The People’s Republic of China is one of the East Asian countries. With over 1.3 billion people, about one sixth of the world population, is the most populous country in the world. The recognition of Communist China January 27, 1964 was the starting point of official relations between the People’s Republic of China and the French Republic. France has been the first major western country to appoint a full-Beijing ambassador. The bilateral relationship is characterized since 1997 by a strategic partnership resulting in a steady stream of high-level political exchanges and dialogue that encompasses all subjects, to the extent of the rise of China in all fields .
Official name: People’s Republic of China
Type of government: Republic
Head of State: President XI Jinping
Head of Government: Prime Minister Li Keqiang
Area: 9,561,000 km²
Capital: Beijing (Beijing)
major cities: Shanghai, Guangzhou, Tianjin, Chongqing, Wuhan, Chengdu, Shenyang
Official language: Chinese (Mandarin or Putonghua)
Common languages: Chinese, Cantonese, many local dialects
Currency: Renminbi (1 Euro = 7.1 RMB – exchange rate in early October 2015)
National Day: 1 October (proclamation of the founding of the People’s Republic of China)
Population: 1,368 (2014) billion people
Density: 143 / km² (2014)
Population Growth: 0.5% (2014) (World Bank)
Life expectancy: 75 years
Literacy rate: 95%
Religions: Buddhism, Taoism, Islam, Catholicism, Protestantism
Human Development Index: 0.719 (91th worldwide) (2013) (UNDP)
GDP (2014) in billions of dollars: 9469
GDP per capita (2014) dollar: 7572
growth rate (2014): 7.4%
Unemployment rate (2014): 4.1%
Inflation rate (2014): 2%
Budget balance (2014): -2% of GDP
Current account balance (2014): 209.8 billion dollars
Major customers: United States, European Union, Hong Kong, Japan.
Main suppliers: European Union, South Korea, Taiwan, Japan.
Share of main sectors in GDP (World Bank):
Exports from France to China (2014): 16.2 billion euros (+ 4% compared to 2013)
French imports from China (2014): 42.5 billion euros (+ 9.7% compared to 2013) (DGTrésor)
Site of the Directorate General of the Treasury: http://www.tresor.economie.gouv.fr/Pays/chine
Consulates: Hong Kong, Shanghai, Shenyang, Guangzhou, Wuhan, Chengdu and Beijing
French community in China in December 2014 (Hong Kong included): 31 334 (entered in consular registers)
China became the second largest economy ahead of Japan (in GDP) in 2010 and the first world exporter ahead of Germany, in 2011. The Chinese economy is nevertheless faces major challenges, including falling demand World. The 12th Five Year Plan, which defines the direction of China’s economic policies between 2011 and 2015, aims to introduce a more balanced growth model, sitting on more domestic demand. The next five-year plan (2016-2020) is currently being prepared and should be adopted at the annual parliamentary session in March 2016.
Since 2010, the pace of Chinese growth slows: it rose from 10.3% in 2010 to 7.4% of GDP in 2014. The IMF envisages an annual GDP growth of less than 7% in 2015.
The worsening of the widespread pollution of the marine, terrestrial and atmospheric (pollution of soil and coastal ecosystems to heavy metals, chemicals and industrial wastes into rivers, desertification of the northern plains, degradation associated with mining , acid rain, etc.) is of concern to the authorities, as much by social tensions that it generates, especially in rural areas, as its economic impact.
Main income sources: Living mainly in agriculture (rice, wheat, cotton, tobacco, corn, tea and sugar), livestock (pigs and poultry), fisheries, the the coal industry, oil, steel, chemical and computer and consumer products (electronics, textiles and toys), China is home to several international airports, the most important are located in Hong Kong, Beijing , Shanghai and Guangzhou.
Strengths / weaknesses
Barriers to entry
Good to know
The Renminbi (ISO 4217 : CNY), also known as Yuan, is the currency of the People’s Republic of China, except for Hong Kong and Macau which both have their own currencies. The People’s Bank of China, China’s monetary authority, issues and controls the currency.
In December 2014, the Yuan was the fifth most traded currency with 2.17 % of global payment. As a result, in November 2015, the IMF decided to add the Yuan to its basket of reserve currencies.
The Euro to Yuan exchange rate converts at 7.33 on May the 30th, 2016
Where to go?
How to settle there?
To do business
Personal Income tax
China applies a progressive rate from 3 to 45 %. Income tax is to be paid monthly.
|Monthly income (RMB)||Rate (%)|
|Up to 1,500||3|
|From 1,501 to 4,500||10|
|From 4,501 to 9,000||20|
|From 9,001 to 35,000||25|
|From 35,001 to 55,000||30|
|From 55,001 to 80,000||35|
(80000 RMB = 11,230 €, Jan 2016 )
Corporate Income tax
Corporate Income tax rate is 25 %.
The fiscal year starts on January 1st and ends on December 31st.
Tax provisions are to be paid either monthly or quarterly.
Thestandard rate is 17 %.
There is a reduced rate of 13 % and a super-reduced rate of 3 %, in particular for very small entreprises.
Most exports are not subject to VAT
There are 13 other types of taxes
Custom duties vary from 0 to 100 %. Each case is to be considered depending on the nature of the goods and the place of import. The minimum taxable value is 50 RMB ( 7€)
Temporay import, in particular for promotion, are tax free.
Tax calculation is based on CIF values.
|Type||In service||On order|
|B 737 (MPA)||2|
|AN 30 (EW)||4|
|Challenger 870 (Recce)||5|
|IL 76 A501 (AEW)||1|
|IL 76 KJ 2000||4|
|Tu 154 (EW)||3|
|Y 8 (EW)||17|
|Type||In service||On order|
|Type||En service||En commande|
|SH 5 (SAR)||3|
|Y8 (EW, Recce)||13|
|Y 8 (KJ2000) (AEW)||1|