China will have cheap labor for at least another 50 years. This gives China a huge edge over other developing countries, and is a strong incentive for establishing local production in China.

       6. Foreign Investment:

1). Sino-foreign joint ventures
Sino-foreign joint ventures are also known as share-holding corporations. They are formed in China with joint capitals by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The main feature is that the joint parties invest together, operate together, take risk according to the ratio of their capitals and take responsibility of losses and profits. 

2). Cooperative businesses
Cooperative business is also called contractual cooperation businesses. They are formed in China with joint capitals or terms of cooperation by foreign companies, enterprises, other economic organizations and individuals with Chinese companies, enterprises, other economic organizations and individuals. The rights and obligations of different parties are embedded in the contract. To establish a cooperative business, the foreign party, generally speaking, supplies all or most of the capital while Chinese party supplies land, factory buildings, and useful facilities, and also some supply a certain amount of capital as well.

3). Exclusively foreign-owned enterprises
Exclusively foreign-owned enterprises, which are totally invested by foreign party in China by foreign companies in accordance with laws of China. According to the law of foreign-funded enterprises, the establishment of foreign enterprises should benefit the development of the China national economy and agree with at least one of the following criteria: the enterprises must adopt international advanced technology and facility; all or most of the products must be export-oriented.

4). Foreign-funded share-holding companies

Foreign companies can form foreign funded share-holding companies in China with Chinese    Companies. The total capital of the share-holding company is formed by equal shares, shareholders will take due responsibilities for the company according to shares purchased. Company will take responsibilities for all its debts through all its assets and the chinese and foreign shareholders will hold the shares of the company. 

       7. The Reasons of Your Company should be in China:

1). Access to Domestic Market. In many industries, the only way to access Chinese markets on a level playing field is to have a presence here. The reasons for this are the lower production costs, control of sales channels and shorter lead times, etc. In some cases only by developing markets today can one best target latent markets that are currently developing.

2). To Match Competitors. If one’s competitors are active in this market, then it may not be a good idea to cede this market to them. Establishing a China presence does not have to come with a large investment, and does not have to be all at once. Starting small, and then gradually expanding one’s presence is both feasible and in many cases desirable.