Market Access: Regulations and How to do Business

The Chinese market can be more complex for uninitiated companies than other international markets.  The challenges of a huge market with a different business culture and language are compounded by a controlled currency and relative newness of international trading in some areas China.

Whether buying, selling or investing, whether dealing in physical products or knowledge, it is important to be aware of the complexities and risks.  None are insurmountable, but they do require time and resources. 

Before attempting to enter the Chinese market it is important to identify whether the market is open to you and whether restrictions apply.  Certain sectors, such as the defence industry, are subject to UK controls and these can be identified from the “UK Strategic Export Control Lists”.

The Chinese government classifies the market for foreign investment or entry into three categories, encouraged, restricted and prohibited. The ability of a foreign company to operate in China varies in line with these, so in some sectors it is possible to set up a 100% foreign owned company, in some entry is possible only through a local partner, and in some it is not possible at all.  With some professions, for example legal services, it is possible to enter the market, but operation is severely restricted. 

It is important to understand your freedom to enter the market. Refer to the official “Catalogue for the Guidance of Foreign Investment Industries”, published by Chinese Ministry of Commerce (MOFCOM) and seek advice from CBBC.

For more advice talk to an expert.