Twenty years after China opened its doors to the wider international market, the furniture industry in China has witnessed the entry of numerous foreign furniture enterprises. China's low labor cost, large consumer market, and sharply declining import tariffs have attracted foreign furniture enterprises to venture into the country, and set up operations. But business entry into China's market is a very complicated process, and foreign investors might be vulnerable to some perplexing problems. For example, which relevant tax regulations should foreign furniture enterprises abide by in China's furniture industry? What are the basic procedures to incorporate foreign furniture enterprises in China? Which entry modes in China's furniture industry are most suitable for foreign investors? How to identify the effective market distribution channels that are most suitable for foreign investors? This report provides a comprehensive overview and discussion of China's furniture industry, and identifies opportunities and pitfalls for prospective investors.

The remarkable progress of China's automotive industry has culminated in the development of a significant tires subsector. Following China's accession to the WTO in late 2001, the growth rates for both sectors accelerated. To fulfill its ambition to become the main base of operations for leading foreign auto companies, it is imperative that China develop a world-class tires industry. To become a leading player in the global tire industry, it is imperative that domestic tire companies rectify these weaknesses by developing more sophisticated production techniques. China has also taken up steps to produce products that are higher up the value chain. For instance, the country is now encouraging the production of radial tires I by promising the waiver of the 10 per cent excise tax for radial tire products. Many domestic companies are also forming strategic alliances with multinationals to acquire greater expertise in production, distribution and marketing. This market research report addresses issues of interest to investors, presents our main survey and research findings, and analyzes legal and production aspects. It concludes with a look at future developments in this key industry. A directory of useful contacts appears at the end.

The rapid growth of China's automotive industry has led to the development of a significant automotive parts subsector as well. The Chinese auto parts industry is largely focused around the Yangtze River Delta, which accounted for 42 per cent of total production in 2000. Within this region, Shanghai is the largest manufacturing center for auto parts with 25 per cent of total production in 2000. Zhejiang and Jiangsu accounted for 10 per cent and 7 per cent of total production in 2000 respectively. Following China's accession to the WTO in late 2001, the growth rates accelerated. To fulfil its ambition to become the main base of operations for leading foreign auto companies, China must establish a world-class automotive parts industry. This market research report addresses issues of interest to investors, presents our main survey and research findings, and analyzes legal and production aspects. It concludes with a look at future developments in this key industry. A directory of useful contacts appears at the end.