Tips for Starting a Business Venture in China as a Foreign Company

By Michael Waters posted 12-21-2020 15:07


China has massive appeal for business start-ups as a foreign company. It is a country that is on the lookout for such opportunities and has a wealth of low-cost labor and raw materials to offer as an incentive. 

It offers a number of ways of doing this, and all seem feasible. It’s best to check up on these and then work out which one suits you. Knowing how the country operates is step one to finding a foothold for your venture.

Find the right location

China is a massive country, seemingly with an opportunity around every corner. Choosing the right location, a strategic decision, is vital for you and your venture. You are going to need help with expanding business to China and to do this, head to, the business consultancy with 15 years of on-the-ground experience in Asian markets, and get tips on this and a host of other facts on this fascinating country.

Your entrepreneurial spirit will be welcomed and nurtured in this country. Many brands, though, will not know how to succeed without help from experts, like the ones you will find on this site, to help you navigate the way forward in this country.

Use a PEO

Find employment solutions for your venture that will hire employees and manage the payroll. The Professional Employer Organization (PEO) and Employer of Record will manage the company payroll, benefits, and expenses in China. All HR duties, including tax compliance, will be handled by the PEO. The PEO will recommend a legal team as well.

This means you can start trading without a local entity, which will enable you to conduct business with all the legal means at your disposal. 

Culture plays powerful role

China’s heritage, its ethos, its way of thinking, is very different from that of the US. It would do you well to become steeped in this legacy and get to know how it can affect your business. By honoring the traditions and culture, you will be looked upon favorably, and that’s very important in this country.

Be aware of the Lunar calendar, which plays a huge role in Chinese culture. Be sure to organize meetings around auspicious days. The Chinese New Year celebrations last for a week, impacting many business sectors. Be aware, and don’t complain, over “prosperous days” and the like. When planning to expand business in China, you must be aware of this.

Be compliant

In China, the government is aware of what is happening at virtually any time, anywhere. Their surveillance set-up is very thorough and very sophisticated. It will not think twice about intruding into your business or private life if it thinks that you are undermining the rule of the country in any way.

Don’t forget, it’s a communist country and it operates on those rules. Let your business operate openly and honestly and you will have nothing to fear. Also, be fair to your employees at all times. If they think they are being “done in” in any way, you could be looking for trouble.

Hire a partner

Establishing a business in any foreign territory can be fraught with all sorts of hurdles and problems, especially in one where most don’t speak English. To really make headway in your business here, you should hire a Chinese partner or associate of good standing to walk you through the cultural and logistical hurdles you will find. This is most true in a country whose values and systems are misunderstood or frowned upon by outsiders.

You may want a skilled translator in place of a partner, and this person should attend every business meeting with you. Also, heed the advice of trusted employees.