How to Enter the Chinese Market in 2021

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Boundaries are no longer extended limits for international business. Many companies are taking their successful business models overseas, and one of the leading destinations in China. 1.4 billion market has attracted many investors and international companies worldwide.

Business forays into foreign markets typically require expert knowledge of domestic and foreign market situations on the floor and foresee what the domestic case will be short. China’s consumer market is as vast and intricate as the most dynamic country on the planet, always changing and growing at the same time.

However, penetrating the Chinese market is full of challenges. Covid has shaken the world, and companies that wish to do business in China should have a comprehensive understanding of all aspects of Chinese society, business culture, economics, and finance, for starters.

Know-Hows of Chinese Market

One aspect of doing business in China that many companies may not think much about but is hugely relevant is Chinese business customs. You should know how to behave or dress to gain the best possible impression of professionalism. Inside a country where the slightest wrong move often tests social graces, you have to dress and act in a manner that will leave a good impression. Just a little careful attention to detail can go a long way in China, and skincare products such as sensitive skincare items are no exception.

Digital marketing in China is quite different from the Western world. The single most popular digital platform is WeChat. It's essentially a social networking website, but it also acts as an essential communication tool between international businesses and their clients. Wechat is used for making introductions between people as well as for business deals. Companies that want to do business in China may use Wechat to introduce potential clients or regular discussions with business partners. Companies may also use Wechat to locate new suppliers for their products.

Another important aspect is that not all Chinese regions are identical. Southern China might be quite different from the other areas as local tastes and average costs are dependent on the part you are attempting to sell in. Please do not make a generalized plan and blindly trust it in most channels you will target.

Before coming to a significant steps, always create a predetermined plan that will consider every aspect. It is highly recommended to hire a local expert or perhaps a company that will help you in the beginning, because the document translation, local market demands, local laws, and regulations are extremely strictly controlled and changed frequently.

Hiring the Workforce

The People’s Republic of China Government requires all employees to be hired by a legal entity. In general, the Chinese government has strict rules for foreign companies employing workers based in China. Suppose you are a foreign company trying to hire people in China for specific tasks or even as a regular employee for the business. In that case, it is against the law to employ the employee yourself directly.

As Chinese law states, only companies officially established in China may hire employers. In the eyes of Chinese law, when a person provides professional services for you personally or your company and performs employment-like services, that individual is your employee. You must adhere to everything that is required to fulfill the employment relationship. The best choice is to hire Chinese employees from the China-based business consulting company.

Picking The Right Location

It is crucial to choose the right location when you plan to penetrate the Chinese market. China is an immense country, and not all its regions have the same characteristics and laws. Some areas give more opportunities for that business hubs to emerge and grow. However, it might be more efficient to focus on cities that have already been established as international business centers, like Shanghai, Beijing, Guangzhou.

One from the leading foreign investment destinations in China is Shanghai. The government encourages international business and innovation. For example, Shanghai’s 120 square kilometer Free Trade Zone (FTZ) allows global companies to operate businesses without paying fewer taxes than normal. Also, fewer industries are prohibited from foreign investments.

Laws and Regulations

As mentioned in the past paragraphs, the Chinese market is full of regulations and laws requiring scrutinized analysis and consultations with the local experts who have experience operating companies in China. Those laws and regulations are not static, they change frequently, and you need to keep up with China’s changing laws.

If you plan to export to mainland China, there are several government restrictions. You must satisfy the officials’ standards, as China is very strict about controlling the excellence of the goods and services they import from foreign countries. International companies must thoroughly examine China’s trade policies as well as their resources, business experience abroad, and short and long-term plans before entering the Chinese market.

Also, without the legal registration and documentation under Chinese insitutions, it is impossible for an international company to run business activities in China. Any foreign company seeking to legitimate business opportunities in China must get-known to those constraints.

Create Your Business Plan

It is always recommended and useful to create a business plan when entering a foreign market. China is no exception; it is even more vital to develop a scrutinized plan. Aside from the overview of your industry and product or services, your business plan should also have:

  • Right Business location
  • Estimated revenue
  • The approximate quantity of employees
  • Budget plan

Covid 19 has made it even more important to pre-plan everything you are going to do. 2021 is an excellent time to plan your employment process and operational workflow in China.


Starting a business in China is no easy task. There are many layer barriers that you need to overcome.You might even ask yourself, why should I even bother overcoming all these complex challenges? well many organisations worldwide have had huge ROI s in China , and the benefits outweigh the cost should you follow all the guidelines. With the right approach, in-depth planning, market research, and a little help from local experts, you are able to overcome the seemingly endless challenges of doing business in China.

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