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

Shenzhen is one of China’s fastest developing cities and offers a number of opportunities for new businesses and investors seeking the way to China. Here’s a quick list of 10 good reasons to do your business in the Pearl River Delta.

Proximity to Hong Kong – Hong Kong is only 20 minutes away by car train, bus and just a bit further by ferry. This makes it easier to attract international visitors to your new place.

Special Economic Zone Status – the status as the Shenzhen Special Economic Zone offers your business a profitable level of taxation, and the establishment of an easy business with a reasonable cost.

Climate – Shenzhen mild throughout the year with a very mild winter, which makes easier to attract employees.

Facilities – There has been major investment in infrastructure, which give Shenzhen a head start on providing world-class office space and services accordingly.

Manufacturing – Shenzhen is the manufacturing heart of China, with Guangzhou, Dongguan, and Zhongshan all within a few hours drive. Pearl River Delta where almost all the country’s production facilities are located.

Culture – While ancient and traditional culture of the country can be a bit difficult to find locally, there’s no denying that the city truly reflects the culture of modern China.

Language – Language is the dominant city of Mandarin. Which means that you can find employees who can communicate with the rest of China, the rest of the province speak Cantonese puts little premium on communication skills here.

There is no doubt that the Shenzhen offers a great gateway for people looking to start a business in China and there are a lot of support offered to employers who want to invest in the city.