Where To Begin

Doing business with China can seem rather daunting for those new to the market, but taking a strategic approach is the key to making the process manageable.

Companies should conduct reliable research before venturing into business in China. Good research saves costs and improves the efficiency and impact from the start of a project.

As well as understanding the market, you need to understand your own business and ambitions. We picked out a few questions often raised by companies and advisers. Ask yourself and see if you know the answers before you start venturing into China.

• What are the unique selling points to your business proposition? Will there be a market for your product and services?
• Are there any legal barriers to your business mode
• Where in China would you start?
• Do you have sufficient resources (management time, project finance and expenses) to fund your China projects?
• Who will be leading the project within your company?
• Do you need to work with a partner in China to succeed? Can you communicate with them effectively?
• Have you evaluated business risks (such as protecting your IP) and conducted research and due diligence?
• Do you know how to secure payment and get the right quality products?

Rarely will one have answers to all of the questions above, and this “knowledge gap” forms the basis of further research and investigation.

China is increasingly available and companies can obtain a reasonable amount of preliminary information through desk research. However, up-to-date and reliable information to help guide business strategies and decisions can be hard to find in China, especially given the pace and scale of the market’s development. Obtaining dependable information and insights from secondary and publicly available sources can often be more difficult than in Western markets. To gather intelligence, there is greater reliance on primary qualitative research (such as using in-depth interviews).

The following pages will give you the basic information needed when doing business in China. For expert and tailor made advice and support, contact the China-Britain Business Council and set up a meeting with one of our China Business Advisers.