Understanding China’s customs is among the most vital things you need to do if you would want to have a successful business. But before going into that, you should assess what opportunities China offer for your line and scope of business, and also the advantages which you are likely to benefit from if you start a business there. Such an understanding will be important at the time you will be laying out entry strategies.
Of course, setting a business in China can be very daunting especially for new entrants. In other words, the road might not be as smooth as you would want it to be. However, there are so many advantages of starting a company in this country. Discussed here are the main ones.
Political, economic, and social stability has greatly helped China to consistently grow in all spheres in the last few decades. In fact, for the last three decades now, the country has been very stable. Economic, social, and political stability is very important in guaranteeing a conducive business environment. These three makes a country’s market predictable. Therefore, the businesses can be able to strategize and predict the future accordingly. In fact, such stability is the reason hyperinflation cases and occurrences of business-crippling have not been reported here for a very long time.
Another advantage of doing business in China is that the government policies are favorable. The government has remained proactive when it comes to enforcing the entrepreneurially supportive measures not only for local businesses, but also for international companies as well. Some of the measures that the government has been enforcing include giving Chinese people business subsidies, supporting innovation and creativity, and assisting young citizens in incubating their ideas. These measures have made the country a great place for both local and foreign entrepreneurs.
The government imposes low taxation on companies, making it easy to do business. Also, the taxation rates in the inland regions for the foreign companies are lower than taxation rates in the big cities and coastal regions. This is to encourage foreign investments in the inland regions. Besides, the traffic policies that government imposes for importing goods are favorable and continue to get even better.
China has invested heavily in its physical infrastructure. This has made the country a great place to set up companies as transportation is great. For example, the road transport and ports are almost perfect here. This makes exporting and importing goods a very easy and convenient affair. Good road transport throughout the country also enables easy movement of raw materials to companies and finished products to consumers. Besides, services are easy to offer because service providers can easily move from one place to another through air, road, railways, and water. Also, other necessities like water, electricity, and technological advances are near perfect.
China is the country with the largest population in the world. The large population provides ready market for goods and services produced and imported to China. The country has also been expanding its market share by appealing to more and more trading partners. For example, Africa has become its new trading partner and it exports a lot of goods and services there. You are almost assured that your goods and services will have ready consumers.
China’s business regulations are policies are changing fast. Some sectors are not even regulated. Therefore, it is almost guaranteed that opportunities will always arise. For example, it is extremely easier to run a business within the health sectors and internet finance than it is in America and developed economies. Minimal regulations can enable you to experiment freely with ideas, thereby giving the flexibility to explore new opportunities. Because of the existence of unregulated sectors, now is the best time entrepreneurs can invest here.
China has many young professionals who are highly competent and talented. The country’s local universities and colleges are consistently producing skilled workforce in their millions every year. China has also made it very easy for the international graduates and skilled foreigners to come and work here. Also, bilingualism is significantly rising with many people in China now speaking English and mandarin. So, skilled employees are readily available to produce high quality products.
Facilitative entrepreneurial environment
Because of the favorable policies that government has in place, finding local business partners in China is very easy. This business environment is very facilitative and the young people are empowered. The resources for growth are also available in plenty for both urban and rural China. Additionally, Shanghai, Beijing, and Shenzhen cities have unmatched tech infrastructures, making it easy to manage businesses.