China
| Pros |
|---|
| World-class infrastructure and logistics networks for efficient global supply chain management. |
| High levels of physical security and low crime rates in major urban business centers. |
| Competitive corporate tax incentives for high-tech industries within specialized economic zones. |
| Cons |
|---|
| Extensive state surveillance and strict internet censorship restricting information flow and personal privacy. |
| Arbitrary regulatory enforcement and heavy state intervention in private business operations. |
| Systemic corruption and lack of transparent rule of law within the judicial system. |
Long story short: Here, the Party never really leaves your office: your bank accounts, your data, your partnerships, they all eventually need an official stamp, and one badly framed social media post can cost you your license. Getting money out of the country can turn into an obstacle course thanks to tight capital controls.
In exchange, you work with infrastructure that feels like science fiction: 300 km/h trains, rock-solid mobile networks, and 20-minute deliveries anywhere in Beijing. In the wealthy districts, street crime is close to nonexistent, even walking alone at 3am. The local banking system is solid but fully state-controlled: no surprise collapses, but no real freedom either.
A few more things worth knowing: food that's mind-blowingly good at every price point, a massive domestic market if you know how to crack it, people who are ruthlessly pragmatic in business, and a cost of living that stays gentle even in Beijing's nicest neighborhoods.
Will your income be taxed?
Long story short: YES, A LOT.
They'll shear you for up to 45% at the top marginal rate in China, and the taxman has long arms: linger a bit too long, park your economic interests here, and the net closes.
Steep rate, wide catchment: the classic combo of states that don't let go of their cash cows. Don't expect a plane ticket to fix it.
If you earn a year, you will pay .
Roughly effective, with a marginal rate of .
Will your wealth be taxed?
Long story short: YES, FAIRLY.
China takes 20% when you sell, and that's the whole story: no annual wealth levy, no inheritance regime.
The state waits for the value to move before reaching for it; while it sits, nobody touches it.
Easy to run a company there?
Long story short: NO.
China sits at the punchy end, with corporate tax at 25%, though an IP-box at 15% buys back part of the bill for IP-heavy businesses.
Outside qualifying IP income, prepare to get squeezed.
A good fit for a holding?
Long story short: NOT REALLY.
China carries an extensive treaty network (69 agreements) that cuts inbound withholding nicely.
The missing piece is a participation exemption: dividends coming up from subsidiaries eat the full corporate schedule (25%) unless a treaty does all the work on its own.
Good for operations; as a pure holding base, the domestic layer helps itself on the way through.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
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| ∅ // no treaties match | ||||
Easy to come and go?
Long story short: SOME.
China taxes your worldwide income while you're resident, but at least the exit is free: no exit tax on the way out.
Leaving costs you paperwork, not money; your unrealised gains walk out the door with you, untouched.
Is your money watched?
Long story short: PARTLY.
China has signed most of the standard exchange frameworks and runs a public corporate registry. Your accounts get reported to your home tax office, and your shareholdings sit in the shop window.
Watched on both axes: not wall-to-wall, but don't come here for discretion.
Is it blacklisted?
Long story short: NO.
China is clean on every major blacklist (FATF, EU, France, Spain, Portugal, Brazil) and sits inside the FATF club.
Wiring money to or from here raises zero eyebrows: no flags, no extra questions, no compliance officer waking up. Reputationally, a non-event.
Do you feel free there?
Long story short: NO.
Press freedom in China is locked down (RSF rank #178). Independent media and civic space operate under pressure (when they operate at all), and that kind of grip usually spills over into economic life too.
Small mercy: crypto isn't formally banned.
| Program | Status | Cross-border | Sources |
|---|---|---|---|
|
e-CNY
The main goal of e-CNY to provide a convenient, yet more efficient and secure retail payment system to increase financial inclusion, preserve monetary sovereignity, and to provide a "back up" payment infrastructure for the private sector payment solutions. Further, fair competition and interoperability should be promoted.
People's Bank of China
|
PILOT | — | announce → |
|
mBridge
mBridge offers a unique opportunity to improve international trade settlement.Given that the total value of international trade transactions between the four participating jurisdictions amounted to more than USD$730 billion according to the World Bank, the mBridge Steering Committee has given priority to this use case. Testing of sample trade settlement transactions across 11 industries has commenced on the trial platform.
Saudi Arabian Monetary Authority, Hong Kong Monetary Authority, People's Bank of China, United Arab Emirates Central Bank, Bank of Thailand
|
PILOT | YES | announce → |
Connected to the world?
Long story short: SOMEWHAT CONNECTED.
China is only half-plugged in, and it's the half that hurts. Stripe won't take local businesses: to charge cards you'll be shopping for workarounds (a foreign entity, a local PSP, a merchant of record).
Amazon, at least, delivers to your door. 5/11 of the services we track run here.
Other jurisdictions worth comparing
Picked by similarity of strategic profile to China. No editorial ranking — neighbours in the same scoring space.