Dear readers and friends of Simon Shang & Partners legal firm, I would like to introduce you today to our article for available incentives from different countries within different to assisting their local companies doing business with China.
Many nations, through their specialised government agencies, support their local companies with encouraging and assisting schemes, financial and operative, to provide assistance and incentives to promote and try to bolster local companies exports, investments and international business.
Today’s Chinese market is much inclined to importing foreign products than before, products of qualitative substance directed to the improvement of Chinese life style and Chinese production. There exist also local Chinese incentives for foreign investments into productions, manufactures, assembly and services. (We discussed this through the article we posted on the 30th of October of 2013 and titled China (Shanghai) Pilot Free Trade Zone).
We outline below some of these incentives. The countries mentioned below are taken at random as explanation to the reader, other countries run similar types of incentives and assisting schemes;
SACE is the Italian Government Agency that deals mainly with export credit and project finance. SACE assists and supports Italian companies by providing a wide range of insurance and financial products and services and guarantee loans granted by the bank to both Italian companies and foreign buyers. Please check on www.sace.it
Ubifrance, the French Trade Commission deals with international business affairs and development for French local companies. Ubifrance work for the promotion of exports of French products both manufactures and service products in conjunction with the OSEO, a local government agency promoting French innovation, providing assistance and Financial support to French SMEs. French local SMEs can receive loans of up to €80,000 for developing export business from Oseo, Oseo provides guarantees and financing with major activities dedicated to exports in prospecting foreign markets, pre-financing and loans. Oseo may at times enter in co-finance with French companies entering foreign markets together with affiliated financial institutions. In turn Oseo works in conjunction with the Coface Group, a French global credit insurance. The Coface Group acts as France’s export credit agency as well in support of French businesses. Please refer to; www.ubifrance.com www.bpifrance.fr www.coface.com
3) United Kingdom: (UK)
UKEF, is the UK’s export credit agency, helping exporters and investors by providing credit insurance policies, political risk insurance on overseas investments and guarantees on bank loans. UK Export Finance is the operating name of the Export Credits Guarantee Department (ECGD). Exporters can apply for loans, lines of credit, guarantees and insurance policies and UKEF is able to take on the risk of the loan from the bank so that the bank is more likely to offer it, it can provide guarantees to banks that offer loans to overseas buyers for purchasing UK exports, it provides insurance to UK exporters against non-payment by overseas buyers. UKEF has developed a £1.5 billion Direct Lending Scheme to provide foreign buyers special loans worth between £5 to £50 million to finance the purchase of capital goods or services from UK exporters. Loans can be made in different currencies as well. Sterling, US dollars, euro or Japanese Yen. Please refer to; www.gov.uk/government/organisations/uk-export-finance
All major countries in the world today offer their local producers, manufacturers and service companies some kind of incentives, help and advice for exporting, investing and internationalize their businesses. China being a major location for internationalization reflects the need for such measures. Many companies around the world still see China as a troublesome market for entering and expanding. In reality the Chinese market is an opportunity for many, the market is the biggest in the work, by volume, its people are big consumers and spenders with wide wishes for products especially foreign imported products.
With the help of the Hong Kong jurisdiction and business practices, foreign investors are faced with a wide array of business formulas and opportunities and today more than before the Chinese market welcomes foreign companies to explore the market.
Contact us for any request of information and get our advice on the procedures and methods for entering and expanding in the growing Chinese market.