Among the barriers companies face when doing business in China are import tariffs and quotas. To which the ignorance of the many opportunities presented by the Asian giant is added. So, what is China’s potential and what are the best techniques to overcome possible obstacles?
The Republic of China has become the world’s second largest economic power in recent years. The first in the entire Asian continent. And the largest industrial power also in terms of exports. Also quality production at low costs attenuates an already growing market.
Barriers to doing business in China
Despite the ease of the Asian giant to do business, it is worth noting some complex points to resolve for those who operate in that country that, although they have been improving in recent decades, are still present.
- It is necessary to know first-hand the tariffs, as well as which are the most suitable Incoterms to import.
- On the other hand, there are restrictions on investment in certain sectors.
- The effectiveness of intellectual property law is not always as indicated.
- Not knowing how delivery times and deadlines work. The way to negotiate. Or even the culture of talking points. Or the way of greeting, can also be an impediment to creating good and lasting relations with Chinese partners.
- To all this we must add the barriers in business in China derived from the Covid-19 pandemic. This country has a marked policy of containment, prevention, and control of Covid-19.
Tips, techniques, and strategies when trading in China
The Chinese authorities consider both companies and foreign investors to be the basis of Asian growth in terms of international trade. That is why they are increasingly taking measures aimed at the ease of transactions and negotiations.
- However, it is important for those who are going to do business in China, to avoid possible barriers, to know in detail what the Chinese market is like and how it operates.
- It is also recommended to enter the market through the cities with greater facilities such as: Guangzhou, Beijing, Shenzhen, Nanjing, Shanghai, Fuzhou, and Hangzhou.
- The role of the state cannot be overlooked. It is advisable to familiarize yourself with the political environment in which our Chinese partners operate to avoid suspicion.
- Regarding imports, it is essential to ensure that quality controls actually ensure that the goods arrive under the agreed conditions.
- Know the language, the main customs. Festivities, traditions, and even the right topics of conversation to avoid is another great way to progress in the Chinese market.
The existing barriers to doing business in China are surmountable if you have the right advice. And, knowing how to choose the right partner, means having a lot of cattle. At IBMH we are at your disposal to take care of the complete management of your imports of furniture and construction hardware from China. Our priority will be to grow your business. Contact us today!