{"id":6575,"date":"2020-12-07T07:14:45","date_gmt":"2020-12-07T07:14:45","guid":{"rendered":"https:\/\/focus.cbbc.org\/?p=6575"},"modified":"2025-04-23T09:58:05","modified_gmt":"2025-04-23T09:58:05","slug":"what-to-know-before-you-go","status":"publish","type":"post","link":"https:\/\/focus.cbbc.org\/what-to-know-before-you-go\/","title":{"rendered":"China Business Guide Part 1: What to know before you go"},"content":{"rendered":"

In this six-part business guide to doing business in China produced by Hawksford<\/a>, we’ll give an overview of what you need to consider before entering the market. Ranging from localisation, to the legal and banking systems, to type of company set up. This series is a great jumping-off point to understand the many nuances of doing business with China.<\/h2>\n

Part 1: What to know before you go<\/span><\/h3>\n

China is a unique country, historically, politically and culturally<\/a>, and there is a lot to understand if you are a new entrant. Although many foreign companies have succeeded, many have also crashed<\/a> on its shores, so it pays to do as much research as possible and get a good understanding before you embark on your China journey.<\/p>\n

Understand the regulations<\/strong><\/h3>\n

Bureaucracy is the number one concern for many foreign investors. Common complaints are often related to licenses and permits, and the laborious processes relating to them. Once you decide to enter the Chinese market, it\u2019s very important to clearly define the business scope of your Foreign Invested Enterprise (FIE) to avoid any unintended self-imposed limitations, which could hinder the company\u2019s business and potentially even lead to legal problems.<\/p>\n

Be culturally sensitive and treat each city as a new jurisdiction<\/strong><\/h3>\n

Doing business in different regions of China is like doing business in different jurisdictions. The same national tax<\/a> regulations may be interpreted and applied in radically different ways by the respective local authorities in Beijing and Shanghai. Entrepreneurs have to become familiar with the unique characteristics of each region and plan specific strategies according to practical implementation of national corporate, labour and fiscal policies.<\/p>\n

Learn from the local competition<\/strong><\/h3>\n

With different purchasing habits, China\u2019s market environment is unlike those of many other economies around the world, making it potentially difficult to take the first steps. The new generation of Chinese consumer<\/a> is more demanding, highly educated and wealthier. Several international market leaders have already dived into this challenge, and managed to turn it into new opportunities, leapfrogging the competition through innovation.<\/p>\n

A digital strategy is a must<\/strong><\/h3>\n

A strong digital presence is critical for businesses looking to engage with the Chinese market. Incredibly, 62% of Chinese luxury<\/a> consumers are likely to purchase online. The younger generation is comfortable using messaging, short videos, live streaming and social media apps<\/a> as part of their shopping journey.<\/p>\n