Recently the World Bank Group issued its “Doing Business in 2013” report. (
www.doingbusiness.org
). “The “Doing Business Report in 2013”, covers the period from June 2011 to June 2012 and uses data for indicators that measure regulation affecting 10 key areas of the life cycle of businesses. The online organization, Doing Business, analyzed the World Bank’s “Doing Business 2013” report and it created an informational chart which set forth the following ranking numbers for China as compared to 184 other economies it analyzed. Below are some of the findings the Doing Business organization gleaned from the 2013 report.
Doing Business rank 2013
91
Doing Business rank 2012
91
Starting a business 2013
151
Starting a business 2012
153
Dealing with construction
181
Dealing with construction
181
permits 2013 permits 2012
Getting electricity 2013
114
Getting electricity 2012
113
Registering property 2013
44
Registering property 2012
41
Getting credit 2013
70
Getting credit 2012
67
Protecting investors
100
Protecting investors 2012
96
Paying taxes 2013
122
Paying taxes 2012
118
Trading across borders 2013
68
Trading across borders 2012
60
Enforcing contracts 2013
19
Enforcing contracts 2012
20
Resolving insolvency 2013
82
Resolving insolvency 2012
78
From these numbers it would appear that China is fairing a bit worse in most of the ranking for 2013. The ease of starting a business is marginally better in 2013 than it was in 2012 and China is doing a tiny bit better on enforcing contracts. However, before you seriously consider starting a business in China or relocating a business to China I most strongly suggest you do a great deal of research. The “Doing Business Report in 2013” gives you merely an inkling of what issues and problems you will have to work through in China. There is absolutely no substitute for doing your own due diligence before making your final decision. I also feel it is imperative that you seek out an attorney and/or a law firm in China that has extensive experience with how to do business there. You can do business successfully and profitably in China but you must put in the legwork before you make the great leap.
Hawkeye in China
– LEX Smith