Trade inside China on the Internet
I have access to China and its staff, having traded in China for over 20 years and running local and international businesses.
The topics below do not cover all aspects of trading inside China on the Chinese internet. They are subjects on which Access to China has working practical experience.
Our recommendation: There are many options available when trading inside China. Please make your goals clear before making the significant investment needed, e.g.
Running a business inside China vs remaining as a foreign business
Summary of ‘Starting trading in China’ articles
1. Routes to the Chinese markets
There are different trading methods for Chinese businesses (B2B) and Chinese consumers (B2C) within China and in your local market, either over the Internet or with visitors from China.
Before you start, look at your business and product/service branding in China. If your business branding is not registered in China, we recommend you correct this ASAP. Another Chinese or overseas company can undermine all your Chinese marketing by registering your business brand(s) in China and reproducing your products /services locally.
Before creating a Chinese company in mainland China, ensure you fully understand whether you need to do this.
Examples of why you might need a Chinese business:
- Production costs are cheaper in China
- Chinese government grants available
- Local Chinese investment available
- Local Chinese overseas branded services – e.g., coffee shop chain
- You wish to sell directly to businesses/consumers from within China
- Chinese government licensing is only available if you have a Chinese company, e.g., ICP certification
You do not need a Chinese business if you are selling into China from a business or e-commerce site outside mainland China, e.g., Hong Kong, the USA, the UK, etc.
3. Transfer money to and from China
Points covered;
Can Chinese citizens take / transfer money overseas?
Purchasing goods from China
Purchasing goods from overseas countries
Purchasing of service from China
Purchasing of services from overseas
Transferring monies
All countries have rules and regulations on which payment methods can be used and when. To that end, China has its own rules and regulations and will not allow a Chinese business to operate payment processes on non-Chinese approved systems. This applies to all Internet transactions processed on servers/clouds/data centres in China. All payments made in China must be to a Chinese bank account.
An overseas business needs access to some parts of these payment gateways to trade widely and successfully with Chinese people and businesses. “If you cannot take a payment, you cannot process an order.”
China has very successful payment processing systems and a gateway for day-to-day trading.
Face-to-face trading has been the traditional way of doing business in China for the last 50 years. Today, the internet is essential in identifying potential suppliers. The key issue is that few foreign websites can be found in China.
The standard process is to price the export to China as FOB (Freight on Board).
The shipping costs and management of imported goods in China are the responsibility of the Chinese business. This will include the shipping costs, import duties, shipping insurance, local Chinese transport costs, etc., and local certification (if required)
The Internet has allowed the development of the Business-to-consumer market in China.
Selling online on a Chinese-hosted internet site requires certification, only available to a Chinese business.
Any product sold on a Chinese internet site is subject to Chinese rules and regulations.
Products sold on internet sites outside China to a Chinese consumer are not subject to Chinese rules and regulations.
Products imported to China are subject to duty and taxes
B2C purchases from foreign internet sites are not subject to Chinese product certification rules (i.e. overseas cosmetic products sold directly to a consumer do not require Chinese product certification).
7. ICP Internet Contents Provider
The company is issued an ICP license and ICP certification for internet content, such as domain names, apps, IP addresses, etc.
What types of ICP certification you can request will depend on your Chinese company's ICP license.
The certification process is for public internet content only. If content is for a company’s internal use and not accessible to the public, then certification is not required. Suppose a domain name is used to access the company’s information online. In that case, the domain name may need ICP certification, even if it is only a login screen.
8. Shipping to the Chinese Consumer
Shipping goods to China is not as well established as shipping goods from China. The exception is the services offered by the Chinese e-Malls, i.e., TMall, Taobao, JDbuy, etc.
Once the goods arrive at the clearing centre in China, the consumer can track the shipment process on their mobile apps.
When purchasing international goods, the typical delivery time on the e-Mall sites is 15 days.
Access to China and its directors have worked and traded in China for over twenty years. We have manufactured, imported, and exported to China during this time. While Access to China mainly focuses on IT services, we still help Chinese source products and services from overseas companies.
There are many books and websites dedicated to the subject of successfully trading with/within China.
We wish to add a few pointers to trading with the Chinese markets.
last modified:v 2.1 - March 2025