As the world’s second largest economy and a vital trading partner for many countries, China is an obvious choice for anyone looking to expand their business overseas.
China is already one of the world’s largest manufacturers; it is worth trillions of dollars. Manufacturing directly employs around 130 million people, and makes up almost half of the Chinese economy.
It is no secret that getting in early can be the difference between success and blending into the market. Hundreds of millions of people in China are moving into larger cities. The population is becoming increasingly urbanised, this can lead to many benefits such as previously untapped markets, and a larger customer base.
Online retail is growing at a higher rate than that of the US, however it is not close to reaching its saturation level.
An increasing amount of purchases are being made on mobile devices, and this will only rise in the future, as younger generations become more reliant on this technology.
China is also the largest car market in the world, with an expected 30 million domestic cars to be sold by 2020. Although the majority of cars sold are produced in China, the largest British exporter to China is Jaguar Land Rover. The dominance of this luxury brand reflects the growing middle class in China, and their increasing desire to buy more high-end products.
China is a vastly different country, not only in terms of the language but also the culture. Therefore, when considering doing business in China, it is vital to respect the local culture.
As opposed to the typical handshake, bowing and nodding are more common greetings. It is possible that a handshake may be offered, however you should wait for your host to initiate.
Arrive early to a meeting and at the start of any business dealings, be ready to exchange business cards.
With all of this in mind, doing business in China could be an incredibly worthwhile move for any business.
With its wide range of industries, growing market, and increasing spending power, China is a wise choice for anyone seeking expansion in business.
For more tips on doing business in China, view the infographic below.