NewsCase StudiesEvents

Why Expand To China?

Also in the news...

195 Countries - Where to Go First? Introducing Winning Globally Chapter 2

In July, we released the first chapter of Winning Globally

Opportunities for UK oil and gas companies in Africa

UKTIís event in Glasgow during the Commonwealth Games highlighted support available to help UK business access export opportunities in east and west Africa.

Notice to Exporters

Russia added to prohibited destinations for certain licences

Accelerated Market access in sub-Sahara Africa for your company

Meet us in the UK and Germany in September 2014 for a non-binding consultation, InterGest South Africa is heading on a road-show to the UK and Germany.

Tax incentives to promote energy efficient measures

Nelisiwe Magubane, Director of the Department of Energy (DoE) has announced to reduce the primary energy demand of businesses through tax incentives

Why Expand To China?

Back to News

Foreign investment walks hand-in-hand with China's decision to finally welcome in the outside world especially the West

China is the fastest growing emerging market, and unofficially the largest economy on the globe. Although it offers vast prospects for an expanding business, the chances of success without sufficient knowledge and expertise is, to be frank, considered slim. But that doesn't make China any less appealing: it has a theoretical market of 1.5 billion people and a culture which has embraced the ethics of western business.

Foreign investment walks hand-in-hand with China's decision to finally welcome in the outside world especially the West. Expanding businesses, then, should not fear a cold shoulder, rather the overwhelming business environment that China has wholeheartedly constructed and consumed since the 1970s. Both enterprising and intimidating in equal measure, China offers an entrepreneurial economy  for expanding businesses, and is now so powerful that it sets the global benchmark for prices: the China Price is practically a synonym for the world's lowest cost, with suppliers even often asking their biggest clients to open factories, or at least find subcontractors, on its soil.

What's the Attraction for a UK Business?

Over the past quarter-of-a-century, China has experienced big changes. The former agrarian economy has transformed from a market with limited private sector into the manufacturing base of the world. This expedient development has opened the doors to vast opportunities for businesses across the nation in all major sectors, including energy, technology, engineering, healthcare and finance. China has subsequently the largest Asian recipient of UK exports.

Business Opportunities

China's regional cities offer a diverse range of opportunities to UK businesses. The seven sectors listed as priority for UK companies are:

  • Advanced Engineering
  • Environment & Climate Change
  • Financial & professional Services
  • Infrastructure
  • Energy
  • Information Communication Technology
  • Life Sciences

Recent studies have identified China's 35 most lucrative cities for investment. They are:

Baotou, Changchun, Changsha, Dalian, Daqingm, Dongguan, Dongying, Foshan, Hangzhou, Harbin, Hefei, Jinan, Nanjing, Nantong, Ningbo, Ordos, Qingdao, Shaoxing, Shenyang, Shijiazhuang, Suzhou,Tangshan, Tianjin, Weifang, Weihai, Wenzhou, Wuhan, Wuxi, Xiamen, Xi'an, Yantai, Zhengzhou, Zhuhai, Zibo.


Business is a risk wherever you do it but perhaps China exemplifies this more than any other country. Integral to your success is both the protection of intellectual property and a shrewd understanding of cultural protocol (see Marketing). Most pitfalls in business can be avoided by meticulous research and preparation and China is no exception. If you are ever in doubt, seek either professional or legal guidance.

China's biggest challenge is also it's biggest advantage and that's its size. With a market potential of 1.5 billion people, China is set to become second largest consumer market in the world by 2015. Other challenges which are typically found in China include an uneven spread of regulations; local protectionism, meaning non-local businesses are generally unfavoured; intellectual property violation; and the emphasis on building very close business relationships with business partners.

You are not logged in!

Please login or register to ask our experts a question.

Login now or register.