China question: How do I set up an R&D center?

Sep 29, 2015
What are the regulatory requirements and administrative procedures to establishing an R&D center in China? Should I go in alone or find a local partner? What security measures should I have in place to protect my IP and technology and prevent employees from leaking trade secrets?

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The regulatory perspective

China’s first regulation for foreign-invested research and development (R&D) centers was promulgated by the Ministry of Foreign Trade and Economic Cooperation in 2000, the Circular on Questions Relating to Foreign Investors Investing in and Establishing Research and Development Centers (R&D Circular), to encourage the investment and establishment of China-based R&D centers. Together with the R&D Circular, authorities including the General Administration of Customs and State Administration of Taxation further issued a series of state regulations for facilitating the purchase of R&D equipment, tax reliefs and other benefits to promote the policy.

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