Frontier & Gateway · current conditions as of 24 September 2026 · fundamentals reviewed 16 October 2026
🇨🇳 Doing business in China
Worlds second largest economy, complex but unmissable.
Long-term risk: Medium
What makes up the long-term score
Highlights: Massive market scale · Regulatory complexity · Geopolitical risk factor
Key industries
Manufacturing & Technology → Transitioning
China is the worlds factory producing 28% of global manufacturing output. Upgrading rapidly to high tech and advanced manufacturing.
Main investors: US, Germany, Japan, South Korea
Electric Vehicles & Clean Tech ↑ Rapid growth
China dominates global EV production with 60% market share. BYD, NIO and CATL are global leaders.
Main investors: Germany, US, South Korea, Japan
E-Commerce & Digital Economy → Stable
Alibaba, JD.com and Pinduoduo drive $2T+ in annual e-commerce. Digital payments via Alipay and WeChat Pay are universal.
Main investors: Domestic dominant, limited foreign
Financial Services → Selective opening
Shanghai is a major global financial centre. PBOC is internationalising RMB. Bond and equity markets are the worlds 2nd largest.
Main investors: US, UK, Germany, Singapore
Sector priorities
- EV & Clean Energy Supply Chain: China green technology dominance creating partnership opportunities for foreign firms in EV battery, solar and wind supply chains.
- Healthcare & Life Sciences: Ageing population and government healthcare investment creating significant medical device, pharma and hospital management opportunities.
- Advanced Manufacturing: Made in China 2025 creating partnership and technology licensing opportunities in robotics, semiconductors and aerospace.
Talent & work permits
China has the worlds largest graduate pool with 10M+ annual graduates. Mandarin is essential for most roles. English limited outside major cities.
- Foreign workers: Work permit Z visa required. Employer sponsored. Foreign talent points based system applies. Process takes 4 to 8 weeks.
- Localisation: No formal minimum localisation quota but practical and cultural expectations strongly favour local hiring at all levels.
- Key consideration: Local Chinese management is strongly preferred by government and customers. Investing in Chinese leadership pipeline is essential.
Summarised from our dataset and not yet linked to sources. Verify with local counsel before acting.
How to enter: first four steps
China market entry requires careful structure selection and regulatory navigation. WFOE is most common for operational control.
- Select entry structure: WFOE for full operational control, JV for restricted sectors, RO for initial market research
- Register with SAMR: State Administration for Market Regulation for business licence in chosen city
- Register with SAT: State Administration of Taxation for corporate tax, VAT and withholding tax registration
- Complete data and cybersecurity compliance: PIPL, DSL and Cybersecurity Law requirements must be addressed before launch
Indicative cost: 10-person team
Professional-services team (1 senior manager, 5 professionals, 2 admin, 2 support), Grade A office, registration, legal, audit and tax compliance. Model estimate, not a quote.
First year by industry (10 people)
Regulatory watch
- Feb 2026 · Data Export Rules Clarified: CAC issued updated guidance on cross-border data transfer security assessments.
Compare with Frontier & Gateway peers
Tap a market to see it side by side with China.
Common questions
Is China a good market to enter in 2026?
China has a long-term score of 6.7/10 on EmergingMarketIQ’s index (long-term risk: Medium) and scores 6.7/10 now, as of 24 September 2026. Worlds second largest economy, complex but unmissable. No direct exposure to the Iran conflict. Higher global oil prices (Brent above US$100 in late Sep 2026) and shipping disruption raise operating and logistics costs.
How much does it cost to set up a 10-person office in China?
Our cost model estimates about US$1.0M for the first year (≈US$81k per month run-rate plus ≈US$30k one-off setup) for a 10-person professional-services team; depending on industry the range is US$856k–US$1.2M. Indicative only.
What are the first steps to set up a company in China?
Select entry structure: WFOE for full operational control, JV for restricted sectors, RO for initial market research Then: Register with SAMR: State Administration for Market Regulation for business licence in chosen city Then: Register with SAT: State Administration of Taxation for corporate tax, VAT and withholding tax registration Then: Complete data and cybersecurity compliance: PIPL, DSL and Cybersecurity Law requirements must be addressed before launch
Source: EmergingMarketIQ country dataset. Current conditions and alerts updated 24 September 2026; GDP (World Bank 2025) and FX 24 September 2026; structural scores reviewed 16 October 2026. Rules, rates and conditions change, so verify with local counsel before acting. Not legal, tax or investment advice.