IS ZHUHAI A VIABLE CENTRE FOR FOREIGN BUSINESS ACTIVITY?

The purpose of establishing one of the earliest special economic zones (SEZs) in Zhuhai was to attract foreign investment and advanced technology to develop local industry. It was designated as a SEZ for comprehensive development, including export processing, agriculture, tourism and real estate.

Foreign investment, especially from Hongkong and Macao, constitutes the major investment funding for local economic development in Zhuhai. In recent years, major companies from Japan, America and western Europe have also opened offices or set up joint ventures in Zhuhai. These include names like Canon, Casio, Mitsubishi, Brother, AT&T, Philips, Mobil, Coca-Cola, etc.

Since 1992, financial institutions from foreign countries have been permitted and encouraged to open their branch or office, or set up joint ventures with local financial institutions. Foreign invested enterprises have also been the locomotive for local exports. Over half of the total value of exports have been realised by foreign invested enterprises.

The comparatively peaceful environment, well-developed infrastructure and attractive investment legislation makes many people in China believe that Zhuhai is the most ideal city to live and work in and that it will attract increasing foreign investment in the years to come.

This solution offers information on:

§ a detailed geographic, demographic, economic and governmental profile of Zhuhai;

§ the legal framework for local law-making;

§ the legal framework for foreign business organisation and administration;

§ local tax incentives and measures for encouraging foreign investment;

§ regulation of contracts, labour management and land use rights; and

§ other activities or special areas.