In 2015, one of the most significant happenings in Asia was the signing of ChaFTA, a free trade agreement between China and Australia that opened new doors for companies in both countries to do more business.
This agreement was part of a raft of reforms, policies, legislations, and new focuses taken by the Democratic Republic of China to transform it into a global business hub. Indeed, the effects of these efforts are there for all to see, with its economy having the largest nominal GDP when measured by Purchasing Power Parity (PPP).
With its bubbling potential, China is the ultimate jurisdiction for offshore investment, and we are going to tell you the most important things to make your company blossom.
Doing Business in China: The Special Benefits
Before looking at the most important things you need to succeed when doing business in China, let us quickly check the benefits to expect.
- China is a major world trade hub, which is largely advanced by a supportive administration.
- The country has a very innovative landscape. This explains why it has shifted from being a technology user to a tech producer on all fronts.
- It is a low-cost country, making it easy to keep the cost of production low while increasing the quality of products.
- China boasts of highly developed infrastructure that supports fast business growth.
- The large population of more than one billion people offers a ready market for most businesses.
- The country is strategically located in the heart of the Far East, making it pretty easy to reach and do business with neighbors.
What Your Company Needs to Blossom in China and Beyond
The first and perhaps, most important consideration is the nature of the company that you want to form in China. Well, there are a number of business formations you can pick in China, but the best for foreigners is the wholly foreign-owned enterprise (WFOE) because it allows investors to have 100% shareholding.
This implies you will have greater autonomy over how the business runs. Remember that registering a WFOE in China is never simple because you have to deal with multiple offices and prepare a lot of papers. Other important factors that can simplify doing business in China successful are:
- Narrowing down your market: The large Chinese market is always a great attraction, but you need to come down to identify the exact targets. So, narrow it down to specific areas or demographics to make it easy to drive sales. For example, does your product target the elderly, city residents, or rural population?
- Develop a good strategy: You can never succeed in China without a clear strategy for market entry and growth. Here, it will be good to start by studying what competitors are doing and adopt a better strategy for doing business in China. If your competitors use social media for marketing, you can still use it and add other methods, such as networks and partnerships.
- Get expert assistance: If you want to get it right in China, make expert assistance part of your strategy. These professionals have been in the Chinese business environment for some time and can tell you what methods of operations work. If you bring them on board early enough, they can help with company registration, entry strategy development, and other important functions like payroll management and accounting in China.
China is on the verge of an economic explosion, and you can position your company strategically and ride on the wave. So, do not keep wondering how others have made their brands global: you too can achieve that by doing business in China. It will be more straightforward than you think, especially when working with professionals.