Learn About China Before doing Business


by Eric Castro - Date: 2007-04-26 - Word Count: 450 Share This!

Before you start your business with a Chinese partner, or travel to China to start any kind of trade you need to learn about China and their culture. If your company is expanding into a small, unimportant market, where the revenue potential is limited, it could be argued that this is acceptable, but when you plan to go to China that is not true.


Besides how the world economy develops, China is going to play a greater role as it becomes more integrated into the world economy. While there may be slowdowns and setbacks along the way, this is a major trend, which will not change, and China is in the way to become a giant.


In these days, China is one of the most important manufacturers for world products. More and more, companies will see China as a market with a major purchasing potential. For consumer products, most of the purchasing capability will be along China's eastern coast, there is where all the major ports are settled. For businesses selling to manufacturers, customers will be more evenly spread around the country.


Almost all of the leading companies in all sectors are companies from China. For foreign brands it is almost impossible to succeed on their own without a Chinese partner; the only exceptions are a few luxury and important brands. As a first step, it is necessary to find out who these players are.


China is still affected by the legacy of the state-owned enterprises, which often are still key players in the economy. The finance and distribution sectors are still heavily influenced by government participation.

Still in sectors where government influence is less significant, the government can still influence development through regulation. On occasion, these regulations are introduced with very little public debate. This is a reality every business in China must be prepared to go against.


When you are in China, the learning process never ends. Just when you think you are starting to understand it, something happens to shock you and to remind you of the complexities and difficulties of China. For many, that is also a good part of the attraction of the country because it is another challenge that they want to overcome.


So the best advice and recommendation you can receive before you start your business or trade in mainland China is to be smart, and never stop learning, because China is a giant that will surprise you whenever it has a chance to.


This article was researched and produced by Posicionarte for China Trading Company , 2007
Author Bio:


Eric Castro Mattas, is chief editor of Posicionarte researching and producing articles for China Trading Company. If you need products from China please visit www.chinatrading-company.com


Related Tags: china, china trading, china trading company, trading with china, yiwu purchasing agent, wholesale market china

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