Executive Summary
For Western companies seeking to build manufacturing facilities in China , the best way to reduce the chance of making costly errors and "detours" is to first develop a systematic, pragmatic, and detailed roadmap. JJ Wellesley Group created a framework that includes the key steps of the factory setup process in China . During the past several years, this highly disciplined approach benefited some of our clients that were planning to build factories in China . A few other Western companies already in China also successfully applied this framework to their existing efforts of developing or expanding manufacturing capabilities.
In this article, we will explain all the major components of this framework. In particular, we will describe in details:
- the process of making a business case for launching China based factories and conducting feasibility study in China
- the process and procedures of obtaining Chinese government approval for setting up Wholly Foreign Owned Enterprise (WFOE) or Sino-Chinese Joint Venture (JV) factories in China (including business application, business registration, and post-registration formalities)
- the process of developing the physical factories
We will call out the major issues/challenges unique to the China environment. Also included in this article is a sample factory development timetable.
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