China is the second largest economy in the world and, with just over 1.4 billion inhabitants, still one of the biggest prizes in international business. GDP per capita reached 99,665 yuan in 2025, about 13,900 US dollars, and the economy grew by 5.0%. Imports are worth roughly a fifth of GDP, so there is room for foreign products — but almost always through a local business partner.
The population has been shrinking since 2022 and consumers have become more price-conscious, while spending on health, services and premium food keeps growing. Your partner therefore has to do more than open doors: they have to position your product in a market where local brands move fast and where a product without a story disappears.
Where to start looking for a business partner
The first question is where you want to start. Hong Kong has a legal system that is familiar to most Western companies and is still a useful base for contracts and payments. The first-tier cities — Shanghai, Beijing, Shenzhen and Guangzhou — give you the best infrastructure and the most experienced partners, but also the most competition. Second-tier cities such as Chengdu, Hangzhou, Wuhan and Xi’an have fewer foreign suppliers and lower costs, at the price of a longer search.
Working with a local agent, wholesaler or distribution company is in practice a prerequisite for selling in China. Setting up your own subsidiary is possible, but the regulations, the capital requirements and the staffing make it a step most companies take only after a few years of sales. Be prepared for the fact that your Chinese partner may be much larger than your own company and will expect you to adapt to their way of working.
Check any candidate before you commit: ask for the business licence with the Unified Social Credit Code, verify it in the national company register, and find out which brands they already carry and whether those compete with you. Register your trademark in China before the first conversation, because trademarks are granted to whoever files first, not to whoever used the brand first.
Doing business in China: what to expect
Business in China runs on relationships. Guanxi is not a favour you call in once but a network you maintain, and a partner will judge you on whether you keep showing up. Expect several meetings before anything concrete is discussed, and expect the relationship to continue outside the meeting room: dinners, WeChat messages and visits matter as much as the proposal.
Hierarchy is visible in every meeting. The most senior person speaks first and often decides afterwards, in private. Never put someone in a position where they have to say no in front of colleagues — losing face is a real cost, and a Chinese partner will use vague answers instead of a direct refusal. “It may be difficult” usually means no.
Negotiations take longer than you are used to and price is discussed until the last moment. A contract is seen as the start of a relationship rather than the end of a negotiation, so expect requests to adjust terms later. Put the essentials in writing anyway, in Chinese and English, and agree on who registers what, who pays for marketing and how the relationship can be ended.
Practical things that make a difference: have your materials, website and packaging in Chinese, be reachable on WeChat rather than email, bring your own interpreter to important meetings, and use trade fairs such as the Canton Fair and the China International Import Expo to meet several candidates in a short time.
If you do not have the time to do this yourself, a local consultant can shortlist and screen partners for you and join the first meetings. That is usually cheaper than a wrong partner who sits on your product for two years.
