Compare countries & regions

China vs Japan

China and Japan side by side — economy, tax, company setup, visas, housing and study, from official and open data.

Economy & society

Metric China Japan
Population (2024) 1.41B 123.98M
GDP (current US$) (2024) $18.74T $4.03T
GDP per capita (2024) $13,303 $32,487
GDP growth (annual) (2024) 5.0% 0.1%
Inflation (annual) (2024) 0.2% 2.7%
Unemployment (2025) 4.6% 2.5%
FDI net inflows (2024) $18.56B $16.16B

Business & tax

Metric China Japan
Corporate tax General national corporate income tax rate. Sub-national tax is excluded and shown separately where it applies — a cell reading "15.825% +7–21% municipal" means the national rate plus a local business tax. "on trading income" and "on distributed profit" mark countries whose headline rate does not reach all profit. 25% 23.2%
Top income tax Top marginal rate on employment income, NATIONAL layer only — that is what makes the column comparable. Where a sub-national layer applies it is added to the cell rather than folded into the number, so "20% +29–35% municipal" is Sweden's national rate plus its municipal one. Social-security contributions are excluded throughout. 45% 45.945% +10% local
Capital gains Default rate on long-term gains from listed securities, for an individual. Varies by asset, holding period and residency. Where one percentage cannot state the answer the cell says so instead: "effective" = a fixed share of the gain is taxed as ordinary income; "on deemed return" = the tax falls on a notional return, not on realised gains; "as income" = there is no separate capital-gains tax; "Varies" = no single general rate; "No general CGT" = individuals are not taxed on capital gains, though gains that are trading in nature and gains realised in a business still can be. Varies (20%) 20.315%
VAT / GST Standard statutory rate. Where one percentage cannot state it the cell says so: "effective" = the statutory rate applies to a reduced tax base; "temporary" = a time-limited rate charged instead of the statutory one, with its end date; "by supply" / "by state" = a band structure with no single standard rate; "No VAT or GST" = the tax does not exist there, which is not a 0% rate. Reduced, zero and exempt categories are not shown. 13% / 9% / 6% by supply 10%
Digital nomad visa Whether a dedicated digital-nomad or remote-work visa exists. A country without one may still allow remote work on another status. No Yes
DNV income req. (mo) Minimum income the programme requires, converted to USD. Thresholds are set in local currency and move with it. $8,333

Figures are headline national values gathered for comparison, not tax or legal advice. Definitions differ between countries — read each row's basis before comparing, and verify against the official authority before acting.

Topic by topic

Company Registration

China

Foreign-invested companies in China (commonly a WFOE or joint venture) register with the State Administration for Market Regulation (SAMR) and obtain a unified business license. Setup involves name approval, registered capital, a business scope and post-registration tax and bank steps.

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Japan

Foreigners commonly set up a Kabushiki Kaisha (KK) or the simpler Godo Kaisha (GK). Formation involves preparing articles (notarised for a KK), depositing capital and registering with the Legal Affairs Bureau, followed by tax and social-insurance filings.

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Business Banking

China

China's banking is dominated by large state banks and is highly digital (Alipay and WeChat Pay are used almost everywhere). Foreigners can open accounts with a passport and often proof of local ties; a Chinese phone number is usually needed for mobile payments. The People's Bank of China is the central bank.

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Japan

Japan's banking mixes megabanks, regional banks and Japan Post Bank, and cash is still widely used. Foreigners can open accounts, usually needing a residence card, a Japanese address and often a phone number; some banks require a few months of residence.

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Investment

China

Foreign investment in China is governed by the Foreign Investment Law and a 'negative list' that limits or bars certain sectors; outside the list, foreign investors get national treatment. You set up a WFOE or joint venture, register with the authorities, and manage capital and profit repatriation under SAFE foreign-exchange rules; free-trade zones offer openings.

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Japan

Japan promotes inward investment through JETRO, with generally free capital movement. Investments in designated sensitive sectors need prior notification under the Foreign Exchange and Foreign Trade Act (FEFTA); incentives include subsidies, special zones and support for R&D and regional projects.

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Tax System

China

China's main taxes are Individual Income Tax (IIT), Corporate Income Tax and VAT, administered by the State Taxation Administration. Tax residents (generally 183+ days) are taxed on worldwide income, with a six-year rule easing this for some foreigners.

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Japan

Japan levies national income tax (National Tax Agency) plus local inhabitant tax, and a consumption tax on most goods and services. Residents are taxed on worldwide income, with distinct rules for non-permanent residents.

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Work Visa

China

Foreigners generally work in China on a Z visa, obtained after securing a job and a work-permit notification, then converted to a work-type residence permit after arrival. The employer and local foreigner-work authorities drive the process; there is no general work visa without an employer.

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Japan

Foreigners work in Japan on a status of residence matching the job — most commonly 'Engineer/Specialist in Humanities/International Services'. You usually need a Certificate of Eligibility (CoE) obtained by the employer before applying for the visa. The Immigration Services Agency oversees the system.

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Student Visa

China

Study in China uses the X1 visa for programmes longer than 180 days and the X2 visa for 180 days or fewer. The university issues an Admission Notice and a JW202 form (JW201 for Chinese-Government-Scholarship students), which you submit with the visa application. The critical step after arriving on an X1: you must convert it into a residence permit within 30 days. A Foreigner Physical Examination Record and proof of funds are commonly required.

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Japan

Studying in Japan requires the "Student" status of residence. The accepting school usually applies on your behalf for a Certificate of Eligibility (CoE) at a regional immigration bureau; with the CoE you apply for the visa at a Japanese embassy or consulate and receive a residence card on arrival. The CoE is valid for three months, within which you must enter Japan. Part-time work needs separate permission first.

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Tourist Visa

China

Tourism in China normally uses the L (tourist) visa, applied for before travel through a Chinese visa application service centre. China has also expanded visa-free options — unilateral visa-free entry for a growing list of nationalities (up to 30 days as of 2026) and visa-free transit at designated ports. Visa-free entry covers tourism and business only, never work; confirm current eligibility with the National Immigration Administration.

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Japan

Japan grants short-term-stay status for tourism and business, typically up to 90 days. Nationals of many countries are visa-exempt for short visits; everyone else applies for a short-term-stay visa at a Japanese embassy or consulate. The Ministry of Foreign Affairs publishes which nationalities are exempt and on what conditions. Short-term visitors cannot work.

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Permanent Residency

China

China's permanent residence ('green card') is hard to obtain and granted mainly to high-level talent, significant investors, and close family of Chinese citizens or permanent residents. The National Immigration Administration handles applications.

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Japan

Japanese permanent residence usually requires around ten years of continuous residence (less for spouses of Japanese nationals or high-skilled professionals under a points system), a stable income and good conduct. The Immigration Services Agency decides.

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Citizenship

China

Chinese nationality is difficult to acquire by naturalization and generally requires close family ties to Chinese nationals or long settled residence, subject to approval. China does not recognize dual nationality.

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Japan

Japanese naturalization generally requires about five years of continuous residence, good conduct, stable finances and renouncing other nationalities (Japan does not permit dual nationality for adults). The Ministry of Justice decides applications.

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Employment & Labor

China

Chinese employment requires a written labour contract within a month of starting; local minimum wages apply, the standard week is 40 hours with capped overtime, and statutory paid annual leave runs 5-15 days by total service. Employers must pay the 'five insurances and one housing fund'; disputes go to labour arbitration before the courts.

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Japan

Japanese employment is governed by the Labour Standards Act: prefectural minimum wages, capped overtime (via a '36 Agreement'), and paid annual leave from 10 days after six months. Dismissal is difficult and must be objectively reasonable; workplaces with 10+ staff need written work rules. The Labour Standards Inspection Office enforces the law.

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Import & Export

China

Chinese trade clears through China Customs (GACC). You record-file as a consignee/consignor, then declare via the China International Trade Single Window. Goods are classified by HS code for import duty plus import VAT (usually 13%) and, for some products, consumption tax. Controlled goods need MOFCOM licences; advance rulings give certainty.

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Japan

Japanese imports and exports clear through Japan Customs via the NACCS electronic system. You classify goods by HS code to find customs duty, pay consumption tax (10%) on imports, and check whether METI licences apply under the Foreign Exchange and Foreign Trade Act. Advance rulings give classification certainty; disputes go through Customs.

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Trademark & IP

China

Chinese trademarks are registered with the China National Intellectual Property Administration (CNIPA). China is strictly first-to-file, so registering early is essential. You search the register, file under the Chinese sub-class system, and after examination the mark publishes for a three-month opposition period. A Chinese trademark lasts 10 years and is renewable.

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Japan

Japanese trademarks are registered with the Japan Patent Office (JPO). You search the register, file an application classifying goods/services under Nice, and the JPO substantively examines both absolute and relative grounds. After you pay the registration fee the mark registers, with a two-month post-registration opposition window. A Japanese trademark lasts 10 years and is renewable.

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Jobs

China

Public employment services in China are overseen by MOHRSS, which runs a national online job platform alongside local public employment service centres, while commercial platforms are widely used too. For foreign nationals the requirement is two documents rather than one: a Foreigner's Work Permit and a work-type residence permit. The work permits are also tiered A, B and C according to qualifications and salary, so which tier you fall into shapes what is open to you.

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Japan

Hello Work, run by the Ministry of Health, Labour and Welfare, is Japan's official public employment service — and unusually it includes offices with desks that specialise in supporting foreign workers, so it offers in-person help rather than only listings. The rule that shapes everything else is matching: a foreign worker needs a work-related status of residence that matches the job type. Categories such as Specified Skilled Worker cover defined labour-shortage sectors.

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Salaries

China

China has NO national minimum wage at all. Each of the 31 provinces and municipalities sets its own, and many run several local tiers within a single province — so the rate depends not just on which province you are in but on which tier your city or district falls into. MOHRSS issues guidelines while provincial governments set and update the actual rates, meaning the figure you need is always a local one. Pay is quoted gross, with individual income tax and social-insurance contributions reducing take-home.

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Japan

Japan's minimum wage is set regionally, by prefecture — so the national figure you may see quoted is a weighted average rather than a rate anyone is actually entitled to. Check your own prefecture through the Ministry of Health, Labour and Welfare, and note that some industries have separate, higher industry-specific minimums on top. For wage data, the MHLW's Basic Survey on Wage Structure is the official source, and unusually it breaks figures down by age as well as occupation and region.

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Scholarships

China

China's main scholarship is the Chinese Government Scholarship (CGS), administered by the China Scholarship Council (CSC), covering tuition, accommodation and a stipend; there are also provincial scholarships (such as Shanghai's), Confucius Institute (Chinese language) scholarships and university awards. Explore options on the CSC / Campus China site and apply by the deadline.

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Japan

Japan's main government scholarship is MEXT (the Japanese Government Scholarship), available through either an embassy recommendation or a university recommendation, covering tuition, a monthly stipend and travel. JASSO also offers grants, and many universities have their own awards. Explore options on Study in Japan and apply by the relevant deadline.

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Study Abroad

China

To study in China you apply through the CSC (for scholarships) or directly to a university; on admission you receive an admission notice and a JW201 (government-scholarship) or JW202 (self-funded) form. With these you apply for an X1 visa (studies over 180 days) or X2 (up to 180 days), then convert the X1 to a residence permit within 30 days of arrival.

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Japan

To study in Japan you apply to the school, which then obtains a Certificate of Eligibility (CoE) from immigration on your behalf; with the CoE you apply for the 'Student' visa at a Japanese embassy. Undergraduate applicants often take the EJU exam. After arrival you register your residence. Explore options on Study in Japan and apply by the deadline.

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Housing

China

In China, foreigners can generally buy just one residential property for self-use, and usually only after studying or working in the country for at least a year (city rules vary and some cities are stricter). Ownership is a land-use right (commonly 70 years for residential), not freehold. Renters should complete temporary-residence registration with the police; purchases are registered at the local real-estate registry with deed tax.

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Japan

Japan places no restriction on foreigners buying property — you can own land and buildings freehold with no residency requirement. Renting, however, often requires a guarantor or guarantee company plus 'key money' (reikin), a deposit (shikikin) and an agent fee. Purchases are registered (tōki) via a judicial scrivener and carry acquisition and registration taxes.

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Healthcare

China

China's basic medical insurance, overseen by the National Healthcare Security Administration, covers around 95% of the population through two schemes: employee basic medical insurance and resident basic medical insurance. Foreigners working in China can usually join the employee scheme; rules for other foreign residents vary by city. The practical catch is local variation — reimbursement levels, drug lists and designated hospitals differ by locality, and private cover is common for international hospitals.

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Japan

Japan has universal coverage through public insurance that is mandatory for residents staying three months or more — either employees' health insurance through an employer, or National Health Insurance enrolled at your local municipal office. Patients generally pay 30% of costs, less for children and older people, with the scheme covering the rest. Premiums are income-based, so keep payments current.

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Insurance

China

China's social insurance is usually called "five insurances and one fund" (五险一金): pension, medical, unemployment, work-injury and maternity insurance, plus the Housing Provident Fund — note that the last is a savings fund rather than an insurance. It is administered through MOHRSS and local bureaus, and foreigners in formal employment generally participate. Motor third-party liability insurance (jiaoqiang) is compulsory for vehicles, and commercial insurers are regulated by the National Financial Regulatory Administration.

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Japan

Beyond health cover, Japan's social insurance has two main parts: public pension — either the National Pension or the Employees' Pension, handled by the Japan Pension Service — and employment plus work-injury (rōsai) insurance for employees. Pension enrolment is mandatory for residents, not just for employees, which is the point most often missed. For drivers, compulsory automobile liability insurance (jibaiseki) is required, and private insurers are supervised by the Financial Services Agency.

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Related comparisons

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Frequently asked questions

Which has lower corporate tax, China or Japan?

Japan — China 25%%, Japan 23.2%%.

How do VAT rates compare in China and Japan?

China 13% / 9% / 6% by supply%, Japan 10%%.

Is China or Japan wealthier per capita?

Japan — China $13,303, Japan $32,487 (World Bank, 2024/2024).

Do China and Japan offer a digital nomad visa?

Only Japan does.

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