On 16 May, Ecovis Beijing hosted an information event with a government delegation from Qingpu on the investment environment in Shanghai Qingpu. Representatives of the district government and the industrial park presented Qingpu as an investment location to the participating German companies. Our China expert Manuela Reintgen explained in the lecture what company founders in China should consider. Following the event, two German companies signed a cooperation agreement with the representative of the Qingpu Industrial Park.
The investment location Qingpu
The Qingpu district is located west of Shanghai near the Hongqiao junction. The population of Qingpu is 1.29 million. According to the “Shanghai 2035” plan, Qingpu plays an important role in Shanghai’s rise to become a cosmopolitan city.
China’s fourth largest airport and a German school are located in the east of Qingpu. The National Congress Center offers 1.5 million square meters of exhibition space. In 2018 over 3,000 companies took part in the “China-Import-Expo”.
Qingpu Industrial Park was established on November 25, 1995. The district government of Qingpu plans to create an industrial development zone of 16.1 km². Numerous Chinese and foreign companies are already represented in the industrial park: Vorwerk, Brose and Heidelberger Druckmaschinen are among the best-known German companies in the Qingpu Industrial Park. In Qingpu there are branches of the Chinese Internet giant Tencent, the French cosmetics manufacturer Nivea and the Japanese electronics group Hitachi. Huawei is currently building a research center in Qingpu for 1.3 billion euros.
Ecovis Beijing Lecture: Doing business in China
Manuela Reintgen, Senior Manager for Business Development at ECOVIS Beijing, gave a lecture on the most important framework conditions and trends for business activities in China.
Ms Reintgen described the most important steps in setting up a business in China: she explained the characteristics and tax burdens of different types of companies (VAT, local surcharges, stamp duty, corporation tax, business tax). When choosing a location, founders should take infrastructure, the labour market and local administration into account.
Ms Reintgen explained in her lecture the legal and tax innovations as well as their potentials and challenges for German companies. A central component of the innovations is the new Foreign Investment Act, which is intended to facilitate foreign investors’ access to the Chinese market.
Ms Reintgen concluded the lecture with the following forecasts: China would decide on further tax cuts to boost the economy and lift further restrictions on foreign investment. As a result of digitisation, public authorities will increasingly be more networked and have fewer overlaps.
Ecovis Beijing supports foreign small and medium-sized enterprises (SMEs) in the Chinese market. Our highly qualified and experienced international and Chinese team includes auditors (CPA), tax advisors (CTA) and lawyers (LL.M.) who provide tailor-made SME services at a reasonable price. You will find ECOVIS Beijing offices in Heidelberg, Beijing and Tianjin.
Business Development and Marketing Manager
Heading our Business Development and Marketing department, Manuela lived and worked in China from 2009 to 2017 and currently advises clients in- and outside of China from our Heidelberg office. She holds a diploma in Chinese, French and Law and has worked for several private and governmental institutions in both Germany and China before joining ECOVIS Beijing. Her focus is on foreign direct investment into China, she advises our clients on all aspects of establishing and doing business in China. Manuela is well versed in tax and legal regulations as well as main challenges and pitfalls SMEs encounter whilst managing their China entity.