2021 World Investment Report

Foreigners are allowed to buy their property only after having worked or studied in China for at least one year.  They are only entitled to own one property in China and it must only be used for residential purposes.  Commercial or industrial property can only be purchased after a company has been incorporated in China.

Risk of Expropriation

The risk of expropriation is high. Article 20 of the Foreign Investment Law of the People's Republic of China stipulates that the government shall not expropriate investments made by foreign investors. Only in special circumstances (national security and obstacles to large civil engineering projects), the State may expropriate or requisition an investment made by foreign investors for public interest in accordance with the law. Such expropriation or requisition shall be carried out in accordance with the procedures of law and fair and reasonable compensation shall be given in a timely manner.

• According to the Notice on Implementing the Policy of Inclusive Tax Relief for Small and Micro Enterprises, published by the Ministry of Finance in January 2019, China expanded existing preferential policies for small and low-profit enterprises.
• Companies with annual taxable income below RMB 1 million (US$147,290) per year can benefit from a preferential corporate income tax (CIT) rate of 20 per cent, they are only taxed on 25 per cent of their income, while the remaining 75 per cent is tax-free.

• Manufacturing sector, automobile industry, information and communication technology, aeronautics, energy (including nuclear energy), services, finance, building, tourism, health, agriculture, mining extraction, health, online sales (largest world market), transport infrastructure