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Q&A: Doing Business With China
Setting up in China
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Setting up in China

 

If you want to set up business in China there are challenges to understand which is the best structure to adopt. You must first establish your China Market Strategy and we can help you with this. An effective market entry strategy, utilizing the right market research, ensures optimal use of corporate resources.

 
 
The current options to consider when setting up in China are:

Before beginning, recognize that the following qualities are valued by the Chinese and therefore relevant to your Chinese business interactions today:

Entry Modes Pros Cons
Entry Modes
  • Low set up cost
  • Short set up period
  • Flexible exit
  • Full control
  • Restricted scope of business activities
  • More rigid labour regulations
  • Not tax efficient
  • Annual renewal
Joint Venture (JV)
  • Immediate access to local knowledge, network and talents
  • Able to leverage established domestic brands, marketing and distribution channels
  • Potential conflicts of interest with the Chinese partner
  • Risk in losing IP
  • Differences in management styles and company culture
Wholly Owned Foreign Enterprise (WOFE)
  • Full control over management and operation
  • More flexibility in company strategic issues
  • Easier to repatriate profits
  • Better protection of IPR
  • Higher registration capital required
  • Longer time to gain access to local knowledge, contacts and market