Xiamen, as an important economic city Fujian Province, locates in the eastern coastal region of China. It enjoys natural advantages in developing its economy. It on the west coast of the Taiwan Straits, and is separated from Quemoy island only by a narrow stripe of water. Xiamen is a traditional trading port in southeast China and a famous tourist coastal city as well. Xiamen has a diverse and well-developed economy. Primary economic activities include fishing, shipbuilding, food processing, tanning, textiles, machine tool manufacturing, chemical industries, telecommunications and financial services. The city has economic and trade relations with 162 countries and regions worldwide, and benefits from foreign investment, particularly capital from Hong Kong, Macau and Taiwan.
The value added by the industrial enterprises above designated size was up by 8.1 percent, reaching 143.716 billion yuan and covering 33.0% of the whole city’s GDP.
By the end of 2017, Xiamen had 1,726 industrial enterprises above designated size, achieving a total industrial output of 591.497 billion yuan. The total output value from 678 enterprises with industrial output exceeding 100 million yuan each was 543.225 billion yuan, dominating 91.8% of the whole city’s above-scale industrial output.
In terms of the industrial enterprises above designated size, the heavy industry achieved added value of 94.713 billion yuan, an increase of 9.7% over the year 2016, while the light industry achieved 49.003 billion yuan with an increase of 5.2%. The ratio of added value between heavy industry and light industry was 1.93︰1.
Among the city’s industrial enterprises above designated size, 846 enterprises were from the pillar sectors of electronics and mechanics and accounts for 49.0% of the total. Their industrial output had taken up 68.2% of the total, reaching 403.127 billion yuan in 2017. Specifically, the industry output in electronics industry was 223.238 billion yuan, up by 12.8% and that in mechanics was 179.889 billion yuan, up 10.5%.
The city’s industrial enterprises above designated size accomplished 559.861 billion yuan of sales value and the sales-output ratio was 94.65%. The shipment value of exports was 212.517 billion yuan, increasing 6.2% from the previous year and the ratio was 38.0%. 229 companies had their respective exports shipment value exceed 100 million yuan, bringing in 190.206 billion yuan of the exports value in total, accounting for 89.5% of all the value made by the city’s large-scale industries enterprises. 56 enterprises had completed their respective increment more than 100 million yuan in terms of exports shipment value, with total increment of 25.623 billion yuan. Among these, the exports shipment value of 6 companies increased more than 1 billion yuan.
The industry above the designated size enjoyed a good composite economic index of 245.91, 15.98 points higher than last year. Of this, the contribution rate of the total assets was 10.17%, an increase of 0.45 percentage point year-on-year; the capital preservation and appreciation ratio was 110.58%, up by 4.61 percentage points; the debt to asset ratio was 51.10%, up by 0.91 percentage points; the turnover rate of circulating assets was 1.73 times, 0.09 times faster than last year; the profit margin of cost and expense was 6.56%, up 0.28 percentage points; the overall labor productivity was 240.1 thousands yuan per person, a net per capita increase of 20.6 thousand; and the accomplished profit was 34.013 billion yuan, 20.4% higher than last year.
The main industrial products made by the industrial enterprises above designated size were as follows: the volume of LCD screen was 134.42 million pieces , up by 6.1%; the integrated circuit was 183.28 million pieces, up by 47.5% over last year; the color TV was 6.99 million sets, down by 2.7% and the LCD modules was 10.42 million sets, down by 10.8% (see table 2).
Table 2 Production of Major Industrial Products in 2017
| |||
Items
|
Unit
|
Year 2017
|
Annual growth (%)
|
LCD screen
|
10 thousand pieces
|
13442
|
6.1
|
Integrated circuit
|
10 thousand pieces
|
18328
|
47.5
|
Cover tyre
|
10 thousand pieces
|
1957
|
10.4
|
Color TV set
|
10 thousand sets
|
699
|
-2.7
|
LCD module
|
10 thousand sets
|
1042
|
-10.8
|
Microelectronic computer
|
10 thousand sets
|
762
|
4.6
|
Cellular
|
10 thousand sets
|
326
|
47.8
|
Printed circuit board
|
10 thousand㎡
|
367
|
-0.2
|
Laptop computer
|
10 thousand sets
|
315
|
-5.2
|
Digital camera
|
10 thousand sets
|
154
|
24.0
|
Civil steel ship
|
10 thousand complex tons
|
21.07
|
232.3
|
Router
|
10 thousand sets
|
19.77
|
64.4
|
Motorcycles
|
10 thousand units
|
12.69
|
15.9
|
Bus
|
10 thousand units
|
4.84
|
-10.5
|
Xiamen Business Formation also can be understood as: Xiamen company setup, Xiamen corporate formation, Xiamen business setup, Xiamen company registration, Xiamen business establishment and Xiamen business registration.
To facilitate people who want to invest and set up business in Xiamen, here is an introduction of Types of business presence in China:
Before starting up a business in China, you have to know what are the options. Foreign Investors generally establish a business presence in China in one of five modes: Wholly Foreign Owned Enterprise (WFOE); Representative Office; Foreign Invested Partnership Enterprises (FIPE); Joint Venture and Hong Kong Holding Company.
Wholly Foreign Owned Enterprise (WFOE)is a Limited liability company wholly owned by the foreign investor. WFOE requires no registered capital and it's liability of equity , can generate income, pay tax in China and it's profit could be repatriate back to investor's home country. Any enterprise in China which is 100 percent owned by a foreign company or companies can be called as WFOE.
Representative Office (RO) is a LiaisonOffice of it's parent company. It requires no registered capital. It's activities would be: product or service promotion, market research of it's parent company's business, Quality Control liaison office etc in China. RO generally is prohibited to generate any revenue nor generating contracts with local businesses in China.
Joint Venture (JV) is a Limitedliability company formed between Chinese investor and Foreign investor. The parties agree to create a entity by both contributing equity, and they then share in the revenues, expenses, and control of the enterprise. JV usually been used by foreign investor to engage the so called restricted in areas such like: Education, Mining, Hospital etc.
Since March 1, 2010: Measures ofEstablishment of Foreign Invested Partnership Enterprises (FIPE) in China istaking effect. The regulation, which take effect since March 1, 2010, are known as the Administrative Measures for the Establishment of Partnership Enterprise in China by Foreign Enterprises or Individuals. There's no required minimum registered capital for a Foreign Invested Partnership Enterprise (FIPE) in Shanghai, Beijing, Shenzhen, Hangzhou and rest cities of China
Hong Kong Company usually been used as aSpecial Purpose vehicle (SPV) to invest Mainland China. Hong Kong is one of the quickest locations to Incorporate a business. Although a HK company is not a legal entity in Mainland China (Mainland China and Hong Kong, See Wiki 1 country, 2 systems), lots foreign investors, especially investors from Europe and North America still chose to setting up a Hong Kong company as SPV to invest China.
After China's entry to WTO, most industries in China welcome foreign investment, WFOE setting up in China becomes the first option of foreign investment's entity structures instead of Rep. Office setting up in China At the mean time, for tax purpose, effective licensing system etc more and more investors use Hong Kong as the holding company to invest China mainland, using this offshore company to hold their operations in China.
Business set-up in China is a big project by itself, which requires financial and time commitments, business management knowledge and China expertise. Identifying a competent agent to manage the complex process will be a cost and time effective way to avoid potential pitfalls
Since 2006, TCBC has been focusing on consulting services for our clients to invest in Xiamen China. We are specialized in establishment of wholly foreign owned enterprises (WFOEs), setting up of offshore companies, trading services, tax minimization, Assist in obtaining government approvals and certificates for running business,negotiate and draft various legal documents provide legal advice, negotiate government officer for Landacquisition. Advising on formation of WOFE and business structures, managing and controlling WOFE in Xiamen China, drafting privacy policies and structuring commercial transactions
TCBC will manage all aspects of incorporation to get you a business license in Xiamen China. We offer a range of company formation services including helping you to set up:
-Joint Ventures (Equity/Co-operative)
-Foreign Invested Partnership Enterprises (FIPE)
Contact Tom Lee for business setup consulting in Xiamen now.
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