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Expanding a Business in China


Expanding a Business in China

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China Entering the Market

They say the world's your oyster. It's also your market. Globalisation is, paradoxically, making the world a smaller place: an international community where borders are fading and restrictions waning.

The transplantability of a business should never be overlooked especially if your domestic market is reaching saturation. Expanding is a bold move, and expanding overseas is perhaps the boldest. It is the ultimate risk. But if you're successful, it is also one of the most rewarding.

Of course, it's no easy decision, and that's why, whether you're considering expanding a business to China, or have already made the decision to do so, we have put together the essential guide to getting there.

Why expand a business in China?

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. With 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 a business in China, then, should not fear a cold shoulder, rather the overwhelming business environment that the country 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 starting a businesses in China in all major sectors, including energy, technology, engineering, healthcare and finance. China has subsequently the largest Asian recipient of UK exports.

Exapding a business in China: Business Opportunities

Regional cities offer a diverse range of opportunities to UK businesses interested in setting up a business in China. 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 the 35 most lucrative cities for companies registering a business in China.

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 exapdning a business in China exemplifies this more than in 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 before setting up a business in China.

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; starting a business in China means facing local protectionism (as non-local businesses are generally unfavoured), intellectual property violation and the emphasis on building very close business relationships with business partners.

Click here to Ask an Expert about Expanding a Business in China

Organisations that can assist with Entering the Market

  • > Sovereign Group

    Sovereign offers a range of advisory and support services to assist companies of all sizes to establish successful business operations in foreign markets.

    More Details Visit Website
  • > Blue Marble Global Payroll

    Simplified Global Payroll Managing payroll in multiple countries is complicated with different systems, deadlines, and languages in each country, lack of reporting, and constantly changing laws and regulations. Trying to manage global payroll via fax and email with excel spreadsheets leads to data security issues, fines, and penalties for non-compliance. Blue Marble has solved global payroll challenges with cloud-based technology, customized aggregated monthly reporting, and a hybrid service model in 150+ countries around the world.

    More Details Visit Website
  • > Company formation services.

    Need to register a company or setting up a company?

    More Details Visit Website
  • >

    When expanding your business to China, donít forget to protect your brand. We provide Trademark Registration Services in China and in all Asian countries

    More Details Visit Website
  • > Business Consultancy Services.

    Do you need advice from an expert in your field, on the ground? Need help finding the best route to market for your product or service?

    More Details Visit Website
  • > GCE Global Solutions

    I already have business in China, but my operation is very large and I need to keep track of the information.

    More Details Visit Website

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