of Geneva in Switzerland.  It is a non-profit foundation best known for its annual meeting in Davos, Switzerland, which brings together top business leaders, international political leaders, selected intellectuals and journalists to discuss both economic and social issues facing the world.  The WEF also serves as a think tank, and publishes a wide range of reports focusing on issues of concern and importance to Forum communities. In particular, Strategic Insight Teams focus on producing reports of relevance in the fields of competitiveness, global risks and scenario thinking.  The Global Competitiveness Report measures competitiveness of countries and economic competitiveness among a wide range of factors such as corruption, tax rates, work ethic, and many others.

 

China Economic Freedom

The annual survey Economic Freedom of the World is an indicator produced by the Fraser Institute, a libertarian think tank which attempts to measure the degree of economic freedom in the world's nations. Economic Freedom of the World index has been more widely used than any other measure of economic freedom, because of its coverage of a longer time period

Their measure of economic freedom is based on that the following standards:

  • Personal choice rather than collective choice,
  • Voluntary exchange coordinated by markets rather than allocation via the political process,
  • Freedom to enter and compete in markets, and
  • Protection of persons and their property from aggression by others.

A state will rate high when it focuses on protection of people and their property from the actions of aggressors, enforcement of contracts, and provision of the limited set of public goods like roads, flood control projects, and money of stable value and little else, but a country’s rating on the EFW summary index will fall as government expenditures increase and regulations expand.   

1A General government consumption spending as a percentage of total consumption 3.7
Area 1-A Data 27.3
1B Transfers and subsidies as a percentage of GDP 8.3
Area 1-B Data 6.8
1C Government enterprises and investment 0
Area 1-C Data 84.6
1Di Top marginal income tax rate 6
Area 1-Di Data 45
1Dii Top marginal income and payroll tax rates 0
Area 1-Dii Data 0
1D Top marginal tax rate 6
1 Size of Government: Expenditures, Taxes, and Enterprises 4.5
2A Judicial independence (GCR) 4.7
2B Impartial courts (GCR) 4.9
2C Protection of property rights (GCR) 6.6
2D Military interference in rule of law and the political process (CRG) 5
2E Integrity of the legal system (CRG) 7.5
2F Legal enforcement of contracts (DB) 6.7
2G Regulatory restrictions on the sale of real property (DB) 8.4
2 Legal Structure and Security of Property Rights 6.3
3A Money growth 9.1
Area 3-A Data 4.3
3B Standard deviation of inflation 9.2
Area 3-B Data 2.12
3C Inflation: Most recent year 9
Area 3-C Data 4.75
3D Freedom to own foreign currency bank accounts 10
3 Access to Sound Money 9.3
4Ai Revenues from trade taxes (% of trade sector) 9.5
Area 4-A(i) Data 0.8
4Aii Mean tariff rate 8
Area 4-A(ii) Data 9.9
4Aiii Standard deviation of tariff rates 7
Area 4-A(iii) Data 7.6
4A Taxes on international trade 8.2
4Bi Non-tariff trade barriers (GCR) 5.9
4Bii Compliance cost of importing and exporting (DB) 6.9
4B Regulatory Trade Barriers 6.4
4C Size of the trade sector relative to expected 10
4D Black-market exchange rates 10
4Ei Foreign ownership/investment restrictions (GCR) 6.5
4Eii Capital Controls 0
4E International Capital Market Controls 3.2
4 Freedom to Trade Internationally 7.6
5Ai Ownership of banks 2
5Aii Foreign bank competition 8
5Aiii Private sector credit 9.1
5Aiv Interest rate controls/negative real interest rates 10
5A Credit Market Regulations 7.3
5Bi Minimum wage (DB) 4.5
5Bii Hiring and firing regulations (GCR) 5.1
5Biii Centralized collective bargaining (GCR) 7.2
5Biv Mandated cost of hiring (DB) 0
5Bv Mandated cost of worker dismissal (DB) 1.6
5Bvi Conscription 0
5B Labor Market Regulations 3.1
5Ci Price controls 2
5Cii Administrative requirements (GCR) 4.8
5Ciii Bureaucracy costs (GCR) 4.7
5Civ Starting a business (DB) 8.1
5Cv Extra payments/bribes (GCR) 5.8
5Cvi Licensing restrictions (DB) 4.2
5Cvii Cost of tax compliance (DB) 4.4
5C Business Regulations 4.8
5 Regulation of Credit, Labor, and Business 5.1
SUMMARY INDEX 6.54
Rank c 82
 

China Summary

 

1 World Economic Forum

2 Free the World
Gwartney, James and Robert Lawson with Herbert Grubel, Jakob de Haan, Jan-Egbert Sturm, and Eelco Zandberg (2009). Economic Freedom of the World: 2009 Annual Report. Vancouver, BC: The Fraser Institute. Data retrieved from www.freetheworld.com.

3 World Bank Data

4 World Factbook Project