China

Coming out ahead in the post-pandemic world, but not without risks

B2

MEDIUM RISK for entreprise

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

  • Economic risk

  • Business environment risk

  • Political risk

  • Commercial risk

  • Financing risk

Last updated in July 2021.

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GDP USD 14722bn (World ranking 2, World Bank 2020)
Population 1402mn (World ranking 1, World Bank 2020)
Form of state One-party state
Head of state Xi Jinping (General Secretary of the Communist Party)
Next elections None
  • Large domestic market
  • Improvement in macro-prudential management
  • External position and fiscal position (to lesser extent) are relatively solid
  • New growth opportunities as the country moves up the global value chain, and the services sector develops
  • Increasing market orientation and opening of the domestic market
  • High corporate debt, rising household debt
  • Industrial overcapacity
  • Strong involvement of the public sector in the economy
  • Continued geopolitical tensions with key countries in the region and the U.S.
  • Competitiveness erosion for traditional manufacturing sectors
  • Aging population

Trade structure by destination/origin

(% of total)

Exports Rank Imports
United States 17.5%
1
9.8% Taiwan
Hong Kong 10.5%
2
8.5% Japan
Japan 5.5%
3
8.4% South Korea
Vietnam 4.4%
4
6.6% United States
South Korea 4.3%
5
5.6% Australia

Trade structure by product

(% of total)

Exports Rank Imports
Electrical machinery, apparatus and appliances, n.e.s. 15.1%
1
23.3% Electrical machinery, apparatus and appliances, n.e.s.
Office machines and automatic data processing machines 10.7%
2
9.9% Petroleum, petroleum products and related materials
Telecommunication and sound recording apparatus 9.7%
3
9.2% Metalliferous ores and metal scrap
Miscellaneous manufactured articles, n.e.s. 7.0%
4
5.3% Office machines and automatic data processing machines
Textile yarn and related products 6.0%
5
3.7% Professional and scientific instruments, n.e.s.
As a result of the rebalancing policy in China, direct financing or bank loans are shrinking sharply and extending to more and more sectors. Consequently, DSO remains high and late payments are not efficiently regulated.

  • Low

  • Medium

  • Sensitive

  • High

  • Payments

  • Court proceedings

  • Insolvency proceedings

  • Payments

  • Court proceedings

  • Insolvency proceedings


The court system is complex and suffers from a lack of transparency, delays and high costs. As enforcement results are poor, amicable or non-litigation collection is the preferred option.

The insolvency framework is complex, with liquidation as the default procedure.​

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