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flag China China: Operating a Business

In this page: Setting Up a Company | The Active Population in Figures | Working Conditions | Cost of Labor | Social Partners

 

Setting Up a Company

Equity Joint Venture (EJV)
Number of partners: Minimum of one Chinese entity and minimum one foreign entity.
Capital (max/min): No minimum capital required, but at least 25% from foreign investors.
Shareholders and liability: Limited to the amount of contributions.
Co-operative joint ventures (CJV)
Number of partners: Minimum of 2 partners: one Chinese entity and one foreign entity.
Capital (max/min): No minimum capital required.
Shareholders and liability: Limited to the amount of contributions.
Foreign investment joint stock company, JSC
Number of partners: Minimum 2 partners.
Capital (max/min): Minimum capital needed: 5 million Rmb, 30 million Rmb if foreign capital.
Shareholders and liability: Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
Chine Holding Company (CHC)
Number of partners: Minimum 1 partner.
Capital (max/min): Minimum capital USD 30 million.
Shareholders and liability: Each shareholder contributes the same amount to the share capital and is linked to the company by its share of the share capital.
The Competent Organization
Ministry of Commerce
Search a Company or a Financial Report
Ministry of Commerce, Find an enterprise
 
Setting Up a Company China East Asia & Pacific
Procedures (number) 13.0 7.0
Time (days) 33.0 36.0

Source: Doing Business.

 
Business Setup Procedures
Consult Doing Business Website, to know about procedures to start a Business in China.
Registration and Operation of Enterprises in China

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The Active Population in Figures

20112013
Labor force 795,500,000797,600,000

Source: CIA - The world factbook

 
200920102011
Total activity rate -73.70%74.10%
Men activity rate 79.70%80.20%80.10%
Women activity rate 67.40%67.90%67.70%

Source: UN - United Nations

 
Employed Persons, by Occupation (% of Total Labor Force) 2004
Manufacture 27.3%
Wholesale and retail trade 17.6%
Other 16.2%
Construction 7.5%
Agriculture, Forestry, fishing 6.6%
Hotels and restaurants 6.2%
Education 5.4%
Transport, storage, communications 5.0%
Finance, Insurance 3.9%
Public administration 3.8%
Electricity, gas, water 0.4%
Extraction and Exploitation 0.1%

Source: Labor Force and Employment, allcountries.org

 
For Further Statistics
China statistics
National bureau of statistics of China
For Further Information About the Labor Market
ILO, International Labor Organization

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Working Conditions

Legal Weekly Duration
40 hours
Retirement Age
55 years for women and 60 years for men.
Working Contracts
Legal provisions govern the work contracts, the collective agreements and the individual negotiation supplement them.
Employment contract and recruiting conditions formalities are strict, which is not so for dismissal constraints which are rather flexible.
There are 3 types of contracts: the permanent contract, the fixed term contract and the contract for the project.
Labor Laws
Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

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Cost of Labor

Minimum Wage
CNY 1,160 per month (source: ILO, 2011).
Average Wage
Average monthly gross earnings in China is CNY 1,868 (USD 273).
Social contributions
Social Security Contributions Paid By Employers: 30%
Social Security Contributions Paid By Employees: 11%

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Social Partners

Social Dialogue and Involvement of Social Partners
While worker protests and work stoppages occur regularly, the right to strike is not protected by law. China has not ratified core International Labor Organization conventions on freedom of association and collective bargaining, and enforcement of existing labor regulations is poor. The Chinese Communist party recognizes only one trade union: "the All China Federation of Trade Unions" (ACFTU). The ACFTU is not an independent trade union, it thus cannot be the voice of the workers.
Unions
All China Federation of Trade Unions (ACFTU)
Labor Regulation Bodies
Ministry of Employment

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Last Updates: January 2015