Discover more about Chinese inward investment into the UK with our Tou Ying Tracker.
Helping you unlock your growth potential in China
Our research reveals that mid-sized businesses in the UK have been less focused on expanding internationally than their European counterparts, with just one in five expecting to do so. And companies that do plan to expand tend to target established markets such as the USA and Western Europe, rather than higher-growth markets like China.
By 2021, China’s economy is expected to surpass the US economy, with average annual income reaching $15,000 per head. If the UK could increase its share of China’s imports from 1.1% to just 2%, it is estimated that the national trade deficit would disappear.
Historically, companies have seen China as a challenging market. Common issues include rising labour costs and turnover in key people, increasing local competition, complex interpretations of local rules and regulations, cash extraction, government intervention, and cultural and language barriers. But with these challenges comes huge opportunity.
Setting your China strategy
You'll work with a team that has advised in this market for decades. We've experienced China's transition from a manufacturing power to a consumer-led economy. And we can put our insights and knowledge to work for you, helping you unlock growth in this rapidly changing market. We can help you:
- evaluate new markets and opportunities, and select the best commercial models for seizing them
- plan and implement strategic transactions, including mergers, bolt-on acquisitions and disposals
- provide valuations and due diligence to support board decisions on organic growth, acquisition and joint-venture opportunities
- support new market entry with on-the-ground assistance; Grant Thornton China has more than 3,000 people in 21 cities across China and Hong Kong
- structure your business in China effectively and efficiently.
Financing your growth
We can help you align your funding strategy with your international expansion plans by:
- advising you on the best capital structures to support your entry strategy
- developing a long-term funding structure
- introducing you to potential funders through our relationships with large corporate organisations, state-owned enterprises and Chinese government.
Protecting your wealth
To ensure a return on investment, it's important to plan how you'll maximise and protect the money you earn from China. We can:
- provide strategies to manage your position and help you ensure the flow of funds
- advise you on cash extraction and repatriating your money to the UK
- help get cash and profits out of China and reduce tax leakage, including supporting you with administration.
Managing your risk
Getting risk management wrong in China could damage your business and result in criminal prosecution. You'll work with a team that has considerable expertise in the complex business cultures of China and Hong Kong. We can help to:
- ensure your regulatory tax compliance and respond to investigations by regulators; we can also connect you to our local tax experts in Grant Thornton China and UK
- mitigate the risk of fraud, bribery and corruption
- implement control environments to manage the commercial and financial risks of operating overseas
- provide insightful, value-added audits to reassure your stakeholders.
Optimising your operations
Streamlining your processes and behaviours will help you get more from less and realise your growth ambitions efficiently. We can help to:
- plan your overseas tax structures and transfer-pricing policies
- improve working capital management through process improvement and innovative tax planning
- identify opportunities for direct cost savings
- optimise the efficiency of your finance function.
Your employment strategy
In recent years, many Western companies have found it hard to retain the local talent required to grow in China. Through many years of experience helping businesses with their employment strategies in China, we can:
- ensure you have the right people in the right roles and that you reward them at the right level
- provide tax-efficient remuneration packages that align performance with rewards for key employees, for example, share-based compensation plans
- position your business as an employer of choice through creative, efficient and flexible pension and benefit solutions.