Published by ChinaMNC · Zhoukou

China's Policy Signals for Foreign Founders: What the 77th Anniversary Speech Means for Company Registration

A practical guide for international founders on how China's latest policy directions, highlighted at the 77th anniversary reception, affect company registration, operations, and compliance.

Key Takeaways for Foreign Founders

On September 30, 2026, China held a reception in Beijing marking the 77th anniversary of the founding of the People's Republic of China. President Xi Jinping delivered a speech that, while largely ceremonial, contained several policy directions relevant to foreign entrepreneurs. For international founders planning to register and run a company in China, these signals can inform strategic decisions. Below, we break down the practical implications.

1. Continued Emphasis on Reform and Opening Up

Xi stated that China will "further deepen reform and opening up" and "accelerate the construction of a new development pattern." For foreign founders, this suggests that China remains committed to attracting foreign investment and streamlining business processes. While the speech does not announce specific new measures, it reinforces the existing policy environment that supports foreign-owned enterprises. When registering a company, foreign investors can expect the established framework under the Foreign Investment Law to continue, including the negative list approach that determines which sectors are open to foreign investment.

2. Economic Resilience and Stability

The speech noted that China's economy has shown "strong resilience and vitality," with efforts to "promote economic development that is innovative, greener, and better in quality." This emphasis on stability and quality growth is relevant for foreign founders because it indicates a focus on maintaining a predictable business environment. For company registration, this means that the procedures and requirements are likely to remain consistent, with ongoing efforts to improve efficiency. Founders should ensure their business plans align with China's development goals, such as innovation and sustainability, which may open up incentives or faster approval processes in certain sectors.

3. The 15th Five-Year Plan and Business Planning

Xi mentioned the formulation and implementation of the 15th Five-Year Plan (2026-2030), which will guide China's economic and social development. For foreign founders, this is a crucial document to monitor, as it will outline priority industries and regions. While the speech does not provide details, it signals that the plan will emphasize "new development concepts" and "high-quality development." When choosing a business scope and location for your China entity, consider aligning with sectors highlighted in the plan, such as advanced manufacturing, green technology, and digital services. This could facilitate approvals and access to support policies.

4. Hong Kong and Macau: Integration and Opportunities

The speech reaffirmed the commitment to the "One Country, Two Systems" principle and support for Hong Kong and Macau to "better integrate into and serve the overall development of the country." For foreign founders, this highlights the ongoing integration of the Greater Bay Area. Registering a company in Hong Kong or Macau can serve as a gateway to the mainland, but founders should also consider setting up a presence in mainland cities like Shenzhen or Guangzhou to take advantage of regional incentives. The speech's emphasis on long-term prosperity and stability in Hong Kong and Macau suggests that these jurisdictions will continue to offer a familiar legal and business environment for international entrepreneurs.

5. Cross-Strait Relations and Business Considerations

Xi reiterated the policy of deepening cross-strait exchanges and cooperation, while opposing "Taiwan independence" and external interference. For foreign founders, this is a reminder that business activities involving Taiwan should be conducted in compliance with China's laws and regulations. When registering a company, ensure that your business scope and operations do not contravene relevant policies. The speech's call for peaceful development of cross-strait relations indicates that economic exchanges are encouraged, but within the framework of the One-China principle.

6. Peaceful Foreign Policy and Global Initiatives

The speech emphasized China's independent foreign policy of peace and the promotion of "four global initiatives" (Development, Security, Civilization, and ...). For foreign founders, this translates into a continued openness to international cooperation. China remains interested in attracting foreign talent and investment, and the government's support for globalization can ease market entry. When registering a company, foreign investors can leverage various free trade zones and pilot programs that offer streamlined procedures and tax incentives, reflecting China's commitment to international economic engagement.

7. Practical Registration Considerations

While the speech did not address specific registration procedures, the overall policy direction supports a stable and welcoming environment for foreign investment. Here are key points to keep in mind when registering a company in China:

• Entity Choice: Foreign founders typically choose between a Wholly Foreign-Owned Enterprise (WFOE), a Joint Venture (JV), or a Representative Office. The WFOE is most common for independent operations.
• Registration Steps: The process involves name pre-approval, obtaining a business license, carving out company seals, opening a bank account, and completing tax and customs registration. The timeline can vary by city but generally takes 2-4 weeks.
• Documents: Required documents include articles of association, proof of legal representative, investor identification, and registered address proof. Notarization and authentication of foreign documents may be needed.
• Capital: China has moved to a subscription system for registered capital, meaning no immediate capital injection is required, but the subscribed amount must be paid within the business term. Some sectors still have minimum capital requirements.
• Licenses: Certain industries require special licenses (e.g., food, education, logistics). Check the negative list and industry-specific regulations.
• Tax: Foreign-invested enterprises are subject to corporate income tax (25% standard rate, with preferential rates for small and high-tech companies) and VAT. Tax incentives exist for specific regions and industries.
• Compliance: Annual reporting, tax filings, and labor law compliance are mandatory. Foreign employees need work permits and residence permits.

These fundamentals remain unchanged, but the speech's emphasis on reform and opening up suggests that processes may continue to improve, with digitalization and simplified procedures in many cities.

8. What This Means for Your China Strategy

The 77th anniversary speech, while high-level, confirms that China's leadership prioritizes economic development, reform, and international engagement. For foreign founders, this is a positive signal that the business environment will remain conducive to foreign investment. However, it is essential to stay informed about specific regulations and local incentives, as policies can vary by region and industry.

When planning your China company registration, consider the following actionable steps:

• Monitor the release of the 15th Five-Year Plan for sector-specific opportunities.
• Evaluate location options, including free trade zones and Greater Bay Area cities, for streamlined registration and tax benefits.
• Ensure your business scope aligns with encouraged industries to facilitate approvals.
• Consult with local professionals to navigate documentation and compliance requirements.

By understanding the broader policy context, foreign founders can make more informed decisions and position their companies for success in China's evolving market.

This summary is based on information published by the relevant Chinese government website and is general information, not legal or tax advice.

For assistance with registering and operating a company in China, foreign founders can contact ChinaMNC on WhatsApp / WeChat at +86 153 1898 8535.