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. |
Will China tax what you earn?
YES, A LOT. China taxes personal income heavily (top marginal rate 45%), and its definition of tax residence is wide: prolonged stay, economic centre of gravity, the net closes. The classic combo of high rate and broad catchment. Leaving is rarely as simple as buying a plane ticket.
Will China tax what you own?
YES, FAIRLY. Capital gains in China are taxed at 20%, and there's also an annual wealth tax above a threshold (top rate 1.2%). Held wealth is hit twice: once while it sits, once when it moves.
Is it easy to run a company in China?
NO. China sits at the high end with corporate tax at 25%, though an IP-box regime at 15% buys back some of the bill for IP-heavy businesses. Outside of qualifying IP income, the load is heavy.
Is China good for your holding company?
NOT REALLY. China carries an extensive treaty network (69 agreements), which cuts inbound withholding on cross-border flows. The missing piece is a participation exemption: dividends received from subsidiaries face the full corporate schedule (25%) unless the treaty does all the work alone. Useful for operations, not for a pure holding vehicle.
| Country | Status | Dividends | Interest | Royalties |
|---|---|---|---|---|
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| ∅ // no treaties match | ||||
What does it cost to come and go from China?
A LOT. Leaving China is the expensive half. Worldwide taxation while you're resident and an exit tax on unrealised gains at departure: the friction of leaving is real money, not just paperwork. This is the chain that catches sovereigns who think they can simply move.
Will China protect your privacy?
PARTLY. China has signed most of the standard exchange frameworks and operates a public corporate registry. Financial accounts are reported to your home tax authority, and your shareholdings are visible to anyone. Privacy is shallow on both axes.
Is China itself a liability?
NO. China is clear of every major blacklist (FATF, EU, France, Spain, Portugal, Brazil) and sits inside FATF membership. Dealing with this jurisdiction is reputationally inert: no flags follow the transaction.
Will you feel free in China?
NO. Press freedom in China is restricted (RSF rank #178). Civic space and independent media operate under pressure or not at all, a constraint that typically extends to financial expression as well, even where crypto isn't formally banned.
| Program | Status | Cross-border | Sources |
|---|---|---|---|
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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
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PILOT | — | announce → |
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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
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PILOT | YES | announce → |
Other jurisdictions worth comparing
Picked by similarity of strategic profile to China. No editorial ranking — neighbours in the same scoring space.