There are some unique challenges when you are doing business in or with China. These include:
- large parts of the economy are still closed to full foreign participation
- strong competition from well-resourced and positioned state-owned enterprises
- finding and retaining the right skills in the local workforce
- complex business culture
- language barriers
- need for patience to build up trust and networks
- significant time difference
- weather extremes across the country and high levels of pollution in certain urban centres
- anti-monopoly legislation used against foreign firms
- bribery and corruption
Our company can help your business to grow up faster and easily with our strategies.
China is currently the world’s second largest economy. Gross Domestic Product (GDP) grew by around 10% a year from the start of market reforms in 1978 to the 2008 financial crisis. The headline figure has now fallen to just over 7% as the government rebalances the economy to make growth less reliant on investment.
It’s expected to grow between 5 to 7% over the next 15 years becoming a middle-income country.
Mid 2015 was dominated by the Chinese economy. Although the uncertainty has passed there is nothing to suggest that China is returning to its peak of economic growth. Slowing growth has resulted in significant changes to China’s growth strategy.
Companies often take a staged approach to setting up in China. Many start by exporting a small amount to test the market.
Find out more about entering the Chinese market on the CBBC website.
The main options for entering the Chinese market are:
- -Using agents or distributors
- -Establishing a presence in China through either setting up a Wholly Foreign Owned Enterprise (WFOE) company, opening a representative office or working with a partner through a JV
- -Exporting directly
- -Licensing and franchising
- -Using a UK-based consolidator/exporter
- -Using a business incubator in China allowing a year round presence on the ground