Guide to the China market
China is a tough market. You have to be prepared to spend a lot of time and resources getting started. Are you ready for China? gives a heads up on issues you need to be on top of, including marketing, pricing, finance and establishing a local presence.
Opportunities are boundless; the challenges unrelenting (but often overstated). This section provides an overview of opportunities in a market apparently set to become the world's largest. It also explains the challenges arising from operating in a different business environment and culture.
New Zealand exporters stand to make significant gains from preferential access to China under the China Free Trade Agreement (FTA). Over the next 20 years, the FTA is expected to lift exports to China by 20-39 percent and be worth an extra $260 to 400 million a year. This section provides a brief outline of the FTA.
Your business plan should be based on comprehensive research, backed by numerous market visits. This section gives information (including tips from Kiwi companies) on researching and visiting China and how to find and manage critical in-market support such as agents, distributors and consultants.
You need a local presence to grow your business and have a long-term future in the Chinese market. Doing so involves a unique set of issues. This section provides information and insights on how to get your company presence in China right including appropriate structure, location, finding premises, IT, logistics and HR.
You need to be fast on your feet in China. The tax, legal and regulatory systems, as well as being very different from New Zealand's, change quickly. This section gives information and insights from Kiwi companies already in China on protecting intellectual property, taxes, banking, getting paid, accounting, due diligence and corruption.
Establishing relationships in China takes time and persistence, but it's an investment that will pay off. Relationships often override contracts. This section helps you understand Chinese attitudes to relationships and then build them. It gives tips on managing relationships with key players and provides guidance on how to run meetings and negotiations.
When dealing with Chinese culture you need to be prepared, flexible and patient. Understanding the language is not essential, but a few words of Mandarin go a long way. This section gives an overview of Chinese culture and protocols from a business perspective, guidance on what language to deal in and tips on how to manage interpreters.
China's manufacturing capability increasingly rests on its overall business strength and structure rather than cheap labour. Getting your manufacturing operation in China right requires strategic thinking and thorough research. This section runs through the pros and cons of manufacturing in China, the options and gives tips on how to find a manufacturer.
It is not easy to sell in China. Difficulties relating to sheer size, cultural and language differences, wealth differences and exacting border controls need to be balanced against huge and expanding opportunities. This section is a practical guide to marketing in China, direct exporting, managing agents and distributors and dealing with border controls.
- Page last updated: 20 March 2012