Successful trading in China

 

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.

• Brand ownership – generally, there is little brand protection between China and the rest of the world;

i.e., your brand registered in the UK / EU / USA does not give protection in mainland China. Your brand can be registered in China by a Chinese or international company, which will remove all your trading rights to use your brand in China.

We recommend registering your band(s), trademarks and logos in mainland China. This will give you the power to develop your market in China without travelling to China.

• IPO—Intellectual Property rights—As with branding ownership, it is important to ensure your company's rights are protected. A protected IPO also provides additional benefits for new and leading ideas and technical developments. Organisations in Asia will fund part or all of the development costs.

• Research your products and band in China – Your research can start without travelling to China. Look for your products/bands on the Asia websites and search engines. You may find your Asia market has already been developed for you;

e.g., Baby food products in Tesco in the UK have been resold in China

• Central and regional government funding—The Chinese government has successfully grown Its GNP through investment in Chinese businesses and infrastructure. One key to this success is creating and publishing the five-year Chinese development plan.

If you plan to trade with China, start with a five-year review of the Chinese development plan.

Most large Chinese businesses are government-owned. Their achievement will measure the success of government companies against the five-plan. Each government company has to report to the regional and national governments on 1 October each year.

Many SMEs receive funding if they can demonstrate they can add to the progress of the five-year plan.

This often leads to new Chinese asking for JV with oversees companies to meet the goals of releasing government funding, e.g.

• Moving overseas manufacturing to China
• Having access to new technologies
• Creating local employment

While planning to trade with a new company in China, planning to raise government funding is not bad; you need to clearly understand where the funding comes from before your business makes any interest in time and money.

• Chinese contact—This is the hardest thing to do in any country. Who are you talking to, and what role are they working in?

Use the internet to find as much information as possible about their business.

Often, you will have multiple business cards with different company names and details. Check all the information and the relationship between the companies.

Knowing where the power base is in a meeting is very difficult. Usually, the person in the room with nothing to prove asks the fewest questions.

Please note that government staff can no longer receive expensive gifts or be taken for costly meals. We recommend keeping things simple and to the point.

Always walk away if it does not feel right. If necessary, they will come and find you.

Most importantly, ask for help from international trading organisations, references, etc.

Please see the “useful link” to help you find more information.

Last modified: September 2018