HOW TO EXPAND YOUR BUSINESS IN CHINA? 1

Business in China

China is the world’s second-largest economy and it continues to grow. Many businesses want to take advantage of the investment opportunities the country offers. With a population of over 1.3 billion, entering the Chinese market is appealing to almost every business. However, many well-known companies have tried and failed to expand in China.

This might be due to a lack of knowledge about localizing and launching a business in China, or simply because there isn’t a demand for the company’s products. According to Oscar Ramos, program director at Chinacelerator, which helps startups enter the East Asian market: “Ninety-nine percent of foreign companies looking to enter China probably shouldn’t.” He suggests that the remaining one percent should consider what sets them apart from existing companies in China. How can your company ensure it belongs in that top one percent?

How to approach Chinese market?

Before taking any action, thoroughly study the Chinese market. When starting a business in a new country, it’s crucial to conduct thorough market research and develop a detailed business plan based on your findings. It’s easy to overlook the unique selling point that initially made your business successful, but sticking to a detailed plan will help you stay focused.

China consists of several autonomous regions, each with its own unique markets. Market research is essential for new businesses launching in the country. Companies must thoroughly understand the laws and market trends of each region they intend to operate in to ensure successful expansion. Additionally, it’s important to collaborate with translation and compliance experts when conducting business in China.

Culture Difference

Business practices in China differ from those in the West. For instance, while Western employees often freely share ideas with managers, Chinese corporate culture highly values business hierarchy. Chinese employees may be less inclined to speak up in meetings compared to their Western counterparts. It’s crucial to recognize these cultural differences before entering the market. Understanding these customs is essential for localizing your business for the new market. This includes fully adapting your website for a Chinese audience.

The growing Chinese economy has spurred a rising demand for Mandarin Chinese translation services. It’s anticipated that Chinese mergers and acquisitions (M&A) activity, particularly the acquisition of overseas companies, will double in the coming years.

Translation services require expertise in Chinese business practices. Compliance experts or business advisors can provide guidance on legal, tax, accounting, HR, and cultural differences to support your business expansion in China. Translators can assist by providing interpreters for meetings and translating essential legal documents.

You might require a foreign trade company in China for various services:

1. Establishing a WOFE (Wholly Owned Foreign Enterprise) in China, setting up a company bank account, obtaining work visas, and managing accounting and tax matters.

2. Managing import and export rights.

3. Applying for necessary import and export registration qualifications.

Additional services include:

• Drafting agreements such as HR or trading contracts.
• Issuing legal opinions.
• Offering yearly company legal consultant packages, and more.