Fine China rules

KEY POINTS

• Local presence may be advisable.
• Setting up a representative office.
• Reasons to use a Chinese subsidiary company.
• Implications of VAT replacing business tax on 1 May 2016.

In the aftermath of the Brexit decision UK businesses will be assessing the impact on their sales to overseas customers. Whether sales into Europe continue to dominate the UK export market remains to be seen. However the referendum result is prompting many businesses to consider new opportunities outside Europe for the first time or to increase effort into existing non European markets. The strategic imperative for and imminence of bilateral trade agreements by the UK is also encouraging such ambitions.

We have been party to many discussions on entry to the Chinese market. Careful research will be necessary into China’s segmented market...