Business China

The 4 Market Challenges of Doing Business in China

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Studies show that even after China had been thrust into an economic deficit sometime in March 2013, it was still making a surplus of about $270 Billion in that very year. There’s no denying that the 1.3 billion people of China have experienced a significant increase in wealth and living standards. The growing number of tourists and business visits from the country are a testament to their improved quality of life.

Analysts have long been suspecting the rise of China as a consumerist economy but new data reveals that the world’s second-largest economy by GDP is now looking inwards—away from exports. The country is now anticipating an annual growth of a little over 6 percent, focusing on the balance and quality of its growth than numbers.

The stabilizing trend in China’s economy makes it a haven for investors and companies to start their businesses here.
However, even after checking all the boxes, investors must realize that this is unfamiliar territory after all.

From complex bureaucratic processes to different consumer culture trends, there are some things overseas businesses must keep in mind before expanding to China.

1. Market access

China isn’t the easiest market to access. Local consumers have different buying habits from those of their Western counterparts. Not to mention, strict local distribution systems and regulatory demands of company registration and operation. Without the right guidance, your business could end up with the near 40 percent other US products that fail to access the Chinese market.

2. Changing consumer preferences

The Chinese consumer market has become more diverse than it was ever before. At the same time, you’ll notice that it isn’t firmly situated on the global circuit like other US or European brands. If you want your business to flourish in China, you must know a thing or two about consumer trends.

3. Bureaucracy

Overseas businesses and investors looking to register companies in China are often most worried about legal and bureaucratic challenges—and rightly so. To establish a business venture in China, you’ll need to acquire a handful of permits and licenses.

4. Governmental challenges

This one isn’t exclusive to China, though; it must always be taken into count before expanding a business to foreign territories. The Chinese government has its own rules and regulations regarding how products will be sourced, manufactured, designed, sold, utilized and disposed of. Make sure you consider the entire life-cycle of your product or service because it can and will be different from your local experience.


The business landscape in China is rapidly changing, with new trends in human resource, labor and administration. Companies are also looking to cut production costs due to stiff competition from other overseas ventures.

If you’re looking to break into the Chinese market, you can get professional support from Business China. We can provide you with hassle-free company registration and guide you on accounting, banking and other administrative procedures.

Business China is your key to China! Call us at +86-020-2917 9715.

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