China’s focus on quality projects is expected to lead to more transparency and a reduction in the risks involved. Consultancies are, in this regard, well placed to conduct due diligence of opportunities to help their clients avoid “buying wrong” or “buying expensive” when making investments and well suited to help their clients navigate differing tax and regulatory requirements. The focus now is mostly on assessing each project on its individual merits, while being mindful of the goal of spreading prosperity and inclusiveness.
Laozhu, a well-known philosopher and poet of Ancient China, famously said that “a journey of a thousand miles begins with a single step.” I do hope that this book has provided you with sufficient information so that you now feel more ready to start planning your China market entry. Entering the Chinese market—as any other market—requires long-term planning and experience. Developing the right strategy according to the specific needs of your business will bring you closer to success and will save you a great deal of time and financial resources. Having a solid team on the ground, local advisors, as well as a solid network of local and foreign contacts will help you navigate China’s particularly chaotic business environment during pre-entry, execution, and growth of your business in China.
The Chinese market has often been described as a “dog fight” while many Western business people with long China experience go farther and define it as the world’s most competitive market. An additional challenge Western companies face in China is the full-throttle pace of change in the business environment. It is very likely that many Western companies will find most of their global rivals in China. Meanwhile, local competitors are leaping ahead in sophistication, quality, and speed. Several international companies often find themselves squeezed by domestic players adept at replicating their best product features while at the same time slashing prices. The key survival skills for China are flexibility, innovation, speed, a great marketing strategy, as well as careful and constant tracking of consumer preferences. Taking smart risks and adapting to the Chinese market and local business environment while seizing emerging opportunities as they arise is part of the China game.
Going Forward: Decision-Making Flowchart
EMC: Export Management Consultant
Note: In all the cases, creating an entity/holding company in Hong Kong may have some value and using online platforms as a sales channel may be a viable strategy.