Types of Investment Vehicle

Investments in China can be done through the establishment of operations or through the acquisition of an existing company. The resulting business operations must be registered in China. The most common types of investment vehicle available to foreign investors are:


• Wholly foreign-owned enterprise (WFOE) – A limited liability company with 100% foreign ownership.

• Equity joint venture (EJV) – A limited liability company with both foreign and Chinese investors.

• Cooperative joint venture (CJV) – A joint venture with both foreign and Chinese investors. A CJV may be incorporated as a limited liability company or may exist as an unincorporated venture.


WFOEs are the most popular investment vehicle for many foreign investors. WFOEs, however, are not permitted to engage in all activities and sectors in China. China encourages the establishment of WFOEs that have the ability to export products from China or in possess of innovative technology. Setting up a WFOE involves preparing a set of documents and submitting the documents to various authorities following an established process. Typically, there is only one investor behind a WFOE, but two or more parties may set up a holding company in a country or jurisdiction they are familiar with and then set up a WFOE and invest in China through the holding company. The WFOE must conduct its activities and its business under the precise category for which the commercial license granted. In order to comply with Chinese law, it should retain formal and independent accountants, keep organized and independent accounting records, approve and register its balance sheets and financial statements and be ready for any kind of supervision by the Chinese regulatory and financial authorities.

Industries and Sectors

Endowed with rich mineral and agricultural resources, Binzhou has prospered from a range of industry utilizing its abundant natural resources. These industries include chemical engineering, food processing, textile manufacturing, metallurgical engineering and pharmaceutical engineering. With a long history of agricultural production, Binzhou has developed a strong food manufacturing and food processing industry.The city has a strong fishing fleet for many years, and is now diversifying into aquaculture and value-added seafood processing. Binzhou is looking for investors who can bring innovative technology and knowledge to further advance its industries. In particular, foreign investment is strongly encouraged in the following areas:


• High and new technologies or advanced application technologies which can improve the performance of products, increase the technological and economic efficiency of companies, or create new equipment and materials which are beyond the capacity of domestic production;

• New technologies for agriculture, comprehensive development of agriculture, energy, transportation and the raw materials mining industry;

• Energy saving and raw materials and environmental protection;

• Product improvement and development of new markets or increasing the international competitiveness of products;


A detailed description of the main industries in Binzhou can be found here.

Government Support

Assisting foreign investors and foreign investments has always been one of the priorities for Binzhou government.In recent years, Binzhou government has helped to establish several economic development zones throughout the city. These development zones, along with many newly built city infrastructure including bridges, highways and roads, serve as an important breeding ground for foreign enterprises to grow. In addition, the Binzhou government has set up several departments to provide foreign investors with help and information for setting up and running operations. These units are:


• Binzhou Business Development Bureau, Foreign Investment Centre: provides information on foreign investment including policies and regulations.

• Binzhou Municipal Bureau of Commerce: provides information on foreign investments and trading opportunities in Binzhou including import, export and outsourcing.

• Binzhou Foreign Affair Office: provides assistance on foreign affairs in Binzhou including collaboration with Hong Kong and Macau.

• CCPIT Binzhou Subsidiary: provides help to promote and enable foreign investments in Binzhou including exhibitions hosting, IP rights, legal counseling and commercial arbitration.


Read about how each department can help you and how to contact them.

Investment Success Stories

With the relentless support from the Binzhou government in the past two decades, enterprises from different industries have established and flourished in Binzhou with great success. The city has become the cradle for many successful investment projects in a great variety of industries, including automobile manufacturing, real estate, aviation, pharmaceutical science and new energy development. Below are some of the success stories that have inspired entrepreneurs in Binzhou:


The Beijing Automative Group is establishing a New Car Production Base in Binzhou

A New Wanda Plaza is Opening in Binzhou

A New General Aviation Industrial Park in Zhanhua District

A New Pharmaceutical Manufacturing Plant in Huimin

Investment Opportunities

Currently there are numerous investment projects happening in Binzhou in the following sectors: city infrastructure development business park development manufacturing modern services and agricultural development. In the last decade, the demand for city infrastructure in Binzhou has increased rapidly as the city grows. Roads, bridges, harbors and ports are some of the most in demand facilities. With infrastructure being built, the city is also setting up business parks that provide hardware and software for enterprises to operate. Catching up with the city’s rapid development, the manufacturing industry in Binzhou has shifted into a green and ecological era that cleverly utilizes recycled material to produce a great range of commercial and personal goods. As one of Binzhou’s oldest industries, the agriculture industry has transformed into a modern sector that takes advantage of advanced science and technology to maximize yield and boost quality. Lately, there is a new service industry that provides convenience and leisure to cosmopolitan and suburb living. New senior homes, resort towns and recreational clubs are being built by professionals in the industry, which greatly improve the standard of living for many. The Binzhou government is committed to support foreign investors who are interested in taking parts in these exciting opportunities. Together we can make a difference.