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Doing Businessin China 2026 Special Focus Why Global CompaniesContinue Investing in China THE DOING BUSINESS IN ASIA GUIDES SERIES Available to Download Now: Doing Business in China Portal •ASEAN guide•Hong Kong guide•India guide•Indonesia guide•Singapore guide•UAE guide•Vietnam guide Our latest online Doing Business in China Portal consistsof 100+ guides, videos, publications, and tools that arepractical and easy to navigate, covering: Why China,Regions to Invest, Sector Insights, How to Setup, Tax,Audit and Accounting, HR, Recruitment, PEO, and Payroll,News, Events, and more. This edition of Doing Business in China was produced by a team of professionals atDezan Shira & Associates, with Qian Zhou as editor.Creative design of the guide was provided by Aparajita Zadoo. © 2026, Dezan Shira & Associates. Disclaimer The contents of this guide are for general information only. For advice on your specific business, please contact a qualified professional advisor.Copyright 2026, Asia Briefing Ltd. No reproduction, copying or translation of materials without prior permission of the publisher is permitted. About Dezan Shira & Associates Dezan Shira & Associates is a pan-Asia, multi-disciplinary professional services firm, providing legal, tax andoperational advisory to international corporate investors. Operational throughout China, India and ASEAN,our mission is to guide foreign companies through Asia’s complex regulatory environment and assist themwith all aspects of establishing, maintaining and growing their business operations in the region. With over30 years of on-the-ground experience and a large team of lawyers, tax experts and auditors, in addition toresearchers and business analysts, we are your partner for growth in Asia. Introduction ALBERTO VETTORETTIManaging PartnerDezan Shira & Associates China enters 2026 amid a complex global environment. Geopolitical tensions, particularly inChina-US relations, continue to shape trade and investment flows, while local competitorsintensify pressure on foreign firms. Yet, despite these challenges, China remains indispensablefor global investors. With a population of over 1.4 billion and a rising middle class, China offers consumptionpotential unmatched by most emerging markets. Retail sales reached RMB 41.2 trillion inthe first 10 months of 2025. Meanwhile, China’s integrated manufacturing ecosystem andlogistics infrastructure provide efficiency and resilience that few markets can replicate. Chinaoffers unmatched speed in product development, new technology adoption, and supply chainefficiency – capabilities that often set global standards. For many firms, being in China is notjust about serving local customers; it’s about staying competitive worldwide and anticipatingfuture rivals. This explains why 53,782 new foreign-invested enterprises (FIEs) were registered in the countryin the first 10 months of 2025, up 14.7 percent year-on-year, despite total foreign investmentdipping during the same period. Foreign investors are still entering China, though they aredoing so more cautiously. In terms of noticeable regulatory changes for doing business in the country, 2025 saw therelease of new government procurement rules favoring domestic products (effective January 1,2026); tax supervision tightened and compliance became critical; data governance advancedwith the Cybersecurity Law amendments and personal information protection audit rollout.Moreover, key actions indicated that China increasingly emphasizes the importance of usingcompliant service providers – whether legal, tax, or bookkeeping. An Introduction to Doing Business in China 2026equips investors with up-to-date and practicalinsights into market entry, regulatory compliance, and operational strategies under evolvingconditions. Whether you are planning expansion or optimizing existing operations, this guidehelps you navigate China’s opportunities and challenges with clarity and confidence. CONTACT Dezan Shira & Associateschina@dezshira.comwww.dezshira.com Why China in 2026 China remains a vital and irreplaceable market for global companies, even as the businesslandscape evolves and operational challenges increase. The country’s unparalleled scale, speed,and innovation capacity – anchored by a vast consumer market, highly efficient supply chains,world-class infrastructure, and a skilled workforce – continue to offer competitive advantagesthat are difficult to replicate elsewhere. Emerging policies such as strengthened “Made-in-China”procurement requirements further reinforce the strategic importance of maintaining a stronglocal manufacturing footprint. For forward-looking executives, the priority is not withdrawal butsmart adaptation: optimizing operations on the ground, aligning with local policy direction, andleveraging China’s unique strengths to maintain global competitiveness. Vast and dynamic domestic market China remains one of the most compelling consumer markets globally, driven b