Opportunities
2017.07.31
China may now be the world’s second largest economy but it still has huge potential for further growth. One of the main lures for Foreign Invested Enterprises (FIE) remains China’s potential market of 1.3 billion eager consumers. Research indicates that the main goal for companies entering the market is to target the Chinese domestic market. China’s entry into the WTO in 2001 and the ongoing liberalisation of its regulatory environment means that the opportunities are increasing...

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Challenges
2017.07.31
The challenges faced by FIEs doing business in China fall into two broad categories: Regulatory and Cultural. Governmental and regulatory challenges Foreign Exchange – Since 1996 the Renmibi has been freely convertible on the current account, meaning that importers and exporters can now access foreign exchange freely. Business activities requiring foreign exchange such as paying for imports, labour and services from abroad, repayment of interest on foreign debt, and repatriation...

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Strategy
2017.07.31
Before you establish a presence in China you should consider your company’s strategy for doing business in-market. Trying to replicate what you have done in other markets will not guarantee success and so the business model will have to be reconsidered and if necessary revamped in order to match the local market. As with any market you will have to leverage your company’s core competencies in order to gain strategic advantage over competitors, but realise that these core competencies...

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Why establish a presence
2017.07.31
Although processes for establishing a presence have become easier, it is far from being as convenient or straightforward as setting up in Hong Kong or other developed markets; some industries are still restricted to foreign invested enterprises and the time frame for completing the procedures starts from two to three months compared to Hong Kong and the UK’s one or two weeks. With this in mind and considering the challenges outlined above, “Why should I set up in China?” is a...

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