United Kingdom

China 

City skyline at night

 

What does China mean for your business? China’s rapid economic growth has made it one of the world’s largest economies today. This growth looks set to continue with the Economist predicting that it will be the world’s largest economy by the end of 2019.*

 

It is likely that China will remain unmatched by other developing countries for many years to come, in terms of efficiency of government administration such as tax rebates and customs clearance as well as infrastructure such as roads, rail, and ports. Nevertheless, Chinese wages are rising, no longer making it as cheap as it once was to outsource manufacturing. There is a clear shift up the manufacturing value chain. Analysts say that in this era of rising wages the biggest winners are likely to be in China’s service sector – includ­ing tourism, online shopping, healthcare, and financial services.

 

*source: Financial Times (FT.com China) – When China becomes number one

KPMG’s extensive network and Global China Practice offer a number of services to help you address the challenges of expanding into China to take advantage of its economic growth. These services include market entry feasibility studies, tax planning and compliance advice and global supply chain management.

 

Contact

Aman Wang

 

Aman Wang

 

Senior Manager 
KPMG LLP (UK)

 

020 7311 4905

aman.wang@kpmg.co.uk

Major expansion of VAT reforms progressively from 1 August 2012

On 25 July 2012, China’s State Council decided that the Value Added Tax (VAT) pilot program, currently in force in Shanghai, will be expanded progressively from 1 August 2012. In its simplest form, the VAT reforms seek to replace Business Tax (BT) with a VAT.

 

The VAT pilot program is to be expanded to 10 locations in China between 1 August 2012 and 31 December 2012. This decision to expand the pilot program to major commercial centres around mainland China during 2012 is testament to the early success of the Shanghai pilot program, and reflects a commitment to achieving substantial reform of the indirect tax system in China. According to the National Bureau of Statistics, approximately 70 percent of businesses in Shanghai have so far benefited from a reduction in their tax burden as a result of the pilot program. With over 150 countries around the world having now implemented a VAT, these reforms should also more closely align China’s system of indirect taxes with best practices globally.

 

  • Click here to read further insights

 

China's chemicals sector: Reinvigorated by the Sustainability Agenda

China is the world's second biggest consumer of chemicals, and chemical makers have long derived benefits from the low cost of labour, cheap infrastructure, favourable government policies and an immense market. The industry is now in a process of transition, reaching for new growth drivers. Part of this is developing capabilities in speciality chemicals and high-end polymers. In addition, a distinct shift is underway as governments and enterprises eye a green revolution.

The Future for MNCs in China

future for mncs in china publication

 

The fate of China and the world’s multinationals is bound tightly together. In the past two decades, both benefited from the spectacular growth in global trade and investment: China’s share of the global economy rose from four percent in 1990 to fourteen percent today, even as the world’s multinationals saw their combined share of the global economy reach 25 percent and sales by foreign affiliates grow to USD32 trillion¹.

 

¹UNCTAD, World Investment Report 2011

 

  • The Future for MNCs in China

 

Doing business in High Growth Markets

Doing business in High Growth Markets

     

    Watch the compelling new KPMG film on High Growth Markets to gain further insight and hear from our clients and our people on what it takes to succeed in this exciting economy

 

International Strategy

International Strategy

    International Strategy and internationalization means different things to different businesses - from exporting goods, to manufacturing goods for import; from supply chain management, to supplying booming consumer markets in High Growth Markets; from tax structuring to structuring transactions. There is no one-size-fits-all strategy which comes with the guarantee of success.

High Growth Markets Magazine

High Growth Markets Magazine

 

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Useful links

China – Looking ahead, published by International Tax Review in association with KPMG in China, examines how China’s tax system might change if it is to fulfil 5YP goals. (Link will open in a new window)