Forum Business

With so much interest in China’s booming economy we find ourselves working with many companies entering the local market. We thought we would share some of their questions (and answers) to help others look similar steps.

T. Where should I look for my business?

A. There is no simple answer to this, many foreign business investments that are found in or around major population centers such as Beijing, Guangzhou, Shenzhen and Shanghai.

Q. Is it easy to open a business in China?

A. Yes and No. The Chinese government has taken great strides to make life easier for foreign investors but it is not always a simple process and can vary widely between locations. Shenzhen Special Economic Zone (SEZ) is one of the easiest places to open a company, but labor costs are higher than in other regions may be greater than the advantages of it.

T. What is the best structure to use for business in China?

A. There are three main types of companies that are open to foreign investment in this country: Representative Office (RO), Wholly Foreign Owned Enterprise (WoFE), and Joint Venture (JV).

Q. Whether doing business in China is much more difficult than doing business in the West?

A. No, but different from doing business back home. The complexity of culture rather than culture-based transactional relationships often mean that it is much slower than you expect (or believe) and there is generally a lower skill base in place, so that training and development and quality monitoring should play a key part in your strategy for success

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