{"id":10323,"date":"2022-08-01T07:30:37","date_gmt":"2022-08-01T07:30:37","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=10323"},"modified":"2025-04-23T09:38:15","modified_gmt":"2025-04-23T09:38:15","slug":"how-to-choose-the-correct-route-to-enter-the-chinese-market","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/how-to-choose-the-correct-route-to-enter-the-chinese-market\/","title":{"rendered":"Exporting to China: Choosing the correct route to enter the Chinese market"},"content":{"rendered":"

In the third of our series on exporting to China, Kristina Koehler-Coluccia from Woodburn Global reviews the main routes to the China market, from e-commerce to distributors\u00a0<\/strong><\/h2>\n

Deciding on the right route to enter the China market is the first step if you want to export and sell into the country, whether that\u2019s through cross-border e-commerce<\/a> or a local distributor.<\/p>\n

The second step is to evaluate your market potential. There is no point in coming into the market if you don\u2019t know what opportunities exist and what they are. Knowledge is power; research and data mining<\/a> are fundamental to establishing your business.<\/p>\n

China\u2019s Zero Covid policy is still in place, and unless you are willing to do lengthy quarantines, you may not be able to travel to China in person. It is important to know that there are companies on the ground that can do this evaluation for you.<\/p>\n

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Using cross-border e-commerce to gain a foothold in China<\/strong><\/h4>\n

If you are interested in selling your products in China but are not ready to establish a presence in the country yet, then cross-border e-commerce could be a good place to start.<\/p>\n

China has the largest digital buyer population in the world, home to more than 840 million online shoppers. In 2021, China\u2019s e-commerce market was larger than the US, the UK, Japan, Germany and France combined, and in 2021, e-commerce sales reached 52% of total retail sales, making China the first country in the world to have more online sales than traditional ones.<\/p>\n

According to The eCommerce Guide, Alibaba\u2019s Taobao and Tmall and JD.com<\/a> dominate the Chinese e-commerce market with 50.8% and 15.9% market share, respectively, followed by Pinduoduo (13.2%) in third place.<\/p>\n

Instead of establishing a presence in China to sell online, foreign firms can choose cross-border e-commerce, benefitting from streamlined customs procedures through over 100 cross-border e-commerce-integrated pilot zones. Those zones limit Chinese consumers to purchasing up to RMB 5,000 (\u00a3601) per transaction and no more than RMB 26,000 (\u00a33,125) per year. They must work with authorised partners to record customs transactions.<\/p>\n

China has long led the world in aggregate e-commerce sales figures and share of total retail. However, the country may have reached a behavioural tipping point, fuelled by the restrictions of the Covid-19 pandemic.<\/p>\n

The current cross-border e-commerce regime permits overseas sellers to sell goods directly to Chinese consumers through certain registered e-commerce platforms (e.g., Tmall Global, JD.com). The qualifying products can be imported on an expedited basis at reduced import tax rates. The products are either shipped from overseas or stored in a bonded warehouse.<\/p>\n