Things To Consider While Starting Business In China

China has been in a rapid economic expansion over the last decade

, and now it finds its place in the global marketplace. However, as China has become more open to Western business, it still has some tricky problems that need to be solved. Having better understanding about the whole Chinese business environment is the key thing for multinational firms to experience better success in China. In order to help our international members successfully start a business in China, BusinessVibes will lay out the cultural differences, essential start-up concerns and professional development. By pointing these out, we hope you will have a better understanding and be better prepared when starting business in China.

First things first, in order to have a better understanding about overall business environment in China, it is very necessary to do some homework on all the subcategories that will influence the business environment in China. For example, cultural difference might bring about a lot of troubles in your business in China, so hiring a local cultural consultant or making friends with local businessman would be helpful to know improper behavior, otherwise, you would never know that Chinese people like to have business negotiation on the dinner table with a nice meal, rather than have a formal conversation in the conference room

Local laws and regulations are also worth to do some research on. For starting the business in Chinese market with local competitors and local partner, it could be very complicated process as there many bureaucratic and legal hurdles, here is a list made by International Finance Corporation with all the registrations and applications that will be faced by international entrepreneurs in China. You also should know what Chinese Contract law says before you negotiate a contract, or what Chinese Company Law provide before you set up a JV, and what Chinese Labour Laws state before you recruit staff.

When the homework is done, now you should think about picking a location for you company in China. All the big cities such as Shanghai, Beijing and Guangzhou are the major business, government, and industrial centers. The very nature of your business may require you set down in one of the big cities. For example, if you're a tech company, Beijing may be the place for you, but if your company is doing a lot of trading business, then Shanghai or Guangzhou might be the better place. Anyway, it is important to pick a location by evaluating your companys transportation or logistical needs, imports and exports requirement, as well as what government inspections and restrictions will you be subject to.

Due to the complicated situation in Chinas business staring process, one of the easiest ways to get your business on track quickly is to find one or even several reliable liaisons. There are many consultant companies and commercial service organizations all over the world that can help you navigate the complicated application process in your targeted market. A qualified liaison should be able to tell you where you need to go to register, whether it's the local, provincial or national government, and should help to do all the preparations once you get there.

Meanwhile, building the local business network is another important aspect to start business in China. The global B2B networking platform BusinessVibes will be able to offer you the database of more than 24000 Chinese companies, associations and event organizers. BusinessVibes can also help you easily and quickly find local partners, buyers, suppliers, joint venture partners to shorten sales cycle, and get informed about latest business events in China.

by: BusinessVibes

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