For centuries China stood as a leading civilization, outpacing the rest of the world in the arts and sciences, but in the 19th and early 20th centuries, the country was beset by civil unrest, major famines, military defeats, and foreign occupation. After World War II, the Communist Party of China under MAO Zedong established an autocratic socialist system that, while ensuring China's sovereignty, imposed strict controls over everyday life and cost the lives of tens of millions of people. After 1978, MAO's successor DENG Xiaoping and other leaders focused on market-oriented economic development and by 2000 output had quadrupled. For much of the population, living standards have improved dramatically but political controls remain tight. Since the early 1990s, China has increased its global outreach and participation in international organizations.

Source: The CIA World Factbook - China



Your advisors at the Chamber of Commerce

Na Shi

Contact us: China@cc.lu


Key indicators

Area
9,596,960 km2
Population
1,397,897,720 (July 2021 est.)
Government type
communist party-led state
Languages
communist party-led stateStandard Chinese or Mandarin (official; Putonghua, based on the Beijing dialect), Yue (Cantonese), Wu (Shanghainese), Minbei (Fuzhou), Minnan (Hokkien-Taiwanese), Xiang, Gan, Hakka dialects, minority languages (see Ethnic groups e
GDP
$14.723 trillion (2020 est.)
Growth rate
2.3% (2020 est.)
HDI
85
Capital
Beijing

Macroeconomic indicators

Growth is set to soften somewhat in 2018-19, as exports ease and investment slows. The current account surplus is projected to stabilise. Infrastructure investment, a major growth driver in recent years, is projected to slow further amid tightening monetary conditions and a more rigorous approval process for local government investment.

The monetary policy stance will remain neutral with a tightening bias, as mitigating financial risks has appropriately become a key policy priority. Shadow banking activities are increasingly being reined in and credit growth is slowing, while capital outflows moderated in early 2018 following a surge and the exchange rate has stabilised. Fiscal policy will remain supportive, but less so than in recent years as unauthorised local government investment is subject to increased scrutiny, which will strengthen fiscal sustainability. A series of new tax cuts have been announced, but the headline fiscal deficit will be kept under control by streamlining government organisations to contain public spending. Imminent risks stemming from trade frictions have receded, but the large number of unresolved issues will keep tensions high.

Source: OECD - Economic Forecast

 

IMF Statistics:

Subject descriptor 2021 2022 2023 2024 2025

Gross domestic product, constant prices

Percent change

(Units)

8.450

2.989

5.240

4.642

4.086

Gross domestic product, current prices

Percent change

(Billions)

17,759.307

17,848.540

17,662.041

18,532.633

19,790.074

Gross domestic product per capita, current prices

Percent change

(Units)

12,572.071

12,642.847

12,513.871

13,136.482

14,037.338

Inflation, average consumer prices

Percent change

(Units)

0.918

1.975

0.228

0.970

1.993

Volume of imports of goods and services

Percent change

(Units)

10.452

-2.639

3.001

4.429

1.588

Volume of exports of goods and services

Percent change

(Units)

18.517

-0.166

-0.319

2.518

2.000

Unemployment rate

Percent change

(Units)

5.100

5.500

5.200

5.100

5.100

Current account balance

Percent change

(Billions)

352.886

401.855

264.200

235.710

275.509

Current account balance

Percent change

(Units)

1.987

2.251

1.496

1.272

1.392

Estimates

Source: IMF Statistics


Relationships with Luxembourg

Existing conventions and agreements

Non double taxation agreement

In order to promote international economic and financial relations in the interest of the Grand Duchy of Luxembourg, the Luxembourg government negotiates bilateral agreements for the avoidance of double taxation and prevent fiscal evasion with respect to Taxes on Income and on fortune with third countries.

  • Convention from 12.03.1994 (Memorial 1995, A no.45, p.1234)
  • Effective as of 01.01.1996 (Memorial 1995, A no.45, p.1234)

Air Services agreement

  • Agreement from 28.09.1979 (Memorial 1980, A, p. 966 )
  • Effective as of 14.08.1981 (Memorial 1981, A, p. 1910)
  • New Agreement from 18.11.2002

Source: Ministry of Foreign Affairs of Luxembourg


Further information

Foreign Trade

The Statec Foreign Trade statistics provide information on the trade of goods - by product and by country. This information is collected respectively through the INTRASTAT declaration and on the basis of customs documents.

You can see the statistics on the website of the Statec.

Contact points in China

Embassy of the Grand Duchy of Luxembourg in China

Ambassador with residence in Beijing: Mr Roland Reiland

Embassy of the Grand Duchy of Luxembourg
Unit 1701, Tower B, Pacific Century Place,
2A Gong Ti Bei Lu, Chaoyang District,
Beijing 100027
People's Republic of China


Tel.: (+86 10) 8588 0900 
Fax:(+86 10) 6513 7268 

Mobile : (+86) 138 1106 5430
E-Mail: roland.reiland@mae.etat.lu
Website: pekin.mae.lu - www.gouvernement.lu - www.luxembourg.lu

Consul General

Consul General with jurisdiction over the Municipality of Shanghai and the Provinces of Jiangsu, Zhejiang, Anhui, and Fujian:

Ms Tania Berchem

907-908, No. 1788 Nanjing Xi Lu
200040 Shanghai
People's Republic of China

Tel.: (+86 21) 63390400
Fax: (+86 21) 63390433
E-Mail: tania.berchem@mae.etat.lu 
Website: shanghai.mae.lu -  investinluxembourg-china.com - maee.gouvernement.lu - luxembourg.public.lu

Honorary Consuls

Honorary Consul over jurisdiction over Hong-Kong:

Ms Sophie LEUNG

13th floor Queen's Centre
58-64 Queen's Road East
Wanchai
Hong Kong

Tel.: (+852) 3621 0979
E-Mail: conluxhk@gmail.com 

Luxembourg Trade and Investment Office in Shanghai

Executive Director: Ms Tania Berchem

907-908, No. 1788 Nanjing Xi Lu
200040 Shanghai
People's Republic of China

Tel.: (+86 21) 63 39 04 00
Fax: (+86 21) 63 39 04 33
E-Mail: shanghai.cg@mae.etat.lu
Website: Investinluxembourg-china.com

Source: Ministry of Foreign Affairs of Luxembourg

Country risk as defined by Office du Ducroire for China

Ducroire is the only credit insurer covering open account deals in over 200 countries. A rating on a scale from 1 to 7 shows the intensity of the political risk. Category 1 comprises countries with the lowest political risk and category 7 countries with the highest. Macroeconomics experts also assess the repayment climate for all buyers in a country.

Link: Ducroire Office - Country Risk for China

Luxembourg for Business market entry guide to China: Market entry guides are brochure series published by the Ministry of the Economy and Foreign. The series focuses on worldwide markets, industries and business environments, providing comprehensive and in-depth analysis and guidelines. The brochures cover all aspects relating to a market entry including the economic, financial and legal frameworks. The brochures are a vast knowledge pool, compiled into a practice oriented document with many tips and important addresses.

Other useful information

 

 


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