China: an enormous emerging market
China is the second largest economy in the world, after the USA. The Chinese economy has been growing rapidly, presenting a very big and rare international business environment. The import market in China is around 25% of its GDP. It is a large market for exporters, who in most cases need a sales agent or local distributor.
How to find a good business partner?
The first question for China is where you want to start: in Hong Kong, with its more western law system? In the more easily accessible cities like Beijing, Shenzhen and Shanghai, where there is more competition? Or in the second tier cities, where you may find more obstacles to overcome, but less foreign competition?
Working with local wholesale parties, agents or distribution companies is a prerequisite for exports to China. Setting up your own subsidiary often turns out to be troublesome due to the many regulations. Because of the size of the country, your China sales agent or China distributor may be much bigger than your own company and require a different approach than you are used to.
