The Best Options for Foreign Investors to Start a Business in China: Company Formation VS PEO

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For years, international investors have had excellent opportunities in China and have achieved excellent results in terms of their brand growth in China.

The recent pandemic has slowed down the intentions of investors, as they are concerned about the economic situation in China. However, China has managed to come out and grow again, especially in the second half of the 2020s.

But is it still convenient for foreign investors to start a business in China?

In this article, we provide an overview of the recent Chinese economic situation and the options that international investors can use to start a business in China.


Is starting a business in China still convenient for small and medium companies?

The year 2020 was definitely one of the most difficult years in China. The pandemic forced millions of people to stop and start working remotely. Companies have closed their doors and many people have lost their jobs.

The Chinese government implemented restrictive measures to control the spread of the virus and little by little many companies have reopened allowing the country to close the year with positive results.

This difficult situation greatly impacted small and medium-sized companies and delayed the expansion plans of many foreign companies.

The question we want to answer now is:

“Is it still worthwhile for small and medium-sized foreign companies to invest in China?”

Overview of China’s economic situation

Since China began to open up and reform its economy in 1978, GDP growth has averaged almost 10 percent a year, and more than 850 million peop